1111 WordsNov 10th, 20105 Pages
TruEarth Healthy Foods:
Fresh Whole Grain Pizza
TO LAUNCH or NOT TO LAUNCH?
TruEarth, maker of gourmet pastas, sauces and meal faced the moment of TRUTH. Identifying the market trend, customers’ needs and wants via extensive market research and recognizing the plan to launch new product line of fresh whole grain pizza by Rigazzi, one of its direct competitors, TruEarth is at the point of making a critical business decision. “TO LAUNCH or NOT TO LAUNCH?” That is the question. 1. Consumer Views On Pizza
Despite some differences between different product categories, namely takeout, refrigerated and TruEarth pizzas, consumers generally consider pizza as a family treat which they can conveniently access and easily…show more content…
While 76% of the survey participants favoured the TruEarth’s pasta concept, only 60% favoured its pizza concept, suggesting less attractive market entry opportunity for pizza. In addition, the whole grain feature of the TruEarth’s products, which is its proposed customer value, is by far less favoured in the pizza concept test, suggesting ‘healthier concept’ in terms of ingredients is less likely to be the trigger amongst the pizza consumers. The TruEarth brand name is also less favoured and the price competitiveness dropped by half in the pizza concept test, suggesting there are well-recognized direct/indirect competitors in the consumer pizza market both for quality and value for money. The price sensitivity of the consumer pizza market is re-emphasized in the ‘DISLIKE’ attribute. The total percentage of participants perceiving TruEarth pizza being ‘too expensive’ more than tripled compared to that of the pasta’s and even those who favoured the product felt TruEarth pizzas are highly priced. This implies that pizza consumers are very much accustomed to value-for-money proposition than quality. In conclusion, the pizza concept test results indicate a higher price sensitivity and more intense competitive environment for pizza in sharp comparison with pasta, which illustrates less favourable market situation for TruEarth.
3. First-mover Advantage In The Pizza Market
When TruEarth launched its whole grain fresh pasta products, there was an undiscovered market
Case | HBS Case Collection | December 2009
TruEarth Healthy Foods: Market Research for a New Product Introduction
by V. Kasturi Rangan and Sunru Yong
Topics covered include: consumer marketing, market research, new product introduction, and quantitative analysis. TruEarth Healthy Foods, a maker of gourmet pastas, sauces, and meals, wants to build on its successful introduction of fresh whole grain pasta by introducing a similar product concept for pizza. In an increasingly competitive market, TruEarth is focused on beating its competition and wants to act quickly and decisively. The company conducts extensive market research, first using focus groups to test the concept and then following up with take-home trials. Acting as brand managers, students must complete a quantitative analysis of the available data to project the sales volume for pizza and then decide whether to bring the new product to market.
Keywords: Market research; Consumer marketing; Brands; Food; Marketing Strategy; Consumer Behavior; Forecasting and Prediction; Product Launch; Brands and Branding; Retail Industry; Food and Beverage Industry;