Group-10
Abhilash PGP10064
Devesh Upadhyay PGP10079
Rishabh Gupta PGP10103
Somya Agarwal PGP10114
Misha Garg PGP10094
K.N.L.Manasa PGP10087
Swaranjit Saha PGP10100
Q1. Using the forecast model for pasta shown in Exhibit 5, what is your forecast of the demand for
pizza?
Hint: The necessary data is contained in Table B and Exhibit 7. There is a significant difference in the
likeliness to buy results for pasta customers and non-customers. Actual penetration of the Cucina Fresca
parent brand may range from 5% to 15%, so sensitivity analysis will be useful.
Definitely buy 18%
Probably by 43%
Trail rate 27.3%
Total rate 27%
ACV 50%
Target households (MM) 58.8
Trail households 2.5
Repeat purchase occasions 2
Price per kit 12.38
Repeat purchase in millions - Average 1.85
Revenue in Millions (Retail) - Average 22.284
Revenue in Millions (Wholesale) - Average 14.484
Q2. What can the TruEarth team learn from Exhibit 6 about how consumers view pizza?
It can be seen from exhibit 6 that consumers are more interested in Takeout/delivery pizza. 47% of the last
10 pizza eating occasions are from Takeout/delivery pizza. Take-out pizza is considered convenient, tasty
and fresh, variety offered and the ingredients used are from high quality ingredients. Though the Takeout
pizza is preferred, it is considered to be unhealthy where the healthy factors of TruEarth can be marketed in
the market.
Exhibit 6 - Pizza Attributes & Substitution, Mall Intercept
Takeout Pizza, based Refrigerated Pizza, base
Measures Favorable Evaluation of TruEarth Pizza Concept
on past experience on past experience
(based on 10-point scale where 10 = "Agree Strongly") (N=181)
(N=300) (N=137)
Usage attributes
Is a product for the whole family 8.9 7.1 8.6
Is convenient 9.3 7.3 7.3
Is easy to prepare N/A 7.4 7.7
Taste attributes
Would taste fresh 9.4 7.2 7.9
Comes in varieties I like 9.1 6.3 6.7
Quality attributes
Is made from high-quality ingredients 7.1 6.2 8.1
Is made from healthy ingredients 6.5 5.9 9.1
Substitution of TruEarth Pizza for other choices (N=181)* % of Last 10 Pizza Eating Occasions % of Next 10 Pizza Eating Occasions % change with introduction of TruEarth Pizza
TruEarth Whole Grain Pizza N/A 17% 17%
Takeout/delivered pizza 47% 43% -4%
Restaurant pizza 23% 22% -1%
Refrigerated pizza 9% 3% -6%
Frozen pizza 19% 14% -5%
Homemade pizza 2% 1% -1%
Total 100% 100% 0%
* To be read: Among those favorable to the TruEarth Whole Grain Pizza concept, on average, 47% of the last 10 instances of pizza
consumption were takeout. If TruEarth were available, the average respondent indicated that takeout pizza would account for 43% of
their next 10 pizza-eating occasions.
Example comments:
23-year old female: "I rarely eat pizza because it's not very healthy, but I miss it. I would definitely consider it more often if it were
healthier."
35-year old male: "Whole grain crust does not even sound like real pizza. It would probably have to taste better than the stuff I can get
from delivery."
42-year old female: "The whole family loves pizza, but it's important to me to provide something that's not terribly unhealthy. A good
whole grain crust just might do the trick."
Q3. How do the pizza concept test results (Exhibits 7 and 8) compare with the findings for pasta (Exhibits
3 and 4)?
Exhibit 7 - Pizza Concept Purchase Intent, Mall Intercept
TruEarth
Total Non-Customers
Customers
(N=300) (N=225)
(N=75)
Definitely would buy 18% 15% 26%
Probably would buy 43% 39% 53%
"Top Two" Box 60% 54% 79%
Mean Likeability** 3.7 3.5 4.2
Mean Price/Value rating** 3.0 3.0 3.1
Exhibit 8 - Pizza Concept Likes & Dislikes, Mall Intercept
300 181 119
Favor able Unfavorable
Total
Attributes to Concept to Concept
(N=300)
(N=181) (N=119)
LIKES
Food Qualities
Whole grain 19% 25% 10%
Freshly made and dated 31% 35% 26%
Looks appetizing 24% 31% 13%
Preparation
Product selection 16% 20% 9%
Can purchase all items in one place 27% 35% 15%
Can buy toppings separately 23% 31% 11%
Can add amount & type of toppings desired 18% 24% 9%
Easy to prepare 16% 20% 9%
Other
TruEarth brand name 24% 33% 11%
Good price 9% 13% 3%
DISLIKES
Limited selection 23% 18% 31%
Too expensive 27% 20% 38%
Limited time to product expiration 12% 3% 25%
Respondents are asked to select the attributes that they "like" or "dislike" about the product concept.
Exhibit 3 - Fresh Pasta Purchase Intent
Cucina
Industry
Measure Fresca
Median*
(N=300)
Definitely would buy 27% 20%
Probably would buy 49% 42%
"Top Two" Box 76% 62%
Mean Likeability** 4.1 3.6
Mean Price/Value rating** 3.2 3.5
300 228 72
Exhibit 4 - Fresh Pasta Concept Likes & Dislikes
Favorable Unfavorable
Total
Attributes to Concept to Concept
(N=300)
(N=228) (N=72)
LIKES
Food Qualities
Whole grain 32% 35% 22%
Freshly made and dated 38% 42% 26%
Looks appetizing 22% 25% 13%
Preparation
Product selection 17% 20% 9%
Easy to prepare 21% 24% 12%
Single meal portion size 16% 18% 10%
Other
TruEarth brand name 33% 40% 10%
Good price 18% 22% 7%
DISLIKES
Limited selection 20% 15% 35%
Too expensive 8% 3% 25%
Limited time to product expiration 16% 10% 33%
Respondents are asked to select the attributes that they "like" or "dislike" about the product concept.
The market survey results for pizza is not as strong as the survey for pasta. In both the survey ,300 tests
were conducted. Pasta survey was conducted across many cities while survey for Pizza was conducted in
300 mall intercept interviews.
From the exhibit ,it is clear that that top two box for Pizza purchase is 60% while that for Pasta is 76 % .
Even the mean likeability for pasta is more than pizza .Pasta scored 4.1 where as pizza scored 3.7. So by
comparing the exhibits of pizza and pasta, pasta seems to have better preferences and likeability.
Q4. From Exhibit 9, we can see that the main less appealing characteristics of the product is its price
which sometimes can be more expensive than takeout and restaurant, the overall taste that consumers
consider that can be improved, the crust (that could be less chewy). The most appealing are the fact that
those pizzas are freshly made and dated, look appetizing and are made of whole grain. Besides this, it is
highly appreciated that they are sold all items in one place and the brand name also plays an important
role.
The price is one of the problematic factor, taking into consideration that the price of the pizza with only
one topping pack would be around $11.50. And from exhibit 10 we can conclude that the consumers who
are favorable to the product would be willing to pay, on average, $10.75 and unfavorable ones would pay
$8.86 (both are lower than $11.50).
Q5. There are lot of opportunities to launch the new pizza product. Key opportunities to grow for
refrigerated pizza with whole grain options are:
Highly potential market: market size is $5.8B, which is bigger than market size of refrigerated pasta
($4.4B) might imply a much higher wholesale revenue for this new product. The purchase volume
estimate will be presented in Financial analysis section;
Growing health concern: increasing awareness of “bad” carbohydrates and healthy diet will drive more
people to switch between traditional crust pizza to whole grain crust pizza;
“Home meal replacement” trend: time constraints make refrigerated semi-prepared foods become more
relevant to customers who still want to involve in preparing and customizing their foods.
