TruEarth
The Cucina Fresca pasta was successful because of ongoing consumer behavior trends. There was a large market for Home Meal Replacements, a growth of refrigerated fresh pasta, believed to be tastier and more authentic, and a growing trend and awareness of whole grain, having consumers say “goodbye” to bad carbs. The pizza opportunity relates to the pasta opportunity in which TruEarth attempts to provide consumers with a healthier, refrigerated meal replacement. They also became successful because of their aggressive competition to Rigazzi when TruEarth was the first mover with healthier and tastier options than competitors.
According to the calculations done in the table below, TruEarth sales volume would be about 17.0M. The penetration rate for customers is 11%, with non-customers at 89%. On the other hand, there is the issue of repeat purchase. The BASES Model tells us that it is an “excellent product” if 49% would consider it one. With a 5-15% penetration rate and a 49% excellent product, this product should go to market. These statistics better allow TruEarth to advertise the pizza.
From Exhibit 6, the TruEarth team can conclude that most consumers eat takeout pizza and restaurant pizza versus homemade and frozen pizza. From this, they can learn consumer behavior towards the meal itself. For example, studies have shown that since customers consider pizza a “treat” they are more likely to spontaneously order it instead of preparing it at home.
The first-mover advantage in pizza is very similar to that of pasta. Since competitor Rigazzi was already testing a pizza product and was not far from introduction, TruEarth knew they had to get started. Like the team said in regards to the fresh pasta, if they waited they would not be able to establish the market share they have now.
The findings in Exhibit 9 & 10 allow TruEarth to cater towards consumer wants and needs and how much the customers are willing to pay for those specific wants and needs.
In conclusion, I
According to the calculations done in the table below, TruEarth sales volume would be about 17.0M. The penetration rate for customers is 11%, with non-customers at 89%. On the other hand, there is the issue of repeat purchase. The BASES Model tells us that it is an “excellent product” if 49% would consider it one. With a 5-15% penetration rate and a 49% excellent product, this product should go to market. These statistics better allow TruEarth to advertise the pizza.
From Exhibit 6, the TruEarth team can conclude that most consumers eat takeout pizza and restaurant pizza versus homemade and frozen pizza. From this, they can learn consumer behavior towards the meal itself. For example, studies have shown that since customers consider pizza a “treat” they are more likely to spontaneously order it instead of preparing it at home.
The first-mover advantage in pizza is very similar to that of pasta. Since competitor Rigazzi was already testing a pizza product and was not far from introduction, TruEarth knew they had to get started. Like the team said in regards to the fresh pasta, if they waited they would not be able to establish the market share they have now.
The findings in Exhibit 9 & 10 allow TruEarth to cater towards consumer wants and needs and how much the customers are willing to pay for those specific wants and needs.
In conclusion, I