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    Trueearth

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    Madhur Vashist
    TRUEARTH SHOULD NOT LAUNCH WHOLE GRAIN REFRIGERATED PIZZA FOR THREE REASONS: 1) The pizza market is highly competitive with 83% market share held by others. 2) Consumer preferences and occasions for eating pasta differ significantly from pizza. 3) The product will not be profitable as it cannot achieve the required 11% penetration and 7 repeat purchases to break even given market conditions. Alternative opportunities for wholesome refrigerated products should be explored instead.

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    Trueearth

    Uploaded by

    Madhur Vashist
    64 views12 pages
    TRUEARTH SHOULD NOT LAUNCH WHOLE GRAIN REFRIGERATED PIZZA FOR THREE REASONS: 1) The pizza market is highly competitive with 83% market share held by others. 2) Consumer preferences and occasions for eating pasta differ significantly from pizza. 3) The product will not be profitable as it cannot achieve the required 11% penetration and 7 repeat purchases to break even given market conditions. Alternative opportunities for wholesome refrigerated products should be explored instead.

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    Trueearth

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    TRUEARTH SHOULD NOT LAUNCH WHOLE GRAIN REFRIGERATED PIZZA FOR THREE REASONS: 1) The pizza market is highly competitive with 83% market share held by others. 2) Consumer preferences and occasions for eating pasta differ significantly from pizza. 3) The product will not be profitable as it cannot achieve the required 11% penetration and 7 repeat purchases to break even given market conditions. Alternative opportunities for wholesome refrigerated products should be explored instead.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    64 views12 pages

    Trueearth

    Uploaded by

    Madhur Vashist
    TRUEARTH SHOULD NOT LAUNCH WHOLE GRAIN REFRIGERATED PIZZA FOR THREE REASONS: 1) The pizza market is highly competitive with 83% market share held by others. 2) Consumer preferences and occasions for eating pasta differ significantly from pizza. 3) The product will not be profitable as it cannot achieve the required 11% penetration and 7 repeat purchases to break even given market conditions. Alternative opportunities for wholesome refrigerated products should be explored instead.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 12

    TRUEARTH SHOULD NOT LAUNCH WHOLE GRAIN REFRIGERATED PIZZA BECAUSE

    TRUEARTH WHOLE GRAIN REFRIGERATED PASTA CONCEPT WILL NOT WORK


    WITH PIZZA
    1 The reasons are below:
    Market is too Potential increase in People are not accepting
    competitive competition in future the whole grain
    refrigerated pizza
    Deliveries/ Restaurants Frozen
    Takeouts Pizza a) Rigazzi is planning to Pasta Pizza
    launch a whole grain
    Market pizza and it will impact Favorable
    43% 22% 14% 32% 19%
    Share our sales as it did in to concept
    2008 for pasta Good
    b) Nestle and Kraft could 18% 9%
    price
    launch a frozen whole
    grain pizza Too
    a) First mover a) Nestle and 8% 27%
    expensive
    advantage Kraft offer at
    b) Good taste lower cost TruEarth
    b) Requires no brand 33% 24%
    effort in name
    preparation On a 5-pt Pasta Pizza
    scales, scored Taste- 9.4 Taste-7.9
    0.5 times Variety-9.1 Var-6.7
    Likeability
    (10%) more
    than
    competitors

    BHAVANA DUTT
    THERE IS A FUNDAMENTAL DIFFERENCE IN
    PASTA AND PIZZA CONSUMER
    2

    Pizza user: I eat pizza because its fast, if I


    Pasta user: I want to cook home-made have to put it together, I dont know if its worth
    dishes, but no time to cook it

    25-60 years old 16-40 years old


    Health conscious, busy women who like Men and women, working
    to cook for their families professionals or students, not health
    conscious and do not like to cook.

    When is it consumed: When is it consumed:


    Get-togethers and family dinners at home Restaurant lunches,
    late night snacks,
    during events,
    group meetings,
    with beer

    BHAVANA DUTT
    DIFFERENCE IN LIKEABILITY OF PIZZA
    3
    AND PASTA USERS

    BHAVANA DUTT
    WE WILL ONLY BREAKEVEN WITH 11% OF PENETRATION AND
    REPEAT PURCHASE OF 7, WHICH IS NOT DO-ABLE WITH THE
    Pasta MARKET CONDITIONS Pizza
    4

    BHAVANA DUTT
    THE PROFIT SENSITIVE VARIABLES CANNOT BE
    CHANGED FOR THE PIZZA CATEGORY
    5

    Alternatives Requirements Results

    1. Increase awareness of Invest more money in advertising and


    Increase breakeven
    consumers promotions

    a) Loose competitiveness in taste


    2. Decrease price of the Degradation in the quality of the b) There is no customer value in preparing a
    product product product to eat that is same in taste and price as
    frozen pizza

    Convince more distributors to carry the


    3. Increase ACV (All product. This requires more customers a) Loose time
    Commodity Value) from competitors thus, requiring more b) Increase breakeven point
    time, effort and money

    a) Will deliver our offer because no experience in


    pizza industry
    4. Increase Repeat Purchase Offer takeouts and deliveries to b) Long distance delivery increases the price of the
    Occasion outsource pizza manufacturing product
    c) Cheaper to manufacture own pizza than buying
    it from TruEarth

    BHAVANA DUTT
    DECISION CRITERIA OF LAUNCHING
    6
    THE PRODUCT
    Criteria Pasta Pizza
    Can we get/ do we have Yes (18mn/4.1bn) No
    40% market share
    Is ACV higher than 49% Yes- 50% No- 40%
    First mover advantage Yes No
    Advantage in taste Yes No
    Advantage in price Yes No
    Competition Low High (83% of the market size)

    BHAVANA DUTT
    We Recommend To Research Business Opportunity Of
    Wholegrain Healthy Refrigerated Pasta Concept With Other
    Whole Grain Homemade Products And Snacks
    7

    Lasagne
    Whole grain breads
    Whole grain Pita chips
    Focaccia
    Quiche

    BHAVANA DUTT
    Appendix 1
    8

    BHAVANA DUTT
    Appendix 2
    9

    BHAVANA DUTT
    Appendix 3
    10

    BHAVANA DUTT
    Appendix 4
    11

    BHAVANA DUTT
    Appendix 5
    12

    AW- Awareness
    TR- Trial Rate
    ACV- All Commodity Value
    TH- Trial Households
    MATR- Marketing Adjusted Trial Rate
    RTA- Repeat Transaction Amount
    RPO- Repeat Purchase Occasions
    RV- Repeat Volume
    RR- Repeat Purchase Rate
    P- Penetration

    BHAVANA DUTT

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