Truearth Healthy Foods Case Study Analysis Grading

Unformatted text preview: TruEarth Healthy Foods -- Sales Volume for Pizza Table 1   Non-Customers Customers Source Definitely would buy 15% 26% Exhibit 7 % of "Definites" who actually buy 80% 80% Exhibit 5 "Definite" Purchases 12% 21% Probably would buy 39% 53% Exhibit 7 % of "Probables" who actually buy 30% 30% Exhibit 5 "Probable" Purchases 12% 16% Trial Rate ("Definite" + "Probable") 24% 37% Target households (MM) 58.8 58.8 Table B Penetration, % of target households 89% 11% Table B Awareness of pizza product 12% 50% Table B ACV distribution 40% 40% Table B Adjusted Trial Households 0.6 0.5 Total trial households (Non-Customers + Customers) 1.1 % of households repurchasing (Excellent) 49% Table B Repeat purchase occasions 2 Table B Total purchases (Trial + Repeat) 2.1 Retail selling price $12.38 Table B Retail sales volume $26.2M Retailer gross margin 35% Case text TruEarth sales volume $17.0M     Table 2       Product Quality & Repurchasers % Mediocre Average Excellent Product Product Product   21% 37% 49% 5% penetration $4,939,200.00 $8,702,400.00 $11,524,800.00 10% penetration $9,878,400.00 $17,404,800.00 $23,049,600.00 15% penetration $14,817,600.00 $26,107,200.00 $34,574,400,00 References Kotler, P., & Keller, K. (2011). Marketing management. (14th ed.). Pearson....
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Case | HBS Case Collection | December 2009

TruEarth Healthy Foods: Market Research for a New Product Introduction

by V. Kasturi Rangan and Sunru Yong


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. Acting as brand managers, students must complete a quantitative analysis of the available data to project the sales volume for pizza and then decide whether to bring the new product to market.

Keywords: Market research; Consumer marketing; Brands; Food; Marketing Strategy; Consumer Behavior; Forecasting and Prediction; Product Launch; Brands and Branding; Retail Industry; Food and Beverage Industry;

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