Strategic management: TruEarth Pizza E.T. Andreyeva Olga Bokareva Vika Kulikov Fedor Kadrev Vladimir

To launch or not to launch?

Consumer response Home meal replacement (easy to prepare, but still people are involved in preparing dinner); Refrigerated fresh Vs frozen (tastier & more authentic); “Bad” carbohydrates (Mall Intercept, measure “is made from healthy products” 9.1/10 for TruEarth Pizza Vs 7.1 for Takeout & 5.9 Refrigerated Pizza).

Consumer response But: Takeout Pizza comes first in terms of convenience, taste & varieties; Too expensive (mean price for TruEarth Pizza in comparison with for refrigerated Pizza & for Takeout); Only 10% of favorable to Product consumers overall like taste, texture & quality.

Consumer response But still: 28% of favorable to product consumers find no need for improvements; TruEarth Pizza will occupy 17% of the market after introduction, main rival – Refrigerated Pizza – will lose 6% of the market. 33% find a brand name a great advantage of TruEarth. Trial Rate is 27,3% (18% “Definites” & 43% “Probables”)

New Product Marketing Plan Do not need further investment in infrastructure and equipment; “We are loved because of healthiness” – for the concept of HMR & healthy ingredients; Contracts with cafes, bistros etc. Company’s own network of shops and restaurants.

New Product Marketing Plan Wholesale volumes need to exceed $12 million to meet the company’s return requirements; Marketing-adjusted Trial Rate=0,01767; Trial householders=1,0389; To reach $12M we need 970K sold units.

Adjustments Estimated repeat volume: ↓ Fresh Pasta is currently more successful, so we suggest: Fresh pastaTruEarth Pizza Mediocre Product Average Product Excellent Product

Adjustments Improve overall taste/flavour; Improve the sauce; Make crust less chewy; More efficient marketing strategy; Advertising to rise product & brand awareness (“TruEarth: Pay not just for pizza, pay for health”);

Volume Projections To meet the company’s return requirements, we need to sell 970K in volume; Expected sales among trial households equal 1039K; Quality growth is a priority.

Final decision Launch! Expected sales – 1039K units. But pay attention to:  Quality;  Price level;  HMR niche.