Reference no: EM132275091

Bertolli, an Italian leading companies in sales of olive oil, will be the primary player in the project "PREMIUM EXTRA VIRGIN OLIVE OIL" financed by the European Union. The main purpose of the project is to promote consumption of top-quality olive oil and consequently motivate trade in extra-virgin olive oil between the European Union and Latin America. The main theme specifically relates to the contribution made by technological innovation to the production chain of extra virgin olive oil, which has permitted product differentiation between so-called "standard" olive oil and "premium" extra virgin.

The event related to the project will be held in the city of Santiago in Chile from 21 February to 14 March 2019 and in Mendoza in Argentina from 27 to 30 March 2019, with talks given by leading companies in the sector. Bertolli will be presenting the company describing its activity: from selection of raw materials to bottling through processes with quality standards that are higher than those required by law; through its marketing and internationalization strategies that have led to its great success in Italy and throughout the world; presenting its philosophy of innovation, which always respects tradition and is based on market segmentation and the diversification in its product portfolio to meet all the needs of its consumers and of organized distribution. Dott.ssa Alissa Mattei (Bertolli Research & Development Director) will give special importance to the research that for years Bertolli has dedicated to the world of olive oil and in particular to the study of the nutrition, chemical-physical and organoleptic aspects of this product. During the talk she will illustrate the steps that Bertolli has taken to estimate market potential and potential gaps in Latin America and will highlight the importance of improving consumers' perception of high-quality products.

In order to help Alissa Mattei, her assistant Chiara's been asked to come up with a report understanding thereasons of the dissatisfactory performance of extra-virgin olive oil in the market of olive oil in Latin America in 2018.

During the project preparation, Chiara discovered that 75 percent of the 562m Latin American population have currently access to food and cooking facilities, while a 80 percent penetration is foreseeable.

She found that Latin Americans use extra-virgin olive oil only 1 instead of 2 times a week, because they also use standard olive oil, and quantity use for each meal is only 10 ml of extra-virgin olive oil compared to 20 ml in other countries.

Question: Chiara will be asked by Alissa Mattei about her opinion of the dissatisfactory performance of extra-virgin olive oil in Latin America in 2018. Help her to identify the main reasons of the dissatisfactory performance, considering that Bertolli sells one-liter bottles. (hints: calculate the potential market, the primary demand, the first level gap, the opportunity gaps and the level of market absorption. Provide the %. Interpret the results of the analysis).