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    1(iii) Case- Digiornos Pizza

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    14 views1 page

    1 (Iii) Case - Digiornos Pizza

    Uploaded by

    Q b

    Copyright:

    © All Rights Reserved
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    of 1
    ee DIGIORNO PIZZA: INTRODUCING A FROZEN PIZZA TO COMPETE WITH CARRY-OUT ‘Kraft Foods sucesfally introduced DiGlomo Pizza into the ‘marketplace in 199, with fst year sks of $120 million, fl- lowed by $200 million in sles in 197. It was neither ck nor coincidence that DiGiorno Pizza was an instant sucess. Kraft ‘conducted extensive research about the product and the mar- Jetplace before introducing this product to the public. Many questions had wo be answered before Kraft began production For example, why do peopl eat pizza? When o they eat pizza? Doconsamersbetiee that carry out pizza isabways more tasty? ‘SMI-Alcot condacted a rescarch stad for Kraft in which they sent out 1,000 surveys to pizza lovers. The results indi- ‘cated that people ate pizza during fan social occasions or at home when no one wanted to cook. People asd frozen pizza ‘mol for convenience but ected carryout pitta fora var ty of other reasons, incnding quality and the avidance of ‘cooking. The Loran Marketing Group conducted focus groups for Kraft with women aged 25 to 54. Tei findings showed that consumers use frozen pizza for convenience bat ‘wanted cary out pizza tat. Kraft researchers relied that if they were to lanch a maces frozen pizza that cond com- pete with cary out pizza. they had to develop a frozen pizza that (a had restaurant take-out quality (b) possessed favor variety, (€) was fast and easy to prepare, and (4) had the con- venience of freezer storage. To satisy these seemingly diver ‘gent goals Kraft developed DiGiorno Pizza, which rises inthe ‘vena it cooks. This impressed focus group members, and in a seres of blind tate tests conducted by Product Dynamics, ‘DiGiorno Pizza beat out al frozen pizzas and finished second ‘overall behind one carryout brand. ‘DiGiorno Pizza has continued to grow in sles and market share over the yes. By 205, sales hal topped the $600 milion ‘mark, and DiGiorno Pizza hd nearly a quarter of the markt share of frozen pizza aes. In 2004, Kraft saccssfulyntrodced ‘DiGiorno thin, crispy-

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