Let us suppose Nestle is launching a new pet food product for dogs called WolfMeal - that
Question:
Let us suppose Nestle is launching a new pet food product for dogs
called "WolfMeal" - that is positioned as healthier and more nutritious and
digestible because it is less processed than the products currently on the market.
Their market research reveals a target population of 30 million consumers, of
which 45% are already Nestle customers. 30% of their existing customers are
believed to be aware of WolfMeal, while 10% of non-customers are believed to
be aware. The BASES survey done revealed that 30% of non-customers would
definitely buy and 32% would probably buy. Further, 40% of existing customers
said they would definitely buy, and 22% would probably buy. Nielsen estimates
that 90% of those who stated "definitely buy" would follow-through, and 40% of
those would "probably buy" would follow-through. Assume ACV will be between
50-60%. Use reasonable assumptions for repurchase
rate and number of repeat purchases made in a year, and come up with a first-
year sales forecast (see template I'm using linked below to determine the answer).
Conduct a sensitivity analysis around any variables that you believe may significantly affect
the sales forecast?