nestle
MKTG 6010 Nestle Refrigerated Foods: Contadina Pasta & Pizza Anthony Garver
Issue: In 1990, Nestle Refrigerated Food Company (NRFC) considered the release of a refrigerated pizza product into the U.S. market. Stephen Cunliffe, President of the NRFC, had managed the release of refrigerated pasta and sauce three years earlier, but this time faced production challenges, distribution challenges, and an unknown sales volume for the proposed product. Would there be enough demand for the pizza and would there sufficient sales volume to warrant moving forward with the decision?
The NRFC uses a seven-step process in product development as follows: idea generation, concept screening, product development, volume quantification, test marketing, commercial evaluation, and introductory tracking.
This process was intentionally flexible to allow product development teams to innovate effectively. Many times, NRFC’s marketing research department (MRD) would outsource volume determination to BASES, a marketing research firm. A BASES-I test (for volume) was used to project awareness and usage for pasta and sauce. MRD decided to use the more thorough BASES II test (Line Extension Study) for projecting sales volume of the pizza concept.
Prior to the launch of the pasta and sauce several surveys were conducted by BASES to test consumer likes and dislikes of the products. As referenced above, the pasta and sauce concept tests did not include taste tests. The majority of those surveyed “liked” the pasta and sauce concept with most having a “high intent” to purchase.
When pizza was tested it received similar subject approval. With the pizza, however, respondents who indicated they would “likely” purchase the pizza were allowed to take a sample home for trial. The respondent’s intent to purchase was very positive after the take-home trial.
The BASES II test for pizza sale volume was conducted in high-potential markets. This concerned the MRD as they felt the penetration
Issue: In 1990, Nestle Refrigerated Food Company (NRFC) considered the release of a refrigerated pizza product into the U.S. market. Stephen Cunliffe, President of the NRFC, had managed the release of refrigerated pasta and sauce three years earlier, but this time faced production challenges, distribution challenges, and an unknown sales volume for the proposed product. Would there be enough demand for the pizza and would there sufficient sales volume to warrant moving forward with the decision?
The NRFC uses a seven-step process in product development as follows: idea generation, concept screening, product development, volume quantification, test marketing, commercial evaluation, and introductory tracking.
This process was intentionally flexible to allow product development teams to innovate effectively. Many times, NRFC’s marketing research department (MRD) would outsource volume determination to BASES, a marketing research firm. A BASES-I test (for volume) was used to project awareness and usage for pasta and sauce. MRD decided to use the more thorough BASES II test (Line Extension Study) for projecting sales volume of the pizza concept.
Prior to the launch of the pasta and sauce several surveys were conducted by BASES to test consumer likes and dislikes of the products. As referenced above, the pasta and sauce concept tests did not include taste tests. The majority of those surveyed “liked” the pasta and sauce concept with most having a “high intent” to purchase.
When pizza was tested it received similar subject approval. With the pizza, however, respondents who indicated they would “likely” purchase the pizza were allowed to take a sample home for trial. The respondent’s intent to purchase was very positive after the take-home trial.
The BASES II test for pizza sale volume was conducted in high-potential markets. This concerned the MRD as they felt the penetration