Trueearth - Case Analysis

1. Why was Cucina Fresca pasta successful? How would you compare the pizza opportunity to that for pasta? How would you compare the actual product development process for each?

A: Cucina Fresca Pasta was successful because of the following reasons:

• Increased demand “Home meal replacements” for the target market with dual incomes
• Per case TruEarth was the first mover, allowing them to gain a sizeable market share, the fresh whole grain category was new
• Time limitation and desire for variety and fresh food which were the crucial needs of the fast-moving society
• Cucina’s product development based on trial and intuitive basis suggests that descriptive and experimental market research was the key to success
• Absence of a strong player in the whole grain category also help the Cucina Fresca Pasta to be successful.
• The pasta was providing consumers a healthy and delicious food i.e. the pasta was made of whole grain and it tasted better than other refrigerated products
• Wrapping of the product was appropriate for the both old as well as new consumers as it contained easy instructions and allowing them to add their own touch.
• Shorter processing time i.e.  cooking time and the availability of different varieties.

Comparision of pizza opportunity to that for pasta:

Comparison of Product Development Process:

IDEA GENERATION:

PASTA

• Market need was greater quality, authentic and authentic mass produced highly processed foods.
• “Home Meal Replacement” trend started in USA.
• Growth of refrigerated fresh pasta.
• Awareness of whole grains and balanced food in the diet.

PIZZA

• Bigger market than pasta.
• Pizza demand in key demographics had been hurt by health concerns and people desired less carbohydrates in diets.
• 33% of people from survey of restaurant –goers showed a strong interest in whole grain crust.
• Lack of gourmet pizza with healthy, whole wheat crust and high quality ingredients.

CONCEPT SCREENING

PASTA

• 85% of people in favor of whole grain pasta when approx. 300 survey test carried across several cities.
• Results indicated 76% positive purchase intent comprising “definitely” or “probably”.
• At 35% gross margin there was a$14 to$24 million market opportunity for TrueEarth at wholesale prices.

PIZZA

• 33% people had “strong interest” in whole grain crust according to survey.
• The store bought pizza market totaled $5.8 billion making it larger market than refrigerated pasta, which was approx. $4.4 billion.

PRODUCT DEVELOPMENT AND TESTING

PASTA

• TruEarth test kitchen developed fresh whole grain pasta line dubbed Cusina Fresca with a full range of choices: cut pasta, tortellini and accompanying sauces.
• Concept was tested with focus groups who gave positive feedback.
• Market study to estimate Fresca’s potential sales volume.

PIZZA

• Developed a pizza concept to test which consisted a basic kit (crust plus separate packet of cheese and sauce) and a line of separate, complementary toppings:

• 3 extra cheeses
• sliced mushrooms
• Hormone free chicken sausage-crumbles.

• They conducted 300 mall intercept interviews after testing with focus groups.

QUANTIFICATION OF VOLUME

PASTA

• BASES Completed 300 concept tests across several cities.
• BASES I Study concluded with 85% people in favor of the concept.
• BASES II Created 3 scenarios and estimated repeat based on its experience with other food products

PIZZA

• BASES I conducted interviews in seven cities, interviewing consumers over age 18.
• The concept test consisted of photographs and description of the quality ingredients.
• In Bases II study, interested customers were given sample kit for home test.
• After 7-10 day period customers were called to gather after-use feedback.

1. What can the TruEarth team learn from Exhibit 6 about how consumers view pizza?

• TruEarth Pizza is better than other refrigerated pizza in terms of usage, taste as well as quality attributes. But when compared to take out category, people view the latter to be a better option even though they accept TruEarth pizza is made of healthier ingredients than the take out category.

• Despite consumers saying it’s healthy, very a few consumers are actually willing to buy it and change their pizza eating habits. Most consumers would continue to follow the trend of having takeout, homemade, refrigerated and frozen pizzas.

• TruEarth pizza consumers believe that it’s healthier than traditional pizza and is mostly favoured for its healthy ingredients, which is its USP.

1. How do the pizza concept test results (exhibit 7&8) compare with the findings for pasta (exhibit 3&4)?

        The following comparisons can be drawn from the results of the pasta and pizza concept:-

• Quality of food, whole grain is important to all people whether favorable to concept or not for pasta more than for pizza
• Small increase in total and favorable percentages show that the date of making and freshness of product matters to those who are favorable towards the concept of pasta
• Appetizing looks for the pizza are slightly more important to the people in favor of pizza concept in comparison to those for pasta
• Overall importance of food quality is more important in the pasta concept than pizza. But to those unfavorable to either, whole grain food is the major issue.
• Participants value the easiness in preparation of pasta in terms of numbers of pizza but the perception could be built because of the complexity of the pasta meal
• Pizza is seen as an indulgence and hence, is prepared in meals for 2 as opposed to single meal portions for pasta. The idea of being able to make own pizza with choice of toppings gains importance because of this attitude of customer. Since people find pizza an indulgence and how Truearth is selling pizza, it is seen as too expensive and less value for price
• Similar is the case with likeability of pizza concept, which is high among the people who used the pasta concept. But in general the pizza concept finds less value for money rating

1.  Is there first mover advantage in pizza as that of pasta?

• The pizza concept for whole grain is a highly sought after product and the competition from Rigazzi’s pizza and the already established substitute products, makes it important for Truearth to try and utilize the early mover advantage.
• The product differentiation in ‘healthier than take away’ and ‘fresher than frosted foods’ gives it a new projection in the monopolistic pizza market which is going to be short lived if competition enters making whole grain fresh pizza indicated by the information of Rigazzi’s attempts and potential threat from much big players in Kraft and Nestle.
• Hence it is important for Truearth to act swiftly and decisively to capture market in this sector utilizing the first mover advantage.

1. How do you interpret the findings in exhibit 9&10 to evaluate interest in pizza?

From findings of exhibit 9 we would like to conclude that

• Out of 168 people 109 (65%) indicated they were keen on purchasing the product. Hence product is likely to be successful in the market
• Need to reduce prize as much as possible as pointed out by the market research.
• Regarding to different elements of taste there is very less concern. So they need not alter the current formula.

1. Would you launch the pizza?  

From forecast we can see that:

• The potential market for refrigerated whole grain pizza is as big as 7.5 Million units
• From exhibit 9 & 10 we would like to say that after doing some changes in price, launch of pizza is likely to be successful.

Hence we would go ahead with the launch of Pizza