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Tru Earth
Tru Earth
Tru Earth
Exhibit 7
Exhibit 5
Table B
Table B
Table B
Table B
Table B
Table B
Table B
Case text
WO implication
- Lower price and/or increase the quality;
- Invest on advertising to raise awareness of
"bad" carbohydrates, emphasize the high
quality and heathy ingredients, and focus
more on convenient feature to attract more
customers;
- Focus more on established customer base
because they have high brand awareness and
lower price-sensitivity.
WT implication
- Lower price and/or increase the quality;
- Invest on advertising to raise awareness of
"bad" carbohydrates, emphasize the high
quality and heathy ingredients, and focus
more on convenient benefit of refrigerated
products to attract more customers and
avoid benchmark;
Climate Company
Opportunity Strength
- Growing niche market of healthy - Four-step process for R&D;
and high quality foods; - Whole grain products are tastier
- Growing trend of "Home meal than most competitors' whole grain
replacements"; products;
- Highly potential Refrigerated - Brand commitment in healthy
pizza market ($5.8B). foods;
Threat - Ready packaging equipment and
- Whole grain pizza is not a new distribution infrastructure.
idea like fresh pasta with whole Weakness
grain option; - Market research has potential risk
of inaccuracy.
- High price for high quality
products;
- Whole grain crust is less tasty than
traditional crust;
- Fresh products have short
expiration period.
Collaborators Customers Competitors
Opportunity Opportunity Opportunity
- Establish close relationship with - Introduce healthy ready-made / - Become the first one to introduce
suppliers to lower price and semi-made products due to an refrigerated whole grain pizza.
maintain quality consistency. increase in disposal income and Threat
Threat "time poverty"; - High threat of direct competition
- Medium bargaining power from - Cucina Fresca's customer base from Rigazzi;
one supplier of wheat; penetration; - High threat of the same product
- Low bargaining power from other - Lower price-sensitivity due to from major restaurant chains (Papa
suppliers of high quality growing health concerns and high- John's and Pizza Hut);
ingredients; quality perception; - High threat of substitute pizza
- Low risk of inaccurate results - Offer premium price to product (low cost frozen pizza)
from market research firm established customer base. from big players (Kraft and Nestle);
(Nielsen). Threat - Medium threat from new entrants.
- Saturated substitute products
make it harder to introduce high
price products to new customers;
- Taste is still a significant factor
that affects buying decision.
TruEarth Healthy foods
Awareness
Cucina customers 50% 1470000 50%
non-customers 12% 6703200 12%
Available
Market
Access
All
Commodity
value(ACV) 40% 40%
Cucina Customers 588000
non customer 2681280
Puchasers
Definitely
would
buy(80%
actually buy) 80% 80%
Cucina customers 26% 122304 26%
non customers 15% 321753.6 15%
Probably
would
buy(30%
actually buy) 30% 30%
Cucina customers 53% 93492 53%
non customers 39% 313709.76 39%
Overall
Purchasers(
Households) 851259.36
Trial Rate 26.03813%
Purchases
Units
sold(1st
purchase) 1.25 1.25
Repeat purchase
repurchasers 49% 0.6125 49%
occasions 2 2
40%
1293600 1764000
2511936 2399040
80%
269068.8 26% 366912
301432.32 15% 287884.8
30%
205682.4 53% 280476
293896.512 39% 280687.68
1070080.032 1215960.48
28.1190358% 29.20847%
1.25
49%
2
12.38
32787787.22 37257637.09
0.65 24217464.11