Nestle Refrigerated Foods: Contadina Pasta and Pizza (A) Case Study Analysis
Threat of new entrant –In the ethnic food category, the pizza market is dominated by restaurants i.e. the presence of 10,000 retail outlets. There isn’t any requirement of heavy investment except foradvertising. An increase in the consumers’ preference towards frozen or refrigerated food, has provided new entrants an easier access, which representsthe probability of the new entrants’ growth potential.
Threat of new substitute –The players offering refrigerated food have an increase insubstitute because of the presence of a large number of restaurants offering freshly cooked pizzas.
Financial Analysis
The analysis of the trail units and repeat units for both Pizza and toppings and pizza only, were performed by using the concept purpose intent of Contadina users and Non-Contadina users. The calculation of the trial units and trial units repeat was based on definitely would buy and would probably buy. Thus, the overall trial units for repeats were less as compared to the trial units for both the products i.e. 7.70 million trial units for Pizza and Toppings as compared to 5.61 of trial units of Pizza Only. Similarly, the trail units for repeat of Pizza and Toppings were 3.39 as compared to 2.47 of Pizza Only.
Profitability
Based on the financial analysis i.e. the evaluation of trial units for both products;Pizza and Toppings segment is expected to generate more profit because of its increased cost. The estimated total sales of Pizza and Toppings is 139.46 Million as compared to 100.64 Million, as shown in Appendix D. In exception, the elimination of toppings price from the first product category would still generate more profit as compared to the second product’s category...................................
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