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I Roscilli Final Presentation
- 1. I Roscilli Frozen Mushroomsand Truffles Bradford Hosking Molly Holcombe Payton Renner Alec Gryski
- 2. Mission and Goals •Mission • “Provide transparency, quality, and innovation to a high product turnover” • Seeks to reach consumers with a strong appreciation of unique food products • Goals • Expand business to global market – USA • Introduce new branding method “gli ExPorcini”
- 3. Core Competencies • IRoscilli intends to use core competencies: • to establish themselves in the American market • to gain a competitive edge • Core Competencies 1. Offers highest quality mushrooms on the market • 48% of Italy’s market 2. Innovative packaging technique 3. Produces multiple product packages from high quality fungi and vegetables to frozen fruit varieties
- 4. The Problem • Lookingto expand business • Frozen Mushroom market in US is small • Fresh Mushrooms = 85% of market • Ready-Made meals • Consumer Education
- 5. SWOT – AmericanMarket Strengths - Strongest presence in Italian market - Good reputation among consumers - Packaging - Large client-size range - Flexible management Weaknesses - “Unsought Product” - Lack of international market experience - Lack of distribution channel access - High cost structure - Cultural & Language barrier Opportunities - Ability to shape the market - Growing interest in healthy/organic market - Don’t have to sway Americans from a preferred brand Threats - One-Step meals/lack of detail cooking - Mondelli Group is relatively unknown - Chinese importers can be cheaper - Not American-made
- 6. Market Summary -Global • Global mushroom market has shown growth in recent years, driven by: • Increasing development of high yield systems • Rising saturation in demand • Consumer shift toward value-added products • Increased demand for organic products • Health awareness
- 7. Market Summary -USA • Majority of processed mushroom imports = Chinese • Majority of fresh mushroom imports = Canada • Larger market for Fresh Mushrooms over Frozen/Preserved • America grows its mushrooms mostly in Pennsylvania • Over 40% • Majority of mushrooms are imported from other countries
- 8. Target Market • High-endgrocery stores • Upper middle class customers • American food service industry • After gaining a strong hold on retail
- 9. M Risks - Market transformationcosts - Advertising/marketing costs - Foreign exchange rates - Risks involved with diverse workforce - Health risks - Stigma and education of consumer Limitations - Lack of experience in US market - Complex transportation - Environmental constraints - Prices - Wage rates and labor availability - Food preference of U.S. Customers - Support of the industry through the USDA (minimal)
- 10. Market Forecast • Mushroompopularity is increasing • High nutritional values – Healthy/low fat • Substitute of meat • Increasing shelf life • Expected to grow at a CAGR of 9.5% between 2014-2019
- 11. Competition in theUSA • Store Brand Products • Publix, Kroger, Trader Joes, etc. • Fresh & Easy • Nestle (Buitoni frozen food brand) • Monterey • Phillips Mushroom Farms, Inc. • Giorgio Fresh Mushrooms • Pennsylvania Dutchman
- 12. Competition in theUSA • Modern Mushroom Farms, Inc. • Moonlight Mushrooms • Fungus Amongus • Dole • Gourmet Mushrooms Inc.
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- 14. Competitors in China •Dalian Xinming Food Co. Ltd. • Tianjin Kunyu International Co., Ltd. • Qingdao Sinonut International Ltd. • Greentasty Foodstuffs International Co., Ltd.
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- 18. Decision and Decision Justification •The Opportunity • Alternative Option #2 • “Discover” feature of grocery shopping • Small existing market – easily penetrable • Endorsements and Partners • Familiarity • American-made products/Celebrities
- 19. Decision and Decision Justification •Retail • Educate consumer on freshness of packaging • Emphasize “specialty food” aspect • Success in European market • Advertising and promotion
- 20. Possible Retail Clients •Whole Foods • Kroger • Sprouts Farmer’s Market • Publix • Costco
- 21. Assumptions 1. I Roscillihas the existing capital and/or the ability to come up with the capital to make the move to the US. 2. I Roscilli does not have a strong existing presence in the American market. 3. The way that I Roscilli goes about obtaining the mushrooms, packaging, and transportation is the most cost-efficient. 4. We assume that although I Roscilli has made some entrance into the US market they are still in need of an efficient and cost-effective strategy to distribute from the Italian headquarters to the desired ports and clients. 5. The mushrooms sold by I Roscilli are Porcini and Champignon; limited knowledge of specific varieties of mushrooms.
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- 23. Year 1 –Introduction Stage: Product • Product • Offer products aimed toward family-sized consumption • “I Roscilli” and “Le Valle dei Funghi” lines • Test markets
- 24. Year 1 –Introduction Stage: Packaging • Packaging • Keep innovative design – Frost-less vacuum seal • Add education • Recipes • Preparation instructions • Endorsements
- 25. Year 1 –Introduction Stage: Price • Price • Price point lower than future goal • Gain popularity • Trend • Prices escalate in winter • Competitive pricing • Biggest rivals: Monterey Mushrooms, Phillips Mushrooms, and Store Brands ($1.99-2.99) • Find a comfortable starting range
- 26. Year 1 –Introduction Stage: Place • Place • Outsource distribution capability to International distributor • Possible client: DHL – global market leader in distribution • Be aware of US Customs Import General Requirements
- 27. Year 1 –Introduction Stage: Promotion • Promotion • Cost will be at its highest • Increase customer awareness and education • Play the company’s strengths • Celebrity Endorsements • Chef Giada De Laurentiis • Chefs from Extra Virgin • Debi Mazar and her Italian husband, Gabriele Corcos • Chef from Dolce Vita • David Rocco • Television Commercial Costs • Local stations: $200-$1,500 for 30 seconds • National Stations: produced by agency for 30 seconds; $100,000-$350,000 • Preferred: Food Network, The Today Show, Good Morning America, Cooking Channel • Timeslot for when target market is most likely watching
- 28. Year 1 –Introduction Stage: Promotion • Trade shows • Average cost (per square foot) = $22.32 • Exhibit space = 28% • Exhibit Design = 12% • Show Services = 19% • Shipping = 9% • Travel & Entertainment = 21% • Promotion = 6% • Other = 5% • The bigger the exhibit, the more memorable
- 29. Year 1 –Introduction Stage: Promotion • Online Advertising • The larger the size, the larger the price • Where the ad is located on the page will affect the price • Unit CPM rates: • 728 X 90= $14.88 • 300 X 250= $16.12 • 160 X 600= $15.25 • CPM Rates = Total site revenue/total site page views x 1,000 • CPC (cost per click) • Highly trafficked sites
- 30. Year 1 –Introduction Stage: Promotion • Billboard Advertising (common roads) • Typically 14 X 48 feet for 4 weeks • 1. Albuquerque, New Mexico (adult population 680,000) • $1,200 per billboard for 7 billboards • 2. Atlanta, Georgia (adult population 4,762,000) • $2,500 per billboard for 28 billboards • 3. Ann Arbor, Michigan (adult population 268,000) • $1,500 per billboard for 3 billboards • Printing the advertisement itself (normally about 700 square feet) is about $500
- 31. Year 1 –Introduction Stage: Promotion • Grocery Store Marketing • Sample taste tests in stores • Recipe collaborations with other brands • Social media awareness • Enhance “fun” • Include coupons • Preferably digital • 75.3% of shoppers redeem coupons on their phone (2013)
- 32. Year 5 –Growth Stage: Product • I Roscilli should have a better idea of what American consumers find appealing • Adjust products accordingly • Joint ventures • Complementary goods and services • Barilla --- The US and Italy • Authentic staple food • Large range of customers • Buitoni --- US and Italy • Authenticity and good reputation/reviews • Large range of customers • Joint Ventures cont. • Store Brands • Have specials combining the brand and Roscilli product • Target grocery stores already selling the product
- 33. Year 5 –Growth Stage: Packaging • Continue with unique innovation • Improve as technology evolves • Presentation to customers • Constant quality
- 34. Year 5 –Growth Stage: Place and Promotion • Place • Assuming functionality, continue partnership with DHL • Promotion • Allocate less on education – more on advertisement • Allow for Word of Mouth
- 35. Year 10 –Maturity Stage • Use knowledge gained and innovation capabilities to: • Continue increasing presence and market share in the US Frozen Mushroom and Truffle Market • Properly place the right products, to the right place, at the right price in the US market
- 36. Outcome • I Roscillihas the ability to create a better market for the frozen mushroom industry • Education – main beginning component • Difference between frozen and fresh mushrooms • Competitiveness of market may increase
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- 38. Year 10 –Maturity Stage: Product and Packaging • Product and Packaging • Should be comfortable meeting the American consumer’s needs • Flexibility • Trends
- 39. Year 10 –Maturity Stage: Pricing • Raise the price slightly to make up for any expense • Better market share and reputation • Be aware of cannibalization of new products
- 40. Year 10 –Maturity Stage: Place and Promotion • Place • Strong partnership with distributor • Have most efficient means of transportation • See some discounts when it comes to larger rates and quantity of shipments • Promotion • Increase spending on creating new products
Editor's Notes
- #13 Pam