1.

How do the pizza concept test results (Exhibits 7 and 8) compare with the findings for
pasta (Exhibits 3 and 4)? (PI and Concepts)

Pasta Pizza
Purchase intent Purchase Intent
According to BASES study 76% of According to BASES study 79 % of TruEarth
customers are willing to purchase the customers are willing to purchase Pizza and
pasta. 54% of Non-Customers are willing to
purchase the pizza. In total 60% of the people
are willing to purchase the pizza
Concept Likes and Dislikes: Concept Likes and Dislikes:
Likes- Likes-
Wholegrain, 35% are favourable to the Wholegrain, 25% are favourable to the
concept. concept.
Freshness, 42% are favourable to the Freshness, 35% are favourable to the
concept. concept.
Easy to prepare, 24 % are favourable to the Easy to prepare, 20% are favourable to the
concept. concept.
Good price, 22% are favourable to the Good price, 13% are favourable to the
concept. concept.
Dislikes- Dislikes-
Limited selection, 15 % are favourable to Limited selection, 18 % are favourable to the
the concept. concept.
Too expensive, 3% are favourable to the Too expensive, 20% are favourable to the
concept. concept.

6. What can the TruEarth team learn from Exhibit 6 about how consumers view pizza?
(Pizza attribute and substitution)

Based on Pizza Attributes:

Attribute Takeout Pizza Refrigerated Pizza TruEarth Pizza

Caters to whole Rank 1 (8.9/10) Rank 3 (7.1/10) Rank 2 (8.6/10)
family Most of the people from Insufficient for the After Takeout Pizza,
the sample population whole family. second most
of 300 agreed that number of people
takeout served the agreed with it
whole family. serving everyone’s
needs.
Convenience Rank 1(9.3/10) Rank 2 (7.3/10) Rank 2 (7.3/10)
Since this is a ready to This pizza needs re- This semi-finished
eat product, it is the heating before pizza requires
most convenient. consumption. mixing of toppings
and heating before
consumption.
Easy N/A Rank 2 (7.4/10) Rank 1 (7.7/10)
 Preparation (Ready to eat product) The customers felt Majority of the
that in comparison to customers felt this
TruEarth, this was was easy to prepare
less easy to prepare. because of its
customizable nature
Freshness Rank 1 (9.4/10) Rank 3 (7.2/10) Rank 2 (7.9/10)
This is freshly made at Lowest rank in Ranked 2nd because
the demand of the freshness because it of premium and
customer and delivered frozen and has a long fresh ingredients.
hot. shelf life.
Varieties Rank 1 (9.1/10) Rank 3 (6.3/10) Rank 2 (6.7/10)
Since it is made on As it is pre-packed, it Though it is pre-
demand, the customer can only come in packed, TruEarth
can alter/change the some variants. gives the option of
toppings and customize customizing your
the pizza on every own toppings which
consumption for more are separately sold.
variety.
High-Quality Rank 1 (8.4/10) Rank 3 (6.2/10) Rank 2 (8.1/10)
Ingredients Since face-to-face Frozen pizzas are TruEarth is gaining
interaction is there, plus low-cost, so to save recognition due to
the large-chain money, ingredients its premium
restaurants love their are not of high-quality. ingredient POP.
brand image, they
make this point as a
POP.
Healthy Rank 2 (7.1/10) Rank 3 (5.9/10) Rank 1 (9.1/10)
Ingredients These pizzas are made Refrigerated pizzas Since the pizza
up of refined flour, have preservatives base is made out of
Canola oil, tomato present in order to whole-grain,
sauces with make the shelf-life contains extra-virgin
preservatives that long lasting. olive-oil and made
makes it unhealthy to with tomato puree
consume in the long that make it
run. healthier than
conventional pizzas.

Substitution:
Out of the sample of 181 people, we came to the inference that a total of 17% people would
agree to eat TruEarth Pizza after its introduction into the market. We conclude that the
highest percentage shift in the consumers (total 11%) is from the refrigerated and the Frozen
pizza market holders. 4% of the consumers from the takeout/delivered pizza also shift to our
pizza owing to the premium quality and healthier ingredients used. A detailed table showing
the substitution in the market share is shown below –

Market Share Pre introduction Post introduction % Market share

Holders market share % market share % captured by
TruEarth
TruEarth whole grain - 17% 17% (in total)
Pizza
Takeout/Delivered 47% 43% 4%
 Pizza
Restaurant Pizza 23% 22% 1%
Refrigerated Pizza 9% 3% 6%
Frozen Pizza 19% 14% 5%
Homemade Pizza 2% 1% 1%
TOTAL 100% 100%

Q7. Using the forecast model for pasta shown in Exhibit 5, what is your forecast of the
demand for pizza?
Our Forecast for Pizza demand -

Q8. Whether to launch or not to launch?

As per our calculations, we think that we should launch the product. We know that the
company’s volume should exceed $12 million dollars to meet company’s return on
investment. As per the above, we know that our Target household is 58.8MM and our market
share is 17% (Exhibit 6). Further, the sales penetration is believed to be between 5%-15%.
Considering an average sales penetration of 10%, we recalculated the total revenue that we
would generate at this rate of penetration. At an average sales price of $12.38 and taking
into consideration the repurchases, we were able to exceed our total revenue from $12
million dollars.
We also considered other qualitative factors while arriving at this decision to launch the
product. We feel that TrueEarth focusing on healthy and premium ingredients will be able to
gain popularity among the consumers because of the increasing demand for healthier food
options. We also know that for the earlier pasta launch done by TrueEarth, they gained a
competitive advantage as they had launched the product earlier than the competitors. In a
similar way, we think that launching our product before our competitor would give us an
added advantage by helping us gain more market share and revenues.
Q9. How do you interpret the findings in Exhibits 9 and 10 to evaluate interest in pizza?

Out of the sample size of 300 people, 181 were favourable to the concept of TruEarth’s
whole-grain crust Pizza. 109 were favourable to the product while 59 weren’t.
 Some of the key parameters that were in favour of our product were the taste,
texture, whole wheat crust, cheese, sauce, toppings, fresh ingredients and decent
price.
 The parameters that weren’t in favour of our product were too expensive, more
expensive than restaurant, Overall taste, quality and texture, dislike the crust and the
family dislikes it.
 The suggested improvements given by both the groups who were in favour and not in
favour of purchasing our product was on grounds of needed improvements in the
taste and sauce, to make a less chewy crust and a lower price.

As per Exhibit 10, our product is priced at an average of 12.38$ and we obtained from the
exhibit that 14.3% person of the people are favourable to purchase our product in the range
$12-$14. From exhibit 9 its evident that 45% of the people think it is too expensive and the
price factor drives their decision. We observed from the exhibit that when the price ranged
from $6-$8, the percentage of people who are favourable to buy the product are 15.5%.