Truearth Healthy Foods Essay

1379 Words Mar 24th, 2013 6 Pages
TruEarth Healthy Foods: Market Research for a New Product Introduction

Problem Statement:
TruEarth was founded by Gareth DeRosa in 1993 in St. Louis, Missouri. During 1980’s there was a increase in demand of healthier food in market as people were becoming more aware of their eating habits. Company launched its own line of healthier gourmet pastas and sauces made from superior ingredients. DeRosa managed to source particularly high quality of durum wheat from North Dakota. He was very choosy about the ingredients of sauces that were made by the company. The company became a leading example in whole grain products offering customers with option of 60% or 100% whole grain pastas to choose from. The sauces were made from real fresh
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With the set of data provided in the given case study one can analyse it to find the answer to the problem.

Analysis:
The Cucina Fresca line of whole grain fresh pasta launched by company in 2006 was a complete success and generated $18 millions in retail sales during 2006 and $35 million in 2007. The main reason behind the success of the product were that it was very simple to make, provide different sauce options and most important was that it tastes good. However in 2007, major competition came from Rigazzi brands that launched their new line of whole grain fresh pasta. Rigazzi gave tough competition to TruEarth’s whole grain fresh pasta as it was very similar in taste with Cucina Fresca and Rigazzi were giving substantial trade discounts to super markets and high value coupons to customers as well. Since TruEarth company was the first one to successfully launch a new line of products in gourmet food market, it helped in creating monopoly over the market with no major competition for the product. This kind of competition forces TruEarth to take crucial steps in order to stay ahead in competition. So test team started working on new product that is known as refrigerated pizza kit.
The first step of the development process was the idea generation which involves doing market surveys and evaluating market trends and than doing formal management discussions

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