Mulino Bianco

‘Mulino Bianco’

going international

Erasmus University Rotterdam

Faculty of Economics of Business

Marketing

Supervisor: Prf Gerhard Havranek

Name: A.C.G Rando

Student Number: 332001

E-mail:

Study: IBEB

Thesis: Bachelor

Table of content

1.  Introduction pg 3-5

2.  Problem statement pg 5

3.  Research question pg 6

4.  Scientific and social relevance pg 6-7

5.  Structure and purpose of the research pg 8-9

6.  Theoretical framework pg 10

7.  Body part 1 pg 11-20

8.  Body part 2 pg 21-32

9.  Conclusion pg 33

10.  Annex pg 34

11.  Literature references pg 35

Introduction

We live in a time where we can have access to goods originating from all over the world. With the recent advancements in technology, transport and connectivity we can send or receive any products within a matter of days, delivered right to our doorsteps. Individual tastes are constantly changing, becoming more specific but also wanting to try new things. This is all possible now, and the variety of products for which this is applicable is enormous.

The topic of this thesis is directed at products of the Italian food industry; these being pre-packaged products, as they are more easily measured and are more suitable for export. More specifically, this thesis will focus on pre-packaged cookies and sweet snacks. These are typical foods of the Italian culture that are consumed at breakfast or as a small snack throughout the day. A popular company producing such snacks is called ‘Mulino Bianco’.

‘Mulino Bianco’ is a subsidiary brand owned by ‘Barilla’, an internationally recognized brand, particularly known for its pre-packaged pasta. ‘Mulino Bianco’ was first introduced in 1975 and was given a different name to distinguish the kind of products that they were producing. This is the most well-known and most purchased brand of sweet snacks in Italy, characterized by a high quality, home-made style and healthy food image (see summary sheet in annex). Countries directly bordering Italy, such as France, Austria and Switzerland, make some of these products available on a small scale. In other countries these products can be found in really small typical stores but with limited variety and quantity and at an increased price.

This thesis will be looking into how these products could possibly be expanded out, with the main focus on doing so in the Netherlands. The Italian cuisine is popular amongst the Dutch population, suggesting that these Italian products are likely to be successful as well. This thesis will come up with a realistic marketing plan representing the steps ‘Mulino Bianco’ would have to take to carry out this expansion.

Firstly it’s important to mention that both qualitative as quantitative data are important to come up with a realistic plan. For this particular case the steps will be formulated by qualitative data only, due to scarcity of data available on this specific company. Another issue is that detailed information regarding the eating habits of the Dutch population at breakfast time and snacking habits has been difficult to find. What should be mentioned is that quantitative data is important to get an idea whether cost wise and money wise the expansion is viable. Possibilities and percentages are also important in finding out whether there are enough people wanting to try certain products and what the risks and chances are. Nevertheless, qualitative data can give you an accurate idea of what the best strategies and methods are. The purpose of this work is not to have a plan, which can prove that the success of these steps will work, but to show what the basic and first moves should be for a company such as ‘Mulino Bianco’ to expand.

Why choose this kind of topic? Making a marketing plan is what is most interesting in the world of marketing; identifying all the steps that need to be carried out to have a successful strategy and finally seeing the company achieve the goal. The type of product and the nationality were picked for a more personal reason as I have interest in Italian products, and seeing them expand abroad.

Marketing has many definitions, but when and individual is asked what they think marketing involves they just say; ‘commercials of course’. The problem is that marketing does so much more than just create fancy advertisements to catch a consumer’s attention! This specific department is the very base of a company, with their main goal being find or create a demand for products. Then again, this is just the most important aspect. There are so many other factors in marketing, including promotion of goods that the general population simply assumes being the only activity of marketers: to try to grasp attention.

An experienced and good marketing department is crucial for any business or company that wants to succeed. The most interesting aspect, as mentioned previously, is to create a plan to see how products should be introduced in markets, and, in this specific case, in the market of a new country.

Problem statement

The problem we address is: how can a local brand expand from a national to an international market?

The main problem these days is that international barriers are breaking down. As mentioned in the introduction, consumers can have their favorite products delivered to their door in a few days and they may have come from the other side of the world.

Also due to the recent increase in globalization, this has put quite some strain on all products. Globalization has shown all the benefits of expanding internationally, products becoming world renowned, and more importantly becoming available everywhere. This does however create many difficulties for brands that may have started off as simple local products, but are now losing demand due to this larger variety in products.

Globalization does cause several challenges to arise. Firstly, different cultures are being mixed, possibly affecting product demand and variety because of cultural ties to the product. Secondly, logistics and products distribution plays a key role. Finally another aspect that must be taken into account is the consumer behavior. Every nationality has different characteristics regarding their consumption patterns.

Research Question

The research question is very straightforward: how should ‘Mulino Bianco’ market its products in the Netherlands? The answer will be reached by using international marketing strategies to expand goods internationally.

Firstly we have to pose some basic but important questions:

1.  Is there an existing demand for such products in the Netherlands?

-  How do the tastes vary between the two different populations?

-  How could consumer behavior be different for these products in a different country?

2.  How to position and market these products in the Dutch market?

-  Which strategies should be used for this expansion?

-  What challenges can be expected when positioning and marketing these products?

-  What are the advantages and disadvantages of expanding in this country?

The sub-questions will help answer the main research question by solving the main issues of demand, positioning and marketing.

Scientific Relevance

The scientific relevance of this topic is that it identifies and explains the most desirable procedure to try and expand products abroad. Expansion is not always a ‘must’. Sometimes the product simply will not meet the needs and wants of those in different countries or geographical areas, or does not suit other cultures. Many factors are taken into account when purchasing such products. For example, tastes and consumption can vary significantly depending on the type of product and where it originates.

With the continuous globalization, expanding does play an important role. Not only is it a sharing of products and services; it expands the culture as well. Countries improve their connections with each other, which can lead to long-term alliances for larger projects. Globalization also has its downsides, such as increased competition, but if a product is truly unique and its qualities can’t be duplicated, it will be a success.

However, the focus should remain on the procedure of such expansion. The best way of approaching expansion to another country can be found using clear but thorough general steps. Though what must be taken into account is that these steps would only be applicable to these specific products, or similar products. Not all products require the same type of methods.

Social Relevance

Regarding the social reference there are several aspects to be discussed. Firstly, it would become clear how other countries feel about different cuisines. In this case we would be looking at a very specific area; the sweet or sweet snack in between meals, and in breakfast products. Though these products still represent the culture and style of their originating country in the way they are prepared, the Italian cuisine is already well known and integrated into other cultures. This is therefore a discussion of how an introduction of more pre-packaged products might be perceived by the Dutch population.

Another interesting aspect is that we can learn or discover other countries’ eating patterns. These products are mainly of use for the beginning of the day or for an in-between snack at school or at home. Eating habits dictate whether this is common or not in different cultures. Some countries don’t have a lot of in-between snacks, or if they do, maybe it’s a savory snack instead of a sweet one (especially at breakfast as often is the case in north Europe). So there is an opportunity to understand other eating habits and find differences or similarities.

Structure

The structure of this paper follows the criteria set on how to write an appropriate thesis; the paper is divided in three parts. The first part deals with the introduction to this topic including problem statement, research question, scientific and social relevance, the purpose and the theoretical framework. The second part of the thesis is the main body, where the planning on how to best expand a product abroad is analyzed. This part is divided into two smaller ones regarding the two main issues; a) the demand and b) the marketing of the products. The latter part contains all the theories and strategies that formulate the plan. The last part of this paper is the conclusion; evaluating the plan and therefore looking for flaws and ways to further improve it.

Purpose of this research

The purpose of this paper is therefore to find the most effective procedure to expand a product abroad. By procedure I refer back to the two main problems; whether there is a demand and how to position and market the new good.

Regarding the first question concerning the demand, the purpose is to find out if there is a want for such a product. Looking at several aspects may reveal the answer;

-  Consumers tastes

-  Consumer eating habits

-  How important are these type of meals

-  The style of the product

All these examples would allow us to find whether such a product would be purchased or not abroad. By looking at the most significant aspects we could find a general procedure to discover if in other countries there is a demand for such products.

If there is no such demand, the expansion is not recommended. Though on the other hand if there is interest for such goods, what strategies should be used to expand such a product?

For this we would be looking into details regarding the product itself, and use already existing strategies to find the most effective one:

-  Product

-  Pricing

-  Positioning

-  Placing

-  SWOTI

-  Entering the market

By looking at all the factors and strategies again we could find an order and combination that would allow us to find the best procedure to market such a product in another country.

The next issue is that there will always be different methods and strategies to present a new product. If it is possible to find a general set of steps to for such a situation, these could act as a guideline of sorts, which can then be adapted for other types of products in other markets.

Theoretical framework

The theoretical framework of this paper considers the already existing marketing strategies and methods, and applies it to this particular case. Key examples are: the consumer decision process (Blackwell, Miniard, Engel, 2006, pg 68-100) and the marketing entry strategy by (Kotler, Keller, 2009, pg 333-357). The main relevance is that these already tested and well-known methods guide us to find the most suitable one for this case. Though what should also be emphasized is that through these already existing methods, we can create a general set of steps for carrying out such plans.

The reasoning behind this is not only to find out whether expansion is needed, but also to find the most effective and accurate way to make such a decision. This is important because not all companies may be able to afford to carry out costly and long researches. Having a general guideline on what should be done for such a situation would become a useful resource for everyone.

An important aspect is to firstly define what marketing actually is; ‘an organizational function and a set of processes for creating, communicating and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders’ (Kotler, Keller, 2009, pg 45). Knowing this definition we can now incorporate it into the goal; we want to create the best management process for the ‘Mulino Bianco’ products where the concept is to expand into the Netherlands. We just defined the definition of marketing but what needs to be realized is that expanding abroad requires other skills as well. We are trying to bring already existing goods into another country, where tastes and interests may be different. The most crucial aspect is that we must know whether it is economically sound to expand or not. Then the next step is to find out what the most efficient way is to bring the product into the new market.