Reference no: EM132299621

Identify an experiment to test the research question.. "Will TruEarth be able to get the customers from Rigazzi’s launch to turn and buy with them instead?" if TruEarth launches refrigerated pizza after competitor Rigazzi?

Background info:

TruEarth Healthy Foods penetrated the market through its whole grain wheat pastas. This was a great hit among the consumers. However, there was a change in the food industry as the trend grew in the ‘Home Meal Replacement’ category. People had very less time to spend in the kitchen. The company called this segment as ‘time poverty’. Hence, TruEarth chose to introduce new products along its product lines to cater to the HMR segment. Previously, refrigerated pizza was unachievable due to technology reasons. In today’s global era and technological advancements, refrigerated pizza is made possible by TruEarth. The distribution channel has grown to a large extent that to place a product on the shelf costs more than when the company had much less shelf space to fill. In other words, if a new product fails, then the company would have to accept huge loss for the amount of inventory they need to put in the market in its initial phases.

Additionally, the success of the refrigerated pizza depends on delivering a crust similar to a take-out pizza. Other factors include low priced pizza offering in the market by Kraft and Nestle and catering to the different consumer preferences such as restaurants, deliveries and take-away. Rigazzi is the closest competitor is planning to offer products similar to TruEarth’s.

The management’s question or the decision problem is ‘should TruEarth respond quickly and gain the first mover’s advantage over Rigazzi by launching before Rigazzi or launch after Rigazzi, losing on the first mover advantage but gain more insight into the new product acceptance by customers.