Nestle Refrigerated Foods
Contadina Pasta & Pizza(A)
Nestle Refrigerated Foods
The case illustrates the various studies and market researches done for the introduction of refrigerated pizza to the refrigerated food category product in the U.S. markets by Nestle Refrigerated Food Company (NRFC) in the year 1990 while in the late 1980s the company has successfully captured this category by introducing refrigerated pasta and sauces in the markets which improved the shelf life of the earlier selling products in the U.S markets
The company believes in purchasing small local brands and there facilities to enter the new markets and then invest in there up gradation to make their products compete at the national and international levels. This saves company a lot of time in just developing the product and starting from scratch in any new markets .This also helps in gaining first movers advantage and capturing the market. The refrigerated pasta was a immediate success with sales of over $30 million in the first year and $100 million in the second year
The company now intends to enter the pizza market and Stephen Cunliffe, the president of NRFC has to take decision on whether to launch the pizza in the U.S market or not
• The major problem in the case is to decide on the basis of market researches whether to launch refrigerated pizza in the U.S. market or not i.e. The Company has to decide whether it can replicate the success of its earlier product i.e. Refrigerated pasta to the pizza category also or not
• Refrigerated Food Company (NRFC) anticipates that with the entry of new competitors in the refrigerated pasta market there can be decline in its growth of the pasta market
• The company’s major competitor in the global markets Kraft is expected to launch refrigerated pizza in about six months so the company has to launch its product well before it to enjoy the first mover advantage over the competitor
• Contadina is an established brand in the industry in the refrigerated food segment which manufactured and distributed pasta before the ranges being introduced by nestle which repositioned it so the people were familiar with its pasta product while it was not into the pizza business and had to start that from scratch so that advantage was missing which was helpful in the earlier case of pasta.
• The decision have to be made whether the pizza and toppings would be packed and sold in the same packing or they would they be available separately to the customers or both options would be available with the customer
• On comparing the data of the Pizza kit sample the findings were in favor of take out pizza rather than Contadina kit. The take out pizza scored high ratings on almost every aspect surveyed ,easy to prepare , convenient, add taste etc. which meant that product awareness was need among the target customers
• In an study done for finding the awareness of pizza kits among the Contadina’s pasta & sauces users versus non user it was found that only 60% of its present users knew about its pizza & toppings launch and only 30% of nonusers of the brand product were aware of it which indicated there was a large opportunity in further enhancing the sale of the pizza than it was projected by increasing the awareness of the product among both the users and non users of the brand which is obviously possible
• Pasta and pizza were different in the sense that people habits were different while purchasing each of them so the results shown by pasta after its launch were not a guarantee for the similar results with pizza
• Pizza was however part of Italian ethnic food industry ,it is mostly available (before the launch by nestle) in frozen , deli made and freshly prepared...