...Awareness | | purchase assumption | | | | Target HH | 58,800,000 | units per purchase | 1.25 | | | Cucina Fresca Cust- med pen | 11% | average spend | $ 12.38 12.38 | | | Cust Awareness | 50% | repeat purchase | 2 | | | Non Cust Awareness | 12% | | | | | AVC | 40% | repeat transaction amount | 1.25 | | | Cucina Fresca Cust - low pen | 5% | Repeat rate by scen. | | | | Cucina Fresca Cust - high pen | 15% | Mediocre | 21% | | | | | Average | 37% | | | total awareness med pen | 16% | Excellent | 49% | | | total awareness low pen | 13.2% | | | | | total awareness high pen | 18.18% | Repeat vol by scen .scenario | med 11% | low 5% | high 15% | trial rate | 27.3% | Mediocre | 545,428 | 444,298 | 612,849 | mark adjust trial rate med | 1.77% | Average | 960,993 | 782,811 | 1,079,781 | mark adjust trial rate low | 1.44% | Excellent | 1,272,666 | 1,036,696 | 1,429,980 | mark adjust trial rate high | 1.99% | | | | | Trial HH med | 1,038,911 | | | | | Trial HH low (5%) | 846,282.53 | | | | | Trial HH high (15%) | 1,167,330.53 | | | | | 1.A Pizza Forecast (Volume and Revenue) Based on scenario and penetration rate Price $12.38 | Excellent product | Average product | Penetration | Med 11% | Low 5% | high 15% | Med 11% | Low 5% | high 15% | Trial Vol (HH) | 1,038,911 | 846,282.53 | 1,167,330.53 | 1,038,911 | 846,282.53 | 1,167,330.53 | Repeat...
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...藉由收集資料以及合理推測，先將TruEarth公司內部經營的情形與美國Pasta相關消費者的情況做一個了解後可以發現… * TruEarth:， 公司於1993年成立，加上創辦人DE Rosa年輕創業 | 是一間能讓消費者感覺年輕氣息的公司，專為出產麵食和醬汁，產品傳遞健康卻又能兼顧美味的訊息給民眾。 | Product line: | 1. standard pastas 2. whole grain pastas 3. tomato-based sauces 4. refrigerated fresh pastas 5. pastas with blended ingredients | 發展位置 | 為美國中部但Rigazzi比TruEarth更靠近五大湖區 | * 美國情形: 由美國人口調查局的資料，下表內容為美國個人收入和美國家庭收入，因為雙薪家庭的消費需求特別符合冷凍冷藏的加工產品，因為父母均有工作，生活忙碌，用餐時希望能夠得到快速又美味的Job to do.而又有一文章顯示: Among married-couple households, about 13 percent consisted of families with children in which only the husband worked, 31 percent were dual-income families with children, 25 percent were dual-income families with no children, and 31 percent consisted of other types of families, such as older married couples whose children no longer reside in the household.(資料來源: AmeriStat, tabulations from the Census Bureau's 2002 Current Population Survey (March Supplement).)因此，選出雙薪的家庭在全美是約有56%。 收入中位數等級 | 家庭 | 個人，25歲以上且有收入者 | 各種族家庭收入 | 所有家庭 收入 | 雙薪家庭 收入 | 每位家庭成員 收入 | 男性 | 女性 | 兩性合計 | 亞洲人 | 白人 非西班牙人 | 西班牙人 | 黑人 | $46,326 | $67,348 | $23,535 | $39,403 | $26,507 | $32,140 | $57,518 | $48,977 | $34,241 | $30,134 | 家庭年收入分佈狀況 | 最低 10% | 最低 20% | 最低 25% | 中間 33% | 中間 20% | 最高 25% | 最高 20% | 最高 5% | 最高 1.5% | 最高 1% | $0～$10,500 | $0～$18,500 | $0～$22,500 | $30,000～$62,500 | $35,000～$55,000 | $77,500～ | $92,000～ | $167,000～ | $250,000～ | $350,000～ | 來源：美國人口調查局（US Census Bureau），2006年；2005年收入數值 以上收入金額單位皆為美元。...
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... “ready to eat” products which were in high demand by time deprived, dual income households. * The product line was varied and was perceived more tasty and healthy than competition. * Demand for refrigerated fresh pastas was growing faster than dry pastas. * The size of the package had the right portion of pasta and sauce making it convenient to cook. * TruEarth enjoyed the first mover advantage in market. * Cooking the pasta was quick and easy. Each package recommended the best sauce option. The consumer did not have to do any guess work. * The package came with instructions to customize the meal if desired, like add grilled chicken or shrimp. Pizza vs. Pasta: Opportunity- | Pizza | Pasta | Market size | $5.8 B | $4.4 B | Customer perspective | Indulgence | Meal | Source of extra revenue | Customer may purchase multiple toppings | Customer will purchase only one sauce for one packet of pasta | Competition | Local pizzerias, National and international chains, Kraft, Nestle | Rigazzi | First mover advantage | Rigazzi was developing a similar concept. So if TruEarth does not act quickly it may not have first mover advantage. | Yes | Price | $8.00 + $3.50 | $5.75 + $ 4.50 | All commodity Volume | 40% | 50% | Pizza vs. Pasta: Development process– Answer 2: Answer 3: Exhibit 6 shows the results survey conducted to find out the most significant attributes of pizza. The...
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...TruEarth Healthy Foods Market Research for a New Product Intro – Case Assignment Questions Junai Ali Why was Cucina Fresca pasta successful Cucina Fresca pasta was very successful due various reasons: * Shorter cooking time, * perception of quality of food ( no unhealthy carbs), * first mover advantage, * variety of choices, * Right size portions, * Simple instructions for preparation. * Taste How would you compare the pizza opportunity to that for pasta? Pro: 33% preferred whole grain crust; major chains offered whole grain crust, opportunity for healthier and fresher choice. Considered more of a meal than an indulgence Con: Indulgence factor, Major competitors like nestle and craft How would you compare the actual product development process for each? Pasta: In terms of market preference, there is a shift to authenticity as opposed to mass production and lower quality. Also, awareness to whole grains as a part of diet is being satisfied with shift towards the healthier implementation in the production. In terms of development the pasta, there are various differentiated offering in the Cucina Fresca line. They consist of cut pasta tortellini and an assortment of sauces. This development was tested and received positive feedback. Pizza: the market for the pizza is larger than that of pasta. However concerns for health related issues to arise from consumption posed to be an obstacle but also satisfies the need for a gourmet...
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...Truearth Healthy foods: market research for a new product introduction Why was Cucina Fresca pasta successful? How would you compare the pizza opportunity to that for pasta? Cucina Fresca pasta was successful due to following reasons * It had a shorter cooking time as it came in fresh form and not the dry ones. * The consumers perceived it to be a healthy food because it was available in wholegrain and multigrain varieties. There was increasing awareness. * They had initiated the product development process and hence carried out idea generation, concept screening, product development and screening and quantification of volume. They also had market research to find out the consumer trends. Hence they had first movers advantage. * Cucina Fresca differed from high end dry pasta in flavour, texture and nutrition. * These products were quick and easy . The packing recommended best sausage options. * It provided customers the convenience they require and hence attracted the customer satisfaction. * Consumers had a perception that the fresh pasta was tastier and more authentic than the dry ,shelf-stable pasta . Let’s compare the pizza opportunity and pasta opportunity. Pizza opportunity * Annual sales in U.S. totalled $53 billion. (2007) * $5.8 billion sales market in refrigerated pizza which made it larger than refrigerated pasta market. * Incremental investment was substantially less * 33% restaurant going people surveyed showed strong...
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...TruEarth’s dilemma to launch a new pizza product TruEarth, maker of gourmet pastas, sauces and meals, has successfully launched a new product named Cucina Fresco in 2006 and took the first mover advantage in healthy food industry. Although Cucina Fresco led to TruEarth’s great success, it doesn’t promise TruEarth a long-term profit due to intense competition. Truearth has gradually lost its market share to Rifazzi after Rifazzi’s introduction of its whole grain fresh pasta in late 2007. Identifying customers’ needs for healthy food and the market trend based on extensive market research, TruEarth is facing a critical business decision about whether to launch a new product line of whole grain pizza or not while its main competitor Rigazzi also intends to launch a similar product. Launching whole grain pizza might help TruEarth to expand its product diversity and retain its position in whole grain products; however, besides the threat posed by Rigazzi, the presence of existing strong competitors such as Kraft and Nestle and consumers’ perception of healthy value of pizza also put TruEarth at a disadvantage. Success of Cucina Fresca pasta TruEarth was the first company that identified the opportunity for healthy gourmet products and developed products that met customers’ needs. As the trend of having a healthier diet grows, Cucina Fresca offers not only fresh pasta and sauce with healthy ingredients as home meal replacements but also a better taste than dry, shelf-stable pasta...
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...GEMP - TruEarth Caso de estudo Introdução A TruEarth é uma empresa que produz diversos produtos gourmet, como pastas, molhos e refeições completas. Criada em 1993 por Gareth DeRosa, em St. Louis, ganhou expressão rapidamente no mercado das refeições prontas. Sucesso e Cucina Fresca Introduzindo no mercado a Cucina Fresca, em 2006, a TruEarth teve aí, o seu produto mais bem sucedido até à data. Razões para o sucesso da Cucina Fresca: ● Inexistência de produtos semelhantes no mercado. ● Uso de ingredientes da melhor qualidade. ● Aumento da procura por produtos gourmet mais saudáveis. ● Mercado a desejar mais produtos não processados. Oportunidade de Mercado Pasta ● $4.4B vendidos em todo o mercado(2007) ● Valor vendas esperadas: $14M a $21M ● ● $5.8B valor do mercado das pizzas refrigeradas ● Preocupação crescente com a saúde e escolhas mais saudáveis ● Base de clientes formada devido ao sucesso da Cucina Fresca Sem competição quando lançada ● Pizza Aumento da procura de alternativas mais saudáveis por parte do público. Previsão de procura de pizza A procura de pizza tem vindo a ser afetada pelas preocupações relativamente à saúde e com o aumento de pessoas a praticar dieta, restringindo o consumo de hidratos de carbono. TruEarth viu aqui uma oportunidade: ● Estudos revelam que 77% dos consumidores comem pizza pelo menos uma vez por mês ● Mercado 30% maior comparando ao mercado das pastas ● Supõem...
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...TruEarth Case Analysis There are various objectives facing the decision maker of TruEarth foods. It is vital to have set objectives before launching a product or even a brand. There needs to be a clear vision of where the company will be in the long and short term, as well as objectives on how TruEarth will run its business and market its products. The main objectives TruEarth needs to focus on are: project objectives, company objectives, personal objectives; long-term versus short term and also the explicitly stated versus implied objectives. The project objective for TruEarth is to successfully find the best way to enter the emerging whole grain pizza market and be the leader in this environment. As the health food industry has continued to boom, TruEarth needs to find the proper way to enter the fresh, healthy, non-frozen pizza market and appeal to those who want pizza, without the pre-existing health risks. As a company, TruEarth focuses their objectives on sustaining their competitive advantage over competitors in the healthy gourmet foods market when entering into the very profitable pizza market. TruEarth’s initial product launch of the Cucina Fresca brand of fresh cut pasta and sauces proved to be successful due to a first mover advantage in a market without a clear leader. The company must now decide what is going to sustain their competitive advantage: attempt to gain the first mover advantage in the pizza market by launching their product as quickly as possible...
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...TruEarth Healthy Foods: Market Research for a New Product Introduction Cucina Fresca is a quick home meal replacement product from TruEarth, an Italian food company which focused on whole grain pasta. Isabel Eckstein, TruEarth brand manager was pondered whether to launch its Pizza kit product as a product line extension of Cucina Fresca and if it worth to launch at what volume would be. TruEarth Experience with Pasta Product - Before launching its product,TruEarth conducted kitchen test which tested to a focused group, organize survey to evaluate interest, and market research to estimates potential sales by Nielsen BASES®. Cucina Fresca pasta market studyfinding that 76% positive purchase intent, comprising those who said they ‘definitely’ or ‘probably’ would buy the product. The industry rule of thumb is that 80% of those who claim they ‘definitely would buy’ and 30% of those who stated ‘probably would buy’ actually completed a purchase. Based on the study, the calculated trial volume was 1.4 MM households, and the calculated repeat volume was 2.3 MM households (assuming excellent product). With that prior kitchen test, survey and research, CucinaFresca Pasta sales which officially launched nationally in the third quarter of 2006 and hadgrown quickly ($18 million in retail sales in 2006 and $35 million in 2007). TruEarth’s Calculation for New Pizza Product: - For the launching of the new Pizza product, we did some calculation regarding data from Nielsen’s research as follow: ...
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...Purpose of this research paper is to find out if company need to launch production of whole grain pizza and to come up with semi-comprehensive marketing plan for this new product. Along with marketing plan we will provide market analysis that shows benefit of launch new product, define our target market and create value for the product. Market Analysis The business situation of TruEarth Healthy Foods Company is it faces two challenges now, one is from competitor and another is from itself. Firstly, TruEarth was good at produce Cucina Fresca - a kind of whole grain pasta meal. The revenue was $23 million by the end of 2007. However, growth had slowed in 2008 as competitor (Rigazzi) began offering similar products. Secondly, the Truearth faces a threat that is it only produces one kind of product. If Truearth cannot keep advantage in the market of whole grain pasta, then the company will be in a very disadvantageous position. Our purpose in this case is to help TruEarth to launch a product and provide a marketing plan. The whole grain pizza is a potential product that TruEarth is considering to launch in the future. Based on the pasta’s data, we can get the trial rate of pizza is 27.3 %(definitely would buy 18% times actually buy 80% plus probably would buy 43% times actually buy 30%). Customers Awareness is 16.2%(11% tried product times 50% customer awareness plus 89% un-tried product times 12% non-customer awareness). So the Marketing adjusted trial rate equal to...
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...office, inhaling the aroma from the test kitchen where the product development team was trying new recipes for TruEarth, maker of gourmet pastas, sauces, and meals. Her team had been working hard for the past year on a fresh whole grain pizza. The final market research results had arrived, and it was time to make a decision on launching the product. In 2006, Eckstein, a brand manager, had led the introduction of Cucina Fresca, a fresh whole grain pasta meal kit sold through supermarkets. By the end of 2007, sales had reached $23 million, making it the most successful product launch in company history. However, growth had slowed in 2008 as competitors began offering similar products. Sustaining a competitive edge in the fresh Italian food category required continual innovation and, as a result, TruEarth had invested heavily in its pizza offering. Eckstein observed: We were aggressive in launching Cucina Fresca. We made a significant investment in new manufacturing equipment and the distribution infrastructure required to get fresh food to shelves quickly. Being a small company competing against Nestle and Kraft is not easy, but we do not make rash decisions. The success of Cucina Fresca was a calculated risk based on significant research. We think we can achieve similar success with pizza, but we will need to take a hard look at the numbers. Company Background TruEarth was founded in 1993 in St. Louis, Missouri, by Gareth DeRosa, a young entrepreneur. DeRosa saw an opportunity...
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...TruEarth Healthy Food Case Study Introduction to the case Company’s background TrueEarth was founded in 1993 in St.Louis ,Missouri, by Garreth Derosta a young entrepreneur . They offered high processed gourmet (focus on whole grain products offering both 60% and 100% whole grain pastas-cucina Fresca) authentic with great quality . Their product line was: Standard pastas Whole grain pastas Tomato based sauce Refrigerated pastas Pastas with blended ingredient The concept was successful ,and truEarth became a supplier to a number of gourmet groceries throughout the Midwestern United State by 1998 ,the Company had built a loyal regional following .Responding to Customer demand ,the company raised consumer awareness through several promotional programs using coupons ,magazine advertisement ,and in-store demonstrations. Product Development process: In its early years ,truEarth’s product development was informal and largely driven by intuition .the team enjoyed experimenting with new products and limited edition variations on a core recipes and batch process used to manufacture most products made it easy to experiment without affecting overall production. But as time passed the company underestimate the appeal of hit product and find itself struggling to keep up with the demand. The company’ research and development Idea generation Concept searching Product development and testing Qualification of volume About Cucina Fresca The cucina Fresca line was...
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...Exhibit 2: Whole Grain Pizza Concept Purchase Volume Estimate, Year 1 (Excellent) Total Purchase Intent Definitely would buy 18.00% % of “Definites” who actually buy 80.00% “Definite” Purchases 14.40 a %Probably would buy 43.00% % of “Probables” who actually buy 30.00% “Probable” Purchases 12.90 b % Trial Rate 27.30 c % Marketing Plan Adjustment Target Households 58,500,000Cucina Fresca Pasta Customers 6,435,000 d Non- Cucina Fresca Pasta Customers 52,065,000 e Customer Awareness 50.00%Non-Customer Awareness 12.00% All Commodity Volume Distribution (ACV) 40.00% Marketing Adjusted Trial Rate Cucina Fresca Pasta Customers Adjusted Trial Rate 5.46 f %Non- Cucina Fresca Pasta Customers Adjusted Trial Rate 1.31 g %Cucina Fresca Pasta Customers Trial Purchases 351,351 h Non- Cucina Fresca Pasta Customers Trial Purchases 682,051.5 i Total Trial Purchases 1,033,402 j,k Repeat Purchase Inputs Repeat Purchase Occasions 2.00 Repeat Rate, by Product Services Excellent Product 49% Repeat Volume, by Product Scenario Excellent Product 1,012,733 l,m Total Purchases 2,046,135 n a Definitely would buy x % of “Definites” who actually buy: 80% x 18% b Probably would buy x % of “Probables” who actually buy: 30% x 43% c “Definite” Purchases + “Probable” Purchases: 14.4% + 12.9% d Target Households x 11%: 58,500,000 x 11% e Target Households x 89%: 58,500,000 x 11% f Trial Rate x Customer Awareness...
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...TruEarth Healthy Foods CASE STUDY 1. Read, reflect on and analyze the company situation within the context of a changing wine industry. 2. Think about an outline all of the external, internal, competitive, market, and consumer factors, changes and trends affecting Mondavi in their business model. 3. Analyze Mondavi on the industry using the tools you now know of, such as SWOT analysis, factor analysis, competitive matrices and Porter's five forces. What are your conclusions about competitive position and options for future growth? To answer: 4. Why was Cucina Fresca pasta successful? First of all, because it’s healthy. Also it’s easy to cook, it’s fast and tasty (in comparison with pasta of another companies). Package has size for one time meal and right proportions of sauce and pasta. Each package has simple instructions for cooking process. For people who care about health and don’t have time to cook – it’s the best option. And on the market only two companies which provide this product. 5. How would you compare the pizza opportunity to that for pasta? I think that here can be two options: huge fail or more or less success. When company launched fresh pasta it was something completely new and thus huge success and large consumption. But pizza is completely different. It’s can’t be healthy food, so people can be interested in it and in case of good taste it can be successful, but with more possibilities it’s not going to be as good as it was with...
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...Case Study TruEarth By Michele McKimmy Marylhurst University July 5, 2012 Professor S Abstract In the fight for competitive market share it is important for a company to bring new product to the market. TruEarth Healthy Foods, a maker of 100% whole grained gourmet Italian meals achieving great success with Cucina Fresco pasta, observed a decline in market share due to competitors offering like products. The company looking for new venues looked into launching a new fresh made pizza line in order to be competitive with its leading competitor as well as subsequent companies with a lower grade product such as Kraft and Nestle. TruEarh took great care in their research and development of the new product leading to analyzing the value and success of launching the pizza product line. Case Study TruEarth Case Questions: Keep in mind... what is the market need? How was the market segmented and what trends influenced the segmentation? 1. Why was Cucina Fresca pasta successful? How would you compare the pizza opportunity to that for pasta? How would you compare the actual product development process for each? 2. Using the forecast model for pasta shown in Exhibit #5, what is your forecast of the demand for pizza? Hints: the necessary data is contained in Table B and Exhibit 7. There is a significant difference in the "likeliness to buy" results for past TruEarth customers and non-customers. Actual penetration of the Cucina Fresca parent brand may range from...
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