„Philosopher pasta maker” on innovation

– Dramatic changes are needed in marketing – declared i Guido Barilla, president of Barilla holding at the ECR Europe conference held in Milan, where over 150 lectures had been delivered. He is frequently referred to as “a philosopher in the president’s chair”. Guido Barilla was originally destined for a luxurious and care-free life, because his father had sold the company in 1971. He attended a number of universities in Italy and the US, studying literature. His father, Pietro Barilla however, decided to buy back the company eight years later and Guido took over as president in 1993, after the death of his father. Though nobody expected the “philosopher” to succeed in business, he used smart marketing tricks to create a new image. He has employed stars like Alberto Tomba, or Paul Newman in their advertisements. Sales grew at an unprecedented rate, the brand successfully entered the US market and strengthened its position as the world leader pasta manufacturer. At present, they are active in 21 countries, with 80 factories in 12 countries, generating annual sales of USD 4,6 billion. – Innovation is a popular topic nowadays, because everybody is expected to produce result in ever shorter periods of time. This process however, has its casualties. 90 per cent of FMCG products disappear from shelves within a few years of being introduced. Excessive speed kills innovations, instead of driving progress. It would be better if innovations were the result of systematic work.” He also had some criticism for globalisation. He does not believe that globalisation is the result of striving for a better life. It is more the result of a need for expansion and the need to export models of consumption. – For us, the main issue is not the rate of growth, but the method of growth. If innovation is needed for growth, we have to redefine growth in accordance with the concept of sustainability. Sustainability means that growth should not be achieved at the expense of our well being. We should stop thinking about consumers and start thinking about people. Do we really know what people want? There are many new products which do not serve real needs, only those of expanding production. These products illustrate how far removed marketing is from the real value of products and how distant companies are from people. We cannot go on like this.

Some interesting thoughts from my notebook:

„We are living in the age of wellness. Everything that projects the benefits of wellness becomes a success.”
Nikos Veropulos, CEO of the Veropoulos group

„It is worthwhile to work out new packaging concepts devoted to wellness and health. Too many colours will confuse consumers who want to find healthy food as simply as possible.”
Ethan Sinick, from MVI merchandising services

„The most successful new products achieve high and growing sales during the first six to eight weeks of introduction.”
Tim Eales, manager of IRI market research

„There are many merchants who do not know or understand their customers. They don’t know when, where, why or how much money is spent.”
Robert Leechman, a director of Coca-Cola Company

„It is not enough for our bosses in manufacturing and trade to agree on co-operating and not treating prices as a sole priority, if 80-90 per cent of time spent on negotiating with purchasers is devoted to them arguing about the necessity of reducing our prices.”
CEO of a manufacturing enterprise, during an evening chat

„Price is a safe starting point for negotiations and discussing it is closely linked to trust. Flexibility is also based on trust.”
Sales director of a manufacturing enterprise, during an evening chat

„In commerce, one must always watch global and local trends.”
John Zelley, a director of Accenture

“It is not the amount invested in a sales channel that matters. What matters is the way it is invested.”
Sales director of a manufacturing enterprise, during an evening chat