MGMC01H3 Study Guide - Quiz Guide: Field Experiment, Frozen Food

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Published on 29 Mar 2015
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Case 3 – Nestle BY: Alyssa Karpouzis 999120179
This case shows how Nestle refrigerated Food Company (NRFC) uses market research to enter
the fast growing frozen food industry by selling Contadina pasta and sauces. Instead of spending
a lot of time and resources on creating new food products, Nestle wanted to acquire pre-existing
small companies. After the success of the Contadina pasta and sauces, Nestle was debating on
whether to begin selling pizza. To solve this dilemma, we can use market research to see whether
or not this idea is profitable and worth the time and resources. Nestles top competitor Kraft plans
to also sell pizza so Nestle must act fast if they want to get to the market first. In regards to the
pizza, Nestle has to determine not only if they should enter the refrigerated pizza market, but also
how to package the product. To begin developing the product, Nestle has to test the market to see
what customers liked better: the pizza kit or the pre-assembled kit. When reviewing the results of
the data, it showed that the Pizza Kit scored higher in all areas. It was very beneficial that Nestle
conducted market research to see what the consumers wanted as it would help them create a
product that is geared towards the consumers. A study was done about how aware the consumers
are about the new pizza kit and to Nestles surprize, both current customers and potential
customers were unfamiliar with the product. This market research study shows that there is a lot
of room for improvement in regards to advertising to try to get the product out there and well
known to consumers. The refrigerated pizza was a very new concept to consumers as most
people would go to a local pizza shop to purchase their pizza. Because Nestle already has
developed a strong brand and a loyal customer base, this made it easier for them to develop new
products as they already have loyal customers that would be willing to try their products.
Another study that was conducted by BASES was about how customers choose to purchase a
product and the results were that people would choose to buy refrigerated pasta over refrigerated
pizza.
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