Strategies And Profitability in The Market Price Of Oil Extra Virgin Olive Oil: A Model Analysis through The Scanner Data

Abstract

Given the recent changes in olive oil market and the growing importance of Distribution for commerce and for private labeling strategies, our work aims at conducting a market analysis that studies the competition within the sector and foresees the profitability of the different possible business strategies. The study refers to the industrial organization theory and estimates olive oil demand in order to calculate the price cost margins. The main findings concern low expectation about price wars. In general private labels seem to perform better then multinational strategies. Small-medium enterprises are less competitive but still able to survive in the competitive arena.

Keywords: Price's strategies, Industrial and distribution strategies, olive oil market, scanner data, econometric models, food market analysis

JEL Classification: C53, D30, L11, L12