Case Paper for Truearth Essay Example
Case Paper for Truearth Essay Example

Case Paper for Truearth Essay Example

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  • Pages: 4 (936 words)
  • Published: April 10, 2017
  • Type: Case Study
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Summary:

It is crucial to maintain a competitive advantage in any business through continuous innovation and diversification.

TruEarth Healthy Foods, a producer of gourmet Italian meals made from 100% whole grains, initially experienced success with their Cucina Fresco pasta. However, they noticed a decline in their market share due to competition from similar products offered by other companies. In response, TruEarth decided to introduce whole grain pizza as a strategic move. Research showed that industry leaders like Kraft and Nestle had already introduced whole grain pizza, but TruEarth believed they had the potential to stand out in the market due to their strong brand image and ability to deliver a unique and delicious product. Before taking this calculated risk, TruEarth heavily invested in research and market analysis. Evaluating the situation, the competition posed a risk, but TruEarth

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saw an opportunity in the untapped market that valued unique taste and quality over mass-produced processed food. There is a shift towards healthier and higher-quality products that are also cost-effective.

Evaluating the various open alternatives and being innovative leaders is crucial for the success of any business. The answers to some of the organizing and discussion questions include: Why was Cucina fresco pasta successful? How can we compare the pizza opportunity to that for pasta and the actual product development process for each? It is evident that Cucina fresco pasta benefited from being the first mover in the market. TruEarth planned their marketing and sales strategy meticulously by relying on data obtained from the BASES survey and thorough market research. Success was an informed decision made after conducting significant research, and TruEarth should adopt a similar approach for their pizz

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product.

Despite the fact that competitors like Nestle & Kraft have gained some presence in the pizza market and are experiencing success, Cucina Fresco (TruEarth's) brand image is already established and recognized by customers, adding value and delight from the pasta market. This gives the pizza from the same brand a competitive advantage and should be considered a strength when exploring launch options. TruEarth successfully entered the whole grain pasta market by strategically targeting an untapped segment and offering a tastier pizza compared to others, resulting in great success. Similarly, for their whole grain pizza, they should strive to create a unique and equally delicious taste to outperform existing players in the market and carve out their own domain, capturing a significant share of an untapped segment. The case study utilizes research data to forecast TruEarth's pizza volume. The company estimates volume using a combination of high-level analysis and intuition; however, these projections often differ from actual market performance.

In this case, it is not possible to determine the exact volume. However, we can make inferences from Table B on page 7, which provides estimates of typical awareness and purchase behavior. Cucina's Fresca pasta has approximately 13% penetration, while the BASES study suggests that 11% of the target population tried TruEarth's products last year. Therefore, we can reasonably conclude that the volume forecast for TruEarth Pizza will fall within a realistic range of 5% to 15%. It is understood that sensitivity testing within this range will be necessary for pizza volumes. Is there a first-mover advantage in pizza similar to that in fresh pasta? Certainly! TruEarth is fairly new to the whole grain market, with Nestle and

Kraft not being players in this market. As a result, TruEarth will undoubtedly have a competitive advantage as the first mover and introducing a unique tasting pizza will allow them to capture a niche segment.

Should TruEarth launch the Pizza?

There are several reasons to consider. First, looking at Rigazzi's success, it is clear that TruEarth must act quickly. TruEarth has already demonstrated their capability with pasta and has great potential to do the same with pizza.

Surveys have shown that people enjoy eating pizza if it is healthy, and incorporating whole grains into the recipe will make it highly appealing. Therefore, it is essential to launch the pizza as soon as possible. Time is of the essence.

Additionally, TruEarth has already received a positive response from consumers and has a well-planned marketing strategy in place. It will be crucial to reflect on the lessons learned from this case in terms of business and marketing.

After carefully reading and analyzing the entire case, it becomes evident that taking advantage of being the first mover is crucial. The case teaches valuable lessons on implementing research and development processes, including idea generation, concept screening, product development and testing, and quantification of volume. Additionally, the case highlights the importance of market forecasting methodology, which involves gathering data on consumer response to new product concepts and ensuring they align with marketing plans. Adjustments based on empirical consumer data are then made to accurately predict sales volume for subsequent years.

Recommendations:

  • It is important to note that customers who have already tried the fresh pasta are more likely to be aware of the pizza product. A significant number of these customers (109 out of 168) have

expressed a "favorable" intent to purchase during a home trial. Exhibit 6 Mall intercept data reveals that consumers perceive the usage attributes, taste attributes, and quality attributes of our pizza to be superior to take-out and refrigerated pizzas. It is crucial to be aware of competitors, shifts in trends, and the economy.

  • Therefore, it is recommended to move forward and introduce the pizza product.
  • It is also advised to act swiftly before Rigazzi potentially seizes the market segment and poses a significant threat to the pizza market.
  • Finally, it is important to uphold quality, ensure customer satisfaction, and foster consistent innovation in order to sustain success.
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