Which of the two scenarios in the spreadsheet should the company pursue and why? Student Exercise Definitely

Which of the two scenarios in the spreadsheet should the company pursue and why?  

Transcribed Image Text:

Student Exercise Definitely would buy % of "Definites" who actually buy "Definite" Purchases Probably would buy % of "Probables" who actually buy "Probable" Purchases Trial Rate ("Definite" + "Probable Households (MM) Penetration, % of households Awareness ACV Total Trial Households (MM) % of households repurchasing Repeat purchase occasions Total Repeat Purchases (MM) Total Purchases (Trial + Repeat) ( Retail selling price Retail sales volume ($MM) Sell at 65% MSRP Sales Volume (SMM) Scenario 1: Mediocre product with high consumer awareness and high ACV 23% 80% 18% 40% 30% 12% 30% 120.0 92% 20% 79% 5.30 28% 4 5.94 11.24 65% Scenario 2: Excellent product with medium consumer awareness and medium ACV Student Exercise Definitely would buy % of "Definites" who actually buy "Definite" Purchases Probably would buy % of "Probables" who actually buy "Probable" Purchases Trial Rate ("Definite" + "Probable Households (MM) Penetration, % of households Awareness ACV Total Trial Households (MM) % of households repurchasing Repeat purchase occasions Total Repeat Purchases (MM) Total Purchases (Trial + Repeat) ( Retail selling price Retail sales volume ($MM) Sell at 65% MSRP Sales Volume (SMM) Scenario 1: Mediocre product with high consumer awareness and high ACV 23% 80% 18% 40% 30% 12% 30% 120.0 92% 20% 79% 5.30 28% 4 5.94 11.24 65% Scenario 2: Excellent product with medium consumer awareness and medium ACV

Answer rating: 100% (QA)

To determine which scenario the company should pursue we need to compare the potential profitability and market impact of Scenario 1 and Scenario 2 ba... View the full answer