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CASE PRESENTATION ON SCHWAN FOOD COMPANY

Archana Viswanath Ritesh A S Sitara Makam Prithiv Prasad Soham Bhattacharya

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PRESENTED BY- GROUP A6

DATE- 07/AUG/2013

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Case Facts
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Started as Schwan‟s Home Service(SHS) in 1952, as an ice-cream home delivery business by Marvin Schwan

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Country‟s largest direct-to-home food delivery service

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Buyers of frozen pizzas consisted of Institutions and Retailers
Operates in 3 primary business units: SHS, Schwan‟s Global Consumer Brands(SGCB), Schwan‟s Food Service Group(SFSG)

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Marketed frozen pizzas under 3 brand names: Tony‟s, Freschetta and Red Baron SGCB operated two divisions: Schwan‟s Consumer Brands North America(SBNA) and Schwan‟s Europe

3 Contd. o 3 subsidiary unrelated businesses -Explore information services -Bi-phase technologies -Schwan‟s call center 8% annual growth in the industry „Frozen food‟ segment grew at the fastest rate Tag line. fir every appetite” o o o ..“from morning to night.

convenient and universally appealing product The idea came about as it links a potential bundle of attributes with the potential market Schwan wanted its product line to stand out amongst the plethora of brands available in the market Sources of Information: Internal.Idea generation • • • • 4 Single Serve lacked a good quality.R&D  External.Environment and the technological world .

To help the toppings remain in the same place .They came up with a technology which would leave the crust crispy  Food Starch:.5 Need Form Technology  Need    A snack that could be microwaved Reducing the time to prepare One person can consume  Form   Triangular stuffed pizza slices In one box two triangular shaped stuffed pizza were offered  Technology  Microwavable:.

6 Techniques for activating idea  Focus Groups What If Scenarios   Brainstorming Cross Functional teams were created  .

Expertise in frozen pizza business and manufacturing capabilities  Internal Strength Screen   Strategic Screen   Huge growth potential in the market High Competition .7 Idea Screening Screens they seem to have used are as follows: Growth Screen   A whole new category of product-market Expand domestic and global market share(in North America and Europe) within a product category Company Capability:.

Schwan Food Company which is known for its innovation and quality. Ranked 6th in terms of new product launched .8 Concept testing Test of perception was carried out efficiently as it considered the 3 dimensions mentioned below Pluri-signified product   Material/object:.Frozen Pizza which is microwavable and single serve Symbolic:• Pizza as mentioned in the last exhibit was “a part of the everyday informal life of Americans For Busy mothers looking for quality snacks Any time of the day it can be consumed • •  Manufacturer:.

9 Full Screen  Various Cross functional teams were formed o o o Different departments were integrated to come up with cross functional teams High Level of communication between R&D and operations Even external parties like equipment suppliers and packaging departments were involved  Technical accomplishment:o o Here they already have technical capabilities like manufacturing R&D  Commercial Accomplishment:o To stand out from the plethora of brands available in the market .

Help from cross functional teams Customer needs     Reducing time to prepare Microwavable but still crispy   Single serving In this stage they were able to transfer the needs into technical specifications .10 Quality Function deployment  They focused on a customer centric approach  House of quality:.The attributes customer wants and translate them to engineering.

11 Problems faced during design stage  The problems they faced was as follows: Placement of the bottom part of the rolled out dough Dispensing the right amount of filling Covering the filling with upper layer of dough Cutting the dough into the desired shape Adding the topping     .

so they started a new manufacturing line form the scratch  Installed a new high tech production line To add the toppings the company developed a new substance.12 How they overcame it  As the design was new to Schwan Food co. food starch  .

Contribution of Design to New Product process  13 In this case we can understand that the following reasons contributed to the design: Design for Differentiation  Design to meet customer needs Design to build or support corporate identity  .

Just need to put it in microwave .“from morning to night.14 Principles of universal design  Equitable Use:.Appeals to all age group Flexibility in use:. for every appetite” Simple and innovative to use:o o   Takes less time Microwave is used to cook and still crispy o Adequate quantity  Low Physical Effort:.

15 Product Architecture  They checked whether the attributes of the product is matching with the customer needs    This process is called Product architecture Here they look whether the customer need is developed into a product design If not they need to go back to the drawing board .

16 Product Architecture Process Product Schematic & cluster semantic element yes Create a geometric layout no Check interactions between chunks yes yes .

innovation .busy mothers‟ Product differentiation.17 Assessment factors for design    Quality of user interface.technology.ease of usage Emotional appeal.

18 Prototype development  Comprehensive prototype Protocepts PD and PE departments Prototypes PD and PE departments Manufactured product .

.Selective .Television commercials .19 Strategic Platform Decisions   Permanence.Dedicated website and tie up with a national publication  Type of demand.Consumers needs and technology used were matched by going for product platform planning .Point of sale promotions .Advertising was done in the initial stages.Product launched to be permanent Aggressiveness.

• segments focused are upper and lower income • Positioning platform – Convenience and Price .20 Product Positioning Yoram Wind and Robertson model Positioning platform Segments to focus Upper income Taste Price Convenience Criteria1. Ability to market 4. Company capability 2. Market growth +-+- +-+- +-++ Middle income Lower income +-++ +--- +-++ ---- +-++ +--- From the model. Time to develop 3.

21 Importance of Cross Functional teams   Helps in establishing clarity of goals across the team All the parties were concerned in many ways with the development of the new product  Teams discussions took concrete shape in the form of triangular „stuffed pizza slices‟  Protocepts were first developed and converted to prototypes which in turn was finally translated to actual product .

Sensory group: • Matching the needs and products attributes Culinary group: • Maintaining the standards related to taste and other attributes Regulatory affairs group: • Statutory compliance Hi – Tech kitchen: • Combination of many kitchens and laboratories to design new products .22 Contribution by the Cross Functional Teams Engineering Dept: • Installation of new high tech production line Manufacturing: • Providing shape to the product.

23 Success behind the product??          Micheal Porter‟s view of importance of innovation given more prominence It was not a me-too product All the steps of NPD were followed sequentially Consumer needs and product attributes were matched at every step Value creation to consumers Effective communication through Cross Functional Teams Good R&D Capitalized on opportunity.attractive industrial growth Concept of Pluri-Signified product was implemented .

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