UNIVERSITY OF LA VERNE
La Verne, California
TruEarth’s Whole Grain Pizza
BUS560 Seminar in Marketing Management
1. Objective statement
Our team goal is to expand TruEarth whole grain pizza’s business and increase the market share in refrigerated pizza market in United States by producing, developing and selling the TruEarth whole grain pizza.
2. Most important issues to achieve the objective
How TruEarth should set appropriate price
How TruEarth should adjust the taste to target customers
How TruEarth keeps customers who have already known the brand and attract new customers who like refrigerated pizza How TruEarth lets customers realize whole grain pizza’s healthiness
3. Analysis of local market
* Company information
* TruEarth was founded in ST. Louis Missouri in 1993. The founder was Gareth DeRosa. a young entrepreneur. * In late 2004, TruEarth test kitchen developed a kind of fresh whole grain pasta – Cucina Fresca. * The Cucina Fresca of the TruEarth grew very rapidly with $18 million in retail sales in 2006 and $35 million in 2007. * By mid-2007, the TruEarth test kitchen developed a pizza concept to test.
* Background of United States refrigerated pizza market
* Traditionally, Pizza is one of favorite Italian-American food in U.S.A. * In 2007, annual sales of pizza in United States estimated at $53 billion. However, the store-bought refrigerated pizza market was 11% of sales and total $5.8 billion.
* Healthy ingredients * High brand awareness * Personalize taste
| * High price * Customers are willing to purchase the same refrigerated pizza brand.
* More customers pay attention to the importance of healthiness in refrigerated products * There are still lots of demand potentials for pizza market in United States.
| * Competition is getting intense * Kraft and Nestle have already produced low-cost frozen pizza. * Tradition opinion is that pizza is unhealthy food
5. Whether to launch the product
The estimated sales volume is $18.5 million, which exceeds $12 million. It meets the company’s return requirements. Therefore, TruEarth should decide to sell the whole grain pizza to the market. (See AppendixⅠ)
We recommend that Truearth should sell the whole grain pizza in the supermarket in major metropolitan areas, it could cooperate with large supermarket, for example: Wal-Mart. Wal-Mart is the world's No. 1 retailer with more than 4,000 stores in the United States (Hoovers, 2012). Moreover, improving marketing promotion, especially on the television, website of TruEarth and the areas in the supermarket can increase product awareness of the new product.
a) Reasoning for the recommendation
TruEarth’s whole grain pizza is refrigerated pizza therefore the most suitable places to sell the product are supermarkets. The density of supermarket is far larger than small cities. In addition, big cities have large populations and easy to attract customers’ attentions. People in large cities have busier lifestyle than people in small cities. Therefore, it is convenient for them to purchase the new product. Although the brand is known to lots of people, TruEarth’s whole grain pizza is a new product to the market. So we choose TV ads to let more people know the product and increase product awareness. We also choose supermarkets ads because our main sales place is supermarket.
b) Marketing strategy recommended
* Target groups
Primary target: customers who already like TruEarth brand
Secondary target: customers who like eating refrigerated pizza and enjoy healthy eating (Customer awareness of the brand is 50%, see AppendixⅡ)
* Product & Price
We don't’ change the price and the product. The price range of the pizza is $8 – $18.5. According to Robinson (2006), the...
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