TruEarth Healthy Foods:

Market research for a new product

introduction

Section: BM-A
Group no: 2
Aayush Somani B18002
Ashlesh Mangulkar B18014
Jishnu Mitra B18026
Raghuvendra Pratap Singh B18038
Shubham Kaul B18050
 Forecasting
Trial Purchase Intent Repeat Purchase Inputs
Definitely would buy 18.00% Trial Households (MM) 1.81
% of definites who actually buy 80.00% Repeat Purchase Occasions 2
Definite purchases 14.40% Repeat Transaction Amounts 1.25
Probably would buy 43.00% Repeat Rate by Product Scenario
% of probables who actually buy 30.00% Mediocre Product 21.00%
Probable purchases 12.90% Average Product 37.00%
Excellent Product 49.00%
Trial Rate (Definite + Probable) 27.30%

Marketting Plan Adjustment Repeat Volume by Product Scenario (MM)

Gross Rating Points Mediocre Product 0.95
Projected Consumer Awareness 50.00% Average Product 1.67
All Commodity Volume Distribution 40.00% Excellent Product 2.22

Matrketing adjusted Trial Rate 3.08%

(Trial Rate X Awareness X ACV)
Target Households (MM) 58.8
Trial Households 1.81

Product Scenario Mediocre Average Excellent

Trial 1.81 1.81 1.81
Volume Repeat 0.95 1.67 2.22
Total 2.62 3.48 3.83
1 topping 30.15347 40.066 43.9944
Sales Forecast ($) 2 topping 39.33061 52.26 57.384
Wholesale Forecast 1 topping 19.59975 26.043 28.5964
($) 2 topping 25.56489 33.969 37.2996
 Concept Test Results
PURCHASE INTENT FOR TRUEARTH PRODUCTS
Product Top 2 Box Mean Likability Price/Value Rating Comments
Pasta 76% 4.1 3.2 TruEarth should leverage the existing goodwill of
pasta, as parameters are similar
Pizza 79% 4.2 3.1

CONCEPT LIKES & DISLIKES

Like/Dislike Issue Pasta Pizza Comments
Dislike Expensive 8% 27% Should reduce the price. $12Mn required to meet
investment. Current least Retail forecast is ~$20Mn

Like Whole Grain 32% 19% Pizza assumed to be inherently unhealthy even if
base is wholegrain.
Potential Positioning: Whole Grain TruEarth Pizza as
an healthy alternative
Like Ease of Preparation 21% 16% Pizza is difficult to prepare.
Need to convey the health benefits & freshness due
to complex preparation procedure
Insights from Attributes & Substitution
(Exhibit 6)
 TruEarth pizza concept is perceived better then the refrigerated pizza in all
the parameters except convenience in which it is equivalent
 When compared to takeout pizza it is perceived healthier and can improve on
quality of ingredient where it is slightly lacking
 Though generally favoured it can face problem from take out pizza as it is
fresh and comes in more varieties
 Consumers who view pizza as indulgence will still not like TruEarth pizza as
they need more variety and prefer convenience.