TRUEARTH SHOULD NOT LAUNCH WHOLE GRAIN REFRIGERATED PIZZA BECAUSE

TRUEARTH WHOLE GRAIN REFRIGERATED PASTA CONCEPT WILL NOT WORK

WITH PIZZA

Market is too

competitive

Potential increase in

competition in future

People are not accepting

the whole grain

refrigerated pizza

Deliveries/

Takeouts

Restaurants Frozen

Pizza

Market

Share43% 22% 14%

a) First mover

advantage

b) Good taste

a) Nestle and

Kraft offer at

lower cost

b) Requires no

effort in

preparation

1

a) Rigazzi is planning to

launch a whole grain

pizza and it will impact

our sales as it did in

2008 for pasta

b) Nestle and Kraft could

launch a frozen whole

grain pizza

Pasta Pizza

Favorable

to concept32% 19%

Good

price18% 9%

Too

expensive8% 27%

TruEarth

brand

name

33% 24%

Likeability

On a 5-pt

scales, scored

0.5 times

(10%) more

than

competitors

Pasta Pizza

Taste- 9.4 Taste-7.9

Variety-9.1 Var-6.7

The reasons are below:

BHAVANA DUTT

THERE IS A FUNDAMENTAL DIFFERENCE IN

PASTA AND PIZZA CONSUMER

25-60 years old

Health conscious, busy women who like

to cook for their families

When is it consumed:

Get-togethers and family dinners at home

16-40 years old

Men and women, working professionals or students, not health conscious and do not like to cook.

When is it consumed:

Restaurant lunches,

late night snacks,

during events,

group meetings,

with beer

2

Pasta user: “I want to cook home-made

dishes, but no time to cook”

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

have to put it together, I don’t know if its worth

it”

BHAVANA DUTT

DIFFERENCE IN LIKEABILITY OF PIZZA

AND PASTA USERS3

BHAVANA DUTT

WE WILL ONLY BREAKEVEN WITH 11% OF PENETRATION AND

REPEAT PURCHASE OF 7, WHICH IS NOT DO-ABLE WITH THE

MARKET CONDITIONS4

Pasta Pizza

BHAVANA DUTT

THE PROFIT SENSITIVE VARIABLES CANNOT BE

CHANGED FOR THE PIZZA CATEGORY5

Alternatives Requirements Results

1. Increase awareness of

consumers

Invest more money in advertising and

promotionsIncrease breakeven

2. Decrease price of the

product

Degradation in the quality of the

product

a) Loose competitiveness in taste

b) There is no customer value in preparing a

product to eat that is same in taste and price as

frozen pizza

3. Increase ACV (All

Commodity Value)

Convince more distributors to carry the

product. This requires more customers

from competitors thus, requiring more

time, effort and money

a) Loose time

b) Increase breakeven point

4. Increase Repeat Purchase

Occasion

Offer takeouts and deliveries to

outsource pizza manufacturing

a) Will deliver our offer because no experience in

pizza industry

b) Long distance delivery increases the price of the

product

c) Cheaper to manufacture own pizza than buying

it from TruEarth

BHAVANA DUTT

DECISION CRITERIA OF LAUNCHING

THE PRODUCT6

Criteria Pasta Pizza

Can we get/ do we have

40% market share

Yes (18mn/4.1bn) No

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 Snacks7

Lasagne

Whole grain breads

Whole grain Pita chips

Focaccia

Quiche

BHAVANA DUTT

Appendix 18

BHAVANA DUTT

Appendix 29

BHAVANA DUTT

Appendix 310

BHAVANA DUTT

Appendix 411

BHAVANA DUTT

Appendix 512

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