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SABARAGAMUWA UNIVERSsITY OF SRI LANKA

FACULTY OF AGRICULTURAL SCIENCES
B.Sc. DEGREE PROGRAMME IN FOOD BUSINESS MANAGEMENT
YEAR I SEMESTER I
EXAMINATIKON-JUNE/AUGUST 2018
PRINCIPLES OF MARKKTING - FBM I1022
PART I

Time allowed: 1 HOUR & 30 MINUTES

Answer FOUR (04) questions including questions ONE (01) and TwO (02).

Read the below case study and answer the following questions.
Cucina Pasta

Company Overview
Leitrim Foods is the only Irish manufacturer of fresh pasta that is sold under the brand
name Cucina Pasta". Despite being a very small company, the founder decided to
adopt a branding strategy rather than supply own-label. The lack of competitors in the
market enabled the founder, Kieran O' Donohoe, to enter a niche market and build a
brand with little or no advertising. Kieran O'Donohoe is a chef by profession and he
spotted a gap in the market while working in the flour import business. Secondary
data indicated that sales of fresh pasta had been growing steadily in both the US and
the UK. He felt that the Irish market was ripe for the same product. Furthermore, the
Dolmio" brand was the only fresh pasta brand on sale in Ireland. However, Dolmio
was experiencing logistical problems since the product was not an easy one to handle.
The need for temperature control made transportation and handling of the product in
retail shops difficult. Delays in delivery from the UK meant that the optimum shelf-
life of the product was only 7 to 10 days. Immediately 0' Donohoe recognised the
opportunity for a local supplier that could improve distribution and cut delivery time,
thus winning the vital edge over multi-nationals.

The consumer
The product was aimed at the buyer who does not always have the willingness, or

ability, meals. It was positioned as a high quality convenience food that

to prepare
was nourishing, healthy and tasty. The market was mainly comprised of young,
affluent professionals with busy lifestyles, well-traveled, who eat alone - even if they

As a result, the
live families. Chilled pasta is partially an impulse buy.
as
attractiveness of the product, the impression of freshness, the assortment of products,
interest.
all help stimulate and maintain consumer
Product and branding
The product is made from natural ingredients such as durum wheat and fresh eggs,
moist and easy to cook.
and is instantly distinguishable from dried pasta, being soft,
a fresh pasta product with a shelf life of 21 to
0' Donohoe was able to offer retailers
28days. In the firstyear of operation, the number of products consisted of seven
chef to
pastas including three tagliatelles. The founder was able to use his training as a
line by offering two home-made
develop new products. He extended the product the main
sold accompaniment to
sauces (Palermo and Pomodoro) which were as an

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pasta dish. The brand name Cucina' (the Italian for kitchen) was chosen to emphasize
the Italian origins of the product. o ' Donoghue claimed that the word caught his
attention when he was leafing through a cookery book one day. Considerable thought
has gone into the packaging design, so that it stands out in display areasand
communicates the product's quality. The product was vacuum-packed for freshness,
and the package was vibrant and colorful, with yellow, green and scarlet cleverly
incoporating the colors of the Italian flag.

Price
The founder of the company decided to use a premium pricing strategy. He knew that
retailers would be willing to stock a high margin product and felt that consumers
would be willing to pay a high price for a high quality produc
Promotion
Leitrim Foods is a small company with no capacity to build a brand through intensive
advertising. However this is not considered to be a major disadvantage due to the lack
of competitors in the market. The company relied mainly on in-store testing, product
presentation and word-of-mouth advertising to attract consumers.

Distribution
Cucina Pasta sells to multiple stores with fast turnover (such as Quinnsworth,
Superquinn, Tesco, Roches, Super Value, SPAR, Mace, Londis, L&N and Petitts).
The convenient nature of the product means that it is generally an impulse purchase
and it fits the store image of city centre convenience stores and garage forecourts.
Small, independent grocers do not have sufficient turnover or sophisticated enough
distribution systems to overcome problems of short shelf-life and difficulties of
temperature control which together would result in high wastage levels.
The future?
The founder managed to attract funding necessary for expansion. The company's
share of the fresh pasta market was estimated at 40% in 1997. The future challenge
for the business is in keeping the product range fresh. Consumers tire of eating the
same products on a regular basis and expect novelty products. Mindful of this fact, the
company introduced three new lines during 1997 (Chicken & Bacon Raviol.
5
Mushroom Sauce Tagliatelle and Spinach Tagliatelle). Tesco entered the Irish fresh
pasta market in 1998 and launched its own range of competitively priced fresh pasta
and sauces. Kevin Blessing, the marketing manager of Leitrim Foods, was undeterrea
by this new challenge:

a Briefly explain the competitive advantage of Leitrim Foods. (

(
b Perform a SwOT analysis of the fim and/or the fresh pasta market.
 Nimal and Saman are two enterprising youth. They have passed out from
Sabaragamuwa University of Sri Lanka. They thought instead of doing a job, they
will launch fresh vegetables in Sri Lankan market. Having learnt of the future
conventional foods, they decided to venture into cultivation of mushrooms.
Mushrooms are known to be the best alternative food for vegetarians. For Nimal
and Saman fund raising was a serious handicap for mass production. However, the
first trial batch of mushrooms that they produced was bought by Star Hotel in
Colombo. Further, the hotel placed orders for supply of 20 kgs every day. Now the
mushroom industry is run by small entrepreneurs, like Nimal and Saman. Another
big player, * Fresh Mushrooms", equipped with cold storage facility was more

interested in the export market. Nimal and Saman have set their sights high. They
aim to sell mushrooms in a very big way all over Sri Lanka. Mushrooms have a
great market potential and is a perishable food.

a How will you advise Nimal and Saman, as how to increase the consumer
awareness about their product mushroom? (15 marks)

b What would be your suggestions for the distribution channel for mushrooms? (10 marks)

3 a Explain the three basic generic competitive strategies using examples relevant
to the food industry. (05 marks)

b Briefly describe on branding of fresh produce. (05 marks)

4 Newum Kiri Pvt. Ltd is in the process of developing a new yoghurt brand. Explain
how you would the 4 Ps of marketing to position it as the most
briefly use
preferred yoghurt for the young people between 15 and 25 years. (10 marks)

5 Write concise notes on each of the following.

a Brand Equity

bRebranding
c Tiered Branding

d Brand Extension
(2.5 marks for each)

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