Analyzing the Statistics of TruEarth Pizza

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Pizza Stats Trial Purchase Intent Def. would buy 18.0% % actual buy 80.0% "Def." purchases 14.4% Probably buy 43.0% % actual buy 30.0% "Prob." purchases 12.9% Trial rate (def + prob) 27.3% Marketing Plan Adjustment Gross Rating points 800.0 Projected Consumer Awareness 21.5% Calculated as: ((225*.12)+(75*.5))/300 ACV 40.0% Markeing Adjusted Trial Rate Trial Rate x Awarenss x ACV 2.3% Target Households 58.8 Trial Households 1.4 Repeat Purchase Inputs Trial households 1.4 MM Repeat Purchase Occ. 2 Repeat Trans. Amounts $12.38 Repeat Rate Mediocre 21.00% Average 37.00% Excellent 49.00% TOTAL $34,664,000.00 Calculated as Trial households x Repeat Purchases x Trans Amount Sensitivity Analysis Total Target 58.8 Penetration Quality (Repeat Rate) Mediocre(.21) Average(.37) Excellent(.49) 5.00% 44.040612 49.864164 54.231828 10.00% 88.081224 99.728328 108.463656 15.00% 132.121836 149.592492 162.695484 Exhibits 6, 8, 9, and 10 provide a great deal of information to TruEarth Pizza, including several necessary areas of continuing product development. Creating more appealing varieties and finding a way to increase the convenience factor, for example, would be excellent ways to improve customer response to the product. There are other, more distressing problems that suggest the entire model might be flawed and ultimately unprofitable: two of the most substantial dislikes of the

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