Tabasco 7-Spice Chili Recipe: SWOT ANAYLSIS
TYRELL REIMAN, CARL GOODFELLOW
MARKETING 1030
APRIL 15, 2015
Ahmad Kareh
SWOT Analysis
Table of Contents
Introduction…………………………………………………………………………………………………………..
2
Strengths……………………………………………………………………………………………………………….
2
Weaknesses…………………………………………………………………………………………………………..
3
Opportunities…………………………………………………………………………………………………………
3
Threats…………………………………………………………………………………………………………………..
4
Conclusion……………………………………………………………………………………………………………..
4-5
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Introduction:
Tabasco is the lead producer of red pepper sauce. It has been a family owned company
for 5 generations since it started in 1865. It was founded by Edmund McIlhenny. The company
headquarters have been in Avery Island, Louisiana since the beginning. It is also where they
have made the sauce since the founding of the company. Today the company has 200
employees. They started introducing other sauces in 1973. All of their sauces are made from
the finest ingredients from around the world. The company also uses spices and herbs only
used by the company. Its sauces are sold in over 180 countries and territories. It is also labeled
in over 20 languages and dialects. It is even added to soldiers’ rations and put on restaurant
tables around the world.
Strengths:

30 percent market share.

Spices and herbs only used by them.

There are a lot of recipes that call for their sauces.

It is sold in most, if not all, grocery stores in the U.S.

Long shelf life for its sauces.
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Weaknesses:

Is only produced at one location.

Not diversified in products offered.

Known for being hot and spicy which limits people’s willingness to try unless they like
hot and spicy.

Family owned which means they do not have the capital that other companies have.
Opportunities:

Expand into emerging markets.

Introduce new sauces.

Advertise towards people who like hot and spicy foods.

The 7-spice chili sauce can be expanded into other flavors.

Using social media to get consumers involved in flavor choices.

Hot sauce use peaks for men and women at ages 45-54 but most brand preference is
formed in earlier years.
 37% of hot sauce users discovered there favorite brand of hot sauce at the home during
childhood.
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Threats:

Natural disasters effecting headquarters like flooding and hurricanes.

Expanding hot sauce market.

Limited consumer base puts a limit on its sales.
 Competitors entering the market and taking some of their market share.
Conclusion:
After analyzing Tabasco we have come to a conclusion on what they need to do in the
next six months to a year to maintain the market share that they have. Tabasco needs to start a
campaign using social media to get its target market engaged with them more, needs to expand
their product line into other areas, and continue to make more sauces.
If Tabasco can get consumers to engage with the process of deciding new flavors of
sauces with new sauce lines as well as expanding the 7-spice chili sauce line. This will give
Tabasco tons of press and more public awareness. They will need to start a Facebook page for
the new sauce so they can keep consumers up to date on what’s going on and have consumers
comment their ideas. They can even have a contest for consumers to submit a 30-second
commercial add and have them vote on the one they like the most then have it play during a
special sport event. If they do this right it would be a big benefit for Tabasco.
Tabasco needs to expand its product line from just sauces into more areas. This leaves
Tabasco very vulnerable because they are a hot sauce company. If they can form partnerships
with makers of mustard, ketchup, or make their own. They could also try to get Frito Lay to
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make a chip that is Tabasco flavored. They are always coming up with new chip flavors. If they
do any of these they need to use social media to promote the new products and get the
consumers engaged with them. This would give them more diversification of products.
Even though Tabasco has a lot of sauces already they need to continue to grow with
consumer taste with hot sauces. They can make more lines of hot sauce and even expand on
lines they already have. One example would be the 7-spice chili sauce. They could expand this
line into different flavors that they already have or even create completely new flavors to go
with it. They can use social media to get consumer ideas on new flavors and which flavors they
would like to see it combined with. This will get consumers talking about Tabasco more and
people wanting to find out what new flavors come out.
If Tabasco follows these recommendations they will continue to grow and be on the top.
They will need to start a campaign using social media, expand their product line, and continue
to make new sauces. It will continue to thrive if these are fallowed through by Tabasco.
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