Premium Essay

Contadina Pasta and Pizza

In: Business and Management

Submitted By fbfsk8
Words 557
Pages 3
Key numbers
- 75% of the 301 surveyed likely to purchase the product against 61% of the industry (see exhibit 4 page 143 or 19)
-

Background
• 1987- Nestle’ enters the refrigerated food market by acquiring Lambert’s Pasta & Cheese.
• Non—commodity refrigerated foods was a relatively undeveloped category in U.S in 1987
• Refrigerated foods were responsible for 7% of Nestlé's global sales despite little contribution from the potentially large U.S. Market
Market Summary: Refrigerated Foods
• Based on market research, Nestlé's decided to launch Contadina
• Contadina Fresh Past & Sauces rolled out nationally in 2nd half of 1988
• Product launch was very successful:
– $75 mil. Retail sales in 1988
– $150 mil. Retail sales by 1990
– Pasta line accounted for nearly 80% of sales volume
Market Summary: Refrigerated Foods
• Given Contadina’s success, the NRFC began a product development process for a refrigerated pizza concept
• The pizza market was an $18.4 billion market
• By 1989 NRFC developed 2 new pizza concepts
– Pizza Kit
– Preassembled, heat and eat Pizza
Market Summary: Pizza
• Pizza market Statistics:
– 88% of all pizzas sold by restaurants
– 60% of pizzas eaten at home
– 76% of all U.S. families had eaten restaurant pizza w.in past 6 months
– Pizza consumption strongest in northern and eastern parts of U.S.
– 10,000(+) franchised pizza restaurants
– 25,000 pizza outlets
– frozen pizza market more fragmented w/o clear market leader

Product Development: Pizza Kit
• Kit included:
– 12” crust
– Sauce
– Cheese
– Sauce: Tomato or Pesto
• Additional Toppings: Pepperoni, Sausage, 3-Cheese, Mushrooms & Bell Peppers (Sold Separately)
• Serve 2-3 people
Market Research: Concept Test
• Preliminary Concept test (200 Interviews)
– Positive purchase intent was 58% (49% among males, 66% among females)
– Results:
• 128 Heavy Take-out

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