Schwan Food Company

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

2 Mission, Vision and Values….

Mission:

Delight consumers with an unmatched food experience that delivers superior value.

Vision:

Vision for company’s 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.

3 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 . 

4 Case Facts…..

Schwan was started as Schwan’s 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: Tony’s, Freschetta and Red Baron.

Schwan operated three primary business units: SHS, Schwan’s Global Consumer Brands(SGCB), Schwan’s Food Service Group(SFSG).

SHS was the country’s largest direct-to-home food delivery service.

SGCB operated two divisions: Schwan’s Consumer Brands North America(SBNA) and Schwan’s Europe.

5 Cont.…..

SBNA served the North American market with products under five brands: tony’s,

red baron, freschetta, pagoda and larry’s.

SFSG had two units:

a. Schwan’s food service

b. Schwan’s bakery

Schwan had three core business divisions:

a. Explore Information Service

b. Bi-Phase Technology

c. Schwan’s Call Center

6

Question-01

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

7 SWOT Analysis

Strength

Innovative and skilled team

Good R&D Facility

Good understanding of market

Brand name

8 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.

9 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?

10NPD 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

11 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

12 Concept evaluation

Tools used

Focus group

Concept testing

Creating what if scenarios

Consumer testing ( market survey)

Product protocol

13 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

14 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

15 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

16

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

17

Expansion strategies:

Globalization – through acquisition and francizing routes

Product innovation – providing more variant in the product line

Marketing – frequent advertising for brand recall

18 Question-03

Critically analyse the role played by Schwan’s cross functional team in developing Red Baron Stuffed Pizza Slices.

In what way various team contributed in project ?

19

Internal teams

Team of internal experts

External Parties such as packaging and

equipment supplier

Corporate

engineering

Marketing

Packaging

service

Applied Researc

h & culinary

Manufacturing

Regulatory affairs

Sensory

group

Product

development

Process

engg.

Team of Project Razor

20

Clarity of

goal

• From the beginning they want entire company as well as external entities to involve• Each milestone of the project evaluated against the expectation of target market

Ownership

• Schwan always offers great opportunities and a place where people like to work• Schwan is known for hybrid organisation• All the team know their jobs

Both external and

internal

involveme

nt

• 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(research kitchen, lecture kitchen, five product development laboratory, focus group laboratory, evaluation and testing room)

flexibilit

y

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

• Installation of high tech production line

Principles for team to get success

21 Contribution of each department

PD & PE Department : involve translating the prototypes into a manufactured product

Sensory group : to check whether the product attributes matched the needs of the targeted consumer or not

Culinary group : helping the product meet Schwan’s 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

Engineering Dept. : Installation of new high tech production line

Manufacturing: Smooth production and give the ultimate shape to this innovative idea

Marketing team: A successful launch of the product

22

Creation of an

architecture That

facilitated

innovation

Thorough

communication

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 innovat

ionAward for red Baron

Stuffed Pizza slices

From development to commercialization

23

Question-04In light of fact that majority of new product fail in market, how do you think Schwan’s effort would fare?

What issues do company need to keep in mind while developing new product in order to minimise the risk of failure ?

24

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

25

Customer centric approach.

Yet product is success in market, some prior financial analysis is required.

Don’t get too much attached to product otherwise company can fall in pitfall.

26Thank you

27

Questioning