Reference no: EM133006485

Pedro is launching his new Vintage Port in both the North and South regions of Slovenia. The population totals 2,900,000 households, 63% of which live in the North. Across both regions, he expects total awareness levels to reach 43%, ACV% distribution to be 51%, and trial rates are projected to be 16%. Across both regions, repeat rates are likely to be 25%.

Problem 1: Pedro discovers that not only will awareness levels be different (80% in the North and 30% in South), but trial rates will differ too: 30% in the North and 5% in the South. Under these assumptions, what is the projected trial volume in the North, if households purchase two bottles at trial?

Problem 2: Pedro discovers that with a shift in spending he can achieve awareness of 80% in the North and 30% in the South. What is the total awareness?

Problem 3: If trial sales are made at prices that yield a margin of $12.00 per bottle, what is the expected total contribution of the new port if households in the northern region purchase two bottles at trial and southern region households purchase one bottle at trial?