Free Essay

Truearth Healthy Food

In:

Submitted By sanammo
Words 679
Pages 3
TruEarth Healthy Food Case Study
Introduction to the case
Company’s background TrueEarth was founded in 1993 in St.Louis ,Missouri, by Garreth Derosta a young entrepreneur . They offered high processed gourmet (focus on whole grain products offering both 60% and 100% whole grain pastas-cucina Fresca) authentic with great quality .

Their product line was:      Standard pastas Whole grain pastas Tomato based sauce Refrigerated pastas Pastas with blended ingredient

The concept was successful ,and truEarth became a supplier to a number of gourmet groceries throughout the Midwestern United State by 1998 ,the Company had built a loyal regional following .Responding to Customer demand ,the company raised consumer awareness through several promotional programs using coupons ,magazine advertisement ,and in-store demonstrations.

Product Development process:
In its early years ,truEarth’s product development was informal and largely driven by intuition .the team enjoyed experimenting with new products and limited edition variations on a core recipes and batch process used to manufacture most products made it easy to experiment without affecting overall production. But as time passed the company underestimate the appeal of hit product and find itself struggling to keep up with the demand. The company’ research and development     Idea generation Concept searching Product development and testing Qualification of volume

About Cucina Fresca
The cucina Fresca line was rolled out nationally in the third quarter of 2006 .it grew quickly with 18$ million in retail sales in 2006 and 35$ million in 2007.

 It was quick and easy no guess work for consumer  recommendation of the best sauce
    simple structure with their own touch option for whole grain ,but tasted great single meal for 2 only one strong competitor

Market Consumer Trend

 Home Meal Replacement  increase in dual-income households  time poverty  desire for variety and freshness  “Semi-prepared” products  Consumers still involved in preparing dinner, but it is easier  Growth of refrigerated fresh pasta  Awareness of the importance of whole grains in diet

The Objectives:
 Assess the current situation on the market  Analyze the position of TruEarth  Assess whether TruEarth should launch the pizza and what the volume would it be?

Competitive Environment
 Segments  delivered/takeout(47%)  restaurant pizza (23%)  frozen pizza (19%)  homemade pizza (2%)  Competitors  Giants: Nestle and Kraft  Medium-sized: Papa John’s and Pizza Hut  TruEarth-like: the only such competitor is Rigazzi Brands

 Threat!
 Rigazzi is about to launch a similar whole grain pizza

Cucina Fresca Experience
 Ideas  Quick and tasty home meal replacement  broad range of choices  Preparation  focus groups  market research  advertising and promotion ($10m)  large investment in production facilities  Promising trial results  Performance  $18m retail sales in 2nd half of 2006  $35m in 2007  slowdown in 2008

the Risks :
 Rigazza is not far from launching its whole wheat pizza  Refrigerated pizza brings up with an association with frozen pizza  The offered price can be too high  Advantages of our pizza over other refrigerated pizzas can be overestimated

The Assumptions:
During trial period the product is consumed by 3 types of households: 1. Consumers of Cucina Fresca Pasta. 2. Non-consumers of brand who already aware of product. 3. Non-consumers of brand who become aware of product due to additional advertising and promotion.

Additional marketing plan would cost $10M and results in 800 GRP. Additional advertisement would affect only unaware targeted population with pure increase in awareness on 17%.

The wholesale volume to be exceeded is $10M+$12M = $22M

The worst case scenario:
 Define those who are favorable to product as participants of the trial period.  Only people who are favorable to product influence the repeat rate of it.

 With given prices 28% of population which is favorable to product suggested that pizza needs no improvement (Exhibit 10).  even in the worst scenario at least 28% of trial households would participate in repeat period given price unchanged.

 The price of the kit (pizza + toppings) remains unchanged – 12.38$

Implementation :
Operation  Buy refrigerated equipment  Lower the price of packaging Distribution  Wholesale  Retailer

Marketing
 Promotion ,facebook twiter ,magazine ,email ,mail  Contests and giving away prize  Store Event

Recommendation :
The firm definitely should enter this new market.

Similar Documents

Premium Essay

Truearth Healthy Foods

...office, inhaling the aroma from the test kitchen where the product development team was trying new recipes for TruEarth, maker of gourmet pastas, sauces, and meals. Her team had been working hard for the past year on a fresh whole grain pizza. The final market research results had arrived, and it was time to make a decision on launching the product. In 2006, Eckstein, a brand manager, had led the introduction of Cucina Fresca, a fresh whole grain pasta meal kit sold through supermarkets. By the end of 2007, sales had reached $23 million, making it the most successful product launch in company history. However, growth had slowed in 2008 as competitors began offering similar products. Sustaining a competitive edge in the fresh Italian food category required continual innovation and, as a result, TruEarth had invested heavily in its pizza offering. Eckstein observed: We were aggressive in launching Cucina Fresca. We made a significant investment in new manufacturing equipment and the distribution infrastructure required to get fresh food to shelves quickly. Being a small company competing against Nestle and Kraft is not easy, but we do not make rash decisions. The success of Cucina Fresca was a calculated risk based on significant research. We think we can achieve similar success with pizza, but we will need to take a hard look at the numbers. Company Background TruEarth was founded in 1993 in St. Louis, Missouri, by Gareth DeRosa, a young entrepreneur. DeRosa saw an opportunity...

Words: 1944 - Pages: 8

Premium Essay

Truearth Healthy Foods:

...TruEarth Healthy Foods: Market Research for a New Product Introduction Cucina Fresca is a quick home meal replacement product from TruEarth, an Italian food company which focused on whole grain pasta. Isabel Eckstein, TruEarth brand manager was pondered whether to launch its Pizza kit product as a product line extension of Cucina Fresca and if it worth to launch at what volume would be. TruEarth Experience with Pasta Product - Before launching its product,TruEarth conducted kitchen test which tested to a focused group, organize survey to evaluate interest, and market research to estimates potential sales by Nielsen BASES®. Cucina Fresca pasta market studyfinding that 76% positive purchase intent, comprising those who said they ‘definitely’ or ‘probably’ would buy the product. The industry rule of thumb is that 80% of those who claim they ‘definitely would buy’ and 30% of those who stated ‘probably would buy’ actually completed a purchase. Based on the study, the calculated trial volume was 1.4 MM households, and the calculated repeat volume was 2.3 MM households (assuming excellent product). With that prior kitchen test, survey and research, CucinaFresca Pasta sales which officially launched nationally in the third quarter of 2006 and hadgrown quickly ($18 million in retail sales in 2006 and $35 million in 2007). TruEarth’s Calculation for New Pizza Product: - For the launching of the new Pizza product, we did some calculation regarding data from Nielsen’s research as follow: ...

Words: 659 - Pages: 3

Premium Essay

Truearth Healthy Foods

...Exhibit 2: Whole Grain Pizza Concept Purchase Volume Estimate, Year 1 (Excellent) Total Purchase Intent Definitely would buy 18.00% % of “Definites” who actually buy 80.00% “Definite” Purchases 14.40 a %Probably would buy 43.00% % of “Probables” who actually buy 30.00% “Probable” Purchases 12.90 b % Trial Rate 27.30 c % Marketing Plan Adjustment Target Households 58,500,000Cucina Fresca Pasta Customers 6,435,000 d Non- Cucina Fresca Pasta Customers 52,065,000 e Customer Awareness 50.00%Non-Customer Awareness 12.00% All Commodity Volume Distribution (ACV) 40.00% Marketing Adjusted Trial Rate Cucina Fresca Pasta Customers Adjusted Trial Rate 5.46 f %Non- Cucina Fresca Pasta Customers Adjusted Trial Rate 1.31 g %Cucina Fresca Pasta Customers Trial Purchases 351,351 h Non- Cucina Fresca Pasta Customers Trial Purchases 682,051.5 i Total Trial Purchases 1,033,402 j,k Repeat Purchase Inputs Repeat Purchase Occasions 2.00 Repeat Rate, by Product Services Excellent Product 49% Repeat Volume, by Product Scenario Excellent Product 1,012,733 l,m Total Purchases 2,046,135 n a Definitely would buy x % of “Definites” who actually buy: 80% x 18% b Probably would buy x % of “Probables” who actually buy: 30% x 43% c “Definite” Purchases + “Probable” Purchases: 14.4% + 12.9% d Target Households x 11%: 58,500,000 x 11% e Target Households x 89%: 58,500,000 x 11% f Trial Rate x Customer Awareness...

Words: 917 - Pages: 4

Premium Essay

Truearth Healthy Foods Case Study

...TruEarth Healthy Foods CASE STUDY 1. Read, reflect on and analyze the company situation within the context of a changing wine industry. 2. Think about an outline all of the external, internal, competitive, market, and consumer factors, changes and trends affecting Mondavi in their business model. 3. Analyze Mondavi on the industry using the tools you now know of, such as SWOT analysis, factor analysis, competitive matrices and Porter's five forces. What are your conclusions about competitive position and options for future growth? To answer: 4. Why was Cucina Fresca pasta successful? First of all, because it’s healthy. Also it’s easy to cook, it’s fast and tasty (in comparison with pasta of another companies). Package has size for one time meal and right proportions of sauce and pasta. Each package has simple instructions for cooking process. For people who care about health and don’t have time to cook – it’s the best option. And on the market only two companies which provide this product. 5. How would you compare the pizza opportunity to that for pasta? I think that here can be two options: huge fail or more or less success. When company launched fresh pasta it was something completely new and thus huge success and large consumption. But pizza is completely different. It’s can’t be healthy food, so people can be interested in it and in case of good taste it can be successful, but with more possibilities it’s not going to be as good as it was with...

Words: 784 - Pages: 4

Free Essay

Truearth Case Analysis

...TruEarth Case Analysis There are various objectives facing the decision maker of TruEarth foods. It is vital to have set objectives before launching a product or even a brand. There needs to be a clear vision of where the company will be in the long and short term, as well as objectives on how TruEarth will run its business and market its products. The main objectives TruEarth needs to focus on are: project objectives, company objectives, personal objectives; long-term versus short term and also the explicitly stated versus implied objectives. The project objective for TruEarth is to successfully find the best way to enter the emerging whole grain pizza market and be the leader in this environment. As the health food industry has continued to boom, TruEarth needs to find the proper way to enter the fresh, healthy, non-frozen pizza market and appeal to those who want pizza, without the pre-existing health risks. As a company, TruEarth focuses their objectives on sustaining their competitive advantage over competitors in the healthy gourmet foods market when entering into the very profitable pizza market. TruEarth’s initial product launch of the Cucina Fresca brand of fresh cut pasta and sauces proved to be successful due to a first mover advantage in a market without a clear leader. The company must now decide what is going to sustain their competitive advantage: attempt to gain the first mover advantage in the pizza market by launching their product as quickly as possible...

Words: 2030 - Pages: 9

Free Essay

Truearth Case

...TruEarth’s dilemma to launch a new pizza product TruEarth, maker of gourmet pastas, sauces and meals, has successfully launched a new product named Cucina Fresco in 2006 and took the first mover advantage in healthy food industry. Although Cucina Fresco led to TruEarth’s great success, it doesn’t promise TruEarth a long-term profit due to intense competition. Truearth has gradually lost its market share to Rifazzi after Rifazzi’s introduction of its whole grain fresh pasta in late 2007. Identifying customers’ needs for healthy food and the market trend based on extensive market research, TruEarth is facing a critical business decision about whether to launch a new product line of whole grain pizza or not while its main competitor Rigazzi also intends to launch a similar product. Launching whole grain pizza might help TruEarth to expand its product diversity and retain its position in whole grain products; however, besides the threat posed by Rigazzi, the presence of existing strong competitors such as Kraft and Nestle and consumers’ perception of healthy value of pizza also put TruEarth at a disadvantage. Success of Cucina Fresca pasta TruEarth was the first company that identified the opportunity for healthy gourmet products and developed products that met customers’ needs. As the trend of having a healthier diet grows, Cucina Fresca offers not only fresh pasta and sauce with healthy ingredients as home meal replacements but also a better taste than dry, shelf-stable pasta...

Words: 830 - Pages: 4

Premium Essay

Truearth

...radical. They believe in healthy eating, taste conscious and concerned about what they eat. The tribe members are family loving, educated professionals with very disciplined lifestyle. Salubrious Cognizant Moms are very busy professionals but insisted on eating at home and cook their food to their taste and were conscious about ingredients in the food being consumed by their family. The culture-based characteristics of the Salubrious Cognizant Moms include moderate to high power distance with conservative behaviours. Among these families women usually makes grocery decision and checks the price, ingredients and nutrition value for everything they buy. Due to school going children in the family taste is of paramount importance. The members of Salubrious Cognizant Moms passionately demonstrate family orientation, health consciousness and will carry that in all walks of their lives from workplace to home. They are generally women but there are exceptions where male head of the family goes for groceries and makes buying decision. They have very high uncertainty avoidance values and are not comfortable with uncertainty they seek better value proposition with optimized price, value and nutrition values. Salubrious Cognizant Moms members are smart and realistic with long-term orientation values. Health foods skew to an older and/or more upscale audience. The 40-plus market has been described as a “growing segment of the population looking for healthy, low-cal foods.” With increasing age...

Words: 2812 - Pages: 12

Premium Essay

Truearth Case Solution

...Purpose of this research paper is to find out if company need to launch production of whole grain pizza and to come up with semi-comprehensive marketing plan for this new product. Along with marketing plan we will provide market analysis that shows benefit of launch new product, define our target market and create value for the product. Market Analysis The business situation of TruEarth Healthy Foods Company is it faces two challenges now, one is from competitor and another is from itself. Firstly, TruEarth was good at produce Cucina Fresca - a kind of whole grain pasta meal. The revenue was $23 million by the end of 2007. However, growth had slowed in 2008 as competitor (Rigazzi) began offering similar products. Secondly, the Truearth faces a threat that is it only produces one kind of product. If Truearth cannot keep advantage in the market of whole grain pasta, then the company will be in a very disadvantageous position. Our purpose in this case is to help TruEarth to launch a product and provide a marketing plan. The whole grain pizza is a potential product that TruEarth is considering to launch in the future. Based on the pasta’s data, we can get the trial rate of pizza is 27.3 %(definitely would buy 18% times actually buy 80% plus probably would buy 43% times actually buy 30%). Customers Awareness is 16.2%(11% tried product times 50% customer awareness plus 89% un-tried product times 12% non-customer awareness). So the Marketing adjusted trial rate equal to...

Words: 1304 - Pages: 6

Premium Essay

Case Study

...1-800-545-7685, write Harvard Business Publishing, Boston, MA 02163, or go to http://www.hbsp.harvard.edu. This publication may not be digitized, photocopied, or otherwise reproduced, posted, or transmitted, without the permission of Harvard Business School. V. KASTURI RANGAN SUNRU YONG TruEarth Healthy Foods: Market Research for a New Product Introduction Isabel Eckstein strode toward her office, inhaling the aroma from the test kitchen where the product development team was trying new recipes for TruEarth, maker of gourmet pastas, sauces, and meals. Her team had been working hard for the past year on a fresh whole grain pizza. The final market research results had arrived, and it was time to make a decision on launching the product. In 2006, Eckstein, a brand manager, had led the introduction of Cucina Fresca, a fresh whole grain pasta meal kit sold through supermarkets. By the end of 2007, sales had reached $23 million, making it the most successful product launch in company history. However, growth had slowed in 2008 as competitors began offering similar products. Sustaining a competitive edge in the fresh Italian food category required continual innovation and, as a result, TruEarth had invested heavily...

Words: 5624 - Pages: 23

Premium Essay

Business

...4065 DECEMBER 24, 2009 V. KASTURI RANGAN SUNRU YONG TruEarth Healthy Foods: Market Research for a New Product Introduction Isabel Eckstein strode toward her office, inhaling the aroma from the test kitchen where the product development team was trying new recipes for TruEarth, maker of gourmet pastas, sauces, and meals. Her team had been working hard for the past year on a fresh whole grain pizza. The final market research results had arrived, and it was time to make a decision on launching the product. In 2006, Eckstein, a brand manager, had led the introduction of Cucina Fresca, a fresh whole grain pasta meal kit sold through supermarkets. By the end of 2007, sales had reached $23 million, making it the most successful product launch in company history. However, growth had slowed in 2008 as competitors began offering similar products. Sustaining a competitive edge in the fresh Italian food category required continual innovation and, as a result, TruEarth had invested heavily in its pizza offering. Eckstein observed: We were aggressive in launching Cucina Fresca. We made a significant investment in new manufacturing equipment and the distribution infrastructure required to get fresh food to shelves quickly. Being a small company competing against Nestle and Kraft is not easy, but we do not make rash decisions. The success of Cucina Fresca was a calculated risk based on significant research. We think we can achieve similar success with pizza, but we will...

Words: 5265 - Pages: 22

Free Essay

Marketing

...  PROBLEM  STATEMENT   TruEarth  has  developed  a  frozen  pizza  product,  but  the  brand  manager  and  other   executives  are  struggling  with  the  decision  to  launch  the  product  or  not.  Poor  forecasting  in   the  past  has  lead  TruEarth  to  misstep  with  previous  product  launches;  judging  the  correct   volume  will  be  critical.  The  team  is  aware  that  their  rival,  Rigazzi,  has  also  tested  a  pizza   concept  and  is  not  far  from  a  product  launch.       EXECUTIVE  SUMMARY   The  ready-­‐made  or  semi-­‐made  meals  market  is  mature,  now  reaching  the  late   majority  segment  of  the  product  life  cycle.    A  segment  of  the  ready  made  foods  market  is   shifting  away  from  mass  produced,  highly  processed  foods  toward  greater  quality  and   authenticity.    TruEarth  has  managed  to  differentiate  itself  and  its  products  by  targeting  this   niche,  a  segment  of  ready-­‐made  foods  that  is  still  experiencing  sustainable  growth.   TruEarth  is  on  the  offensive...

Words: 3842 - Pages: 16

Premium Essay

Trueearth

...TRUEARTH HEALTHY FOODS (CASE STUDY SNLYSIS) COMPANY BACKGROUND TRUEARTH was founded in 1993 in st Louis, missori by Gerath Derosa a young entrepreneur and its is providing quality healthy and authentic pastas.DeRosa sourced a particularly high quality durum wheat from North Dakota and was notriosly selective about ingredients for sauce. The product line featured standards pastas such as speghatis,rigatoni and shells and specialty pastas with blended ingredients such as artichoke spinach and saffron.truearth is driven by innovative free willing and entrepreneurial spirits.truearth introduced a 60% as well as 100% whole grain pasta cucina fresca which was a great success. ABOUT CUCINA FRESCA PASTA Cucina Fresca pasta is launched in 2006 with a full range of choices cut pasta, tortalinni, and ravioli as well as accompanying by different sauces as shown in the exhibit 1 of the case. The FRESCA product was designed to be consumed in a single meal for two tapped the growing demand for healthy HMR efficiently. The cucina Fresca product are quick and easy. There is no guesswork for the consumer. The packaging of each product recommends the best sauce option. The cucina fresca line was rolled out nationally in the third quarter of 2006 it grew quickly with $18 million retail sales in 2006 and $35 million in 2007. Competitive threats There is one strong competitor in the market named Rigazzi brand which introduced his own pasta in late 2007.Rigazzi targeted TruEarth...

Words: 696 - Pages: 3

Premium Essay

Tru Earth

...Case Study TruEarth By Michele McKimmy Marylhurst University July 5, 2012 Professor S Abstract In the fight for competitive market share it is important for a company to bring new product to the market. TruEarth Healthy Foods, a maker of 100% whole grained gourmet Italian meals achieving great success with Cucina Fresco pasta, observed a decline in market share due to competitors offering like products. The company looking for new venues looked into launching a new fresh made pizza line in order to be competitive with its leading competitor as well as subsequent companies with a lower grade product such as Kraft and Nestle. TruEarh took great care in their research and development of the new product leading to analyzing the value and success of launching the pizza product line. Case Study TruEarth Case Questions: Keep in mind... what is the market need? How was the market segmented and what trends influenced the segmentation? 1. Why was Cucina Fresca pasta successful? How would you compare the pizza opportunity to that for pasta? How would you compare the actual product development process for each? 2. Using the forecast model for pasta shown in Exhibit #5, what is your forecast of the demand for pizza? Hints: the necessary data is contained in Table B and Exhibit 7. There is a significant difference in the "likeliness to buy" results for past TruEarth customers and non-customers. Actual penetration of the Cucina Fresca parent brand may range from...

Words: 827 - Pages: 4

Free Essay

True Earth Case Study

...market penetration (5% to 15%), the following forecast was obtained: 3. What can the team at Tru-Earth learn from Exhibit 6 about their customers preferences? Exhibit 6 shows the results of a survey based on attributes and substitution of the pizza category. The survey is based on a 10-point scale, where 1 is the lowest score and 10 is the highest score. Regarding to the usage attributes, the average respondent considers pizza to be "family oriented" due to the fact of the high ratings of all categories (take-out pizza with 8.9 out of 10 points, refrigerated pizza with 7.1 points, and TruEarth new concept with 8.6 points). Therefore, under the assumption that the typical family size starts with 2 people and then increase, the pizza kit size is properly oriented (servings for 2 to 3 people). However, average respondents also considers convenience is as a major attribute, and TruEarth pizza scores lower than take-out pizza and equals refrigerated pizza, since customers will need time to prepare the meal instead of just picking it up or ordering for delivery....

Words: 1089 - Pages: 5

Free Essay

Truearth

...from processed food to healthier options. Cucina Fresca fulfilled this demand. It was prepared from more fresh and superior ingredients and was destitute of “bad carbohydrates”. * The consumers wanted more whole grain in their intake. Cucina Fresca being whole grain pasta conformed to this parameter. * Cucina Fresca fitted the category of “semi-prepared”, “ready to eat” products which were in high demand by time deprived, dual income households. * The product line was varied and was perceived more tasty and healthy than competition. * Demand for refrigerated fresh pastas was growing faster than dry pastas. * The size of the package had the right portion of pasta and sauce making it convenient to cook. * TruEarth enjoyed the first mover advantage in market. * Cooking the pasta was quick and easy. Each package recommended the best sauce option. The consumer did not have to do any guess work. * The package came with instructions to customize the meal if desired, like add grilled chicken or shrimp. Pizza vs. Pasta: Opportunity- | Pizza | Pasta | Market size | $5.8 B | $4.4 B | Customer perspective | Indulgence | Meal | Source of extra revenue | Customer may purchase multiple toppings | Customer will purchase only one sauce for one packet of pasta | Competition | Local pizzerias, National and international chains, Kraft, Nestle | Rigazzi | First mover advantage | Rigazzi was developing a similar concept. So if TruEarth does not act...

Words: 815 - Pages: 4