Assignment task: The TruEarth Healthy Foods case describes a company making an important product launch decision. You'll evaluate market research to estimate potential sales volume for a new product and to make a go/no go decision.
1. Why was Cucina Fresca pasta successful?
2. Interpret the market research. In particular:
- Compare the market research process for each?
- What can the TruEarth team learn from Exhibit 6 about how consumers view pizza?
- How do the pizza concept test results (Exhibits 7 and 8) compare with the findings for pasta (Exhibits 3 and 4)?
- How do you interpret the findings in Exhibits 9 and 10 to evaluate interest in pizza?
3. What is your forecast of the demand for TruEarth pizza? The video below might help you think through how to estimate sales. TruEarth Student Version.
- Be sure to INCLUDE A SPREADSHEET THAT SHOWS YOUR WORK. This spreadsheet may be helpful for you.
- There are two big unknowns. First, the actual penetration of the Cucina Fresca parent brand may range from 5% to 15%. Second, repeat purchases depend on whether consumers view the pizza as excellent, average, or mediocre. Whenever there are unknowns it is helpful to conduct a sensitivity analysis.
4. Would you launch the pizza? List the pros and cons you are taking into consideration.