Nestle Case Analysis
Nestle Refrigerated Foods: Contadina Pasta &Pizza (A)
Case Assignment
Prepared by Group I
Ashish Kumar Dandale (1111093) Rohit Kumar Verma (1111139) Sloka Roy (1111146)
New Product Development Submitted to Prof. Ganesh Prabhu
23rd July, 2012
Introduction
This case first walks us through the journey of the launch of Refrigerated Pasta and Sauces by Nestle Refrigerated Food Company (NRFC) in the U.S. markets and then their decision to launch Refrigerated Pizza in 1990 based on various market researches carried out which have been described in detail. The company had previously been successful in capturing the market by launching refrigerated pasta and sauces in the markets. The launch of the Pasta and Sauces segment was accompanied by improving the shelf life of the earlier selling products in the U.S markets. The company purchased small local brands and their facilities to enter the new markets. They invested in their up-gradation to make the products compete at the national and international levels thereby saving a lot of time in just developing the product from scratch in any new markets. This gave them the first-mover advantage and helped them capture the market. The refrigerated pasta was an immediate success with retail sales of over $75 million in 1988 and $150 million by 1990. Having tasted success in the refrigerated pasta segment, the company is now contemplating whether to enter the refrigerated pizza market.
Problem Statements
1. NFRC had conducted the marketing research and studies based on the following: a. NRFC is trying to launch the refrigerated pizza based on the BASES study conducted only in the high potential markets (Northern and eastern parts of US) whereas their target market was estimated to 95.5 mm throughout the nation. b. NFRC assumed that since users of Contadina pastas & sauces were aware of the brand, they could estimate the brand awareness for Contadina among the users to be double that of the non-users and estimated
Case Assignment
Prepared by Group I
Ashish Kumar Dandale (1111093) Rohit Kumar Verma (1111139) Sloka Roy (1111146)
New Product Development Submitted to Prof. Ganesh Prabhu
23rd July, 2012
Introduction
This case first walks us through the journey of the launch of Refrigerated Pasta and Sauces by Nestle Refrigerated Food Company (NRFC) in the U.S. markets and then their decision to launch Refrigerated Pizza in 1990 based on various market researches carried out which have been described in detail. The company had previously been successful in capturing the market by launching refrigerated pasta and sauces in the markets. The launch of the Pasta and Sauces segment was accompanied by improving the shelf life of the earlier selling products in the U.S markets. The company purchased small local brands and their facilities to enter the new markets. They invested in their up-gradation to make the products compete at the national and international levels thereby saving a lot of time in just developing the product from scratch in any new markets. This gave them the first-mover advantage and helped them capture the market. The refrigerated pasta was an immediate success with retail sales of over $75 million in 1988 and $150 million by 1990. Having tasted success in the refrigerated pasta segment, the company is now contemplating whether to enter the refrigerated pizza market.
Problem Statements
1. NFRC had conducted the marketing research and studies based on the following: a. NRFC is trying to launch the refrigerated pizza based on the BASES study conducted only in the high potential markets (Northern and eastern parts of US) whereas their target market was estimated to 95.5 mm throughout the nation. b. NFRC assumed that since users of Contadina pastas & sauces were aware of the brand, they could estimate the brand awareness for Contadina among the users to be double that of the non-users and estimated
References: 1. http://www.nestleusa.com/ 7