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 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.
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 pasta TruEarth
Pizza
Mediocre
Product
1.0
0.7
Average
Product
1.7
1.23
Excellent
Product
2.3
1.63
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.