Nestle Refrigerated Foods: Contadina Pasta & Pizza (A) Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

QUESTION 1

Why was the launch of Contadina Pasta so successful? Reflect on issues related to the product’s customer value proposition, market positioning (relative to alternatives) and the key assets and competencies of Nestle Refrigerated Food Company (NRFC) that allow it to deliver on the customer value proposition.

The success of Contadina Pasta product line can be attributed to the following reasons. They could capitalize on the First Mover Advantage and on the strong research methodology adopted prior to launch, which I like very much, because it presents strong and accurate data and information about the market, consumer’s attitudes, opinions and perceptions about a certain product. Furthermore, the majority of the population was in favor of the concept. Another factor of the success is the main characteristic of the pasta, which it is refrigerated and not frozen to target a market niche in the US, which is completed with a large variety of the ingredients products. Furthermore, it has a good quality and freshness, and quick and convenient to make, which characteristics are perceived by the consumers as well, making a high intent and perceived value of the product, which could distinguish the product and the brand and can use as a USP for premium or superior positioning strategy. Moreover due to the acquisition of Lambert Inc., two plants, a package technological innovation, a longer shelf life and an efficient supply chain is a benefit of the product as well.

QUESTION 2

What are the customer value proposition and the market positioning of the proposed pizza product? Is it similar to the pasta product?

Exhibit 13, 14 and 15 compares and contrasts Contadina Pizza Concept (Pizza & Topping, Pizza Only) with the substitutes available in the market through relative concept attribute ratings by users in favor of either of the two forms of Contadina Pizzas, heavy users of Takeout Pizza and users of Frozen Pizza. From the all the three exhibits we can learn the attitudes of consumers towards the pizza market, and we can get insights about it. As a conclusion, takeout pizza is the most popular product in this market segment. Attribute ratings given by the frozen pizza users are way below the ratings given by other 2 set of users, thus frozen pizza is less preferred compared to others. To sum up Exhibit 13 and 14, the Pizza Kit lags behind with a huge margin compared with takeout pizza on taste, crush and product image of a special meal. Therefore, NRFC needs to concentrate more on the taste factor and also make it suitable for special meals. The ratings given by users favoring pre-assembled pizzas imply that they are apprehensive about the freshness, taste, availability of specific crust and toppings varieties and quality of the crust. If NRFC plans to go in for pre-assembled pizzas, then it needs to take special care of the above mentioned attributes like ensuring the crust does not become soggy post production, crust and toppings have varieties that consumers would like. On the other hand, Exhibit 15 clearly indicates that if the Contadina pizza is introduced in the market the market share of all the other pizzas already available would decrease, because 75% ofthe last 10 pizza-eating occasions were takeout or delivered pizza for those respondents who are favorable to Contadina pizza and who would buy it instead of another product. Exhibit 15 presented the likely trend post-trial of Contadina Pizza. There is no change in the consumption of homemade pizzas, almost no consumption of fresh pizza from supermarket, 50% and 22% reduction in consumption of frozen and takeout pizzas respectively, and 3 out of 10 times, they would prefer eating Contadina pizzas. To sum up, Contadina pizza becomes the 2nd most preferred product for the user after takeout’s.

QUESTION 3

Exhibit 6 and 19 contain results from the respective concept tests for the pasta and pizza products. Compare the findings and try to answer the following questions