Factor 2: Ready meals market is mature and organic food is experiencing slower but steady growth. The industry of healthy foods is going to continue to grow and become an even bigger competitive market as it is right now.
As pointed out in the case, pizza is essentially an indulgence food. This would also make it easier to increase customer penetration and brand awareness for the pasta line.
TruEarth used only high quality ingredients, and hence was susceptible to some extent to suppliers bargaining power. The company only uses high-quality durum wheat and mostly organic ingredients. The concept of the new pizza line would be a pizza with a whole grain curst and high quality toppings that is fresher than frozen pizza, healthier than take-out, and easily customizable.
For any chance of success TruEarth needs to have a product in this market as soon as possible.
In lateTruEarth took advantage of growing demand for quick home meal requirements, refrigerated fresh pasta, and whole grain food options that did not sacrifice taste to become the first company to develop a fresh whole grain pasta line called Cucina Fresca.