Truearth Financial Analysis
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- Date Submitted: 03/24/2014 05:09 AM
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TruEarth Financial Analysis
Total Purchase Intent "Definite Purchases" "Probable Purchases" Trial Rate Cocina Fresca Pasta Customers Adjusted Trial Rate Non- Cucina Fresca Pasta Customers Adjusted Trial Rate 14.40% 12.90% 27.30% 27.30%*50%*40%= 5.46% 27.30%*12%*40%=1.31%
Scenario 1: 11% Cucina Fresca Pasta Consumers
Marketing Adjusted Trial Rate Cucina Fresca Pasta 5.46%*(11%*58‘800‘000) Customers Trial Purchases =353'153 Non- Cucina Fresca Pasta 1.31%*(89%*58‘800‘000) Customers Trial Purchases = 685'759 Total Trial Purchases 1'038'911 Sales Volume Estimate Year 1 Excellent Product 1‘038‘911*2*49% = 1'018'133.10 1‘038‘911+1‘018‘133.10 = 2'057'044 2’057’044*12.38 = $ 25'466'210.04 25'466'210.04*(1-0.35) = $ 16'553'036.52 16'553'036.5212‘000‘000 =$ 4'553'036.52 Average Product Mediocre Product Projected Customer Awareness Marketing-Adjusted Trial Rate
16.18%
1.77%
Repeat Volume
1‘038‘911*2*37% 1‘038‘911*2*21% = 768'794.38 = 436'342.76
Total Purchases Retail Sales Volume TruEarth Sales Volume In Excess of Return Requirements
1'807'706 $ 22'379'396.70 $ 14'546'607.85
1'475'254 $ 18'263'645.58 $ 11'871'369.63
$ 2'546'607.85
$ -128'630.37
As Cucina Fresca's retail sales had a high growth rate between the 3rd quarter of 2006 and 2007 (194.44%cc), we may predict that the same principle will apply for the whole grain pizza. Therefore, if the initial sales volume will grow between the first and second year of the pizza launch, for the Mediocre Product, our future sales volume will most likely cover our initial return requirements in the 2nd year and our losses from the 1st year.
Scenario 2: 5% Cucina Fresca Pasta Consumers
Marketing Adjusted Trial Rate Cucina Fresca Pasta Customers Trial Purchases Non- Cucina Fresca Pasta Customers Trial Purchases Total Trial Purchases Sales Volume Year 1 Excellent Product 874'663.17 1'767'177 $ 21'877'646.45 $ 14'220'470.19 $ 2'220'470.19 Average Product 660'459.95 1'552'973 $ 19'225'810.51 $...
Total Purchase Intent "Definite Purchases" "Probable Purchases" Trial Rate Cocina Fresca Pasta Customers Adjusted Trial Rate Non- Cucina Fresca Pasta Customers Adjusted Trial Rate 14.40% 12.90% 27.30% 27.30%*50%*40%= 5.46% 27.30%*12%*40%=1.31%
Scenario 1: 11% Cucina Fresca Pasta Consumers
Marketing Adjusted Trial Rate Cucina Fresca Pasta 5.46%*(11%*58‘800‘000) Customers Trial Purchases =353'153 Non- Cucina Fresca Pasta 1.31%*(89%*58‘800‘000) Customers Trial Purchases = 685'759 Total Trial Purchases 1'038'911 Sales Volume Estimate Year 1 Excellent Product 1‘038‘911*2*49% = 1'018'133.10 1‘038‘911+1‘018‘133.10 = 2'057'044 2’057’044*12.38 = $ 25'466'210.04 25'466'210.04*(1-0.35) = $ 16'553'036.52 16'553'036.5212‘000‘000 =$ 4'553'036.52 Average Product Mediocre Product Projected Customer Awareness Marketing-Adjusted Trial Rate
16.18%
1.77%
Repeat Volume
1‘038‘911*2*37% 1‘038‘911*2*21% = 768'794.38 = 436'342.76
Total Purchases Retail Sales Volume TruEarth Sales Volume In Excess of Return Requirements
1'807'706 $ 22'379'396.70 $ 14'546'607.85
1'475'254 $ 18'263'645.58 $ 11'871'369.63
$ 2'546'607.85
$ -128'630.37
As Cucina Fresca's retail sales had a high growth rate between the 3rd quarter of 2006 and 2007 (194.44%cc), we may predict that the same principle will apply for the whole grain pizza. Therefore, if the initial sales volume will grow between the first and second year of the pizza launch, for the Mediocre Product, our future sales volume will most likely cover our initial return requirements in the 2nd year and our losses from the 1st year.
Scenario 2: 5% Cucina Fresca Pasta Consumers
Marketing Adjusted Trial Rate Cucina Fresca Pasta Customers Trial Purchases Non- Cucina Fresca Pasta Customers Trial Purchases Total Trial Purchases Sales Volume Year 1 Excellent Product 874'663.17 1'767'177 $ 21'877'646.45 $ 14'220'470.19 $ 2'220'470.19 Average Product 660'459.95 1'552'973 $ 19'225'810.51 $...