Name Shumaila Imam

Question 1

Fresh Pasta and Sauce – Cucina Fresca

 Using the Nielsen Methodology of Bases I to understand the awareness and interest in
purchasing.
 Since there was no sampling done, the topic of product taste was not covered.
 Without knowing the true product quality, Bases developed three scenarios: one for a
mediocre, one for an average, and one for an amazing product.

Whole Grain Pizza

 commissioned a Bases II line extension study, which comprised a concept survey and
in-home product usage, based on the overall comments from the TruEarth team.
 Additional respondents who had previously purchased Fresh Pasta as consumers were
also contacted.
 Used sample kits for a home test to conduct sampling with clients.

Food is a significant category that is influenced by flavor and quality. I believe that Nielsen
Bases II's second research approach is more reliable because it included a thorough idea
survey, a sampling kit, and a feedback loop that provided adequate visibility for product
testing. Taste and sampling were not included in the initial study, which only served to raise
consumer awareness and interest in making a purchase. If the anticipated volume based on
the given scenarios for the pasta product lines changes, the study may be erroneous.
Question 2

 Fresh Pasta's buy intent of the top two boxes was only76%, and it had a higher mean
likeability of 4.2 because it had only recently entered the market.
 Given that brand awareness is generated for current users, 79% of its customers are
more likely to prefer buying from TruEarth Pizza.
 However, it is substantially lower—at 54%—for non-customers, which suggests that a
marketing strategy may have been used to raise awareness.

Question 3

It is mentioned in the lawsuit that Eckstein thought true penetration would fall between 5%
and 15%. Therefore, I have set 5% as the lowest penetration for both customers and non-
customers, using this as the basis for the penetration's worst-case scenario. Additionally, the
second statistic that is taken into account is the 21% rate of mediocre product repurchases by
families.

Non-
  Customers Source
Customers
Definitely would buy 15% 26% Exhibit 7
% of "Definites" who actually buy 80% 80% Exhibit 5
"Definite" Purchases 12% 21%  
       
Probably would buy 39% 53% Exhibit 7
% of "Probables" who actually buy 30% 30% Exhibit 5
"Probable" Purchases 12% 16%  
       
Trial Rate ("Definite" + "Probable") 24% 37%  
       
Target households (MM) 58.8 58.8 Table B
Penetration, % of target households 5% 5% Table B
Awareness of pizza product 12% 50% Table B
ACV distribution 40% 40% Table B
       
Adjusted Trial Households 0.0 0.2  
Total trial households (Non-Customers +
0.2    
Customers)
       
% of households repurchasing 21%   Exhibit 5
Repeat purchase occasions 2   Table B
       
Total purchases (Trial + Repeat) 0.4    
       
Retail selling price $12.38   Table B
Retail sales revenue $4.4M    
Retailer gross margin 35%   Case text
TruEarth sales revenue $2.9M    

The parameters for the best

case scenario are based on the
range for true penetration
based on
Eckstein’s discussion in the
case by 15%. The parameter
for the % of households
repurchasing
by the product scenarios of an
excellent product is 49% which
is considered the second
parameter
The parameters for the best
case scenario are based on the
range for true penetration
based on
Eckstein’s discussion in the
case by 15%. The parameter
for the % of households
repurchasing
by the product scenarios of an
excellent product is 49% which
is considered the second
parameter
The parameters for the best
case scenario are based on the
range for true penetration
based on
Eckstein’s discussion in the
case by 15%. The parameter
for the % of households
repurchasing
by the product scenarios of an
excellent product is 49% which
is considered the second
parameter
The parameters for the best case scenario are based on the range for the true penetration
based on Eckstein’s discussion in the case by 15%. The parameter for the % of households
repurchasing by the product scenarios of an excellent product is 49% which is considered the
second parameter.

Non-
  Customers Source
Customers
Definitely would buy 15% 26% Exhibit 7
% of "Definites" who actually buy 80% 80% Exhibit 5
"Definite" Purchases 12% 21%  
       
Probably would buy 39% 53% Exhibit 7
% of "Probables" who buy 30% 30% Exhibit 5
"Probable" Purchases 12% 16%  
       
Trial Rate ("Definite" + "Probable") 24% 37%  
       
 Target households (MM) 58.8 58.8 Table B
Penetration, % of target households 15% 15% Table B
Awareness of pizza product 12% 50% Table B
ACV distribution 40% 40% Table B
       
Adjusted Trial Households 0.1 0.6  
Total trial households (Non-Customers +
0.7    
Customers)
       
% of households repurchasing 49%   Exhibit 5
Repeat purchase occasions 2   Table B
       
Total purchases (Trial + Repeat) 1.5    
       
Retail selling price $12.38   Table B
Retail sales revenue $18.4M    
Retailer gross margin 35%   Case text
TruEarth sales revenue $11.9M    

Question 4

As per Exhibit 6, it can be

understood that below are the
top two pizza categories that
would
compete against TruEarth
Whole Grain Pizza
As per Exhibit 6, it can be
understood that below are the
 top two pizza categories that
would
compete against TruEarth
Whole Grain Pizza
As per Exhibit 6, it can be understood that below are the top two pizza categories that would
compete against TruEarth Whole Grain Pizza

 Pizza ordered for delivery or takeout accounted for 47% of the previous 10 pizza meals
and 43% of the subsequent 10 pizza eating occasions.
 Restaurant pizza since it accounted for 22% of the subsequent 10 pizza eating
occasions and 23% of the previous 10 pizza intake.

Advantages over the competitors’ categories:

 TruEarth pizza is made from healthy and High-Quality Ingredients.

 The pizza is also easy to prepare and it is considered a pizza for the whole family

Disadvantages

 TruEarth pizza is looking to establish itself as a Gourmet and hence pricing is a bit
disadvantageous since as per Exhibit 10, we understand that consumers who are
willing to buy on average are ready to pay $10.75 and unfavorable one at $8.86,
whereas the price of the pizza with one topping pack would be around $11.50 (as per
Exhibit 10).
 Also, the overall taste also can be improved i.e., the crust (that could be chewier) and
limited selection

Question 5
 It is clear from the data in Exhibit 10 that Whole Grain Pizza is not priced competitively for
the market. According to discussions, each pizza will have 1.25 toppings and cost an average
of $12.38 at retail. Although we find the price set at $10.75 and the unfavorable product price
projected at a mean of $8.86 following the home trials comparing refrigerated over the Other
pizza.

Other pizza customers anticipate paying an average of $7.43 for the frozen variety and about
$11.72 for delivery or takeout. Price may therefore provide a challenge for TruEarth, however,
if the product's flavor and quality are good and significantly better, TruEarth's nutritious pizzas
will draw customers.

Question 6

In the qualitative approach, we consider carrying out the SWOT analysis to understand the
business and make a decision. SWOT analysis will focus on internal analysis which would
help the organization to understand its strengths and weaknesses.

Strengths: Successful launch of Cucina Fresca allowed the company to establish a market
share and distribution network, and a strong position within a niche market.

Weakness: Market potential forecasting small relative market share within ready-made
meals.

Opportunities: New product offers a different approach to ready-made pizza.

Threats: Big players’ competition from Nestle and Kraft MI-based Riggazi, is equally
matched within a niche. The frozen pizza market is saturated and market growth is slow.

Quantitative Approach:

Criteria Pasta Pizza

pasta Pizza
Remarks
Purchase Intent (Based on Exhibit3&7)
 Definitely would buy 27% 18%
Probably would buy 49% 43% Trial Rate is higher for Pasta th
"Top Two" Box 76% 60%
Mean Likeability** 4.1 3.7 Likeability is higher for Pasta.
Mean Price/Value rating** 3.2 3.0 Price/Value is higher for Pasta
Concept Likes
Food Qualities
Whole grain 32% 19% The concept of whole grain Pasta i
grain pizza. It is also seen that fres
Freshly made and dated 38% 31% more liked than a pizza. However,
appetizing.
Preparation
Looks appetizing 22% 24%  

Product selection 17% 16% For preparations and ease of it,

Easy to prepare 21% 16% prepare .
Other
TruEarth brand name 33% 24% Customer likes are more for Tru
Good price 18% 9% for Pasta

Dislikes
Limited selection 20% 23% More dislikes for
Too expensive 8% 27% expensive and time
Limited time to product expiration 16% 12%

In my opinion, for the decision which can be made regarding the launch of the product. The
company believes in continual innovation, but it should be backed by a sound business
strategy. We see that in the last few years Pasta has done well and created a brand image for
the company. The company can leverage its first mover advantage in the new and emerging
markets. The pizza market is a larger market than pasta’s the successful reputation of
TruEarth allows it to take chances for calculated risks and launch in a new segment of Whole
Grain Pizza. However, there are certain that the company should also relook to gain market
share in the competitive market. Quality, taste, and portion of toppings on pizza will help to
boost the reputation in the new segment. The challenge is to balance the price and breakeven
for the company once the full-time operations and distribution commence. The distribution
reach is to be strengthened with facilities of storage and maintenance of the pizza will
determine smooth operations and quality delivery to the customers. Customer involvement in
ca customized pizza menu will also help to retain the customer interest in pizza and its various
offerings on the toppings.

In all of this consideration with the launch of the pizza will open a new segment and will
impact huge growing bottom line and top line revenues. I think it will be wiser for TruEarth to
expand their product line and launch the pizza at the earliest in the market