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Gallo Rice

1. F&P Gruppo can be described as “the rice specialist” and one of the only a few companies involved in the entire process. The company is producing only rice which means greater concentration to the product compared to other companies. The company is trying to achieve market share leadership by bringing differentiated, higher margin products to an increasingly segmented marketplace through various research and development activities of new and improved strains if high-quality rice, proprietary manufacturing processes, and packaging. A considerable amount of the profits are reinvested in R&D activities which ensures the strategy of obtaining 35% - 40% of total gross margin from products that were not in the product line five years before. Also, the brand name and the rooster logo were used consistently across geographic markets and product lines which bring great brand awareness. As a result of these activities the high-end products delivered to the company as much as 50 times the profit margin achievable through the sale of the same quantity of bulk rice.

2. In Italian retail rice market which was fragmented with many local and regional millers selling under their own brand names, Gallo products accounted for 21% of


3. At the first sight, Italian and Argentine markets seem to be very similar according to their breakdown of rice consumption whereas in Poland, there is a straight dominance of regular milled white rice in retail sales (95% in Poland whereas 80% in Argentina and Italy). Italian market is under the control of major brands and therefore less segmented compared to Argentina where national brands accounted for only 45% of total retail sales. Also in Poland market, 95% of the market was unbranded. Italian and Argentine consumers are aware of the different usage areas and products types for rice whereas in Poland, consumers are not very much aware of different rice products. Since this is the case, Gallo is trying to increase the awareness of the consumers by airing TV commercials showing how to cook different Gallo products. In Italy, the TV commercials are mainly focusing on the high-touch of the product not the usage patterns.

In Poland rice market 95% of the market was under the control of unbranded, white rice, packaged in paper bags. Gallo held less than 1% volume share and sold in 200 Pewex shops with the main competitor being the “Uncle Ben’s” which had penetrated 90% of the supermarket and grocery outlets in Warsaw in just over a year. The Gallo brand was available in 200 supermarkets and upscale grocery stores, which acc

Some topics in this essay:
F&P Gruppo, Italy TV, Grandi Risi, Warsaw Gallo, Italian Argentine, Gallo Quick, Italy Italian, Integral Risotto, Buenos Aires, rice market, italian consumers, poland market, gallo products, argentine consumers, sales volume, rooster logo, , research development activities, italian market, rice products, brand awareness, market 95% market, sales volume respectively, 1991 products lines, marketing program gallo,

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Approximate Word count = 904
Approximate Pages = 4 (250 words per page double spaced)


  

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