Assignment:
TruEarth Healthy Foods, a maker of gourmet pastas, sauces, and meals, wants to build on its successful introduction of fresh whole grain pasta by introducing a similar product concept for pizza. In an increasingly competitive market, TruEarth is focused on beating its competition and wants to act quickly and decisively. The company conducts extensive market research, first using focus groups to test the concept and then following up with take-home trials.
Here is additional information
| TruEarth Healthy Foods -- Sales Volume for Pizza |
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Non-Customers |
Customers |
Source |
| Definitely would buy (%) |
15% |
26% |
Exhibit 7 |
| % of "Definites" who actually buy |
80% |
80% |
Exhibit 5 |
| "Definite" Purchases (%) |
12% |
21% |
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| Probably would buy (%) |
39% |
53% |
Exhibit 7 |
| % of "Probables" who actually buy |
30% |
30% |
Exhibit 5 |
| "Probable" Purchases (%) |
12% |
16% |
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| Trial Rate (%) ("Definite" + "Probable") |
24% |
37% |
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| Target households (MM) |
58.8 |
58.8 |
Table B |
| Penetration, % of target households |
89% |
11% |
Table B |
| Awareness of pizza product (%) |
12% |
50% |
Table B |
| ACV distribution (%) |
40% |
40% |
Table B |
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| Adjusted Trial Households |
0.6 |
0.5 |
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| Total trial households (Non-Customers + Customers) |
1.1 |
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| % of households repurchasing (Excellent) |
49% |
49% |
Table B |
| Repeat purchase occasions |
2 |
2 |
Table B |
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| Total purchases (Trial + Repeat) |
2.1 |
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| Retail selling price |
$12.38 |
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Table B |
| Retail sales volume |
$26.2M |
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| Retailer gross margin |
35% |
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Case text |
| TruEarth sales volume |
$17.0M |
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Q: Why was Cucina Fresca pasta successful?