Truearth Healthy Foods: Market Research For A New Product Introduction
Truearth Healthy Foods: Market Research For A New Product Introduction
Truearth Healthy Foods: Market Research For A New Product Introduction
Introduction
TruEarth was founded in 1993 in St. louis by Gareth DeRosa Maker of gourmet pastas, sauces and meals Small company competing against giants like Nestle and Kraft Introduced Cucina Fresca in 2006 which is a whole grain pasta and became a success in the market ($23 million,2007) One of the first companies to offer 60% and 100% whole grain pastas
In 2004 demand of HMR, refrigerated pasta and whole grain foods increase Introduced Cucina Fresca, whole grain pasta, as a product line extension to its pasta Cucina Fresca product line consist of
Cut pasta, filled pasta, sauce
After the success of Cucina Fresca, company started working on launching whole grain pizza as a product line extension to its pizza
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BASES
BASES is a unit of Nielsen Holdings (global information and measurement company , New York)\ BASES is the world leader in STM used to
-future sales volume of initiative, find the key driver of the volume
BASES tests not only new products and concepts, but also line extensions and relaunches.
Pre BASES - For screening concepts/ positionings BASES I - For estimating market awareness and market potential BASES II - For concept/product evaluation
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Brand Revitalization seeks to increase the size of the market through incremental
innovations
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A-T-A-R Model
Advertising
Budget
GRP
BASES
Awareness %
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Repeat purchase
BASES creates three scenarios for each type of product Mediocre Average Excellent For each of these three, a specific repurchase rate is determined based on past experience with similar goods Repeat Volumes = Trial Households*Repeat Purchase Occasions*Repeat transaction amounts*Repeat rate Total Volume = Trial Purchases + Repeat Purchases
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Competitive threat
Rigazzi launched fresh whole grain pasta in 2007 Positioned as Traditional/ Vinatge pasta maker The competitor of similar scale and products Substantial discounts and High value coupons Competitive threat as it has capability to launch comparable products.
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The Controlled sale: Minimarketing Infoscan by IRI Scantrack by ACNielsen Provides the results under real market and competetive conditions The Full Sale methods Test marketing: limited geography / channel
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33% of restaurant-goers had strong interest in whole grain pizzas Demand was there, but branded products in this category was not prominent By mid-2007, the basic kit was developed - - - crust ( whole grain ) + packets of cheese and sauce Complementary toppings were also developed ( three extra cheeses, sliced mushrooms & hormone-free chicken sausagecrumbles )
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Pricing $8 per pizza kit and $3.50 per topping pack Research 300 mall intercept interviews were conducted Bases II Line Extension Study --- both in-depth concept survey and product usage test Conducted survey in 7 cities, among the age group above 18 Users of Cucina Fresca pasta were also interviewed A sample kit was provided for test and feedback was taken after 7 to 10 days
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