Innovation in Foodservice: the Case of a World Leading Italian Company

This case illustrates and discusses the innovative approach of a world leading Italian company to the foodservice market, which represents for manufacturers a challenging alternative channel to the "more traditional" retail channel to reach and acquire customers. In 1996, Barilla, the largest Italian food-processing company and worldwide leader in the pasta market, decided to approach the foodservice market in a more structured way by starting a new division, called Barilla Foodservice. This choice was based on the strong belief that the profitability of the sector would be directly proportional to market specialization. Acknowledging that sustainable competitive advantage could not be achieved by slightly differentiating the existing products, Barilla focused on supplying to foodservice operators not just a product, but a service-solution, building strong partnerships with them. In doing this, the Italian company pursued two goals: to satisfy customers in a unique way and give more visibility to the manufacturer brand in what was until then an unbranded market. Part of the case focuses on the Barilla relationship building process with the first partner which introduced the innovative "Pasta Corner" in its points of sale. The case is the result of longitudinal qualitative research, comprising both primary and secondary data.