According to Contadina’s 24% market penetration rate “Pizza Kit and Toppings” meet the business requirements which is $45 million for pizza with the $57,570,247 factory market. On the other hand, “Pizza Only” insufficient to meet the $45 million requirements. It should also be considered to put different penetration rate to find the closest estimation to support the company’s launch decision. As we see from the different penetration rate company need minimum 7% rate with the $45,423,333 factory market amount for pizza kit and toppings.
They should not launch the Contadina Pizza kit even with toppings. In exhibit 13-14, even top two box for pizza kit has lower attribute concept than takeout pizza heavy users which consume min. once every 2-3 weeks. In addition, take out do not require any preparation time. And the unit price of the pizza kit is expensive also. Because in addition to $7.68 unit price they will spend time and consume electricity to prepare it. In addition to that in exhibit 15, even for respondents favorable to the kit concept, 75% of the last pizza …show more content…
Pasta was one of the Top 20 foods on menus. However, approximately 88% of all pizza sold by restaurants while even frozen pizzas from supermarkets account for 16%. And customers which are in favor of pasta with the 77% had not tried pasta before but it is not the same situation for pizza which has bigger share by restaurants launching fresh concept before Contadina Pizza scenario. Besides that, Nestlé make easier to reach the market and to develop products, buying Lambert’s Pasta & Cheese, On the other hand they have not any experience about Pizza Product and distribution channels. It is possible to use the same channels to distribute the product but to enter entirely new market cause to take a vast amount of risks which will not provide so much profit according to numbers from tables and
They should not launch the Contadina Pizza kit even with toppings. In exhibit 13-14, even top two box for pizza kit has lower attribute concept than takeout pizza heavy users which consume min. once every 2-3 weeks. In addition, take out do not require any preparation time. And the unit price of the pizza kit is expensive also. Because in addition to $7.68 unit price they will spend time and consume electricity to prepare it. In addition to that in exhibit 15, even for respondents favorable to the kit concept, 75% of the last pizza …show more content…
Pasta was one of the Top 20 foods on menus. However, approximately 88% of all pizza sold by restaurants while even frozen pizzas from supermarkets account for 16%. And customers which are in favor of pasta with the 77% had not tried pasta before but it is not the same situation for pizza which has bigger share by restaurants launching fresh concept before Contadina Pizza scenario. Besides that, Nestlé make easier to reach the market and to develop products, buying Lambert’s Pasta & Cheese, On the other hand they have not any experience about Pizza Product and distribution channels. It is possible to use the same channels to distribute the product but to enter entirely new market cause to take a vast amount of risks which will not provide so much profit according to numbers from tables and