2015 Tru-Earth AJ2 ADITI CHAKRABORTY ASIM MAHESHWARI KISHORE GAURAV PARESH SHRIVASTAVA SHIVANG AGARWAL

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2015

AJ2

Aditi Chakraborty Asim maheshwari Kishore gaurav Paresh Shrivastava Shivang agarwal

TruEarth Healthy Food

Tru Earth launched in 1993 in Missouri by Gareth Derosa. He sourced high quality durum wheat from North Dakota & was selective about the sauces.

60% and 100% whole grain pasta in its line. The company had built a regional loyal following by 1998.

Cucina Fresca Pasta

• Launched in 2006

• Tapped the growing demand for healthy HMR efficiently

• Only one strong competitor

• Choices of pasta & sauces

• Single meal for 2

• $35 million sales - 2007

Why did Cucina Fresca succeed?

• First Mover Advantage

• No strong player

• Unmet demand

• Healthier and tastier than competitors

• Quick, easy instructions, proper proportions, and suggested add-ons

• Aggressive competition to Rigazzi

Three major Trends :-

1. HMR – “Home Meal Replacement”

a) Fully prepare b) Semi prepared

2. Refrigerated Fresh pasta

3. Whole grain awareness & avoiding “Bad Carbohydrates”

Pasta

Market-$4.4 billion in 2007

Launched as a new brand – Cucina Fresca

Is considered as a MEAL

Perceived price value gap was lesser

Pizza

Market-$5.8 billion in 2007

Brand awareness already created due to Cucina Fresca

Is considered as an INDULGENCE

Perceived price value gap was higher

Market Opportunity for PASTA versus PIZZA

STAGES For Pasta For Pizza

Idea Generation Tapping the quick HMR market , need for healthy tasty whole grain options

Threat by competition in pasta segment, large pizza market, health trend

Concept Screening Formal surveys like mall intercepts

Concept tests, Mall intercepts, interviews of “grocery shopper”

Product Development and Testing Convenience and Variety and Testing through Focus Groups without actual taste tests

Home Trial through sample kits and taste tests.

Quantification of Volume Customer Awareness & Interest.

Estimated sales required: $14 million

Customer interest and quantification of estimated sales and repeat sales. Estimated sales required - $12 million

Solution

Mediocre Product Average Product Excellent Product 0

Total Revenue in Millions Wholesale

Mediocre Product Average Product Excellent Product 0

Total Revenue in Millions Retail

Based on the data in the case study and the mathematical projections, we could launch

the product. The product has above average acceptance rates based on the test results. With an

average product launch the company will gross in wholesales sales $2.5M more then is needed

to meet the $12M capitol return requirement by the company.

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