Market Research Pizza and Topping

Summarize the Marketing Research.

The objective of the marketing research is to

-Define the market potential for refrigerated pasta as a new product/category.

-Assess the market interest in its new Pizza offerings as an extension to existing refrigerated product.

In the marketing research for pasta, the research firm first conducted a concept tests to evaluate the interest of purchasing refrigerated pasta and sauce. The testes indicated high purchasing intention and no one brand was overwhelmingly preferred.

Using the market research findings and marketing plan data of expenditures, the research firm conducted BASES I test to estimated sales volume and finally came up the estimated minimum business requirement of 20 million units.

BASE also used the PASS and Factor analysis to reduce 27 attributes to 5 major criteria for customer to differentiate brands of pasta and found the high quality poisoning as light meal/side dish was clear the winner.

As the Pasta lunch is very successful. So NRFC developed two new pizza concepts and the MRD of the company did a preliminary concept test to assess market interest first to refine the product development. In early 1990, NRFC commissioned a BASES II Line Extension Study, involving both a concept and an in-home product use test.

Part II:

Under the penetration of 24%, Nestle should launch Pizza with concept of Pizza+ Toping.

Based on the calculation, I found the estimated factory sales of “Pizza+Topping” was around $57.5 million, the estimated factory sales of “Pizza only” was around $35.1 million, while the target is $45 million.

When penetration is 15%, can still launch the “Pizza +Topping” as the factory sales is greater than the target.

When penetration is 5%, do not launch the Pizza, as neither of the options’ factory sales is greater than the target.

Overall assessment on market researches and product development process:

-Overall, I think the market researches conducted is very comprehensive. Used different methods for different steps in the whole launch process for a new product or product extension.

-The New product development process includes both quantitative and qualitative research to help NRFC to correctly position its product, refine the R&D to improve product features, also assess the potential market volume and minimum business requirement to meet criteria and investment targets.

-NRFC uses different methods for the launch of Pasta and Pizza as one is a brand new product category, and Pizza is production line extension under