Comprehensive concept included a culinary training center and gastronomic library in Pram. Initially introduced the Academia brand in the United States. Eating cooking school in Italy Academia product line being introduced to chefs at top Italian restaurants and through a number of gourmet food stores in the United States. Consumers 0 Barilla Almost everyone. – pasta was the foundation Of Italian eating. Italian consumers were extremely price sensitive. Pasta consumption tended to decrease as household income increased.
D Academia Barilla High-income food lover who also loves Italy Chefs, food lovers Top restaurants Competitors RL Barilla Leading market share in Italy “Ronnie” in the U. S. Market of dry pasta. But not vital. Fake Italian products Local companies: Kraft SOOT Strength 0 Academia Barilla 0 Very strong brand and reputation Barilla: strongest brand name in Italy. Household penetration was over 80%. Excellent image Burial’s market share: number-one brand position arrest pasta manufacturer in the world, making 25% of all pasta sold in the United States.
This competitive advantage in terms of distinction and knowledge C] build effective relationship with its network of restaurants, distributors and retailers. C] High-quality products. Broad product line and an effective recognizable packaging. 0 Excellent R unction and focus on innovation Conduct focus groups (finding out the best cheese is made with milk from cows that live on the hills and mountains), consumer researches, collect feedback to refine the product line. Barilla polled over 3,000 restaurants from Italy when researching the project.
L] Competitive advantage through their logistic network Academia did not produce anything itself. It added value buy buying the finest products from the local producers and then doing the sales and marketing. C This important intermediation ability gives Academia a high bargaining power over distributor and partners. D Good promotion strategy Based on public relation and advertising Extensive public relation programs to place articles on authentic Italian cuisine in well-respected food magazines. Participating in culinary events such as the annual Aspen Food and Wine Festival and organizing local tasting.
C] Good diversification strategy Academia’s initial product line focused on the handful of categories essential for Italian cuisine, including regional olive oils, balsamic vinegars, cured meats and cheese, but excluding pasta to prevent competition with the core business. 0 Excellent marketing positioning High-quality segment, high-quality restaurant high-income food lovers who also loved Italy Weakness 0 Uneducated consumers It is selling high priced products without a direct sales force. , Even top U. S. Assistant chefs had no frame of reference when it came to buying Italian products. The chefs knowledge of Italian products is minimal and most don’t know how to taste olive oil, vinegars, or even cheese. D High priced segment of the market Only top IS. S. Restaurant and gourmet food stores (education problem) ј No direct sales force Only “in-store demonstrations” in gourmet food stores. Absence of young consumers. Not interested in cooking and traditional meals The population aging problem is increasing the presence of people with more buying power, fostering the restaurant consumption.
Opportunity Increasing restaurant consumption Economic prosperity C] Focus on healthy diet Italian food appeared to be a strong fit with current consumer trends, including increased interest in health and an ongoing need for convenience. The number of “non-authentic” Italian products sold confirmed the high potential of the market. I:] Increasing trend toward high-quality products and customer services Growing attention for traditional cuisine and ethnic food rend new channels, new countries C] nonfood products that supported the Italian lifestyle 0 e-commerce The read C] F-cast-food consumption is relatively high in the U.
S.. L] Counter-cyclical products: normally counter-cyclical to the overall economic cycle: it falls during times of general prosperity (more people eat out) and rises during economic contraction (more people eat at home). Pasta consumption tended to decrease as household income increased. With more Women going out to work, cook time is reduced. Volatility Of raw materials price and quality due to seasonality Inherent instability in the Academia reduce line. C] Economic downturn risks Unavailability of credit needed to sustain growth, high interest rates and increasing cost of capital, consumer trade for substitutes.
CLC Natural exporting risks Change in Euro-dollar balance, trade tariffs and barriers to trade. 0 Culture. American consumers cannot recognize the difference. Alternatives L]Continue to expand in the U. S. Market using the “formula” that had been developed. Sell more products to existing accounts by either increasing the usage of current restaurants or consumers or, for retail, attracting new consumers to the Academia line. Pros: No risk If rest-mover Focus on R Cons: Not solving the existing problem of uneducated customers. Develop a direct “business to consumer” business model. Pros: Allow for the one-to-one De auction needed to convey the benefits Of the product line Educating more customers. Now proving ineffective. Expand the portion of the business related to culinary services, publishing, and content. Pros: Allow Academia to reach more customers Expensive Exposure to higher risks Capital and human resources limitation C] Expand retail distribution beyond gourmet food stores. Pros: Reach more customers Reduced on-shelf visibility and limited opportunities for cross- merchandising.
Meats and cheese lost their bran identification once they were sliced and packaged. Deli managers had to be trained on how to properly slice prostitution, and waste was high since the first slice was often thrown away. Selling vacuum Recommendations CLC option I & 2 0 Segmentation: CLC Position: high-quality, high-price; 3 mission statements Targeting: Italy: chefs and food lovers U. S. : top restaurants, high-income food lovers. Action Plan Short term Product: new food products, especially those that were not available in the U. S. Nonfood products that supported the Italian lifestyle, Price: higher price margin since financial lost in 2004 and 2005 Promotion: workshops Place: top restaurants, gourmet store, websites; direct sale?in-store demonstration; special section in specialty store Long term Product: more diversified products to enhance Italian food culture overall; Price: low price to price-sensitive consumers, high price to quality pursuer Promotion: Host Italian cooking competition; winners have the chance to study in the training center in Italy; Barilla Italian Food Festival Place: new countries;