Truearth

Marketing Concepts

TruEarth Healthy Foods Case Write-up

JIE ZHU

10/16/2012

Decisions to be made:

In 2006, Eckstein, a brand manager of TruEarth, had introduced Cucina Fresca, a fresh whole grain pasta meal kit and which had TruEarth reached the sales peak of &23 million. The successful launching of Cucina Fresca enabled TruEarth’s expansion into refrigerated and semi-prepared food market, by understanding and meeting consumer’s trends and needs. In 2008, however, the growth of sales of TruEarth had slowed down thank to the entrance of similar products mimicked by competitors. Rigazzi, a major competitor against TruEarth, introduced its own whole grain pasta meal kit with substantial trade discounts to supermarkets and high-value coupons to consumers. Therefore, the competition of whole grain foods among the market became fierce. TruEarth is a healthy food brand marketed towards households looking for a life style that makes a statement of healthy, simple, and affirmative. Having to response to the competition aggressively, TruEarth must be launching a new product to retain its competitive edge and to increase its market share. By expanding its whole food product line, TruEarth had been making effect on the development of whole grain pizza – a refrigerated pizza kit with healthier ingredients and a whole grain crust. As pizza is one of the major and favorite Italian – American food, its ‘ease to cook’ and amazing taste has built a substantial market for it. But in the meanwhile, Rigazzi had tested the same pizza concept, and its product was on the bound to beat the market. In other words, TruEarth had to quickly decide whether to launch the new product whole grain pizza. If so, what the volume would be.

Analysis:

Inferences from the past:

TruEarth has gained a substantial portion of market share by introducing the Cucina Fresca pasta. Learning from the success of launching the pasta, TruEarth was able to identify changes of customer behaviors....