TruEarth Healthy Foods

Marketing case analysis

FAS C1 Section 1
Aditya Kakani – 19F106
Ayush Ajmera – 19F114
Chetan Bandodkar – 19F117
Deepika Kothari – 19F118
Rohit Menon – 19F145
Q1. Why was Cucina Fresca pasta successful?
The reasons are as given below:
 TruEarth Healthy foods were the first to realise the market potential for
delivering products that would help customers in transitioning from mass
produced and highly processed food towards healthy food.
 The major reason behind the success of Cucina Fresca was Truearth was the
first one to launch whole grain products in the market, they were able to
capture the market first hand before anyone else.
 There was a rising demand for a home meal replacement, healthy food and
also not sacrificing with the taste.
 Seeing this as an opportunity, they were the first mover and took all
advantage of the market.
 The best thing about the cucina fresca was it was easy and quick to cook, no
complications was involved.
 It came with the proper instructions and also the options for different sauces
and which one would be the best.
 All boxes were ticked and this made the Cucina Fresca Pasta as the first
preference of the customer, making it successful.
 They sourced high quality ingredients.
 Their concept was rooted in promoting healthy food without compromising
on taste.
Q2. How would you compare the pizza opportunity to that for pasta?

Pizza
 Market of 5.8 billion dollar (about 30%
bigger).11% sales
 Considered as an indulgence
 Purchase intent is strong about 76%
 Already has an established brand
awareness due to Cucina Fresca
 Perceived price value gap is high.
 Has very heavy duty competitors
 Taste can be customized Investment is
incremental and substantially is less
Pasta
 Market of 4.4 billion dollars
 It is considered as a meal
 Purchase intent of 33%
 Launched as a new product
 First move advantage
 Product topping absent
 Customization not possible Investment
required is more

Q3. How would you compare the actual product development process for each?
Stages Pasta Pizza
Idea Generation Tapping the quick HMR Threat by competition in
market, need for healthy pasta segment, pizza
tasty whole grain market and healthier
options. foods.
Concept screening Formal surveys like mall Concept tests,
intercepts interviews of grocery
shoppers
Product development Convenience and variety Home trial through
and testing and testing through sample tests
focus groups.
Quantification of Customer awareness Customer interest and
volume and interest. Estimated quantification of
sales required: 14$ mn estimated sales and
repeat sales.
Estimated sales
required- $12
Q4. How do the pizza concept test results (Exhibits 7 and 8) compare with the
findings for pasta (Exhibits 3 and 4)?
By analysing the findings in Exhibits 3 &7, it is found that the pastas 'definitely
would buy’ and ‘probably would buy’ percentage are more than the pizza's
corresponding percentages.
By analysing the exhibits 4 & 8 it is found that the percentage of likes for pastas are
more than the pizzas. So from the research and findings in the exhibits it could be
said that the people are more favorable to the concept of fresh pasta than fresh
pizza. People have also disliked the concept of fresh pizza more than the pasta. And
also people in the favor of price of pizza being more expensive (27%) than the pasta
are in greater percentage (8%).

Q5. What can the TruEarth team learn from Exhibit 6 about how consumers view
pizza?
 From exhibit 6, it can be inferred that Truearth Pizza concept fares better than
normal refrigerated pizza in all aspects except in case of convenience in which
they are both rated the same.
 TruEarth pizza concept lags behind takeout pizza on all counts except in health
front.
 They can learn that people value pizza for the taste and easy usage attributes
based on the table provided. The TruEarth pizza would hence have to manage
in being the healthy option without compromising on the taste so that the
customers feel a natural transition from having pizza just for the taste to
having it for both taste and health.
 While the examples of comments from buyers reveal that people are ready to
make a change towards a healthier product if available.
 The percentage change in adoption of TruEarth pizza once it was introduced
shows that within the next ten pizza orders, 1% to 6% of times, the customer
chooses TruEarth pizza instead of other pizzas. Therefore, penetration into
other pizza markets are possible. A well targeted marketing plan can help
increase the penetration levels into the market.
Q6. Using the forecast model for pasta shown in Exhibit 5, what is your forecast
of the demand for pizza?
 By analysing the data given, it is observed that the forecasted demand for pizza
is 1.6MM (Annex 1) which is being represented by the Trial Households.
 This calculation has been performed by using the calculation in pasta that
BASES has used for pasta case.
 The trial rate for “actual definitely would buy” for pizza will be 80% of the
definitely would buy rate of the BASEL research.
 The actual "probably would buy" rate is taken as 30% of the research’s
"probably would buy" rate.
 After performing the calculation for the actual rates, the “definitely would
buy” and “probably would buy” rates have been added in order to calculate
the trial rate, which is 27%.
 For estimating the demand, the “marketing adjusted trial rate” needs to be
calculated. In order to calculate that the average of the three different
awareness ratios has been taken.
 Therefore, after the analysis, the awareness ratio is 24%.
 The marketing adjusted trial rate is 2.7%.
 The demand for the pizza is the multiplication of marketing adjusted trial rate
and the target households, which is 1.6MM, after going through the analysis.

Q7. How do you interpret the findings in Exhibits 9 and 10 to evaluate

interest in pizza?
 By anlaysing the exhibit 9 it could be found that the people were more
intended towards the sauce and fresh ingredients.
 These two have been the advantages of TruEarth and could prove as a strong
competing forces in the market.
 So the concept has been targeted rightly for the product development
related to the refrigerated pizza.
 But the people are not in favor of the price being charged for the pizza that
is the favorable percent being 9% and 45% being unfavorable.
  They have rated it as too expensive therefore is the reason for the
unfavorable purchase intent.
 In comparison to Exhibit 10, the price consideration for the favorability for
refrigerated pizza is directly
 Comparable to the expected prices of delivery and take out.
 10-12% people falls in the category of those favoring the price between
$6.01-$16.00 for both the categories that is refrigerated pizza and delivery
and take out.
 People who were unfavorable to the refrigerated pizza concept fell in the
same lower price quartile expectations as those of frozen pizza.
 This shows there is a split in consumer expectations based on how they
perceive the product because the ones who are unfavorable to the
refrigerated pizza are
 Comparing it to frozen. On the other hand, those favorable view the pizza as
a “premium quality product” comparable to delivery and takeout.

Q8. Should they launch their Pizza or not?

 We can see from the case analysis that the population is very much attracted
towards healthy products and whole grain pizza is considered as a healthy
product, it would be liked among the population.
 Price is not that big an issue, with the whole grain pizza being a healthy food
item, health conscious customers would buy the pizza at higher prices.
Truearth should market the whole grain pizza, and this marketing campaign
should primary focus on creating awareness about the whole grain
characteristic of the product and increase the market for the pizza.
 The other major reason which we can observe is that the competitors are
thinking of launching their own whole grain pizza and this should make them
the first one to do it in the market, Truearth should quickly launch the pizza
before anyone else does and capture the market first hand, this would give
them advantages of the first mover as they did in the grain pasta product.
 They can also use their present equipment to produce the pizza they don’t
need to install new equipment.
 Truearth is a known brand in the market, they have a stable market chain
and distribution channel and this would help them efficiently deliver the
product to the customer.
 They should capture the pizza market and then keep on improving with new
varieties as per customer's demand.

Q9. Please do a sensitivity analysis of Pizza revenue if the actual penetration

of Cucina customers in interior markets is not 11% but lower at 8% or 5%.
It clearly shows a decreases in sales volumes with lower penetration
percentage.

Sensitivity Analysis -
Truearth Case .xls