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Submitted by : Group C5 Digvijay Bhatkhande (12015) Abhishek Garg (12062) Nilesh Hiraman Gadhve (12077) Harinesh Dilip Pandya

(12079) Debraj Chowdhury (12134) Suman Maity (12172)

Submitted to: Dr. M R Suresh

Mission, Vision and Values.


Mission: Delight consumers with an unmatched food experience that delivers superior value. Vision: Vision for companys future is strong, solid, well-managed, fast-growing, exciting, innovative company with high business ethics and an excellent reputation a company that offers great opportunities, a place where people like to work.

Cont...
Values:

GROWTH Relentlessly and urgently pursue value-added company and individual growth. HARD WORK Intelligent, extraordinary effort to deliver superior customer and consumer value. HELPING ONE ANOTHER Teamwork and open, constructive dialogue to achieve greater success. ENTHUSIASM Visibly engaged, passionate and determined to win regardless of circumstances. INTEGRITY Do what is right regardless of cost .

Case Facts..
Schwan was started as Schwans Home Service(SHS), an ice-cream home delivery business in March 1952 by the Marvin Schwan. The SHS label marketed frozen pizzas under three brand names: Tonys, Freschetta and Red Baron.

Schwan operated three primary business units: SHS, Schwans Global Consumer Brands(SGCB), Schwans Food Service Group(SFSG).
SHS was the countrys largest direct-to-home food delivery service. SGCB operated two divisions: Schwans Consumer Brands North America(SBNA) and Schwans Europe.

Cont...
SBNA served the North American market with products under five brands: tonys, red baron, freschetta, pagoda and larrys. SFSG had two units: a. Schwans food service

b. Schwans bakery
Schwan had three core business divisions: a. Explore Information Service b. Bi-Phase Technology

c. Schwans Call Center

Question-01
What were the factors that made Schwan food extensively focus on innovative product development?

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Strength

SWOT Analysis
Innovative and skilled team Good R&D Facility Good understanding of market Brand name

Opportunity Pizza was most popular item in US.

Industry growth
At the rate of 8% Frozen food sales were one-third of total food service sales Over 96% restaurants plan to use frozen foods Increased food technology

Over 94% supermarket shoppers prefer frozen food


By 2011 the market was expected to be US$ 662 million from US$ 441 million (1998) Threats Competition from big players and local players Changing dynamics in the frozen pizza business Easy Replication among competitors.

Question 2
How Schwan organized the new product development exercises for Red Baron Stuffed Pizza Slices? What hurdles were encountered while moving from idea development stage to the concept formation stage? How are these challenges encountered?

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NPD FOR RED BARON STUFFED PIZZA SLICES


Opportunity identification:
Huge gap for catering the snack (Pizza) for a single person Individual need of having snack was not fulfilled by this product category Single serve segment lacked
good quality convenience universally appealing products

Scope was there to fulfill this unmet need of the consumers

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Concept generation
Idea concept Need of product that provide value proposition Product that could be easy to cook
Baking took 11 to 17 minutes for cooking

Need to provide in appropriate quantity (small pieces) for the individual need Stated concept Product frozen Pizza slices

Technology- can be cooked in microwave

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Concept evaluation
Tools used
Focus group

Concept testing
Creating what if scenarios Consumer testing ( market survey) Product protocol

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Product development
Prototype concept: prototypes were translated into manufactured products Challenges faced:
Dough Placement of bottom part of dough Dispensing right amount of filling Covering of filling with upper layer of dough Giving desired shape Adding topping

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How they tackled these challenges


Design the manufacturing from the scratch New high-tech production line with secrecy Use of starch for the topping to remain on place through out the process Sensory group- check product attributes meet the target segment needs Culinary group contribution- helped Schwan product to meet predetermined standards of taste and other attributes Regulatory group ensures product meets all regulatory norms

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Launch Stage
Red baron slices variants:
Pepperoni Five cheese and tomato Italian sausage & Pepperoni Supreme Italian Sausage pizza with roasted onion and garlic chicken

Pricing -$2.99 for 2 slices (Triangular shape) Launching retail and food service distribution channel

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Positioning of Red Baron Stuffed Pizza Slices Unique, convenient way for family to enjoy Pizzas at any time- even when they are on the run

Marketing communication Plan:


Sampling exercises done Television commercial Point of sales promotions Public relation exercise Dedicated website Tie-up with national publication

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Expansion strategies:
Globalization through acquisition and francizing routes

Product innovation providing more variant in the product line


Marketing frequent advertising for brand recall

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Question-03
Critically analyse the role played by Schwans cross functional team in developing Red Baron Stuffed Pizza Slices. In what way various team contributed in project ?

Team of Project Razor


Team of internal experts

Internal teams

External Parties such as packaging and equipment supplier

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Proces s engg.
Produ ct develo pment
Applied Researc h& culinary

Regulato ry affairs

Sensory group

Manufa cturing

Marketin g

Packa ging servic e

Corporat e engineer ing

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Principles for team to get success


Clarity of goal

They are cleared about that they want From the beginning they want entire company as well as external entities to involve

Schwan always offers great opportunities and a place where people like to work Ownershi Schwan is known for hybrid organisation
p

Both external and internal involvement

External team can helps Schwan to get output from the market and what consumer wants internal team can build product like that

Integration

They have done all the upstream activities for the new product like Marshal based R & D centre to new technologically advance manufacturing unit.

flexibility

Entire cross functional team sit together and they have clearly earmarked responsibilities vis--vis their deliverables to the project

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Contribution of each department


PD & PE Department : involve translating the prototypes into a manufactured product as well Engineering Dept. : Installation of new high tech production line Manufacturing: Smooth production and give the ultimate shape to this innovative idea Sensory group : to check whether the product attributes matched the needs of the targeted consumer or not Culinary group : helping the product meet Schwans pre- determined standard or taste and the other related attributes

Regulatory affairs group : examine the entire exercise whether all necessary regularity guidelines had been compiled with.
Sales and consumer research: regularly taken feedback from market Marketing team: A successful launch of the product

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From development to commercialization


Creation of an architectur e That facilitated innovation Thorough communic ation
Business strategy is fully communicated to R & D and operation

Bringing people in early in the process Building team support, momentum, excitement, enthusiasm Building effective communication with cross functional team

2003 spirit of innovatio n Award for red Baron Stuffed Pizza slices

Question-04
In light of fact that majority of new product fail in market, how do you think Schwans effort would fare? What issues do company need to keep in mind while developing new product in order to minimise the risk of failure ?
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Yes it is true that more than 75-80 % new launches failed to attract the market and Schwan's were quite successful in new launch but some of points which companies should keep in mind to minimise risks are-

Proper PIC generation in start of project Idea screening seems to be improper Involving external parties can be harmful in some cases

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Customer centric approach. Yet product is success in market, some prior financial analysis is required. Dont get too much attached to product otherwise company can fall in pitfall.

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Thank you

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Questioning