A decision on future strategy for the pricing policy and new countries to extend it to will be made by the end of this year, according to John Karakadas, regional director for Europe. But he admits: "It's going great wherever it's been rolled out. In some cases it's exceeded our expectations."
Ed Artzt, the former chairman of Procter & Gamble, which has championed EDLP in the U.S. and more recently in Europe, joined the Barilla Group as executive director last fall.
Artzt's appointment has also sparked a restructuring of the firm's marketing to facilitate expansion into new sectors and countries, and "build a truly international business," says Thomas Heidenreich, managing director of Grey Duesseldorf, who co-ordinates Barilla's $20m European advertising account outside of Italy.
Dean Sanders, marketing controller for gifts at Kraft Jacob Suchard's confectionery subsidiary Terry's Suchard in the U.K. until last week, has moved to Parma as Barilla's European marketing director - a new position over and above individual country marketing directors, all of whom are expected to remain in place. Sanders worked for KJS in Germany for several years previously. He will report to Karakadas.
Similarly, a marketing director to cover the U.S., Latin America and possibly Asia Pacific - markets Barilla has entered in the past year - has been recruited from the Parma headquarters, but not yet made public. Grey in New York handles advertising for that region.
Barilla's core product outside of Italy is dried pasta. But in its domestic - and still its biggest - market, the company also makes Barilla sauces, the premium Mulino Bianco cookies and Pavesi snacks.
When it announced EDLP in Italy, the company claimed that money saved on promotional giveaways would allow it to slash prices on 70% of its products by an average 12%. In Italy, Young & Rubicam handles Barilla and Armando Testa the Mulino Bianco account.
Copyright September 1996, Crain Communications Inc.