123 School Work

problem faced by Nestle Refrigerated Food Company NRFC is a strategic decision on whether or not

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  Problem
  The problem faced by Nestle Refrigerated Food Company (NRFC) is a strategic decision on whether or not to launch their line of refrigerated pizzas.
  
  Issue Analysis:
  Looking at the past success of the Contadina pasta introduction, Nestle is hoping to repeat its success in the refrigerated pizza category. NRFC had used technology to develop a good product at a reasonable price, in a new food category. The highest market share goes to the first entrant in a particular market and so NRFC wants to be the first in the refrigerated pizza market. The refrigerated food market is growing at a rate faster than that of dry and frozen foods. Also, Nestle fears that since Kraft had already test-marketed a refrigerated pizza product and would be launching their product within the next 6 months, they needed to launch their product as soon as they could in order to try and grab the highest market share. Stephen Cunliffe, President of NRFC wants to know the numbers to ensure its business viability, what variants of the pizza product to launch, the size of the market he would find and what market share he would achieve.
  76% of the consumers sampled, said that they would be inclined to purchase the Pizza Kit & Toppings. Over 90% of the consumers found the product concepts to be at least somewhat new and different.
  
  
  
  
  Contadina Pizza Strengths
       Convenience and Perceived Quality to attract customers
       Established distribution system
       Contadina brand name that fits traditional values and image
       Large target market size
       First in Market
       Large financial investment possible
       Component Packaging
       Can be made exactly to consumers taste
       Variety of toppings and sauce
  Contadina Pizza Weaknesses
       More expensive
       Pizza toppings variety limited
       Initial tests proved that taste wasn't that good
       Temperature of products needs to be maintained
       Lower shelf life as compared to frozen pizzas
       No good nutritional value
  Contadina Pizza Opportunities
       First in Market
       The sale of toppings can also generate profit for Nestle
  Contadina Pizza Threats
       Takeout/ Delivery Pizza Chains, Frozen & Fresh Pizzas
       Competitors already test-marketed similar products
       Temperature of products needs to be maintained
  Alternatives:
  I would recommend that NRFC further re-evaluate the refrigerated pizza concept and do further testing before launching themselves into the market...