Create sensitivity analysis

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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 (obtained from external web searches) for repurchase rate and number of repeat purchases made in a year, and come up with a first-year sales forecast (hint: use the calculation sheet template provided).

Create a sensitivity analysis around any variables that you believe may significantly affect the sales forecast?

Reference no: EM133340806

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