Mutti Case Study

Terrance Hampton

MKT 501

Case Analysis

Define Problem

How should Mutti S.P.A. focus its growth efforts; should it expand globally or look to continue to grow domestically in Italy?

Decision Factors

Grow Domestically

1. Assumes that Italian consumers value quality of tomatoes more than consumers in other international markets.

2. Assumes that younger Italians will continue to value premium tomatoe prodcuts like previous generations

3. Assumes that climate in Italy will stay steady, and not significantly disrupt tomato production.

4. Assumes that current tradition and culture of company are important to its image.

Expand Globally

1. Assumes that international export and distribution of Mutti product would not alter the quality of the product

2. Assumes that consumers and retailers will see Mutti as a top global brand

3. Assumes that consumers in other markets will pay more for a higher quality bad

4. Assumes global consumers perceive Italian tomatoes to be of higher quality

Outsource Brand Globally

1. Assumes that Mutti brand is associated with quality globally

2. Assumes that processed tomatoes are seen as commodities abroad.

Relevant Information

Competitors

• Domestically Mutti is leading in market share in all categories except puree.

• Market leaders are smaller brands and store brands.

• Mutti recently passed CIRIO in leading in market sure for Passata

• Internationally store level brands are main competitor to Mutti

Customers

• 52% of domestic buyers look out for bargains

• Consumers see processed tomatoes as a commodity

• Internationally Mutti has strong presence in food service market due to being seen as high quality by food preparers

• Consumers do not see Italian cuisine as “high class”

Retailers

• Strategic partnership