TruEarth Case
TruEarth Healthy Foods
TruEarth, a company founded in 1993 in Missouri by Gareth DeRosa, wants to launch a Whole Grain Pizza. This paper discusses what the forecast in terms of units and value of the demand for pizza will be. Secondly, an explanation is given if we would launch the pizza or not. Thirdly, the pizza results will be compared with the findings for pasta. Finally, it is justified whether or not there is a first-mover advantage in pizza like there was with fresh pasta.
Trial Purchase Intent
Definitely would buy
18%
% of “Definites” who actually buy
80%
“Definite” Purchases
14.4%
Probably would buy
43%
% of “Probables” who actually buy
30%
“Probable” Purchases
12.9%
Trial Rate (Definite + Probable)
27.3%
Marketing Plan Adjustment
Projected Consumer Awareness
16.2%
All Commodity Volume distribution
40%
Marketing Adjusted Trial Rate
1.77%
Target Households (MM)
58,800,000
Trial Households (MM)
1,040,760
Repeat Purchase Inputs
Trial Households
1,040,760
Repeat Purchase Occasions
2.0
Repeat Transaction Amounts
1.25
Repeat Rate
Mediocre Product
21%
Average Product
37%
Excellent Product
49%
Repeat Volume
Mediocre Product
546,399
Average Product
962,703
Excellent Product
1,274,931
As can be seen in table 1 and 2, our forecast in terms of units is between 1,587,159 and 2,315,691 depending on the perceived quality of the product. The total volume is the trial purchases together with the repeat purchases. The total trial households is 1,040,760, which was calculated by taking 1.77% (marketing adjusted trial rate) out of 58.8 million target households. The 1.77% is calculated by multiplying the trial rate (27.3%) by the projected consumer awareness (16.2%) and the ACV (40%). Table 1 continued shows us a repeat volumes per perceived quality of the product, which was calculated by multiplying the trial households by the repeat
TruEarth, a company founded in 1993 in Missouri by Gareth DeRosa, wants to launch a Whole Grain Pizza. This paper discusses what the forecast in terms of units and value of the demand for pizza will be. Secondly, an explanation is given if we would launch the pizza or not. Thirdly, the pizza results will be compared with the findings for pasta. Finally, it is justified whether or not there is a first-mover advantage in pizza like there was with fresh pasta.
Trial Purchase Intent
Definitely would buy
18%
% of “Definites” who actually buy
80%
“Definite” Purchases
14.4%
Probably would buy
43%
% of “Probables” who actually buy
30%
“Probable” Purchases
12.9%
Trial Rate (Definite + Probable)
27.3%
Marketing Plan Adjustment
Projected Consumer Awareness
16.2%
All Commodity Volume distribution
40%
Marketing Adjusted Trial Rate
1.77%
Target Households (MM)
58,800,000
Trial Households (MM)
1,040,760
Repeat Purchase Inputs
Trial Households
1,040,760
Repeat Purchase Occasions
2.0
Repeat Transaction Amounts
1.25
Repeat Rate
Mediocre Product
21%
Average Product
37%
Excellent Product
49%
Repeat Volume
Mediocre Product
546,399
Average Product
962,703
Excellent Product
1,274,931
As can be seen in table 1 and 2, our forecast in terms of units is between 1,587,159 and 2,315,691 depending on the perceived quality of the product. The total volume is the trial purchases together with the repeat purchases. The total trial households is 1,040,760, which was calculated by taking 1.77% (marketing adjusted trial rate) out of 58.8 million target households. The 1.77% is calculated by multiplying the trial rate (27.3%) by the projected consumer awareness (16.2%) and the ACV (40%). Table 1 continued shows us a repeat volumes per perceived quality of the product, which was calculated by multiplying the trial households by the repeat