Nestle | Reridgerated Food Products Case Study

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  • 1. Case Study Analysis Product Management Semester 2 | PGP 19 Nestle Refrigerated Foods Contadina Pasta and pizza Rohit Rohan | Tarini Bandhu | Puhoop Agarwal | Soumya Prem Sidharth Uchil | Daksh C. Kalia | Aditi Garde | Medhavi Khanna
  • 2. The Contadina Pasta story | What worked   Product development  Market expansion + New Product  7 stage process  Fresh Pasta v/s Dry Pasta  Frozen v/s Refrigerated  Hygiene and quality  Acquisition of Lambert’s..  Testing and Branding  Marketing and distribution  Focus on marketing  Invested heavily in distribution  Manufacturing, distribution, sales  Used brokers  “Contadina”  Experimented with new sales force  ‘authentic’  $25mn in advertising and  ‘Italian food’ promotion  ‘traditional’  BASES study  North and East US Segmenting  Targeting  18+ women  Growing Italian food segment  Within 100 miles of sales site  Ethnic food consumers  Primary shoppers  Homemakers  Positioning  Ordinary main meal  Quality product  Light meal / side dish  Convenient  Staple food
  • 3. Contadina Pasta and Contadina Pizza Comparative Study Contadina Pasta  Pasta is a dish that people preferred to have at home  Consumers pasta could prepare-and-have agreed with the proposed pricing of Contadina Pasta Contadina Pizza  Pizza is a dish people having outside while dining  Pizza is an item that people like to eat but not prepare-and-eat  People  The A  No  Targetted  Possible clear positioning of the product was visible to the general consumer segments as a ‘family food’ product proposed pricing of Contadina Pizza was seen as high clear positioning of Contadina Pizza visible segment differences
  • 4. Contadina Pasta and Contadina Pizza concept test data findings  The market opportunities in the case of Pasta, are not available for pizza  Most of the pizza consumption is in the form of take-outs  88% pizzas are sold by restaurants and large pizza franchises like Pizza Hut and Dominoes including numerous regional and local retail outlets  Market survey indicate that only 15% and 4% of those surveyed consumed frozen and home-made pizza against the 17% and90% users of frozen and home-made pastas  Thus the market available for refrigerated pizza was limited to 15%.  However there is scope for offering varieties in crust and toppings for refrigerated pizza considering the limited choice of combinations of crust and toppings available in the restaurants and retail markets.
  • 5. Contadina Pasta and Contadina Pizza concept test data findings  Despite being an entirely new product in the market, Contadina pastas had a favourable responsefrom the users  The percentage of respondents who indicated a high probability of buying is almost the same in concept testing for Contadina Pastas and Contadina Pizza & Toppings (75%and 76% respectively)  The percentage is lower (58%) in case of Contadina Pizza-Only  Comparing the concept test data for Contadina Pastas and Pizzas we see that the ratings for likability and concept uniqueness is same  Respondents have rated availability of variety, ease & quickness in preparation, freshness, general taste and flavor as the major attributes in refrigerated pasta and pizza.
  • 6. Contadina Pasta and Contadina Pizza concept test data findings  Major contrast observed in the concept test data for Pastas & Pizzas is the pricing  Respondents in favor of Pastas did not have issues with pricing of units (only 3% of favourable and 23% of unfavourable thought they were expensive)  However, in case of Pizza, both respondents in favor and not in favor of refrigerated pizza quoted the units were too expensive (21% and 44 %respectively
  • 7. Contadina Pizza Inferences from test feedback  Given the complications with frozen pizza, it should be dropped  ‘Pizza kit = Pizza + toppings + extras’ is a better proposition  Out of 200 people, 115 gave favourable responses for the pizza kit  According to the mean concept attribute rating, 304 people were in favour of the product; 95 were not  For all attributes, ratings are high for favourable  People with unfavourable feedback also agree that the product will be quick and easy to prepare and consume  ..also, tastier than frozen pizza
  • 8. The problem at hand..  To launch or not to launch..  Kraft about to launch their pizza in 6 months..  Contadina requires 0.3% of market share to break even
  • 9. So......... •18+ men and women YES! •Married and single •Working mass •Variety in taste for the segment •Strivers •Local marketing** •Experiencers •Makers •Benefit/attribute •Less pricing •Price positioning •-Undifferentiated marketing •$6.00 for crust, cheese, sauce •Family food for fun, light occasions •Authentic, real pizza at home •Quality and convenience •$1.30 for extra toppings