Huy Fong Foods Case Study

Background: Huy Fong Foods is an American Company founded in 1980 in Los Angeles, California.1 Huy Fong Foods headquarters is in Irwindale, California (“Huy Fong Foods”, n.d). The founder of Huy Fong Foods is David Tran who came to America in 1978 as a Vietnamese refugee (“Huy Fong Foods”, n.d). Upon moving to California, David Tran, noticed there was a lack of hot sauces that pleased his Vietnamese palate (Hammond, 2013). Because of this, he decided to make his own hot sauce. He started in 1980 by personally delivering his products throughout Los Angeles’ Chinatown (Hammond, 2013).

Marketing:
Product: Huy Fong Foods makes three products, Sriracha Sauce, Chili Garlic Sauce, and Sambal Oelek (Hammond, 2013). All these products use the same …show more content…
However, they are some other companies that produce Sriracha sauce including Heinz, Tabasco, Kikkoman, Trader Joe’s, Thai Kitchen, and Lee Kum Kee (Lopez-Alt, 2013).
Geographic Representation: Huy Fong Foods Sriracha sauce is available in United States, Canada, and in Europe (Ferdman, 2013).
Promotion: Everything is done by word of mouth. David Tran has never spent a cent on advertising or promotion of his product (Hammond, 2013). This is because there is such a demand for his product he can barely keep up (Ferdman, 2013).
Pricing Method/Strategy: Even though he could charge a lot more for his product due to its popularity, David Tran goal was to make a rich man’s sauce at a price a poor man can afford (“Huy Fong Foods, Inc.”, n.d).
Position/Differentiation Strategy: Huy Fong Foods only use locally sourced chili peppers, as compared to their competitors who import chili peppers from all over the globe (Kaufman, 2015). Huy Fong Foods believes that using locally sourced only provides them with the freshest pepper and superior taste (Kaufman, 2015).

SWOT – Analysis:
Areas of strength: Strong fan base, large corner on