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Product Introduction
Group 3, Section C
AMIT JAT
IPM2011012
ANKIT GOHIL
2014PGP041
KIRAN KUMAR MS
2014PGP162
P ABHISHEK
2014PGP238
PRANEET SINGH
2014PGP262
GUPTA TARU
IPM2011032
DILIP
VATSAL KUMAR
2014PGP416
Group 3 | Section C
Problem Statement
Whether to go ahead with TruEarth
What will the sales be given various scenarios?
whole
grain
pizza
concept
or
not?
Group 3 | Section C
Group 3 | Section C
4.
5.
6.
7.
8.
9.
Analysis
Refer Excel Sheet
Critique of Analysis
The analysis & underlying assumptions can be critiqued on the following fronts:
1. A 50% awareness of the pizza product from existing Cucina Fresca customers seems overly
optimistic
2. A 40% ACV value is relatively a low target and may lead to a missed opportunity. For Cucina
Fresca, the company had targeted a 50% ACV value.
3. Only 2 repurchase occasions in a year seem to be on the lower side, while 49% repurchase
seems to be on the higher side
Other aspects
1. As pointed out in the case, pizza is essentially an indulgence food. Positioning pizza as a
healthy food choice and basing our whole marketing strategy on this position would be a
risky option.
2. There is the risk of not being able to match the quality of takeout/delivery, restaurant and
homemade pizza.
3. The varieties of topping offered are severely limited compared with the vast choice normally
available to a buyer when purchasing a pizza. For instance, in exhibit 6, surveyed users gave
lower ratings to the TruEarth pizza on taste and variety attributes compared to takeout
pizza.
4. Given the limited life of the product, any drop or adverse fluctuation in demand, even in the
short term, would lead to heavy costs in terms of unsaleable inventory, especially given the
practice of retailers seeking markdowns and high guaranteed sell-through performance.