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Marzillis Case Analysis

Prepared By: Group 2 Prabin Paudel Shailesh Lamichhane Urmila Malla Govind Shah

Case Summary
Marzillis Fine Italian Foods founded in 1935 by Gino Marzilli The business proved to be quite successful over the years In 1960, began producing homemade pasta and high-quality sauces with Italian foods In 1972, handed over his business to his only son Jim

Case summary continued

The business remained successful in 1980s but recently, sales have shown a steady decline Some reasons for declined sales
- Old Italian population moved to suburbs - Young professionals populate nearby areas - Lack of knowledge regarding Italian cuisine from frequent customers

Over past year, business barely at breakeven point

Specializes in Italian Cuisine Highly demanded by Italian cuisine lovers mainly older generation Italians Niche market segment i.e. focus on Italian foods segment

Less variety on types of cuisine Resistance to change Less prospects of expansion into American foods to attract more customers

Disparity in age of local customers Older customers are more knowledgeable regarding traditional cuisine

Political/Legal :
Company acts and rules and regulations Favorable government policy on companies Favorable laws

Opportunities continued
Economic :
Unemployment rate Wage levels Currency convertibility

Promotion of traditional Italian cuisine Temporary workforce Promoting Italian cultural heritage

Opportunities continued
Technological :
Improving operations processes through use of technology Use of e-commerce in selling Italian foods

Relatively younger professionals as customers Income level disparity among customers

Political/Legal :
Minimum wage of employees Role of Taxation Unfavorable government policy Unfavorable laws

Threats continued
Economic :
Role of unemployment Higher wage levels Currency convertibility

Temporary workforce

Threats continued
Technological :
Competition through e-commerce

Industry environment:
Domestic Italian cuisine restaurants and businesses Availability of substitute products

Vision Statement
To focus on Italian food market by promoting Italian heritage and culture

Mission Statement
To establish Marzillis as a leader in Italian food products.

Main Strategy
Focus Strategy (Niche or Segmentation)
Involves concentrating on a particular market or segment i.e. Italian foods market Matches with the strengths of the business by focusing on Italian food segment Can be a source of competitive advantage for the business

Alternative Strategy
Product Diversification Strategy
Expansion of the business into American foods grocery store so as to attract more customers Fails to take advantage of the strengths of the business May lead to a weaker situation for the business