Step 3: Calculate total purchases (trial plus repeat) Excellent Repurchase depends on the perceived quality Whenever you're uncertain, calculate "what it scenarios Average Medice Repeat rate of households repurchasing) Repeat purchase occasions Total repeat purchases Exhibits Table B Total trial households times repeat ratetimes repeat purch occasions Total purchases in units (Trial. Repeat) Step 4: Convert sales in units to $$ sales volume Retail selling price average spend per purchase retail) Retail sales volume 55 Retailer gross marginin inter Retailer's cost of goods sold (in %) Next, well convert the sales in units to dollar sales Exhibits Exhibits Multiply units times selling price. This is Retaller Sales Volume Case text Sales. Cost of Goods Sold Retailer Margin Trh sales volume Calculate the reser's cost of goods sold. That is Tu ta' sales volum Table B Awareness and Purchase Behavior Estimates Target Households & Awareness Target Households (30% bigger than pasta) Cucina Fresca Pasta Customers Customer Awareness Non-Customer Awareness ACV Distribution Purchase Assumptions Units per purchase (pizza kit + 1.25 toppings) Average spend per purchase (retail) Repeat purchase occasions % Repurchasers (Excellent product) 58.8MM 11% 50% 12% 40% 1.25 $12.38 2.0 49% Exhibit 5 Fresh Pasta Purchase Volume Estimate, Year 1 Trial Purchase Intent Definitely would buy % of "Definites" who actually buy "Definite" Purchases Probably would buy % of "Probables" who actually buy "Probable" Purchases 27% 80% 21.6% 49% 30% 14.7% Repeat Purchase Inputs Trial Households (MM) Repeat Purchase Occasions Repeat Transaction Amounts Repeat Rate, by Product Scenario Mediocre Product Average Product Excellent Product Trial Rate (Definite + Probable) 36.3% Marketing Plan Adjustment Gross Rating Points Projected Consumer Awareness All Commodity Volume distribution (ACV) Repeat Volume, by Product Scenario (MM Mediocre Product Average Product Excellent Product 800 17% 50% 3.0% Marketing Adjusted Trial Rate Trial Rate x Awareness x ACV Target Households (MM) a Trial Households (MM) 45.2 1.4 a Target households based on addressable market in metropolitan areas with annual household income over $50K Step 3: Calculate total purchases (trial plus repeat) Excellent Repurchase depends on the perceived quality Whenever you're uncertain, calculate "what it scenarios Average Medice Repeat rate of households repurchasing) Repeat purchase occasions Total repeat purchases Exhibits Table B Total trial households times repeat ratetimes repeat purch occasions Total purchases in units (Trial. Repeat) Step 4: Convert sales in units to $$ sales volume Retail selling price average spend per purchase retail) Retail sales volume 55 Retailer gross marginin inter Retailer's cost of goods sold (in %) Next, well convert the sales in units to dollar sales Exhibits Exhibits Multiply units times selling price. This is Retaller Sales Volume Case text Sales. Cost of Goods Sold Retailer Margin Trh sales volume Calculate the reser's cost of goods sold. That is Tu ta' sales volum Table B Awareness and Purchase Behavior Estimates Target Households & Awareness Target Households (30% bigger than pasta) Cucina Fresca Pasta Customers Customer Awareness Non-Customer Awareness ACV Distribution Purchase Assumptions Units per purchase (pizza kit + 1.25 toppings) Average spend per purchase (retail) Repeat purchase occasions % Repurchasers (Excellent product) 58.8MM 11% 50% 12% 40% 1.25 $12.38 2.0 49% Exhibit 5 Fresh Pasta Purchase Volume Estimate, Year 1 Trial Purchase Intent Definitely would buy % of "Definites" who actually buy "Definite" Purchases Probably would buy % of "Probables" who actually buy "Probable" Purchases 27% 80% 21.6% 49% 30% 14.7% Repeat Purchase Inputs Trial Households (MM) Repeat Purchase Occasions Repeat Transaction Amounts Repeat Rate, by Product Scenario Mediocre Product Average Product Excellent Product Trial Rate (Definite + Probable) 36.3% Marketing Plan Adjustment Gross Rating Points Projected Consumer Awareness All Commodity Volume distribution (ACV) Repeat Volume, by Product Scenario (MM Mediocre Product Average Product Excellent Product 800 17% 50% 3.0% Marketing Adjusted Trial Rate Trial Rate x Awareness x ACV Target Households (MM) a Trial Households (MM) 45.2 1.4 a Target households based on addressable market in metropolitan areas with annual household income over $50K
