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Italian Market
Gallo has a long-standing history in Italy dating back to the 19th century; and for good reason. From a marketing standpoint, Italy is the source of two very important market elements: a (significant) growth market and a dependable, though not too exciting “base” market (cash cow). Italy’s domestic consumption of rice is very similar to the U. ... Because rice is a staple in the Italian diet, 95% of milled rice is for direct food use vs. ... Rice is a major crop in Italy. In 1991, 320,000 tons of rice was sold via food service establishments (21%) and grocery stores( 79%). The fact that 98% of the population used rice in various forms indicates the market is saturated. Gallo was the overall market leader, possessing 21% share of total retail rice volume in 1991 comprising of white rice (85%) and par-boiled rice (15%).
Competition
The most significant competitor for Gallo was Flora, a French food conglomerate that marketed par-boiled rice exclusively. Flora competed directly with Gallo’s par-boiled "Blond" line. ... Local and regional rice millers were selling under their own brand names at an increasing rate. In 1991, private labels as a group had equal share in Italy’s white rice market as Gallo, 17. ...
One other, less significant competitor, Scotti was a regional, family owned firm that offered only white rice products. ... In addition to that, acquisition of Scotti (by a competitor) could be used as an avenue for a new market entrant or for Flora, who currently has no basic white rice products in their portfolio. ...
Distribution Strategy
Gallo products were carried in stores accounting for 80% of grocery sales in Italy. No other brand had this amount of exposure; yet Gallo had no company sales force.
Approximate Word count = 1432
Approximate Pages = 5.7
(250 words per page double spaced)
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