ALE 5B

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ALE 5B

Market penetration

Research and development teams drawn from the organization conduct this activity with an aim of understanding the market functionality and the existence and lack thereof of demand for food. This is evidient in the entity’s program “Barilla Good4 – Start up the future” to develop innovative and creative solutions for the consumers.

Product development

New product development is a high priority and sensitive issue given that it enables the entity to market aggressively its existence and continued efforts towards product and service excellence in the food industry.

Market development

Finding new markets is effective and integral for the entity as it seeks to achieve global excellence in new markets marked by the reduction of trade barriers. New and existing emerging economies provide an important segment for the entity in terms of new opportunities for the entity’s goods and services.

Forward integration

The entity achieves this by direct marketing and sales of products to consumers rather than the use of intermediaries and distributors. It provides the entity with an avenue for direct interactions and engagement with consumers and at the same time enabling it to influence its distribution strategies for optimized service and product access for the clients.

Related diversification

Diversification in new products and services as well as management of its portfolio in terms of its investments in new markets is informed by the need to spread risk of operating in similar natured markets and identical products and services. This enables the entity to achieve differentiation from its competitors in the food industry. This is evidient by the number of subsidiaries owned such as Voiello, Pavesi, Mulino Bianco, Academia Barilla, and Wasa among others.

Divestiture

The entity has been able to close unsuccessful business units and segments through withdrawal of unsuccessful products in the market by developing new services and products to meet evolving consumer needs, wants and preferences in the market.

Retrenchment

This may be used by the organization to reduce its labor force as a means of eliminating unwanted labor and reduction of costs of labor and production.