TRUEARTH HEALTHY FOODS:Market Research for a New Product Introduction

SWOT Analysis Strengths 1. Pizza is healthy made up of whole wheat crust and high quality ingredients 2. We allow customers to choose pizza and customize according to their taste, select the toppings. 3. 30% of the people who favors Truearth say that no improvements are needed Weakness 1. 2. 3. 4. It can feed only 2-3 people at a time. 29% of the home trials have suggested to lower the price. Price is often higher than that of restaurants and take-outs. About 7% of the people say that the crust should be less chewy and also 20% of the people who are unfavorable towards the pizza, have this problem.

Opportunities 1. People want home-meal replacement and would prefer not to cut out on pizza. 2. To produce pizzas fresher than frozen pizza and healthier than take-out Threats 1. 2. 3. 4. Nestle and Kraft are already providing low cost frozen pizza. Rigazzi has already tested and about to launch its own product. Delay in launch will lead to not getting first mover advantage. The studies have been done in only high potential markets so clear idea about true penetration of the product is lagging.

Situation Analysis Customers 1. Entire American population is the target customers Competition 1. Main competition is from Rigazzi who had also tested a pizza concept and is likely to launch its product. 2. Nestle and Kraft is already providing low cost frozen pizza. 3. There is an increasing number of local pizza joints who are offering pizzas in metropolitan cities. 4. Refrigerated pizza, frozen pizza and takeout pizza are the ones being replaced by our product.

Context 1. Pizzas are core component of Italian-American food category with annual sales in U.S. estimated at $53 billion in 2007. 2. Pizza demand in key demographics has been hurt by health concerns and popularity of diets that restricted or cut out carbohydrates. Company 1. The company holds a 6% market share in pasta market in current market condition 2. The company holds a 4% market share in pizza market in current market condition Points of Difference 1. In pizza category, our product gives a more home cooked meal experience along with a healthy food concept. 2. The product was fresher than frozen pizza, healthier than take-out and allowed consumers to easily customize to their own taste.

Our Observations 1. On launching the pizza first, the first mover advantage can be grabbed. 2. If we launch after the competitor, especially Rigazzi then we can understand how well the consumers are liking the product. 3. The calculations show that even if we launch the product now and it turns out to be a mediocre product, the revenue would be $14.5 million, which is way to high than companys target of $12 million. 4. If it turns out to be an excellent product, the revenue would be around $22.6 million dollars, which again is higher than $12 million.