...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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...[pic] |NesTLÉ REFRIGERATED FOODS: Contadina PIZZA | | | |Case Presentation | | | |MKT 6301 - Fall 2009 | |Prof. Abhi Biswas | | | |submitted by: | | ...
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...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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...Nestle Refrigerated Foods Company Case Summary Nestle Refrigerated Foods in 1990 was planning to introduce a refrigerated pizza product to launch in the U.S market after its successful enter to refrigerated Pasta and Sauces market in 1987. Nestle was accustomed to taking risks. Prior to launch of Contadina pasta and sauces, Nestle did the following: acquired a small company at a premium ensuring first-mover status invested heavily in distribution to avoid spoilage rates U.S market was undeveloped in 1987 utilized brokers to sell the products as opposed to conventional salesforce Prior to the launch of Contadina Pizza, however, a thorough check of business viability was in order. 1. Characters NRFC: Nestle Refrigerated Food Company, 100% subsidiary of Nestle Mr. Cunliffe: President of NRFC, hired in 1987 Carnation Co: a food company purchased by Nestle in 1985, put under NRFC Contadina: Carnation’s existing brand name for an Italian food product line Lambert’s Pasta & Cheeses: NY based incumbent local fresh pasta company purchased by Nestle in 1987 MRD: market research dept in Nestle helping its subsidiary’s new product development BASES: A market research company Nestle frequently uses in new product launch Kraft: Major competitor of Nestle 2. Time Line 1987: Nestle purchased Lambert’s and started survey of refrigerated pasta national market. 1988: Entered refrigerated pasta market using “Contadina” brand name, $75M retail sales. 1989: Refrigerated...
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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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...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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...the industry (see exhibit 4 page 143 or 19) - Background • 1987- Nestle’ enters the refrigerated food market by acquiring Lambert’s Pasta & Cheese. • Non—commodity refrigerated foods was a relatively undeveloped category in U.S in 1987 • Refrigerated foods were responsible for 7% of Nestlé's global sales despite little contribution from the potentially large U.S. Market Market Summary: Refrigerated Foods • Based on market research, Nestlé's decided to launch Contadina • Contadina Fresh Past & Sauces rolled out nationally in 2nd half of 1988 • Product launch was very successful: – $75 mil. Retail sales in 1988 – $150 mil. Retail sales by 1990 – Pasta line accounted for nearly 80% of sales volume Market Summary: Refrigerated Foods • Given Contadina’s success, the NRFC began a product development process for a refrigerated pizza concept • The pizza market was an $18.4 billion market • By 1989 NRFC developed 2 new pizza concepts – Pizza Kit – Preassembled, heat and eat Pizza Market Summary: Pizza • Pizza market Statistics: – 88% of all pizzas sold by restaurants – 60% of pizzas eaten at home – 76% of all U.S. families had eaten restaurant pizza w.in past 6 months – Pizza consumption strongest in northern and eastern parts of U.S. – 10,000(+) franchised pizza restaurants – 25,000 pizza outlets – frozen pizza market more fragmented w/o clear market leader Product Development: Pizza Kit • Kit included: – 12” crust – Sauce – Cheese – Sauce: Tomato...
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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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...Bus 252a Marketing Management Mondays and Wednesdays 2: 11:00 – 12:20pm Fall Semester 2014 International Hall Sachar Building Grace Zimmerman Senior Lecturer Email: gzimmerm@brandeis.edu Office: Lemberg 161 Office Hours: Mondays and Wednesdays 11:00 – 12:20 and 2:00 – 3:00 pm, or by appointment Brandeis University International Business School Course Description Marketing is the sum of the activities undertaken by a company to stimulate sales of its product or services with its customers. The marketing objective is to create, promote and distribute products or services, at a price and quality deemed valuable by the company’s customers, in order to create value and profit for the company. Maintaining a strong and compelling value proposition and long-term relationship with the company’s customers are vital for the company’s continued success and require constant monitoring of market, environmental, technological and competitive forces. Marketing is therefore integral to establishing a company’s strategic direction. This in turn makes marketing skills and perspective essential to the success of all business managers in any business. This course provides an in-depth exploration and practical application of basic marketing tools. These include product policy, pricing, promotion, distribution...
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...Bus 252a Marketing Management Mondays and Wednesdays 2: 11:00 – 12:20pm Fall Semester 2014 International Hall Sachar Building Grace Zimmerman Senior Lecturer Email: gzimmerm@brandeis.edu Office: Lemberg 161 Office Hours: Mondays and Wednesdays 11:00 – 12:20 and 2:00 – 3:00 pm, or by appointment Brandeis University International Business School Course Description Marketing is the sum of the activities undertaken by a company to stimulate sales of its product or services with its customers. The marketing objective is to create, promote and distribute products or services, at a price and quality deemed valuable by the company’s customers, in order to create value and profit for the company. Maintaining a strong and compelling value proposition and long-term relationship with the company’s customers are vital for the company’s continued success and require constant monitoring of market, environmental, technological and competitive forces. Marketing is therefore integral to establishing a company’s strategic direction. This in turn makes marketing skills and perspective essential to the success of all business managers in any business. This course provides an in-depth exploration and practical application of basic marketing tools. These include...
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...MGM C01 Market Research Fall 2013 Instructor Contact Information: Name: Tarun Dewan Office: IC 382 Office hours: Tuesdays and Thursdays 3 - 5 pm by appointment Email: tdewan@utsc.utoronto.ca Telephone: 416 208 2677 Class day/time: Tuesday, 11 - 1 pm Class location: IC 302 Course website: http://portal.utoronto.ca TA: Yifan Dai (Yifan.Dai11@Rotman.Utoronto.Ca) Course Description: Marketing research is studied from the perspective of the marketing manager. The course focuses on the initiation, design, and interpretation of research as an aid to marketing decision making. Case studies and projects are used to provide students with some practical research experiences. Prerequisite(s): MGMA01H3/(MGTB04H3) or MGIA01H3/(MGTB07H3) Exclusion: (MGTD07H3), MGT453H, RSM452H Textbook/Required Course Materials: Marketing Research: Methodological Foundations, 10th Ed. by Dawn Iacobucci and Glibert A Churchill (This text can be purchased from the bookstore or Online through Course Smart at the following url: http://www.coursesmart.com/IR/2047297/9781439081013?__hdv=6.8) A required case packet is available from https://cb.hbsp.harvard.edu/cbmp/access/20658242 Recommended: Ethnography for Marketers: A Guide to Consumer Immersion by Hy Mariampolski Lecture Notes and Other Announcements A course such as this is based on the premise that sharing issues and discussing them enhances learning. The course is based on discussion of cases in class, and bulk of the time...
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...1/22/07 3:37 PM Page i RP OS T ElletFM.qxp THE DO N OT C OP YO CASE STUDY HANDBOOK 1/22/07 3:37 PM Page ii DO N OT C OP YO RP OS T ElletFM.qxp 1/22/07 3:37 PM Page iii RP OS T ElletFM.qxp YO THE OP CASE STUDY HANDBOOK How to Read, Discuss, and OT C Write Persuasively About Cases DO N William Ellet Harvard Business School Press Boston, Massachusetts 1/22/07 3:37 PM Page iv RP OS T ElletFM.qxp Copyright 2007 William Ellet YO All rights reserved Printed in the United States of America 11 10 09 08 07 5 4 3 2 1 OP No part of this publication may be reproduced, stored in or introduced into a retrieval system, or transmitted, in any form, or by any means (electronic, mechanical, photocopying, recording, or otherwise), without the prior permission of the publisher. Requests for permission should be directed to permissions@hbsp.harvard.edu, or mailed to Permissions, Harvard Business School Publishing, 60 Harvard Way, Boston, Massachusetts 02163. The copyright on each case in this book unless otherwise noted is held by the President and Fellows of Harvard College and they are published herein by express permission. Permission requests to use individual Harvard copyrighted cases should be directed to permissions@hbsp.harvard.edu, or mailed to the Permissions Editor, Harvard Business School Publishing, 60 Harvard Way, Boston, MA 02163. OT C Case material of the Harvard Graduate School of Business Administration is made possible by the...
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...THE ON OT C OP YO CASE STUDY HANDBOOK RP OS T ON OP YO RP OT C OS T THE ON OT C Write Persuasively About Cases OP CASE STUDY HANDBOOK How to Read, Discuss, and William Ellet Harvard Business School Press Boston, Massachusetts YO RP OS T Copyright 2007 William Ellet All rights reserved Printed in the United States of America 11 10 09 08 07 5 4 3 2 1 No part of this publication may be reproduced, stored in or introduced into a retrieval system, or transmitted, in any form, or by any means (electronic, mechanical, photocopying, recording, or otherwise), without the prior permission of the publisher. Requests for permission should be directed to permissions@hbsp.harvard.edu, or mailed to Permissions, Harvard Business School Publishing, 60 Harvard Way, Boston, Massachusetts 02163. The copyright on each case in this book unless otherwise noted is held by the President and Fellows of Harvard College and they are published herein by express permission. Permission requests to use individual Harvard copyrighted cases should be directed to permissions@hbsp.harvard.edu, or mailed to the Permissions Editor, Harvard Business School Publishing, 60 Harvard Way, Boston, MA 02163. ON OT C Case material of the Harvard Graduate School of Business Administration is made possible by the cooperation of business firms and other organizations which may wish to remain anonymous by having names, quantities, and other...
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