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TruEarth Healthy Food – Case Case Analysis
Question: Why was Cucina Fresca Pasta successful? How would you compare Pizza opportunity to that of Pasta?
The success of Cucina Fresca brand was largely because of the brave pioneering pi oneering efforts of TruEarth in launching the product before competition. There was an ever increasing demand for quick home meal replacement, refrigerated pasta, and whole grain food options that did not sacrifice taste. The company therefore took the first mover advantage. Further, Cucina Fresca was a quick and easy to cook meal along with variety choices available to consumers. Needless to say it was healthy too as it was made of whole grain pasta. Cucina Fresca came along with cooking instructions and also the best sauce option. Thus, it was a combination of both perfect quality and quantity and far tastier than its competitors. Thus, all these factors led to the success of the Cucina Fresca. The estimated annual sales in the US market were $53 billion in 2007 with 33 % of restaurants-goers exhibiting a strong interest in whole grain crust. However, identifying the correct market for the sale of whole grain pizza, approximating its size as well as its business potential was critical in success ratio. The table below gives the comparison between the two opportunities: PASTA
$4.4 Billion Market. It is considered as a Meal Purchase Intent was as high as 33% It was launched as a new product
PIZZA
Has First Mover Advantage. No topping product No customization in taste More investment
11% sales, i.e. $5.8 Billion Market (about 30 percent bigger) It is considered as an Indulgence Higher “Strong Intent” (76%) Brand awareness established due to Cucina Fresca Perceived price value gap was high Has Heavy duty competitors Customization of taste Incremental investment - substantially less
Question: What difference do you foresee in the actual product development process for pasta and pizza?
The following table shows the difference in the actual product development process for pasta and pizza: STAGES
PASTA
Idea Generation
Seeing the growing demand for The increasing competition in pasta healthy, gourmet products in the segment and large size of the pizza led market, the company wanted to tap to the generation of the idea. the HMR market.
Concept Screening Product Development
Only formal survey like small intercept was done. The product came out with 5 variety and of product and it was convenient for
PIZZA
Concept test, Mall intercept and interview of grocery shoppers IN this case, the company did home trial through sample kits and taste kits
Testing
the consumer. The product testing was done through focus groups without actual tests. Quantification of Customer awareness and interest. Volume Estimated sales required is $14 million Business Analysis More investments needed
and complementary toppings.
Customer interest and quantification of estimated sales and repeat sales. Estimated sales required is $12 million Comparatively less investment is required
Question: Is there a first mover advantage in pizza similar to fresh pasta? Would you launch the pizza?
There is definitely a first mover advantage in pizza similar to fresh pasta. Adopting a similar approach with the whole grain pizza concept and is of the opinion that their established consumer base and brand image will make make for easier market penetration. The following is the consumer response with regard to their purchase decision towards Cucina Fresca.
The following is the consumer response with regard to their purchase decision towards Pizza.
Market Survey : Pizza Top Two box
Probably would buy
Definitely would buy
0%
20%
Indu In dust strry Med ediian
40% Cuci Cu cina na Fr Fres esca ca
60%
80%
On the basis of the market survey and analysis conducted by the company, we would like to recommend that pizza should be launched. However, we would recommend a few minor changes in the product on the basis of the likes and dislikes and feedback received from the consumer. Further, there should be improvement in the product too by developing a better crust. Even if the brand experiences a worst case scenario of 5% penetration, a small increment in the price can be assumed in or der der to meet the required margin. Further, the popular brand image of Cucina Fresca’s will also help in the introduction of the new product.