* Mature product by 1990. Little or no growth domestically (Italy)
* Export market experiencing large growth (20-25% per yr in European countries)
Expect 2/3 of new demand from Eastern European market. Demand is high because they wanted low-priced basic food products
* Limited or no seasonal demand
* Highly competitive domestically over 2000 pasta manufacturers in Italy. Declining margins.
* Pasta market is extremely price sensitive.
* Barilla is the market leader in Italy and is the industry's largest manufacturer.
* Supply chain represents approximately 55-58 calendar DOH of dry goods (30 in the CDC, 14 at the Distributor, 11-14 at the Supermarket or Independent Shops)
* Barilla is the largest pasta manufacturer in the world (35% of market in Italy and 22% of market in Europe)
* Also 29% of the Italian bakery product market
* Vertically integrated - owned mills, pasta/bread plants, and distribution network
* High quality product
* Largest and most advanced manufacturing facility (Pedrignano plant)
Focus is on developing most efficient production methods for existing and new products.
* Will increase focus on export opportunities.
* Creative marketing campaigns
Large scale advertising programs promotions. Also, selling in cardboard box with a recognizable color pattern created strong brand name recognition and image for their pasta.
Enjoyed a strong brand image in Italy
* Product mix
Fresh products - 21 day shelf life
Dry products - long shelf life 18-24 months, medium shelf life 10-12 weeks (75% of Barilla's sales)
800 dry SKU's; 470 pasta SKU's from 200 pasta shapes.
Pasta SKU differentiation by packaging.
* Plans to exploit new market opportunities in Eastern Europe.
* Focus on high volume manufacturing.
Barilla Manufacturing Plants
Barilla CDC or Barilla depots
Distributors (GD's or DO's)
Supermarkets, Small Independent Shops...