Tru Earth Case Study Solution

lOMoARcPSD|15851150
Tru Earth case study solution
Marketing (ITM University)
StuDocu is not sponsored or endorsed by any college or university

Downloaded by Apoorva sharma ([email protected])
lOMoARcPSD|15851150
Truearth
A manufacturing firm who ideally made nourishing, tasty whole grain dietary commodities.
The firm is basically in the business of pastas & sauces which were nutritious and prepared
from top-quality ingredients. Its Products comprised of standard pastas and speciality pastas.
Truearth stood with those few other companies who were among the first to concentrate on
whole grain outcomes. Truearth did its advertisings using coupons, magazine ads, and store
demos.
When the firm was at its initial stages, they considered testing new products directly in the
market as they assumed it to be a better way in understanding market trend. But as the firm
developed, they made a proper 4 step process:
1. Managers tried to come up with innovative ideas
2. Conducted surveys to understand how much a customer is keen to pay for the product and
how many are interested in buying the product.
3. Testing samples on group of individuals before introducing in the actual market.
4. Analysing the sales of the product in the marketplace with the help of another firm.
WHAT CHANGE IN CUSTOMER CRAZE HELPED TRUEARTH?
1ST TREND: dual income household had no time to prepare their own food and were tired of
unhealthy take out. So they preferred semi prepared fresh whole grain product.
2nd TREND: fresh pasta was chosen over dry pasta
3rd TREND: majority of people recognized benefits of whole grains in diet.
Cucina fresca, a fresh whole grain pasta and sauce by truearth entered the markets and
became popular with high demand in just few months. It was chosen over the harmful
traditional dry pasta. They had no match as no other firm could make healthy pasta that tasty.
It had the finest sauce choices and had simple directions. It was launched in a market with an
unmet demand so the sales were high.
Rigazzi the only challenger who made products that were alike as truearth had created
ambiguity in the retail market. Retailers couldn’t adopt which product to sell in their stores.
But truearth being first presenter in the market had better customer base and loyalty.
Truearth’s next idea was to create whole grain pizza as pizza sales was higher than pasta sales
in America. There was demand in the market but people had their health concerns with the
traditional white flour pizza crust. So truearth’s plan was to create whole grain fresh pizza
crust along with toppings sold separately. Truearth’s idea was to produce pizza fresher than
frozen pizza, healthier than unhealthy traditional pizzas, and provided option to customize
toppings on those crust.

lOMoARcPSD|15851150
Macro environmental factors that had an impact on Introduction of

wholegrain pasta sauce and pizzas by Truearth.
Demographic factors: - The survey composed of the consumers over age of 18 who were the
principal grocery shopper for their own household.
Economic factors: - income distribution with the dual income household leaded to the
boosted disposable income coupled with time scarceness.
Technology: - transformation of demand for dry pasta into the Refrigerated fresh pasta and
Improved packaging-built product more durable. Despite being big competitors like Nestle,
the annual sale had grown to $4.1B by 2004.
Socio-cultural factors: - The growing awareness of whole grains in the diet and the increase
in trend of Dual-income household led to the higher disposable income coupled with time
scarcity. This as a result increased the market for Home meal replacement (HMR).
Estimating future demand

Survey of buyer’s intentions: -
TruEarth used BASES II Line extension study for getting a better insight over the buyer’s
intentions regarding the product by conducting surveys in 7 cities by interviewing consumers
over the age of 18 who were the principal shoppers for grocery of their households to uncover
the purchase behaviour. Survey also inquired about the present and future expectation from
the consumers.
Composite of sales force opinion: -
With the help of BASEs TruEarth forecasted units of fresh pasta and sauces and created 3
scenarios for their products I.e. mediocre product, average product and excellent product.
They have forecasted the estimate sales of each category in pasta & sauces.
Past sales analysis: -
They used their past sales data of pasta and sauces when they were preparing to launch new
product wholegrain pizza. They analysed their capital expenditure, marketing spends and
their own return criteria which required Year 1 sales volume to be $14 million at wholesale to
reach a comfortable margin.

lOMoARcPSD|15851150
Method for estimation of the market potential

Truearth used Market-Build-up Method instead of Multiple factor index method to estimate
the area market potential so that it could frame policies accordingly. It used in-depth concept
survey and an in-home product usage test to ascertain the purchase behaviour and discover
the penetration strategy accordingly.

Tru Earth Case Study Solution

Uploaded by

Copyright:

Available Formats

Tru Earth Case Study Solution

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Tru Earth Case Study Solution

Uploaded by

Copyright:

Available Formats

What changes in customer trends helped Truearth?

What changes in customer trends helped Truearth?

How did Truearth estimate future demand for its products?

How did Truearth estimate future demand for its products?

lOMoARcPSD|15851150

Tru Earth case study solution

Marketing (ITM University)

StuDocu is not sponsored or endorsed by any college or university

1. Managers tried to come up with innovative ideas

3. Testing samples on group of individuals before introducing in the actual market.

WHAT CHANGE IN CUSTOMER CRAZE HELPED TRUEARTH?

2nd TREND: fresh pasta was chosen over dry pasta

3rd TREND: majority of people recognized benefits of whole grains in diet.

Downloaded by Apoorva sharma ([email protected])

Macro environmental factors that had an impact on Introduction of

Estimating future demand

Composite of sales force opinion: -

Past sales analysis: -

Downloaded by Apoorva sharma ([email protected])

Method for estimation of the market potential

Downloaded by Apoorva sharma ([email protected])

You might also like