Gallo Rice

1. What is special (different) about F&P Gruppo? Why has the company been successful?

First of all, F&P Gruppo describing itself as “the rice specialist” was exceptional, because it was one of few companies in the world so vertically integrated, involved in entire process of growing, milling, packaging and marketing rice. The advantage of such organization was control of the quality and the ability to react quickly according to market changes. The company decided to trade off other products than rice appointing itself as a goal achieving market share leadership through bringing differentiated, higher margin products. F&P Gruppo was investing heavily in Research and Development, because new products were supposed to derive 35% - 40% of total gross margin. Although successful in 8 countries, the company didn’t fall into trap of complacency, it always saw room for improvement constantly searching for new strains of high-quality rice and looking for new markets and opportunities. F&P Gruppo was incredibly consistent with its Gallo brand name and Gallo rooster logo, and this consistency resulted in high brand awareness across the countries the company operated in. What is more, as an undeniable production innovation leader the company consistently earned the highest of six quality grades.

2. Asses Gallo’s market position and opportunities in Italy, Argentina and Poland.

Italy

With its brand present for over a century and 21% of volume share Gallo had definitely strong and stable position on Italian market. Rice was a very popular element of Italian diet and consumers perceived it as quick and easy to prepare, healthy