Nestlé Pizza Case Study

2005 will mark the 100-year anniversary of the first pizzeria in America. Americans eat approximately 100 acres of pizza each day, which is about 350 slices per second. According to an American Dairy Association random sampling survey, pizza is America’s fourth most craved food behind cheese, chocolate, and ice cream. American’s obviously love pizza; we have even designated the month of October as National Pizza Month. But whether you bake your pizza in your kitchen oven, in a wood-burning stove, eat it in a restaurant, or choose delivery, there is no denying this phenomenon has become as American as apple pie.

In our analysis, we compared the profits earned by 60 Crusty Dough Pizza Company restaurants to factors associated to their menu, amenities, services, and statistics regarding the restaurant communities. The factors that we analyzed are listed in Table 1.

a pizza chain is able to develop a method of baking pizza that enables pizzas to be baked in 10 minutes rather than the standard 20 minutes during the late 1980s

Following the success of Contadina Pasta and Sauces into the refrigerated foods market, the Nestle Refrigerated Food Company (NRFC) is worried about a potential decline in refrigerated food market share growth because of an increased amount of competitors. To expand the market, the company is considering launching Contadina Pizza. However, they have to determine if they can duplicate the success of their previous product.

a pizza chain is able to develop a method of baking pizza that enables pizzas to be baked in 10 minutes rather than the standard 20 minutes during the late 1980s

Disadvantages: The pizza kit and toppings option is rated as too expensive/ more than takeout/delivery/restaurant. The mean price that typical consumers would pay for a 12” pizza service two-three people is $6.49; the average retail price for Contadina pizza and toppings is $8.00 (assuming 1.25 toppings per pizza). In addition, although the pizza kit and toppings option has a “homemade” element to it, some people will prefer to order from a restaurant. This may prove to be a major setback, especially in a market where consumers are almost conditioned to order from a restaurant whenever the craving for pizza, or the desire for a quick, easy dining occasion, presents itself.

In order to achieve economics of scale, Pizza Pizza will need estimate the demand size and growth patterns in U.S. Promotion activities are can support company to meet the fluctuate market demand. Pizza industry is a growing up industry around the world, based on a statistical results from PMQ, 40.89% U.S. Pizza sales belong to independents, which means no one specific Pizza restaurant will take over the market. Even Pizza Hut was took 14.79% market sales.[3] (Appendix 2) The American market is expected a huge grow up in the future. Pizza Pizza was meet right time to enter this market.

. (Parnell, 2008). From the beginning, the firm has concentrated on just making good pizza, they have a limited menu and the company does not try to have a low-cost option. Reasons for not imitating the low-cost option of the competition is due to the company stating, “You cannot have a quality product at a low price.” The company does follow the low-cost

In a growing ethnic food category, NRFC is facing the decision of launching or not Contadina fresh pizza. Study has shown that business viability is closely depending on brand penetration rate which is not accurately measured. Moreover, NRFC try to get the first mover advantage to face the expected concurrence of Kraft. Product is facing positioning problem, and if the launch failed, it may affect brand awareness and be harmful to its pasta line. NRFC should resolve positioning problem by finding the right price that increase sales reduce dependency to brand parent and ensure product

La Bella Pizza Bistro is a pizza place that serves you good food, that is close to campus and is reasonably priced. I have grown up around pizza being from Stony Brook, Long Island. Pizza is one of my favorite dishes. Due to me being from Long Island however, I am somewhat of a pizza snob. This is due to the undoubtable fact that the New York City area has the best pizza on the planet. The fact it is hard for me to eat pizza from places that are not Long Island. This is because I constantly judge pizza to the standards of Long Island pizza, which are too high for most non Long Island pizza places to achieve or even come close to. One of the things I thought I was going to miss most about leaving Stony Brook was the absence of great pizza. However, I was delightfully surprised to find that not only was there a pizza place that had pizza that was close to that of Long Island pizza, but it was also geographically close to campus, a little over a half of a mile from my dorm.

1. Using the BASES model described in Exhibit 9, forecast the estimated demand (trial & repeat) for the 2 pizza options under consideration: Pizza & Topping and Pizza Only. Most of the data needed for the forecasting exercise is available on pages 14, 15 and on page 34 (Exhibit 21).

The two biggest TFC competitors were CNN and Lifetime had the higher ratings, Lifetime 4.5, CNN had scored 4.3, and TFC only achived 3.8 on consumer interest in viewing. These data are used to determine how much to pay for each networks, and also where they would include the network in their consumer offerings. The cable operator needed to offer service packages that would appeal to the home consumer and would justify the monthly cable fee. To Wheeler, TFC had to improve consumer interest, awareness, and perceived value. She said also that TFC could win in the market if the channel builds its marketing programs around the right consumer segmentation. TFC had to identify the customer groups that are most worth the effort to purse. TFC could use market research not only for demographic data but also to study consumer behaviour and attitudes – how viewers use the networks, what they value and what needs they have.

Tim Pater is faced with the dual challenge of differentiating Atomica Pizza and Wine Bar from all of the other downtown restaurants and increasing revenue. Food is an elastic good that demand for it could fluctuate wildly depending on the price. Rising prices made it difficult to survive among competitors, so Atomica needs to find out ways to increase sales without decreasing margins.

In the documentary, “The Pizza Turnaround,” (http://pizzaturnaround.com/), Domino’s Pizza changed the recipe of their pizza “from the crust up” after conducting focus groups interviews with their customers. The feedback was consistent that the pizza was “like cardboard”. Domino’s listened to their consumers and took their comments to heart to diligently create a new pizza recipe with a new crust, new sauce and new cheese – a complete pizza makeover which garnered Domino’s a new position in the customers’ minds and palates.

Strong brand awareness, controversial promotional activity, good service and quality innovative pizzas – are the components being valued by the company throughout the process of business expansion.