– From Table-I (attached below), it is found that a low customer awareness with a low ACV and a mediocre product gives a Montreaux sales volume of 17.44 M. A medium level of customer awareness with a medium ACV and an average product gives a sales volume of 25.11 M and a high level of customer awareness with a high ACV with an excellent product gives a sale volume of 39 M. So, an overly aggressive forecast would be 39M and a conservative forecast would be 17.44 M.
– Given the fact that Apollo is a global giant in the foods industry and is one of the largest players in the confectionary market, it can be assumed that it will be able to create a high level of customer awareness amongst its customers. It is also mentioned that Apollo “knew its customers well”, so through effective marketing campaigns and intial promotional launch offers, it can create a high level of customer awareness.
– Also, Apollo wants to market the product through its large sales force, making use of its existing relationships with the channel partners, it can be assumed that a high level of ACV will be established through retailers, distributors of the grocery, drug stores and supermarkets under traditional channels.
– Attribute ratings for the $4.49 5oz. pouch show that 87% of the customers agree that the chocolate is better for them than any other chocolate, 85% customers agree it would be of high quality and 84% say it would taste great.
– So, considering a high customer awareness and high ACV, it is seen that the acceptable hurdle rate of $30 M is met, even if the product is a mediocre, average or excellent.
With high customer awareness and high ACV distribution, and an average product, and considering the above attributes, a demand of 36M can be forecasted.
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