True Earth Case Study

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Contents
1. EXECUTIVE SUMMARY1
2. INTRODUCTION2
2.1 MARKET RESEARCH TERMINOLOGY DEFINITION2
2.2 IMPORTANCE OF MARKET RESEARCH2
2.3 TRUEARTH PROFILE3
3. MARKET OPPORTUNITY3
4.PRODUCT DEVELOPNMENT5
5. FORECASTING PIZZA SALES6
5.1. STEP 1/ESTIMATE THE TRIAL VOLUME6
5.2: STEP 2/ESTIMATE THE REPEAT PURCHASE VOLUME7
5.3: STEP 3/ESTIMATE THE TOTAL PURCHASE VOLUME8
6. CONSUMERS’ VIEW OF REFRIGERATED PIZZA COMPARED TO OTHER SUBSTITUTES9 6.1 IMPACT OF TRUEARTH PIZZA ON OTHER CHOICES10
7. COMPARISON BETWEEN PIZZA AND PASTA CONCEPT TEST RESULTS11 8. IS THERE A FIRST-MOVER ADVANTAGE IN PIZZA SIMILAR TO FRESH PASTA?12 9. IN-HOME PIZZA TEST RESULTS14
10. TO LAUNCH PIZZA OR NOT?15
11. CONCLUSION16
12. APPENDIX16
12.1 TABLES17
13. REFERENCES20

1. EXECUTIVE SUMMARY

Topics covered include: consumer marketing, market research, new product introduction, and quantitative analysis. TruEarth Healthy Foods, a maker of gourmet pastas, sauces, and meals, wants to build on its successful introduction of fresh whole grain pasta by introducing a similar product concept for pizza. In an increasingly competitive market, TruEarth is focused on beating its competition and wants to act quickly and decisively. The company conducts extensive market research, first using focus groups to test the concept and then following up with take-home trials. 2. INTRODUCTION

2.1 MARKET RESEARCH TERMINOLOGY DEFINITION

Market research involves the marketing function that links the consumer, the customer, and the public to the marketer through information. It involves the methods used to gather information, analyze it, and report the findings related to marketing goods and services which can be applied to any aspect of marketing. 2.2 IMPORTANCE OF MARKET RESEARCH

Marketing information that is retrieved from market research is used to identify marketing opportunities, solve marketing problems, implement marketing plans, and monitor marketing performance. The information obtained from research helps businesses, plan their future operations to increase sales and profits. Research answers the what, where, how, and at what price the products should be produced. The information also helps businesses solve marketing problems or anticipate future marketing potential. Research is needed before a product is put on the market and also during the life of the product. It definitely gives valuable information on “New product acceptance” for instance, through questioners & interviews. We will look closely how TruEarth Company can use marketing information to take strategic decision to answer the following question” “To whether lunch a new product or not?”

2.3 TRUEARTH PROFILE

TruEarth was founded in 1993 in St. Louis, Missouri by Gareth DeRosa. The company is specialized in making gourmet pastas, sauces and meals. They produced standard pastas, such as spaghetti, rigatoni and shells as well as specialty pastas with blended ingredients, such as artichoke, spinach or saffron. TruEarth was one of the first companies that captured consumer’s demand toward healthy foods by focusing on usage of whole grain products, offering both 60% and 100% whole grain pastas in its line. They used the highest quality ingredients in their tomato-based sauces like real tomatoes instead of paste or puree, extra virgin olive oil instead of soybean and no sweeteners or dried spices. In order to increase customer awareness, the company used several promotional programs using coupons and magazine advertisements. The company was successful and became supplier to many gourmet groceries. Taking advantage of market opportunity and absence of competition, TruEarth decided to launch a new pasta product, Cucina Fresca. After the success of this product, TruEarth studied investing in a second product, whole grain pizza. In this report, we will discuss market opportunity for the new products, pasta & pizza, their product development, Pizza forecasting and the...
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