¶ … Harvard Brief Cases called TruEarth Healthy Foods - Market research a New Product Introduction...case # 4065 Two parts assignment (A & B) Part A. One paragraph background/situation Part B: Please address case questions attached find a copy excel spreadsheet guideline "hint" determining demand levels. TruEarth Healthy Foods -- Market research for a new product introduction

TruEarth was established in 1993 in St. Louis, Missouri as the provider of gourmet pastas and sauces, made from higher quality ingredients. The products were launched under the Cucina Fresca brand name and they have attracted significant customer satisfaction. Throughout the past recent year, the company had been engaging its efforts in the creation of a new product line, namely the whole fresh pizza. The launch of the new product is now being assessed, in a context of massive investments and sales decreases in pasta and sauces product lines.

The initial success of the Cucina Fresca pasta had resulted from the creation of products from higher quality ingredients, which were not only tastier, but also healthier for the buyers. This success then was attained in the overall context of changing customer demands and the company's triumph was due to its ability to adapt to the changing market features.

The pastas were as such launched in a time when there was opportunity for growth in the healthy foods sector. Today, this opportunity still exists, yet it is more decreased, since the number of industry players has increased and the competition has intensified. Last, at the level of product...

An important element to assess in the decision of whether or not to launch the pizza product line is represented by the construction of an estimate regarding the sales of pizza. In this sense, the following table is notable:
Trial purchase intent

Total (300)

Non-customers (225)

TruEarth customers (75)

Definitely would buy

18%

15%

26%

Probably would buy

43%

39%

53%

Top two box

60%

54%

79%

Mean likability

3.7

3.5

4.2

Purchase assumptions

Units per purchase

1.25

Average spent per purchase

$12.38

Repeat purchase occasions

2.0

% repurchase

49%

3. In terms of the pizza they intend to launch, an evaluation of the market is necessary in order to better understand the means in which the customers would respond to the new TruEarth product line. In such a setting, the data collected and centralized in table 6 indicates the following customer reactions:

They enjoy pizza as a family meal that is easily accessible

The quality of the takeout pizza is increased comparative to the frozen pizza

TruEarth's pizza would…