Nfrc Research

MGMC01 Market Research

Nestle Refrigerate Foods: Contadina Pasta and Pizza Case

Luya Li (999651880)

Professor Dewan

2nd/October/2015

OVERVIEW AND PROBLEM STATEMENT

Nestle Refrigerated Food Company (NRFC) is a subsidiary of the largest international food company Nestle, S. A. NRFC entered the refrigerated food market in 1987 by acquiring Contadina Pasta. It soon became the market leader by having high-quality refrigerated food and first-mover advantage. However, as more competitors began to emerge, NRFC was forced to branch to new market. After referring to the new product development process, NRFC is attempted to introduce the new refrigerated pizza to the market and further expand its product lines.

The objective is to decide whether to launch the new product or not? If yes, which option should NRFC choose? Should they incorporate the topping option or not? How large will the market be and how much will the market share be?

However, before making the ultimate decision, NRFC should consider the following issues. First of all, People traditionally consume pizza in restaurants in freshly prepared forms. Refrigerated pizza was a new concept that most people are not familiar with. The success of this unproven concept is questionable. Second of all, take out and delivery accounts for 75% of the total pizza consumption. Therefore, it is important to correctly position the new product in order to attract more customers from these two segments. Lastly, since the product is perceived as a brand extension, NRFC should pay close attention to the quality standard of pizzas because low quality could potentially damage long built brand image.

Another major issue faced by Nestle is the competition from Kraft, who recently test-marketed its refrigerated pizza. If Kraft introduces the pizza in advance, NRFC may not secure its first-mover advantage.

ALTERNATIVES ANALYSIS

1. Launch vs. Not launch

a) Launch:

* Product and Market Analysis:

Originated from...