Case Study: 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 on!label. "he lac# of competitors in the mar#et
enabled the founder, $ieran % Donohoe, to enter a niche mar#et and build a brand ith
little or no advertising.
$ieran %Donohoe is a chef by profession and he spotted a gap in the mar#et hile
or#ing in the flour import business. &econdary data indicated that sales of fresh pasta
had been groing steadily in both the '& and the '$. (e felt that the Irish mar#et as ripe
for the same product. Furthermore, the )Dolmio* brand as the only fresh pasta brand on
sale in Ireland. (oever, Dolmio as e+periencing logistical problems since the product
as not an easy one to handle. "he need for temperature control made transportation and
handling of the product in retail shops difficult. Delays in delivery from the '$ meant that
the optimum shelf!life of the product as only , to -. days. Immediately % Donohoe
recognised the opportunity for a local supplier that could improve distribution and cut
delivery time, thus inning the vital edge over multi!nationals.
The consumer
"he product as aimed at the buyer ho does not alays have the illingness, or ability, to
prepare meals. It as positioned as a high /uality convenience food that as nourishing,
healthy and tasty. "he mar#et as mainly comprised of young, affluent professionals ith
busy lifestyles, ell!traveled, ho eat alone ! even if they live as families. Chilled pasta is
partially an impulse buy. 0s a result, the attractiveness of the product, the impression of
freshness, the assortment of products, all help stimulate and maintain consumer interest.
Product and branding
"he product is made from natural ingredients such as durum heat and fresh eggs, and is
instantly distinguishable from dried pasta, being soft, moist and easy to coo#. % Donohoe
as able to offer retailers a fresh pasta product ith a shelf life of 1- to 12 days. In the first
year of operation, the number of products consisted of seven pastas including three
tagliatelles. "he founder as able to use his training as a chef to develop ne products.
(e e+tended the product line by offering to home!made sauces 3Palermo and Pomodoro4
hich ere sold as an accompaniment to the main pasta dish.
"he brand name `Cucina 3the Italian for #itchen4 as chosen to emphasi5e the Italian
origins of the product. % Donoghue claimed that the ord caught his attention hen he
as leafing through a coo#ery boo# one day. Considerable thought has gone into the
pac#aging design, so that it stands out in display areas and communicates the products
/uality. "he product as vacuum!pac#ed for freshness, and the pac#age as vibrant and
colourful, ith yello, green and scarlet cleverly incorporating the colours of the Italian flag.
Price
"he founder of the company decided to use a premium pricing strategy. (e #ne that
retailers ould be illing to stoc# a high margin product and felt that consumers ould be
illing to pay a high price for a high /uality product.
Promotion
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Leitrim Foods is a small company ith no capacity to build a brand through intensive
advertising. (oever this is not considered to be a ma6or disadvantage due to the lac# of
competitors in the mar#et. "he company relied mainly on in!store testing, product
presentation and ord!of!mouth advertising to attract consumers.
Distribution
Cucina Pasta sells to multiple stores ith fast turnover 3such as 7uinnsorth, &uper/uinn,
"esco, 8oches, &uper9alue, &P08, :ace, Londis, L;< and Petitts4. "he 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. &mall, independent grocers
do not have sufficient turnover or sophisticated enough distribution systems to overcome
problems of short shelf!life and difficulties of temperature control hich together ould
result in high astage levels.
The future?

"he founder managed to attract funding necessary for e+pansion. "he companys share of
the fresh pasta mar#et as estimated at =.> in -??,. "he future challenge for the
business is in #eeping the product range fresh. Consumers tire of eating the same
products on a regular basis and e+pect novelty products. :indful of this fact, the company
introduced three ne lines during -??, 3Chic#en ; @acon 8avioli, :ushroom &auce
"agliatelle and &pinach "agliatelle4. "esco entered the Irish fresh pasta mar#et in -??2 and
launched its on range of competitively priced fresh pasta and sauces. $evin @lessing, the
mar#eting manager of Leitrim Foods, as undeterred by this ne challengeA
BChen e became aare that "esco as coming into the mar#et it as a nervous time for
us because e didnDt #no hat as going to happen. @ut although e lost shelf space,
e erenDt de!listed, and eDre no beginning to fight bac#. "esco has a big product range
and this ill be good for the mar#et because I believe that a greater presence of fresh
products ill gro the category over all.B
Questions
3-4 "o hat ould you attribute Leitrim Foods initial successE
314 Perform a &C%" analysis of the firm andFor the fresh pasta mar#et.
3G4 Chere does Leitrim Foods go from hereE
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