Case Analysis

TrueEarth
Healthy
Foods
Submitted by:
Akshay Sagar
Pratik Nilay Minj
Satish Pradhan
Nikhil Funde
Arpit Raikwar
Abhishek Chaudhuri

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Introduction
TruEarth is an Entrepreneurial venture of Gareth DeRosa started in 1993.
TruEarth aimed to be Pioneers in Healthy, Quality & Tasty pastas, with
Innovative Free Will & Entrepreneurial spirit as the guiding principles of the
firm. The success of the organization can be deduced from its most popular
and effective product line:
Cuchina Fresca launched in 2006
Targeting the Healthy Home Meal Replacement
Consumers had choices of pastas & Meal for 2
Market: $4.4 Billion

Cuchinas Success
The product was a hit with the consumers as soon as it hit the market.
Cuchina was the healthiest and tastiest option available per the consumers.
Most healthy options didnt taste well and vice versa. They had the 1st Mover
advantage in this segment as they had tapped an unrecognized demand and
it really appealed to the consumers. The consumers loved the chance to be
involved in making a healthy and tasty meal without significant effort.

2007

5.8

4.4

Id e a

Market in $ Bn
Cucina Fresca
Pizza

G e n e ra tio n

Pizza vs Pasta: The opportunity

The Pizza launch is a great idea as the brand equity of TruEarth will provide a
great boost to the new product to be accepted. The idea is like Cuchina when
it was launched as it is trying to tap into health meals segment and has
come up from innovation and research. The differences in the situation are
that Cuchina did not have the brand equity to make aThreat
strong by
base
whereas
competitor.
Tapping
HMR market
there is a very
strongquick
base available
for the Healthy Pizza due to Cuchinas
pizza
market
+ Health
success. Moreover,
the rising
healthyneed
pasta for
catered to Large
the Meal
segment
whereas
with the
the Pizza would behealthy
more inclined
towards
Indulgence.
The
perceived
price
trend
options
value gap is also going to work in the Pizzas favour.

Concept
S c re e n in g

Cucina
Fresca

D e v e lo p m e n t Formal Surveys
& Product
Te s tin g Development Process
Q u a n tifi c a tio n
V o lu m e

Convenience & Variety

Focus groups, Taste tests
o f Customer Awareness &
Interest
Estd Sales reqd : $14
million

Whole Grain
Pizza

Concept Tests , Mall

intercepts, Interviews

Home trial through sample

kits and taste tests
Customer Interest &
Quantification of estimated
sales and repeat sales
Estd Sales reqd : $12
million

Forecast
Parameter

Pasta

Existing
Customer

New
Customer

Target HH
Definite buy
Probably buy
Awareness
ACV
Repeat Purchase
% Repeat
Purchase
Price per unit

45.2
27%
49%
17%
50%
2.1
49%

58.8 * 11%
26%
53%
50%
40%
2.0
49%

58.8 * 11%
15%
39%
12%
40%
2.0
49%

5.75 + 4.5
= 10.25

8 + (1.25 * 3.5)
= 12.375

8 + (1.25 * 3.5)
= 12.375

Parameter

Worst Case

Mean Case

Best Case

Penetration rate
Repeat rate
Trial Volume
(MM)
Repeat Volume
(MM)
Total volume
Unit Price
Revenue (Retail)
Revenue
(Wholesale)

45.2
21%
0.85

58.8 * 11%
37%
1.07

58.8 * 11%
49%
1.22

0.57

1.27

1.91

1.42
$12.38
$17.61 Mn
$11.45 Mn

2.34
$12.38
$28.92 Mn
$18.80 Mn

3.12
$12.38
$38.64 Mn
$25.12 Mn

Exhibit 6 Inference
Pizza enjoys the image of a convenient meal option that is wholesome for the
family, doesnt take much time and everyone enjoys it.
Exhibit 6 shows us that people are inclined towards TruEarth Pizza because
they believe it is a healthy and much better option than a frozen pizza in
terms of quality of ingredients and taste.
There is a 17% change in the way people consume pizza when TruEarth will
be introduced and that is a very good figure to start with.

Pizza vs Pasta: Test results

Fresh, healthy & Tasty is the value proposition offered by TruEarth for both
its products.
For pasta consumers prefer whole grain healthy option over a appetizing
look, whereas its the other way round for pizza.In terms of ease of
preparation, Pasta takes the lead in terms of convenience whereas Pizza
serves as a whole meal.
The TruEarth brand name has a lot of expectations attached with it be it any
product.
In terms of cons, Pasta lags because of limited number of options available,
whereas Pizza lags due to price point.

1st Mover advantage in Pizza?

There is a big opportunity waiting with this launch. We will surely get a first
movers advantage like pasta. Consumers love Pizza and would love the
chance for it to be healthy and tasty. Building on our legacy we can present a
product that is serving a need an an indulgence at the same time.

Interest in Pizza
Consumers love the taste of Pizza and enjoy the convenience that comes
with eating it. Teir main concern is is it healthy? People perceive Pizza at
eateries as an indulgence and have the Unhealthy tag at the back of their
minds and for frozen pizza it is more of a lack of option scenario than taste.
The research shows that a large majority of people are ready to spend over
10$ for a better healthier pizza.

Should we launch the Pizza?

Based on the analysis of the presented survey, we would suggest that the
Pizza should be launched, but with minor changes. We already have the
brand equity to encash from and people are expecting a good product when
we launch one.
We can try and add in crust options or other customizations and increase the
prize a little as the consumers want Taste & Health.