How do the pizza concept test results (Exhibits 7 and 8) compare with the

findings for pasta (Exhibits 3 and 4)?

The pizza concept test results are not as strong as the concept test results for pasta. In both
instances 300 concept tests were conducted; pasta was conducted across several cities and
pizza was conducted through mall intercept interviews.

An overview comparison between the purchase intent results observed in Exhibit 3 (Pasta)
and Exhibit 7 (Pizza) are shown below:

Measure Pasta Pizza

“Top Two” Box 76% 60%
Mean Likeability 4.1 3.7
Mean Price/Value rating 3.2 3.0

In the mall intercept, 60% of the respondents replied in the Top 2 boxes for pizza, this means
the responses are either definitely would buy or probably would buy. The percentage number
can be broken down into TruEarth customer or non-customer. We can thus calculate the trial
volume by using the available awareness and purchase behaviour estimates. The total volume
is 1.685MM to 2.408MM, which translate to retail market size of $21 million to $30 million.
This estimate exceeded the wholesale volumes of $12 million to meet the company’s return
requirements.

The “Top Two” Box measure is a measure of the respondents who indicated they “definitely
would buy” and “probably would buy” the product. These percentages translate into 228 out
of the 300 indicated they had a level of interest in buying the pasta product. The result for the
pizza product was lower; only 181 out of the 300 had a level of interest in buying the product.

Mean Likeability is a measure on a 5 point scale of the likeability of the product with 5 being
“like extremely”. Again, the pasta concept test results were much more favourable than that
of the pizza results. Pasta scored 4.1 out 5 while pizza scored 3.7.

The last measure Mean Price/Value rating is a measure on a 5 point scale of the perceived
price per value with 5 being “extremely good value”. The results again show a more
favourable result for pasta; 3.2 versus pizza’s 3.0.

Exhibit 4 (Pasta) and Exhibit 8 (Pizza) indicate the number of individuals which were
favourable to the concept and those that were not. It also shows which attributes the
respondents indicated they “like” or “dislike” about the product concept. A summary of the
results are shown below:

Measure Pasta Pizza

Favourable to Concept 76% 60%
Food Qualities LIKES
-Whole grain 32% 19%
-Freshly made and dated 38% 31%
-Looks appetizing 22% 24%
Preparation LIKES
-Product Selection 17% 16%
-Easy to prepare 21% 16%
Other LIKES
-TruEarth brand name 33% 24%
-Good price 18% 9%
DISLIKES
-Limited selection 20% 23%
-Too expensive 8% 27%
-Limited time to product 16% 12%
expiration
These results show that more individuals were favourable to the whole grain pasta kit (76%)
than they were to a whole grain pizza kit (60%). As shown in the results above, key food
quality attributes for the pasta included that it was whole grain and freshly made and dated.
However, for pizza the fact it was whole grain wasn’t a key “like” in the results. Other
attributes where pasta outscored pizza were: “easy to prepare” - 21% pasta versus 16% pizza
and “good price” – 18% pasta versus 9% pizza. The highest scoring dislike for pasta was the
limited selection. For pizza, it was “too expensive”.

We can say that people seem to favour fresh pasta concept rather that fresh pizza concept.
People rated the pizza dislikes more than pasta case. People finding Pizza case too expensive
amongst the sample is 27% where as for pasta case it is 8%.

Overall, the concept for a whole grain refrigerated pizza kit was not as well received as the
whole grain pasta kit. From the results, we can infer this is because there is not a significant
interest in a whole grain pizza and they kit is seen as being too expensive.
At the same time, analysing the consumer view, concept comparison and the possibilities of
the first-mover advantage, it is highly likely that TruEarth have to enter the market with
challenges such as educating the consumers about the new product category, changing the
consumer preference and usage patterns of pizza-eating, competing with multiple
competitors, while extending the distribution channels and finalising product development,
which all require huge investment. In order to overcome above challenges, it is inevitable to
conduct an extensive marketing campaign, however, in the process; there is a high possibility
that TruEarth will lower the entry barrier for the competitors, who will enter when the market
is ready to accept the new product concept.