Creating a new value proposition
Signorino says the only way to a healthy bottom line in the long term is to restore healthy growth to the top line. To increase revenue, he drew on his knowledge and experience from his tenure at consumer products giant Nestle.
He began by examining the lack of customer enthusiasm for tuna, looked at consumer data at the macro level and asked how people’s lives could be improved from the identified trends, what products could be used to address those need, and what vision was needed to carry it all out.
“I started by looking at consumer research data that was available through A.C. Nielsen,” says Signorino. “I wanted to understand what the consumer was thinking. What I found is that health and fitness were important, as were time constraints.”
He also found that consumer tastes had changed. Buyers were looking for more sophisticated products to accompany a more refined palate. The notion of increasing product sophistication fit well with the need for improved margins, and his next move was to speed up the creation and release of new products by realigning the priorities of research and development.
He also brought in a new manager to oversee its project.
“The decision to create a separate position for new product development was made after reviewing the industry, its growth patterns, segment profit potential and consumer trends,” says Signorino. “When looking strategically at this landscape, I quickly saw the need for new and innovative products to drive profitable growth.
“I gave them new goals focused on product development. We want to have new products out on the shelf every time the store resets in order to keep the category fresh and exciting.”
One of the first new products to hit grocery store shelves was a gourmet smoked Pacific salmon fillet. Signorino says that this product appeals to consumers’ desire for more sophisticated, healthful seafood without the mercury contamination concerns.
Since the introduction of the line in 2005, the product has grown to 8 percent of the firm’s total sales, and Chicken of the Sea is now one of the nation’s largest purchasers of salmon.
“The vision was to create restaurant quality and convenience for the consumer,” says Signorino.
The new salmon offering has been joined by a line of flavored ahi tuna steaks, and the next new release will be a line of tuna and salmon cups.
The data showed that an increasing number of employees eat lunch at their desks and want healthy foods that can be eaten under tight time constraints. Chicken of the Sea responded with the tuna and salmon cups to fill that need.