CS TruEarth

Case study: TruEarth Healthy food

4) Cucina fresca pasta was successful because:
 First mover in the fresh whole grain pasta
 High quality ingredients for sauces
 Short cooking time combined to a consumer perception of better quality
 Quick and easy: simple instructions, exact portions
 Healthier food than those with “bad” carbohydrates but still tastes great
 Tapped into an unmet demand with no strong players (later Rigazzi entered the same market but TruEarth responded accordingly)

5) Pizza opportunity Vs Pasta opportunity
 The refrigerated pizza market is bigger (5.8B$ Vs 4.4B$ in 2007) therefore harder to join in. Already huge players like Nestle and Kraft. But the whole grain crust with high-quality ingredients is a new opportunity in this market
 Distribution network: was new for pasta and is now already established for pizza, with some brand awareness
 Pizza has a poor image as a healthy meal whereas pasta, especially fresh with whole grain, is perceived healthier
BUT the concept of introducing the whole grain crust combined with high quality ingredients is new and can lead customers to like this guilt-free gourmet pizza.
 Incremental investment for pizza substantially less than for pasta

6) Product development process Pizza Vs Pasta
The company uses a formal four-step process:
 Idea Generation: Done in 2004 for pasta to take advantage of the growing demand for quick home meal replacements Vs done soon after for pizza as a line extension.
 Concept screening: For pasta: no presence of formal surveys but more an intrinsic conviction that the product was going to be a success Vs Many surveys done for pizza. Most important one: 33% of restaurant-goers had a strong interest in a whole grain crust
 Test Kitchen: Large range of choices for the pasta/sauces. Products designed to be consumed in a single meal for two Vs Basic kit for pizza with separate crust, cheese, sauce and complementary toppings. Product designed to feed 2 to 3 people.
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