TruEarth Healthy Food – Case Analysis

Question: Why was Cucina Fresca Pasta successful? How would you compare Pizza opportunity
to that of Pasta?

The success of Cucina Fresca brand was largely because of the brave pioneering efforts of TruEarth in
launching the product before competition. There was an ever increasing demand for quick home meal
replacement, refrigerated pasta, and whole grain food options that did not sacrifice taste. The company
therefore took the first mover advantage. Further, Cucina Fresca was a quick and easy to cook meal
along with variety choices available to consumers. Needless to say it was healthy too as it was made of
whole grain pasta. Cucina Fresca came along with cooking instructions and also the best sauce option.
Thus, it was a combination of both perfect quality and quantity and far tastier than its competitors. Thus,
all these factors led to the success of the Cucina Fresca.

The estimated annual sales in the US market were $53 billion in 2007 with 33 % of restaurants-goers
exhibiting a strong interest in whole grain crust. However, identifying the correct market for the sale of
whole grain pizza, approximating its size as well as its business potential was critical in success ratio.
The table below gives the comparison between the two opportunities:

PASTA PIZZA

 $4.4 Billion Market.  11% sales, i.e. $5.8 Billion Market

 It is considered as a Meal
 Purchase Intent was as high as 33%
 It was launched as a new product
 Has First Mover Advantage.
 No topping product
 No customization in taste
 More investment
(about 30 percent bigger)
 It is considered as an Indulgence
 Higher “Strong Intent” (76%)
 Brand awareness established due to
Cucina Fresca
 Perceived price value gap was high
 Has Heavy duty competitors
 Customization of taste
 Incremental investment - substantially
less

Question: What difference do you foresee in the actual product development process for pasta
and pizza?

The following table shows the difference in the actual product development process for pasta and pizza:

STAGES PASTA PIZZA

Idea Generation Seeing the growing demand for The increasing competition in pasta
healthy, gourmet products in the segment and large size of the pizza led
market, the company wanted to tap to the generation of the idea.
the HMR market.

Concept Screening
Only formal survey like small Concept test, Mall intercept and
intercept was done. interview of grocery shoppers
Product The product came out with 5 variety IN this case, the company did home
Development and of product and it was convenient for trial through sample kits and taste kits
Testing the consumer. The product testing and complementary toppings.
 was done through focus groups
without actual tests.
Quantification of Customer awareness and interest. Customer interest and quantification of
Volume Estimated sales required is $14 estimated sales and repeat sales.
million Estimated sales required is $12 million
Business Analysis More investments needed Comparatively less investment is
required

Question: Is there a first mover advantage in pizza similar to fresh pasta? Would you launch the
pizza?

There is definitely a first mover advantage in pizza similar to fresh pasta. Adopting a similar approach
with the whole grain pizza concept and is of the opinion that their established consumer base and brand
image will make for easier market penetration.

The following is the consumer response with regard to their purchase decision towards Cucina Fresca.

The following is the consumer response with regard to their purchase decision towards Pizza.

Market Survey : Pizza

Top Two box

Probably would buy

Definitely would buy

0% 20% 40% 60% 80%

Industry Median Cucina Fresca

On the basis of the market survey and analysis conducted by the company, we would like to recommend
that pizza should be launched. However, we would recommend a few minor changes in the product on
the basis of the likes and dislikes and feedback received from the consumer. Further, there should be
improvement in the product too by developing a better crust. Even if the brand experiences a worst case
scenario of 5% penetration, a small increment in the price can be assumed in order to meet the required
margin. Further, the popular brand image of Cucina Fresca’s will also help in the introduction of the
new product.

------

Prepared and submitted by

Group AC2