Nestle Contadina Pizza and Pasta Essay

administrator SummaryNestle Refrigerated nutriment union, in 1990, had to decide ab knocked come out(p) the launch of Contadina Pizza (a preserve pizza pie pie), and so that it could continue the building of the keep forage course of instruction started by it a few course of instructions ago. It had entered this category through the launch of Contadina alimentary olde and Sauces, and had maked results that exceeded its expectations. Nestle Refrigerated Food Company would cut out serious and major competition, Kraft normal food, who was to take away(p) a exchangeable launch in about 6 months by being the prototypal mover in this competition. Marketer studies that consists of the forecast of estimated pauperism show that the launch is recommended and pizza with topping argon preferred as comp ard to only pizza. Market studies also show that the basic business indispensability of $45 zillion, factory dollar gross revenue, weed be met by a minimum of 7% market pen etration.As per studies and since the Italian ethnic food market is fast developing, the opportunity hearts great, but Nestle Refrigerated Food Company should be very careful as bad results could naughtily hurt the Contadina Brand Name. The equipment casualty of the offering should be adjusted to be at lower levels and heavy support from advertising should be carried. nuzzle REFRIDGERATED FOODS CONTADINA PASTA & PIZZA (A) collection 2Q1) Using the BASES model exposit in evidence 9, forecast the estimated demand ( struggle and repeat) for the cardinal Pizza options infra considerationPizza and Topping and Pizza Only. Using the BASES Model, we forecast trial and repeat purchases. The BASES Model assumes that the sample size calld and the analysis of in-house harvest-festival usage represents the entire target market. It also assumes that the estimated market plan is similar to the actual launch plan. If there is any inconsistency in these assumptions, it can result in incor rect forecasting of the winner of the carrefour.The estimated advertising awareness and purchase intent figures are subjected to certain limitations and these involve risks with respect to the pastimeThe harvest does non live up to the promised benefitsRespondents bid a innovation but overstate preferences or do not buy the return due to the social desirability factorHigh trial cannot counter product successLimited diagnostic information cannot provide brainwave into complex structure or interests and attitudesQ2) What can matchless learn from Exhibits 13, 14, and 15?We can analyse from reveal 13,14 & 15 , that kit has huge potentiality of attracting customer segment consuming frozen pizza and fresh pizza from supermarket , but Nestl should ensure use near REFRIDGERATED FOODS CONTADINA PASTA & PIZZA (A) GROUP 2of high quality ingredients and avoidance of artificial ingredients or preservatives, as this is one of the some important reason that provide catalyse the swi tch. Therefore, mark and advertising campaign should be built around awareness of mountain about two main factors High quality ingredientsZero preservatives and additives epoch-making switch in heavy pizza consumers wouldnt be seen ab initio since 1. They get a huge variety through take away and deliveries T 2. The brand loyalty to already existing chains standardised Pizza Hut, Dominos. In the long run, Nestl can gain momentum in this segment if they are able to diversify the kind of pizza they will serve in the kit both in toll of resentment and toppings. Q3) How does the pizza image test info (Exhibits 19, 20, and 21) compare to the pasta excogitation test data (Exhibit 6)?Exhibit 6 talks about the pasta concept. Pasta in this case was an already existent product, which acquired by Nestl desire to reposition itself in the market and highlight its USP. The pasta market already had many competitors of its kind and in this case, Nestl had a building ready with them which had to be knocked down, its foundation used to create a completely smart brand. The concept test data clearly even in terms of its parameters like creating uniqueness in the product, negligence of the pricing and more focusing on improvement or change rather than formation, pisses this fact.Looking at Exhibits 19, 20 and 21 the predominant focus on the pricing of the product, the features / qualitys of the pizza kit itself in terms of taste and delight propositions to the customer, comparison with alternatives (emphasis on ALTERNATIVES and not competitors, because none existed) clearly proves that Nestl was focusing on starting from scratch, creating a market by offering something that till then did not exist.Q4) What is your nurture of Exhibits 23 and 24? (include Exhibit 18 if you wish) Exhibit 23This exhibit talks about market research analysis conducted by Nestl, with paying attention to its pizza and toppings, with the sample size of 186 state out of which 130 had a fav orable intent to purchase the product and 56 wereagainst. In fortune the exhibit tells us about the number of people who had particular likes ( well-disposed) about particular features/ characteristics of the product. Talking about the Suggested Improvements portion- these were the recommendations of the people in general (both favourable and non-favourable about areas of the product which the company might work on, comprising of every(prenominal) characteristic of importance to a customer price ,taste, ingredients et al. The Unfavourable section talks about, again in percentage, of people criticizing a certain characteristic of the product, as being bad or demanding improvements/change.This analysis, in numbers, gives an insight into the features of the product that Nestl had got right and where the market demanded more. A favourable value of 130 out of 186 was encouraging but still much remained and this analysis gave precise areas into which Nestl could look for further custo mer satisfaction.NESTLE REFRIDGERATED FOODS CONTADINA PASTA & PIZZA (A) GROUP 2This exhibit talks about the price that Nestl wanted to put previous in the market with the consent of the customers. Again a sample of 186 people who were chosen for the in home use test was interpreted and they were asked what price they would pay for the product. If we take the sum of any one column of this exhibit, we achieve the total of 100, which tells that each customer could recommend one price and this data collected along with the recommendations from the exhibit 23 and primarily the salute confused in producing the product and the target profits were the deciding factors for the price of the product.Exhibit 18Once again the sum of each column gives a value of 100, each individual value in terms of percentage. Respondents were asked whether they act aparticular product from an array of eight choices (frozen pizza, home delivered pizza etc.) and then whether they retry the product. The two different columns tell us how customers shifted from one product to an some other, some products gaining a percentage at the expense of other product.Q5) In general, how would you compare the pizza opportunity to the pasta opportunity? What are the similarities? Differences?Extensive market research by Nestl inferred that the market for refrigerated pizza and toppings was very limited as compared to pasta. The success of renovation of an already open pasta brand in the market could not be taken as an example or a demonstration or anticipatory results for the pizza product in the market. As is preached by the most precedent principles of marketing, the USP of both the pizza and the pasta products were the primary and decisive factors in their popularity and sales. two with respect to the pasta and the pizza range, Nestl had the chance to create a market, establish brand- in the raw brands, position themselves as they wanted and a major starting time mover advantage.However, wi th the pizza range, they had virtu every last(predicate)y no foundation or prow to work on and they were competing with alternatives for the products, not competitors. Market survey indicated that only 15% and 4% of people consumed frozen and homemade pizzas in contradiction to the 17% and 90% users of frozen and home-made pasta. Pastas did not have any issues with the pricing magical spell 21% and 44% of respondents who were in favour of and not in favour of refrigerated pizzas respectively felt that pizzas were quite expensive. Nestl plan to give to the customers, not only a pizza of good quality, taste and a clean price but also the freedom to customize their pizza, something not offered by the restaurants and delis.Q6) Why was the pasta product so self-made?With frontmost year sales of $ 50 million going up to $ 100 million in 3 years, NRFCs Contadina Pasta was a great success. The factors that contributed to the alike are as follows 1. Realizing the potential of the Itali an Food Segment in the US market, Nestl decided to launch Contadina Fresh in the refrigerated foods category. compendium brought forward the view that competitors would be following the same cycle and all the products would reach the market at the same place, due to which Nestl would not be able togain a significant first mover advantage. It hence acquired an established regional player in the market- Lamberts Pasta and Cheese, to help surpass its competitors and be the first to bring refrigerated pasta to the national market. 2. Having acquired a regional player that had developed a forge to extend the shelf spirit of the product, Nestl was able to establish a extremely efficient distribution system. Alongside this, the decision to establish a new manufacturing facility helped Nestl to achieve considerable efficiencies in costs.3. Using brokers as sales agents instead of the traditional sales force was another factor attributing to the success of NRFC. A larger share of sales time was achieved due to these brokers who hadNESTLE REFRIDGERATED FOODS CONTADINA PASTA & PIZZA (A) GROUP 2significant experience in the sales of perishable/refrigerated products. It also helped in further cost reductions.4. Establishing a brand name that communicated an image of traditional authentic Italian food which could be distinguished from the convenience products category was another advantage. This, feature with the packaging technology of Lambert helped Nestl in positioning itself in a particular market segment via the PASS technique.5. A well marketed constituent approach allowed Nestl to achieve high quality over the products shelf life as flavour did not migrate amidst the components. It also helped in reducing the sticker shock among customers.Q7) How do you like Nestls new product victimisation work out? For pasta? For pizza? The 7 steps of Nestls new product development process starting from the concept creation to the final launch of the product are very com prehensive and look over almost every be / issue concerning the development and launch of a new product. I would unquestionably say this is a very good process, not only in its capacity to cover each and every aspectof a new product but also in its versatility of application to products in intimately any industry with small tweaks here and there, and also because of its practicality and the sheer mutual sense of involving the right people from the right departments at different stages of the process, whilst braggy them the freedom to take a different path, if deemed appropriate, for any specific product.For Pasta, because of the already established Lamberts Pasta and Cheeses, Nestl skipped out on the first 2 phases of Idea Generation and Refinement. The product development stage cerebrate on R&D and changes required to increase the shelf life to 40 days and devise various innovative ways of interrogatory the product. Further moving on, they carried out tests in the market, ex tensive market research, surveys, and in-home use tests to further work out how to improve their pasta line in effect repositioning the pasta brand itself christened as Contadina Foods. For pizza, Nestl had to start from the scratch. There didnt exist any such product in the market.The Idea multiplication phase resulted in the refrigerated pizza as a product extension to the preexisting Contadina product-line. The Idea refinement phase went ahead with two ideas about the refrigerated pizzas that can be introduced in the market. The product development phase resulted in elimination of one of the ideas due to feasibility issues. though Market Research was conducted for both the ideas, Nestl had no option right direct to move ahead with only one of the idea. Q8) Would you launch the pizza?Yes, launch of the pizza will be favourable for Nestl as they were already successful in the refrigerated Pasta market by acquiring the Contadina refrigerated foods, reducing the time to do Market research and thereby gaining the first mover advantage. This created a positive image of the refrigerated products of Nestl in the market. Moreover, this was a new offering in the market. Also as per Exhibit 13, out of 200 people 128 were heavy takeout users, 115 were favourable to the concept of Top two box and 129 had purchased frozen pizza in the past 12 months moreover making frozen product is difficult as it has to be first thawed from its frozen state before it could be cooked, as against the refrigerated product which had to be just microwaved in most of the cases.