New Food Launching Analysis Essay - 2109 Words

Case 4 : NEWFOOD CORPORATION 1 . Executive summary The NEWFOOD Corporation is a company that is looking to expand their market by introducing a new low carbohydrate food product. The new product has been dubbed K-Pack and will be packaged similar to a candy bar. Mr. Johnson, CEO of NEWFOOD Corporation, expressed interest for determining the K-pack demand and a good marketing mix impact. The marketing mix will incorporate variables such as price, advertising and promotion strategies. Susan, the NEWFOOD marketing director, predicted a positive result from introducing the K-pack to the diet/snack food market. As a marketing initiative, NEWFOOD decided to conduct a 4-month test market study of sales at 24 stores in 4 different cities.†¦show more content†¦Also, there are limitations set on parameters set on price, so we have only assumed the $0.50, $0.60, $0.70 categories. We noticed in our regression analysis that the location within the 24 stores did not make a significant impact on our regression – 2% increased correlation. In addition, city location had a negligible impact on sales; it was measured to be close to 0%. We have omitted these factors assuming that they will have the same impact on a sales regression on a national level. 4. Marketing strategy (3 pts) Having encouraging pre-test market result as presented in cash flow; the company expects to sell 750,000 cases of K-Pack, using a mix of 50 cents per package with 3 million dollars in advertising per year. However, to ensure that this prediction is credible, the company is conducting test-market (as described above) aiming to get insights on marketing mix variables on sale, profit potential of the products, and estimation of first year sale. After having tested the marketing mix variables, the experiment shows that the least influential factors are city and location. The company’s marketing strategy is effective equally no matter where the new product is shelved and sold geographically. In terms of pricing, it is strategically recommended to price at 50cents per package. Lastly, we found that higher advertising level would promote higher sale; thus, it is recommended to use highest advertisingShow MoreRelatedContadina Pizza1227 Words   |  5 PagesNestle Refrigerated Food Company (NRFC) has the opportunity to extend its Contadina brand name into the refrigerated pizza market. NRFC must determine whether adding a pizza, with or without extra toppings, will meet specific financial objectives and increase sales. Possible Decision Alternatives Our analysis shows that NRFC can 1) maintain the status quo, 2) introduce the refrigerated pizza without toppings, or 3) introduce the refrigerated pizza with toppings. 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