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Contadina Pizza Case Summary

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• Pizza positioning and customer value are unclear o Positioning could be similar with pasta o Positioning and customer value were unclear because they are in development stage
• People underestimate and doubtful with pizza quality (exhibit 14) o Most of people concern with pizza freshness, unsure whether frozen pizza use high quality ingredients, various type of people favorite’s crust, whether the taste will be good and not have soggy crust, also unsure regarding the use of frozen pizza for special meals o Typically, US customers seek products that deliver convenience but have good taste and fresh, as well as easy to prepare.
• Targeted retail price is too expensive o Based from exhibit 24, we can see that the mean price that people are willing to pay for the pizza is at the range between $4 to $5 with 27.9% which is also the highest percentage, while $7 to $8 is only 5.2%. More than 5 times less people will pay at the price of $8.
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• Nestle Refrigerated Company face new competitors o Entry of main competitors in global market, Kraft expected to launch their pizza products in similar time o Kraft had test marketed refrigerated pizza products when during pasta market testing o Kraft products have longer shelf-life o Must launch the product before Kraft to benefit from become first mover advantage over the competitor
• Manufacturing of Lambert Pasta & Cheese is necessary to have significant change, as well as distribution challenge o Due to the bad condition of facilities. o As a national company, there is low hygiene standard as well as the management cannot make good contribution. o Well-organized distribution is essential because the products will be sourced from single location
• Refrigerated form production challenge o Requires higher microbial/bacteria

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