Truearth Case
Executive Summary
TruEarth is faced with a dilemma on whether or not to launch the new whole grain pizza product. This case has analyzed the marketing survey data and provided full alternative solutions. The calculated projected retail market of $21 to 30 million dollars will meet the business requirements to proceed with this project. The marketing plan is to focus on two key consumer groups: existing TruEarth customers and new health conscious group that may or may not be existing pizza eaters. From this strategy, it is expected to meet on the higher end of the projected retail market. A side benefit is the added penetration of TruEarth brand name to the overall consumer market, which may benefit the whole grain pasta product.
Problem Statement TruEarth is a company that supplies gourmet meal products to grocery stores with strong emphasis in high quality ingredients, freshness, and healthy selections. The core competency of TruEarth is the use of whole grain ingredients to make home meal replacement products. TruEarth main product line composes of fresh pasta and sauce. Since product inception in third quarter of 2006, it has been greatly benefited from the higher than expected retail sales and profit margins. The success of this product was short lived as competitors threatened with similar product type and aggressive marketing strategies. In order for TruEarth to remain in the lead in this market, they have been investigating in a product line extension with whole grain pizza. The product development process is at or near completion; the dilemma for TruEarth is to determine whether to launch the whole grain pizza product to the market. The success of the whole grain pizza will rest on the ability to calculate the risk to the following key points:
• Product acceptance
• Market segmentation, positioning, and branding
• Product volume
Situational Analysis The overall trend in the consumer food industry in United States has shifted greatly, from
TruEarth is faced with a dilemma on whether or not to launch the new whole grain pizza product. This case has analyzed the marketing survey data and provided full alternative solutions. The calculated projected retail market of $21 to 30 million dollars will meet the business requirements to proceed with this project. The marketing plan is to focus on two key consumer groups: existing TruEarth customers and new health conscious group that may or may not be existing pizza eaters. From this strategy, it is expected to meet on the higher end of the projected retail market. A side benefit is the added penetration of TruEarth brand name to the overall consumer market, which may benefit the whole grain pasta product.
Problem Statement TruEarth is a company that supplies gourmet meal products to grocery stores with strong emphasis in high quality ingredients, freshness, and healthy selections. The core competency of TruEarth is the use of whole grain ingredients to make home meal replacement products. TruEarth main product line composes of fresh pasta and sauce. Since product inception in third quarter of 2006, it has been greatly benefited from the higher than expected retail sales and profit margins. The success of this product was short lived as competitors threatened with similar product type and aggressive marketing strategies. In order for TruEarth to remain in the lead in this market, they have been investigating in a product line extension with whole grain pizza. The product development process is at or near completion; the dilemma for TruEarth is to determine whether to launch the whole grain pizza product to the market. The success of the whole grain pizza will rest on the ability to calculate the risk to the following key points:
• Product acceptance
• Market segmentation, positioning, and branding
• Product volume
Situational Analysis The overall trend in the consumer food industry in United States has shifted greatly, from