TruEarth Case Study: Market Research for Healthy Foods New Product

This case study focuses on TruEarth Healthy Foods and the market research required for a new product launch decision, specifically a new pizza product. It introduces the A*T*A*R chain model used by BASES for sales forecasting. The analysis includes determining adjusted trial rates for both customers and non-customers of the TruEarth brand based on concept test data and the 80-30 rule. The study examines the differences in trial rates, awareness rates, availability rates, and average spend per purchase between customer segments. Ultimately, the projected dollar sales of the new pizza product are based on assumptions about the price, consumer perception (mediocre, average, or excellent), and penetration of the pasta product.

TruEarth Healthy Foods: Market Research for a New Product
The purpose of this case is to introduce students to the quantitative and qualitative
analysis necessary to make a new product launch decision. The case introduces the
A*T*A*R chain model of sales forecasting that BASES uses for new products. In
addition to all of this quantitative data, marketers rely on the intuition they have based
on their knowledge of their consumers, competition, and corporate strategy
1.) Exhibit 7 in the case shows the unadjusted trial rates for the new pizza from the
concept test. What would be the adjusted trial rate, after applying the 80-30 rule,
for non-customers of the brand?
A. 54 %
B. 27 %
C. 23.7 %
D. 20.4 %
2.) Exhibit 7 in the case shows the unadjusted trial rates for the new pizza from the
concept test. What would be the adjusted trial rate, after applying the 80-30 rule,
for customers of the Tru Earth brand?
A. 79%
B. 36.7%
C. 39.5%
D. 55%
3.) Eckstein conducted a BASES II Line Extension concept test for the new pizza
with customers of TruEarth brand as well as non-customers who never used the
TruEarth brand. Which of the statements about the computations is/are true
about the data and calculations from this concept test?
4.) The trial rates for customers & non-customers are different?
True or False
5.) The awareness rates for customers & non-customers are different?
True or False

6.) The availability rates (ACV distribution) for customers & non-customers are different
True or False
7.) The average spend per purchase for customers & non-customers are different
True or False
8.) The projected dollar sales of the new pizza product is based on assumptions
about __________(check all that apply)
- Price of the new pizza?
- whether consumers perceive the product as mediocre, average, or
excellent?
- penetration of the pasta product?
- None of the above