TruEarth Healty Foods Case Write-up:
TruEarth Healthy Foods was founded in 1993 to meeting the demand for healthy gourmet products like pastas, sauces, and meals. These products used the concept of fresh whole grain rather than using refined white flour which is considered as “bad carbohydrates” and introduced the fresh prepared/semi prepared home meal replacement products. Company had successful introduction of fresh whole grain pasta and want to introduce the similar product concept for pizza in coming quarters. Company is targeting to retain its position in whole grain products in the competitive environment and acting quickly and decisively to introduce the new product i.e., Fresh Whole Grain Pizza. For this purpose company conducted the market research through Nielsen BASES®, a market research firm. This research included firstly the focus group to test the concept and then followed by take-home trials. Research data shows that purchase intent for the new product is 61%, comprising of those who would “definitely” or “probably” purchase it and industry standard suggests 62% which is very hopeful. Also utilizing the industry standard of 80% of those who would definitely buy and 30% of those who would probably buy resulted in 27.3% trial rate. Having the same marketing plan as of Cucina Fresca, which is $8 million in advertising and $2 million in promotional coupons would result in 800 GRPs, which would consequently generate 62% of awareness among the existing customer and non-customers. Further based on salesforce feedback, ACV distribution has been anticipated 40%.
Based on the margin requirements the price of the pizza kit at $8.0 with individual topping packs at $3.5 would result in a total combined retail market of $38 million to $72 million and in wholsesale market $25 million to $47.3 million. These results are encouraging enough to introduce the new product in the market. But the 27% consumer feedback suggests that the new product is unattractive...
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