TruEarth Healthy Foods Harvard Case Solution & Analysis

TruEarth Healthy Foods

Market Research for a New Product Information

Solution No.1

Consumer’s tastes and buying preferences have been changing rapidly; hence, people prefer junk food like burgers, pastas and pizzas. To eat this kind of food on a regular basis, one should have suitable buying power. The higher the buying power; the more consumption will take place. Usually in America, demand of pizzas is significant and various people prefer to eat pizzas on a regular basis due to their high buying power. This is one of the greatest opportunities for companies to enter in the market and gain market share.

truearth healthy foods case solution

truearth healthy foods case solution

            Brand manager of TruEarth believed that the success of Cucina Fresca can be the driver of success for pizza, but it will need to revise the strategy based on the results of the research and development along with other estimates. The rapid increase in the dual income households was providing a great opportunity to companies to invest heavily in pizza. Mothers in the households are important decision maker for TruEarth’s Cucina Pizza. They are the vital decision-making force in the household for buying decisions in FMCG products since it comprises of health conscious people and economy.

A key decision maker for TruEarth’s Cucina Pizza is a typical household mother. Mothers are the pre-dominant decision makers in the household for making purchase decisions for food products since it involves consideration of both health and economy. Therefore, TruEarth must consider the customer value elements of these housewives in deciding whether to launch their pizza concept is households made up of dual income working families. Consumption of pizzas depends upon the demand and need of customers because there are various alternatives available for the people to opt subject to their buying power. The biggest advantage for the TruEarth is the popularity of the Cucina Pizza. It was the market leader in manufacturing of ready to cook healthy pizza. Despite this, pricing strategy remains a vital factor for the company to think about.

Fresh pizza remains a key source for companies, which is providing a home delivery facility to the people. Ready to make pizza at home is favorable for the people, who have busiest lifestyle and limited time to go outside to purchase; these are one of the major customers for companies. The consumption process is a significant factor for companies and largely depends upon the quality standards and other services offered. The higher the quality; more consumption will take be. Customer’s feedback is also a major factor in the consumption process because it will support a lot to companies while making strategies in the future as per the customer taste and buying preferences.

Solution No.2

According to the exhibit 3, 27% would definitely buy the fresh pasta and 49% would probably buy the fresh pasta as per exhibit 3. On the other hand, pizza purchase intent reflects that 18% would definitely buy, and the 43% would probably buy the pizza or would support the pizza purchase concept. In exhibit 3, industries median reflects that 20% would definitely buy the fresh pasta and on the other hand 42% that is relatively a huge number would probably buy the fresh pasta. As per the exhibit 7 where N=75, 26% of TruEarth customers would definitely buy the pizza and 53% would probably buy the pizza. The mean at this stage would likely to be around 3.7, where N=300 and at the non-customers stage, the mean would be around 3.5. From the perspective of TruEarth customers, the mean would likely to be around 4.2 that is relatively high.

Solution No.3

            There are various key reasons for the favorable pizza purchase behavior, which are headed by likelihood for the sauce at 22% that is followed by a 21% likelihood for fresh ingredients. Other factors like taste, crust and cheese are rated at 10%, 13% and 18% respectively. The key reason that restricts a buyer to buy the pizza is headed by its cost that is rated at 45%. Exhibit 9 also highlighted that 23% didn’t buy such pizza products because they are expensive then the pizza that are available in restaurants and hotels. The mean that is favorable to the refrigerated pizza is $10.75 at N=109. The mean of $8.86 is found unfavorable to the product purchase at the N=59...................

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