Слайд 1 - Case Club HSE
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Transcript Слайд 1 - Case Club HSE
Strategic management:
TruEarth Pizza
E.T.
Andreyeva Olga
Bokareva Vika
Kulikov Fedor
Kadrev Vladimir
To launch or not to launch?
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).
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.
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”)
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.
Company’s own network of shops and
restaurants.
New Product Marketing Plan
Wholesale volumes need to exceed $12
million to meet the company’s return
requirements;
Marketing-adjusted Trial Rate=0,01767;
Trial householders=1,0389;
To reach $12M we need 970K sold units.
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
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”);
Volume Projections
To meet the company’s return requirements,
we need to sell 970K in volume;
Expected sales among trial households equal
1039K;
Quality growth is a priority.
Final decision
Launch!
Expected sales – 1039K units.
But pay attention to:
Quality;
Price level;
HMR niche.