...NestReport on Nestle’ Contadina pizza Nestle’ 14th October 2013 Table of Contents Overview 3 Introduction 3 How did Nestle’ come to the conclusion of launching its pasta and sauce? 4 Why did Nestle’ launch its refrigerated pasta and sauce? 4 How did Nestle’ win the battle against Kraft’s Di Giornio pasta and become the market leader? 4 Why should Nestle’ go ahead with introducing its refrigerated pizza? 5 Why should Nestle’ not launch refrigerated pizza? 6 Recommendations 6 Answers to the questions given for the case 7 Calculations: 9 Overview In 1989 after a lot of market research and analysis Nestle’ Refrigerated Foods (NRFC) bought a small company, Lambert, which had competency in manufacturing refrigerated pasta and sauce. Nestle’ rebranded the Lambert pasta as “Contadina pasta”, which was highly appreciated and accepted by the US citizens. Soon the revenue of NRFC jumped from $75 million to $ 150 million in a short span of two years. Taking a cue and inspiration from the success of the pasta, Nestle’ started exploring opportunities to launch its refrigerated pizza. This report will analyse the reasons behind the success of the pasta and conclude whether Nestle’ should diverse into the refrigerated pizza market or not. Introduction Founded in 1866, Nestle by revenue is the worlds’ largest food and beverages company. With its headquarters in Vevey, Switzerland, it has diverse product lines such as: Dairy products, confectionary, refrigerated...
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...[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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...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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...Introduction Nestle Refrigerated Food Company, after having successfully launched and captured market share in the refrigerated pasta category, has to decide about the launch decision of refrigerated pizza in the US market. One of the significant reasons for the successful results of the refrigerated pasta launch was that there was no clear leader in this segment and that Nestle bought out an existing business and launched its pastas much earlier thus gaining first mover advantage. To achieve the same success in Pizza Market, NRFC has to consider several factors like whether the Pizza and Toppings be launched or only the Pizza, break-even size of the market for this segment and desired level of market share. This launch decision is imminent because there is a high chance of its competitor Kraft General Foods Inc. launching its pizza in the market. Analysis The bottom-line revenue to generate for the launch to be successful and the company to break even amounts to $45 million. Appendix mentions the calculations for both the options i.e. Pizza and Toppings and Pizza Only. Pizza and Toppings a) Pizza Units Calculation Consider the case of Pizza and Toppings. The case mentions that the penetrations would be in the range of 5%-25%. Assuming a penetration of 15% of total US households which is 95million. Number of Users (15% of 95 million) = 14,250,000 Definitely Buy = 30% Probably Buy ...
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...TruEarth Case 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...
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...Chapter-1 | Introduction | Nestlé is a multinational food processing industry headquartered in Vevey, Switzerland. Nestlé has around 461 factories, operates in 83 countries, and employs around 330,000 people. It is the largest food company in the world measured by revenues. Nestlé Logo Nestlé Logo Nestlé’s products include baby food, breakfast cereals, chocolate, coffee, culinary, dairy, drinks, confectionery, ice cream, bottled water etc. Twenty nine brands of Nestlé are available throughout the world including Nescafe, KitKat, Smarties, Nesquik, Nespresso, Maggi etc. Key information regarding the company is mentioned below: Type Societe Anonyme Industry Food Processing Founded Anglo-Swiss condensed Milk Company (1866) Farine Lactée Henri Nestlé(1867) Nestlé and Anglo-Swiss Condensed Milk Company(1905) Founder(s) Henri Nestlé, Charles Page, George Page Headquarters Vevey, Switzerland Area served Worldwide Key People Peter Brabeck-Letmathe (Chairman) Paul Bulcke (CEO) Operating $11.55 billion (2012) income Employees 330,000 Website www.nestle.com 1.1 Nestle History Henry Nestlé Henry Nestlé The key factor which drove the early history of the enterprise that would become The Nestlé Company was Henri Nestlé's search for a healthy,economical alternative to breastfeeding for mothers who could not feed theirinfants at the breast.In the mid-1860s Nestlé, a trained pharmacist began experimenting with variouscombinations of...
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...introduction of Cucina Fresca, a fresh whole grain pasta meal kit sold through supermarkets. By the end of 2007, sales had reached $23 million, making it the most successful product launch in company history. However, growth had slowed in 2008 as competitors began offering similar products. Sustaining a competitive edge in the fresh Italian food category required continual innovation and, as a result, TruEarth had invested heavily in its pizza offering. Eckstein observed: We were aggressive in launching Cucina Fresca. We made a significant investment in new manufacturing equipment and the distribution infrastructure required to get fresh food to shelves quickly. Being a small company competing against Nestle and Kraft is not easy, but we do not make rash decisions. The success of Cucina Fresca was a calculated risk based on significant research. We think we can achieve similar success with pizza, but we will need to take a hard look at the numbers. Company Background TruEarth was founded in 1993 in St. Louis, Missouri, by Gareth DeRosa, a young entrepreneur. DeRosa saw an opportunity to market healthier gourmet pastas and sauces made from superior ingredients: In the 1980s, demand for healthy, gourmet products grew sharply. We saw a segment of the market shift away from mass-produced, highly processed foods toward greater quality and authenticity. It was a special opportunity for us because we knew we could deliver what more and more...
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...MARKETING INFORMATION: MANAGEMENT AND RESEARCH MKTG 652 Instructor: Srini S. Srinivasan Office: Matheson - 502D Office Hours: Will be announced in the class. Reading Materials: Reading Packet from www.xanedu.com (Please go to the last page for further details). Course Objectives: The course objectives are to: ✓ Expose students to the various aspects of marketing research. ✓ Solve simple marketing research problems. ✓ Offer experience in executing a marketing research project. Pre-requisites: Students taking this course are expected to have completed a statistics course. To help you refresh your memory, a note on important statistical underpinnings is given here. Please read this and come prepared to the class. Method of Instruction: We will be using a combination of lectures, student discussions, case analyses, data analyses and projects. The emphasis will be on the students’ involvement and participation both individually and in groups. Given the graduate level of the class, students are expected to read the assigned material and come prepared to discuss them. Students can expect to work for at least 2 hours outside the classroom (in reading assigned materials, meeting with groups for their project work to perform necessary brain storming/data collection/data analyses and library research) for each hour of classroom time. Students, as part of a group will be responsible for ✓ Research Project. ✓ Case...
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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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...Nestlé Group 2007 Company profile Switzerland’s largest industrial company World headquarters: Vevey (Switzerland) 480 factories; 276 000 employees www.nestle.com The leading Nutrition, Health and Wellness Company The Nestlé Story – all the way to Nutrition, Health and Wellness 1866 Foundation of Anglo-Swiss Condensed Milk Co. 1867 Henry Nestlé’s Infant cereal developed 1905 Nestlé and Anglo-Swiss Condensed Milk Co. (new name after merger) 1929 Merger with Peter, Cailler, Kohler Chocolats Suisses S.A. 1934 Launch of Milo 1938 Launch of Nescafé 1947 Nestlé Alimentana S.A. (new name after merger with Maggi) 1948 Launch of Nestea and Nesquik 1969 Vittel (initially equity interest only) 1971 Merger with Ursina-Franck 1973 Stouffer (with Lean Cuisine) 1974 L’Oréal (associate) 1977 Nestlé S.A. (new Company name) Alcon (2002: partial IPO) 1981 Galderma (joint venture with L’Oréal) 1985 Carnation (with Coffee-mate and Friskies) 1986 Creation of Nestlé Nespresso S.A. 1988 Buitoni-Perugina, Rowntree (with Kit Kat) 1990 Cereal Partners Worldwide (joint venture with General Mills) 1991 Beverage Partners Worldwide (joint venture with Coca-Cola) 1992 Perrier (with Poland Spring) 1993 Creation of Nestlé Sources Internationales (2002: Nestlé Waters) 1997 Creation of Nutrition Strategic Business Division (2006: Nestlé Nutrition) 1998 Sanpellegrino and Spillers Petfoods Launch of Nestlé Pure Life 2000 PowerBar 2001 Ralston Purina 2002 Schöller and Chef America Dairy Partners Americas...
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...TruEarth Healthy Foods: Market Research for a New Product Introduction Isabel Eckstein strode toward her office, inhaling the aroma from the test kitchen where the product development team was trying new recipes for TruEarth, maker of gourmet pastas, sauces, and meals. Her team had been working hard for the past year on a fresh whole grain pizza. The final market research results had arrived, and it was time to make a decision on launching the product. In 2006, Eckstein, a brand manager, had led the introduction of Cucina Fresca, a fresh whole grain pasta meal kit sold through supermarkets. By the end of 2007, sales had reached $23 million, making it the most successful product launch in company history. However, growth had slowed in 2008 as competitors began offering similar products. Sustaining a competitive edge in the fresh Italian food category required continual innovation and, as a result, TruEarth had invested heavily in its pizza offering. Eckstein observed: We were aggressive in launching Cucina Fresca. We made a significant investment in new manufacturing equipment and the distribution infrastructure required to get fresh food to shelves quickly. Being a small company competing against Nestle and Kraft is not easy, but we do not make rash decisions. The success of Cucina Fresca was a calculated risk based on significant research. We think we can achieve similar success with pizza, but we will need to take a hard look at the numbers. Company Background ...
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...Introduction In the 90s, Nestlé had to face significant challenges in maintaining its growth rate. The population was indeed stagnant, the war on prices and consumer bargain threats were fierce, and there has been increased emphasis on local and farm-to-table products in the developed western countries. The power is shifting from large scale manufacturers to short distribution channels in these countries. Consequently, to remain "the world's leading nutrition, health and wellness company" and keep high market shares, Nestlé wrote a new international strategy : the company decided to focus on emerging markets like China (rather than North American or European countries). Drivers are clear : with nearly 1500 billion inhabitants, increasing standards of living, and more friendly governmental policies, China is an attractive country and has market potential for Nestlé. In this report, I will explain Nestlé's international strategy in the Chinese ice cream market, and the different moves and tactics it used to compete with local brands in the first times. I will then discuss the effectiveness of the strategy and I will conclude with Nestlé's new international business strategy in China. Nestlé's strategy in the Chinese ice cream market : an unusual entry-mode Founded in 1905 by the merger of the Anglo-Swiss Milk Company, Nestlé is a Swiss multinational. With more than 450 manufacturing facilities in over 80 countries spread over 6 continents, Nestlé is a global brand leading...
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...resemblance to actual persons or entities is coincidental. There are occasional references to actual companies in the narration. Copyright © 2009 President and Fellows of Harvard College. To order copies or request permission to reproduce materials, call 1-800-545-7685, write Harvard Business Publishing, Boston, MA 02163, or go to http://www.hbsp.harvard.edu. This publication may not be digitized, photocopied, or otherwise reproduced, posted, or transmitted, without the permission of Harvard Business School. V. KASTURI RANGAN SUNRU YONG TruEarth Healthy Foods: Market Research for a New Product Introduction Isabel Eckstein strode toward her office, inhaling the aroma from the test kitchen where the product development team was trying new recipes for TruEarth, maker of gourmet pastas, sauces, and meals. Her team had been working hard for the past year on a fresh whole grain pizza. The final market research results had arrived, and it was time to make a decision on launching the product. In 2006, Eckstein, a brand manager, had led the introduction of Cucina Fresca, a fresh whole grain pasta meal kit sold through supermarkets. By the end of 2007, sales had reached $23 million, making it the most successful product launch in company history. However, growth had slowed in 2008 as competitors began offering similar products. Sustaining a competitive edge in the fresh Italian food category required continual innovation and, as a result, TruEarth had invested heavily...
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...Good Food, Good Life Nestle • Nestlé was founded in 1867 by Henri Nestlé in Switzerland • Merged with the Anglo-Swiss Condensed Milk Company in 1905 • Today it is the world's largest and most diversified food Company, and is about twice the size of its nearest competitor in the food and beverages sector. • Nestlé employ around 250,000 people from more than 70 countries and have factories or operations in almost every country in the world Nestlé Principle • Nestlé is based on the principle of decentralization, which means each country is responsible for the efficient running of its business - including the recruitment of its staff. Nestle India Products Nestlé India - Famous brand names Milk Products & Nutrition Nestle Milk Nestle Slim Milk Beverages Nescafe Classic Nescafe Sunrise Premium Prepared Dishes & Cooking Aids MAGGI 2-MINUTE Noodles MAGGI Imli Pichkoo Chocolates & Confectionary Nestle Kitkat Nestle Munch Nestle Dahi Nestle Bhuna Jeera Raita Nestea Nestle Milkmaid Nescafe Cappuccino Nescafe Sunrise Nestea Iced Tea MAGGI Sauces MAGGI Healthy Soups MAGGI CUPPA MANIA MAGGI Vegetable Atta Noodles Nestle Bar One Nestle Milky Bar Nestle Polo Nestle Eclairs Nestle Everyday Whitener MAGGI Pazzta Distribution System • Competitive edge over its existing rivals. • Nestlé has its own distribution networks equipped with all necessary transportation facilities. • They transport their products at major regional sales offices, which are situated...
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