Relationship Marketing Strategy and implementation

(Nora) #1

Case 2.1: Nestlé Buitoni:The house that mamma built


This case was written by Edward Hickman, a Management
Consultant at Robson Rhodes, and Professor Erich Joachimsthaler
Visiting Professor at the Darden Graduate School of Business
Administration, University of Virginia.


Abstract


The Nestlé Buitoni case study examines an early example of the
introduction of a club concept within Europe. The case traces the
history of the company’s origins and growth until it was taken over
by the Nestlé group in 1988. By this stage it had established itself as
the third largest food manufacturer in Italy. The case focuses on the
UK subsidiary of Buitoni and in particular its launch of the Casa
Buitoni Club, aimed at British consumers who shared a love of
Italian food. The foundation of the club and its objectives are
covered, including how they built a database of customers and how
they sought to educate British consumers, who are fairly unsophis-
ticated about Italian food.


Learning points


This is an interesting case which gives insight into a club-type
approach to promoting a food product range. It discusses creating a
relationship by involving the customer in brand-building activities.
In particular, Buitoni sought to strengthen brand awareness and
create a core number of customers interested in getting involved in
Italian cooking. Their integrated communications campaign based
on ‘share the Italian love of food’ resulted in a database of more than
200 000 consumers.


Broad marketing and strategic issues:


●brand building as a defence against commoditization and retailers’ own
brands
●growing a food brand in different geographic market segments
●strategies to build a brand with potential, but having a modest position
in the overall product portfolio of the group
●how to educate a new marketplace
●addressing alternative ways to serve the customer.


54 Relationship Marketing

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