Geographic segmentation of samsung

Growing Organically

Company Background

Annie Withey and Andrew Martin began the company with Annie’s Homegrown Shells and Cheddar in 1989

Created healthy, organic products that appealed to consumers desiring mainstream food items

This allowed Annie’s to grow by gaining share not only in the health foods market, but also in the traditional CPG market

Sales and profits continued to increase even with cheaper, established-brand competition

Investors are optimistic about Annie’s

Solera Capital purchased significant equity in 2001 & helped Annie’s grow

Annie’s is adamant about maintaining its culture as it expands

Committed to people, food, & the environment

All products non-GMO

“Social responsibility is part of the Annie’s brand DNA.” - John Foraker, CEO

Four Pillars of the Brand

Issues

Pursue which target market?

Pizza product strategy?

Price, Place, Promotion?

Market Segments

Frozen Pizza

Issues with frozen market:

Frozen foods perceived as less healthy

Consumers prefer desserts and snacks in frozen section

Limited frozen area for product

Annie’s Core Customers are not frozen foods shoppers

But selling this pizza product could drive them to frozen section

This would benefit both retailer partners and Annie’s

Product was successful in test-run in San Francisco Whole Foods

Choose Between:

“All-Organic” Product with 95% Organic Ingredients

“Made with Organic” Products with ≥70% Organic Ingredients

Frozen Pizza Industry

In Grocery segment:

Top 2 brands (Digiorno's and Private Label) own 34.3% of the market

In grocery stores, sales of frozen pizza declined by 4.6%

All top 10 brands experienced decline in sales except for private label

Private label is gaining more of the market

California Pizza Kitchen, Tony’s, and Freschetta ALL EXPERIENCED 20% DECLINE

Digiorno's is the only brand that experienced growth in sales

SWOT

Strengths

Popular brand

Loyal customer base

Existing market w/ children & Moms

Strong partnership w/ retailers (natural)

Grocery sales represent 94% sales

Large product portfolio (meals, snacks, dressings)

Investor support

Non-Gmo (local farms)

Weaknesses

New in frozen product development

Low advertising spending

Opportunities

Growth in organic market

Consumer increase demand for the frozen

section (desserts/snacks)

Popularity in premium brands