Contents
1. EXECUTIVE SUMMARY 1
2. INTRODUCTION 2
2.1 MARKET RESEARCH TERMINOLOGY DEFINITION 2
2.2 IMPORTANCE OF MARKET RESEARCH 2
2.3 TRUEARTH PROFILE 3
3. MARKET OPPORTUNITY 3
4.PRODUCT DEVELOPNMENT 5
5. FORECASTING PIZZA SALES 6
5.1. STEP 1/ESTIMATE THE TRIAL VOLUME 6
5.2: STEP 2/ESTIMATE THE REPEAT PURCHASE VOLUME 7
5.3: STEP 3/ESTIMATE THE TOTAL PURCHASE VOLUME 8
6. CONSUMERS’ VIEW OF REFRIGERATED PIZZA COMPARED TO OTHER SUBSTITUTES 9
6.1 IMPACT OF TRUEARTH PIZZA ON OTHER CHOICES 10
7. COMPARISON BETWEEN PIZZA AND PASTA CONCEPT TEST RESULTS 11
8. IS THERE A FIRST-MOVER ADVANTAGE IN PIZZA SIMILAR TO FRESH PASTA? 12
9. IN-HOME PIZZA TEST RESULTS 14
10. TO LAUNCH PIZZA OR NOT? 15
11. CONCLUSION 16
12. APPENDIX 16
12.1
By putting huge afford in packaging TruErth could beat it’s competitors Kraft & Nestle in increasing its annual sale to 4.1 B by 2004.
3RD TREND: WHOLE GRAIN FOODS/EARLY 2000S
Finally, consumers became more aware of the importance of whole grains in the diet and started to avoid “bad Carbohydrate” originated from refined, white flour.
TruErath took the advantage of the absence of competition and got the benefit from being the first mover in the market by keeping track of the above mentioned market trends. Therefore, TruEarth benefited from the above opportunities and launched fresh whole grain pasta, Cucina Fresca. This new product was successful with sales that reached $23 million, making it the most profitable product launched in the company history.
Nevertheless, growth had slowed as a new competitor, Rigazzi Brands, started entering the market offering similar products. Therefore, TruEarth responded by studying launching a new product, whole grain pizza. Pizzas were a core component of the Italian-American food category, with annual sales in the United States at $53 billion in 2007. Also, 77% of consumers ate pizza at least once a month. In addition, store-bought refrigerated market pizza totaled $5.8 billion making it larger than refrigerated pasta which was $4.4 billion. Besides, 33% of consumers showed strong interest in a whole grain crust. Therefore, TruEarth found new opportunities for introducing to customer healthier still tasty pizza.