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Q.3.

Is there a first mover advantage in pizza


similar to fresh pasta? Would you launch the
pizza?
TruEarth had a real first mover advantage in pasta as the fresh
pasta space was still new and growing and TruEarth was the
only feasible whole grain option for customers with a good
taste. On the other hand, the pizza industry is not in any way a
new product category. It has major dominating players like Kraft
and Nestle competing in low-cost frozen pizza. But since
TruEarth is not competing for shelf space already occupied by
the former two players, it is in a way beneficial for TruEarth. In
terms of the whole wheat pizza concept, TruEarth does have
some element of a first mover advantage. It emphasizes upon
what store bought bake at home pizza should look like, taste
like and the ingredients that comprise the product, a feature
unique of its kind.
On the basis of the facts and statistics in the case study, and
with the belief that the product scores well on average
acceptance rates, we would opt for launching the product. The
company needs to to meet the $12 million capital requirement
and with an average product launch, the company will gross in
wholesales sale $2.5 million more than the needed capital
requirement. This is accompanied by the fact that TruEarth is
working with some slightly incomplete research data and few
assumptions in relation to the interest of the consumers. The
product should still be fruitful in its first year and expectantly
gain market share in the second year.