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TruEarth Case Study
Transcript of TruEarth Case Study
History of struggling to keep up w/ demand
Narrow product line
TruEarth Case Study
Objectives, Problems, and Options
Potential Target Markets
The 4 P's
First-mover for pasta
Choices (prep & type)
Strong market share
Pizza: whole wheat crust
Growing opportunity for healthy foods
No large players
Increase in profitability and revenue w/ expanded product line
Pasta competitors (Rigazzi)
Pizza competitors (Nestle, Kraft)
First-mover spot up for grabs
Founded in 1993 in St. Louis, Missouri by Gareth DeRosa
Successful manufacturer of gourmet pasta and sauce with an emphasis on healthy, high-quality ingredients.
Cucina Fresca product line has been most successful launch in company history.
Concern on how successful their whole grain pizza line extension will be in the market
on-the-go: "time poverty"
easy to make
Introduce new pizza kit to the market
Sustain competitive edge
26% Favorable & 35% Unfavorable
Introduce pizza kit to to the market using a different channel
Cucina Fresca (meaning "Fresh Kitchen" in Italian), has variety of product offerings:
Cut Pasta (Fettuccine, Linguini, Angel Hair)
Filled Pasta (Spinach Cheese Tortellini, Four Cheese Ravioli)
Highly selective ingredients
Used high quality durum wheat from North Dakota.
Pizza kit extension includes crust plus separate packets of cheese, and a line of separate complimentary toppings.
Additional toppings cost extra
Gourmet Grocery Stores
Takeout and Frozen Pizza
Nestle and Kraft
Other refrigerated meals
Those looking for a quicker and easier alternative
Those looking for a healthier alternative
Those who want a fun hands on experience with a spouse or family member
9 ounce package of pasta= $5.75
12 ounce sauce package=$4.50
Majority of current customers were happy with this price point.
New pizza kit= $8.00
Individual topping packs= $3.50 each.
Many survey participants felt that this price was unreasonable.
Currently sells product offerings in gourmet grocery stores in the Midwestern United States
Expanded into mainstream supermarket chains due to increasing customer demand
By 1988, TruEarth had developed a loyal regional following throughout the Midwestern U.S.
TruEarth worked to further raise awareness through various promotional programs, the use of coupons, magazine advertisements, and in-store demonstrations.
$8 million in advertising
$2 million in promotional coupons
1. Why was Cucina Fresca pasta successful? How would you compare the pizza opportunity to that for pasta? How would you compare the actual product development process for each?
2. Using the forecast model for pasta shown in Exhibit 5, what is your forecast of the demand for pizza?
3. What can the TruEarth team learn from Exhibit 6 about how consumers view pizza?
4.How do the pizza concept test results (Exhibts 7 & 8) compare with the findings for pasta (Exhibits 3 & 4)?
5. Is there a first-mover advantage in pizza similar to fresh pasta?
6. How do you interpret the findings in Exhibits 9 & 10 to evalute interest in pizza?
Launching the whole grain pizza kit could be beneficial for TruEarth, but in a different capacity:
Frozen, whole grain pizza kit including tub of dough, packages of cheeses, and various additional toppings.
Enough to make multiple pizzas, feeding more people.
Sold in bulk at warehouse stores (BJ's, Costco, Sams Club)
Price point: $11.00 per kit.
Promote by doing in-store demonstrations and providing coupons to current and potential customers.
Coupons included in other Cucina Fresca Products
Available in advertising magazines