Barilla Audit Report
Barilla Audit Report
Barilla’s marketing philosophy focuses on the Italian heritage of pasta consumption. Since the company is international, the products were changed or adapted for each region in order to fit the customers’ needs. The company does not follow a market-oriented or holistic oriented culture. Marketing culture of Barilla has territorial orientation since the places of the production and consumption are far from each other (Dessi, Caboni, & Giudici, 2013, p. 74). In order to satisfy the customers’ curiosity about the product origin and ecological status of the food, the company positions the products as local and belonging to a famous cultural heritage. The geographical provenance is important to people because of the quality of weather conditions and soil where the food grows and is harvested. This has an impact on the emotional desire to buy this product, stimulating perceptions.
The uniqueness of the Barilla food is defined by the native Italian region and the family traditions of gathering crops and planting seeds. The combination of special features that people associate with the exact place creates the product identification. In order to increase sales, Barilla designed lines of products that have strict characteristics related to the particular places. If the company can communicate with cultural identity, it may increase its profits, because consumers consider their background and roots and choose products emotionally and almost subconsciously. Applying this strategy, Barilla focuses on local quality, which is the main preference of the customers. Since this culture has brought recognition and profit, I do not think it has to be changed. For example, the holistic strategy means satisfaction of the customers, who are searching for good quality food, and they receive it with Barilla.
The customers of the Barilla company are all who want to satisfy their primary need for food. Since the company is international, the customers are from Italy, Scandinavia, America, Asia, and Europe. Usually, they are adults of 35 and over who value high-quality products and earn enough to buy them. Thus, the company has a profit of more than $100 thousands. Mothers are the main target of the advertisements on TV commercials since the company shows family traditions and preparing the food as a part of family time.
The environment of the Barilla’s product has numerous aspects, first of which is people. They need food for consumption regardless of age, gender, and geographical location. Additionally, they have preferences based on nutrition traditions and whether the family cooks or not. Therefore, Barilla searches for cultural Italian background in big cities and developed countries, paying attention to families with children. Economic environment defines the countries where customers are ready to pay for the company’s products. Technological aspects, such as modern advertising channels and ways to communicate directly with the customers, are important to Barilla company and are being developed. The ecological trend of healthy food is the other environment that requires decreasing the amount of fats and chemicals in products. Additionally, it has led to recycling and reducing emissions on plants.
Barilla’s competitive advantage is in ecological products that are made for human and global well-being. Their mission described in the slogan “Good for You, Good for the Planet” (“Vision and strategy,” n. d.). They produce food following high standards in nutrition, choosing the Mediterranean diet as the basis. They reduce the emissions from their plants and select the best raw materials that are safe both for people and nature. In order to educate youth to consume healthy products, they created programs for supporting local production. The Employed Lifecycle Assessment tool limits the harmful influence of their product on the environment. Barilla has reviewed the ingredients they use, reduced the use of palm oil and other saturated fat, and increased the line of wholewheat products. For chosen products, such as pasta, they put the detailed description of the possible result of consumption of the product on customer’s weight rate. Since customers need natural products and are interested in their consumption, the main purpose in terms of this competitive advantage is to become the most widespread and popular baked goods, sauce, and pasta manufacturer in the world (Barilla Holding Group, 2016, p. 24). Definition of the competitive strategy establishes the main ways in which the company has to move in order to receive the profit.
Barilla’s marketing strategy is to become the most known Italian brand worldwide. Their long-term task is to increase product value, fulfilling customer needs. Another plan is to grow the market share and focus on big cities. They try to achieve this through multiple channels, such as restaurant business, bakeries, snack products, sauce and pasta production, and their advertisements. During 2016, the sales volume increased in Europe (4%) and in Russia (34%) (Barilla Holding Group, 2016, p.5). The main reason for this growth is the creation of a line of new whole grain and multigrain, gluten free, and “Mulino Verde” pasta. The USA market required manufacturing mostly gluten-free and organic pasta “Pasta Prono” ,which gave outstanding result at 31.4% of market share (Barilla Holding Group, 2016, p.5). In addition to adding the product line, the marketing strategy completes with the packaging, which has unusually bright blue color and a paper box. The commercials on TV are a popular and profitable tool to make the brand recognizable and to inform society about new products on the market and their variability. Additionally, the company shares many receipts through mobile apps that try to popularize the Italian tradition of cooking pasta (“Vision and strategy,” n. d.). There are three official websites that company has, which tell a detailed history of the company, provide mission and vision, and present the annual reports of Barilla. The other channel of communication with the customer that the company uses are an educational program and a summer camp for children to teach them healthy eating literacy and create future customers from an early age. However, not all the approaches to marketing management are used by the company. For example, they have no accounts on popular social media platforms, which are now one of the most efficient ways to tell the world about themselves and advertise their products with low expenses. This should be changed since more and more people find out about new products using Facebook, Twitter, and other popular platforms.
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The mix of marketing strategies means cooperation between four main parts which are price, product, place, and promotion. There should be a correct and equal focus on each, since the imbalance can lead to the decreased revenues and sells. Considering the customer need, the quality of the product matters the most and customers are ready to pay a reasonable price for high quality. However, if the price would be higher as compared to the same product of another company or will not possess the quality customers expect, they will not buy it. Barilla knowing this, has a good price and a smart pricing strategy, so people around the world can afford it. Companies try to select the most bright feature, color, and package for their product, so it will be more noticeable. One may say that Barilla’s packaging works for customers, since the color is vivid but calm, the names of the pasta and sauces are clear and visible, and the list of the ingredients mentions all the relevant information on one side of the paper box. Place matters for Barilla the most, since they grow raw resources in one country, where the weather conditions are familiar. The location matters to their most probable customers. Since the target of the company is urban cities with high population, the company manages to deliver the product there. The customer receives easy access to the purchases and is satisfied with local Italian pastas they can find in the closest supermarket. The promotion of the Barilla company has many channels in order to reach the target audience, The business tries to learn more about them in order to see their needs and decide what changed should be made. Following this rule, the bakery line was limited, since the company’s customers prefer pasta and whole wheat snacks. Evaluation of marketing mix has shown that all topics important to the company’s success are working well, which makes Barilla one of the most recognizable pasta brands worldwide.
Barilla achieves the aim to be one of the most known pasta producers in such markets as Italy, Norway, Sweden, Germany, the USA, and five others (“Vision and strategy”, n.d.). Its sauces are most popular in Greece, Slovenia, and Austria. France and Italy value their bakery products, and Barilla’s crispbread is number one in Scandinavian countries (“Vision and strategy,” n. d.). The company operates in 26 countries in all and exports products to another 100 ((Barilla Holding Group, 2016, p. 20). Financial success of the company increased as compared to the previous years. For example, revenue in 2016 was 3,412,908 thousand euros, why the 2015 revenue was 3,382,767 thousand euros. Profit boosted from 278,290 thousand euro to 370,910 thousand euro (Barilla Holding Group, 2016, p.30). Market share has reached 31.4% (Barilla Holding Group, 2016, p. 5). People like their products, and the marketing strategy works well in every country, helping families change their preferences in food to home-made items. Even though the company has acceptable financial success, the mission has not been achieved yet. Many markets are still unfamiliar with Barilla brand, and not all geographical regions are equally participating in economic profits. The promotion has to include social media, so it will help in brand recognition, It should likewise be more focused on mothers who want to delight their families with delicious, healthy, and safe products.
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