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Academia Barilla

Satisfactory Essays
Issue statement How best to manage Academia to fit into Barilla’s long-term strategy and need for growth.

Situation analysis
3C
Company
 Barilla
Largest Italian food company in the world.
Best-selling pasta brand in the United States
Strongest brand name in Italy.
Dry pasta and several bakery categories in Italy.
While also pasta sauces for the U.S. market.
 Academia Barilla
Feeling the limitation of growing the business with only pasta and sauce.
Launched in 2004 to preserve, develop, and promote authentic Italian cuisine.
Comprehensive concept included a culinary training center and gastronomic library in Parma.
Initially introduced the Academia brand in the United States.
Leading cooking school in Italy
Academia product
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The number of “non-authentic” Italian products sold confirmed the high potential of the market.
 Increasing trend toward high-quality products and customer services
Growing attention for traditional cuisine and ethnic food trend
 new channels, new countries
 nonfood products that supported the Italian lifestyle
 e-commerce

Threat
 Fast-food consumption is relatively high in the U.S..
 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 product line.
 Economic downturn risks
Unavailability of credit needed to sustain growth, high interest rates and increasing cost of capital, consumer trade for substitutes.
 Natural exporting risks
Change in euro-dollar balance, trade tariffs and barriers to trade.
 Culture.
American consumers cannot recognize the difference.

Alternatives

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
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