Name Chinmay Pandya

Question 1

Fresh Pasta and Sauce – Cucina Fresca

 Adopted the Nielsen methodology of Bases I study to understand the awareness

and interest in purchasing.

 It did not cover about the taste of the product since there was no sampling carried out.

 Without knowing the actual product quality, Bases created three scenarios – one for
mediocre, average and excellent.

Whole Grain Pizza

 Adopted the general feedback from TruEarth team and commissioned Bases II
line extension study which included concept survey and in-home product usage.

 Additional quota of respondents who were customers earlier and bought Fresh Pasta
were also interviewed.

 Carried out sampling with the customers by using sample kit for a home test.

Question 2

According to the statistics shown in Exhibit 7, Total sample size was 300 out of which 75
people were existing TruEarth customers and 225 were Non- TruEarth customers. The key
inferences are as follows
The existing TrueEarth customers are more likely to buy the new Whole grain Pizza product
than the non-customers.
According to mean likeability, existing TruEarth customers like the idea of fresh whole grain

Pizza than the Non-customers.

The comparison can include fresh pizzas in general in order to get better insights. Comparison
with Exhibit 3
Customers think of same level for value of Money for both Fresh Pasta and Fresh Pizza.
Customers like the idea of fresh whole grain Pasta more than that of Fresh Pizza.
The people are more likely to buy Cusina Fresca Pasta than Fresh Pizza according to the top
two boxes of Exhibit 3 and Exhibit 7.

Question 3

As per the worst-case scenario- Revenue Generated will be -$9.7M 1.Market penetration for
Cusina Fresca Pasta would be - 5%, •this is considering the market penetration for the earlier
TruEarth product is less which Gives less exposure of the TruEarth Customers.
According to Exhibit 7 inference, Existing TruEarth customers will be more likely to buy the
Whole Grain Pizza. 2.The product quality could be considered as Mediocre.
This is going to affect the repurchase rate of the product

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

Exhibit
Probably would buy 39% 53% 7
Exhibit
% of "Probables" who actually buy 30% 30% 5
Proable Purchases 12% 16%

Trial Rate 24% 37%

Target House hold (MM) 58.8 58.8 TableB
Penetration% 95% 5% TableB
Awareness 12% 5% TableB
ACV distribution 40% 40% TableB
 Adjusted Trial Households 0.6 0.2
Total trial households (Non-Customers + Customers) 0.9

Exhibit
% household repurchasing 21% 5
Repeat purchase occasions 2 TableB

Total purchases (Trial + Repeat) 1.2

Retail Selling price $12.38
Retail Sales Rvenue $15.0M
Retail Gross Marging 35%
TruEarth sales revnue 9.7M

Market penetration for Cusina Fresca Pasta would be-5%

a) this is considering the market penetration for the earlier TruEarth product is less which gives
less exposure of the TruEarth Customers.
b) According to Exhibit 7 inference, Existing TruEarth customers will be more likely to buy the
Whole GrainPizza.

The product quality could be consideredas Excellent.

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

Exhibit
Probably would buy 39% 53% 7
Exhibit
% of "Probables" who actually buy 30% 30% 5
Proable Purchases 12% 16%

Trial Rate 24% 37%

Target House hold (MM) 58.8 58.8 TableB
Penetration% 95% 15% TableB
Awarness 12% 5% TableB
ACV distribution 40% 40% TableB

Adjusted Trial Households 0.6 0.2

Total trial households (Non-Customers + Customers) 0.9

% household repurchasing 49% Exhibit

 5
Repeat purchase occasions 2 TableB

Total purchases (Trial + Repeat) 2.4

Retail Selling price $12.38
Retail Sales Rvenue $29.8M
Retail Gross Marging 35%
TruEarth sales revnue 19.4M

Question 4

The two pizza categories are : Frozen Pizza and Restaurant pizza

Advantages:

 Frozen pizza has a longer shelf life.

 At restaurant there are fresh ingredient used and you can have more choices.

 At restaurant, they are served.

Disadvantages:

 Frozen pizza don't taste great compared to fresh ones.

 They are cheaper.

 One has to visit the restaurant to eat at the restaurant pizzas.

 Restaurant pizzas are usually more expensive.

Question 5

In customers view the pizza is high priced. The data ( in exhibit 10) reveals this under below
mentioned categories :
 The Prize of pizza itself is $12.38 which is higher than any pizza in the market.

 Customer unfavorable are willing to pay until $10.75 only.

 The ones who are unfavourable to product are only willing to pay $8.86.

Question 6

To determine if we should go ahead and launch the pizza or not, we can conduct a SWOT
analysis which is a powerful tool evaluate your launch for Whole Grain Pizza.

SWOT analysis is a technique used to determine and define your Strengths, Weaknesses,
Opportunities, and Threats - SWOT.

Strengths:

 TruEarth as a company is highly selective about the ingredient Customer awareness

programs using coupons, magazine advertisements, and in-storedemonstrations.

 Formal 4-step process for research and development and use of Nielsen for market
research

 It has success in market experience in Launching new products with the pasta range

 Easy preparation. but gives customers the chance to be involved in the cooking process.

 It allows customers to customize.

 Refrigerated pizza is considered to be tastier than frozen pizza as per market survey

 Surveys showed that 33% of people had "strong interest in a whole grain crust.

Weakness:

 Pizza kit feeds only 2-3 people

 Consumers have to buy toppings separately which is an inconvenience

 Priced high at $12.38 as compared to market average.

Opportunities :

 Leverage the existing relationship with North Dakota durum wheat supplier to supply
wheat for pizza dough.

 Contract with local cafes and other gourmet specialty restaurants to offer products in
other store formats.

 Leverage TruEarth brand name to enter the pizza market to cash on the brand loyalty

 TruEarth is considered to be high quality so we can utilize this to demonstrate the

benefits/product attributes of the pizza product

 Higher customer awareness due to the success of fresh pasta Cucina Fresca.

Threats:

 Consumers may not purchase additional toppings

 Rigazzihas tested a pizza concept and is preparing to introduce it

 Competitors may quickly replicate whole-grain pizza kit and price them lower to win larger
share of the market

 Nestle and Kraft dominates the frozen-pizza market

 Other outlets for pizza like restaurants, take out etc

 The pizza crust may not be as fresh as the takeout crust.

Conclusion:

 In the U.S, Pizzas have greater demand under Italian- American food category worth
$53billion share in 2007,It has great market share, where about ( (% of consumers are
having pizza at least once a month and importantly 33% of people had 'strong interest' in
 whole grain crust

 Market survey of new Pizzaoffering considering health factors, mostly received positive
response and price is also reasonable i.e., aPizza which can feed 2 to 3 people can be
priced at $8.00 and individual topping packs at $3.50 each which is in line with our
expected launch price

 As packaging equipment already made due to existing manufacturing lines, the

incremental investment is substantially less than Pasta which included some retooling
cost and the market plan and margin structure is similar to pasta, with food retailers
expecting 35% gross margin

 As TruEarth has 13% penetration of Cucina Fresca pasta, it is expecting penetration can
be in the range 5% to 15% in highly potential markets and to meet company's return
requirements, whole sale volumes needed to exceed $12 million which can be met
probably So, it is favorable to launch Pizza. The Company would benefit the most by
launching the new whole grain pizza product. Refrigerated pizza is considered tastier,
more authentic than frozen pizza and TruEarth can benefit from being the first mover
advantage in the store-bought refrigerated pizza market. TruEarth must venture into new
categories in order to raise brand awareness, seek new customers, and increase our
profits. TruEarth can retain their leadership as a gourmet, healthy alternative because of
the health-conscious trend and hence should expand their product line.