Marketing Case Analysis: Barilla Spa

COURSE - MARKETING-II

Barilla Spa (A) (Case Analysis)

Submitted By

Group 07

Section B

2014PGP170 KRATTIKA MISHRA

2014PGP202 MEGHA GUPTA

2014PGP327 SAORABH JEET DAGAR

2014PGP057 ARCHANA

2014PGP132 HASHIM C M

2014PGP435 TIRLANGI SANTOSH KUMAR

2014PGP160 KASTURI BEHERA

2014FPM013 VAISHALI GARG

Case Facts:

Barilla Spa is the world’s largest Pasta producer with a large vertically integrated corporation with flour mills, pasta plants, and bakery product factories located throughout Italy. They produce a variety of pastas with many SKUs and keep innovating by introducing newer variety of pastas and other products. They portray their brand as a high quality product using innovative

There can be various reasons for this highly fluctuating demand,

• Volume discounts were provided while ordering in large quantities (1000 liter/carton discount was offered to a buyer purchasing a minimum of three truck loads of Barilla egg pasta).

• Promotional activities like the canvass periods where distributors could buy as much product as desired to meet current and future needs also can lead to fluctuations.

• There were no fixed minimum or maximum order quantities. This could have led to the distributors ordering in varying quantities.

• There was a variety of new types of pastas that were introduced regularly and this could have been a cause of varying demand with distributors ordering the new variety with the existing

Some of the advantages of JITD are:

• JITD makes to reduce the inventory at distributors’ location since it builds inventory at central location and then delivers according to the demand by. It eliminates the needs for each distributor to hold its own buffer which causes demand fluctuation. Therefore, it benefits the distributors through releasing their inventories space and cost.

• JITD implies quick response. Since the inventory data and delivery pattern are controlled by Barilla, their central factory and CDCs are therefore easier to schedule their production and deliveries to meet the customer demand.

• Barilla has long changeover time to setup for another product. The less interruption and the more is the cost-efficient. This is also true for distribution cost. In contrast to the fluctuating due to unknown situations in the past, a better delivery schedule could be constructed by using complete data obtained from the end-users.

Limitations of implementation of JITD:

• If Barrila reduces the inventory from the distributors, supposing that the total inventory of the whole supply chain is fixed, it has to then increase its central inventory to meet