Nestle Case

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ESTIMATED DEMAND FORECASTED
| OPTION 1: PIZZA & TOPPING| TOPPING| TOTAL PIZZA & TOPPNG| OPTION 1: PIZZA ONLY| Total Estimated Dollar Sales (Penetration of 24)| $ 46,110,180 | $ 8,400,000 | $ 54,510,180 | $ 35,200,000 | Total Estimated Dollar Sales (Penetration of 20)| $ 43,821,023 | $ 7,982,979 | $ 51,804,002 | $ 31,281,436 | Total Estimated Dollar Sales (Penetration of 15)| $ 40,959,575 | $ 7,461,702 | $ 48,421,277 | $ 29,142,096 | Total Estimated Dollar Sales (Penetration of 10)| $ 38,098,128 | $ 6,940,426 | $ 45,038,554 | $ 27,002,757 | Total Estimated Dollar Sales (Penetration of 5)| $ 35,236,680 | $ 6,419,149 | $ 41,655,829 | $ 24,863,418 | | | | | |

HOW WOULD YOU COMPARE THE PIZZA OPPORTUNITY TO THE PASTA OPPORTUNITY? To launch the first refrigerated branded pasta in the U.S market, Nestle took into action a lot of strategies in order to be the first mover in this market. First, Nestle acquired Carnation company whose Contadina brand was already positioned in the Italian ethnic food market with a strong image of authentic Italian food. Then, it acquired Lambert’s Pasta and Cheeses taking advantage of its quality recipes and packaging technology of fresh pasta. Given Nestle’s desire to keep building its refrigerated food category, and the success in revenues of fresh pasta, the company decided to capitalize its strength in Contadina brand and launch the new concept of refrigerated pizza as a brand extension of Contadina. To compare these two product launches, it is important to state the differences and similarities between these products. DIFFERENCES:

* Concept and distribution channels: Market potential might vary. Fresh pasta was important to consumers because it meant freshness and quality. However, it was only distributed by gourmet stores...
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