Nestlé Refrigerated Foods: Contadina Pasta & Pizza
Marketing Management | Nestlé refrigerated foods: Contadina pasta & pizza | Case analysis |
Ahmed MAJT18/11/2010 |
Executive Summary
In a growing ethnic food category, NRFC is facing the decision of launching or not Contadina fresh pizza. Study has shown that business viability is closely depending on brand penetration rate which is not accurately measured. Moreover, NRFC try to get the first mover advantage to face the expected concurrence of Kraft. Product is facing positioning problem, and if the launch failed, it may affect brand awareness and be harmful to its pasta line. NRFC should resolve positioning problem by finding the right price that increase sales reduce dependency to brand parent and ensure product profitability.
Case Analysis
Nestlé was the first mover in the ethnic food category with its Contadina pasta product. It has pre-empted Kraft which was representing the potential competitor in the category. With the objective of maintaining a 2:1 share ratio, Contadina has taken benefit from first mover advantage to maximize its market share and to establish its brand reaching $150 millions in retail sales in 1990. Nestlé purchase of Lambert’s cheese and Pasta Company was the key element to succeed in the competition with Kraft, it takes advantage from the technical and marketing background of the already established company in fresh food. The competition between Kraft and Nestlé continue in the fresh pizza product line, and it adds more pressure for both companies to reduce time to market and to get the first mover advantage. Extending NRFC portfolio to pizza product line was a normal step to get access to the $16.2 billion market. Pizza consumption culture was already well established with estimated 76% all US families had purchased pizza from restaurant within the previous six month and 60% of pizzas were eaten at home. For this reason NRFC was aiming to build its business by gaining delivered and takeout market shares.
Ahmed MAJT18/11/2010 |
Executive Summary
In a growing ethnic food category, NRFC is facing the decision of launching or not Contadina fresh pizza. Study has shown that business viability is closely depending on brand penetration rate which is not accurately measured. Moreover, NRFC try to get the first mover advantage to face the expected concurrence of Kraft. Product is facing positioning problem, and if the launch failed, it may affect brand awareness and be harmful to its pasta line. NRFC should resolve positioning problem by finding the right price that increase sales reduce dependency to brand parent and ensure product profitability.
Case Analysis
Nestlé was the first mover in the ethnic food category with its Contadina pasta product. It has pre-empted Kraft which was representing the potential competitor in the category. With the objective of maintaining a 2:1 share ratio, Contadina has taken benefit from first mover advantage to maximize its market share and to establish its brand reaching $150 millions in retail sales in 1990. Nestlé purchase of Lambert’s cheese and Pasta Company was the key element to succeed in the competition with Kraft, it takes advantage from the technical and marketing background of the already established company in fresh food. The competition between Kraft and Nestlé continue in the fresh pizza product line, and it adds more pressure for both companies to reduce time to market and to get the first mover advantage. Extending NRFC portfolio to pizza product line was a normal step to get access to the $16.2 billion market. Pizza consumption culture was already well established with estimated 76% all US families had purchased pizza from restaurant within the previous six month and 60% of pizzas were eaten at home. For this reason NRFC was aiming to build its business by gaining delivered and takeout market shares.