249561737-TruEarth-Healthy-Foods-Analysis.pdf - Free download as PDF File (.pdf), Text File (.txt). Case Facts: Cucina Fresca (Fresh Pasta and Sauce).
Truearth • 1. Sunil Soni Anish Sharma Anish Yanduri Aditi Upreti Romit Sanghvi Vismay Shah Sanket Kaleshwarwar • Company overview • Founded in 1993 in St. Louis, Missouri by Gareth DeRosa. • Shift in market segment – Quality & Authenticity. • Product line: Standard pastas such spaghetti, rigatoni & shells.
Specialty Pastas with blended ingredients such as artichoke, spinach etc. • One of the First companies to offer 60% & 100% whole grain pastas. • 1998 – Developed loyal regional following, mainstream supermarkets carried TruEarth products. • Product Development Process • Informal & Intuition driven. • Experimenting with new products & “limited edition“ variations on core recipes. • Now, followed a four step process:- 1. Idea Generation.
Concept Screening. Product Development & Testing. Quantification of Volume. • Consumer Trends Three major Trends:- 1. HMR – “Home Meal Replacement” a) Fully prepared b) Semi prepared 2.
Refrigerated Fresh pasta 3. Whole grain awareness & avoiding “Bad Carbohydrates” • Question 1: Why was Cucina Fresca pasta successful? • • Shorter cooking time, Consumer perception of better Quality ( No Unhealthy Carbohydrates). • First Mover advantage. • Variety of choices.
• Right Size of Portions. • Simple instructions for cooking, along with best sauce options. • Convenience & “ Feel Good “. • Question 2: How would you compare Pizza opportunity to that of pasta? • Pros • 33% people interest in whole grain pizza crust.
• Major chains offered whole grain crust. • Opportunity to prepare something fresher & healthier. Cons • Indulgence factor. • Major competitors like Nestle & Kraft. • Pizza • 11% of sales i.e.
$5.8 billion (30% bigger) • Incremental investment substantially less • Heavy duty competitors • 33% people with “strong interest” • Less pressure on recovering cost • Revenue from extra topping • Customization of taste Pasta • $4.4 billion market • More investment • First mover advantage • 76% positive purchase intent • More pressure on recovering cost • No topping product • No customization in taste Whole grain Pizza • Question 3: How would you compare the actual product development process for pasta as well as pizza? • Idea Generation Pasta • Market shift away from mass produced,highly processed foods toward greater quality and authenticity. • “Home Meal Replacement” trend started in USA. • Growth of refrigerated fresh pasta. • Awareness of whole grains in the diet.
Pizza • Larger market than pasta. • Pizza demand in key demographics had been hurt by health concerns and people desired less carbohydrates in diets. • 33% of people from survey of restaurant –goers showed a strong interest in whole grain crust. • Lack of gourmet pizza with healthy, whole wheat crust and high quality ingredients. • Concept Screening Pasta • 85% of people in favour of whole grain pasta when approx 300 survey test carried across several cities. • Results indicated 76% positive purchase intent comprising ”definitely” or ”probably”. • At 35% gross margin there was a$14 to$24 million opportunity for TrueEarth at wholesale prices.
Pizza • 33% people had “strong interest” in whole grain crust according to survey. • The store bought pizza market totaled $5.8 billion making it larger market than refrigerated pasta, which was approx $4.4 billion.
• Product development and Testing Pasta • TruEarth test kitchen developed fresh whole grain pasta line dubbed Cusina Fresca with a full range of choices:cut pasta, tortellini and accompanying sauces. • Concept was tested with focus groups which gave positive feedback. • The team then decided to conduct a market study to estimate Fresca’s potential sales volume. Pizza • Developed a pizza concept to test which consisted a basic kit(crust plus separate packet of cheese and sauce) and a line of separate, complementary toppings: 1.3 extra cheeses 2.sliced mushrooms 3.Hormone free chicken sausage-crumbles. • They conducted 300 mall intercept interviews after testing with focus groups.
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