R ECOMMENDATION

Conditionally launch Cucina Fresca Pizza Veloce and Separates, after mitigating risks affecting current strategy

A GENDA

Overview of the Company Market Research Competition Target Market Definition Alternatives and Recommendations

Implementation and the Future

O VERVIEW

Founded in 1993 by Gareth DeRosa Offered healthy pasta and sauces Launched wholegrain pasta, Cucina Fresca, in 2006 Considering expansion into the refrigerated pizza market

Facilities and resources already in place to support potential initiative

PASTA V. P IZZA C ORE E LEMENTS

Pasta First Mover: fresh whole wheat pasta and deluxe sauce Product development informal and intuitive Initial success despite lack of adequate market testing or business plan Pizza New opportunity in existing pizza market whole wheat crust with deluxe sauce Current market research is insufficient Bias against health image of pizza Incomplete business plan; infrastructure investments are already in place

I NADEQUACIES IN MARKET
RESEARCH

Survey questions incomplete Sample size is too small 300 interviewed, 168 taste tests Ill-defined survey sample

Had target market not yet been defined?

C USTOMER P ROFILES
Jenny - Gourmet Customer

23 years old
Young professional Health conscious Enjoys premium products Happy she can eat pizza again

C USTOMER P ROFILES
Cheryl Supermarket Customer

42 year old mother Health conscious Wants to make a meal everyone can enjoy Wants to feel as though she is making a home cooked meal

Price sensitive

C USTOMER P ROFILES
Paul - Not Our Customer

35 year old male Doesnt believe in taste of wholegrain Likes the taste of take-out

Not our target market

C OMPETITION

Take-out and frozen pizza Alternative refrigerated meals Rigazzi Kraft and Nestl

A LTERNATIVES
Decisions

Criteria

Go as is Conditional go No go No go, but expand pasta geographically

Alignment with strategy Ease of implementation Fit with customer needs/wants

Risk
Profitability

S ENSITIVITY A NALYSIS
Market Penetration
Mediocre 21% 5% 10% $4,939,200.00 Average 37% $8,702,400.00 Excellent 49% $11,524,800.00 $23,049,600.00 $34,574,400.00

$9,878,400.00 $17,404,800.00

15% $14,817,600.00 $26,107,200.00

Therefore, do not go with Plan A: launching product as is

R ECOMMENDATION

Conditionally launch Cucina Fresca Pizza Veloce and Separates, after mitigating risks affecting current strategy

R ISK

Time

Another competitor can enter and saturate market Lose first mover advantage

Financial

Infrastructure is already in place for pizza Companys pasta line will no longer be sustainable

Brand Image

Ensure pizza launch fits with company image Must taste good or will erode pasta line

S TRATEGY G OURMET

Launch Cucina Fresca Pizza Volace Separates

Sauce and crust together

Sell separate toppings for the refined palette. Examples:

Arugula Shitake mushrooms Spinach & cheese

Prices

Base kit: between $5.00 $6.00 Toppings: vary according to ingredients

S TRATEGY S UPERMARKETS

Launch Cucina Fresca Pizza Volace

Crust and sauce only

Listed recommendation on package for suggested toppings Price

Between $4.00 $5.00

I MPLEMENTATION
Inbound Logistics Marketing and Sales Customer Service

Operations

Outbound Logistics

Use existing infrastructure; Source ingredients for pizza

Small incremental retooling expense; Training; Product knowledge of whole grain

New packaging; Satisfactory shelf life; Gourmet Stores: Aligns with strategy Supermarkets Complementary products Increased sales

Free samples; Coupons; Innovative packaging; Lower price than initially planned

Monitor topping preferences; Conduct customer service surveys regularly

M ARKETING

P ROMOTION

Coupons

$0.50 in-store Additional savings inside Cucina Fresca pasta

In-store samples
Explore venues for publicity

Home magazines In-store advertising Etc.

T IMELINE

6 months Market research

If positive, plan for pizza launch

1 year Promote and launch product 1.5 years Monitor product success; experiment with new offerings 2 years Consider expanding geographically

P OTENTIAL L ONG -T ERM S URVIVAL I DEAS

Expand pasta and pizza lines geographically, rather than add new product line(s) Enhance pizza topping offerings

Experiment

60% / 100% whole grain crust Deep dish Thin crust

Q UESTIONS ?

S UPPLEMENTARY D ECISION M ATRIX

S UPPLEMENTARY

As per surveys, 13% care about the crust (people in favour of the crust) but this also gives the ability to customize and 35% said that it was about sauce and crust Sauce is a competency

S UPPLEMENTARY S ENSITIVITY A NALYSIS