Biscotti Bakery (Competition)
Competition
It is partially the success of the competition which has stimulated the formation of The Italian Eatery. The most widely distributed product of similarity is Valentino Biscotti. In 1987, after four years of operation, Gianelli Co. was producing 16,000 biscotti daily. The company is now making 40,000 confections a day. In 1989, Gianelli Co. became a $3.6 million business. The market for biscotti in America has been firmly documented.
Valentino Biscotti are hard, meringue-like cookies. They are difficult to chew, unless dipped in a beverage to soften them. Biscotti Rosa are softer cookies with a buttery consistency. These cookies will hold their shape if dipped, but are easily chewed without dipping. This will encourage the choice of Biscotti Rosa by youngsters and senior citizens who may have difficulty with biscotti, and by others who prefer Biscotti Rosa's richer flavor.
Other competitors include The Marsella Baking Company, with a hard textured biscotti. The Marsella Baking Company is known for their savory toasts, not their biscotti. Two local companies, The Sweetery and Heart's Delight sell a harder and heavier version of the Biscotti Rosa. There are several Italian commercial imports, but none with the texture and taste of Biscotti Rosa.
The Biscotti Rosa single pack is priced at $.33-.42 which compares favorably to Gianelli's single package at an average of $.41 each. The standard cost of goods margin in the food manufacturing industry is 22-23%. In this price range, The Italian Eatery's margin averages 23%.
Although Gianelli Co. occupies a primary position in the market, the distinct differences in taste and presentation of Biscotti Rosa should allow an equally favorable status for The Italian Eatery. The initial advantage of Biscotti Rosa over Valentino Biscotti will be its captivating packaging. The ultimate advantage will be its more widely acceptable and addictive taste.
