Romacorral foods

No part of this document may be reproduced in any form without the permission of the copyright holder. Module 3 Assignment 5 Practice Case Examination Backgrounder The background information relating to the Case Examination Backgrounder is provided to candidates in advance of the examination date. The Backgrounder contains information about both the company and the industry involved in the case. Candidates are expected to familiarize themselves with this information in preparation for the analysis that will be required during the Case Examination.

Romacorral foods

In an attempt to retain our leadership position and extend our product line, we have invested in the development of a new whole grain pizza.

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We must decide whether to launch our pizza offering. The decision-making process is time sensitive because one of our competitors, Rigazzi Brands, has already tested a whole grain pizza concept and is not far from introduction.

Romacorral foods

Given these factors, we can either debut or suspend the product. Based on sales volume estimates and situation analysis, I recommend that the company launch the pizza. The introduction will result in a wholesales volume that exceeds our return requirements and these additional funds can be reinvested into the firm.

Launch Whole Grain Pizza Product The launch of a whole grain pizza kit will capitalize on the same consumer trends that prompted the release of Cucina Fresca: Also, pizza is a core component of the ItalianAmerican food category that we cannot ignore because it is frequently purchased by customers on a monthly basis.

Our whole grain pizza product resolves the time- and health-related concerns of American consumers in one of their favorite dishes see Exhibit 1: The growing demand for a whole grain crust has been addressed by local pizzerias and take-out franchises, but not in the store-bought refrigerated pizza market.

The immediate release of the pizza kit would allow us to penetrate this market before Rigazzi and benefit from first mover advantages. The excess returns can be reinvested into the firm and used to expand our manufacturing facilities or further extend our product line.

If the pizza kit is launched, the firm must consider the potential consequences. Likewise, we must review the potential consequences if the wholesale volume estimate is calculated using the percentage repurchases when the product is perceived to be of mediocre or average quality see Exhibit 3: Although the market generates high sales, it is extremely crowded and dominated by powerful players like Kraft and Nestle.

Furthermore, the ability to market a tasty whole-grain pizza crust and communicate its benefits will be difficult because the American public perceives whole grains to be less appetizing than white flour.

Attempting to change consumer preferences is timely and costly. By foregoing the release of the pizza kit, the company can focus solely on Cucina Fresca.

The operating facilities will not have to worry about manufacturing two different product lines and our distribution infrastructure will not be overworked see Exhibit 1: Likewise, our marketing team could concentrate on attempting to revive the pasta meals.

This product has proven to be successful at one time. Investing all of our resources into the pizza product could be both disastrous and expensive considering we have no experience in this market category. However, by shelving the pizza, an opportunity is lost because our company would be ignoring the needs of a potentially profitable market.

The health-conscious trend is not going away and our firm needs to expand our product line in order to retain our leadership as a gourmet, healthy alternative. Recommendation At this time, our company would benefit the most by launching the new whole grain pizza product.

By not launching the pizza kit, our investments and time can be focused on expanding the pasta line and retooling the marketing campaign to improve sales; however, in order to diversify the TruEarth brand name, innovation is needed.

Although the pasta market may seem safe, we must venture into new categories in order to raise brand awareness, seek new customers, and increase our profits. We are only off of our return requirements by a small margin 1.

Our future sales volume will most likely cover our initial return requirements in the 2nd year and our losses from the 1st year.RomaCorral Foods Case CPA; CPA mock evaluation Author: crystal 3 downloads 24 Views KB Size. Report. Recommend Documents.

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Health Coaches Consulting Case. Cma Case Essay MODULE 3, ASSIGNMENT 5 January 17, Topic: Practice Case Examination RomaCorral Foods Ltd. Overview In this post-session assignment, candidates work on a case that focuses on a Canadian public company called RomaCorral Foods Ltd.

(RCFL) that owns and operates two chains of restaurants in Canada.

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