...[pic] |NesTLÉ REFRIGERATED FOODS: Contadina PIZZA | | | |Case Presentation | | | |MKT 6301 - Fall 2009 | |Prof. Abhi Biswas | | | |submitted by: | | ...
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...Nestle Refrigerated Foods: Contadina Pasta and Pizza Problem Statement In the late 1980s the refrigerated foods market was not as developed in the United States in comparison to the refrigerated food market in Europe. Refrigerated foods were a successful and emerging market in Europe and many global food manufacturers began to target the U.S. market due to the immense untapped potential for refrigerated food products. Nestle, one of the largest food companies in the world, operated in the United States as Nestle Refrigerated Food Company (NRFC) and had entered the U.S. market for refrigerated foods with Contadina Pasta and Sauces in 1987. Contadina Pasta and Sauces was very successful with sales of $50 million in the first year and $100 million in sales by 1990. To sustain the rapid growth, NRFC contemplated extending the Contadina brand product offerings with a refrigerated pizza product. Leveraging early success of Contadina pasta and sauces, Nestle developed two concepts to enter a growing Italian food market with a refrigerated pizza product. The two concepts were (a) a pizza kit only product and (b) a pizza kit with toppings product. With competitors also developing a refrigerated pizza product, Nestle needed to make a decision on which product to bring to market. We will evaluate the two concepts noted above and present the consumer, demand and competitive analysis as well as SWOT. We will look into alternatives and provide economic and qualitative evaluation and...
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...DISTRIBUTION CHANNEL The California Pizza Kitchen strategy to build a strong company with leadership position in the pizza industry decided to expand their distribution channel by not just having company owned business but utilizing franchises to expand their customer base. Franchising provides the ability to expand business rapidly at less of a financial risk. Profits are higher due to lower costs. Another channel is their high quality fast-casual concept called California Pizza Kitchen ASAP. The ASAP restaurants are smaller than the full service restaurants and offer a limited menu in attractive high traffic areas. They offer in-house dining or take out. This channel allows the company to get their product out to the consumer at a lower cost with smaller overhead (smaller rents, less employees, lower utilities). They also teamed up with Kraft Pizza a division of Kraft Foods another distribution channel, which has a line of frozen pizzas that are sold to supermarkets. These additional channels provide growth opportunities and name recognition. Currently, Kraft distributes pizzas in supermarkets focusing on markets in which the restaurants are located in from east coast in Georgia, Maine, to the west coast in Arizona, Nevada and California. The extensive development process involved input from CPK so that they maintained the quality of the restaurant in the frozen product. From the Kraft Manufacturing building, the pizzas are delivered by trucks equipped with...
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... Page 1 PROBLEM STATEMENT TruEarth has developed a frozen pizza product, but the brand manager and other executives are struggling with the decision to launch the product or not. Poor forecasting in the past has lead TruEarth to misstep with previous product launches; judging the correct volume will be critical. The team is aware that their rival, Rigazzi, has also tested a pizza concept and is not far from a product launch. EXECUTIVE SUMMARY The ready-‐made or semi-‐made meals market is mature, now reaching the late majority segment of the product life cycle. A segment of the ready made foods market is shifting away from mass produced, highly processed foods toward greater quality and authenticity. TruEarth has managed to differentiate itself and its products by targeting this niche, a segment of ready-‐made foods that is still experiencing sustainable growth. TruEarth is on...
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...Analysis There are various objectives facing the decision maker of TruEarth foods. It is vital to have set objectives before launching a product or even a brand. There needs to be a clear vision of where the company will be in the long and short term, as well as objectives on how TruEarth will run its business and market its products. The main objectives TruEarth needs to focus on are: project objectives, company objectives, personal objectives; long-term versus short term and also the explicitly stated versus implied objectives. The project objective for TruEarth is to successfully find the best way to enter the emerging whole grain pizza market and be the leader in this environment. As the health food industry has continued to boom, TruEarth needs to find the proper way to enter the fresh, healthy, non-frozen pizza market and appeal to those who want pizza, without the pre-existing health risks. As a company, TruEarth focuses their objectives on sustaining their competitive advantage over competitors in the healthy gourmet foods market when entering into the very profitable pizza market. TruEarth’s initial product launch of the Cucina Fresca brand of fresh cut pasta and sauces proved to be successful due to a first mover advantage in a market without a clear leader. The company must now decide what is going to sustain their competitive advantage: attempt to gain the first mover advantage in the pizza market by launching their product as quickly as possible, or take market research...
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...CRITERIA 1. Frozen Food Markets and Consumption SOURCE - “Global Frozen Food Market Analysis By Products Type And By Geography - Trends And Forecasts (2010 – 2015)” - http://www.marketsandmarkets.com/Market-Reports/global-frozen-and-convenience-food-market-advanced-technologies-and-global-market-130.html * is a study of global frozen food and beverage market. This report analyses the global frozen foods market on the basis of various products such as fruits and vegetables, soups, fish, meat and ready meals such as frozen pizza, frozen desserts, snacks and pasta. The ready meals segment accounts for the highest share (40%) in the overall frozen food segment. * Europe is the largest consumer of frozen foods while ROW segment is expected to have the highest growth rate due to the emergence of Australia, Brazil and Argentina as the new frozen food markets. * Convenience is driving the frozen food market sales globally. Consumers are looking forward for a healthy and less time-consuming meals .The presence of private labels act as a major challenge for the international brands to enter and establish themselves in the regional market. * The global frozen foods market was estimated to be $218.41 billion in 2010 and is expected to grow to $261.50 billion in 2015 at an estimated CAGR of 3.7% for the same period. * Frozen ready meals accounted for the largest market share in 2010 due to their wide product range, which includes frozen pizza, entrées, desserts...
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...Kraft Foods Inc. is the largest food and beverage company with headquarters in the United States, second in size only (worldwide) to Nestlé SA. Kraft markets many food brands in more than 155 countries. The company's core businesses are in cheese and dairy, snack foods and confectionary, beverage and convenience foods Cheese and Dairy Products One of Kraft's major dairy brands is the Breakstone's line. Breakstone's main products are cottage cheese and sour cream. Kraft produces dozens of varieties of natural and Parmesan cheeses, as well as American cheese slices under the "Kraft" name. They manufacture Light 'n' Lively cottage cheese and yogurt, as well as the Knudsen brand cottage cheese and yogurt. The Philadelphia cream cheese line rounds out Kraft Foods' main cheese and dairy products. εpoch Olives & Olive Oil Greek Premium Food Products, Exclusive Varieties of Greek Tastes www.elgea.com.gr Sponsored Links Snack Foods Kraft foods offers dozens of snack food brands, especially crackers, cookies, and other savory and sweet items, including the popular 100-calorie snack packs; Athenos brand feta cheese, hummus and pita chips; Arrowroot/Nabisco World snacks, including Ritz, Triscuit, and Wheat Thins crackers; Balance bars (sports nutrition bars); Barnum animal crackers; Cheez Whiz and Velveeta processed cheese-like products; Corn Nuts; Garden Harvest toasted chips; Honey Maid graham crackers; Kraft Cheese Nips and Handi-Snacks; Planters nuts; Red Oval and Premium crackers;...
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...Nestle Refrigerated Foods (“Nestle”) must determine whether or not to introduce a refrigerated “Pizza Kit” product. Nestle must address several issues prior to product rollout: •Unproven concept – crust packaged together with separate packets of cheese and sauce ready for home use was a new concept. •Product positioning—the Pizza Kit must be positioned to attract most of its customers from the takeout/delivered (75% of total market) segment. •Brand awareness & extension—the product is in the same ethnic food group as its pasta & sauce product, and could damage this product if it is a bad product. Nestle should bring the Pizza Kit concept to market and position it as a high quality, reasonably priced alternative to both the takeout/delivered and frozen pizza segments. The Pizza Kit concept registered a high probability of buying similar to that of Nestle’s successful pasta & sauce product, and the refrigerated pizza market is not currently serviced by its competitors. Further, Nestle has a sizable advertising budget to go along with the rollout. Year 1 Pizza Kit & Toppings sales are estimated at 22.0 million units for a total of $54.9 million. Sensitivities performed on Contadina’s brand awareness indicated sales of $50.9 million and $46.5 million for 15% and 5% awareness, respectively. Year 3 product volume and sales are estimated at 72.6 million and $193.4 million. However, Nestle could damage its current Contadina Pasta & Sauce product line if the Pizza Kit product is not received...
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...study: Nestle Refrigerated Foods Problem Statement: Nestle Refrigerated Food Company (NRFC) in the year 1990 while in the late 1980s the company has successfully captured the category by introducing refrigerated pasta and sauces in the markets which improved the shelf life of the earlier selling products in the U.S markets. NRFC is wondering whether or not they should launch a pizza product into the refrigerated foods market, and if it should have additional toppings sold separately or not. Objectives: Sustain the first-mover advantage Extend their product line Increase market share Alternatives: Maintain the status launch the Pizza Kit with toppings sold separately launch the Pizza Kit with no additional toppings sold separately Consequences of Alternatives: Recently, the company’s major competitor in the global markets ,Kraft is expected to launch refrigerated pizza in about six months .NRFC want to replicate the success of its earlier product to pizza market, NRFC has to launch its product well before Kraft to enjoy the first mover advantage over the competitor. The first option - Maintain the dominant status in pasta market, not entering the pizza market. The entry of pizza into the refrigerated food category was new as people never tried it. Because the Pizza market was dominated by restaurants where the people either ate it or carried for eating it at home. Therefore it will be more risky and costly for Nestle to enter the pizza market. Nestle could damage...
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...California Pizza Kitchen in 1985 in Beverly Hills, California. California Pizza Kitchen is a casual dining, full service restaurant concept that specializes in gourmet pizzas with unique topping combinations. At the end of the second quarter of 2007 they operated 213 locations in 28 states and in 6 foreign countries. The company derives its revenue from three sources: sales at company-owned restaurants, royalties from franchised restaurant, and royalties from a partnership with Kraft Foods to sell California Pizza Kitchen branded frozen pizzas in grocery stores. Although the restaurant industry was going through some difficulties California Pizza Kitchen was really successful, and the quarterly profit was over $6 million, quite a record for the firm. Management believed that its success was due to its dedication to guest satisfaction and menu innovation and sustainable culture of service. A creative menu with high-quality ingredients was a top priority at California Pizza Kitchen. In addition to creating its inventive menu, California Pizza Kitchen had an average check of $13.3, which was below the one of many of its upscale dining casual peers. Also California Pizza Kitchen spent 1% of its sales on advertising, far less than the 3% or 4% spent by the competitors (for instance Olive Garden or Chilli’s Red Lobster) management felt that its attention to the clients and the innovative menus resulted in free but more valuable word of mouth marketing. California Pizza Kitchen clientele...
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...UNIVERSITY OF OREGON INVESTMENT GROUP February 26th, 2010 Consumer Goods California Pizza Kitchen BUY Stock Data Price (52 weeks) Symbol/Exchange Beta Shares Outstanding Average daily volume (3 month average) Current market cap Current Price Dividend Dividend Yield Valuation (per share) DCF Analysis Comparables Analysis Target Price Current Price Summary Financials Revenue Operating Cash Flow Net Income 662M 2009A 44.6M 2009A 4.6M 2009A 9.41 – 17.44 CPKI / NYSE 1.25 24,183,000 400,876 365,975,000 $15.07 $0.00 0% $15.18 $17.73 $16.46 $15.07 BUSINESS OVERVIEW California Pizza Kitchen was founded in 1985 by Rick Rosenfield and Larry Flax in Beverly Hills, California. Twenty years later, California Pizza kitchen operates over 250 restaurants around the world and is still run by its initial founders. The largest portion of CPK’s restaurants are still located throughout California, however they are now located in dozens of states as well as internationally in Asia, North America and the Middle East. Almost all of California Pizza Kitchens revenues come from company owned full Covering Analyst: Ari Siegel Email: Asiegel@uoregon.edu The University of Oregon Investment Group (UOIG) is a student run organization whose purpose is strictly educational. Member students are not certified or licensed to give investment advice or analyze securities, nor do they purport to be. Members of UOIG may have clerked, interned or held various employment positions with firms held in UOIG’s...
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...Analysis COMPANY BACKGROUND General Mills (GSI) is the sixth largest food company in the world. The company currently operates in more than 100 foreign countries and employs over 35,000 people. . GSI manufactures and markets branded consumer foods worldwide and supplies branded and unbranded food products to the foodservice and commercial baking industries. The company manufactures cereals, yogurt, ready-to-serve soup, dry dinners, frozen vegetables, refrigerated and frozen dough products, dessert and baking mixes, frozen pizza, flour, fruit and snacks; and organic products, including soup, granola bars, and cereals; and ice cream and frozen desserts, and high fiber snacks. Its best knows product brands are Betty Crocker, Green Giant, Pillsbury, Old El Paso, Cheerios and Haagen-Dazs. It markets its products through its direct sales, broker and distribution a to grocery stores, mass merchandisers, membership stores, natural food chains, drug, dollar and discount chains, commercial and noncommercial foodservice distributors and operators, restaurants, and convenience stores. The company was founded in 1928 and is based in Minneapolis, Minnesota. GSI’s businesses are organized into three operating segments: U.S. Retail, International, and Bakeries and Foodservice. The U.S. Retail segment includes sales to grocery stores, mass merchandising, and membership stores such as BJ’s, Sam’s and Costco, natural food chains, drug, dollar and discount chains in the United States. The...
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...California Pizza Kitchen: Management of the Corporate Capital Structure FIN 6806: Seminar in Advanced Financial Management Dr. Anita Pennathur November 2nd, 2014 Table of Contents Case Summary …………. 3 Problem Statement …………. 4 Situation Analysis 4 Major Strategic Alternatives 5 Decision Criteria 6 Recommendation 9 Appendix 11 California Pizza Kitchen California Pizza Kitchen (CPK) is an American based restaurant which has made a name in serving different types of pizzas, pastas and fast food products. California Pizza Kitchen was established in 1985 in California near Beverly Hills. The company is not only dealing within the United States but it is also serving in six different foreign countries. California Pizza Kitchen has its own restaurants as well as it also has different franchises across the United States and also is involved in a partnership with Kraft Foods to sell its frozen pizzas in grocery stores. Restaurants of the California Pizza Kitchen have a friendly environment, delicious dishes and outstanding offerings. California Pizza Kitchen has its franchises in several countries that include China, Hong Kong, Malaysia, Singapore, Philippines and numerous others. California Pizza Kitchen has also opened in parts of South Korea and the Mexico City. The franchise owners give an advance of approximately $50,000 to $65,000 and furthermore, they also pay 5% of their sales to the California Pizza Kitchen as royalty payments. ...
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...Analysis COMPANY BACKGROUND General Mills (GSI) is the sixth largest food company in the world. The company currently operates in more than 100 foreign countries and employs over 35,000 people. . GSI manufactures and markets branded consumer foods worldwide and supplies branded and unbranded food products to the foodservice and commercial baking industries. The company manufactures cereals, yogurt, ready-to-serve soup, dry dinners, frozen vegetables, refrigerated and frozen dough products, dessert and baking mixes, frozen pizza, flour, fruit and snacks; and organic products, including soup, granola bars, and cereals; and ice cream and frozen desserts, and high fiber snacks. Its best knows product brands are Betty Crocker, Green Giant, Pillsbury, Old El Paso, Cheerios and Haagen-Dazs. It markets its products through its direct sales, broker and distribution a to grocery stores, mass merchandisers, membership stores, natural food chains, drug, dollar and discount chains, commercial and noncommercial foodservice distributors and operators, restaurants, and convenience stores. The company was founded in 1928 and is based in Minneapolis, Minnesota. GSI’s businesses are organized into three operating segments: U.S. Retail, International, and Bakeries and Foodservice. The U.S. Retail segment includes sales to grocery stores, mass merchandising, and membership stores such as BJ’s, Sam’s and Costco, natural food chains, drug, dollar and discount chains in the United States. The...
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...TruEarth Healthy Food Case Study Introduction to the case Company’s background TrueEarth was founded in 1993 in St.Louis ,Missouri, by Garreth Derosta a young entrepreneur . They offered high processed gourmet (focus on whole grain products offering both 60% and 100% whole grain pastas-cucina Fresca) authentic with great quality . Their product line was: Standard pastas Whole grain pastas Tomato based sauce Refrigerated pastas Pastas with blended ingredient The concept was successful ,and truEarth became a supplier to a number of gourmet groceries throughout the Midwestern United State by 1998 ,the Company had built a loyal regional following .Responding to Customer demand ,the company raised consumer awareness through several promotional programs using coupons ,magazine advertisement ,and in-store demonstrations. Product Development process: In its early years ,truEarth’s product development was informal and largely driven by intuition .the team enjoyed experimenting with new products and limited edition variations on a core recipes and batch process used to manufacture most products made it easy to experiment without affecting overall production. But as time passed the company underestimate the appeal of hit product and find itself struggling to keep up with the demand. The company’ research and development Idea generation Concept searching Product development and testing Qualification of volume About Cucina Fresca The cucina Fresca line was...
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