TruEarth is considering expanding into the refrigerated pizza market from its successful Cucina Fresca fresh pasta brand. While the pizza market is larger, it also has much more competition. Research shows customer interest is high but some have concerns about price and variety. Overall, the findings suggest launching pizza is worthwhile but the company should revisit the price, focus on taste, and develop a better crust.

1. TruEarth Healthy Foods:
Market Research for a New Product
Introduction
Presented by- Group 8
Akash Kumar Shukla (pgpj02002) Akash Ojha (pgpj02003)
Arpit Sharma (pgpj02010) Dushyant Bhauryal (pgpj02021)
Nikhil Khariya (pgpj02038) Rohit Rupani (pgpj02046)
Utkarsh Shivam (pgpj02059) Girish Singh (pgpj01035R)

2. Company Overview
 Established in 1993 in St. Louis, Missouri by DeRosa
 Pioneers in providing quality, healthy and authentic pastas
 “Cucina Fresca” brand created to meet the need of customers: healthy single meal,
easy to prepare, gourmet product.
 Driven by innovative free willing and entrepreneurial spirit
 Main Competitor is Rigazzi
 Considering expansion into refrigerated pizza market

3. 1. Why was Cucina Fresca pasta successful?
 First mover advantage- First company to focus on both 60% and 100% whole grain pastas in its line.
 Market shift from mass-produced, highly processed foods to greater stability and authenticity
 Highest quality ingredients used to make tomato-based sauces
 Increase in dual-income households-led to increase in disposable income coupled with time poverty
 Consumers perceived fresh pasta to be more tastier and authentic than the dry, shelf-stable pasta
 Technical innovations in packaging
 Growing awareness of importance of whole grains in the diet
Pasta
 $4.4 billion market
 Considered a meal
 Purchase intent of 33%
 Launched as a new brand-Cucina Fresca
 Has first mover advantage
 More investment
 Perceived price value gap was less
Pizza
 $5.8 billion market
 Considered as indulgence
 Higher strong intent-76%
 Brand awareness already established
 Has heavy duty competitors
 Incremental investment-substantially less
 Perceived value gap was high

4. Comparison of actual product development process
Stages Pasta Pizza
Idea Generation Tapping the quick HMR
market , need for healthy tasty
whole grain options
Threat by competition in pasta
segment, large pizza market,
health trend
Concept Screening Formal surveys like mall
intercepts
Concept tests, Mall intercepts,
interviews of “grocery shopper”
Product Development and
Testing
Convenience and Variety and
Testing through Focus Groups
without actual taste tests
Home Trial through sample
kits and taste tests.
Quantification of Volume Customer Awareness &
Interest.
Estimated sales required: $14
million
Customer interest and
quantification of estimated
sales and repeat sales.
Estimated sales required - $12

5. 3. Learning from Exhibit 6
• Higher ratings in Usage, taste and quality attributes as compared to Refrigerated pizza
• Can easily capture market share of refrigerated (9%) and frozen (19%) pizza
• Convenience (7.3 rating) and Varieties (6.7 rating) can be problematic
• Can capture Takeout pizza market by focusing on health conscious customers.

6. 5. Is there a first-mover advantage in pizza
similar to fresh pasta?
 Yes pizza will have first mover advantage similar to pizza
 Established consumer base and brand image will make for easier market
penetration
 Pizza has advantage as large investment in machinery and distribution was already
made
 Only core difference is that market of pizza is much bigger than that of pasta-
more potential consumers but more competition

7. 6. How do you evaluate the findings in Exhibit 9 and
10 to evaluate interest in pizza?
 Too Expensive
 Price of pizza with only one topping- $11.50
 Customers favourable to product willing to pay- $10.75
 Customers unfavourable to product willing to pay- $8.86
 Unfavourable to product customers suggesting to improve overall taste/flavour
 Most appealing facts of TruEarth’s pizza-
 Fresh ingredients
 High quality sauces and toppings

8. 7. Would you launch the pizza?
0%
20%
40%
60%
80%
100%
Definitely would buy Probably would buy Top two box
Pizza Concept Purchase Intent
TruEarth Customers Non-Customers Total
0
1
2
3
4
5
Mean Likeability Mean Price/Value
Rating
TruEarth customers Non-customers Total
Yes, launch the new product but with certain recommendation-
 Revisit the price of pizza kit
 Work on tastier options and more varieties
 Develop a better crust for pizza