Question

1. Please read the TrueEarth Case Study

1. What can the TruEarth team learn from Exhibit 6 about how consumers view pizza?
2. Would you launch the pizza? Develop a forecast based on the numbers to determine potential sales.

   3. Assuming the firm decides to launch, make two marketing strategy recommendations.

Answer 1

What can the TruEarth team learn from Exhibit 6 about how consumers view pizza?

As per the analysis of the Exhibit 6, we found that:

Takeout pizza segment is dominating the pizza industry. Based on the past experiences, high number of consumers prefer takeout pizza as their first choice. They found it more convenient and preferably a good choice for the whole family.

Based on the taste attributes, consumers felt that the takeout pizza is more fresh and has more varieties as compared to all other pizzas.

Based on the health attributes, Consumers agreed that TruEarth pizza contains more healthy ingredients than the takeout pizza category.

Based on the substitution study results, If TruEarth introduces its pizza into the market then on the average, consumers will definitely prefer takeout pizza for their next 10 pizza eating occasions. Because the study showed that the old and young age group people prefer quality over all other attributes. Whereas, the middle age group people do not want to compromise on the taste factor.

Would you launch the pizza? Develop a forecast based on the numbers to determine potential sales

Based on the results and analysis, I would recommend to launch the TruEarthpizza into the market. By looking at the figures, we can find that this product has more than average acceptance rate in the market. And, I strongly believe that it has the potential to achieve success in the market because TrueEarth is one of the first companies that focus on a whole grain concept by providing 60% and 100% whole grain pasta in its product line.

Sales Forecast ForTruEarth Pizza

Trial Purchase Intent	Non -Customers	TruEarth Customers	Total Customers	Source
Definitely would buy	15%	26%	18%	Exhibit 7
% of "Definites" who actually buy	80%	80%	80%	Exhibit 5
"Definite" Purchases	12.00%	20.800%	14.400%
Probably would buy	39%	53%	43%	Exhibit 7
% of "Probables" who actually buy	30%	30%	30%	Exhibit 5
"Probable" Purchases	11.700%	15.900%	12.900%
Trial rate = Definite + probable	24%	37%	27.300%
Target households (MM)	58.8	58.8		Table B
Cucina Fresca Pasta Customers	11%		Table B
Customer Awareness	12%	50%		Table B
ACV distribution	40%	40%		Table B
Marketing Adjusted trial rate	1.137600%	7.3400%
Adjusted Trial Households	0.6689088	4.31592
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)	3.1
Average spend per purchase(retail)	$12.38			Table B
Retail sales volume	$26.2M
Retailer gross margin	35%			Text (Case)
TruEarth sales volume	$17.0M

Assuming the firm decides to launch, make two marketing strategy recommendations.

As the company has decided to launch the product into the market. I feel that company should make some changes before launching it into the market. I would recommend the TruEarth to adopt the following marketing strategy in order to make it a successful launch.

First, TruEarth should try to launch the pizza into the market as soon as possible. As most of the strong players out there are also trying to introduce the similar type of product. For instance, Rigazzi who is also not very far from the launch of a whole grain pizza to the market. I believe that by adopting this strategy of launching the product sooner than the competitors would allow the company to get enough time to penetrate or hold the market space.

Second, Unlike pasta, pizza does not have the first mover advantage. According to exhibit 9 and 10, I would recommend the TruEarth should make a little change into their pricing. As we know that pizza industry has a very high competition and a little change in price can help the product to get successful.