TruEarth Healthy Foods:
Fresh Whole Grain Pizza

TO LAUNCH or NOT TO LAUNCH?

TruEarth, maker of gourmet pastas, sauces and meal faced the moment of TRUTH. Identifying the market trend, customers’ needs and wants via extensive market research and recognizing the plan to launch new product line of fresh whole grain pizza by Rigazzi, one of its direct competitors, TruEarth is at the point of making a critical business decision. “TO LAUNCH or NOT TO LAUNCH?” That is the question. 1. Consumer Views On Pizza
Despite some differences between different product categories, namely takeout, refrigerated and TruEarth pizzas, consumers generally consider pizza as a family treat which they can conveniently access and easily …show more content…
The fresh whole grain product category was still new and growing. At the same time, its competitors have not yet figured out how to make whole grain pasta that still taste good. TruEarth literally identified and targeted a brand new and fast growing market segment, which is a consumer group who wanted ‘tasty whole grain pasta that is healthy, easy to prepare and affordable’. Together with its investment in production and capability in packaging, TruEarth launched the product with intensive and effective marketing campaigns, targeting both consumers and distribution channels. As a result, TruEarth enjoyed first-mover advantage via managing extensive distribution channels as well as high consumer awareness and built the critical mass in terms of market share before its competitors entered the market. However, the situation is quite different in the pizza market. The market for healthy whole grain alternatives already exists, possibly passing the ‘trendy’ fast phase growing stage. In addition, the competition is fierce as the consumer perception on ‘healthy pizza’ is not as favourable as that of pasta’, therefore, their willingness to switch to TruEarth products is relatively insignificant. More importantly, one of the major competitive advantages TruEarth had in the whole grain fresh pasta market was the distribution channel domination which