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True Earth Case Study

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1. What factors led to the success of Cucina Fresca Pasta? How is the Pizza opportunity similar/different by comparison to the Pasta experience?
The following table compares pasta and pizza opportunity scenarios implying similarities, differences and also synergies between them (specifically for the pizza introduction). The PROS section of Pasta states the possible factors that lead to the success of Cucina Fresca. 2. Using the forecast model for Pasta used in Exhibit 5, what is your forecast for Pizza? Hint: Don’t neglect to use the data in Table B and Exhibit 7
Considering the information from Exhibit 7 and Table B, in addition to the assumption of the use of the same repurchase rates of pasta for the mediocre and average scenarios in the pizza market, and including a sensitivity analysis of market penetration (5% to 15%), the following forecast was obtained: 3. What can the team at Tru-Earth learn from Exhibit 6 about their customers preferences?
Exhibit 6 shows the results of a survey based on attributes and substitution of the pizza category. The survey is based on a 10-point scale, where 1 is the lowest score and 10 is the highest score.
Regarding to the usage attributes, the average respondent considers pizza to be "family oriented" due to the fact of the high ratings of all categories (take-out pizza with 8.9 out of 10 points, refrigerated pizza with 7.1 points, and TruEarth new concept with 8.6 points). Therefore, under the assumption that the typical family size starts with 2 people and then increase, the pizza kit size is properly oriented (servings for 2 to 3 people). However, average respondents also considers convenience is as a major attribute, and TruEarth pizza scores lower than take-out pizza and equals refrigerated pizza, since customers will need time to prepare the meal instead of just picking it up or ordering for delivery.
Regarding to taste attributes, average respondents considers fresh taste and variety extremely important. TruEarth provides a limited offering consisting on 3 different toppings that can be combined the way the customer wants. However, that might not satisfy all potential customers preferences. Nonetheless, TruEarth scores higher (7.9 and 6.7 points) than refrigerated pizza (7.2 and 6.3 points), but has a lot of homework to do if the company wants to compete with take-out pizza.
In terms of quality attributes, consumers prefer a pizza made with high-quality and healthy ingredients, and TruEarth pizza outstands in this category with 8.1 and 9.1. Furthermore, TruEarth outstands in the section of healthy ingredients, making it a Point of Difference that must be used and communicated as a strong differentiator attribute.
Therefore, comparing TruEarth pizza concept with take-out and refrigerated pizza, results show that on average TruEarth pizza has better evaluation than refrigerated pizza in terms of usage, taste and quality attributes. Furthermore, in terms of substitution, TruEarth has better chances on changing customers from this category (6 points out of 17) than from any other category.
However, results are not favorable when comparing usage and taste attributes of TruEarth and take-out pizza. In addition, analyzing eating occasions, customers from take-out pizza would still prefer consuming take-out pizza (43%) in the next 10 eating occasions if True Earth's concept is available. Therefore, take-out pizza is a strong substitute and competitor of TruEarth pizza.
Finally, Exhibit 6 shows customer's insights that helps with the True Earth's STP process, since 35-year old male doesn't feel benefited by the introduction of True Earth's new concept.
Therefore, customers perceive TruEarth concept as a better product, with superior qualities and benefits, than refrigerated/frozen pizza. However, the value proposition of TruEarth pizza is beneath of take-out pizza.
4. How do the results for Pizza in Exhibits 7 and 8 compare to those for Pasta in 3 and 4?
Purchase intentions for both, pasta and pizza, are shown in Exhibit 3 and Exhibit 7. Results shows that 76% of respondents would have the intention of buying Cucina Fresh pasta, which is higher than the 60% of purchasing intention for TruEarth pizza. Likewise, the mean likeability (4.1) and mean price/value rating (3.2) of Cucina Fresh are higher than the mean likeability (3.7) and mean price/value (3.0) of TruEarth pizza concept.
Now, an interesting fact is that 79% of the current customers of TruEarth are very interested in buying/trying the new pizza concept. Furthermore, the average likeability is 4.2 shown a strong acceptance for the new concept. This might be due to loyal customers and a strong brand image in the market.
Exhibit 4 and Exhibit 8 shows the performance of likes and dislikes of pasta and pizza concepts respectively. In general terms, pasta results were higher than pizza results. On the one hand, average respondents value freshly made and date pasta (38%), easy to prepare pasta (21%) and recognize favorably TruEarth brand name when associated with pasta (33%). However, they dislike the fact of the limited offering (20%). On the other hand, when analyzing pizza concept, average respondents still prefer freshly made and dated pizza (31%) and recognize TruEarth brand name favorable (24%), but differ in the preparation segment where they prefer to purchase components in one place (27%) and the fact that they can buy toppings separately (23%). Moreover, a negative aspect crucial for dislikes is expensive prices (27%).
5. Do you think there would be a significant “first-mover advantage” for Pizza (similar to that which was seen with Pasta)
No, I don't think there will be a significant "first-mover advantage" for Pizza for two reasons. First, when Cucina Fresca was introduced, the market didn't have strong competitors. The whole grain market was not developed yet. Now, pizza do have strong competitors such as restaurant/take-out competitors with whole wheat and multi grain crust (Papa John's and Pizza Hut), refrigerated/frozen pizza (Kraft and Nestle), and a new entrant threat (Rigazzi). Therefore, whole grain pizza would not be perceived as a new concept. Second, just by looking at the Exhibits, people doesn't value as much the "healthy" attribute for the pizza category, instead they associate pizza as a family product. Furthermore, like Rosie Carlton, director of business development, stated consumers view pizza as an indulgence and not as a healthy meal. When Cucina Fresca pasta was introduced, there was a growing trend on health (low carbohydrate food) and that was a favorable scenario for TruEarth pasta.

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