284595216-natureview-farm-case-analysis.xlsx
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Option 1 (8 oz.)
Ad Plan Incremental Sales (Units) Slotting fees Gross Profit Less Ad Costs Less Incremental SGA Less Slotting Fees Trade Promotion Expense Less Broker's Commissions Profit Contribution
6 SKU of 8 Oz to Supermarket 20 Supermarket Chains 2 Regions $1,200,000 per region per annum text 35,000,000 units per annum text $10,000 per Chain per SKU text $5,220,950 formula = units sold * $ con ($2,400,000) 2 Regions ($320,000) $200K sales + $120K mkt text ($1,200,000) 20 Chains, 6 SKU per Chain ($870,000) 11 Supermarkets in NE, 9 in West, 4 times p.a. ($642,838) 4% of sales formula = MSP * units sold ($211,888)
Sales Growth
$16,070,950
Option 2 (32 oz.)
Ad Plan Incremental Sales (Units) Slotting fees Gross Profit Less Ad Costs Less Incremental SGA Less Slotting Fees Trade Promotion Expense Less Broker's Commissions Profit Contribution
Market Share
sales growth = MSP * units 1.5% of supermarket yogurt sales (last year 2.0% of supermarket yogurt 6-8 oz sales (la
4 32 Oz SKU to Supermarket 64 Supermarket Chains 4 Regions $120,000 per region per annum 5,500,000 units per annum $10,000 per Chain per SKU $3,769,425 ($480,000) 4 Regions ($160,000) Half of Option One ($2,560,000) 64 Chains 4 SKU ($1,024,000) 64 Chains 2x per annum ($368,577) 4% of sales ($823,152)
text text text formula = units sold * $ con text
text formula = MSP * units sold
Sales Growth
$9,214,425
Market Share sales growth = MSP * units 10.3% of 32oz yogurt sales nationally (last y
Option 3 (Multipack) Ad Plan Incremental Sales (Units) Free Cases (slotting) fee Gross Profit Less Ad Costs Less Free Cases Less Broker's Commissions Profit Contribution
2 SKU of Multipack to Natural Foods Channel ($250,000) text 1,800,000 units per annum text ($82,927) 2.5% of Manufacturer Sales (net of broker fees) $1,247,073 ($250,000) ($82,927) formula = 1.8m units sold * ($132,683) 4% of sales formula = MSP * units sold $781,463
Sales Growth Year 1
$3,317,073
Market Share sales growth = MSP * units 11.2% of natural foods channel (last year)
Option 1 Option 1 Supermarket ormula = units sold * $ contribution per unit (Note rounding in Table TN-2) Option 1
ormula = MSP * units sold * 4% (Note rounding in Table TN-2)
ales growth = MSP * units sold ket yogurt sales (last year) ket yogurt 6-8 oz sales (last year)
Option 2 Option 2 Supermarket ormula = units sold * $ contribution per unit Option 2
Option 2, Supermarkets ormula = MSP * units sold * 4%
ales growth = MSP * units sold gurt sales nationally (last year)
Option 3 Option 3
ormula = 1.8m units sold * MSP * 2.5% ormula = MSP * units sold * 4%
ales growth = MSP * units sold oods channel (last year)
$'000 One Year Revenue One Year Profit Revenue after 2 Years NPV of Profit over 2 Years Revenue after 5 Years NPV of Profit over 5 Years
Option 1 Option 2 Option 3 (8 oz.) (32 oz.) (Multipack) 16,071 9,214 3,317 (212) (823) 781 19,285 11,057 3,815 1,436 1,310 1,608 33,325 19,107 5,802 11,013 10,640 4,798
Assumptions for Option 1
Supermarket Channel - 8oz
Number of SKU Regions Predicted Growth Marketing Support SG&A Uplift Incremental Sales # Chains # Chains
6 2 20% per annum - after first year $1,200,000 per region per year $320,000 per annum 35,000,000 additional units 11 in Northeast 9 in West
Calculations for Option 1 $'000 Year Incremental Sales (million units) Incremental Sales Less Manufacturing Costs Incremental Gross Margin Less Broker Fees Less Slotting Fees Trade Promotions Marketing Support Incremental SG&A Incremental Profit 2 Year NPV 5 Year NPV
Assumptions - Option 2 Number of SKU Regions Predicted Growth Marketing Support
8.0% Discount Rate 8.0% Discount Rate
1 35.00 16,071 (10,850) 5,221 (643) (1,200) (870) (2,400) (320) (212)
2 42.00 19,285 (13,020) 6,265 (771) 0 (870) (2,400) (320) 1,904
$1.44 Million $11.01 Million
Supermarket Channel - 32oz 4 4 20% per annum - after first year $120,000 per region per year
SG&A Uplift Incremental Sales # Chains
$160,000 per annum 5,500,000 additional units 64 Nationally
Calculations for Option 2
Assumptions - Option 3 Number of SKU Size Predicted Growth Marketing Support SG&A Uplift Incremental Sales
$'000 Year Incremental Sales (million units) Incremental Sales Less Manufacturing Costs Incremental Gross Margin Less Broker Fees Less Slotting Fees Trade Promotions Marketing Support Incremental SG&A Incremental Profit
1 5.50 9,214 (5,445) 3,769 (369) (2,560) (1,024) (480) (160) (823)
2 Year NPV 5 Year NPV
$1.31 Million $10.64 Million
8.0% Discount Rate 8.0% Discount Rate
2 6.60 11,057 (6,534) 4,523 (442) 0 (1,024) (480) (160) 2,417
Natural Foods Channel - Multipack 2 32 Oz 15% per annum - after first year $250,000 per annum $0 per annum 1,800,000 additional units
Calculations for Option 3 $'000 Year Incremental Sales (million units) Incremental Sales Less Manufacturing Costs Incremental Gross Margin Less Broker Fees Less Free Cases Trade Promotions Marketing Support Incremental SG&A Incremental Profit
1 1.80 3,317 (2,070) 1,247 (133) (83) 0 (250) 0 781
2 2.07 3,815 (2,381) 1,434 (153) 0 0 (250) 0 1,032
2 Year NPV 5 Year NPV
8.0% Discount Rate 8.0% Discount Rate
$1.61 Million $4.80 Million
Reference From Exhibit 6 From Exhibit 6 Option 1 Comment 4 Option 1 Option 1 Option 1 Option 1 Option 1
3 50.40 23,142 (15,624) 7,518 (926) 0 (870) (2,400) (320) 3,002
4 60.48 27,771 (18,749) 9,022 (1,111) 0 (870) (2,400) (320) 4,321
Reference From Exhibit 6 Option 2 (Nationally) Option 1 Comment 4 Option 2 (Nationally)
5 72.58 33,325 (22,499) 10,826 (1,333) 0 (870) (2,400) (320) 5,903
35,000 growing at 20% pa Units * $0.46 per unit Units * $0.31 per unit Sales * 4% 20 Chains * 6 SKU Price * # Retailers Per Region * 4 times p.a. $1.2mm per Region Per Annum Fixed Annual Amount
Option 2 (Nationally) Option 2 (Nationally) Option 2 (Nationally)
3 7.92 13,269 (7,841) 5,428 (531) 0 (1,024) (480) (160) 3,233
4 9.50 15,923 (9,409) 6,514 (637) 0 (1,024) (480) (160) 4,213
5 11.40 19,107 (11,291) 7,816 (764) 0 (1,024) (480) (160) 5,388
5,500 growing at 20% pa Units * $1.68 per unit Units * $0.99 per unit Sales * 4% 64 Chains, 4 SKU Price * # Retailers * 2 times p.a. $120,000 per Region Per Annum Fixed Annual Amount
Reference From Exhibit 6 From Exhibit 6 Yogurt Through Nat.Foods Stores Option 3 Option 3 Option 3
3 2.38 4,387 (2,738) 1,649 (175) 0 0 (250) 0 1,224
4 2.74 5,045 (3,148) 1,897 (202) 0 0 (250) 0 1,445
5 3.15 5,802 (3,620) 2,181 (232) 0 0 (250) 0 1,699
1.8mm growing at 15%pa Units * $1.84 per unit Units * $1.15 per unit 4% of sales 2.5% of sales in first year Not Required for Nat. Food Channel $120,000 per Region Per Annum
Ad Plan Incremental Sales (Units) Slotting fees Gross Profit Less Ad Costs Less Incremental SGA Less Slotting Fees Trade Promotion Expense Less Broker's Commissions Profit Contribution
6 SKU of 8 Oz to Supermarket 20 Supermarket Chains 2 Regions $1,200,000 per region per annum text 35,000,000 units per annum text $10,000 per Chain per SKU text $5,220,950 formula = units sold * $ con ($2,400,000) 2 Regions ($320,000) $200K sales + $120K mkt text ($1,200,000) 20 Chains, 6 SKU per Chain ($870,000) 11 Supermarkets in NE, 9 in West, 4 times p.a. ($642,838) 4% of sales formula = MSP * units sold ($211,888)
Sales Growth
$16,070,950
Option 2 (32 oz.)
Ad Plan Incremental Sales (Units) Slotting fees Gross Profit Less Ad Costs Less Incremental SGA Less Slotting Fees Trade Promotion Expense Less Broker's Commissions Profit Contribution
Market Share
sales growth = MSP * units 1.5% of supermarket yogurt sales (last year 2.0% of supermarket yogurt 6-8 oz sales (la
4 32 Oz SKU to Supermarket 64 Supermarket Chains 4 Regions $120,000 per region per annum 5,500,000 units per annum $10,000 per Chain per SKU $3,769,425 ($480,000) 4 Regions ($160,000) Half of Option One ($2,560,000) 64 Chains 4 SKU ($1,024,000) 64 Chains 2x per annum ($368,577) 4% of sales ($823,152)
text text text formula = units sold * $ con text
text formula = MSP * units sold
Sales Growth
$9,214,425
Market Share sales growth = MSP * units 10.3% of 32oz yogurt sales nationally (last y
Option 3 (Multipack) Ad Plan Incremental Sales (Units) Free Cases (slotting) fee Gross Profit Less Ad Costs Less Free Cases Less Broker's Commissions Profit Contribution
2 SKU of Multipack to Natural Foods Channel ($250,000) text 1,800,000 units per annum text ($82,927) 2.5% of Manufacturer Sales (net of broker fees) $1,247,073 ($250,000) ($82,927) formula = 1.8m units sold * ($132,683) 4% of sales formula = MSP * units sold $781,463
Sales Growth Year 1
$3,317,073
Market Share sales growth = MSP * units 11.2% of natural foods channel (last year)
Option 1 Option 1 Supermarket ormula = units sold * $ contribution per unit (Note rounding in Table TN-2) Option 1
ormula = MSP * units sold * 4% (Note rounding in Table TN-2)
ales growth = MSP * units sold ket yogurt sales (last year) ket yogurt 6-8 oz sales (last year)
Option 2 Option 2 Supermarket ormula = units sold * $ contribution per unit Option 2
Option 2, Supermarkets ormula = MSP * units sold * 4%
ales growth = MSP * units sold gurt sales nationally (last year)
Option 3 Option 3
ormula = 1.8m units sold * MSP * 2.5% ormula = MSP * units sold * 4%
ales growth = MSP * units sold oods channel (last year)
$'000 One Year Revenue One Year Profit Revenue after 2 Years NPV of Profit over 2 Years Revenue after 5 Years NPV of Profit over 5 Years
Option 1 Option 2 Option 3 (8 oz.) (32 oz.) (Multipack) 16,071 9,214 3,317 (212) (823) 781 19,285 11,057 3,815 1,436 1,310 1,608 33,325 19,107 5,802 11,013 10,640 4,798
Assumptions for Option 1
Supermarket Channel - 8oz
Number of SKU Regions Predicted Growth Marketing Support SG&A Uplift Incremental Sales # Chains # Chains
6 2 20% per annum - after first year $1,200,000 per region per year $320,000 per annum 35,000,000 additional units 11 in Northeast 9 in West
Calculations for Option 1 $'000 Year Incremental Sales (million units) Incremental Sales Less Manufacturing Costs Incremental Gross Margin Less Broker Fees Less Slotting Fees Trade Promotions Marketing Support Incremental SG&A Incremental Profit 2 Year NPV 5 Year NPV
Assumptions - Option 2 Number of SKU Regions Predicted Growth Marketing Support
8.0% Discount Rate 8.0% Discount Rate
1 35.00 16,071 (10,850) 5,221 (643) (1,200) (870) (2,400) (320) (212)
2 42.00 19,285 (13,020) 6,265 (771) 0 (870) (2,400) (320) 1,904
$1.44 Million $11.01 Million
Supermarket Channel - 32oz 4 4 20% per annum - after first year $120,000 per region per year
SG&A Uplift Incremental Sales # Chains
$160,000 per annum 5,500,000 additional units 64 Nationally
Calculations for Option 2
Assumptions - Option 3 Number of SKU Size Predicted Growth Marketing Support SG&A Uplift Incremental Sales
$'000 Year Incremental Sales (million units) Incremental Sales Less Manufacturing Costs Incremental Gross Margin Less Broker Fees Less Slotting Fees Trade Promotions Marketing Support Incremental SG&A Incremental Profit
1 5.50 9,214 (5,445) 3,769 (369) (2,560) (1,024) (480) (160) (823)
2 Year NPV 5 Year NPV
$1.31 Million $10.64 Million
8.0% Discount Rate 8.0% Discount Rate
2 6.60 11,057 (6,534) 4,523 (442) 0 (1,024) (480) (160) 2,417
Natural Foods Channel - Multipack 2 32 Oz 15% per annum - after first year $250,000 per annum $0 per annum 1,800,000 additional units
Calculations for Option 3 $'000 Year Incremental Sales (million units) Incremental Sales Less Manufacturing Costs Incremental Gross Margin Less Broker Fees Less Free Cases Trade Promotions Marketing Support Incremental SG&A Incremental Profit
1 1.80 3,317 (2,070) 1,247 (133) (83) 0 (250) 0 781
2 2.07 3,815 (2,381) 1,434 (153) 0 0 (250) 0 1,032
2 Year NPV 5 Year NPV
8.0% Discount Rate 8.0% Discount Rate
$1.61 Million $4.80 Million
Reference From Exhibit 6 From Exhibit 6 Option 1 Comment 4 Option 1 Option 1 Option 1 Option 1 Option 1
3 50.40 23,142 (15,624) 7,518 (926) 0 (870) (2,400) (320) 3,002
4 60.48 27,771 (18,749) 9,022 (1,111) 0 (870) (2,400) (320) 4,321
Reference From Exhibit 6 Option 2 (Nationally) Option 1 Comment 4 Option 2 (Nationally)
5 72.58 33,325 (22,499) 10,826 (1,333) 0 (870) (2,400) (320) 5,903
35,000 growing at 20% pa Units * $0.46 per unit Units * $0.31 per unit Sales * 4% 20 Chains * 6 SKU Price * # Retailers Per Region * 4 times p.a. $1.2mm per Region Per Annum Fixed Annual Amount
Option 2 (Nationally) Option 2 (Nationally) Option 2 (Nationally)
3 7.92 13,269 (7,841) 5,428 (531) 0 (1,024) (480) (160) 3,233
4 9.50 15,923 (9,409) 6,514 (637) 0 (1,024) (480) (160) 4,213
5 11.40 19,107 (11,291) 7,816 (764) 0 (1,024) (480) (160) 5,388
5,500 growing at 20% pa Units * $1.68 per unit Units * $0.99 per unit Sales * 4% 64 Chains, 4 SKU Price * # Retailers * 2 times p.a. $120,000 per Region Per Annum Fixed Annual Amount
Reference From Exhibit 6 From Exhibit 6 Yogurt Through Nat.Foods Stores Option 3 Option 3 Option 3
3 2.38 4,387 (2,738) 1,649 (175) 0 0 (250) 0 1,224
4 2.74 5,045 (3,148) 1,897 (202) 0 0 (250) 0 1,445
5 3.15 5,802 (3,620) 2,181 (232) 0 0 (250) 0 1,699
1.8mm growing at 15%pa Units * $1.84 per unit Units * $1.15 per unit 4% of sales 2.5% of sales in first year Not Required for Nat. Food Channel $120,000 per Region Per Annum
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