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Published byEthelbert Day Modified over 8 years ago
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Strategic management: TruEarth Pizza E.T. Andreyeva Olga Bokareva Vika Kulikov Fedor Kadrev Vladimir
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To launch or not to launch?
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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).
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Consumer response But: Takeout Pizza comes first in terms of convenience, taste & varieties; Too expensive (mean price 12.38 for TruEarth Pizza in comparison with 10.09 for refrigerated Pizza & 11.72 for Takeout); Only 10% of favorable to Product consumers overall like taste, texture & quality.
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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”)
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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.
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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.
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Adjustments Estimated repeat volume: ↓ Fresh Pasta is currently more successful, so we suggest: Fresh pastaTruEarth Pizza Mediocre Product 1.00.7 Average Product 1.71.23 Excellent Product 2.31.63
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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”);
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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.
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Final decision Launch! Expected sales – 1039K units. But pay attention to: Quality; Price level; HMR niche.
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