Treuearth Healthy Foods: Market Research For A New Product Introduction Harvard Case Solution & Analysis

TO: Isabel Eckstein, Brand Manager

FROM: XYZ, Marketing Analyst

DATE: 4-June-2015

SUBJECT MATTER: Whole Grain Pizza Product Introduction in Market

            The competitive position that had been created by Cucina Fresca’s sales revenue over the years in the Italian food category was facing problems and the growth of the company’s sales had declined significantly despite the fact the TruEarth over the years has been enjoying a well established reputation and was positioned as the premium brand within the Italian food category. The brand of the company had been considered different as compared to its competitors because True Earth is the first company that had thought about penetrating the whole grain market.   Therefore, in order to maintain the competitive position of the company and grab away more market share from the competitors to retain the company’s strong hold, the management has planned to launch a new whole grain pizza product and now the management of the company needs to determine whether to launch this product or not. One significant requirement before this product is launched is that its wholesale volume of pizzas must meet a minimum requirement of around $12 million. The launch of this product is must for the company in order to remain competitive and innovative in the market.

Action Recommendations for TruEarth

            The company has two options, which are either to launch the new product or suspend the idea and time is short as one of the competitors of the company, Rigazzi Brands has tested the concept of this new whole grain pizza in the market and is just about to launch it.

Launching Whole Grain Refrigerated Pizza Kit

            First of all, if we consider the option of launching this trend, then the same trends of the consumers would be targeted and the target market would not change. Consumer trends such as whole grain options, refrigerated replacements for home meal and the growing needs of the customers for such customizable meals. Along with this, within the Italian cuisine context, the demand for pizza is impressive and customers frequently purchase pizza each month. According to the recent surveys its has been found that pizza is consumed by around 77% of the people and among the current Healthy foods customers of TruEarth 79% would be likely to buy the whole grain pizza offering. Also the health related concerns of the customers are also resolved through this dish (Refer exhibit 1: SWOT Model).TruEarth Healthy Foods Market Research for a New Product Introduction Case Solution

             The company could create higher customer perceived value by first penetrating the market with this product. Since, the males have the negative perception regarding the whole grain pizza therefore; it should be targeted towards the females. The funds that would be received in excess could then be utilized for new product development or extension of product line or could also be invested in the manufacturing facilities of the company. However, once this product is launched, despite the excess return the impact on the current brand image and the value proposition created by the company will also have to be considered by the management of the company (Refer exhibit 1).

            Furthermore, if we talk about the proposed changes in the marketing mix elements of the new product then, then the whole grain pizza kit would be sold at premium prices of about &9 per pizza in the premium grocery stores. Also, to maintain the premium image of this new product, the company should not do any promotions or offer discounts. Since this product is targeted for the people who want to prepare and eat their desirable meals, therefore, this new product should be placed at the front of the store within the end cap of the refrigerator so that new customers could easily grab its attention. Finally, the purchase of the pizza kits could be promoted by providing potential customers with free samples within the premium stores to try out the new product and experience the taste...............

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