Truearth Healthy Foods Case Study Analysis Paper
TruEarth Healthy Foods:
Market Research for a New Product Introduction
Isabel Eckstein the brand manager had let the introduction of the most successful product of the company (Pasta Kit) in 2006 which means that she has a very strong marketing background.
Competitors began offering similar products in 2008 which cause the growth to slow.
Some of their competitors are Nestle and Kraft.
The do not make a rash decision. The success of Cucina Fresca was a calculated risk based on significant research.
The company only uses high-quality durum wheat and mostly organic ingredients.
The company further raised consumer awareness through several promotional programs, using coupons, magazine advertisements, and in-store demonstrations.
Idea generation. As the company grew, the idea generation process became a more systematic evaluation of consumer trends, with formal management brainstorming sessions.
Three important developments reshaped how consumers purchased groceries. The first important trend was a new, loosely defined food category in the United States
“home meal replacement” (HMR). An increase in dual
households had led to higher disposable incomes coupled with “time poverty,” as
both workers found themselves lacking the time to cook a meal and clean up afterward. Further, consumers had tired of unhealthy carryout and fast food and started seeking greater variety and freshness. Supermarkets began meeting HMR needs by enhancing their fresh, prepared food offerings.
There was no fresh whole grain pasta with broad distribution, with 85% of those in favour of the concept having never purchased it before.
Competitive Threat: Rigazzi Fresh Whole Grain Pasta.
Case Study- TruEarth Healthy Foods Problem Statement: TruEarth Company was founded by Gareth DeRosa in 1993 in St. Louis, Missouri. It is specialized in whole-grain products. Given the success experienced by TruEarth’s Cucina Fresca pasta line, Isabel Eckstein, the brand manager of TruEarth, must decide whether or not to launch a whole grain pizza kit to public. As industrial competition is very high, decision must be made in a right way. Strength of the company: TruEarth is one of the first companies to focus on whole-grain products. They produce products with high quality ingredients. Company offers variety of products in pasta line. Weakness of the company: Not all the workers believes in success of launching a pizza line. Initially company product development process was unorganized and led with intuition. Main Objectives: Pursue new markets aggressively To compete competitors Wholesale must exceed $ 12 million Maintain reputation of healthy food producer Threats: Rigazzi (main)