SCHWAN FOOD COMPANY(SCHWAN)

SCHWAN FOOD COMPANY- LARGEST FROZEN FOOD COMPANY

Started as SCHWAN’S HOME SERVICE(SHS). US based snack food company. Initially an ice cream home delivery business in march

1952 by MARVIN SCHWAN. Primary motive was to help marvin’s family dairy

business. 1965 they started selling frozen pizza and ice cream

through delivery trucks to expand as market leaders. innovators and developers. Expanded in almost 50 countries by early 21st century

Offer ice cream , pizza, meat, sea food and other desserts.

Schwan was strong, solid, well managed, fast growing innovating company with high business ethics and excellent reputation.

It’s a hybrid organization with innovation and execution excellence.

SCHWAN FOOD COMPANY AND ITS DIVISIONS

Schwan global consumer brand retail grocery store) Schwan consumer brand north America Schwan Europe

Schwan France Schwan food (GMBH) SCHWAN CONSUMER BRAND

Schwan home delivery Schwan food service groud(value added frozen

food) Schwan food service Schwan bakery

Subsidiaries Export information service(Automobile Insurance)

Bi phase technology(Automotive Business) Schwan call center(Inbound& Outbound)

RED BARON

Introduced in 1976. Offer UMBRELLA BRANDING. Throughout day snacking solution to

customers. First national frozen pizza offering. Frozen pizza segment prove to be a WINNING

PROPOSITION. Provide quality snacks. Provide a family product for busy mothers.

RED BARON –NEW PRODUCT DEVELOPMENT

Schwan focus on development of new offerings COMPETITION and LACK OF GOOD QUALITIES

and in single serve snacks which produce gap. So schwan wants to fill this gap.

An attractive value proposition for further development.

Microwave snacks were introduced. Till now oven was used for Baking purposes time

consumption was 11 min to 17 min which was too much.

To lure lots of customers time cutting strategy was used by using microwave technology.As they provide shorter time.

Project Razor was started for this purpose a special core team was projected for it.

Research & Development,Process Engineering officers were appointed for its success.

Innovation through communication was used in it. Cross functional team working on it. Triangular shape is selected by team to make it

more attractive. Defects were removed through focus group

studies,concept testing,consumer testing,what if scenarios.

Top secrets was maintained so that new idea should not leak out.

PIZZA INDUSTRY IN US

Basically oriented from Italy as a food for working

Started by italian immigrants,one of whom start pizzeria in New York in 1905.

Variations to make it more popular. In 1950 pizzerian evolved from small outlets

to restaurants offering pizza in various sizes & shapes.

Concept of mobile phone orders started from here.

Popular between childrens,pre-teens,teenagers,young adults.

Corporate sectors find potential,Mcdonald start operating in this field.

Then pizza hut,domino’s(USP home delivery).

US FROZEN FOOD INDUSTRY IN 21ST CENTURY

Retail sales of frozen foods in 2001:$26.6 billion(up 6.1% from 2000).

Frozen food sales in 2001($40 billion)were one-third of total foodservice sales.

Over 96%of restaurant owners planned to use frozen food for their table sevice operations.

For Quick service operations,100% of restaurant owners planned to use frozen food.

Developments in food technology were expected to make differentiating between frozen and non-frozen food(after preparation) extremely difficult in the near future.

On an average trip to supermarket,94% shoppers sometimes purchased frozen food.

Of the total number of shoppers,30% always bought frozen food.

By 2003,the market for frozen appetizers and snacks was expected to increase to $662 million from $411 million(1998 figure).

US FROZEN FOOD INDUSTRY-GROWTH(2001)

Category Sales(in $ billion) % change(over 2000)

Meat/Seafood 2.4 13

Baked Goods 1.4 9

Pizza 2.47 6.4

Prepared Foods 7.2 6.1

Ice-Cream 4.5 5.7

Vegetables 2.9 4.3

Breakfast Foods 1.05 4.1

STRATEGIES Customer centric approach was unique. Involvement of entire company & external companies. Long term strategy & team work help Red Baron. Focused efforts are used. Growth through acquisitions. Innovation & customer service. Market segmentation to capture all types of markets. Direct to home food delivery. Differentiated strategy is used in case of frozen pizza’s

are:- Tony’s -positioned good value Brand. Freschetta-upper premium offering. Red Baron-family product for busy womens.Looking for

quality snacks at cheap rates.

PRODUCT DEVELOPMENT & INNOVATION

Technology integration. Food service equipments. Toll free number. Website(www.schwans.com) Rising crust technology in 1990’s to made

possible for customer to get restaurant take away at home.

This leads to lower pricing & product innovation factor & increased convenience.

New innovation single serve pizza for individual need(single serve segment).

CUSTOMERS

Retailers Institutional

buyers,schools,universities,hospital. Grocery stores across all the states. Restaurants. Chain stores. Healthcare institutions.

BRANDS

SHS-schwan home service Tony’s-frozen pizza Freschetta-frozen pizza Red Baron 1976-umbrella brand throughout

the day snacking solutions Pagoda-frozen asian food & egg rolls Larry-microwave ready dishes Chicago town-frozen meals Edward-frozen meals Mrs.Smith –frozen pies Coyote grill-premium quality southwestern

food

REWARDS GIVEN TO SCHWAN FOOD COMPANY

In oct 03 schwan won 2003 spirit of innovation award in retail category for Red Baron stuffed pizza slices.

Stagnito’s New Products Magazine-Best product of year.

Refrigerated & Frozen Food-schwan 2003 of year.

Maximum no. of products launched by schwan.

World’s largest frozen pizza processor & in market share was next to kraft food.

www.foodprocessing.com stated-no other food on planet lends itself to variations in form & flavor quite like pizza.