Ch. 12 Links in the Chain: Retailer to Consumer

The organics industry has brought great opportunity to food retailers as well as suppliers and finding a place compatible with the products being sold is a crucial part of the retailing mix. All natural products are filling grocery stores at an increasing rate and consumers are purchasing more and more of these products with the intent to protect themselves and their families from harmful pesticides and artificial ingredients.

Specialized health food stores and markets are no longer the only retailers taking advantage of this growing awareness. Now, supermarket chains and convenience stores (including college campus stores where they are in high demand) have jumped on the organic hay ride and are being rewarded by rising sales that are even leaving some conventional products in the dust. Many ingredients, and therefore brand products, are offering an organic format to their existing product lines.

Integrating organics into mainstream supermarkets has posed a bit of a challenge though. The question is whether or not they should have their own section or fixture within a store or whether they should be dispersed throughout the store with their conventional counterparts. Commonly, brands that sell primarily organic, like Amy’s Kitchen, will be placed in an organic section or in worst case (I’ve seen it before) stuck in the far corners of the frozen food isle with very little visibility. Andy Berliner, founder and president of Amy's Kitchen said in an article by Richard Turcsik of the Progressive Grocer, "We've come to the conclusion that if the store does a really nice job with fixtures and staffing and having it in a section of the store with a lot of foot traffic, then the store-within-a-store concept can work," and added, "But a lot of people don't do it that way, they kind of stick it in a corner and say, 'This is the natural food corner.' There's not much signage, and that doesn't work. It's kind of like a dust collector."

Now that many conventional brands are adding organic to their product mix they can be found collectively within the family of products. For example, Silk has original and organic soy milk and they can be found on the same shelf. Berliner, mentions the use of banners, awnings and self danglers to draw attention to these products in an integrated setting. This is a form of advertising that proves to be very affective in a retail setting. Amy’s soups are placed on the same shelves as such popular soup brands like Campbell’s and Progresso and they often use such forms of advertising to distinguish themselves from the rest. Amy’s is presently the #1 organic brand soup.

Both, the “store within a store” concept and full integration can be equally as successful if executed well. This entails actively conducting in-store consumer research and excellent management activities. As a customer who frequents the organic food section I know that they can certainly have their own charm but I feel strongly that in order to penetrate the entire market the organics must put on their best suits and venture into the big picture. There are the consumers that know before they set foot in the store that they are going to buy organic and then there are the majority who aren’t exactly sure what organic is or means for them and their family. These are the people that companies need to fight hard for, educate and develop strong relationships with. These people and their children will decide the future of the organic expansion and the companies who put organic on the front burner.

Ch. 12: Marketing Channels and Supply Chain Management

Meet Tom Mello, Manager of Organic Agriculture at Amy’s Kitchen! Tom works with growers and processors to ensure the quality of all the agriculture products needed to make Amy’s foods.


It all starts with fresh, organic ingredients at Amy’s Kitchen and organic sourcing is of top priority to them. Generally the organic supply chain is not a difficult road but it does require diligence on the part of the purchasing professionals and research and development departments. This is because they have to ensure that outside suppliers comply with organic regulations. For an ingredient to be deemed certified organic they have to meet very specific criteria that have been fine tuned over time. With the increasing popularity of organic foods many companies are adding organic to their product mix, increasing volume and strengthening the organic food supply chain.

In order to insure that regulations are being honored, strong relationships between suppliers and purchasers are necessary. Amy’s Kitchen takes pride in knowing most of the farmers, (many being family farms) that grow their ingredients, by name and have developed long and trusting relationships with them. Some of their growers have been with them since the start of their business. Over 50% of the vegetables are grown within 200 miles of Amy’s headquarters.

In this field of production, scheduling is less about meeting inventory demands, and more about meeting the demands of “mother nature”. Amy’s uses produce managers and tirelessly dedicates time to assure that harvesting is done according to the natural rhythm of nature. This brings about the best corn, broccoli and onions for the best pot pies, enchiladas, and veggie loaf. For example, broccoli has only a 2-day window during each harvest that it is at its peak flavor and quality. Harvesting organic broccoli within this strict timeline is one of the strategic moves taken very seriously by farmers and Amy’s Kitchen.

Rachel Berliner, founder of Amy’s Kitchen compares the distribution of their products with throwing a dinner party and though she can’t make a place setting for every Amy’s customer they do set the standards high. They have developed a reputation for having very rigid standards within the farming community. Amy’s has maintained solid relationships within the supply chain in order to consistently serve up the best that nature has to offer.

Ch. 10: Rate of Adoption

Amy’s products have grown popular greatly in part from word-of-mouth communication. Amy’s products feed a niche market, literally, and because of this compatibility they have been eagerly adopted. Though sales didn’t skyrocket from the start, despite discouraging impute from others, the Berliners continued to introduce new products. Consumers eventually caught on and have past on their experiences. Vegetarians, as well as people with special dietary needs, have always had a challenge finding a variety of prepared foods. Amy’s has given these people a convenience that they never had before with a selection large enough that it never gets boring. Because of this Amy’s is now the leading vegetarian, organic frozen food company. Below is a fan letter written to Amy’s that pretty much sums up why Amy’s has become so successful.

Dear Amy,
I have never written a fan letter to a company, but this one is warranted. Since discovering Amy's a number of years ago, our family of five has been gradually increasing our consumption and reliance on your meals. We bring it to work for lunch, it is a great dinner when I am too busy to cook, and we call it our "Amy's Diet" when we have put on a few pounds and need to cut back for a few days. My kids come home and say,"did you make dinner, or is it an Amy's night?" When I go to the supermarket, people in line tease me about all the different Amy's meals I have in my cart, and I tell them how wonderful a product it is, how healthy, delicious, and portion controlled. My son is in college and has an apartment there, and instead of having a full meal plan he opts for one meal at the cafeteria, and supplements with a lot of Amy's meals. I am a psychotherapist specializing in Eating Disorders, and recommend Amy's to many of my patients as good, delicious food that is convenient and quick, and low in calories. In fact, my husband and I recently had a trip to Hawaii, where we stayed in a timeshare with a microwave, and found Amy's at the grocery. We ate your food for breakfast and lunch, and then went out for dinner resulting not only in money saved, but not gaining weight on this vacation! Can you
tell how excited and passionate we are about your product? Thank you guys for a job well done, and products that enhance this family's life immeasurably. I don't know what we would do without you.
Sincerely,
Emily B

Ch. 10: Developing and Managing Products

When Amy’s started out 1987, selling frozen vegetarian potpies, the mass market wasn't quite ready for their products. The few frozen vegetarian products that existed where assumed by most to be similar in taste to cardboard and very often they were right. In the mid-'90s, as people were becoming more educated about nutrition, the organic food market suddenly began to take off. Amy’s sales had been growing steadily, about 20 percent per year, but in 1997, their sales grew 80 percent. They are definitely still in their growth stage and regularly introducing new products as they continue to cruise the upward sloping product life cycle curve. A complete list of Amy’s Kitchen’s products can be found here: http://www.amyskitchen.com/products/index.php

Ch. 16: Coupons and Contests

Amy’s offers coupons as a purchase incentive for potential buyers and as a gift for loyal fans who write to Amy’s to express their love for their products. Coupons are also used as prizes in promotional contests. Most recently they are offering $500 in Amy’s products for whoever can come up with an official Amy’s slogan (mentioned in an earlier post), which will most likely be in the form of coupons. If you write to Amy’s, pledge your love for their products and ask for coupons, they will most likely send you a few. Their coupons aren’t found regularly in supermarket fliers, though. Let’s just say, I’ve been looking and haven’t found one coupon at my disposal as of yet. It’s probably time I wrote in! Here is an image of one I saw someone selling on ebay (weird).

Ch. 16: Sales Promotion and Personal Selling

As I’ve mentioned in my previous posts where I discussed advertising and public relations, Amy’s Kitchen doesn’t involve itself in advertising. They don’t pay for ad space or commercials. They do however have a loyal customer following that has strengthened over Amy’s life span. Amy’s repeat customers make up the greater portion of their business and they do much of the product promotion for them. Numerous bloggers follow Amy’s activities and regularly share their stories and passion for Amy’s company. Amy’s is frequently referenced in blog posts or websites that are directed to people who are living with diets restrictions, for example http://theglutenfreefoodblog.blogspot.com/2009/06/amys-kitchen-gluten-free-meal-plan.html. Amy’s reach is far via the thousands of health related channels that are identifying consumers with their special diet products. They are also recognized in the sustainability awareness community for their environmentally friendly business practices. Sustainlane.com shows Amy’s product ratings and Food, Nutrition & Science: From the Lempert Report, acknowledges Amy’s in their sustainability series with and in-depth overview of their business practices. It can be found here: http://www.foodnutritionscience.com/index.cfm/do/monsanto.article/articleId/327.cfm Customers write in, email, and post letters raving about their favorite products. Vegetarians, the health conscious, and diet restricted all exist within a tight knit community that bases many food choices on personal research and experience and the communication that takes place via the web and word of mouth.

Tina Fey is CRAZY for Amy's Burritos!!!

*SATURDAY NIGHT LIVE with Tina Fey*

Ch. 15: WIN $500 IN AMY’S PRODUCTS!!!

“Healthy Eating for Busy People” sums up the motivation behind Amy’s Kitchen. Though, they have just celebrated 22 years strong and are searching for a catchier tagline. They are now promoting on their website (and inadvertently through numerous bloggers) a 15 words or less slogan contest. They are searching for a phrase, word, jingle, or rhyme that encompasses “what Amy’s Kitchen means to you”. You have until February 1st, 2010 to enter. Here’s a link to the entry form and contest rules: http://www.amys.com/contest.php.

Amy’s website (http://www.amys.com/index.php) is a great venue for marketing their company. It updates all new products and events, including every new (and old) publication they were featured in. It features letters written by Amy’s fans and a form to subscribe to their newsletter. They also offer an abundance of health information including their own diet plan that includes a shopping list and daily planner. Amy’s Kitchen has thousands of newsletter subscribers and numerous blogs posted about them regularly.

Amy’s is “the leading organic frozen food company” and yet they still don’t have an official slogan?! This amazes me, even as a longtime vegetarian and huge Amy’s fan. How does a company become so successful when they don’t engage in advertising, even with all of their PR effort. I definitely feel that at this point in their development stage, advertising could be an effective tool for them. Consumers are ready for these types of products. Amy’s should make the effort to familiarize more of the population with their company and the benefits that their products can offer them. Their huge following does say a lot about the quality of their products and the loyalty of their customers, so they must be doing something right. Maybe it’s just the nature of this niche market. They’ve developed intimate relationships with customers that are more comfortable with the trial and error mentality (since the vegetarian market is still fairly young) and are eager to find products that suit their lifestyle. Their even letting their customers do their advertising for them.

Ch. 15: Advertising and Public Relations

October 16-18 of 2008 Amy’s Kitchen debuted a new product category at the Natural Products Expo East Show in Boston. There they featured their new organic vegan Cakes including Amy’s Orange Cake and Chocolate Cake which are both organic, vegan and delicious! In February of 2009 these cakes were featured in VegNews magazine in a short article encouraging consumers to ring in the New Year with healthy eating habits. Amy’s organic canned beans where featured in The Nibble, July 13, 2009 as a note to “Franks and Beans Day”. September 2, 2009, Self Magazine printed an article, “The whole enchilada: An authentic Mexican meal in your freezer” promoting their new Enchilada Verde whole meal. The same magazine previously awarded them the Lifetime Achievement Award, in their Healthy Food Awards category, for being "body-friendly fast food." These are just a few of the public relations activities that Amy’s Kitchen has been engaged in and encompasses their executional marketing style.

Amy’s Kitchen’s marketers aren’t buying time slots on cable television or ad space in health magazines or on bus stop billboards. Believe it or not, they don’t really advertise but they DO promote their products, and the company as a whole, in the form of public relations (PR). PR is their main marketing tool, with the exception of coupons which in my experience are few and far between. Amy’s reaches a niche (vegans, vegetarians, the diet restricted, health conscious, etc.) that has allowed Amy’s success to grow by word of mouth and by simply being an option among few others. When Amy’s started up about 22 years ago they were catering to a small niche with the primary retailer being health food markets. As a long-time vegetarian I remember as a child (15-20 yrs. ago) my mom preparing the majority of our meals at home, from scratch. Any prepared vegetarian foods (frozen or otherwise) would be found, primarily, in a health food market. There was really no need for advertising because the target market was already at the market, so to speak.

Though, consumer habits have changed significantly since then and people, not just vegetarians, are growing more and more health and eco-conscious. Amy’s does certainly have a reputation birthed from the experience of eager vegetarians, yet they are also engaging in PR with moderate frequency. Amy’s does this by sending out press releases for new products and events they will be involved in. They have been featured by numerous health magazines yet they are also of interest in the business world having been featured in Fortune Small Business where they discuss how they built a leading frozen food brand. The Press Democrat reported them for their environmentally friendly business practices. PR is a powerful marketing activity and has been the road Amy’s has taken into the greater population via popular national magazines and newspapers.

Ch. 17

As more frozen dinners “go natural”, prices will naturally adjust in the face of competition. Though the availability of alternatives has great influence on prices, so does the distribution strategy. Consumers will often pay higher prices for convenience and accessibility. Amy’s Kitchen has a huge distribution network from super centers like Wal-mart to college campus convenience stores (where they are in great demand).

Consumers may also be more apt to accept higher prices when they are amongst other similar prices, like in a high priced market or when sharing a shelf next to an expensive line of products. Shoppers may be more prone to spending a few extra cents or even dollars on a product after investing 20 minutes in an expensive market than they would if they were to assess a product individually.

Manufacturers have lost much control within the distribution channels, however, giving wholesalers and retailers the power to adjust prices to suit the purpose of the retail outlet. For example, they may raise prices of brand names in order to increase the sales of their store brand products. This can be avoided, in part, by sticking with one distribution system, avoiding “price-cutting discounters” or even printing the price on the package (which may not be an acceptable image).

Product loyalty is by far the most powerful piece of the pricing puzzle. When customers are loyal demand becomes more inelastic. Even a moderate increase in price will not deter a loyal customer (at least in the short run) as long as they remain completely satisfied with the product or service that they are purchasing.

Ch 17: Pricing Concepts

Organic food products, like Amy’s Kitchen, have traditionally been in a high cost category both for the producer, the consumer and everyone in between. This is because up until the last 5 years or so these types of products were still in their introductory stage as they were just beginning to be introduced to a competitive market. Ten years ago vegetarians and other health conscious consumers had to pay top dollar for high quality, organic food items because low demand resulted in low supply and demand was fairly inelastic. In that market where alternatives were scarce, prices could skyrocket and people had only two options, pay the high price for that type of product (ie. organic multi-grain snack bars) or don’t buy them at all. Health is not just for the hippies which was once the “bean sprouts and granola” stereotype. Consumers growing awareness of the harmful impact of pesticides and preservatives has lead organic food products into a growth stage, giving products more elastic demand, allowing for more competitive prices. Growing demand is causing more suppliers (manufacturers, farmers, producers of ingredients) to enter the field increasing opportunities for brands and the procurement of resources, finally driving down prices. Amy’s products, which have been around for about 22 years, are now facing competition though they are still the nation’s leading organic frozen food supplier.

Ch. 13: BugStores.com

The concept of a retail store has grown over the past decade because of the ever expanding internet. Before internet retailers or e-tailers, retailing was mostly limited to physical stores. Non-physical retailers for consumer purchasing did exist however and included catalog and mail order, home shopping networks and telemarketing.

As the internet has become more popular traditional retailers are adding online retail stores where their customers often have more access to a range of products that can’t be stocked in the physical store. Many e-tail stores are being erected with no physical location at all. This is giving people more power as consumers, allowing them absolute control of when they shop and the ability to evaluate competitor offerings with the touch of a button.

The expansion into e-tailing has also given marketers more opportunity to reach their target market. The internet is a powerful tool allowing retailers to track their customers browsing behaviors and preferences giving them the upper hand. The information retailers gather about their customers can be used to create a marketing plan that is individualized.

I recently visited an online retail store in search of a groomsman gift for a good friend of mine. I googled “cigar torch lighter” for lighters to give the groomsmen to accompany their traditional groomsmen cigars. The first e-tail store on the list was BugStores.com. I’ve never shopped for a cigar lighter before so I didn’t know quite what I was looking for, besides that it should be a cigar torch lighter by the suggestion of a friend. When I clicked on BugStores.com I was routed to the homepage of the website, where similar to a store front, I could see a sneak preview of what they have to offer. Unlike a physical storefront, though, the homepage offers much more information giving customers full control of their shopping experience. BugStores.com has an attractive layout filled with professional photographs of their products. They also have all of their products categorized and to my surprise they had a category labeled Groomsmen Gifts! Under the Groomsmen Gifts category is a page that displays a generous array of products including cigar cutter lighters, tobacco pipes and cigarette cases. At the top of the page is “product sorting options” that allow you to narrow your search by price, popularity and rating, a clever feature that again empowers the customer and individualizes the shopper experience. The website includes detailed product information including a FAQ page where commonly asked questions can be answered like, “How do I refill my butane lighter?” Customers can comment on products and the loyal customer can even follow them on Twitter. You name it, they’ve thought of it. I ended up tossing a Monarch Z DualTorch into my virtual shopping cart and headed to checkout. The Monarch Z DualTorch can be found here: http://www.bugstores.com/shop/lighters.php?product=BS0M30

I’m like so many busy, busy Americans these days that have to carefully ration their time. Online shopping allows consumers to spend less time on the “in between”, cutting out valuable time that could be spent on more important things. Some could say that browsing through an e-store is in many ways far superior to browsing in a traditional retail store. I wouldn’t go so far to say that I’d take an e-tail store over a tradition retail store any day, but I’d be lying if I didn’t say, most days.

Ch. 13 Retailing

As Amy’s Kitchen’s allotted shelf space has grown in grocery stores due to its expanding product line, so have the number and type of retailers it distributes to. Amy’s products started out in health food stores, 20 or so years ago, because for many vegetarians that was their primary grocery source, at least for the modern vegetarian seeking a variety of food options. As consumers food preferences are ever developing, food retailers are all catching on to the demand for Amy’s (and the like) health food products.

Food retailers usually known as grocery stores are expanding in and of themselves. You can now categorize some stores as retailers that sell food. Supercenters like Target and Wal-mart for example offer a full-circle shopping experience. One trip to Target and you’ve checked off your grocery list as well as purchased bathroom products, intimates, lawn furniture and camping equipment. Warehouse membership clubs like Sam’s Club and Costo have also earned a huge place in food retailing operations. Amy's has jumped on the wagon and can be found at Whole Foods, Costco, Fred Meyer, Wal-Mart, Target, Giant, Shopper's Food Warehouse, Albertson's and many others.

Another growing avenue for retailers is e-tailing or online retailing. Established retailers
are broadening their reach by adding e-commerce to the mix. Online sales account for approximately 8% of total retail sales. Some retailers are strictly e-tailers with no physical store and are experiencing great success due to the internets great presence in our society. Amy’s Kitchen offered online purchasing for a period but isn’t “temporarily” for reasons unknown to customers. They are however redirecting customers to online retailers that are offering Amy’s products such as Fresh Direct and Netgrocer.com. For a full list of e-tailers offering Amy’s:http://www.amys.com/buy/buy_online.php

Ch. 9: Product Concepts

Amy’s Kitchen embraces package labeling as a key marketing tool. As a health conscious vegetarian with a sensitivity to dairy, I’m very familiar with labeling. I’ve probably spent a few hours to date reading food labels for offensive ingredients. It’s truly a continuous learning experience for me and the millions of other ingredient sensitive consumers.

As people become more and more aware of the effects of the added ingredients in our foods, product labels are read more frequently. As people make their way through supermarkets (especially those with food allergies, dietary restrictions and the ingredient sensitive) they are dedicating more of their time to reading informational labeling. Amy’s has become a great product for the thousands of people that suffer with food allergies. For some, finding any food that is prepared is next to impossible. Amy’s has dedicated much of its product line to foods that are free of specific ingredients, broadening its reach in the industry. A full view of their product mix can be found here: http://www.amyskitchen.com/products/search.php. Common claims that can be found on Amy’s labels include, “Gluten Free”, “Dairy Free”, “Lactose Free” and “Vegan”, among others. A full list can be found here: http://www.amyskitchen.com/special_diets/index.php. When a vegan sees a frozen dinner that has “Vegan” printed on the box they can let down their guard, consider it an option and then begin the process of analyzing the persuasive labeling.

People who are less concerned with ingredients probably don’t often venture past the persuasive labeling (ie. eye catching or familiar logos, and claims such as “Fresh” or “New Creamier Filling!”). Persuasive labeling is all about creating an image and relaying an idea or concept that will represent fulfillment of some desire or need. We want to be comforted by the familiarity of brands and we want to know that a product is good for our family’s well being and budget. In simplest terms, the ultimate goal of persuasive product labeling is to create a clear distinction between how the consumer feels and how the product will make them feel significantly better.

Whether a consumer has specific dietary needs or preferences or they simply want to be comforted, entertained or satisfied, product labeling is the final stand off between product and consumer. Persuasive and informational labeling must be presented in such a way that it creates a positive first impression because that’s all the time people allot per product during a single trip to the supermarket.

Ch. 9: Kosher

In November of 2003, Amy’s Kitchen became certified from Rabbi Dov Hazdan of Ner Tamid K in Staten Island, NY. All of Amy’s products are certified either Kosher Dairy or Kosher Parve except for the Low Sodium Marinara and Amy’s Light in Sodium Vegetable Lasagna. These two items are not certified because they contain non-kosher red wine vinegar. This product line extension has extended their reach to thousands of consumers. By doing this they have become one of the few frozen food lines to offer kosher products. This product differentiation has given them the competitive advantage in a significant market. However, this development was slowly introduced to the market because of a delay in updated packaging. As of 2004 many products still didn’t display the appropriate Kosher symbol. Most Orthodox Jews were completely unaware of the availability of kosher Amy’s products because there was no way of knowing. Slowly the product labeling caught up with their new standards and so did market development. K D (D for dairy) or K Pareve is found printed on their packaging. Here, K Pareve can be seen in the bottom right corner.

Sustainable North Bay Award

On April 30th 2009, Jared Huffman, an assemblyman in Petaluma, California, presented the Sustainable North Bay Award to Amy’s Kitchen. Huffman awards one business every month to highlight their environmentally friendly business practices. In order to receive this award a business must execute exceptional sustainability practices in production. Among the terms mentioned were (1) the use of organic ingredients (without pesticides), (2) dairy products free of artificial growth hormones, and (3) products free of genetically modified organisms or hydrogenated fats or oils. This is a great feat for a company that is considered to be largest North American provider of frozen organic food. Amy’s has had to invest much care in the production of resources and product quality-testing to deliver such a commitment to sustainability. It’s exceptional for a company of this size (approx. 2700 employees) to meet such standards, hence the award. This type of public recognition holds strong Amy’s place in the spotlight.

Meet the Berlingers (the owners and founders of Amy’s Kitchen) as they talk about organic production:

Chapter 7: Segmenting and Targeting Markets

Amy’s Kitchen Mac n’ Cheese Kids Meal



Price: $4.29
Serving: 1 tray, 8oz. Calories: 370 per serving
Fat: 20%, 13g
Saturated Fat: 35%, 7g
Trans Fat: 0g
Cholesterol: 12%, 35mg Sodium: 26%, 620mg
Protein: 14g Carbohydrates: 17%, 50g
Fiber: 12%, 3g Sugar: 8g
Weight Watchers Points: 8 Points

The nutrition facts above are what appear on Amy’s Kitchen’s popular Mac n’ cheese kids meal. Within the market for easy to prepare, vegetarian health foods is easy to prepare, vegetarian health foods for kids. The health conscious parents of today are demanding healthy foods that appeal to their children. Amy’s has based their success partly on the strength of their market segment. The demand for easily accessible health food is ever so present. We are learning more and more that tremendous threats to our health can be avoided with diet and exercise. Even adults who cut corners with their own health are less likely to do it with their children. Amy’s has been able the further segment their target market by appealing to the basic needs and wants of children, nutritious food that tastes good. Considering that Amy’s market includes busy people that value the importance of a healthy home cooked meal, the “kid’s meals” are a natural step in Amy’s progression.

Ch. 6

Amy’s Quarter Pound Veggie Burger has been added to their food service, distributing to such institutions as hospitals.



Amy’s Quarter Pound Veggie Burger combines fresh organic grains and vegetables with protein rich soy beans and a hint of barbeque sauce to create a firm, great tasting burger that’s perfect for barbecuing or grilling.
❧ Made with Organic Ingredients
❧ Full 1/4 pound patty
❧ No dehydrated ingredients, preservatives or added coloring agents

Serving Suggestions: This burger is great when served on a bun with “the works” but it can also be used as an ingredient in many dishes. It is an ideal filler for Veggie Tacos or Veggie Burritos. Add it to a pasta dish such as Baked Rigatoni with Marinara. Serve it on a plate with Mashed Potatoes and Gravy. It also makes a perfect Veggie Patty Melt when served open face on whole grain bread.

INGREDIENTS (VEGAN): ORGANIC ONIONS, ORGANIC
MUSHROOMS, FILTERED WATER, WHEAT GLUTEN, TEXTURED
SOY PROTEIN CONCENTRATE, ORGANIC BULGUR WHEAT,
ORGANIC TOMATO PUREE, ORGANIC CELERY, ORGANIC
CARROTS, ORGANIC OATS, ORGANIC WALNUTS, ORGANIC
EVAPORATED CANE JUICE, ORGANIC GREEN BELL PEPPERS,
SEA SALT, EXPELLER PRESSED HIGH OLEIC SAFFLOWER OIL,
SPICES, ORGANIC POTATOES, ORGANIC SWEET RICE FLOUR,
ORGANIC GARLIC, ORGANIC APPLE CIDER VINEGAR, ORGANIC
BLACKSTRAP MOLASSES, GRAIN VINEGAR, MUSTARD SEEDS,
NATURAL HICKORY SMOKE FLAVOR. CONTAINS WHEAT, SOY
AND TREE NUTS.

NO TRANS FAT • NO ADDED MSG • NO PRESERVATIVES
Individuals with Food Allergies: This product is made in a facility
that produces foods containing milk, tree nuts and seeds.
Amy’s Kitchen does not use any peanuts, fish, shellfish or eggs.
No GMOs - No Bioengineered Ingredients

Serving Size: 1 Burger (113g)
Calories: 220
Calories From Fat: 50
Total Fat: 5g
Saturated Fat: 0.5g
Trans Fat: 0g
Cholesterol: 0mg
Sodium: 640mg
Carbohydrates: 25g
Fiber: 6g
Sugars: 5g
Protein: 21g

Ch. 6: Business Marketing

Amy’s business customers have evolved past the traditional reseller. Their business has expanded into schools, college campuses, concert venues, hospitals and the military (30 products are available for sale in military commissaries).

These new found business relationships began, partly, by the great demand of Amy’s customers. For example students from Duke University, Brigham Young University, University of Pennsylvania, Rutgers University, and University of California at Berkeley, have adopted healthier eating habits and are demanding healthier choices in their dining halls. Amy’s products are making it into universities because students are actually asking for it via in-school requests and emails to Amy’s company. To request Amy’s products students can contact: craigforrest@amyskitchen.net, and provide the necessary contact for their school. Student’s who do this also receive an Amy’s gift package!

Amy’s also has a national food service bringing food to such venues as hospitals. Again Amy’s can be brought to various locations by making a request to their National Foodservice Manager. Amy’s has recently added their Quarter Pound Veggie Burger to their food service. Once again, Amy’s (as the unique distributor of easy to prepare, organic, health food) has the competitive advantage in building business relationships with institutions.

“The Persuaders”

Political consultant Frank Luntz believes that people identify with and like to hear certain words when being advertised to. He believes that reaching your target market is more about the words and phrases used that create the desired connection with the customer than it is about what the company would like to say. In other words people want to hear what they want to hear, whatever words that make them feel the way they want to feel.

In the case of Amy’s Kitchen’s customers, they want to know that the food they are buying is healthy. There are many key words and ways of arranging words that stand out when marketing to the health conscious. For one, “NO” almost always means that the product is without something bad. Examples would be “NO Artificial Ingredients”, “NO Trans Fats”, or “NO GMO’s”. Some of Amy’s frozen dinner labels read, “NO Dairy” or “NO Gluten” which are ingredients that would only concern someone with an allergy or sensitivity or a vegan, others may not even know what gluten is. Health conscious customers, like Amy’s, are most likely drawn to many products labeled with the word “NO” when shopping for other goods such as detergent, where you may read, “NO Dyes or Perfumes”. Another popular word that reads as the elimination of something bad is “FREE”, “FREE of Harsh Chemicals” for example.

As consumers are exposed to the same phrases again and again they begin to take on an entire concept or belief. If a frequent purchaser of products that are targeted toward healthy eaters or the environmentally aware you may become accustomed to seeing “NO” and when you see “NO” while scanning potential purchases you would be conditioned to assume that this product or service is potentially better than another because it is definitely without something bad or without something that will harm you. Through certain common uses of words or phrases we are conditioned to associate particular feelings or beliefs every time we are exposed to them.

As consumers we want to believe that the product we are purchasing is going to fulfill some want or need. Whether or not we’ve done any research on a product, especially in the case of low commitment purchases, we are most likely to feel comfortable with a product that says the words that we’ve grown familiar with. As an Amy’s customer, if I’m looking for a frozen dinner, I’ll most likely choose the one that has a list of “NO’s” because I associate them with personal benefit, even if I don’t know exactly what the benefit is.

Ch. 5

Amy’s vegetarian pot pie will sit on some shelves longer than others. In fact some shelves will never have the pleasure of Amy’s visit. Of course Amy’s wouldn’t distribute to Steak Side Meat market in Burgerville, Texas, because that’s not where consumers interested in that kind of product would be. That goes for the placement of the product within a store. Amy’s products are often placed in two sections of a market, one in the frozen food section among a variety of brand frozen prepared meals and another within a health food section of the store. This is done to familiarize customers with the product while shopping for similar products (ie. t.v. dinners) and those looking particularly for health food products.
People shop for healthy foods for a variety of reasons. Some have health concerns and have been educated about the benefits of organic foods or foods without added preservatives. Others enjoy a healthy lifestyle or pursue healthy choices because they are attracted to the image of health.

There are many ways people learn about products and they use this information when making purchasing decisions. People often recall previous experiences with a product, or they may have heard about a product from a friend, read an article about a product or viewed TV commercials promoting a product. People then compare shop, considering possible alternatives. Once a person has established a want or need for a product they may purchase it and begin the evaluation process.

Considering all of the food options on the shelves today we show great experience in our consumer decision making capabilities. Product placement is a key factor in the marketing mix. The strategic placement of Amy’s products in stores help influence our decision of whether or not to purchase a product buy connecting the health-food concept with convenience and accessibility. Ultimately, the decision to choose one product over another is ours, yet the careful marketing that influences us often hits home, or is at least perfectly placed in our nearest grocery store.

Ch. 5: Consumer Decision Making

When consumers are making the decision to buy a product they generally follow a “consumer decision making process”. This process requires that one recognize that they want or need something, research available products or services, evaluate and compare alternatives, purchase, and then decide if one is satisfied with the purchase of the product or service. Marketing managers research such things as demographics, culture and values when creating a marketing strategy.

Amy’s Kitchen among other “health” food brands have found a niche in the market that allows for refined targeting practices. Amy’s original intention was to cater to busy people (primarily vegetarians) that want to eat healthy food that tastes good. Everyone has to eat and because of the increasing education and awareness of good nutrition practices, people’s food choices are ever-evolving.

Amy’s image is “at home” cooking that comes in a box. The frozen foods are packaged in cardboard boxes, with pictures of home cooked meals placed on serving dishes in an “at-home” kitchen setting, with fresh whole ingredients in the back round. The colors are most often browns, yellows, and greens, which are associated to earth and nature. These images likely appeal to the educated consumer that cares about the importance of healthy home cooked meals. Amy’s image relays an understanding of these values and this image translates to the buyer that Amy’s products are not that far removed from home cooking.

At first Amy’s could only be found in health food stores because that’s where the majority of vegetarians could find a variety of food options. Now Amy’s products are spreading to even the largest of grocery store chains. Amy’s (as well as other foods targeted to heath conscious consumers) distribution to larger food chains is now reaching the minds of household decision makers of all interests and values. Not all Amy’s customers are vegetarian, for instance. Amy’s customer base is expanding to large families that usually shop in higher volume (via large chain grocery) and is being marketed to children (they offer a menu of kids meals).

Ch. 4

96% of the companies that export in the U.S. are small companies, and Amy’s is one of them. Since Amy’s products are domestically produced, they avoid licensing and contract manufacturing yet they must still adhere to the principles of the marketing mix. Research must be done to gather information in order to create a global marketing strategy. In terms of marketing, “marketing managers” (in Amy’s case, Rachel Berliner), must evaluate the four P’s: product, place (distribution), promotion, and price. These include such things as product adaptation (cooking instructions may vary), transportation, advertising, and exchange rates.

Amy’s has successfully reached global markets most likely on the strength of their competitive advantage. They are still considered “a big fish in a little pond”. The market for packaged health foods is growing yet has considerably small competition. They can still be considered a niche market in that they (obviously) have good growth potential but aren’t crucial to the success of an abundance of major competitors.

Ch. 4: Developing a Global Vision

Amy's leads the nation in prepared organic food sales and boasted revenues of $240 million in 2008. Nationwide sales in those numbers bring the question: “How can a company stay true to their health conscious values in numbers so grand?” Considering the nature of Amy’s Kitchen (natural, organic foods) the company’s practices may not seem conducive to global sales, at least not without the challenge of maintaining the level of quality that they are known for.

All of this said Amy’s hasn’t turned their heads to global responsibility and expansion. They started out in the U.S. in 1988, then Canada in by 1991 and continued on globally as sales grew sky high in 1995. And this all started with an organic, vegetable pot pie. Amy’s theme remains “at home” despite catering to a global market. Amy’s product development is geared toward feeding gaps in the market, including vegetarian and special diets. This market is found where ever people eat (and that’s everywhere). “Freshness” is crucial part of Amy’s business strategy and so far they have successfully maintained this image.

CH 3: Ethics

As a vegetarian I'm absolutely smitten with Amy's Kitchen's organic health foods. It’s the largest vegetarian line of packaged foods on the market. I'm one of those label-readers in the grocery store but because of Amy's undeniable charm I've let down my guard. "Organic", "All Natural Ingredients", "No Bio-engineered Ingredients", "Made with organic vegetables & grains", are all labels that can be found proudly on Amy's products. When I first fell for Amy's I was attracted to this packaging and started out reading all of the ingredients. I wouldn't be so bold to say that I'm an educated food consumer but I do possess quite a bit of common sense and after years of reading labels I tend to stay away from foods that contain ingredients that sound like chemicals, i.e. "glutamic acid". So I ASSUMED that all of Amy's products are chemical free and stopped reading the ingredients on the back of the box. That's any food company's dream consumer, a fully trusting one. I was silly to put my health in the hands of a food corporation.

I've recently discovered that some of (but not many) of Amy's products contain an ingredient called yeast extract. Yeast extract is a processed yeast product used as a "flavoring additive". Yeast extract contains glutamic acid which is also found in monosodium glutamate, more commonly known as MSG, and causes the same health problems. The effects from MSG can range from migraine headaches and dizziness to according to doctors like Russell Blaylock, author of Excitotoxins, may aggravate or precipitate many neurological disorders and cause harm to the nervous system. Looking a little further I've also found that another ingredient used by Amy's is hydrolyzed corn and soy protein which almost always contains MSG or creates MSG during processing.

Amy's is a company that targets vegetarians, the diet-restricted, and health conscious consumers. As the leading producer of packaged "health foods" they carry the huge responsibility of being "HEALTHY". That's what consumers expect when they buy Amy's products. A response to an article written about the matter, ("How I got blindsided by yeast extract in Amy's Kitchen organic foods" by: Mike Adams, the Health Ranger, Natural News Editor) can be found here: http://www.naturalnews.com/021674.html. This article received a large amount of reader feedback. Bill Twieg, the Technical Director of Amy's Kitchen, responded by explaining that Amy's Kitchen is committed to serving a health conscious community and that they would work on eliminating yeast extract from their products. Amy's full response can be found here: http://www.naturalnews.com/021651.html.

Amy's has always fully disclosed all of its ingredients on their packaging, no secrets. Amy's customers demand not only healthy food but FLAVOR and Amy's has delivered both to a great extent. The challenge remains to find a balance. Amy's is less than perfect but they are striving for this balance. Their response to people’s concerns showed that they are willing to work to satisfy their customer’s needs. Amy's standards are high and their performance represents that. Well it's back to the back of the box for me and for many, still loyal, Amy's customers.

CH 3: Food from your friendly neighbor

There is something about biting into a just-picked, red, juicy, sun-ripened tomato that will bring one to a deep-rooted, natural human place. Even just for a moment and even if in ones 450 sq. ft. Brooklyn apartment. Those moments are few and far between for most. We don’t all have thriving gardens in our back yards… We don’t all have back yards. For most Americans what was “once upon a time” a trip to the garden is now a trip to the local fruit stand, grocer, or food super-center. Most people visit a grocery store that seems to magically have the produce they desire even when it’s not in season. It may not be the juiciest, ripest tomato, but it’s there and many people don’t think twice about how it got there. People are very often unaware or disconnected from the journey that food takes to get to us, the resources involved and the great impact on the environment. Amy’s Kitchen receives over 50% of their vegetables from the organic gardens within 200 miles of their headquarters, some even irrigated by water from their own pond, really. What’s so great and responsible about this company and all local farmers, is that they are taking some responsibility off of the average consumer. The closer the garden is you eat from (within the US and within your community) the less waste that is involved in all areas of production and distribution. This means less cost to the environment. It’s just fact. Amy’s has something good going and we’re all benefiting. This is what the modern world requires now, mindful options made easy.

CH 2: Strategic Planning

It’s exciting to see a small business born out of such a unique start become a success. It’s a reminder to all small business owners that success is possible, even from the most humble of starts. They started with a great idea and a passion for their product which guided them to the top. Andy and Rachel Berlinger (the founders, CEO, and head of marketing) had what at one time was probably considered a niche competitive advantage, a growing market with very little competition. Their business sprouted just around the time that the general public was becoming more aware of dietary health issues and the correlation between chemicals in food and health. As the hectic demands of daily life persisted, Amy’s Kitchen had a great starting ramp into what is known a thriving business. Now 22 years later they continue to lead the frozen health food market. They separate themselves by exceeding people’s expectations in taste and quality. This consistent attention to quality as well as an obviously sound market plan has kept them at the top of their game with still very little competition.

America's Healthiest 2009 Awards

Amy’s Kitchen started out as a small business venture in Petaluma, California by a couple named Rachel and Andy. They decided to name the company after their daughter, who was born right around the company’s startup. Their products are now found all over the nation’s shelves and are rated the top of the natural frozen foods chain. The now hugely successful company is often acknowledged in various magazines including Good Housekeeping, Veg News, Pilates Style, Seventeen and Fortune. Amy’s Kitchen’s frozen Indian Mattar Paneer entrée was awarded America’s Healthiest in Health Magazine’s 2009 awards. Continuing with their commitment to quality, Amy’s Kitchen is consistently wowing customers with flavor and variety. They have a countless list of dishes covering one’s ethnic tastes and diet restrictions, and they are rapidly adding to their menu. Once a small family business, they are now a large company still offering small business quality and dedication to fulfill their customers desires.

Amy’s Kitchen

Amy’s Kitchen is the leading frozen natural foods brand. They started out as a small family business in 1987, working out of their home and barn. Their mission was to create a healthy, organic, easy to prepare meal that catered to people that don’t always have time to cook from scratch. Their first product, which was an instant success, was their vegetarian vegetable pot pie. They not only, very quickly, had a huge vegetarian following but a large following of people who simply didn’t have time to cook and wanted a frozen dinner that tastes good. As a loyal Amy’s Kitchen customer I can say that taste, as well as convenience, is what keeps me coming back. Amy’s is still “#1 in popularity and sales” today and they credit their success to their “total commitment to quality”.