1. TRUEARTH
HEALTHY FOODSANAND SHANKAR V
RAJIV RAJENDRAN
SAHIL KHANNA
DONA ANNA CHERIAN
AKHL CHOPRA
DHWANAY SHAH
NITESH GARODIA
SNEH BARATIA
PARITA JAVERI
2. TruEarth Healthy Foods
• Started in 1993, by an entrepreneur DeRosa
• Pioneers in providing quality, healthy and
authentic pastas
• Driven by innovative free willing and
entrepreneurial spirit
• Introduced a 60% as well as 100% whole grain
pasta Cucina Fresca which was a great success
3. About Cucina Fresca Pasta
• Launched in 2006
• Tapped the growing demand for healthy HMR
efficiently
• Only one strong competitor
• Choices of pasta & sauces
• Single meal for 2
• $35 million sales - 2007
4. 1. Why did Cucina Fresca succeed?
• First Mover Advantage
• No strong player
• Unmet demand
• Healthier and tastier than competitors
• Quick, easy instructions, proper proportions, and
suggested add-ons
• Aggressive competition to Rigazzi
6. STAGES For Pasta For 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
million
7. 3. Market Opportunity for PASTA versus PIZZA
PASTA
• Market-$4.4 billion in 2007
• Launched as a new brand –
Cucina Fresca
• Is considered as a MEAL
• Perceived price value gap
was lesser
PIZZA
• Market-$5.8 billion in 2007
• Brand awareness already
created due to Cucina Fresca
• Is considered as an
INDULGENCE
• Perceived price value gap was
higher
9. SWOT
• First Mover Advantage
• Favorable quantified
estimates
• Brand awareness of
TruEarth and Cucino Fresca
• Large pizza market
• Health trend
• Popularity of
competing
categories
• Perceived lack of
taste
• Expensive- as per
study
• Convenient health trend
• Chance of lessening use
of substitutes (Ex.6)
• No large player at the
moment
• Ragazzi – New pizza
concept test done.
• BASES tests might be
proved wrong leading to
business risk.
STRENGTH WEAKNESS
OPPORTUNITIES THREATS
10. Our Recommendation
• Launch Pizza line immediately
• Revisit the price of the pizza kit
• Market it competitively
Editor's Notes
Types of pastas- cut: ravioli, tortellini, linguine,
The pack included pasta as well as sauces
It came in smaller packages unlike other existing pastas.
Since it went first, it was able to grab large market share.
3. Unmet demand of convenient as well as healthy food option
Read PAGE 5 5th para for detailed reasons for product success
4. It was healthy as it was a wholegrain pasta, it was also tasty unlike other competing products
3rd stage: Major Difference- No actual pasta taste test was conducted for the BASES research for the estimation of sales and repeat sales.
-Actual pizza kits were distributed in the case of the pizza line.
PASTA: EXHIBIT 3,4, Table A for second and third stage stage and EXHIBIT 5 for final stage
PIZZA: EXHIBIT 6,7,8 for second stage, 9 and 10 for home trial.
3. Since pasta is considered a meal, health is more important there but since pizza is an indulgence, people would always choose taste against just health.
4. Exhibit 4 (PASTA) – only 8% felt that it was too expensive; Exhibit 9 shows 26% of favorable customers asking for a price reduction
Thus, for the pizza eaters it made more sense to eat the tastier and fresher takeout rather than a healthy probably less tasty pizza
If we don’t Ragazzi will come out with it, and we will lose the first mover advantage
Price could be revisited up to 10% keeping in mind required sales of $12 million
Market it using strong points against takeout and refrigerated normal pizza