TruEarth Case Analysis

By group 4
Ananya Singh
Deeksha Singh
Deny Sai AbhishekDarla
Pooja Soni
Shubham Pujhar
Siddharth Sharma
Sindhu Bharathi A

Q1. Using the forecast model for pasta shown in Exhibit 5, what is your forecast of the
demand for pizza?
Hint: The necessary data is contained in Table B and Exhibit 7. There is a significant
difference in the likeliness to buy results for pasta customers and non-customers. Actual
penetration of the Cucina Fresca parent brand may range from 5% to 15%, so sensitivity
analysis will be useful.​
From the table of pasta we can form a table for pizza also. We got data from Exibit7 and table B.
Following is the calculation :

Trial Purchase Intent

Definitely would buy 18%

% of "Definites" who actually buy 80%

"Definite" Purchases 14.4%

Probably would buy 43%

% of "Probables" who actually buy 30%

"Probable" Purchases 12.9%

 Trial Rate (Definite + Probable) 27.3%

Now we will calculate marketing plan adjustment :

Marketing Plan Adjustment

Gross Rating Points 800

Projected Consumer Awareness 11%

All Commodity Volume distribution 40%

(ACV)

Marketing Adjusted Trial Rate 1.2%

Trial Rate x Awareness x ACV

Target Households (MM)* 58.8

Trial Households (MM) 0.7

Next calculation relates t​o repeat sales

Repeat Purchase Inputs

Trial Households (MM) 0.7

Repeat Purchase Occasions 2

Repeat Transaction Amounts 1.25

Repeat Rate, by Product Scenario

 Mediocre Product 21%

Average Product 37%

Excellent Product 49%

Repeat Volume, by Product Scenario (MM)

Mediocre Product 0.4

Average Product 0.7

Excellent Product 0.9

Q2. What can the TruEarth team learn from Exhibit 6 about how consumers view pizza?
Exhibit 6 gives data about reviews of pizza consumers of Take out pizza, refrigerated pizza and
concept of TruEarth Pizza. From these inputs following information can be derived
● Takeout pizza leads in Usage attributes as its score is better than the other two. It has
clear advantage in this aspect over refrigerated pizza. Concept of TruEarth Pizza gives
competition to Takeout Pizza in “product for the whole family” aspect
● Taste attribute is a very strong point for Takeout pizza. TruEarth Pizza’s perception is
ahead of Refrigerated pizza but behind Takeout pizza
● TruEarth pizza concept has the perception of being made of healthy ingredients.
Refrigerated pizza lags behind other two in quality attributes
● We asked about which type of pizza they will consume next occasion 17% showed
interest in consuming TruEarth Whole Grain Pizza
● Refrigerated pizza will be the biggest loser on the introduction of TruEarth pizza. It will
be losing 6% share
● Frozen pizza will lose 5% share. It can be inferred that has frozen and refrigerated pizza
do not have got health perception so they will be affected most
Q3. How do the pizza concept test results (Exhibits 7 and 8) compare with the findings for
pasta (Exhibits 3 and 4)?

The customer reaction looks bit low for the pizza than for pasta. The lower percentage of
customers willing to definitely or probably purchase the product should not be all that alarming.
The reason for this lies in the fact that the market we are looking to enter is larger. Thus from the
perspective of gross revenue and units purchased we can reasonably assume that a slightly lower
percentage of a higher number will yield similar if not better results. This test is to be taken as a
good sign that the things that are trying to be achieved are things that will resonate well with
consumers of the product in general. The majority of individuals will have a positive reaction to
the product concept and the product details. They value healthy, fresh, modular make your own
pizza

Q4. How do you interpret the findings in Exhibits 9 and 10 to evaluate interest in pizza?

With the exhibit 9 and 10 it is clearly visible that most of the people who tested the product for
home trial felt that the price is too high. Also to note that the total number of consumers who felt
the product favorable were two times to that of unfavorable. The major issue that is seen here is
the price. As many think that the product price is too high they might hesitate to get the product
after we launch. The favorable mean price is $10.75 and the unfavorable mean price is $8.86. So
taking both the figures into consideration the price if set between the two then we can gather the
margins of both type of consumers. This could affect the profit margin at initial point. But after
stabilizing in the market the price can be increased. Also many suggestions to improve the
product taste/ flavor, sausage improvement, and crust less chewy should be worked on before the
launch, so that it can satisfy more number of consumer market.

Q5. Would you launch the pizza? Justify your decision.

TruEarth Pizza should be launched.
● As testing of the product has under way and we can save on packaging aspect as we have
already invested at the time of pasta
● Consumer reaction to the potential launch is positive as our product will give tough
competition to frozen and refrigerated pizza and we can capture that market.
● Suggestions may be taken from prospective consumers about room for improvement.
Those aspects should be targeted where Traditional pizza was preferred ahead of our
product
● 70% of American consumers love pizza. The pizza demand was hit by health concerns.
So as people are getting more and more health conscious all grain pizza will gain the
popularity and launch may get successful
● As competitors are also planning to launch a similar product our aim will be to launch the
product as soon as possible