Nestle’ Refrigerated Foods:
Contadina Pasta & Pizza
This case study analyzes Nestle’ Refrigerated Food Company’s contemplation to the introduction of a refrigerated pizza product into the U.S. market. The industry that is being discussed is the frozen/refrigerated foods industry. This industry has many players including Nestle’, Kraft, Unilever, Healthy Choice, and a few others. Specifically, we are dealing with the frozen/refrigerated pizza market. This is a highly competitive industry. Each competitor must fight and strive to become the best and to increase market share. A main characteristic of this industry is convenience. Convenience is what consumers are looking for when they purchase frozen or refrigerated foods. An analysis of demand for refrigerated pizza and variations of it is included in this case study followed by a suggestion as to whether or not Nestle’ should go through with introducing the refrigerated pizza product to the U.S. market.
To summarize this case study up until now, main points and focuses were taken from the study. In 1990, the Nestle refrigerated food company contemplated the introduction of a refrigerated pizza product to the U.S. market. In 1987, Nestle’ had entered the refrigerated food market with Contadina pasta and sauces. The product had been very successful with sales of $50 million in its first year, and growing to over $100 million in sales by 1990. It was recognized that Nestlé’s rapid growth in the refrigerated pasta market must taper off as new competitors entered the market niche.
In 1993, Nestle’ was one of the world’s largest food companies with sales of over $37 billion. It’s 500 plants operated in 60 countries employing over 195,000 people producing a wide range of food and beverage products. Frozen foods usually have to be reheated or cooked from the frozen state. When stored at a temperature of zero degrees Fahrenheit, frozen foods have long shelf lives that can last...
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