Case Report On Nestle Refrigerated Foods

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Case Report On Nestle Refrigerated Foods Introduction The case illustrates the various studies and market researches done for the introduction of refrigerated pizza to the refrigerated food category product in the U.S. markets by Nestle Refrigerated Food Company (NRFC) in the year 1990 while in the late 1980s the company has successfully captured this category by introducing refrigerated pasta and sauces in the markets which improved the shelf life of the earlier selling products in the U.S markets The company believes in purchasing small local brands and there facilities to enter the new markets and then invest in there up gradation to make their products compete at the national and international levels. This saves company a lot of time in just developing the product and starting from scratch in any new markets .This also helps in gaining first movers advantage and capturing the market. The refrigerated pasta was a 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 president of NRFC has to take decision on whether to launch the pizza in the U.S market or not Problems • The major problem in the case is to decide on the basis of market researches whether to launch refrigerated pizza in the U.S. market or not i.e. The Company has to decide whether it can replicate the success of its earlier product i.e. Refrigerated pasta to the pizza category also or not • Refrigerated Food Company (NRFC) anticipates that with the entry of new competitors in the refrigerated pasta market there can be decline in its growth of the pasta market • The company’s major competitor in the global markets Kraft is expected to launch refrigerated pizza in about six months so the company has to launch its product well before it to enjoy the first mover advantage over the competitor Analysis • Contadina is an established brand in the industry in the refrigerated food segment which manufactured and distributed pasta before the ranges being introduced by nestle which repositioned it so the people were familiar with its pasta product while it was not into the pizza business and had to start that from scratch so that advantage was missing which was helpful in the earlier case of pasta.

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