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Essay / Nestle Refrigerated Food Case Report - 1410
Nestle Refrigerated Food Case ReportIntroductionThe case illustrates the various studies and market studies carried out for the introduction of refrigerated pizza into the refrigerated food category in the markets American by Nestlé Refrigerated Food Company (NRFC) in 1990, while in the late 1980s the company managed to conquer this category by introducing refrigerated pastas and sauces to the markets, which improved the shelf life conservation of products previously sold on American markets. The company believes in purchasing small local brands and there facilities to penetrate the new markets and then invest in them to make their products competitive nationally and internationally. This saves the company a lot of time by simply developing the product and starting from scratch in any new market. This also helps to gain first mover advantage and capture the market. The refrigerated pasta was an immediate success with sales of over $30 million in the first year and $100 million in the second year. The company now intends to enter the pizza market and Stephen Cunliffe, the chairman of NRFC must make the decision whether or not to launch the pizza. in the US market or notProblems• The major problem in this case is to decide on the basis of market research whether or not to launch refrigerated pizzas in the US market, i.e. the company must decide whether it can replicate the success of its previous product i.e. Refrigerated pasta in the pizza category also or not • Refrigerated Food Company (NRFC) anticipates that with the entry of new competitors into the market refrigerated pasta, pasta market growth may decline. • The company's main competitor in global markets Kraft is expected to launch refrigerated pizzas in about six months, so the company must launch its product well before then to benefit from the first-mover advantage over its competitor. Analysis• Contadina is an established brand in the industry in the refrigerated food segment which manufactured and distributed pasta before the ranges introduced by Nestlé which repositioned it so that people were familiar with its pasta products whereas it n 'wasn't in the pizza business and had to start from scratch, so that advantage was missing, which was useful in the previous case of pasta.