Barilla Spa
MARKETING – II
CASE ANALYSIS
Barilla SpA (A)
SUBMITTED BY:
Section A Group 9
Shivani Jain
Anuj Peepre
C. Narayana Reddy
Santosh Kumar
Pushpendra Singh
Ritesh Kumar
Mohammed Shahbaaz
Executive Summary:
Barilla SpA, an Italian pasta manufacturer is experiencing problems in manufacturing and distribution systems caused by fluctuations in demand. To eliminate these difficulties, Giorgio Maggiali, the Chief of Barilla’s Logistics Department, has been trying to implement the Just-In-Time-Distribution, further referred as JITD, system proposed by his predecessor Brando Vitali. JITD can be called a remake of popular “Just-In-Time” manufacturing concept. Although Maggiali has been trying to convince his consumers that the JITD would definitely work, he has not made much progress. The program was met with significant resistance by the distributors and Barilla’s own Sales and Marketing organizations. The short term objective of Maggiali is to be able to overcome the resistance and implement the JITD solution while the long term orientation is to increase the profitability of the corporation. Maggiali is looking for possible solutions of the problem.
Overview of business (Case facts):
Barilla Product Range included Pasta, Bakery Products, Fresh Bread and Catering Products and as of 1990, it was the world’s largest pasta producer with 35% market share in Italy out of which 32% came from the traditional brand. It also occupied a 22% market share in Europe. It operated an extensive network of plants located throughout Italy including flour mills, pasta plants, and fresh bread plants, as well as plants producing speciality products. Barilla enjoyed a strong brand image in Italy. Its marketing and sales strategy was based upon a combination of advertising and promotions which can be grouped together under the two heads:
Advertising
* Barilla positioned the brand as the highest
CASE ANALYSIS
Barilla SpA (A)
SUBMITTED BY:
Section A Group 9
Shivani Jain
Anuj Peepre
C. Narayana Reddy
Santosh Kumar
Pushpendra Singh
Ritesh Kumar
Mohammed Shahbaaz
Executive Summary:
Barilla SpA, an Italian pasta manufacturer is experiencing problems in manufacturing and distribution systems caused by fluctuations in demand. To eliminate these difficulties, Giorgio Maggiali, the Chief of Barilla’s Logistics Department, has been trying to implement the Just-In-Time-Distribution, further referred as JITD, system proposed by his predecessor Brando Vitali. JITD can be called a remake of popular “Just-In-Time” manufacturing concept. Although Maggiali has been trying to convince his consumers that the JITD would definitely work, he has not made much progress. The program was met with significant resistance by the distributors and Barilla’s own Sales and Marketing organizations. The short term objective of Maggiali is to be able to overcome the resistance and implement the JITD solution while the long term orientation is to increase the profitability of the corporation. Maggiali is looking for possible solutions of the problem.
Overview of business (Case facts):
Barilla Product Range included Pasta, Bakery Products, Fresh Bread and Catering Products and as of 1990, it was the world’s largest pasta producer with 35% market share in Italy out of which 32% came from the traditional brand. It also occupied a 22% market share in Europe. It operated an extensive network of plants located throughout Italy including flour mills, pasta plants, and fresh bread plants, as well as plants producing speciality products. Barilla enjoyed a strong brand image in Italy. Its marketing and sales strategy was based upon a combination of advertising and promotions which can be grouped together under the two heads:
Advertising
* Barilla positioned the brand as the highest