Marketing research for the introduction of a new product in the Venezulan market: saltine cracker with partial substitution of wheat flour by tropical tubers and roots

Abstract

It has been a challenge to promote U.S. food products in Venezuela during the last few years because this country has been struggling with an ongoing recession and changing macroeconomic policies. In April 1996, after one and a half years of foreign exchange controls, fixed exchange rates, and price controls, the Government of Venezuela (GOV) implemented a set of new economic policies that liberalized market operations and created a climate more conducive to expanding business. Due to fundamental conditions, such as its proximity to the United States and strong cultural ties to Venezuela will remain an important market for U.S. exporters, and we anticipate that demand for consumer-ready foods will increase. The prices for saltine crackers in the Venezuelan market are cheaper than U.S. Wheat usage in South America by category is roughly as follows: bread (70%), pasta (18%) and cookies (4%). Quality is generally high. Venezuela imports 100% of its wheat requirements, this leaded to do local research with the purpose to create new possibilities for development new local starches with the use of Xanthosoma saggitifolium, Colocassia esculenta and Ipomea hatata, plants that grow in tropical areas in artisan cultures. Like potato, these plants produce underground storage organs (tubers, aroids or corns) whose solid contents are mainly starch. They are grown in tropical areas and they are consumed mainly in home, boiled in soups or mashed. Tubers or aroids or these plants are potential sources of flour and industrial starch that had not been exploited. These tubers are perishable. This marketing research conduced to show a potential market for roots and tubers that actually are sub used in Venezuela, and at the same time these could replace 15% of the wheat used in the production of saltine crackers. This represents a saving of money invested in wheat imports and at the same time contributes to the development of the agricultural sector and the development of a new and potential industry.