Before you start the assignment, read the "Concept testing" note and the "Nestle Contadina Pasta and Pizza (A)" case(you may skim through the pasta part and focus on pizza
You will most likely want to use Excel for the calculations but please submit a PDF file. Do not upload a spreadsheet. Make sure that I can follow how you have obtained the different numbers.
• Using the BASES model described in Exhibit 9 of the case, forecast the estimated demand (trial and repeat) for the two pizza options under consideration: Pizza and Topping and Pizza Only. Most of the data needed for the forecasting exercise is available in Exhibit 21 but there are some numbers in the text and other exhibits. Hint: In Exhibit 21 there is a big difference between Contadina users and non-users on the top two box scores. This will affect the forecast depending on what proportions are used for Contadina users vs. nonusers in the population.
• Calculate the expected revenues and make a go/no go recommendation based on the metric used by Nestle.
• On p. 14 (2nd to last paragraph), Nestlé’s marketing research department cautions us that parent brand usage could vary from 5% to 25%. Check the sensitivity of the forecast under 5%, 15%, and 25% parent brand penetration scenarios.