Barilla 3rd Deliverable

Vipin Punna

Ekaterina Shichkova

Matthieu Hilton

KEDGE Business School

International Marketing (Case Studies)

Ernesto TAPIA MOORE

The introduction of Barilla Croccante into the global snack market represents a carefully crafted strategy

that leverages the capabilities of Barilla's existing manufacturing and distribution networks, while also

considering the challenges presented by different barrier categories. This initiative is underpinned by a

commitment to maintain the high-quality standards that are a hallmark of the Barilla brand, all the while

navigating the complex landscape of global production and distribution to optimize profitability,

sustainability, and consumer appeal.

Geographic

Geographically, the production strategy for Croccante is designed to capitalize on Barilla's robust global

infrastructure. By situating manufacturing operations in regions known for their cost-effective labor and

operational expenses, Barilla aims to enhance its profit margins significantly. This strategic decision does

not only pertain to financial metrics; it is also a conscious effort to minimize the ecological footprint of

Croccante's production, making the product not just competitively priced but also environmentally

responsible. This approach aligns with the growing consumer demand for sustainable products. To hedge

against potential vulnerabilities, such as over-reliance on certain geographies for raw materials or the risk

of supply chain disruptions due to geopolitical tensions or natural disasters, Barilla plans to diversify its

supply chain. By engaging suppliers from a variety of regions, Barilla ensures a consistent and secure

supply of high-quality ingredients, thus safeguarding the production process against unforeseen global

events.

Cultural

Culturally, Croccante is positioned to capture the hearts and palates of a global audience by drawing

deeply from Italy's rich culinary heritage. The product leverages the universal appeal of Italian cuisine,

with flavor profiles such as Tomato & Basil, Garlic Parmesan, and Roasted Red Pepper designed to evoke

the essence of Italy's gastronomic tradition. This cultural appeal is crucial, as it taps into the consumer's
desire for authentic, flavorful snacks that offer a taste of Italy's renowned culinary landscape. Moreover,

Croccante addresses the burgeoning consumer trend towards healthier snacking options, with its baked

nature and the inclusion of whole grain, plant-based, and protein-enriched varieties catering to a health-

conscious audience. Recognizing the diversity of taste preferences across different cultures, Barilla is

committed to expanding its flavor offerings to include region-specific tastes. This strategy not only

ensures that Croccante is adaptable to various markets but also signifies Barilla's dedication to respecting

and incorporating local culinary traditions into its product lineup. Extensive market research and

consumer testing across different demographics will play a pivotal role in this endeavor, ensuring that

Croccante's flavors are both authentic and appealing to a wide range of consumers.

Tariffs & Tax

Navigating the complexities of tariffs and international trade regulations is another critical aspect of

Croccante's market introduction strategy. By strategically choosing production and distribution centers in

regions that benefit from favorable trade agreements and lower tariffs, Barilla aims to mitigate the costs

associated with the global movement of goods. This careful planning is expected to enhance Croccante's

competitive edge in international markets by making it more price-accessible to consumers worldwide. In

an effort to further offset the impact of tariffs and trade barriers, Barilla is exploring opportunities for

local ingredient sourcing and the establishment of production facilities in key markets. This approach not

only reduces dependence on imported materials, potentially subject to fluctuating tariffs, but also ensures

smoother and more efficient distribution channels, enhancing Croccante's market responsiveness.

Fiscal

Fiscal barriers, including tariffs, taxes, and trade regulations, can significantly impact the cost structure

and pricing strategy of launching a product like Croccante in international markets. To use fiscal barriers

to our advantage, we can explore manufacturing or sourcing ingredients locally in key markets to

minimize tariffs and benefit from potential tax incentives for local production. This approach not only
reduces logistical costs but also aligns with consumer preferences for locally made products, enhancing

the brand image as supportive of local economies. Additionally, understanding the fiscal landscape allows

us to adjust our pricing strategy to remain competitive while ensuring profitability. In markets where

fiscal barriers cannot be turned to an advantage, diversifying the product range to include premium

options can help maintain the brand’s perceived value, allowing us to absorb higher costs without

significantly impacting the consumer’s perception of the brand. This segmentation strategy helps hedge

against the negative impacts of fiscal barriers by targeting different consumer segments based on their

willingness to pay.

Currency

Currency fluctuations can pose a risk to international pricing strategies and profit margins. To benefit

from currency barriers, we can implement a dynamic pricing strategy that adjusts to currency valuations,

protecting against unfavorable shifts. Engaging in currency hedging can also mitigate risks by locking in

exchange rates for critical transactions. Furthermore, by keeping a portion of our revenue in stable

currencies or investing in countries with stronger economic indicators, we can safeguard our earnings

from currency devaluation in volatile markets. Where benefits from currency barriers are limited,

emphasizing the brand’s value through quality and unique product offerings can justify premium pricing,

helping to buffer the impact of currency-induced cost variations. This approach ensures that the brand

maintains its prestigious image, regardless of currency volatility, by focusing on the intrinsic value

Croccante brings to consumers.

Political

Political barriers, including changes in trade policies and regulatory environments, can significantly affect

market entry strategies and operational costs. To navigate these barriers, establishing strong relationships

with local governments and regulatory bodies can provide insights and access to favorable conditions for

market entry and expansion. Leveraging these relationships can also aid in advocating for policy changes
that benefit the industry and our product category. Additionally, adapting our business model to align

with local regulations and political climates can turn potential barriers into opportunities for market

differentiation and leadership. In scenarios where political barriers pose significant challenges, focusing

on markets with stable political environments or those with free trade agreements can hedge against

political risk. Building a resilient supply chain that can adapt to sudden policy changes ensures continuity

of operations, preserving the brand’s reliability and image in the face of political uncertainty.

Legal

Barilla can actively monitor changes in legal requirements related to food production and strictly adhere

to these regulations. This can help reduce the risks of negative consequences such as fines or lawsuits.

Additionally, maintaining high-quality standards for products can be used to draw consumer attention to

the Croccante brand and strengthen its reputation. Also, Barilla can participate in public consultations for

the development of new rules and standards in the food industry. By engaging with regulatory authorities

and contributing insights from its expertise, Barilla can help shape regulations in a way that aligns with its

business objectives and product offerings, thus reducing compliance burdens and potentially gaining

competitive advantages. Barilla can establish strategic partnerships with industry associations, consumer

advocacy groups, and other stakeholders to advocate for regulatory frameworks that support its business

interests. Collaborating with like-minded organizations can amplify Barilla's voice in regulatory

discussions and increase its influence over policy decisions, helping to create a more favorable legal

environment for Croccante and other products. Barilla should continuously monitor changes in legal

requirements and industry trends to proactively adapt its strategies and operations. By staying ahead of

regulatory developments, Barilla can identify potential compliance risks early on and implement

appropriate measures to address them, minimizing disruptions to its business and maintaining its

competitive edge in the market.

These strategies aim to not only mitigate the risks posed by legal barriers but also capitalize on them to

strengthen the position of the Croccante brand within Barilla's product portfolio.
Standards

Barilla should ensure strict compliance with all relevant standards and regulations governing food

production, safety, and quality. This includes staying updated on any changes or updates to standards and

implementing necessary adjustments to meet or exceed them. Also, Barilla can invest in research and

development to innovate and develop products that not only meet existing standards but also anticipate

future requirements. By staying ahead of regulatory changes, Barilla can position Croccante as a leader in

compliance and quality within its market segment. Moreover, Barilla can collaborate with industry

associations, regulatory bodies, and other stakeholders to influence the development of standards in a way

that aligns with its business goals. By actively participating in standard-setting processes, Barilla can help

shape regulations that are favorable to Croccante and its product line. Barilla should maintain transparent

communication with consumers regarding its adherence to standards and commitment to product quality

and safety. This can include providing clear labeling and product information to educate consumers about

Croccante's compliance with relevant standards, thereby building trust and confidence in the brand.

Barilla can use its compliance with high standards as a point of differentiation in the market. By

emphasizing Croccante's adherence to rigorous standards and certifications, Barilla can position the

product as a premium offering with superior quality and safety compared to competitors.

Conclusion

In summary, the successful introduction of Barilla Croccante to the snack market is predicated on a

holistic strategy that carefully considers the eight discussed barrier categories. This comprehensive

approach, which balances the dynamics of global market trends with the preferences and expectations of

local consumers, is poised to position Barilla at the forefront of the snack industry. Through Croccante,

Barilla aims to redefine the snacking experience, offering consumers around the world a nutritious, tasty,
 and inventively Italian-inspired snack option. This strategic initiative not only seeks to meet the current

demand for healthier snack alternatives but also to promote growth and innovation within Barilla,

solidifying its reputation as a leader in delivering nutritious, flavorful Italian products to a global

audience.

References

Dani, S. (2021). Food Supply Chain Management and logistics: Understanding the challenges of production,
operation and sustainability in the Food Industry. Kogan Page.
Snack food industry - size, share, trends, analysis. Snack Food Industry - Size, Share, Trends, Analysis. (n.d.).
https://www.mordorintelligence.com/industry-reports/snack-food-market

Eugster, J., Ms. Florence Jaumotte, Ms. Margaux MacDonald, & Mr. Roberto Piazza. (2022). The Effect

of Tariffs in Global Value Chains. International Monetary Fund.