Cucina Fresca Case

Topics: Rate of return, Investment, Internal rate of return Pages: 4 (1140 words) Published: January 30, 2013
1. The success factors of Cucina Fresca Pasta

* Thorough market survey – The company structured its R&D division and outsourced the market survey to Nielson Bases. The survey took into consideration both- the market potential as well as behavioral considerations. * Easy customizable options – Consumers were provided with a wide range of sauces and simple instructions/ recommendations for preparing the meal. * Smaller pack sizes – This gave a feeling of freshness. It was also easier for first time/ skeptical consumers to purchase trial packs. * TruEarth was successful in catering to the unmet demand for healthy pasta which tasted good as well. * Home meal replacements- Cucina Fresca provided a suitable alternative to home makers/ individuals who faced time constraints but at the same time had a passion for cooking. * It served as a replacement for refrigerated pasta which was considered to be less tasty and authentic. * Whole grain pasta solved the problem of bad carbohydrates, thus catering to the health conscious consumers. * They had prior experience and existing capabilities in the pasta market which helped them successfully launch Cucina Fresca.

2. Opportunities for pasta vs pizza
| Pizza| Pasta|
Market Demand| $ 5.8 Bn for refrigerated pizza| $4.4 Bn for refrigerated pasta| Distribution Channels | Dine-in, take-out, in store refrigerated| Retail stores, supermarkets| Competition| Attempting to be a market follower, increasing competition in the future| Just one main competitor, Has first mover advantage| Consumer perception| Viewed as a matter of indulgence, so health could take a back seat (only 33% of consumers reacted positively to survey) | Highly health conscious consumers(85% of consumers reacted positively)| Consumer awareness| Could leverage on the consumer awareness of its whole grain pasta| Being the first mover, had to build customer awareness from scratch| Target Households| 58.8...
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