Situation Analysis

Situation Analysis |
BA 630 – MarketingWayne Neu, PhD |
Marco Rangel |

La Jolla Food Distributors
Situation Analysis
La Jolla Food Distributors is an existing food distribution companyoffering its products to Mexican fast-food restaurants in the Phoenix metropolitan area. The company was founded by the same people that own Filiberto’s restaurants in California and Arizona. Theirprimary products are Angus Beef and Flour tortillas. The beef is “Certified” Angus, which is preferred among restaurant owners for its tenderness and flavor. And the flour tortillas are specially made andare the perfect size for the famous Mexican burritos. There are two other companies in the area offering similar products. However, La Jolla Food Distributors has become the leading supplier mainly dueto its focus on freshness. According to Juan De Leon, President of La Jolla Food Distributors, the company specializes on providing “the freshest and finest quality food products available in theregion.”
The company has been able to establish exclusive agreements with two of the largest wholesalers of meat and tortilla in the West Coast allowing them to provide great pricing for theircustomers. La Jolla Food Distributors offers great prices and super-fast delivery times (guaranteeing freshness) in most cases same day thanks to such exclusivity agreements. Other competing companies have notbeen able to match La Jolla Food Distributors’ prices and the ones that could, simply cannot meet the demand for fresh products the way La Jolla Food Distributors has.
Market Summary
According toan article recently published by the National Association of Restaurants (NAR), in Arizona the Restaurant industry is the driving force in the state’s economy (National Restaurant Association, 2012).Furthermore, the market for high-quality, fresh Mexican food is headed towards a more discriminating customer. The consumer of today is much more demanding and is looking for a higher value for...