Methodology. We performed a customer survey of preferences which we statistically analyzed. The results of the survey are presented in detail in Appendix A; a conjoint analysis is attached as Appendix B. The survey helped us identify specific ways to modify our product, to price the product, and to position the product in terms of branding, unique features and differentiation. A plan for positioning the product’s gourmet brand image is included in this paper, followed by a strategy to distribute the product in the marketplace.

Situation Analysis and Market Demographics: The canned tuna market in the U.S. is approximately $1.2 billion and is generally segmented into two main categories: white meat, $488 million, and light meat, $634 million (See Appendix C for details about market share and the canned tuna industry). White meat is processed from albacore tuna and has a superior quality image and premium price because of its milder flavor, lighter color and firmer texture, when compared to light meat (which is processed from skipjack and yellow fin tuna).

Market Potential: The unbranded tuna market is highly fragmented. Nevertheless, market research indicates that the lower bound of the size of this market is 15% of $1.2 billion or $180 million -- for the United States only. The market size is expanding at a steady rate and can benefit from demographic trends such as a continually increasing population, greater desires for pre-prepared foods and a greater focus on healthy eating. Tuna is rich in Omega-3 oils, which have been scientifically shown to reduce heart disease and lower cholesterol. These oils also have antioxidant properties that could reduce the incidence of many other diseases (including cancer). Moreover, tuna is low in calories, which are primarily protein. Our canned varieties are low in fat and carbohydrates. Tuna is thus a very appealing and healthful alternative to other snack or lunch foods.

All of these factors militate in favor of market potential for our product (and also for salmon, which possesses similar properties). Crab, while a healthful food, does not contain Omega-3s.

Market Size and Growth: The approximate number of tuna eaters in the USA is 128 million; these people consume an average of 2 billion cans per year. (See Appendix F for a detailed breakeven analysis predicated on these conservative assumptions). This huge base of consumers makes <product brand name> a very attractive business proposition.

The US food industry, as intimated earlier, is characterized by relatively stable growth; this is projected based on modest price and population increases. Over the last ten years, the industry has experienced consolidations as competitors have (i) shed non-core business lines, (ii) made strategic acquisitions to complement category positions and (iii) maximized economies of scale in raw material sources and production and retail distribution. While growth in the non-gourmet tuna industry is stable, there is a tremendous opportunity for fast growth in the gourmet tuna food industry because of (i) the lack of products serving this market; and (ii) demographic trends toward the consumption of “gourmet” labeled foods.