Marzilli’s - Case Analysis

Prepared By: Group 2Prabin PaudelShailesh LamichhaneUrmila MallaGovind Shah

Case Summary

• Marzilli’s 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

Strengths

• Specializes in Italian Cuisine• Highly demanded by Italian cuisine lovers

mainly older generation Italians• Niche market segment i.e. focus on Italian

foods segment

Weaknesses

• Less variety on types of cuisine• Resistance to change• Less prospects of expansion into

“American” foods to attract more customers

Opportunities

• Demographics– 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

• Socio-cultural:– 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

Threats

• Demographics– 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

• Socio-cultural:– 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 Marzilli’s 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

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