Non-Customers Customers

Definitely would buy 15% 26%

% of "Definites" who actually buy 80% 80%
Definite Purchases 12% 20.8%

Probably would buy 39% 53%

% of "Probables" who actually buy 30% 30%
Probable Purchases 11.7% 15.9%

Trial Rate ("Definite" + "Probable") 24% 37%

Target households (MM) 58.8 58.8

Penetration, % of target households 89% 11%
Awareness of pizza product 12% 50%
ACV distribution 40% 40%

Adjusted Trial Households 0.60 0.47

Total trial households (Non-Customers + Customers) 1.07

% of households repurchasing (Excellent) 49%

Repeat purchase occasions 2

Total purchases (Trial + Repeat) 2.12

Retail selling price $12.38

Retail sales volume $26.23 M
Retailer gross margin 35%
TruEarth sales volume $17.05 M

Mediocre Product Average Product

5% Penetration $ 9.73 $ 11.92
11% Penetration $ 12.23 $ 14.98
15% Penetration $ 13.89 $ 17.03
Minimum Business Requirement: $12 million wholesale
 Source
Exhibit 7
Exhibit 5

Exhibit 7
Exhibit 5

Table B
Table B
Table B
Table B

Table B
Table B

Table B

Case text

Excellent Product Weighted average

$ 13.56 $ 11.74
$ 17.05 $ 14.75
$ 19.37 $ 16.76
$ 14.42
New whole grain pizza volume estimate, Year 1 - Penetration 5%
Non-Customers Customers Source
Trial Purchase Intent
Definitely would buy 15% 26% Exhibit 7
% of "Definites" who actually buy 80% 80% Exhibit 5
"Definite" Purchases 12.00% 20.80%
Probably would buy 39% 53% Exhibit 7
% of "Probables" who actually buy 30% 30% Exhibit 5
"Probable" Purchases 11.70% 15.90%

Trial Rate (Definite + Probable) 23.70% 36.70%

Marketing Plan Adjustment (same budget)

Penetration, % of target households 95% 5% Table B
Projected Consumer Awareness 12% 50% Table B
All Commodity Volume distribution (ACV) 40% 40% Table B

Marketing Adjusted Trial Rate 1.08% 0.37%

Trial Rate x Awareness x ACV
Target Households (MM) 58.8 58.8
Trail Households (MM) 0.64 0.22
Total Trial Households (MM) 0.85
 Source
Repeat Purchase Inputs
Trial Households (MM) 0.85
Repeat Purchase Occasions 2 Table B

Repeat Rate, by Product Scenario

Mediocre Product 21%
Average Product 37%
Excellent Product 49%

Repeat Purchase, by Product Scenario (MM)

Mediocre Product 0.36
Average Product 0.63
Excellent Product 0.83

Total Purchase, by Product Scenario (MM)

Mediocre Product 1.21
Average Product 1.48
Excellent Product 1.69

Retail selling price $ 12.38 Table B

Retail sales volume, by Product Scenario (MM)
Mediocre Product $ 14.96
Average Product $ 18.34
Excellent Product $ 20.87

Retailer gross margin 35% Case text

TruEarth sales volume, by Product Scenario (MM)
Mediocre Product $ 9.73
Average Product $ 11.92
Excellent Product $ 13.56
New whole grain pizza volume estimate, Year 1 - Penetration 11%
Non-Customers Customers Source
Trial Purchase Intent
Definitely would buy 15% 26% Exhibit 7
% of "Definites" who actually buy 80% 80% Exhibit 5
"Definite" Purchases 12.00% 20.80%
Probably would buy 39% 53% Exhibit 7
% of "Probables" who actually buy 30% 30% Exhibit 5
"Probable" Purchases 11.70% 15.90%

Trial Rate (Definite + Probable) 23.70% 36.70%

Marketing Plan Adjustment (same budget)

Penetration, % of target households 89% 11% Table B
Projected Consumer Awareness 12% 50% Table B
All Commodity Volume distribution (ACV) 40% 40% Table B

Marketing Adjusted Trial Rate 1.01% 0.81%

Trial Rate x Awareness x ACV
Target Households (MM) 58.8 58.8
Trail Households (MM) 0.60 0.47
Total Trial Households (MM) 1.07
 Source
Repeat Purchase Inputs
Total Trial Households (MM) 1.07
Repeat Purchase Occasions 2 Table B

Repeat Rate, by Product Scenario

Mediocre Product 21%
Average Product 37%
Excellent Product 49%

Repeat Purchase, by Product Scenario (MM)

Mediocre Product 0.45
Average Product 0.79
Excellent Product 1.05

Total Purchase, by Product Scenario (MM)

Mediocre Product 1.52
Average Product 1.86
Excellent Product 2.12

Retail selling price $ 12.38 Table B

Retail sales volume, by Product Scenario (MM)
Mediocre Product $ 18.81
Average Product $ 23.05
Excellent Product $ 26.23

Retailer gross margin 35% Case text

TruEarth sales volume, by Product Scenario (MM)
Mediocre Product $ 12.23
Average Product $ 14.98
Excellent Product $ 17.05
New whole grain pizza volume estimate, Year 1 - Penetration 15%
Non-Customers Customers Source
Trial Purchase Intent
Definitely would buy 15% 26% Exhibit 7
% of "Definites" who actually buy 80% 80% Exhibit 5
"Definite" Purchases 12.00% 20.80%
Probably would buy 39% 53% Exhibit 7
% of "Probables" who actually buy 30% 30% Exhibit 5
"Probable" Purchases 11.70% 15.90%

Trial Rate (Definite + Probable) 23.70% 36.70%

Marketing Plan Adjustment (same budget)

Penetration, % of target households 85% 15% Table B
Projected Consumer Awareness 12% 50% Table B
All Commodity Volume distribution (ACV) 40% 40% Table B

Marketing Adjusted Trial Rate 0.97% 1.10%

Trial Rate x Awareness x ACV
Target Households (MM) 58.8 58.8
Trail Households (MM) 0.57 0.65
Total Trial Households (MM) 1.22
 Source
Repeat Purchase Inputs
Trial Households (MM) 1.22
Repeat Purchase Occasions 2 Table B

Repeat Rate, by Product Scenario

Mediocre Product 21%
Average Product 37%
Excellent Product 49%

Repeat Purchase, by Product Scenario (MM)

Mediocre Product 0.51
Average Product 0.90
Excellent Product 1.19

Total Purchase, by Product Scenario (MM)

Mediocre Product 1.73
Average Product 2.12
Excellent Product 2.41

Retail selling price $ 12.38 Table B

Retail sales volume, by Product Scenario (MM)
Mediocre Product $ 21.38
Average Product $ 26.19
Excellent Product $ 29.81

Retailer gross margin 35% Case text

TruEarth sales volume, by Product Scenario (MM)
Mediocre Product $ 13.89
Average Product $ 17.03
Excellent Product $ 19.37

SWOT
Analysis
Opportunities (O)
- Growing niche market of healthy and high
quality foods;
- Highly potential market.
- Growing health concern about "bad"
carbohydrates;
- Customer penetration;
- Become the first one to introduce
refrigerated whole grain pizza.
Threats (T)
- Whole grain pizza is not a new idea;
- High threat from direct competitor;
- High threat from major restaurant chains
(Papa John's and Pizza Hut);
- High threat of substitute pizza product
(low cost frozen pizza) from big players
(Kraft and Nestle);
- Medium threat from new entrants.
Strengths (S)
- Healthy and customizable pizza;
- Brand image in healthy foods resulting
from Cucina Fresca's success;
- Ready-to-use packaging equipment and
distribution infrastructure.
SO implication
- Launch the whole grain pizza product line
to capture the opportunities of growing
demand for healthy and customizable pizza,
and make use pasta customer base;
- Take advantage of brand image to increase
customer's willingness to try.
ST implication
- Launch the new pizza to leverage brand
image, making it harder for direct
competitor and new entrants to compete;
- Continue to invest on R&D to improve and
develop products;
- Focus on customizable benefit of
refrigerated pizza to avoid benchmark.
 Weaknesses (W)
- High price for high quality products;
- Whole grain crust is less tasty than
traditional crust;
- Fresh products have short expiration
period.

WO implication
- Lower price and/or increase the quality;
- Invest on advertising to raise awareness of
"bad" carbohydrates, emphasize the high
quality and heathy ingredients, and focus
more on convenient feature to attract more
customers;
- Focus more on established customer base
because they have high brand awareness and
lower price-sensitivity.

WT implication
- Lower price and/or increase the quality;
- Invest on advertising to raise awareness of
"bad" carbohydrates, emphasize the high
quality and heathy ingredients, and focus
more on convenient benefit of refrigerated
products to attract more customers and
avoid benchmark;
 Climate
Opportunity
- Growing niche market of healthy
and high quality foods;
- Growing trend of "Home meal
replacements";
- Highly potential Refrigerated
pizza market ($5.8B).
Threat
- Whole grain pizza is not a new
idea like fresh pasta with whole
grain option;
Company
Strength
- Four-step process for R&D;
- Whole grain products are tastier
than most competitors' whole grain
products;
- Brand commitment in healthy
foods;
- Ready packaging equipment and
distribution infrastructure.
Weakness
- Market research has potential risk
of inaccuracy.
- High price for high quality
products;
- Whole grain crust is less tasty than
traditional crust;
- Fresh products have short
expiration period.
 Collaborators
Opportunity
- Establish close relationship with
suppliers to lower price and
maintain quality consistency.
Threat
- Medium bargaining power from
one supplier of wheat;
- Low bargaining power from other
suppliers of high quality
ingredients;
- Low risk of inaccurate results
from market research firm
(Nielsen).
Customers
Opportunity
- Introduce healthy ready-made /
semi-made products due to an
increase in disposal income and
"time poverty";
- Cucina Fresca's customer base
penetration;
- Lower price-sensitivity due to
growing health concerns and high-
quality perception;
- Offer premium price to
established customer base.
Threat
- Saturated substitute products
make it harder to introduce high
price products to new customers;
- Taste is still a significant factor
that affects buying decision.
Competitors
Opportunity
- Become the first one to introduce
refrigerated whole grain pizza.
Threat
- High threat of direct competition
from Rigazzi;
- High threat of the same product
from major restaurant chains (Papa
John's and Pizza Hut);
- High threat of substitute pizza
product (low cost frozen pizza)
from big players (Kraft and Nestle);
- Medium threat from new entrants.
 TruEarth Healthy foods

Total market 58800000 Target Market

Scenario 1 Scenario 2
Segments
Cucina Fresca 5% of target mark 2940000 11% of target market
non customers 95% of target mar 55860000 89% of target market

Awareness
Cucina customers 50% 1470000 50%
non-customers 12% 6703200 12%

Available
Market
Access

All
Commodity
value(ACV) 40% 40%
Cucina Customers 588000
non customer 2681280

Puchasers

Definitely
would
buy(80%
actually buy) 80% 80%
Cucina customers 26% 122304 26%
non customers 15% 321753.6 15%

Probably
would
buy(30%
actually buy) 30% 30%
Cucina customers 53% 93492 53%
non customers 39% 313709.76 39%

Overall
Purchasers(
Households) 851259.36
Trial Rate 26.03813%
Purchases

Units
sold(1st
purchase) 1.25 1.25
Repeat purchase
repurchasers 49% 0.6125 49%
occasions 2 2

Spending per purchase 12.38 12.38

Sales in dollars 26083012.42

Wholesale sales with ret 0.65 16953958.073 0.65
 Scenario 3

6468000 15% of target market 8820000

52332000 85% of target market 49980000

3234000 50% 4410000

6279840 12% 5997600

40%
1293600 1764000
2511936 2399040

80%
269068.8 26% 366912
301432.32 15% 287884.8

30%
205682.4 53% 280476
293896.512 39% 280687.68

1070080.032 1215960.48
28.1190358% 29.20847%
 1.25

49%
2

12.38

32787787.22 37257637.09
0.65 24217464.11