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).