Ashish David B Ashwani Kansal Pankaj Dhingra Sarva Harish Sumit Pramanik Vritika Rawal
TruEarth Healthy Foods (case analysis) Problem Statement: 1) Whether to Launch the Pia Product in a ver! com"etitive industr! with esta#lished "la!ers$
%& How to deal with limited resources availa#le to it with com"anies like 'estle and Kra(t which are esta#lished "la!ers in the Pia Segment$ S!T "nalysis: Stren#th:
)& Best *ualit! Products used in the "roduction+ unlike mass "roduced+ highl! "rocessed (ood o( its com"etitors$ %& ,anagement-s #acking (or research into new "roducts$ .& /ru0arths whole grain "asta line was considered one o( the #est in its categor! giving it good sales$ 1& Sim"le instructions (or the 2ooks3Homemakers to add their own touch to the "roducts i$e$ customiation$ 4& 5ncremental investment (or 'ew "roduct would #e su#stantiall! less #ecause o( "rior large ca"ital 06"enditure$ 7& High awareness o( Pia "roduct among "eo"le who have alread! tried 2ucina 8resca Pasta ea$ness:
)& Relativel! resource to com"ete with esta#lished "la!ers like 'estle+ Kra(t$ %& /o""ings and Sauces are sold se"aratel! (or 91$4 and 9.$4: res"ectivel!+ there#! (orgoing the o""ortunit! #! selling them as a "ack$ !pportunities:
)& 5ncreased demand o( Health! (oods to #e #ought o(( the shel( #! dual income households$ %& 5ncreased awareness o( the Whole ;rains as well as the demand o( 8resh (oods in the diet would ena#le (aster acce"tance o( 8resh Whole grain Pia .& 'o strong com"etitor o((ering Whole grain o"tion in the 8resh "asta segment$ /he 2ucina (resca "roduct o( the com"an! /ru0arth Health! (oods was ver! success(ul$ 1& <<= o( >S consumers ate "ia at least once a month o"ening u" lots o( o""ortunities (or the Pia Product$ 4& Whole grain "ia would #e a good o"tion (or consumers in ke! demogra"hics who avoided normal "ia due to health concerns and desire to cut car#oh!drates$ 7& 5t will have a "otential (irst?mover advantage in the Wholesale Pia ,arket$ Threats:
)& Strong com"etitor in Rigai+ which imitates the "roducts+ that /ru0arth Health! (ood launches causing loss o( sales and "ro(ita#ilit! to it$ %& Limited shel( s"ace availa#le (or re(rigerated "roducts leading to increased com"etition$ .& Big esta#lished "la!ers like Kra(t and 'estle 8roen 8ood ,arkets$
1& Alread! crowded Pia ,arket might harm the chance o( the new Pia Product to #e launched$
PEST "nalysis
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Social ne o( the (irst com"anies to (ocus on whole grain "roducts (irst mover-s advantage ;rowing awareness o( im"ortance o( whole grains in the diet S"urring diet fads to avoid C#ad car#oh!drates/hough whole grain #reads are considered less tast!+ /ru0arth-s are one o( best tasting options Huge demand?<<= o( consumers ate "ia once a month
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0conomic 8resh "asta annual sales had grown to 9 1$) B #! %::1 'ew and (ast growing segment with %::7 sales o( 9)@ , and %::< sales o( 9.4 , in retail sales Re(rigerated "ia market sales 94$@ B larger market than re(rigerated "asta$ /echnical ,anu(acturing using batch process without a((ecting overall "roduction while e6"erimenting Packaging innovations aided manu(acturers in #road distri#ution o( (resh "asta to su"ermarkets 8resh "asta took ver! less time to cook and (illed "asta were "erceived to #e #etter in ualit! /ur0arth-s o((ering o( #oth 7:= and )::= whole grain "astas were tast! com"ared to com"etitors
% & "nalysis: &ompetitors: • •
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Kra(t and 'estle are alread! huge "la!ers in the "ia market o((ering low cost (roen "ia ,ajor chains like Pa"a Eohn-s and Pia Hut had introduced "ias with whole wheat or multi? grain crusts Rigai is a com"etitor o( a similar scale as /ru0arth and it has alread! tested a "ia conce"t Local "ierias o((ered "ias with whole grain crusts "articularl! in major metro"olitan areas
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/here was a growing trend in the demand (or a (ood categor! known as FHome ,eal Re"lacementG$ However+ some consumers sought Fsemi? "re"aredG o"tions than reuired some "re"aration at home #e(ore consum"tion An increase in the dual income households had led to higher dis"osa#le incomes cou"led with Ftime "overt!G /here was also a growth in the demand (or re(rigerated (resh "asta /here was a growing awareness o( the im"ortance o( whole grains in the diet Pias were a core com"onent o( the 5talian? American (ood categor! ver two thirds o( "ia sales volume came (rom deliver!+ takeout+ and restaurants
&ustomer:
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Dual income households with growing dis"osa#le income looking (or read! to eat or semi "re"ared (ood Health conscious "eo"le who are looking (or whole grain tast! (ood 2onsumers looking (or (ood which can #e customied 2onsumers who have grown tired o( (ast (ood and are looking (or (resh (ood
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/ru0arth was (ounded in ). in St$ Louis+ ,issouri+ B! ;areth DeRosa+ a !oung entre"reneur$ 5t "roduced a line o( authentic high ualit! "astas with #lended ingredients$ 8irst com"an! to (ocus on whole grain "roducts o((ering #oth 7:= and )::= whole grain "astas in its line$ /he com"an! (ostered a (reewheeling entre"reneurial s"irit and #elieved in regularl! tr!ing new "roducts$ 5t develo"ed a s!stematic (our ste" "rocess (or research and develo"ment consisting o( I 5dea ;eneration+ 2once"t Screening+ Product Develo"ment and /esting+ and *uanti(ication o( Volume Jworking with the market research (irm 'ielson BAS0S& 5denti(!ing the shi(t into categories like H,R+ re(rigerated "asta (or eas! meals and awareness a#out #ad car#oh!drates led the com"an! to launch whole grain (resh "asta that satis(ies the (ast and eas! meal o( the consumers along with "roviding a health! and (resh alternative$ /he "roduct was a huge success As a natural e6tension to the line the com"an! was conducting research into whole grain "ia and deli#erating whether to launch this "roduct$
&ollaborators: •
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/ru0arth worked with 'ielson BAS0S+ a marketing research (irm to estimate the "otential sales o( its new "roducts via BAS0S )Jawareness and interest taste& and BAS0S %Jtaste test& tests$ /his was the same (irm+ which was engaged to (ind the "otential o( its success(ul launch o( whole grain (resh "asta 2ucina 8resca$ 5ts distri#ution networks were mainstream su"ermarket chains and retail outlets$ /he retail outlets were given a margin "ercentage o( a#out .4= (or 2ucina 8resca and would #e the same (or the whole grain "ia$
Pizza With No Topping Target of TruHealth Foods to meet Company's requirement Sales Volume Needed in case of only Pizza ith no topping to meet Company's requirement !"#$%& Target Household (areness )e*nitely Would +uy !,-% . ,-#/& Pro0a0ly Would +uy !,-12.,-3& 4thers Consumers Who ill +uy Whole grain Freshly 5ade dated Ta6ing ma7 of the To8 Since people are loo6ing for Whole grain Freshly 5ade Food
12 1.5 58.8 6.3504 6.321 2.352 15.0234 19% 31%
People Who Would +uy Pizza !Without topping&' Hence Company ould 0e a0le To achie9e its Target
Pizza With Topping Target of TruHealth Foods to meet Company's requirement Sales Volume needed in case of Pizza ith atleast " topping !(9erage Spend:;"#-3%& <"#$"#-3%= Target Household (areness )e*nitely Would +uy!,-% . ,-#/& Pro0a0ly Would +uy !,-12.,-3& 4thers Consumers Who ill +uy Whole grain Freshly 5ade dated People Who Will +uy Toppings People Who Would +uy Pizza !Without topping&'
Proposition: 'ew trend (ocuses towards I )& *uick Home meal re"lacements %& 8resh 8ood .& Whole ;rain
/ru0arth should move (orward with the new whole grain (resh "ia #ecause o( the (ollowing reasonsI )& /he! had alread! launched a whole grain Pasta "roduct that has #een highl! success(ul$ /his "roves that there is a "otential market (or tast! whole grain 5talian American (resh (ood$ /he! also have the reuired e6"ertise and e6"erience$ %& /he increasing num#er o( dou#le income health conscious (amilies will de(initel! "rovide a market (or this kind o( a "roduct$ .& With Rigai eating into their whole grain "asta market+ /ru0arth must go (or a "roduct e6tension without dela! to have the (irst movers advantage in this market$ 1& /ru0arths o((ering is di((erent (rom the o((erings o( its com"etitors in the "ia market #ecause it em"owers the consumers to "re"are their own customied "ia$ 4& Also (rom the *uantitative anal!sis we can in(er that the! can meet their target
