1. Case Study Analysis
Product Management
Semester 2 | PGP 19
Nestle Refrigerated Foods
Contadina Pasta and
pizza
Rohit Rohan | Tarini Bandhu | Puhoop Agarwal | Soumya Prem
Sidharth Uchil | Daksh C. Kalia | Aditi Garde | Medhavi Khanna

2. The Contadina Pasta story | What worked


Product development
 Market expansion + New
Product
 7 stage process
 Fresh Pasta v/s Dry Pasta
 Frozen v/s Refrigerated
 Hygiene and quality
 Acquisition of Lambert’s..

Testing and Branding
 Marketing and distribution
 Focus on marketing
 Invested heavily in distribution
 Manufacturing, distribution, sales
 Used brokers
 “Contadina”
 Experimented with new sales
force
 ‘authentic’
 $25mn in advertising and
 ‘Italian food’
promotion
 ‘traditional’
 BASES study
 North and East US
Segmenting
 Targeting
 18+ women
 Growing Italian food segment
 Within 100 miles of sales site
 Ethnic food consumers
 Primary shoppers
 Homemakers

Positioning
 Ordinary main meal
 Quality product
 Light meal / side dish
 Convenient
 Staple food

3. Contadina Pasta and Contadina Pizza
Comparative Study
Contadina Pasta
 Pasta
is a dish that people preferred
to have at home
 Consumers
pasta
could prepare-and-have
agreed with the proposed
pricing of Contadina Pasta
Contadina Pizza
 Pizza
is a dish people having outside
while dining
 Pizza
is an item that people like to
eat but not prepare-and-eat
 People
 The
A
 No
 Targetted
 Possible
clear positioning of the product
was visible
to the general consumer
segments as a ‘family food’ product
proposed pricing of Contadina
Pizza was seen as high
clear positioning of Contadina
Pizza visible
segment differences

4. Contadina Pasta and Contadina Pizza
concept test data findings
 The
market opportunities in the case of Pasta, are not available for pizza
 Most
of the pizza consumption is in the form of take-outs
 88%
pizzas are sold by restaurants and large pizza franchises like Pizza Hut
and Dominoes including numerous regional and local retail outlets
 Market
survey indicate that only 15% and 4% of those surveyed consumed
frozen and home-made pizza against the 17% and90% users of frozen and
home-made pastas
 Thus
the market available for refrigerated pizza was limited to 15%.
 However
there is scope for offering varieties in crust and toppings
for refrigerated pizza considering the limited choice of combinations of crust
and toppings available in the restaurants and retail markets.

5. Contadina Pasta and Contadina Pizza
concept test data findings
 Despite
being an entirely new product in the market, Contadina pastas had
a favourable responsefrom the users
 The
percentage of respondents who indicated a high probability of buying is
almost the same in concept testing for Contadina Pastas and Contadina
Pizza & Toppings (75%and 76% respectively)
 The
percentage is lower (58%) in case of Contadina Pizza-Only
 Comparing
the concept test data for Contadina Pastas and Pizzas we
see that the ratings for likability and concept uniqueness is same
 Respondents
have rated availability of variety, ease & quickness in
preparation, freshness, general taste and flavor as the major attributes in
refrigerated pasta and pizza.

6. Contadina Pasta and Contadina Pizza
concept test data findings
 Major
contrast observed in the concept test data for Pastas & Pizzas is the
pricing
 Respondents
in favor of Pastas did not have issues with pricing of units (only
3% of favourable and 23% of unfavourable thought they were expensive)
 However,
in case of Pizza, both respondents in favor and not in favor of
refrigerated pizza quoted the units were too expensive (21% and 44
%respectively

7. Contadina Pizza
Inferences from test feedback
 Given
the complications with frozen pizza, it should be dropped
 ‘Pizza
kit = Pizza + toppings + extras’ is a better proposition
 Out
of 200 people, 115 gave favourable responses for the pizza kit
 According
to the mean concept attribute rating, 304 people were in favour of
the product; 95 were not
 For
all attributes, ratings are high for favourable
 People
with unfavourable feedback also agree that the product will be quick
and easy to prepare and consume
 ..also,
tastier than frozen pizza

8. The problem at hand..
 To
launch or not to launch..
 Kraft
about to launch their pizza in 6 months..
 Contadina
requires 0.3% of market share to break even

9. So.........
•18+ men and women
YES!
•Married and single
•Working mass
•Variety in taste for
the segment
•Strivers
•Local marketing**
•Experiencers
•Makers
•Benefit/attribute
•Less pricing
•Price positioning
•-Undifferentiated
marketing
•$6.00 for crust,
cheese, sauce
•Family food for
fun, light
occasions
•Authentic, real
pizza at home
•Quality and
convenience
•$1.30 for extra
toppings