Truearth Healthy Foods Case Study Solution
Exhibits 9 and 10 Interpretation
TruEarth conducted mall intercept interviews from 300 candidates in order to examine the prevailing pizza attributes along with analyzing the product substitution trend. In this interview, consumer’s three attributes related to usage, taste and quality were examined. The 10-point scale was used, where 10 points indicated “strongly agree” behavior.After conducting the favorable feedback test, Eckstein approached an in-depth analysis,based on usage test of in-home product, by enhancing its BASES system to Line II Study. All the respondents were provided with the sample kit to analyze their behavior after 10 days’ usage.
Exhibit 9 and 10 provide the after-home trail of product’s likes and dislikes. It has been examined that the product was liked for a number of reasons, such as:its crust, cheese, sauce, topping, fresh ingredients, price, family preferences and easiness to cook. But it could be seen that the product was mostly admired for the sauces, along with its fresh ingredients. In addition to this, it could be seen that the product was disliked by 59 customers because of a number of reasons, such as its high cost, overall taste and quality, family dislike and dislikes for crusts(M Draper, P Cohen, H Buchan).
Thus, it could be concluded that the product was disliked more because of its expensive pricing strategy. It is suggested that the company should make some adjustments with respect to its pricing strategy, in order target more customers. In addition to this, the overall quality and ingredients were good and were liked by the customers.
In exhibit 10, the mean price for refrigerated pizza is $10.4, for frozen pizza is $7.43 and for takeout pizza the price is $11.72. On the other hand, a basic pizza kit was charged for $8.00 per pizza kit. Thus, it is concluded that the price was suitable with respect to other pizza’s prices.
Qualitative Analysis
A qualitative analysis has been conducted in order to determine the effectiveness and probability of success chances for a product launch. For detailed analysis SWOT and Porter’s Five Forces analysis tolls have been used, which are briefly discussed in appendix 1 and 2.(Dyson, 2004).
Recommendations
After evaluating all the results given in the case exhibits and a complete analysis, it is recommended that TruEarth shouldlaunchits new product, because of its highsuccess probability and to sustain its competitive advantage. It is estimated that TruEarth pizza’s consumption would be 43% out of total pizza consumption in future. A basic pizza kit is made by the test kitchen of TruEarth, which could feed 3 to 2 people with charging $8.00 per pizza kit. In addition to this, customers view it as a healthy option because of its whole grain ingredients.
In the appendix 3, the purchase volume for the first year has been calculated, which represents that thetrail household purchase would be 4.3MM. It has been analyzed that TruEarth pizza concept was widely accepted and admired by the customers with respect to quality as compared to the takeout and refrigerated pizza concepts. TruEarth adopted a BASES system to forecast the market trend and development, which comprised of four steps.The system was an effective research tool, which helped the company in analyzing the whole situation and capturing the required data effectively.
Conclusion
It is concluded that TruEarth was going to launch a new product- Pizza. The market research results had arrived, the top management had to interpret and analyze the data effectively in order to make a decision for the product’s launch. It is estimated that TruEarth pizza consumption would be 43% out of total pizza consumption in future. In addition to this, customers view it as the healthy option because of its whole grain ingredient.It is recommended that TruEarth should launch its new product, because of its high success probability and an attainment of its competitive advantage................................
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