TruEarth is facing a slow growth in sales and is considering introducing a new product whole grain pizza and the management of the enterprise wants to determine that whether TruEarth should launch their new product fresh whole grain pizza and what would be best time to launch should it meet the expected sales growth of $ 12 million.
Background and Objectives of TruEarth:
TruEarth is formed in 1993 by Mr. Gareth and its targeted market was whole food including pastas and sauces. The enterprise achieved a handsome market share through supermarkets. The company is aiming to maintain its competitive edge and leading position in whole food industry and therefore is considering introducing a new product in future.
Previous experience of launching new products like Cucina Fresca.
Edge over existing competitors due to four step process for research and development.
Use of excellent quality ingredients in products.
Bases System of Nielsen gives an advantage over competitors.
High awareness and popularity of food products like pizza among customers.
Competitors are moving forward briskly by introducing the similar products as compared to TruEarth on development of new products like whole grain pizza.
Slow Growth rate in sales
Need of funds for launching products and also for improvement in manufacturing equipment.
Demand is increasing for healthy products like guilt –free gourmet pizza.
The topping offered may be increased to capture a food market share of those customers who like different toppings.
Acceptance or popularity of whole grain products among people as a healthy option may increase demand of whole grain pizza among those customers.
Low cost frozen pizza by competitors (Kraft and Nestle)
Entrance of new competitors in whole grain products market like Rigazzi who is planning to launch its whole grain pizza.