Case 2 – TruEarth Healthy Foods

Customer analysis, competition analysis, market research and revenue estimation for new
product launch

C2G10 Team members

Name Roll Number

Aishwarya G V P FT213008
Debankar Moulik FT213025
Preethi S FT213061
Rohit Tapader FT213069
Shantanu Siddhartha FT213077
Siddhartha Jha FT213084
Utkarsh Mittal FT213093
TruEarth were at the decision making of launching of their new product and the decision was to be
based on the result of a market research conducted recently.

Consumer analysis:
 A segment of the market, shifted from unhealthy processed food towards healthier fresh
food.
 Home Meal Replacements became a go to for customers, with their increase in disposable
income - an effect of dual income and time poverty.
 Consumer did not want to give up on the experience of cooking and sought easy and ready
to prepare meal kits which provided them a home cooked feel.
 Consumer became more aware of the benefits of whole grain food and had increased urge
to avoid high carb refined ingredients, but did not want to compromise on taste.

Competition analysis:
Threat of new entrants (Strong):

 Rigazzi had completed testing their new pizza product and was ready to launch and
hence are a potential threat.
 Rigazzi had the capacity to provide attractive discounts to retailers and customers in
the prime cities where TruEarth operated.

Bargaining power of buyers (Strong):

 More buyer propensity to brand substitution as similar products were offered in the
same prime cities
 No switching costs for customers
 Customers have a wide variety of options like restaurants/takeout/deliveries to
choose from.

Threat of substitute products (Moderate):

 Market flooded with slightly different alternatives like frozen pizzas that are cheaper
and instantly available and offered by big brands Nestle and Kraft.
 Under delivery of taste by TruEarth gourmet pizza may decrease the competitive
status of TruEarth against Delivery/ Takeout options available at similar price.
 Aggressive discounts offered by Rigazzi and other competitors may reduce the
market share.

Bargaining power of suppliers (Strong):

 Rigazzi, a competitor of similar scale is capable of providing higher margins to

retailers.
 Probability of brand replacement was high as retailers preferred to stock
refrigerated whole grain pizza of a single vendor.
Rivalry among existing competitors

 Product establishment in the market is difficult given the existing big players like
Nestle and Kraft.

Total Revenue and Volume Estimate Calculation

Potential issues:
Based on the market research done by BASES, the following are the inferences that could be against
the product launch.

 The home trials revealed that a major portion of the participants found the product
to be expensive.
 Customers felt that there was a scope for improvement with respect to taste and
flavour.
 Similar product launch by competitors may hinder the product establishment plans
of TruEarth.

Suggestions:
Based on the below revenue estimates, TruEarth should go ahead with the product launch as soon
as possible to gain the first mover advantage.

Product Type Revenue Estimate (in Millions) $

Mediocre 16.94
Average 21.38
Excellent 24.71

They should also work on the following suggestions to satisfy customer expectations and gain
market penetration.

 Set customer affordable prices (Based on the data collected from test respondents)
 Consistently improve the taste/variety to meet the customer expectation.
 To achieve higher market penetration, TruEarth can tie up with restaurants.