Question
BASES Model Projection Baseline Case Definitely would buy 23% % of Definites who actually buy 80% Definite Purchases 18% Probably would buy 40% % of
BASES Model Projection Baseline Case
Definitely would buy | 23% |
% of Definites who actually buy | 80% |
Definite Purchases | 18% |
Probably would buy | 40% |
% of Probables who actually buy | 30% |
Probable Purchases | 12% |
Trial Rate (Definite + Probable) | |
Households (MM) | 120 |
Penetration, % of households | 92% |
Awareness | |
ACV | |
Total Trial Households (MM) | |
% of households repurchasing | |
Repeat purchase occasions | |
Total Repeat Households (MM) | |
Total Purchases (Trial + Repeat) (MM) | |
Retail selling price | |
Retails sales volume (MM) | |
Montreaux sells its product at 65% of MSRP | |
Montreaux Sales Volume (MM) |
I have finished my chart but left the answers blank to see if someone could work out this model to see if I did it right and if not please show work so that I can see how you got your numbers. I am looking to understand how to do this correctly.
Exhibit 5 Montreaux Purchase Volume Estimate, Year One Trial Purchase Rate Repeat Rate by Product Definitely would buy Mediocre Product 23% 28% Probably would buy Average Product 40% 33% U.S. Households (MM) Excellent Product 120 38% Penetration 92% Repeat Purchase Occasions (units) Marketing Plan Adjustments Consumer Awareness ACV Low Support Low 14% 60% Medium Support Medium 17% 65% High Support High 20% 79% Pricing $4.49 Montreaux sells at 65% MSRP 65% Assumed penetration of chocolate users. NOTE: Acceptable hurdle rate is $30MM. All numbers are fictitious and used for illustrative purposes. Methodology 1. Trial Rate = "Definites" * 80% + "Probables" * 30% 2. Marketing-Adjusted Trial Rate = Trial Rate * % Awareness % ACV (distribution) Penetration 3. Trial Households - Households x Marketing-Adjusted Trial Rate 4. Repeat Volume = Trial Households * % of Households Repurchasing * Repeat Purchase Occasions 5. Total Purchases = Trial Purchases + Repeat Purchases 6. Retail Sales Value = Retail Selling Price * Retail Sales Volume 7. Sales Volume = Retail Sales Volume * .65; the NPD team assumed that Montreaux would sell its product for 65% of the MSRP. Exhibit 5 Montreaux Purchase Volume Estimate, Year One Trial Purchase Rate Repeat Rate by Product Definitely would buy Mediocre Product 23% 28% Probably would buy Average Product 40% 33% U.S. Households (MM) Excellent Product 120 38% Penetration 92% Repeat Purchase Occasions (units) Marketing Plan Adjustments Consumer Awareness ACV Low Support Low 14% 60% Medium Support Medium 17% 65% High Support High 20% 79% Pricing $4.49 Montreaux sells at 65% MSRP 65% Assumed penetration of chocolate users. NOTE: Acceptable hurdle rate is $30MM. All numbers are fictitious and used for illustrative purposes. Methodology 1. Trial Rate = "Definites" * 80% + "Probables" * 30% 2. Marketing-Adjusted Trial Rate = Trial Rate * % Awareness % ACV (distribution) Penetration 3. Trial Households - Households x Marketing-Adjusted Trial Rate 4. Repeat Volume = Trial Households * % of Households Repurchasing * Repeat Purchase Occasions 5. Total Purchases = Trial Purchases + Repeat Purchases 6. Retail Sales Value = Retail Selling Price * Retail Sales Volume 7. Sales Volume = Retail Sales Volume * .65; the NPD team assumed that Montreaux would sell its product for 65% of the MSRPStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started