Pasta Perfect Case Study

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Pasta Perfect Case Business Strategy February 2005 Situational Analysis A. Environment/Market structure • Environment factors that impact Pasta Perfect are: demographic environment, social/culture environment, technological developments, and competitive environments. • The market size of the prepared pasta, or refrigerated pasta, was worth $100 million in 1988, projected sales for 1990 where $150 million and for 1995 $250 million. From 1988 to 1990 the gross sales for the pasta market grew fifty percent, and by 1995 sixty six percent. The entire market is estimated to jump from $1.6 billion to $11.2 billion. One key segment for the market is consumers that are price conscious bearing their decision solely on the lowest priced product. Another key segment for the market includes consumers who prefer quality with price having little involvement in the purchase decision. • The key segments for the market are consumers who prefer quality and freshness over price, upper middle class consumers who live in urban areas, mainly supermarket shoppers, dual income families, and those consumers who need meals that are quick to put together. The buying behavior of this market relies on quality rather than price, along with the healthy aspect of pasta. These consumers posses adequate disposable income to purchase these items. The time needed to prepare the meal may be the choice between you and the competitor. • Future prospects for the industry lead to further diversification of the products by offering a package deal of fresh pasta and sauce in one product line. This will allow the low profit margin pasta to team up with the high profit margin, sauce. The dry pasta may do the same or they may offer many different flavors, styles, or even cut costs further. • Market

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