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Nestle Case Analysis

In: Business and Management

Submitted By anteaters3232
Words 2948
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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 talk about marketing implications. After the throughout analysis and evaluation of the case, we will present our recommendations and plan of action.
Problem statement: Should NRFC introduce a refrigerated pizza product and if so, which product concept should NRFC launch; (a) pizza kit with toppings or (b) pizza kit only?

Consumer and Demand
In 1987, non-commodity refrigerated goods…...

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