Nestle Pizza Case
Problem and Environment:
Contadina is one of the most successful projects of Nestle, which was able to win a significant share of the pasta and sauce market that encouraged the company to develop this brand through the expansion of the product line. Despite the fact that the idea of the new product had already been created, several problems faced the company, such as:
- The concept of the new product was not tested since no one in the market had yet proposed crust with cheese and sauce in separate packages.
- Promotion of the product should have reached a segment of buyers who preferred to take food with them or order delivery.
- The product should have not harmed the brand or seem cheap and substandard.
- Kraft Foods, which is the competitor of the business, also launched a similar product; therefore, Nestle had to be the first.
- Nestle had to focus on developing the frozen pizza market through the same methods that it had used when promoting pasta.
- It was important to focus not on the general pizza market but on the frozen pizza market only.
- Positioning should have been based on the freshness of the products, not just their diversity.
As for the basic recommendation for Nestl?, the company should have paid attention to the fact that although the overall pizza market was a bargain, few people were ready to abandon the restaurant option in favor of frozen foods. Thus, the promotion of products must have occurred at the local level and not among the entire pizza market. Furthermore, the company already had experience in promoting this brand and should have used its recognizability through these methods. Lastly, in order not to damage the reputation of other products, Nestle should have positioned frozen products as the freshest option that could be cooked at home.
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