Strategic management: TruEarth Pizza

1
Strategic managementTruEarth Pizza

• E.T.
• Andreyeva Olga
• Bokareva Vika
• Kulikov Fedor
• Kadrev Vladimir

2
To launch or not to launch?
Launch!
3
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).

4
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.

5
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)

6
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.
• Companys own network of shops and restaurants.

7
New Product Marketing Plan

• Wholesale volumes need to exceed 12 million to
  meet the companys return requirements
• Marketing-adjusted Trial Rate0,01767
• Trial householders1,0389
• To reach 12M we need 970K sold units.

8
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
9
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)

10
Volume Projections

• To meet the companys return requirements, we
  need to sell 970K in volume
• Expected sales among trial households equal
  1039K
• Quality growth is a priority.

11
Final decision

• Launch!
• Expected sales 1039K units.
• But pay attention to
• Quality
• Price level
• HMR niche.

12
TruEarth Pay not just for pizza, pay for health