Cicconi Matteo

Novati Giorgio Alberto Fabrizio

PRINCIPLES OF
MANAGEMENT
Corvinus University of Budapest
Faculty of Food and Science

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 TABLE OF CONTENTS

 Introduction page 3

 Situation Analysis page 4

 Marketing Analysis page 7

 The function of the managers

page 11

 Campaign Objectives
page 15

 Campaign Plan page 16

 Campaign Evaluation page
21

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 INTRODUCTION
In this report, there are some explanations about Management and more especially about
Principles of management.
What is Management? Management is the process of designing and maintaining an
environment in which individuals, working together in groups, efficiently accomplish
selected aims. This basic definition needs to be expanded: 1) as managers, people carry
out the managerial functions of planning, organizing, staffing, leading, and controlling; 2)
management applies to any kind of organization; 3) it applies to managers at all
organization levels; 4) the aim of all managers is the same: to create a surplus; 5)
managing is concerned with productivity (this implies effectiveness efficiency).
Like that we are going to talk about Barilla company (not in all of its size and greatness
since it would been impossible to report in a presentation) in relation to the birth of a
campaign for a new product line called “Essere sapore e salute”, introduced in 1995 in
Italy, one of the major reason for the financial success of these years.
We intend to examine and compare our peack company and more in the specific the new
product line: “Essere sapore e salute” in the German market.

The report contains the following key-points in order to give a comprehensible

structure and consequently a good communication plan of the product line “Essere”:

• Situation Analysis
• Marketing Analysis
• Campaign objectives
• Campaign plan
• Campaign evaluation

The situation analysis gives an internal and external view of the chosen company
and provides the reader with a general knowledge to understand the marketing
analysis and the campaign plan.

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 SITUATION ANALYSIS

History of Barilla and Mulino Bianco

Barilla was founded in 1875 by Pietro Barilla. The bread and pasta shop in Parma
produced 50 kilos of pasta every day. 33 years later he grounded an industry with 80
people and a production of more than 80 metric tons of pasta per day.
In 1952 the production of bread was given up to focus on pasta and to increase its quality.
The campaign of the sixties with the slogan “Con Pasta Barilla é sempre Domenica”
(with Barilla pasta it is always Sunday) won the price “Palma d´Oro della Pubblicitá” and
made the brand popular all over Italy. A wide distribution net with relative low prices
brought Barilla in almost every household.
In 1971 the American multinational W.R. Grace & Co of New York bought the majority of
shares of Barilla. The American company wanted Barilla to commercialize its products and
to diversify from other brands.
The new products should:

• have a low possibility of competition

• have a possibility of a high income and of growth equal to the pasta Barilla
• be made of corn as their main source
• use the strength of the companies logistics, selling and marketing methods
• use the distribution channel of the pasta Barilla

In the end of the year 1973 the American company agreed with the introduction of bakery
products and of a new brand name. This name should be kept also for other product lines
such as grissini, crackers, cakes and snacks.
As one of the aims of Barilla was to produce traditional, almost “hand made” biscuits, the
name had to evoke a traditional picture. Several analysis came to the conclusion that a
name with a traditional logo and package could keep the image of “hand made” biscuits.
A poster of the 70ies which showed the “farina Bianca Barilla” (white farina of Barilla) used
the slogan “…fresca di Mulino” (fresh from the mill).
The union of the two concepts finally made the name “Mulino Bianco” (white mill).
In 1979 Barilla was rebought by the Italian family and since 1993 the company is led
successfully by the three Barilla brothers Guido, Luca and Paolo Barilla.

Barilla products Mulino Bianco

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Size and sector
The Barilla group consists of more than 30 companies all over Italy and in other countries
with a total of 8.500 employees.
Barilla directly manages 7 mills which supply 70% of all the raw material the company
needs. The 2 most important brands of the Group are Barilla for pasta and Mulino Bianco
for bakery products.
Other important brands are:

• Voiello, Panem, Pavesi, Tre Marie in Italy

• Rio in Spain
• Misko in Greece

In the bakery products sector the Group is the largest in Italy and the third largest in
Europe with the brands Mulino Bianco, Panem, Pavesi and Tre Marie.
From a market share of 28,5% (in Italy) in 1990, Mulino Bianco had a market share of 36%
in 1996. Until 1999 the market share increased another 2,8%, even if some segments had
a better dynamic: cereals of 12,1%, soft bread of 11,2%, snacks of 8% and biscuits of 5%.
This result was reached by eliminating some items which were no longer productive,
by improving the main products (pillar products) and by launching new products.
Barilla built a communication system which reintroduced the successful historical values
and invested in media.

Competitors
The main competitors of bakery light products in the German market are:

• Schneekoppe, which is the leader with a market share of 43,3%

• Kraft with its products Lunchables and Handi Snack. Kraft has a market share of 5,1%.
• Reformhaus, where 11,6% of the turnover were achieved with diet products.
Reformhaus has a market share of 15,2%
• The others with a market share of 36,4%

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As the report deals with the best way of mixing the communication tools for the
introduction of the product line “Essere” in the German market, we’ve decided to focus
only on these products. The report will therefore go only into information concerning the
above named product line.

Products or product line “Essere sapore e salute”

The product line “Essere Sapore & Salute” comprises many different products as:

• biscuits of rice and milk,

• merenda pan di spagna,
• frollini and cereals of malt,
• cereals of honey and fruits,
• sweets of cacao and crème of nuts,
• crackers,
• grissini,
• plumcake,
• cakes

All these products are characterized by a low level of fat and sugar and by new taste
combinations. The fat has been diminished by 30-50%.
Following the recommendations of the nutritionists, Mulino Bianco has developed new
knowledge and technological methods to fill the new needs of the consumer.
Attention has been paid to the package which illustrates the characteristics of composition
and the use of the product.

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 MARKETING ANALYSIS

Market analysis
The GEA, an Italian company of consultation, made a segmentation of the bakery market
in Germany, analysing the consumer behaviour, the reason for their consumption and the
preferred ingredients of the products. It resulted that 20% of the German consumers ate
“frollini” (a biscuit type) or similar biscuits during the midmorning.

Further researches (made by the journal “Food”) came to the result, that the advertising of
Mulino Bianco is known to 9,5% and the brand itself to 21% of the German population.
People between 14 and 24 (male 13,9%, female 18,2%) were those who achieved the
best results.

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Comparing this situation to the hierarchy of communication effects, these people already
passed from the stage of awareness to knowledge, liking and also to preference.
The research didn’t consider whether the interviewees also were consumers and therefore
at the stage of purchase, but presumably most of them did at least once.

Even if, according to the model “hierarchy of needs” of Maslow aesthetic needs are at the
end of the importance ladder, the market of diet products has been expanding over the
past years as more than 20 Million people suffer from adipositas in Germany.

20% of the German youth are overweight. Every 5th child has an overweight of more than
10% and every 11th of more than 20%.
Most women are influenced by advertisings showing models with “dream bodies” and start
consuming products with less calories and fat.

The Mediterranean diet includes a high consume of cereals, vegetables, fruit and olive oil.
The Italian breakfast with milk, coffee, bakery products and fruits is considered by many
nutrition experts to be the best alimentary way to start the day.

Breakfast should contain 20% of the daily calories, as the body needs to recover from
about eight hours without energy. Analysis proofed that pupils performed better after an
extensive breakfast, but still 1/3 of the children aren’t used to eat in the morning.

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The German breakfast including eggs, ham and butter has been criticized a lot over the
last years because of the high amount of fat and animal proteins.

Segmentation and targeting

Even if there are many different ways of segmentation (e.g. demographic, geographic,
geodemographic and psychoanalytic), the Mulino Bianco products can not be targeted to a
specific group as everyone is a potential consumer.
The product line “Essere” is addressed to people with weight problems who do not want to
renounce to taste, to those who cannot eat high quantity of sugar and fat for health
reasons (e.g. diabetics) and to those who prefer less sweet and healthy products.
The average consumer is female and between 15-40 years old.

Demand fluctuations
In this section we are going to examine two important topics: variability in demand and
bullwhip effect.
Variability in demand

•Methods employed to counter variability •Impact

− holding buffer Fgs to meet Distributor – strained manufacturings and logistics
requirements operations
− asking distributors/retailers to carry – poor product delivery management
additional inventory – thinning retailer/distributor margins
– increased inventory Holding costs
– impossible to
anticipate Demand swings
– changing costumer due to lack of
storage space

Bullwhip effect
The bullwhip effect is an observed phenomenon in forecast-driven distribution channel.
The concept has its roots in J. Forrester's Industrial Dynamics (1961) and thus it is also
known as the Forrester Effect. Since the oscillating demand magnification upstream a
supply chain reminds someone of a cracking whip it became famous as the Bullwhip
Effect. Because customer demand is rarely perfectly stable, business must forecast
demand in order to properly position inventory and other resources. Forecasts are based
on statistics, and they are rarely perfectly accurate. Because forecast errors are a given,
companies often carry an inventory buffer called "safety stock".

wholesal
Factory distributor
retailer
er
The graphic shows us an am amplified variation in demand as one moves up the Supply
Chain (away from the costumer).

Product positioning
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Analysing the product life cycle, the Barilla products (pasta, sauces) are in the maturity
stage, while the Essere products in Italy are growing in popularity and can therefore be
positioned in the growth stage. The product line Essere in Germany has not been
introduced in the market yet and therefore is in the introduction stage.
As the word “Essere” may not have a special meaning for the Germans, the product line
should be named “Vitalitá”.

The following figures illustrates the differen stages:

Integration and corporate identity

Advertising and the high amount of messages are beginning to irritate the consumer,
integration has therefore the task of reducing the ambiguities and to make the brand
recognizable in different countries and mass media.
Mulino Bianco has built a corporate identity with the logo, the package form and the
colours used, as well as with the messages, which have remained unchanged over the
years.
The line “Vitalitá” should be recognizable from the package, which in Italy is green with the
name “Essere” in white and “Sapore & Salute” also white but on a blue underground.
The colours are so bright, that they can be seen from a big distance and differentiate the
products from an overcrowded market.
Green is used to denote an environmental orientation and natural ingredients; blue to
signal freshness and white to symbolize purity and cleanness.
These colours should be kept also when introducing the products in the German market.
Also the advertisings should contain the same colours and writing styles to create an
instant consumer recognition.

The principles of the Barilla communication were and should also be in future:

• transparency: the messages have to be sincere, true and they mustn’t hide critical
aspects
• concreteness and constructivism: the messages have to be realistic
• individual responsibility: the messages have to coinvolve and responsabilise the
people

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• orientation to changes: the messages have to evolve the culture of the company in
order to promote the necessary quality and therefore respond to the changes of the
environment.

The naturalness on the cultural and alimentary level was one of the main reasons for
the success of Mulino Bianco. These elements should therefore be kept and adjusted
to the new needs of the consumers and to the new market.
Every advertising should include the following elements which remind of naturalness
and of Mulino Bianco:

• the simplicity of life (harmony, happiness, spontaneity)

• the family relationships (feelings, openness to the world)
• the nature (respect for the world, relationship with the nature)
• the naturalness of the biscuits (irregular form of the biscuits, natural ingredients)
• the health effect of the biscuits (low fat and sugar)

The press advertising for example should:

• focus on the “happy family” which consumes breakfast together in harmony.

• Use the typical headline “The Italian breakfast. The right way of beginning the day” which
remembers of Mulino Bianco and of Italy
• Use the same sentences which explain the headline also on TV and on radio as for
example “The breakfast covers 20% of the daily needs, that’s about 400 calories. The best
in the morning are bakery products, milk and coffee.
Or “Making breakfast in the right way prevents from getting out at the wrong station”,
or “a complete Breakfast helps you to move faster”
• Use “professionals” (doctors, dietologists) to make the message believable
• Use the logo, the typical colours (green, blue, yellow and red)

In this way all the advertisings in newspapers, magazines and on billboards would
have the same elements and keep the corporate identity.

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 THE FUNCTION OF MANAGERS
The function of managers provide a useful framework for organizing management
knowledge. There have been no new ideas, research findings, or techniques that cannot
readily be placed in the classification of planning, organizing, staffing, leading and
controlling.

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Planning
Planning involves selecting missions, objectives and the actions to achieve them; it is a
management function, concerned with defining goals for future organizational performance
and deciding on the tasks and resources to be used in order to attain those goals.
There are various types of plans but before a decision is made, all that exists is a planning
studies, an analysis, or a proposal; there is no a real plan.
In the barilla case (and in all the most important italian companies) there is a scrupulous
selection, and the following choice about the people that will recover management role
concerning the future of the company.
The same people that in the years of work and in their professional career, they will have
to make refresher course and specialization due to markets change and costumer's
wishes. Only in this way they always will make the right decisions consistent with the
company goals.
In the previous years at the trow of our line “Essere sapore e salute” were value some
business plans brought by various people, in that circumstance opponents both of them,
who had to conquer with innovative ideas, experience, credibility of the plan and others
requirements the Barilla group. The interesting theme is that every business plans
presented a survey done among the common people where it asked to the consumers if
they were favourable at the trow of a product like this.
This is an important element in the Planning phase because if the comsumer's answears
were negative for the major part of them, the original idea would been reject away.

Organizing
Organizing is that part of managing that involves establishing an international stracture of
roles for people to fill in an organization. It is intentional in the sense of making sure that all
the tasks necessary to accomplish goals are assigned and, it is hoped, assigned to people
who can do them best.
Altought the structure must define the tasks to be done, the roles so established must also
be designed in the light of the abilities and motivations of the people available.
Designing on effective organization structure is not an easy managerial task.
Organize the work and the practices innovative.
In this section we talk about the Barilla's Factory localized near Parma, a city in the
middle-nord of Italy famous everywhere for his tipical food.
The most important characteristic is the managament about the organizational flexibility
that has direct an indirect aspect both in the work factor and the competitiveness of the
company.
Big attention is dedicated to the work organization,the technoligical innovations ,and the
management of the internal market of work.
The organization of the production is based on work shift that use the 60% of the workers.

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The production is by cycle partially continuos 6 days on 7, and concern all the production
line of Barilla; the industrial plant are characterize from high rigidity against way of work
flexibility.
In the barilla weaving factory is diveded into groups of work, quality control, just in time,
rotation of task and management of quality.
More then 50% of Barilla employees are involved in these organizational practice, with the
focus to bring it at 100%.
The main changes adopted by the company both on the organizational level and in the
technological level, were on the employees professionalism.
The vocational training rapresents the most important resource for the competitiveness of
the company and is the main tool of human resource management;all the barilla workers
are specialized.
Skills and capabilities development take place cross the job training based on internal
courses of formation for skilled workers and new employees.
Another important element of this section is “jintd”. What is this? Jintd is the abbreviation of
Just In Time Distribution; it is an inventory strategy implemented to improve the return on
investment of a business by reducing in-process inventory and its associated carrying
costs. About the logistical situation the Barilla company uses the just in time procedure.
Now we are going to analyzing the main charateristics of the just in time distribution in our
case:

• Vendor-managed Inventory Cocept

• Treats end-customer as the input

• Aims at managing the input filter that produces the orders

• Decision-making authority for determining shipments in hands of Barilla SpA

• Barilla would monitor the flow of its products through the distributor's warehouse, and
then decide what to ship to the distributor and when to ship it.

Staffing
When we talk about “staffing” we have to focalize our attention on the choice of the people
and above all on the analysis utilize for the choiche and employment of the staff, the
structure of career courses and the exits like resignations and dismissals of the workers.
Barilla examins the employment of the staff on placement and motivations of the people.
The information given concern especially specialize employees and skilled workers.
The most important motivation about the employment of the workers are: research of a
numeric flexibility to back it about a temporary increase of the productive activity and about
the increase of the output demand; voluntary resignations of the employees; the
introduction of a new product/process (like our line “Essere sapore e salute”).

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The necessity of new competences emerges above all in the sector of our line “Essere
sapore e salute” where Barilla demands high specialization of the worker for a specific
product.

Leading
Leading is the influencing of people so that they will contribute to organization and group
goals. All managers would agree that their most important problems arise from people and
that effective managers also need to be effective leaders.
The relation that exist between delegation and employees in Barilla is very important and
we saw how it is an important advisory activity on the organization of work that .
in the strategic decision of the company the employees shows a low interest and not
happens kind of involvement.
In Barilla prevailinformativ modality and happens a lot of contestation from workers against
representation.

Controlling
If in the staffing we saw how Barilla requires high specialization for employees in particular
for the production line of "Essere Sapore e Salute", here we will see the same thing.
Controlling is the measuring and correcting of activities of subordinates to ensure that
events conform to plans.
It measures performance against goals and plans, shows where negative directions
exist,and, by putting in motion actions to correct deviaton, help ensure accomplishment of
plans.
Only the skills of specialized employees (like the Barilla ones), allow to have a wide vision
of the company situation to understand if their stragetic choice adopted will be succesfull.
Barilla with the product line "essere sapore & Salute" invest much money of their budget in
the human resarch, know-how, know-what and in this way staff have to be able to identify
which one of the 3 resarch is more or less developed compared to the others.
Controlling in Barilla is also the autority of the leaders on the other employees, necessary
step to improve performance.
In Barilla there is one person more specialized that controll 9 workers.
This one is the Barilla's company policy that was adopted since 1986 and also we have
found an interview of Paolo Barilla that he said: "One qualify person can direct 9 workers.
Because we believe that is the maximum number of people that a man can controll in job
context specialize like ours".
Outcomes are controlled by controlling what people do.

CAMPAIGN OBJECTIVES
Marketing objectives have to be set before deciding the marketing strategy and afterwards
the marketing plan (decisions concerning the product, the price, the place and the
promotion- advertising, sales promotion, public relations, personal selling).
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A successful company has to translate the following stages into action:

The decisions on price, product, promotion and distribution are important controllable
marketing variables which have to be included into a communication concept.

The mission of the company is “to contribute to people’s health by offering high quality and
nutritionally balanced products”.

The campaign has the following mix of aims:

• Image building: the brand Mulino Bianco already has a high status and a wide spread
distribution in Germany. The campaign aims at attracting people to the healthy, fat- and
sugarless but still tasteful products of “Vitalitá”.
• Corporate Identity: keep the corporate identity of Mulino Bianco in order to make the
products recognizable among others.
• Product differentiation: promote the unique selling proposition which lies in the
naturalness and quality of the raw materials.
• Awareness: achieve an awareness of 15% after one year of advertising, promotion and
sponsorship among the target group.
• Market share: 5% in the first year

CAMPAIGN PLAN
Campaign strategy
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• investments in research, innovation, new technologies, environment and in health
protection,
• efficient communication policy,
• sell products with a superior quality at a good value,
• client satisfaction by meeting the changing needs of the customers by involving them at
every stage of research and development process,
• adapt the products to local tastes and habits and still maintain the “authentic Italian
brand” characteristics.

The marketing communications plan contains the elements of the promotional mix, which
is “The specific combination of ingredient an organisation uses to promote a product,
traditionally including four ingredients: advertising, personal selling, public relations and
sales promotion.”

The following model of communication explains how interruptions might disturb the
communication:

As messages can easily be transformed and distorted by the media, it is important for the
company Barilla to keep the communication with the consumer as clear as possible and to
give him all the required information about the products.
Miscommunication (implication, distortion, disruption, confusion, misunderstanding and
personal transformation) can happen easily and have to be avoided.

As the product line “Vitalitá” has not been introduced in Germany there is a general brand
ignorance which, according to the hierarchy of communication effects, has to be
transformed into awareness, knowledge, liking, preference, conviction and finally in
purchase. Not every stage has necessarily to be passed by the consumers.
Advertising
Advertising is a paid form of non-personal communication about an organisation and its
products that is transmitted to a target audience through a mass medium such as TV,
radio, newspaper, magazines, direct mail, public transport, outdoor display or catalogues.

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Print advertising
Press advertisings have the advantage of being permanent(especially the magazines
which are kept longer than newspapers), they can be re-read or read slowly, while TV or
cinema ads just pass by.
As print advertising is one of the most efficient ways of reaching the German consumers,
the costs of the campaign are mainly distributed within the elements of this mass medium
(approximately 50%).
Advertising of “Vitalitá” should appear in the Bildzeitung (target: men, 25-70, low
education) with a nationwide diffusion and in the following periodical papers:

• Amica (target: women, 15-30, average education)

• Brigitte (target: women, 20-49, average education)
• Allegra (target: women, 15-25, average education)
• Fit for Fun (target: women, 20-40, average education)

Coupons could be added to the advertisings. With these coupons people could get further
information about the product line and samples.
The advertising in monthly magazines should have the size of 1/2 page, be coloured and
appear 12 times in the first year.
The advertising in the daily newspaper should have the size of 1/2 page, be coloured and
appear 2 days a week for 2 months and afterwards only on Saturday for the rest of the
year (total 26 times in the first year).

TV Advertising
Television is one of the most powerful mass communication media. The ownership is
widespread, in Germany for example more than 97% own a television and in Italy more
than 98%.
The TV-spot should be sent from 4pm-6pm in the TV-station ARD twice a day and three
times a week for the two initial months (total 48 times in a year).

Cinema Advertising
60% of the cinema audiences are people between 14-29, which is one part of the target
group of “Vitalitá”. People who go to the cinema are active, mobile, higher educated,
interested in different topics and they use online-media more often than others. The
cinema has the advantage of offering an unrivalled opportunity to have an attentive
audience.
People can’t just go away or zap, they are forced to watch the advertising. According to the
newest market analysis in Germany 91% of the interviewed people can remember the
cinema spots.

Internet
Being the internet the new medium through which a raising number of people are getting
information of companies and their products, Barilla has own homepages for every product
line.
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People can then get detailed information about receipts and the contents of the products. A
chat room and a page with the answer to frequently asked questions could also help to fill
the customers needs.
The page for Vitalitá offers special services like the possibility to contact a nutritionist, to
get addresses of dietologists and links to other related homepages.

Radio Advertising
Barilla and Mulino Bianco consider radio advertising as being a qualified medium to reach
the own target group. In fact it accompanies breakfast in many German families and
therefore has a wide spread reach. The best time to get in contact with the average
German and Italian consumers is from 6am to 8am as work normally starts at about
8.30am.

Outdoor Advertising
The use of outdoor advertising is an effective way of reaching the target group as
everyone gets in contact with billboards and columns. In this way “Barilla” would reach its
target group also outside their homes in moments of the day used with moving from one
place to another. The costs for outdoor advertising will approximately represent 30% of the
total budget.

Billboards and Showcase

The poster is suitable for all advertising goals and achieves an incomparably high
attention.
90% of the people (pedestrians, drivers, users of public transportation) get in contact with
poster advertising. The market research institute AC Nielsen, found out that 58% of the
interviewed people were not disturbed by posters.
This kind of advertising has relatively low costs. Billboards can be booked within a specific
area and therefore reach the target group.
Showcases protect the poster from environmental forces such as rain or wind and can be
booked within a specific area and therefore targeted. The dimension are 120cm x 176 cm.
Some of the posters are illuminated in order to be seen also by night.
Showcases should be booked for two decades in the abovenamed cities with more than
50.000 inhabitants.

Light Columns and Complete Columns

City light columns in pedestrian precincts and at traffic junctions attract the attention of
most people.
The posters are in the size 380cm x 360cm.
The large surface of the complete column can increase the effectiveness of a campaign.
The advertising message is set effectively in scene by the lighting also at night. The same
cities in which billboards are used should also be covered by light and complete columns.
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Public Relation and Sponsorship
Public relation is “The planned and sustained effort to establish and maintain goodwill and
mutual understanding between an organisation and its publics.”
Public relation activities not only attract the attention of the consumer but get further by
awaking the interest towards the product.
Being an important way of reaching the target group approximately 10% of the entire
budget are going to be invested in public relations and in sponsorship.
Sponsorships is a way of funding events or persons in exchange for publicity and prestige
and of generating positive feelings about the firms and to augment awareness.
It is a marketing technique of a company which uses organisations or people of common
interest in change of money.
As consumers feel gratitude towards the sponsor of their favourite events, Barilla should
continue to sponsor sportive competitions.
Being the product line “Vitalitá” healthy and energetic, Mulino Bianco sponsored
marathons, ski races, bike races and swimming competition.
Music is one of the most important elements of an advertising in radio, cinema and
television as the ear is always opened and is reached by stimulus also when the person is
not watching the spot.

Sales Promotion
Sales promotion is an “Activity designed to give a temporary boost to sales, such as
money- off coupons, free sample or two for the price of one etc.”
Sales promotion has to convince the consumer to try and afterwards to get accustomed to
the products.
Sales promotion is going to represent 1% of the campaign budget, but in the following
years this communication tool could be used more.

Since the number of products launched has been increasing since 1990 the competition
for shelf space has increased as well. Retailers have to be encouraged to make shelf
place available, which can be achieved by sales promotions combined with personal
selling.
Even if the package of “Vitalitá” can be distinguished from competitors, a favourable shelf
position could help to achieve better sales.
The healthy product should be sold in health shops such as Reformhaus, in supermarkets,
in small shops, in petrol stations and also in pharmacies.

A point-of-purchase promotion with a lifesize card-board of a testimonial of Barilla, would

attract consumers in the shops of purchase and sale.
Next to the card-board, samples of products should be distributed among the consumers.
They would have the possibility of trying the products first-hand and of getting further
information about the way of combining them to other products with low fat and calories.
The promotion activities could be supplemented by salespeople who provide the customer
with information, who give further explanation to the products and advice of healthy eating.

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In Italy the collection of points is used by many companies and it is a successive method
of reaching customer loyalty. The “Vitalitá” line should also introduce the collection of
points.
A calendar with pictures of previous campaigns, of the company and of the products would
be an effective promotion activity to reach the target group.
By collecting a certain amount of points, the consumer could win a calendar. It should be
printed about 5.000 times.

CAMPAIGN EVALUATION
The advertising programme should evaluate the communication impact and the sales
effects of advertising.
The product line “Vitalitá” has already been very successful in Italy. Italy could therefore be
seen as the test market. As already mentioned before researches in Germany have
showed that there is a need for healthy, energetic products for breakfast or as snacks. Pre-
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tests, which should normally be conduced to forecast the impact on the consumer could be
done with less intensity.

Post-tests have to be made to evaluate the results of the campaign and the achievement
of the aims set at the beginning.
Recognition tests examine whether the promotional mix used to launch “Vitalitá” has been
successful. The results can be used to assess the advertising’s impact in
different market segments and to compare the ads with the competitors´ ones.
Recall tests actually measure the awareness of the brand. The campaign has been
successful if the awareness reaches 15% among the target group.
Recognition tests are also very helpful to know whether the campaign can be remembered
by the customer.

Evaluation of advertising
The elements awareness, liking, interest and enjoyment are important for the control of the
effectiveness of advertisings.
In the case of “Vitalitá” these elements can be controlled with:

• the number of returned coupons added to the print advertisings could give information
about how many people are interested in the products
• the number of calls on the information line also help evaluating the success of the
products
• the number of leaflets and brochures taken from the cinema, the supermarkets and the
other points of purchase
• the number of people using the homepage, asking questions via internet and requirering
samples
• detailed questionnaires about which medium had the best impact on the consumer.
Depending on the answers the effectiveness of the communication mix can be controlled
and adapted to the consumers´ habits.

Evaluation of Sponsorship and Public Relations

Activities
Generally said there are financial and non-financial measures which can be used to find
out, whether the organized campaign has been successful or not.
The financial measures are the profit, the return on sales and the cash flow/liquidity.
The non-financial measures are the market share, the growth, the competitive advantage,
the customer satisfaction, the awareness levels and the image.
The campaign can be regarded as successful, if a market share of 5% has been reached.

References

www.barilla.it

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www.wikipedia.it

“Principles of Economics and Management” authors: György Ernyei, László Sipos

“Le imprese del made in Italy” authors: F. Alberti, C. Cortesi edizioni Sabatino (2003)

“Le imprese italiane del settore pasta” author: F. Pellero, B.A. Nobili
Edizioni Sabatino (2001)

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