Sig. Cesare Preve, marketing director for the Gallo brand of rice, was reviewing Gallo's current market position in three different countries. Volume share was 21% in Italy, 17.5% in Argentina, and less than 1% in Poland respectively. Preve was trying to determine a strategy for deepening Gallo's market penetration in each country. One of the questions that needed to be answered included whether or not resources should be focused in new high growth markets or should he focus on mature markets. Another question was if he could take what was learned from success or failure in one country to another country.
Gallo was the market leader in rice in Italy. It was a trusted brand and known for good quality. Eighty-five percent of retail rice sales in Italy were white rice and 15% consisted of paraboiled varieties by volume. Paraboiled and specialty rice were growing approx. 10% per year while white rice was losing 1%-3% share annually. Gallo's white rice volume accounted for......
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