Would You Launch the Refrigerated Pizza Kit? Is the Decision Financially Viable? Be Sure to Consider the Pros and Cons of Both Sides of the Decision

Would you launch the refrigerated pizza kit? Is the decision financially viable? Be sure to consider the pros and cons of both sides of the decision (to launch and not to launch).

The refrigerated pizza kit should be launched immediately as well as marketed competitively however the price of the kit should be revisited. According to the results of research done by TruEarth (see Exhibit 1), the company is expected to have a sales volume of $17 million beyond the 35% gross margin. Comparing this figure to the estimated sales market for Cucina Fresca of at least $14 million, TruEarth has an opportunity to make up to 21% ((17-14)/14) more with the refrigerated pizza kit sales. Furthermore, the research findings also indicate a 37% and a 24% trail rate for the customers and non-customers respectively. The high awareness of the pizza product within the customer base as well as the larger market (30% bigger) puts the total trail households at 1.1(see Exhibit 1). In addition, when the figure is multiplied by the estimated 49% repurchasers of the excellent product and the 2 repeat purchase occasion, it brings our total purchases to 2.1. Consequently, this data being consistent with the Cucina Fresca results proves that the refrigerated pizza kit is financially viable and will be successful.

Moreover, the product development process for the refrigerated pizza kit (see Exhibit 2) shows the thorough steps taken by the research and development team to result in a positive outcome. The idea was generated when the opportunity to prepare something fresher and healthier ascended through ideas such as major chains offering whole grain crust. The survey administered for the concept testing process resulted in 33 % of people showing interest in whole grain pizza crust. For the product development and testing process, the team developed a specific prototype and conducted 300 mall interviews with positive results. For the final quantification of volume process, BASES

...