Pizza Volume

Table 1
Non-Customers Customers Source
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 89% 11% Table B
Awareness of pizza product 12% 50% Table B
ACV distribution 40% 40% Table B

Adjusted Trial Households 0.6 0.5

Total trial households (Non-Customers + Customers) 1.1

% of households repurchasing (Excellent) 49% Table B

Repeat purchase occasions 2 Table B

Total purchases (Trial + Repeat) 2.1

Retail selling price $12.38 Table B

Retail sales volume $26.2M
Retailer gross margin 35% Case text
TruEarth sales volume $17.0M
1 Table 2
Penetration
6% penetration
12% penetration
18% penetration
2 Provide key arguments for and against (both) launching Cucina Fresca Pizza:
Launch
Market potential: The market
research indicates a high demand
for whole grain crust, with
increasing numbers of local
pizzerias offering it, and major
chains like Papa John’s and Pizza
Hut introducing whole wheat or
multi-grain crusts. This presents
an opportunity to leverage the
TruEarth brand and introduce
customers to guilt-free gourmet
pizza with a healthy, whole wheat
crust and high-quality
ingredients.
favorable consumer feedback:
Mall intercept interviews and the
BASES II Line Extension Study
showed generally favorable
feedback for the TruEarth pizza
concept, with consumers expressing
interest in purchasing the product
and providing positive feedback on
attributes such as taste, texture,
quality, crust, cheese, sauce,
2 toppings, and fresh ingredients.
Product Quality & Repurchasers %
Average Excellent
Mediocre Product
Product Product
21% 37% 49%
$10.1M $12.4M $14.1M
$12.6M $15.5 M $17.6M
$15.1M $18.5M $21.1M
Do not Launch
Consumer perception: Some
within the organization, such as
Rosie Carlton, the director of
business development, expressed
concerns about consumer
perceptions of pizza as an
indulgence rather than a healthy
meal choice. There are worries that
if the crust does not match the
quality of freshly made takeout,
TruEarth may not have a
competitive offering.
Competitive landscape: The pressure
to move quickly is high, as Rigazzi
Brands has also tested a pizza concept
and is likely not far from an
introduction. TruEarth faces
competition from established players
like Kraft and Nestle in the low-cost
frozen pizza market, and there are
concerns about the need to compete
against these major players
 Competitive advantage:
TruEarth's success as a first
mover in the fresh whole grain
category with Cucina Fresca
pasta, and the lack of a strong
player in fresh pasta offering a
compelling whole grain option, Consumer Perception and Health
suggests that the company can Concerns:One more key argument for
achieve similar success with not launching Cucina Fresca pizza is
pizza. the growing consumer awareness of
health concerns and dietary
preferences. The document highlights
the popularity of diets that restrict or
eliminate carbohydrates, as well as the
increasing awareness of the
3 importance of whole grains in the diet
Pizza Volume - FOR MEDIOCRE PRODUCT(21%) WITH 6% PENETRATION

Table 1
Non-
Custome
Custome Source
rs
rs
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 94% 6% Table B
Awareness of pizza product 12% 50% Table B
ACV distribution 40% 40% Table B

Adjusted Trial Households 0.6 0.3

Total trial households (Non-Customers + Customers) 0.9

% of households repurchasing (medioocre) 21% Table B

Repeat purchase occasions 2 Table B

Total purchases (Trial + Repeat) 1.3

Retail selling price $12.38 Table B

Retail sales volume $15.6M
Retailer gross margin 35% Case text
TruEarth sales volume $10.1M
Pizza Volume - FOR MEDIOCRE PRODUCT(21%) WITH 12% PENETRATION

Table 1
Non-
Custome
Custome
rs
rs
Definitely would buy 15% 26%
% of "Definites" who actually buy 80% 80%
"Definite" Purchases 12% 21%

Probably would buy 39% 53%

% of "Probables" who actually buy 30% 30%
"Probable" Purchases 12% 16%

Trial Rate ("Definite" + "Probable") 24% 37%

Target households (MM) 58.8 58.8

Penetration, % of target households 88% 12%
Awareness of pizza product 12% 50%
ACV distribution 40% 40%

Adjusted Trial Households 0.6 0.5

Total trial households (Non-Customers + Customers) 1.1

% of households repurchasing (medioocre) 21%

Repeat purchase occasions 2

Total purchases (Trial + Repeat) 1.6

Retail selling price $12.38

Retail sales volume $19.4M
Retailer gross margin 35%
TruEarth sales volume $12.6M
% PENETRATION

Source

Exhibit 7
Exhibit 5

Exhibit 7
Exhibit 5

Table B
Table B
Table B
Table B

Table B
Table B

Table B

Case text
Pizza Volume - FOR MEDIOCRE PRODUCT(21%) WITH 18 % PENETRATION

Table 1
Non-
Custome
Custome Source
rs
rs
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 82% 18% Table B
Awareness of pizza product 12% 50% Table B
ACV distribution 40% 40% Table B

Adjusted Trial Households 0.5 0.8

Total trial households (Non-Customers + Customers) 1.3

% of households repurchasing (medioocre) 21% Table B

Repeat purchase occasions 2 Table B

Total purchases (Trial + Repeat) 1.9

Retail selling price $12.38 Table B

Retail sales volume $23.3M
Retailer gross margin 35% Case text
TruEarth sales volume $15.1M
Pizza Volume - FOR AVERAGE PRODUCT(37%) WITH 6% PENETRATION

Table 1
Non-
Custome
Custome
rs
rs
Definitely would buy 15% 26%
% of "Definites" who actually buy 80% 80%
"Definite" Purchases 12% 21%

Probably would buy 39% 53%

% of "Probables" who actually buy 30% 30%
"Probable" Purchases 12% 16%

Trial Rate ("Definite" + "Probable") 24% 37%

Target households (MM) 58.8 58.8

Penetration, % of target households 94% 6%
Awareness of pizza product 12% 50%
ACV distribution 40% 40%

Adjusted Trial Households 0.6 0.3

Total trial households (Non-Customers + Custom 0.9

% of households repurchasing (AVERAGE) 37%

Repeat purchase occasions 2

Total purchases (Trial + Repeat) 1.5

Retail selling price $12.38

Retail sales volume $19.1M
Retailer gross margin 35%
TruEarth sales volume $12.4M
WITH 6% PENETRATION

Source

Exhibit 7
Exhibit 5

Exhibit 7
Exhibit 5

Table B
Table B
Table B
Table B

Table B
Table B

Table B

Case text
Pizza Volume - FOR AVERAGE PRODUCT(37%) WITH 12% PENETRATION

Table 1
Non-
Custome
Custome Source
rs
rs
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 88% 12% Table B
Awareness of pizza product 12% 50% Table B
ACV distribution 40% 40% Table B

Adjusted Trial Households 0.6 0.5

Total trial households (Non-Customers + Customers) 1.1

% of households repurchasing (AVERAGE) 37% Table B

Repeat purchase occasions 2 Table B

Total purchases (Trial + Repeat) 1.9

Retail selling price $12.38 Table B

Retail sales volume $23.8M
Retailer gross margin 35% Case text
TruEarth sales volume $15.5M
Pizza Volume - FOR AVERAGE PRODUCT(37%) WITH 18% PENETRATION

Table 1
Non-
Custome
rs
Definitely would buy 15%
% of "Definites" who actually buy 80%
"Definite" Purchases 12%

Probably would buy 39%

% of "Probables" who actually buy 30%
"Probable" Purchases 12%

Trial Rate ("Definite" + "Probable") 24%

Target households (MM) 58.8

Penetration, % of target households 82%
Awareness of pizza product 12%
ACV distribution 40%

Adjusted Trial Households 0.5

Total trial households (Non-Customers + Customers) 1.3

% of households repurchasing (AVERAGE) 37%

Repeat purchase occasions 2

Total purchases (Trial + Repeat) 2.3

Retail selling price $12.38

Retail sales volume $28.5M
Retailer gross margin 35%
TruEarth sales volume $18.5M
% PENETRATION

Custome
Source
rs

26% Exhibit 7
80% Exhibit 5
21%

53% Exhibit 7
30% Exhibit 5
16%

37%

58.8 Table B
18% Table B
50% Table B
40% Table B

0.8

Table B
Table B

Table B

Case text
Pizza Volume - FOR EXCELLENT PRODUCT(49%) WITH 6% PENETRATION

Table 1
Non-
Custome
Custome Source
rs
rs
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 94% 6% Table B
Awareness of pizza product 12% 50% Table B
ACV distribution 40% 40% Table B

Adjusted Trial Households 0.6 0.3

Total trial households (Non-Customers + Customers) 0.9

% of households repurchasing (EXCELLENT) 49% Table B

Repeat purchase occasions 2 Table B

Total purchases (Trial + Repeat) 1.8

Retail selling price $12.38 Table B

Retail sales volume $21.7M
Retailer gross margin 35% Case text
TruEarth sales volume $14.1M
Pizza Volume - FOR EXCELLENT PRODUCT(49%) WITH 12% PENETRATION

Table 1
Non-
Custome
Custome
rs
rs
Definitely would buy 15% 26%
% of "Definites" who actually buy 80% 80%
"Definite" Purchases 12% 21%

Probably would buy 39% 53%

% of "Probables" who actually buy 30% 30%
"Probable" Purchases 12% 16%

Trial Rate ("Definite" + "Probable") 24% 37%

Target households (MM) 58.8 58.8

Penetration, % of target households 88% 12%
Awareness of pizza product 12% 50%
ACV distribution 40% 40%

Adjusted Trial Households 0.6 0.5

Total trial households (Non-Customers + Customers) 1.1

% of households repurchasing (EXCELLENT) 49%

Repeat purchase occasions 2

Total purchases (Trial + Repeat) 2.2

Retail selling price $12.38

Retail sales volume $27.1M
Retailer gross margin 35%
TruEarth sales volume $17.6M
PENETRATION

Source

Exhibit 7
Exhibit 5

Exhibit 7
Exhibit 5

Table B
Table B
Table B
Table B

Table B
Table B

Table B

Case text
Pizza Volume - FOR EXCELLENT PRODUCT(49%) WITH 18% PENETRATION

Table 1
Non-
Custome
Custome
rs
rs
Definitely would buy 15% 26%
% of "Definites" who actually buy 80% 80%
"Definite" Purchases 12% 21%

Probably would buy 39% 53%

% of "Probables" who actually buy 30% 30%
"Probable" Purchases 12% 16%

Trial Rate ("Definite" + "Probable") 24% 37%

Target households (MM) 58.8 58.8

Penetration, % of target households 82% 18%
Awareness of pizza product 12% 50%
ACV distribution 40% 40%

Adjusted Trial Households 0.5 0.8

Total trial households (Non-Customers + Customers) 1.3

% of households repurchasing (EXCELLENT) 49%

Repeat purchase occasions 2

Total purchases (Trial + Repeat) 2.6

Retail selling price $12.38

Retail sales volume $32.5M
Retailer gross margin 35%
TruEarth sales volume $21.1M
Source

Exhibit 7
Exhibit 5

Exhibit 7
Exhibit 5

Table B
Table B
Table B
Table B

Table B
Table B

Table B

Case text