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TruEarth Healthy Foods specializes in gourmet pastas, sauces, and meals. It has established its name by its introduction of fresh whole grain pasta. The company is looking into coming up with the same concept for pizza. It must decide soon in order to keep up with the ever increasing competition in the market.
V. Kasturi Rangan; Sunru Yong
Harvard Business Review (4065-PDF-ENG)
December 24, 2009
Case questions answered:
- Analyze the key factors for the success of CUCINA FRESCA.
- Conduct qualitative and quantitative analysis for the new product.
- Should the company launch the new product and what the volume would be?
- What would be the action plan for this new product?
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Case answers for TruEarth Healthy Foods: Market Research for a New Product Introduction
This case solution includes an Excel file with calculations.
Synopsis – TruEarth Healthy Foods
TruEarth Healthy Foods is a company making healthy, gourmet products from high-quality ingredients. It is one of a few leaders in the ready-made whole-grain food market, a niche market that offers greater quality and authenticity than the mass-produced food market.
In late 2004, TruEarth Healthy Foods took advantage of the growing demand for quick home meal requirements, refrigerated fresh pasta, and whole-grain food options that did not sacrifice taste to become the first company to develop a fresh whole grain pasta line called Cucina Fresca.
Market research findings for Cucina Fresca gave the management team high confidence in the success of this product line with a high estimated sales volume ($14 million at wholesale in the first year) and significant interest in the new product.
The Cucina Fresca line was launched in 2006 and it grew quickly with retail sales in half of the first year was $18 million and almost doubled in the year after, $35 million.
TruEarth’s main competitor is Rigazzi which is similar in size and product offering. In order to compete with Rigazzi and other potential new entrants, TruEarth realizes it should take advantage as the first mover in this niche market.
Therefore, following Cucina Fresca’s success, TruEarth wanted to leverage its brand and make use of its large capital expenditure spent on the pasta line by extending the whole grain products to refrigerated pizzas.
The concept of the new pizza line would be a pizza with a whole grain crust and high-quality toppings that is fresher than frozen pizza, healthier than take-out, and easily customizable.
TruEarth Healthy Foods has identified the store-bought refrigerated pizza market as…
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