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Overview Industry Mature product by 1990 Little or no growth domestically Italy Export market experiencing large growth 20-25 per yr in European countries Expect 23 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 industrys 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 Competitive Strategy 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 pastabread 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 Barillas sales 800 dry SKUs 470 pasta SKUs from 200 pasta shapes Pasta SKU differentiation by packaging Plans to exploit new market opportunities in Eastern Europe Focus on high volume manufacturing Distribution Network Barilla Manufacturing Plants To Barilla CDC or Barilla depots To Distributors GDs or DOs To Supermarkets Small Independent Shops 1 What do you think are the main causes for large fluctuations in orders observed at the Pedrignano CDC
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