Name Rajiv Prabhu

Question 1

Whole Grain Pizza

- Adopted the general feedback method

- Existing customers as well as potential customers and people who brought fresh
Pasta were also asked for feedback
- Sampling was done by providing people with samples for trial

Fresh Pasta Sauce & Cucina Fresca

- Adopted Nielsen methodology

- Taste was not a part of this methodology as there was no sampling involved
- Potential customers, customers who purchased Fresh Pasta earlier were also
interviewed
- Sampling was done with the customers with the help of sample kits.

Food is an important category which is determined by taste and quality. I think the first
method of research process is more robust since it carried out in-depth concept survey with
sampling and feedback gives a proper visibility for product testing. The study may be flawed if
the projected volume based on the assumed scenarios changes for the product lines for pasta.

Question 2

- Fresh Pasta was launched in a relatively new market, its purchase intent of the top two box
was only 79% and higher mean likeability of 4.2
- However, it is significantly lower for non-customers at 54% which indicates either
creating awareness through marketing campaign
Question 3

In the case, it is discussed that Eckstein believed that true penetration could actually range between 5% and
15%. Hence considering this as the basis for the worst-case scenario for the penetration I have considered
5% as the lowest penetration for non-customers and customers. Also, the second parameter which is
considered for % of households repurchasing in the mediocre product rate of 21%.

Non-
Customers Source
Customers
Definitely would buy 15% 26% Exhibit 7
% of "Definites" who actually buy 80% 80% Exhibit 5
"Definite" Purchases 12% 21%

Probably would buy 39% 53% Exhibit 7

% of "Probables" who actually buy 30% 30% Exhibit 5
"Probable" Purchases 12% 16%

Trial Rate ("Definite" + "Probable") 24% 37%

Target households (MM) 58.8 58.8 Table B

Penetration, % of target households 5% 5% Table B
Awareness of pizza product 12% 50% Table B
ACV distribution 40% 40% Table B

Adjusted Trial Households 0.0 0.2

Total trial households (Non-Customers +
0.2
Customers)

% of households repurchasing 21% Exhibit 5

Repeat purchase occasions Table B
2

Total purchases (Trial + Repeat)

0.4

Retail selling price $12.38 Table B

Retail sales revenue $4.4M
Retailer gross margin 35% Case text
TruEarth sales revenue $2.8M

The parameters for the best-case scenario is based on the range for true penetration based on Eckstein
discussion in the case by 15%. The parameter for the % of households repurchasing by the product scenarios
of excellent product is 49% which is considered the second parameter.
Question 4

As per the data in exhibit 6, the Takeout/ Delivered Pizza & Restaurant Pizza are the top 2
Pizza Categories for the below given reasons:

- Takeout/delivered Pizza accounted for 47% of share in the last 10 pizza

consumption occasions, also when taken out, accounted for 43% for next 10 pizza
orders.
- Restaurant Pizza accounted for 23% for the last 10 pizza consumption occasions,
also taken out 22% of the next 10 Pizza eating occasions

Advantages over the competitors’ categories:

- TruEarth pizza is made from healthy and high-quality ingredients.

- It is considered as a pizza for the whole family, as the pizza is also easy to prepare

Disadvantages:

- TruEarth pizza is looking to establish as a Gourmet and hence price is one of the
disadvantages, as per Exhibit 10, we learned, consumers who looked forward to buy on
average are ready to pay $10.75 and unfavorable one at $8.86, whereas the price of the
pizza with one topping pack would be around $11.50

- The overall taste also has a lot of scope for improvement.

Question 5

As per Exhibit 10, we can conclude, the Whole Grain Pizza is not appropriately priced for the
customers. As discussed, that 1.25 toppings with each pizza, the average retail price for TruEarth
Whole Grain will be about $12.38. However, the other pizza, considering the favorable product, priced
at $10.75 and unfavorable product expected to be prized at the mean of $8.86.

Other Pizza for the frozen one expects mean price of $7.43 and for delivered/take out, customer price
expected to be around $11.72. Hence the price may be a area of concern for TruEarth, however if the
taste and quality of the product are good and significant improvement on healthy pizzas will attract
customer at TruEarth.

Question 6

In the qualitative approach, we consider carrying out the SWOT analysis to understand the
business and making a decision. SWOT analysis will focus on internal analysis which would
help the organization to understand strengths and weaknesses.

Strengths: Successful launch of Cucina Fresca allowed company to establish a market share
and distribution network, strong enough to be positioned in the niche category.

Weakness: Market share could be comparatively smaller within ready-made meals.

Opportunities: New product offers a varied approach to ready-made pizza.

Threats: Big players competition from Nestle and Kraft MI based Riggazi, is equally matched
within niche. Frozen pizza market is saturated with slow growth.

In my opinion the product can be launched successfully as the company is not afraid of
innovating new tastes, however it is essential to strategize the launches and plan it systematically.

We see that in last few years has been great for Pasta which has created a brand image for the
company. The company can leverage this to higher advantage for the new and emerging markets.
Pizza market is comparatively a larger market than pasta and a successful reputation of
TruEarth allows it to take calculated risks and launch in new segment of Whole Grain Pizza.
Criteria Pasta Pizza Remarks
Purchase Intent (Based on Exhibit
3 & 7)

Definitely would buy 27% 18%

Probably would buy 49% 43% Trial Rate is higher for Pasta than Pizza.
"Top Two" Box 76% 60%
Mean Likeability** 4.1 3.7 Likeability is higher for Pasta
Mean Price/Value rating** 3.2 3 Prize for pasta is higher than Pizza

Concept Likes
Food Quality
Whole grain 32% 19% Concept of whole grain Pasta is more
Freshly made and dated 38% 31% liked than whole grain pizza. It is also
seen that freshly made and dated is
Looks Apetizing 22% 24% Freshly made

Preparation
Product Selection 17% 16% For ease of preparations, Pasta is easier to
Easy to Prepare 21% 16% prepare

Other
TruEarth brand name 33% 24% Customer prefers TruEarth Brand Pasta
Good Price 18% 9% for its price

Dislikes
Limited Selection 20% 23% limited selection, price, preparation time
Not cost effective 8% 27% & shelf life are the factors responsible
Limited Shelf life 16% 12% for making pizza less prefferred

However, there are certain concerns which should be taken into consideration in order to gain
the market share in the highly competitive market. Quality, taste, and portion of toppings on pizza
will help to boost the reputation in the new segment. Overall, a consideration of the launch of the
pizza will open new segment and will have a huge impact on the gains in bottom line and top line
revenues. I think it would be best for TruEarth to expand their product line and launch pizza on
priority basis.