...TruEarth Case Analysis There are various objectives facing the decision maker of TruEarth foods. It is vital to have set objectives before launching a product or even a brand. There needs to be a clear vision of where the company will be in the long and short term, as well as objectives on how TruEarth will run its business and market its products. The main objectives TruEarth needs to focus on are: project objectives, company objectives, personal objectives; long-term versus short term and also the explicitly stated versus implied objectives. The project objective for TruEarth is to successfully find the best way to enter the emerging whole grain pizza market and be the leader in this environment. As the health food industry has continued to boom, TruEarth needs to find the proper way to enter the fresh, healthy, non-frozen pizza market and appeal to those who want pizza, without the pre-existing health risks. As a company, TruEarth focuses their objectives on sustaining their competitive advantage over competitors in the healthy gourmet foods market when entering into the very profitable pizza market. TruEarth’s initial product launch of the Cucina Fresca brand of fresh cut pasta and sauces proved to be successful due to a first mover advantage in a market without a clear leader. The company must now decide what is going to sustain their competitive advantage: attempt to gain the first mover advantage in the pizza market by launching their product as quickly as possible...
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...TruEarth’s dilemma to launch a new pizza product TruEarth, maker of gourmet pastas, sauces and meals, has successfully launched a new product named Cucina Fresco in 2006 and took the first mover advantage in healthy food industry. Although Cucina Fresco led to TruEarth’s great success, it doesn’t promise TruEarth a long-term profit due to intense competition. Truearth has gradually lost its market share to Rifazzi after Rifazzi’s introduction of its whole grain fresh pasta in late 2007. Identifying customers’ needs for healthy food and the market trend based on extensive market research, TruEarth is facing a critical business decision about whether to launch a new product line of whole grain pizza or not while its main competitor Rigazzi also intends to launch a similar product. Launching whole grain pizza might help TruEarth to expand its product diversity and retain its position in whole grain products; however, besides the threat posed by Rigazzi, the presence of existing strong competitors such as Kraft and Nestle and consumers’ perception of healthy value of pizza also put TruEarth at a disadvantage. Success of Cucina Fresca pasta TruEarth was the first company that identified the opportunity for healthy gourmet products and developed products that met customers’ needs. As the trend of having a healthier diet grows, Cucina Fresca offers not only fresh pasta and sauce with healthy ingredients as home meal replacements but also a better taste than dry, shelf-stable pasta...
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...________________________________________________________________________________________________________________ HBS Professor V. Kasturi Rangan and Sunru Yong prepared this case solely as a basis for class discussion and not as an endorsement, a source of primary data, or an illustration of effective or ineffective management. This case, though based on real events, is fictionalized, and any resemblance to actual persons or entities is coincidental. There are occasional references to actual companies in the narration. Copyright © 2009 President and Fellows of Harvard College. To order copies or request permission to reproduce materials, call 1-800-545-7685, write Harvard Business Publishing, Boston, MA 02163, or go to http://www.hbsp.harvard.edu. This publication may not be digitized, photocopied, or otherwise reproduced, posted, or transmitted, without the permission of Harvard Business School. V. KASTURI RANGAN SUNRU YONG TruEarth Healthy Foods: Market Research for a New Product Introduction Isabel Eckstein strode toward her office, inhaling the aroma from the test kitchen where the product development team was trying new recipes for TruEarth, maker of gourmet pastas, sauces, and meals. Her team had been working hard for the past year on a fresh whole grain pizza. The final market research results had arrived, and it was time to make a decision on launching the product. In 2006, Eckstein, a brand manager, had led the introduction of Cucina Fresca, a fresh whole...
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...4065 DECEMBER 24, 2009 V. KASTURI RANGAN SUNRU YONG TruEarth Healthy Foods: Market Research for a New Product Introduction Isabel Eckstein strode toward her office, inhaling the aroma from the test kitchen where the product development team was trying new recipes for TruEarth, maker of gourmet pastas, sauces, and meals. Her team had been working hard for the past year on a fresh whole grain pizza. The final market research results had arrived, and it was time to make a decision on launching the product. In 2006, Eckstein, a brand manager, had led the introduction of Cucina Fresca, a fresh whole grain pasta meal kit sold through supermarkets. By the end of 2007, sales had reached $23 million, making it the most successful product launch in company history. However, growth had slowed in 2008 as competitors began offering similar products. Sustaining a competitive edge in the fresh Italian food category required continual innovation and, as a result, TruEarth had invested heavily in its pizza offering. Eckstein observed: We were aggressive in launching Cucina Fresca. We made a significant investment in new manufacturing equipment and the distribution infrastructure required to get fresh food to shelves quickly. Being a small company competing against Nestle and Kraft is not easy, but we do not make rash decisions. The success of Cucina Fresca was a calculated risk based on significant research. We think we can achieve similar success with pizza, but we will...
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...Case Study TruEarth By Michele McKimmy Marylhurst University July 5, 2012 Professor S Abstract In the fight for competitive market share it is important for a company to bring new product to the market. TruEarth Healthy Foods, a maker of 100% whole grained gourmet Italian meals achieving great success with Cucina Fresco pasta, observed a decline in market share due to competitors offering like products. The company looking for new venues looked into launching a new fresh made pizza line in order to be competitive with its leading competitor as well as subsequent companies with a lower grade product such as Kraft and Nestle. TruEarh took great care in their research and development of the new product leading to analyzing the value and success of launching the pizza product line. Case Study TruEarth Case Questions: Keep in mind... what is the market need? How was the market segmented and what trends influenced the segmentation? 1. Why was Cucina Fresca pasta successful? How would you compare the pizza opportunity to that for pasta? How would you compare the actual product development process for each? 2. Using the forecast model for pasta shown in Exhibit #5, what is your forecast of the demand for pizza? Hints: the necessary data is contained in Table B and Exhibit 7. There is a significant difference in the "likeliness to buy" results for past TruEarth customers and non-customers. Actual penetration of the Cucina Fresca parent brand may range from...
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...office, inhaling the aroma from the test kitchen where the product development team was trying new recipes for TruEarth, maker of gourmet pastas, sauces, and meals. Her team had been working hard for the past year on a fresh whole grain pizza. The final market research results had arrived, and it was time to make a decision on launching the product. In 2006, Eckstein, a brand manager, had led the introduction of Cucina Fresca, a fresh whole grain pasta meal kit sold through supermarkets. By the end of 2007, sales had reached $23 million, making it the most successful product launch in company history. However, growth had slowed in 2008 as competitors began offering similar products. Sustaining a competitive edge in the fresh Italian food category required continual innovation and, as a result, TruEarth had invested heavily in its pizza offering. Eckstein observed: We were aggressive in launching Cucina Fresca. We made a significant investment in new manufacturing equipment and the distribution infrastructure required to get fresh food to shelves quickly. Being a small company competing against Nestle and Kraft is not easy, but we do not make rash decisions. The success of Cucina Fresca was a calculated risk based on significant research. We think we can achieve similar success with pizza, but we will need to take a hard look at the numbers. Company Background TruEarth was founded in 1993 in St. Louis, Missouri, by Gareth DeRosa, a young entrepreneur. DeRosa saw an opportunity...
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...TRUEARTH HEALTHY FOODS (CASE STUDY SNLYSIS) COMPANY BACKGROUND TRUEARTH was founded in 1993 in st Louis, missori by Gerath Derosa a young entrepreneur and its is providing quality healthy and authentic pastas.DeRosa sourced a particularly high quality durum wheat from North Dakota and was notriosly selective about ingredients for sauce. The product line featured standards pastas such as speghatis,rigatoni and shells and specialty pastas with blended ingredients such as artichoke spinach and saffron.truearth is driven by innovative free willing and entrepreneurial spirits.truearth introduced a 60% as well as 100% whole grain pasta cucina fresca which was a great success. ABOUT CUCINA FRESCA PASTA Cucina Fresca pasta is launched in 2006 with a full range of choices cut pasta, tortalinni, and ravioli as well as accompanying by different sauces as shown in the exhibit 1 of the case. The FRESCA product was designed to be consumed in a single meal for two tapped the growing demand for healthy HMR efficiently. The cucina Fresca product are quick and easy. There is no guesswork for the consumer. The packaging of each product recommends the best sauce option. The cucina fresca line was rolled out nationally in the third quarter of 2006 it grew quickly with $18 million retail sales in 2006 and $35 million in 2007. Competitive threats There is one strong competitor in the market named Rigazzi brand which introduced his own pasta in late 2007.Rigazzi targeted TruEarth...
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...MARKETING STRATEGY CASE STUDY April 23, 2012 Patrick Sollars Lydia Ellison Patti McCormick Alex Calkins Page 1 PROBLEM STATEMENT TruEarth has developed a frozen pizza product, but the brand manager and other executives are struggling with the decision to launch the product or not. Poor forecasting in the past has lead TruEarth to misstep with previous product launches; judging the correct volume will be critical. The team is aware that their rival, Rigazzi, has also tested a pizza concept and is not far from a product launch. EXECUTIVE SUMMARY The ready-‐made or semi-‐made meals market is mature, now reaching the late majority segment of the product life cycle. A segment of the ready made foods market is shifting away from mass produced, highly processed foods toward greater quality and authenticity. TruEarth has managed to differentiate itself and its products ...
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...TruEarth Healthy Food Case Study Introduction to the case Company’s background TrueEarth was founded in 1993 in St.Louis ,Missouri, by Garreth Derosta a young entrepreneur . They offered high processed gourmet (focus on whole grain products offering both 60% and 100% whole grain pastas-cucina Fresca) authentic with great quality . Their product line was: Standard pastas Whole grain pastas Tomato based sauce Refrigerated pastas Pastas with blended ingredient The concept was successful ,and truEarth became a supplier to a number of gourmet groceries throughout the Midwestern United State by 1998 ,the Company had built a loyal regional following .Responding to Customer demand ,the company raised consumer awareness through several promotional programs using coupons ,magazine advertisement ,and in-store demonstrations. Product Development process: In its early years ,truEarth’s product development was informal and largely driven by intuition .the team enjoyed experimenting with new products and limited edition variations on a core recipes and batch process used to manufacture most products made it easy to experiment without affecting overall production. But as time passed the company underestimate the appeal of hit product and find itself struggling to keep up with the demand. The company’ research and development Idea generation Concept searching Product development and testing Qualification of volume About Cucina Fresca The cucina Fresca line was...
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...Sample Case Scenarios Via: Harvard Business School Scenario 1: Clean Edge Razor: Splitting Hairs in Product Positioning description After three years of development, Paramount Health and Beauty Company is preparing to launch a new technologically advanced vibrating razor called Clean Edge. The innovative new design of Clean Edge provides superior performance by stimulating the hair follicles to lift the hair from the skin, allowing for a closer shave. The company has already decided to introduce Clean Edge into the men's market where it has a strong presence. Jackson Randall, the product manager for Clean Edge, struggles with how best to position the product for the launch. One strategy is to release Clean Edge as a "niche" product, targeting the high-end market of fastidious groomers looking for superior skin care products. Another strategy is to release the product into the highly competitive mainstream razor market where the product can be positioned as the most effective razor available. Randall meets internal resistance to the mainstream strategy from the product manager for the company's current, but aging, mainstream razor products and he must consider the effects of cannibalization in his plan. Randall must recommend an optimal strategy and provide supporting economic analysis of his decision--not just for Clean Edge, but for its effect on the entire company. Learning objective: Explore issues associated with strategic product positioning. Review new product development...
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...“Marketing…is the whole business seen from the point of view of its final result, that is, from the customer’s point of view. Concern and responsibility for marketing must, therefore, permeate all areas of the enterprise.” - Peter F. Drucker, People and Performance, 1977 Required Textbook • Managing Marketing in the 21st Century: Developing and Implementing the Market Strategy, 3rd ed., by Noel Capon (www.axcesscapon.com, 2012). Available through www.axcesscapon.com (as a PDF file or in paperback), as well as Amazon.com or BN.com in either paperback or electronic format and in paperback through the University Bookstore. Required Cases • Harvard Business School Cases: listed in course outline. Cases are available for purchase online through Harvard Business School Press (Coursepack Link for purchasing cases listed below with list of cases). Introduction and Overview In their never-ending search for the ultimate secret to business success, many businesses continue to overlook the most fundamental premise of all business. While their search for the ultimate “secret to success” has provided some interesting and useful concepts and theories, the ultimate secret to business success is not as secret or complex as some would have us believe. Success in business comes from creating satisfied customers. This is, or should be, the essence of all marketing activities. Yet each day, we personally encounter—or the press brings news of—CEOs...
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