Contadina Pasta & Pizza
Case Brief:
After the great success of Nestle Refrigerated Food Company (NRFC) product Contadina pasta and sauces, NRFC was thinking to grab the growth opportunity through brand extension of Contadina. As in case Cunliffe stated “Contadina became the market leader in refrigerated pasta and sauces, but to continue our rapid growth, we need other new product opportunities”
NRFC had established certain guideline steps that might help them a lot in developing new successful product through out their business life. Those steps are as follow;
•
•
•
•
•
•
•
Idea Generation
Concept Screening
Product development
Quantification of Volume
Test Market
Commercial Evaluation
Introductory Tracking
By following these steps NRFC come up with the idea of Contadina brand extension by inducing “refrigerated pizza” in a line.
The case revolves around that either NRFC should launch refrigerated pizza/ pizza kit in the market or not? If yes, than with topping or without topping?
Question 1
(a)
If he should launch a pizza product;
Before taking a final decision to launch or not introduce refrigerated pizza in a market, first we have to analyze the market of USA, where NRFC wants to commercial its new product. Here we analyze the market with three perspectives;
1. Pizza market of USA
2. Competitor Perspective
3. NRFC’s perspective
1. Pizza Market:
Pizza is part of the large and rapidly growing Italian ethnic food category. Restaurants like Pizza Hut and Domino’s capture 88% of the $18.4 billion pizza market. Although
75% of the last 10 incidences of pizza consumption were delivered/takeout, 25% of the pizzas were purchased from a grocery store [frozen (16%), fresh (5%) or homemade
(4%)].
2. Competitor Analysis:
Globally, NRFC competes primarily with Kraft and Unilever; within the United States,
Kraft poses the largest threat. Kraft test-marketed a refrigerated pizza product when they