Although NRFC believe estimation of pizza sales could base on Contadina pasta's 24% market-penetration rate, more conservative calculation should take different ranges of penetration rate into consideration. By choosing three possible penetration rates of 5%. 15% and 25%, the estimated results are demonstrated in Exhibit 1. In all three scenarios, kit only concept will not make up to company's expectation. For kit and topping concept, only if penetration rate reach to 15%, launch decision could be supported. 1.2 Sensitivity analysis shows that pizza sale will be largely influenced by penetration rate of Contadina pasta (Exhibit 2). Q2 Similarities: Both launches of refrigerated pasta and pizza are aim to catch up the growing trend toward ethnic foods. Both of these two lines try to capture this growing trend by providing convenience and freshness at the same time. In terms of competition, none of the refrigerated pizza and pasta category has a big brand play yet. Therefore, by taking quick reaction to the demand, both pasta and pizza opportunity might empower Nestle to become a market leader in both categories with first mover advantage. Differences: Although both lines are new product concept, which try to target similar customer segment who are interested in Italian food, market potential might vary for different product line. First in terms of positioning, in pasta market, dry and frozen pasta occupied large market share due to its higher accessibility than fresh past sold at specialty store and restaurants. This might explain the fact revealed by research that 77% of respondents in favor of fresh pasta concept never purchased fresh pasta before. Therefore, wide distribution of refrigerated pasta will serve customers?desir... ... middle of paper ... ... Total retail (users+non-users)MM $65.98 $39.68 Total factory sales (2/3 of retail)MM $43.99 $26.45 NRFC hurdle (factory sales)MM $45 $45 ?Pizza kit and topping: 43.99 MM, reach company's projected factory sales of 45MM ?Pizza kit only: 26.45 MM, Fail to reach company's projected factory sales of 45MM Exhibit 2 Sensitivity analysis Change in penetration rate Change in pizza sales Percentage change in pizza sales 25% to 15% - 7.11M -12.2% 25% to 5% - 14.26M - 22.48% 15% to 5% - 7.15M - 13.98% Calculation shows the high sensitivity between Contadina pasta's market success and estimated pizza sales.
In addition it enjoys a high brand equity and loyal customer base that distinguishes it from other rival brands. The products benefit from prominent shelving and are available across all grocery stores in the United States due to A1’s extensive distribution network. However, though the brand has carved out a solid position for itself in the steak niche it has not been particularly successful in categories of meat. In the past, A1’s poultry sauce had been a huge failure in the market. The steak sauce market has matured and A1 has been relying on price increases to drive growth.
Academia Barilla’s consumers are still a specialized target, despite recent efforts for expansion and growth. For its gourmet foods product line, demographics of consumers in major markets tend to be upper middle to high class citizens of middle to older age. Italy represents the major market for Academia Barilla, with Europe and North America showing promising growth. However, recent severe economic troubles in Italy, Europe, and the United States are a major cause of concern and must be monitored. Regulatory bodies in the countries which market Academia Barilla do not tend to interfere with production. Current consumer trends for healthier, more organic products should be monitored. Whole-wheat and low-carbohydrate products have increased in demand during the past half-decade. Recent developments in the IT field have helped bring e-commerce to new heights. Finally, emerging economies in countries such as Brazil, China, India, and Russia may be targets for possible future high growth opportunities.
Now lets look at some of the other key factors that have led to success at this point. Papa Johns is known for their excellent customer service and have really blown their competition in area. They need to remind their customers that they are the best at making pizza lovers happy. The price point of a product tends to be the first thing noticed by the consumer but if they are not happy with what they get they being to think twice about their decision. In today's
PepsiCo can potentially acquire California Pizza Kitchen and integrate it in the company’s decentralized management approach. Since PepsiCo executives have experience in the quick service food industry, it should not be a reach for the company to successfully run this casual dining restaurant. For this venture to be successful, it is imperative that management cut down the operating costs at California Pizza Kitchen through the PepsiCo Food Systems distribution network and improve on the 3.1% operating margin that California Pizza Kitchen is currently operating at.
TP has grown from a single store in 1988 to the largest pizza chain in Spain. At the end of 1997 they had 399 stores and an estimated market share of 62% in Spain. But what made it so successful? There are several reasons for that in the TP concept:
Krispy Kreme Case Study Question 1. The chief element of Krispy Kreme's strategy is to deliver a better doughnut and to appeal to customers in new ways. They have taken great steps to insure customer satisfaction from the use of their proprietary flour recipe to their automated doughnut making machines. They have chosen to target mainly markets with 100,000 households. They also were exploring smaller-sized stores for secondary markets.
Giuseppe’s product line consists of more than 80 different sausage related products to be marketed to supermarkets, restaurants, casinos, and mail order/individual call in. Giuseppe's strategy was to develop a reputation of being the best in the industry. To do this, they focused on and provided what their customers wanted – customized specialty sausages, priced their products competitively – just a few cents above competitive prices, and prided themselves on being above average USDA and Health Department standards and regulations when it comes to cleanliness of the sausage making areas. 2. What is the difference between a..
Being part of a highly competitive and dynamic market, SUBWAY® faces a strategic marketing challenge as to what specific marketing mix to use in order to sustain a differential advantage while maintaining sales growth and, above all, profitability.
Olive Garden has been around for years and their menu and atmosphere has not stayed in tune with patron demands. Everything has not been lost with Olive Garden’s original business model. Many of the menu items remain popular with Olive Garden patrons. Menu items that contain pasta, meat, cheese, and sauce are still well performing (Arnold, 2015). Reinventing some of these ingredients to respond to customer’s preferences has been a strategy used by Olive Garden business executives.
For years now Pizza Hut, Inc. has been the leader of the pizza industry. We have been privileged to have had the opportunity to perform research on advancements we can make to maintain this reputation. Based upon our Economic Analysis we have decided to not launch the BIGFOOT pizza. The following gives a detailed analysis, offers alternatives to improving the Pizza Hut experience, and gives reasons why we came to this conclusion.
Domino’s Pizza is one of the world leaders in pizza delivery. It establishes in 1960 in the United States and operating with company-owned and franchise owned stores in International markets (Dominobiz, 2013). In this essay we will look through the operation management of Domino’s Pizza which in the core operation. Then, I will analyse the 4V model of attribute of demand for the service, the performance objective of the organisation, provide input-transformation-output diagram and supply network of the organisation. Lastly, provide improvement suggestion for Domino’s Pizza core operation.
Imagine Italian cuisine without tomato as an ingredient or your favorite pasta without any tomato sauce. It sounds extraordinary to think that at one point in history Italian cuisine didn’t have tomato as a staple food. After the European exploration of the Americas, numerous amounts food we introduced into Europe, Eurasia and Africa. This helped evolve the Mediterranean diet as well as traditional Italian cuisine (MacLennan and Zhang, 131.) What makes Italian cuisine popular around the world today is that most dishes are made with a small number of ingredients; cooking methods are simple and the recipes are healthy. This is a perfect mix for the food lover, and the upcoming cook with hopes to become a chef. This is why traditional Italian cuisine has influence my pursuit into the culinary field. (”Italian Food Made Easy; Traditional Fare Just Like Mama Used to Make,” par. 1-11.)
A Competitive Audit of Nestle's Milo. I plan to produce a SWOT analysis, PEST analysis and a Competitive Audit on Milo. This is because I’m going to need to produce a good analysis of the market place, if I intend to create the best marketing strategy. This is important because there are a range of options available when creating a marketing strategy. Without these analytical processes, I will not be able to identify, which strategy is appropriate.
Nestle is a Swiss food and beverage Multi-national corporation headquartered in Vevey, Switzerland. It is the largest food company in the world measured by revenues with about 500 factories in more than 80 countries. The company consists of a powerful portfolio of brands that is driven by unrivalled research and innovation, an aim to contribute to improving the quality of consumers’ lives and a clear commitment to consistence excellence. The company succeeded in accomplishing its mission of “Good Food, Good Life” by making the use of globalization in the areas that are as follows-