Nestle Pizza Trends and Future Predictions

Introduction

The case talks about the studies and the research conducted to introduce refrigerated pizzas into the refrigerated food products category in the US by the Nestle Refrigerated Food Company (NRFC) in the year 1990. In the late 1980s the company had already successfully gained a foothold in this category by introducing refrigerated pasta and sauces in the markets by making products whose shelf life was superior to other similar products in the market.

The company adopts inorganic methods to grow and then invests resources to upgrade the acquired companies so that they can scale up production. This helps Nestle introduce products faster into the market vis-à-vis developing a product in-house, thereby giving them a first mover advantage in the market.

With the entry of new competitors in the pasta and sauces market, Stephen Cunliffe, the President of NRFC now has to decide whether or not to diversify Nestle's product portfolio by introducing frozen pizzas

Problems

* NRFC is anticipating that the entry of new competitors in the refrigerated pasta market will cause a decline in its growth in this particular market

* The case revolves around deciding on the basis of market research whether or not to launch refrigerated pizza in the U.S. market. The company has to see whether it can replicate its success in introducing pastas and sauces in the frozen pizza market as well

* Kraft Foods, one of Nestle's major competitors is closely watching Nestle's moves and may also introduce a pizza product into the market. Nestle has to move fast and introduce the product as soon as possible to enjoy first mover advantage over Kraft.

Questions and their answers