Truearth Case Analysis

Aubry Brown

Case Brief Title: TruEarth

Date: Due: 2/10/19

1. Problem Statement: TruEarth is a food company that specializes in high quality whole grain food. They were very successful with Cucina Fresca pasta line, and now Isabel Eckstein, the brand manager of TruEarth, must decide whether or not to launch a whole grain pizza kit to public. Time is of the essence as competition is working on a similar product.

2. Situation Analysis:        

Company 

• Known for quality products
• Very successful when first to market with a product
• Hit it big in home meal replacement market with refrigerated pasta options
• Focus on providing healthy whole grain alternatives to common “bad carb” foods

Customers 

• Consumers who are looking for semi-prepared food
• Dual-income households who were looking for convenience and quick prepared meals
• Health conscious people who were looking for whole grain tasty food

Competitors 

• Riggazi
• Nestle and Kraft have been huge in the store bought pizza market for years
• Pizza takeout like Pizza Hut have whole grain options

Context

• Pizza market is bigger than pasta market
• TruEarth understood that there is a demand for good tasting whole grain products but no supply
• Customers are seeking easier to prepare meals that is healthier than take-out
• Home Meal Replacement became a very popular thing as income increase but available time decrease

3. Alternatives

Alternative One: Stick With It

Description: In this strategy TruEarth would make no move into the Pizza market. They would just stick to what has been working so far. They can continue to inovate in the pasta market and maybe even help to expand the size of the market to gain on the pizza market size.

Conclusion: In this strategy, TruEarth would be able to focus on the things that thwy already do well and try to fend off other competition trying to break into the pasta market. They have a proven track record with their ability to innovate and their strategy of constantly introducing new ideas into the pasta market is helping them continue to grow. My reason for not suggesting this strategy stems from the fact that the case says that new competition is already begging to take market share. If they are struggling to hold on now, they will probably continue to struggle in the future.

Alternative Two: Wait For It

Description: In this strategy, TruEarth would wait for Rigazzi to release their version of the pizza product instead of making an effort to beat them to market. Rigazzi would make an effort and TruEarth would would study the outcomes. Then depending on how it does, they would make the decision to either proceed with thier version or call off the project.

Conclusion: In this strategy, TruEarth would be able to see how Rigazzi's product is recieved and make decisions accordingly on whether or not to follow their lead. This allows them to not have to take the risk of entering a new market basically blind. The reason I do not recomend this strategy is because TruEarth's past success has come from being the first into an unexplored market, so to lose that advantage here could be detremental.

4. Recommendation

:Launch the Pizza

Description: In my recomended strategy, TruEarth should continue on their current path and release the refrigerated pizza product as planned. As they have already spent the money on the exploritory research,  they are just a few steps away from finishing the product.

Conclusion: This recomendation comes mostly from forcast for demand for this pizza product. There is still a positive trend in the Home Meal Replacement market, and the biggest reason people give for not eating pizza is the bad carbs that come with it. This product fixes that.Forcasted demand is 17 million units at $12.38 per unit. After subtracting retailer gross margin, we see a an expected sales volume caping out at a little under 140 million if they produce an excelent product. Since this sinario far exceeds Exstein's requirement, I would recomend proceeding.