Relationship Marketing Strategy and implementation

(Nora) #1

Then there was an important factor that related to some basic economics
of building brands. Buitoni was the market leader but Buitoni was also a
small-fry brand for Nestlé in the UK. Nestlé would not be able nor willing
to spend the kind of money that is needed on only one brand. This was the
age of rising media costs, proliferation of channels and increasingly sophis-
ticated consumers who question the value of advertising as a credible and
truthful source of information about new brands and products.
For the large retailers that advertise entire product ranges, or for Nestlé
as a whole, the economics still may work out, but not for one strategic busi-
ness unit and a £10 to £15 million brand in a company with total revenues
in excess of $36.5 billion. Moreover, pasta was an undifferentiated product.
There was little brand loyalty since consumers saw one brand as essen-
tially the same as another brand.
Lastly, there was also the particular situation of the pasta market in the
UK. Per capita pasta consumption in the UK was one of the lowest in the
European Union. The British consumer was unaware of the health benefits
of this type of Mediterranean diet. He/she did not know about the ease of
preparation of delicious pasta dishes. British consumers did not under-
stand the advantages and benefits of Italian foods, and more specifically
the value and quality of branded pasta over private label pasta. Not that
British consumers did not know Buitoni. Awareness was already reason-
ably high (over 50 per cent), which was not surprising given Buitoni’s
leading share of the market.
The situation called for a development of the market through customer
education, so-called primary demand stimulation. It was not just a matter
of picking up some market share points from the competition. For this
objective, mass-marketing methods of communication with consumers
would be ineffective.
The solution for Nestlé and Buitoni was to bypass, in some way, both the
retailer and the traditional forms of mass-media communication and to
talk directly with the consumer.


The Casa Buitoni brand identity
Nestlé started with a clear definition of the brand identity of Buitoni and
the role of the Casa Buitoni, the original villa of the Buitoni family in
Tuscany, Italy. The identity was defined as ‘the embodiment of Italian
authenticity and genuine origins, representing 165 years of tradition, ded-
ication and above all, a continuous commitment to providing the finest
that Italian cuisine has to offer’. Buitoni represents the roots and history of
Italian pasta. It was hoped that this would differentiate Buitoni from com-
petitors, and would allow the company to charge a 10 per cent premium.
The objective of the Buitoni brand was to become a helpful authority and
an expert about Italian food, a brand, place and company where the con-
sumer can turn to for advice.


70 Relationship Marketing

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