Marketing and New Product Line

4. How do the results for Pizza in Exhibits 7 and 8 compare to those for Pasta in 3 and 4?

The marketing research department’s seven-step process for a new product launch has certainly set them up for success in the past. By following the process, they quickly eliminate bad ideas, assess the quality of the product, minimize the risk of overproduction and study potential brand awareness before they introduce the product to the market. This process allowed them to confirm success in the launch of Contadina Pasta and because Contadina Pizza has the same substantial marketing niche it should also generate the same success.

In this assignment I will be discussing the t that Domino’s is considering entering the marketplace in my community of Waynesboro, GA. I have conducted research to gather information in regards to demand for this business based on population, average income per household and average cost of pizza in this particular area. The end results of this research and demand analysis we should be able to determine if this would be a wise investment move to make on Domino’s behalf.

The aroma of pepperoni and melting cheese overwhelm my senses like a high tide wave as I enter the Round Table. Suddenly, memories of my tenth birthday party rush to the forefront of my mind; I still remember the savory pepperoni mingling with the sweet tomato sauce tantalizing my palate. Pizza isn’t just a delicious treat; it’s a reason to eat together. It creates and enhances memories, what late night cramming session would be complete without a piping hot pizza pie? When I dive into that thin crusted wonder, the last thing on my mind is the nutritional value of this greasy fix. Of course I am not the only pizza fanatic to overlook this fact; unhealthy pizza is celebrated all across the nation. New York is

The pizza industry is the number-one meal choice for Americans. In fact, it is consumed so frequently, that in the United States people, on average, consume 100 acres of pizza every day. The Industry is mainly classified into two different sections, pizza chains and independent pizzerias. The top four businesses in this industry are Pizza Hut, Domino’s, Papa John’s, and Little Casers, respectively. In fact they account for 32 percent of the industry sales (Thompson, C-42). The pizza owners not only compete with each other, but there is a new entrant to the industry, the frozen pizza. Furthermore, the industry typically has four options of service for their customers. These include the dine-in option, delivery option, carry out option, and take n’ bake option. Most pizzerias position their stores in convenient areas for their customers. The customer segment that holds 46.3 percent of the pizza industry is people that are 25 to 44 years of age. It is believe that this is due to a majority of these customers having children and needing quick meal options for their family. The overall performance of the industry is strong, however each company varies in their internal strengths and weakness. Also external forces play a role in the growth of the pizza industry. When the economy was week this affected customers and forced them to spend less money. People would cut their spending on eating out. If they did chose to eat out then families chose to purchase pizza that was less

TruEarth is faced with a dilemma on whether or not to launch the new whole grain pizza product. This case has analyzed the marketing survey data and provided full alternative solutions. The calculated projected retail market of $21 to 30 million dollars will meet the business requirements to proceed with this project. The marketing plan is to focus on two key consumer groups: existing TruEarth customers and new health conscious group that may or may not be existing pizza eaters. From this strategy, it is expected to meet on the higher end of the projected retail market. A side benefit is the added penetration of TruEarth brand name to the overall consumer market, which may benefit the whole grain pasta product.

One of their first new product launches was the Cucina Fresca line of pastas. Only a year after its introduction into the marketplace, sales for Cucina Fresca had reached over $23 million (). There were notable growing healthy yet quick demands from the market, TruEarth developed its answer, Cucina Fresca; the company found "ways to take advantage of growing demand for quick home meal replacements, refrigerated pasta, and whole grain food options that did not sacrifice taste," (Rangan & Yong 2009 p 3). One of the most successful elements in the new product line was the aggressiveness in the companies launching. Lots of research and development went into the making of the product to ensure quality in order to create a competitive advantage over larger competitor like Nestle and Kraft. TruEarth even worked with outside research agencies, like Nielsen BASES, a market research firm (Rangan & Yong). After much research examining potential purchase potential price points were set and the company saw strong initial success.

Bryant, Z. (2012). Who Consumes Fast Food and Why?. SS-AAEA Journal of Agricultural Economics. Retrieved from:http://www.aaea.org/UserFiles/sections/ss-aaea/journal/2011/Bryant.pdf.

How does the pizza concept test data (Exhibits 19, 20 and 21) compare to the pasta concept test data (Exhibit 6)?

Company G’s mission is to improve the quality and convenience of people’s lives and they have done so with their latest small appliance, the espresso maker. It fits their goals by reducing its size with innovative design solutions and ergonomics that will put Company at the forefront of the industry. It will save time and money and ease the daily morning grind for consumers.

Therefore, Customers?needs of both high quality and convenience are well served. As a result, refrigerated pizza's claimed benefit might be weaker than what refrigerated pasta could offer to customers. In terms of pricing, although BASES research indicated that price for pasta as a factor influencing customers?favorability was less important that other factors such as quality, it might not be true for pizza case, because refrigerated pasta has been priced close to competing substitute while its adding benefit of freshness has been well perceived by customers. Since take out pizza serve high quality and convenience well, refrigerated pizza priced closely to this substitute at $7.69 for both kit and topping might not be able to compete for existing fresh pizza market share. Moreover, its high price premium will also reduce its attractiveness to frozen pizza buyers. Furthermore, in terms of product development, Nestle took advantage by purchasing on-going operation, Lambert's Pasta & Cheese, which already have the production technology and had the marketing experience in this category. Therefore, although Nestle did not perform the test market for its pasta line, the purchase of on-going operation reduced the risk of product launch. However, refrigerated pizza not only faced some technical difficulty that forced Nestle

Pizza homemade is cost leadership strategy. This is because the low-cost of price of products, cost minimization in sales force and advertising. So, the marketer is able to charge the lower price of the products from other competitors and still get the high profitability. The cost leadership is more concern about the lower prices than rivalry but there is not the part of strategy pizza business.

* Key concepts for refrigerated pasta and pizza were freshness and convenience. Refrigerated pasta concepts were compared to dry pasta concepts obtaining the highest ratings.

Current market research done by AEFPA offers insufficient data, so we need to improve data quality. The main goal is the get a clear demographic segmented market overview. One of the problems is that we cannot clearly identify the potential and current pasta consumers clearly – we simply do not know enough about of core target group. In addition we need insights on consumer behavior and habits as we do not know what drives the consumer decision when choosing pasta and when declining pasta. Another advantage of a broad market study would be that it would become clear if there are segments in the

Analysis of the performance of microwave category can be done through the increase or decrease in the demand between years. The analysis shows that the demand is ever increasing for microwave category products. The perceived advantage of expending microwave foods has augmented as the work/ life balance of the consumers is becoming progressively complex. The advantages could be summarized as expedient (time saving), grander attraction since it is a gourmet meal with a multiplicity of assortments. The multi-use of the products at any time of the day in form of breakfast, dinner, as well as lunch, is the objective designed for high product demand.