Truearth Healthy Foods Case Study

TruEarth Healthy Foods: New Product Introduction

After reading the case and looking at the advantages and disadvantages, I believe TruEarth should move quickly and launch the pizza, as it is more beneficial to the company.

Firstly, it would mean that TruEarth continues to innovate allowing them to sustain their competitive edge in the market and extend their product line. The new product would also help boost growth that had slowed down from pasta products. This is highly crucial, as the demand for healthy products grew and is clearly not going away anytime soon, so have competitors. Moreover, there is a bigger market for pizza than pasta with sales of $5.8 billion compared to $4.4 billion for pasta.

Secondly, the whole grain pizza will capitalize

The launch of the pizza kit would allow TruEarth to penetrate the market before Rigazzi, and benefit from first mover advantage against its biggest competitor that offers similar products. The TruEarth kit also allows the consumer more freedom to customize the product to their taste and be involved. This helps the customers perceive that the pizza is tastier and fresher than competitors. Moreover, the quick and easy instructions coupled with measured portions and cooking suggestions make the pizza favorable and unique. All these are factors that set TruEarth apart from other brands and aid its

In doing so, there will be little risk for TruEarth and they can wait and see how well Rigazzi pizza is doing when it launches to gain more accurate insight into the market. However, I do not recommend this, as they will lose the opportunity to be successful and profitable in the pizza market by being the first to launch. TruEarth has already seen the benefit of being first in Cucina Fresca pasta and shouldn’t risk consumers liking the competitor’s brand more and losing stores that only store one brand. Also as I said before, the healthy food trend is not going away and TruEarth needs to expand their product line in order to retain their leadership as a gourmet, healthy brand. Additionally, TruEarth has a small incremental investment in machinery for the pizza product line, as there was already a big investment for the pasta. Therefore, it wouldn’t add too much to costs. Overall, with TruEarth’s previously established position in the market and success, they stand to make generous sales from this launch.

Skeptics may doubt the accuracy of the research preformed and the numbers given. While it is true that they are only estimates and cannot be depended on fully, TruEarth has developed much more organized research methods. They are now performing more taste and concept tests as well as working with Nielson BASES to determine customer awareness and interest. The