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

$4.4 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

PIZZA

11% sales, i.e. $5.8 Billion Market (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
Idea Generation

PASTA
PIZZA
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
Product
Development

Only formal survey like small

intercept was done.
The product came out with 5 variety
and of product and it was convenient for

Concept test, Mall intercept and

interview of grocery shoppers
IN this case, the company did home
trial through sample kits and taste kits

Testing

the consumer. The product testing

was done through focus groups
without actual tests.
Quantification of Customer awareness and interest.
Volume
Estimated sales required is $14
million
Business Analysis
More investments needed

and complementary toppings.

Customer interest and quantification of

estimated sales and repeat sales.
Estimated sales required is $12 million
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%

Industry Median

40%
Cucina Fresca

60%

80%

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 Frescas will also help
in the introduction of the new product.

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Prepared and submitted by

Group AC2