Panti Cosi Piccoli Marketing
Proposal
Bri Gibbons
Deanna Terelle
Josh Johnson
Samantha Williams
Panti Cosi Piccoli translates to “A lot of little things.” In Italy this phrase is used to refer
to food. We believe this perfectly describes our product—small arrangements of food.
We are a start-up company based in Rome, Italy, which is near the Mediterranean Sea.
We provide premium food arrangements to local customers, ages 30-45, who are seeking
a unique gift. We believe this will be a success because we are focused on the Italian
cuisine unlike our main competitor, Edible Arrangements. Based on our research of
Edible Arrangements Italia, we have found that they missed the mark in this region.
Instead of changing their baskets to conform to the Italian culture, they are selling the
same arrangements they sell in the United States. We plan to market to the Italian
customer by working with local specialty shops. This kind of partnership will establish us
as an authentic brand. We are confident we will find success in this market based off our
research on geographic and economic trends, consumer needs and behavior, and our
position within the industry.
Trends
Based on our examination of cultural, technological, demographic, and consumer trends
of Rome, we have established a need for a ‘mom and pop’ store feel. Our intention is to
not become a chain store, such as Edible Arrangements, because the businesses in Italy
are known to be small and intimate. We will also work with local shops to make our
brand more authentic to the Italian market.
Rome is the ideal place to open up Panti Cosi Piccoli because of the heavy population
and the mindset of its people. The population of Rome is 3.357 million people, which
makes it the most populated city in Italy, and therefore, we will be able to appeal to more
people. Approximately 80% of the population are Roman Catholic. This is an important
statistic because we need to observe special holidays and traditions that are important to
the Roman culture such as Christmas, All Saints Day, and Easter Monday (National,
2012).
Rome’s geographical location and climate ultimately affects our end product. It is
located in a valley in Central Italy and has a warmer climate and rarely experiences cold
weather. These factors are important in determining what kind of ingredients we use
because some of our items are seasonal. Certain produce are ripe at different times of the
year, such as figs in September and olives in January (Terelle, 2012). To ensure
freshness of our products, our arrangements will contain seasonal items at the appropriate
time of the year.
Though the majority of our arrangements are seasonal, some will be available year-round.
We will take popular Italian dishes and transform them into arrangements. Some of these
include our Caprese Fiore and cheese arrangements. The use of popular Italian dishes that
do not vary with the seasons will help us create a standard menu of products for our
customers. This simultaneously targets the specific tastes of the Italian consumer.
Another seasonal factor that Panti Cosi Piccoli will be taking advantage of are Italian
holidays. We need to focus on pastries and desserts, rather than antipasti. The Italian
culture is known to be friendly and people rarely show up to a party or an event emptyhanded. However, it is custom for one to make their own dish if it is not a dessert item.
Pastries are commonly decorated with frilly paper and other items that make the dish look
pretty and appealing to the eye (Terelle, 2012).
Fresh food is available daily due to its high demand (Terelle, 2012). As a result, we
won’t need to worry about running out of food products. Just like the Italians, we will
grocery shop every day to ensure that we have the freshest and highest quality ingredients
in our arrangements.
The development of technology in Italy will benefit Panti Cosi Piccoli because we are
able to use social media and other Internet tools in order to market our product. Similar to
the United States, social media sites are growing in popularity and are used by most
Internet users (Terelle, 2012). In Rome, it is common for households to have cell phones,
televisions, computers, and Internet access. As of 2011, there were 92.3 million cell
phone users and as of 2009, 29.235 million Internet users (Agency, 2012). These
numbers demonstrate that the use of technology is constantly growing, especially in a
large city like Rome.
Based on our analysis of the cultural, technological, demographic, and consumer trends,
we believe that this is the ideal place to start up Panti Cosi Piccoli. In order to implement
our business into Rome, we first need to adapt to the climate and holiday trends in order
to form a menu that will appeal to consumers. Second, we will need to form partnerships
with local shops. Third, we need to utilize the freshest products that are available to us.
Lastly, we need to effectively market our product through social media.
Starting Up A Business in Rome
Once a decision has been made to start up a business in Italy, the owner must register as
one of the two forms of a limited liability company. Based on the criteria for each, we
would best fit the Societa Responsabilita Limitata Company (S.R.L). Starting a business
in Italy is a short process, taking approximately six days.
There are six procedures a firm must go through in order to register their business

Deposit at least 25% of the amounts contributed in cash with a bank,

Execute a public deed of incorporation and company bylaws before a public
notary; pay registration tax,

Buy corporate books and accounting books,

Pay government grant tax to the post office current account,

Register the Company through Comunicazione Unica, and

Notify the competent Labor Office (DPLMO) the employment of workers.
The cost of starting a business in Italy is 16.5% of the economy’s income per capita.
According to a study conducted by the World Bank and the International Finance
Corporation (IFC), Italy has a much lower rank on the scale for “Doing Business” which
means they are more difficult to do business with (Italy Starting). However, with the
strides that we are taking to make our brand more authentic, this won’t be a problem.
Culture Sensitivity
Our top priority is to please our customers. To us, this means that we must accommodate
to the Italian culture and have a deep understanding of why things are the way they are.
To make sure we are doing our part to respect the Italian culture, we will hire locals from
Rome. This will create an image for Panti Cosi Piccoli as an authentic brand. Hiring
locals will also help gain the trust of our customers and their shopping experience a good
one.
Financing and Costs
Financing our business will not be an easy task. However, there are several incentives the
Italian government gives to support new companies such as ours. Some of these
incentives would be a tax credit for job creation. Also, there is the “Zone Franche
Urbane” (ZFU) which is a recent initiative of the Italian Government that consists of
certain areas where starting up small business is tax-free. This initiative exempts new
small businesses from paying the income tax, IRAP. This also exempts businesses from
paying the property tax, ICI, for up to five years (Italy Starting). These incentives will be
greatly beneficial for Panti Cosi Piccoli because taxes can be a burden especially for a
new, small business.
A problematic area for Panti Cosi Piccoli would be the capital needed to start the
business. We must have at least €10,000, and in order for our Deed of Incorporation to
be finalized we must deposit a quarter of that in an Italian Bank. The capital needed for
this will need to be provided by investors.
Rent and utilities are both fixed costs with a combined total of €44,131.92 per year. The
next costs for our business would be office supplies and equipment with a total of
€8,629.64 per year. This, however, would decrease after the first year due to one-time
equipment purchases, such as refrigerators and freezers.
Salaries, supplies, and ingredients are variable costs. For our first year we would incur a
total cost of €172,542.31. The preceding years will decrease to approximately
€166,776.96. We would hire two managers and four assistants to run the business. This
would cost approximately €91,200 per year. The supplies and ingredients for the
arrangements would cost about €28,580.76 per year.
The costs of our small, medium, and large arrangements would be €37, €65, and €140,
respectively. We are projecting that we will sell 240 arrangements a month, and 2,880 a
year. Based on these figures, we predict our revenues to gross approximately €232,320
per year. Our profit for the first year would approximately be €59,777.69 and then
€65,543.04 for preceding years. Our break-even point would be 713 units of each size,
and this would cover all of our start-up costs. Every arrangement we sell after we reach
our break-even point will be profit.
For more information regarding our cost analysis, refer to our financial analysis that is
attached.
Product, Placement, Price, and Promotion
Our products not only contain fruit baskets, but we also have well-known Italian antipasti
that are transformed into unique arrangements. This differentiates us from any
competition because there are no companies that offer such a diverse set of products. The
arrangements we offer are geared toward customizing and tailoring to the Italian culture.
We are also dedicated to building strong relationships with the Italian businesses and
people.
There are two reasons why we are confident we will be a success in Rome. First, we are
in the same industry as Edible Arrangements and we know that they are having plenty of
success in Italy. This minimizes the risk of our product not being a success within this
region. Second, although Edible Arrangements was the first to enter Rome, we are able
to capitalize off of their mistake of not tailoring to the Italian consumers. What makes us
different is the fact that we will be taking food that is popular in the Italian culture and
making them into a creative arrangement.
One of our signature arrangements that will be available year-round is the “Caprese
Fiore.” This dish consists of a Caprese salad in the arrangement of a sphere. A Caprese
salad consists of four ingredients: mozzarella cheese, tomato, basil, and olive oil. What
sets our arrangement apart from others is the way we use the ingredients to make it into a
unique arrangement. We start by drizzling olive oil over our ingredients. We then use a
tool similar to a toothpick that first punctures through a basil leaf and then through either
a small mozzarella ball or a cherry tomato. This will create a flower-like look. The basil
will resemble the petals of a flower while the tomato and mozzarella will resemble the
center of a flower.
Mozzaré is one of the more popular specialty cheese shops in Rome. We plan on
partnering with them in order to create and promote our arrangements. In turn, we will
incorporate their cheese into our arrangements (Terramia).
Since cheese is easy to cut, we are able to create different shapes, such as hearts and
flowers. We will also provide an option for customers to have cheese custom-made into
whatever shape they would like. Some popular Italian cheeses are Mozzarella, Pecorino,
Ricotta, and Provolone (Terelle,2012).
We also plan to partner with the orchards from South Tyrol, Italy. They are known for
their efficient production in the fruits that we will be having in our arrangements. Also,
they are not subsidized by the government, meaning they aren’t pressured to grow a
specific quota of fruit. We believe this will give us the best quality fruits for our products
(Good Fruit). These orchards are approximately 6.5 hours away from Rome. We plan
on using trains as a means of transportation for our order of fruits.
Potential competitors are flower shops and candy stores. We are part of the gift-giving
industry and consumers can easily substitute our product with simply giving flowers or
chocolate. However, their product is limited to one specialty. For example, flower shops
are limited to only flowers and ones that are in season. Candy stores are limited with just
candy and other sweets. We offer an array of different food items that can be for special
occasions, gifts, or just because.
Another way we are differentiated from our competitors is the way we customize our
arrangements to the customers’ liking. Customers have the option of selecting
predesigned arrangements or having them customized. They have the ability to choose
what shapes will be incorporated in their arrangement, how their food choices will be
arranged, and they also have the ability to interchange pieces. There will also be an
option to add refreshments that complement the arrangement such as wine, sparkling
water, or espresso.
We will be targeting both men and women, ages 30-45, with an average income of
€34,000. Family ties are strong within this culture and therefore, this age group is more
likely to be in a serious relationship or married (Terelle, 2012). This creates a larger,
combined household income which means they have more money to spend. For
example, most Italians who live in large cities own summer homes in the country, in
coastal areas, or in the mountains (Italians, 2012). With this being said, our product fits
into the lifestyle of enjoying the finer things in life.
We are pricing our arrangements at a premium because of the process involved in
creating them. Our partnerships between South Tyrol Orchards and Mozzaré will supply
us with the foods we need. To ensure freshness of our ingredients, we will be buying
food on a weekly basis. This will incur a high cost and therefore making it more
expensive to create our pieces.
Our price range will be between €37-140. This directly competes with Edible
Arrangements whose pieces range €18-118. The cheapest pre-designed arrangement
starts at €37 and increases based on variety within the arrangement, the size, and the level
of customization.
Panti Cosi Piccoli is a premium brand and therefore, the use of commercials isn’t part of
our promotion strategy. If one looks at high-end brands such as Chanel or Louis Vuitton,
they would see that they don’t use commercials. Instead, the product is an advertisement
within itself and owning one of these brands is considered symbol of status. We plan on
adopting this kind of marketing technique for our arrangements. Word of mouth
marketing and displaying our arrangements in our partners’ shops will be what we rely on
to establish ourselves as a premium brand.
Part of our agreement with local shops would be for them to display our arrangements,
using the products they sale, in their window. Our intention is for customers who
typically shop at these stores will walk in and see a unique arrangement and wonder
where they could get something like that for themselves. As a result, they will be able to
enjoy a creative arrangement with their favorite foods from their favorite shops.
SWOT Analysis
Strengths
Our mission at Panti Cosi Piccoli is to represent the Italian culture through food. Our
products are giving Italians food they love in the most unique way. This is advantageous
for us because we are establishing ourselves as an authentic brand that Italians can be
proud to do business with.
We are taking full advantage of the fact that Edible Arrangements didn’t study the Italian
culture and, thus, creating a line of arrangements that includes deserts, cheeses, and
antipasti. We consider this a strength because our brand has a more authentic feel because
our product line offers a variety of arrangements tailored to the Italian taste.
Italy is an ideal place to start up a food business because of its rich agriculture. Italy is
full of vineyards and orchards, and surrounded by bodies of water. As a result, the food
is always fresh and readily available.
Weaknesses
An issue that we will encounter is the perishability of the food that we provide in our
arrangements. Once we put fruits and vegetables into our arrangements, their shelf life
starts to diminish. Strawberries and soft skinned fruit will last about a day, once no
longer refrigerated. Other fruits such as grapes may last two days, and fruits like oranges
and melons will last longer; however, once they are cut, they will perish more quickly
(Scriver, Grater, Baker, 2012). To minimize this weakness, we plan on attaching a
disclaimer educating the customer on how to preserve the arrangement.
A concern we have is the fact that Italy’s gift-giving customs differ from the United
States. In the U.S., sending someone this type of gift would be a great idea for any
special occasion. Italians put a great emphasis on homemade dishes, and it is frowned
upon to go to a family gathering with a dish that you bought from the store. We want to
point out the fact that our arrangements aren’t main dishes, but rather appetizers and
desserts. Bringing a pre-made arrangement is deemed as acceptable as long as it’s not a
main dish (Terelle, 2012).
Opportunities
Though Edible Arrangements entered Rome before us, we consider this is an opportunity
because we are able to capitalize on what they did wrong. The problem with Edible
Arrangements is the fact that they’ve taken their products from the United States and
didn’t tailor it to the Italian market. The opportunity that exists is for us to take popular
Italian cuisine and form them into delectable arrangements. If we are able to do this, we
believe that our clients will be more likely to purchase from us.
Our local partners create opportunities for us by educating us about the culture and in
turn becoming a more authentic business. Our intentions are to build strong relationships
with these businesses which will eventually turn into a strong relationship with the
community. This is opportunistic because people who buy from us can feel good about
supporting their community.
Italy is a food oriented culture and this creates an opportunity for our business to start in
this market. Italians typically bond over meals which gives our arrangements the chance
to be part of this special time.
Threats
Italy’s economy is experiencing problems. For the past year, many investors have
worried about whether or not Italy could pay off their debt. This causes fear and
uncertainty about the Italian economy and whether they need a bailout. This is a huge
threat, not only to our business, but to every business in Italy (AMB, 2012). The
economic growth has declined from 5.5% in 2009 to -2.3% in 2012, and is expected to
grow by 1.3% in 2013 (AMB, 2012).
Another threat is the fact that our product is considered a premium good. When the
economy is in a downward spiral, people won’t be spending money, especially on
premium gift baskets.
A food recall is a threat specific to the food industry. This could ultimately hurt our
business in two ways. First, we won’t be able to make some of our arrangements because
we will have missing ingredients. Second, it will hurt our reputation. If people
accidentally consume the ingredients before they’ve been recalled, they could get sick.
This will ultimately hurt our business because people wouldn’t want to buy our baskets.
Conclusion
Italians are known to enjoy the finer things in life. Panti Cosi Piccoli is exactly that—a
premium gift basket that encompasses Italian cuisine. Cultural, technological,
demographic, and consumer trends all point to an opportunity to introduce a creative way
to enjoy authentic food to the most populated city in Italy. With signature items, such as
our Caprese Fiore, we have conformed to Italian tastes. Though there are some external
and internal factors that are worrisome, we are confident our business will flourish in this
region. Panti Cosi Piccoli is a great opportunity for people to invest in because of its
potential to be engrained in the Italian gift-giving culture.
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