Truearth Healthy Foods

Q.3. Is there a first mover advantage in pizza similar to fresh pasta? Would you launch the pizza?

TruEarth had a real first mover advantage in pasta as the fresh pasta space was still new and growing and TruEarth was the only feasible whole grain option for customers with a good taste. On the other hand, the pizza industry is not in any way a new product category. It has major dominating players like Kraft and Nestle competing in low-cost frozen pizza. But since TruEarth is not competing for shelf space already occupied by the former two players, it is in a way beneficial for TruEarth. In terms of the whole wheat pizza concept, TruEarth does have some element of a first mover advantage. It emphasizes upon what store bought bake at home pizza should look like, taste like and the ingredients that comprise the product, a feature unique of its kind.

On the basis of the facts and statistics in the case study, and with the belief that the product scores well on average acceptance rates, we would opt for launching the product. The company needs to to meet the $12 million capital requirement and with an average product launch, the company will gross in wholesales sale $2.5 million more than the needed capital requirement. This is accompanied by the fact that TruEarth is working with some slightly incomplete research data and few assumptions in relation to the interest of the consumers. The product should still be fruitful in its first year and expectantly gain market share in the second year.