Harvard Brief Cases Called Truearth Healthy Foods

¶ … 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 development, it is notable that the pasta producing is more efficient, due to the nature of the products, whereas the pizza making process is more difficult and complex. 2. 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 be of a medium quality and customer reaction, below the customer preference for takeout pizza, but better perceived than the frozen pizza. In such a setting, it is notable that the whole grain pizza could be a successful competitor in the field of frozen pizza. 4.

The Cucian Fresc pasta are well established products, that have already gained the trust of customers, and their sale projections are superior to those of the pizza products, which are new items and have yet to establish themselves within the market and generate customer trust and demand. There is as such an increased likability for the customers and non-customers to purchase the pasta products, rather than the pizza. In terms of the attributes of the two product categories, these are generically similar.

Pasta products are mostly appreciated for their freshness, easiness to prepare, the company's brand name and the primary concern is related to the limited selection of the items. In the case of the pizza products, the main positive attributes are represented by freshness, ease of access for purchase and the company's brand name. The primary shortage is revealed at the level of costs, meaning that the price could be a barrier in the purchase decision of buyers. 5. TruEarth's introduction of the whole.