Brand Audit Executive Summary The Texas Pete hot sauce brand, part of an estimated $2 billion trade, has

been a strong challenger brand in the hot sauce industry for several decades, behind two industry leaders Tabasco and Franks Red Hot Sauce. Although Texas Pete Hot Sauce is the fastest growing hot sauce in the business, and well- recognized in the South, its necessary, more now than ever, to take this momentum and run with it. This brand audit recognized Texas Petes need to capitalize on this growth and start focusing on gaining more product trial and awareness across the entire country, and for Texas Pete to grab a hold of a higher market share through the recommendations suggested in this audit. Low brand recognition seems to be one of the major current dilemmas with the brand. By developing a more aggressive advertising campaign, Texas Pete can achieve higher brand awareness and start building the brand to entice more product trial among consumers, thus recognizing the distinct taste of the hot sauce, known for not overwhelming the food, but instead bringing out its flavor. Additional factors such as the logo and Texas Pete cowboy that the brand includes on its packaging and other materials should also be more recognizable to consumers across the country as a key element to the Texas Pete brand, opposed to consumers in separate regions. The hot sauce already has a cult-like following in the Southeast, and by strengthening the current brand attributes, as well as creating new, unique marketing tactics and strategies to bring these attributes to more people across the country, the brand will flourish even further. Recommendations in this audit will include several strategies to take the Texas Pete brand to the next level, perhaps putting the brand on the path to as much or surpassed success as its main competitors Tabasco and Franks Red Hot Sauce. Strategies that will increase brand awareness and trial, as well as expand the brands market throughout the U.S. as opposed to segmented regions will include most importantly, more advertising through several media outlets and the use of social media channels. Generating more publicity in both regions where Texas Pete is highly consumed or not, to ensure new and old consumers are exposed to the logo, slogan and brand as much as possible. The logo and slogan is already memorable, but increased exposure is essential. Lastly, the development and participation in promotions, events and other activities will be an effective way to reach more consumers and increase their responsiveness not only to Texas Pete hot sauce, but the entire line of Texas Pete products, as well.

BRAND AUDIT Introduction & Overview

Sauces, jams, jellies and chili are just some of the products Texas Pete has to offer. However, the company is mostly known for its hot sauce. The story of Texas Pete originally came from the Garner family, proud North Carolinians who managed a small barbeque joint. The family first produced a barbecue sauce, but the piquant flavor of the hot sauce recipe they developed was a hit. This year, the company is celebrating its 80th birthday, which impressively is still managed by the third and fourth generations of the Garner family. Also original to the hot sauces fabrication is the current factory that sits along the Garner family home site in Winston-Salem, NC, thats been added onto too many times. The Texas Pete company has remarkable history, and the hot sauce apparently remains a huge hit to its consumers. The bottle and logo are hard to forget, and the taste speaks for itself. (Texas Pete, 2010). Industry Analysis & Competing Brands Tabasco Mr. McIlhenny patented Tabasco sauce in the late 1870s. Over 140 years later, Tabasco Sauce is made similarly on Avery Island, Louisiana. Labeled in 22 languages and dialects, sold in over 160 countries and territories, it is the most famous, most preferred pepper sauce in the world (Tabasco, 2010). Additionally, in 2002, Tabasco was named the market share leader. Tabasco, in 2002, had 25.6 percent of the hot sauce market (Elliot, 2002). Franks Red Hot Sauce At the same time, Franks Red Hot Sauce is responsible for 16.1 percent of the same market. Franks Hot Sauce is currently known for wings, recipes, dips, etc. It was also became a booming business, actually giving long time-markets share leader, and Tabasco, a run for it money in this field (Elliot, 2002). Texas Pete has a great chance and perfect opportunity at the moment to stand up to these key players in the hot sauce industry. Tabasco and Franks Red Hot Sauce both have strong stories behind their brand, and so does Texas Pete. Texas Pete has been around just as long, and has its own unique, history, as well as taste and heat closely rivaling these leading brands. As Texas Pete tries to expand, and team up with Southern restaurants, military and other groups to buy the sauce in bulk, the brand should also be sending out messages to those outside of those demographics and psychographics. Executing the brand audit recommendations discussed later will surely guide the brand to the number one or two spots.

Brand Inventory and Exploratory

BRAND AUDIT Texas Pete Products

Original Hot Sauce $1.35

Hotter Hot Sauce $2.25

Buffalo Wing Sauce $2.24

Garlic Hot Sauce $1.69

Honey Mustard $1.70

Seafood Cocktail $1.70

Chili $0.70

Chili No Beans $1.30

Pepper Sauce $1.53

(Images retrieved from http://www.texaspete .com)

BRAND AUDIT Brand Elements and Brand Associations against Competitors

(1) (1) Nothing wakes up food like Texas Pete

(2)

(3)

(2) Good Taste Knows No Boundaries (Tabasco, 2010) (3) I put that **** on everything! (Franks Red Hot, 2010) Exploratory a. Consumer perceptions Texas Pete is the Boss of the red hot sauce, described by one Facebook fan. We eat it on everything, says another. It can also be used in recipes, as well as with food its even rumored to make MREs in the military easier to eat. People like the cowboy because you can envision anyone being the star of Texas Pete. People also associate the brand with sports, because of its marketing entrance into the SEC. Fans are very interactive and participate by uploading their own pictures to Facebook, showing their enthusiasm for and obsession with the brand. Fans seem very devoted and loyal (Texas Pete Fan Page, 2010). b. Brand elements and associations i. Internal evaluation Texas Pete refers to competitors as the other guy, because the company remains smaller due to the founders commitment to never take on debt. The company also lets their mash of peppers and salt, up to three years in vendors warehouses. They take out the seeds first, because it makes the sauce more orange and doesnt taste as well. Flavor is also its competitive advantage, because instead of mouth-scorching fire-in-your-mouth hot sauce, its a milder tang. Garner Foods even sells it in schools, and this along with its mild flavor is what the company thinks will bring it longevity. The product is tried in unexpected places because of the unique flavor. The sauce is also Kosher certified to sell more in Northeast and South Florida (Gray, 2004). ii. Consumer evaluation Texas Pete has a friendlier cowboy logo without a face, allowing him to be whoever you want him to be (Gigley, 2007). It is also positioned in more of a niche because of its dedication to heat that doesnt overwhelm the food. Competitor hot sauces (Tabasco and Franks Red Hot) rely on heat with fewer flavors. Texas Pete has a more unique, flavorful taste that you can use

BRAND AUDIT more of less of depending on your palette compared to Tabasco and Franks Red Hot. The company is a family run 80 year + business rivaling only Tabasco (Tabasco, 2010). People commonly put Texas Pete on their eggs, barbeque or chili (Louis, 2002). Marketing Support Programs a. Internal evaluation of tactical approaches Hired Van Winkle and Associates (2010) marketing and advertising firm for marketing support after the company realized it had low brand recognition. Together with Van Winkle and associates, they are working to reposition the brand as a regional favorite, along with the following: Conducted brand assessment & relevance studies, redefining target audience and repositioning brand Targeted active lifestyles, building on a correlation between consumer passions and Texas Pete brand Adapted core market strategies for new markets Extended limited marketing budgets through added value, product sampling and grassroots events (2010). The Texas Pete brand has also been working over the past few years to distribute the hot sauce across more regions, including New England, the West Coast, and along the East Coast. Texas Pete also dedicates heavier marketing in the Deep South. b. Consumer evaluation Many consumers participate with Texas Pete marketing efforts. The Facebook Fan Page alone, shares hundreds of pictures from different events and places where the Texas Pete bus makes its appearances. Lots of customers have also participated in the Where has your bottle been? campaign on Facebook (2010).

BRAND AUDIT

Trade Publications

Print advertisements

Outdoor Marketing

Promotional Items

Events (SEC & others)

(Images retrieved from Van Winkle and Associates, 2010) Competitive Environment a. Internal perspective According to Van Winkle and Associates, Texas Pete hot sauce has grown to 1st in the South and 3rd nationally, in part from its marketing efforts in the past few years (2010). Tabasco is first nationally in sales, and accounts for around 25 percent of all hot sauce sales nationally (Louis, 2002). b. Customer attitudes and perceptions Theres a lot of differentiation among hot sauces. Competition depends on the type of hot sauce one desires, whether its scorching or milder, like Texas Pete. There are also several private, small-company varieties to choose from that are offered at specialty stores and in specific regions. Its believed that many hot sauce enthusiasts stay loyal to one brand of hot sauce, whether or not they try several others for fun.

BRAND AUDIT

Perceptual Map

More Flavors

Texas Pete Franks Red Hot Hot Tabasco Fewer Flavors

Brand Hierarchy

Hotter

BRAND AUDIT (TW Garner Food Company, 2010). Recommendations Strategies Tactics Increased advertising as much as budget will allow to increase product awareness, through several media channels Increase social media tactics More targeted market positioning Get logo/slogan more apparent in grocery stores, food markets, etc. Increase publicity in regions with the least product awareness Develop promotions/events/activities

Television commercials on networks channels that appeal especially to men, as well as food channels, such as: Outdoor Network, Food Network, ESPN, TNT or TBS Television commercials during prime time on ABC, NBC, FOX or CBS; specifically during sporting events Create print ad for magazines such as Mens Health, Maxim and even unisex or predominately female magazines including Readers Digest, Good Housekeeping, etc. Implement social media promotions on Facebook, such as special deals, contest/prize promotions, even use Twitter to communicate these promotions and whats new and going on with the company Focus on finding more distributors and grocery/specialty foods stores to carry the product, while also using special kiosks and stands made out of the Texas Pete Cowboy that holds the product, highlighting the hot sauce in the store (away from where its usually found sold), and perhaps a Texas Pete tasting with other foods at stores that participate in these promotional tastings like Sams Club, Whole Foods, etc. Start sponsoring events, such as various sporting events (football, hockey, soccer, rugby, etc.) demolition derbies, rodeos, monster truck shows, and most importantly- concerts (think country music) from large scale coliseums and stadiums to small town venues across the U.S. Make sure to target these events as well as taste testing and other mentioned promotional events in both regions where Texas Pete is already established (to retain customers) and where Texas Pete is fairly new (to attract tasting and awareness to lead to potential customers)