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Truearth Case Analysis

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TruEarth Healthy Foods: Market Research for a New Product Introduction
Case Analyses: * Isabel Eckstein the brand manager had let the introduction of the most successful product of the company (Pasta Kit) in 2006 which means that she has a very strong marketing background. * Competitors began offering similar products in 2008 which cause the growth to slow. * Some of their competitors are Nestle and Kraft. * The do not make a rash decision. The success of Cucina Fresca was a calculated risk based on significant research. * The company only uses high-quality durum wheat and mostly organic ingredients. * The company further raised consumer awareness through several promotional programs, using coupons, magazine …show more content…

Also, pizza is a core component of the Italian-American food category that we cannot ignore because it is frequently purchased by customers on a monthly basis. Our whole grain pizza product resolves the time- and health-related concerns of American consumers in one of their favorite dishes (see Exhibit 1: SWOT Analysis for Whole Grain Pizza Product). The growing demand for a whole grain crust has been addressed by local pizzerias and take-out franchises, but not in the store-bought refrigerated pizza market. The immediate release of the pizza kit would allow us to penetrate this market before Rigazzi and benefit from first mover advantages. As a result, our 1st year wholesale volume estimates would exceed our return requirements by approximately $4.5 million (see Exhibit 2: Whole Grain Pizza Concept Purchase Volume Estimate, Year 1 [Excellent]). The excess returns can be reinvested into the firm and used to expand our manufacturing facilities or further extend our product line. If the pizza kit is launched, the firm must consider the potential consequences. We must assess the impact it will have on Cucina Fresca’s success and production, as well as the TruEarth image if the product flops (see Exhibit 1: SWOT Analysis for Whole Grain Pizza Product). Likewise, we must review the potential consequences if the wholesale volume estimate is calculated using the percentage repurchases when the product is perceived to be of mediocre or average quality (see Exhibit

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