J M Smucker Company Marketing Essay

J M Smucker Company Marketing Essay J.M Smucker Company has been providing the quality products to consumers since 1879. Jeromer Monroe Smucker, the founder of Smucker Company introduced the Company with limited products of jams, jellies, and preserves. To grow existing brands, introduce new products, and make strategic acquisitions is the main J.M Smuckers corporate strategy. These three strategies are focus mainly on the North America. Today, Smucker Company exceeds in manufacturing and marketing of fruit spreads, retail packaged coffee, peanut butter, shortening and oils, ice cream toppings, sweetened, condensed milk, and health and natural beverage all across North America. J.M Smucker has its own house brand and is the owner of all trademarks except Pillsburry, the Barrelhead logo. Its house brand includes Smucker, Folgers, Dunkin Donut, Jif, Crisco, Eagle, R.W. Knudsen, Hungry Jack, Cafà © Bustelo, White Lily, Five Roses, and Carnation etc. With the policy of Owning and Marketing Number 1 brand sold all around the North America, Smucker Company has been able to remain in the top quartile of Fortunes magazine since the magazine created the ranking. SWOT Analysis Strengths The Company is able to become No. 1 food brand Company in North America because of its remarkable strengths. Smuckers has always been cautious in the series of the acquisition of new Company. Smuckers tries to acquire only established brands than building a new brand from scratch. They also focus on the only brands they think they could develop globally and reduce the number of unwilling items. Smuckers Company has the ability to shift sales to products with higher margins increasing the efficiency and pulling down the unit costs. J.M Smucker never back up themselves when it comes with competing branded food manufacturers or private-label manufacturers. Smuckers strengths also include its ability to keep employees happy and it remains Fortune Magazines top 25 companies. Weakness Even though the Company was doing better in USA, Canada, and Australia; however, globally the company was becoming less relevant. The Companys 2001 annual sales were far less comparatively to other big companys sales. The Company small size and limited product line made it less capable in competitive bargain advantages and in store production. The Company was lacking house-sale product and also lacking of effective marketing for their low sugar free jams. There could be a possible susceptible to lawsuits from product mislabeling. Opportunity J.M Company has been producing attractive products and brands. But huge competitors with the big scale such as Nestle were also encouraging Smuckers Company to go from limited product line to consolidation in order to have a smooth flow in the business. Thus co-branding with other companies, taking over the Multifoods, and targeting baby boomers those were looking for peanut butter substitutes makes the most of the opportunity. They also got the opportunity of a service division to restaurant, schools, hospital, college students, corporate, private schools, and country club. During the 90s the woman working outside was increasing remarkably; they were eating their lunches outside their houses that helps increase significant percentage in food market. The Company increase overall profitability. Threat There were many external threats to the Smucker Company; major one includes the competition such as Kraft, Nestle, and Campbell. Another threat concludes the fierce competition between the branded food manufacturer and private label manufacturer. Private manufacturers price was attractively below then the branded label. There was a significant increase in the fruit prices from growers that leads the Company use less real fruit decreasing the quality of the product. Consumer tastes were also considers a substantial psychological threat which could make the customer substitute the Smuckers product with others. Recommendation Smucker is a small Company comparing to the giant Company like Nestle. In the competitive market, Smuckers has done its best performance by acquiring the other company making the Company looks bigger. But such rapid consolidation can cause a lot of problem. The latest addition of Crisco and Jiff, as well as much other small and big company has created much concern for the Smukers company. Smuckers sales was projected to go up from $ 651 million in 2001 to 3$ billion in 2002, nearly four times larger. Such marketing plan can cause the Corporates culture and management problem. Smuckers Company need to take it easy in the acquisition process and shouldnt rush trying to increase the majority sell. Smuckers must bring change in the management and make sure of the Companys better culture. The management of each unit needs to be reorganized with a new division. The second recommendation to Smuckers Company is while making a decision weather which product to keep on the market. Company should only focus on the profitability unit and eliminate the product that hasnt added any value to the companys operation. Doing so, Company will have a strong control into its operation. Company should try its best to regulate on further horizontal integration until it is well establish and ready for the vertical integration. For the continued success of the company, research and development would be very important. R D has made it possible for the companys largest growth segment in their Un-Crustable products. Improvement in the technology and innovation will offer the Company with best packaging design that will increase the number of customers. They should also investigate the cost saving measures in production, marketing, and distribution because the market for Smuckers is quiet cost sensitive. Product and process innovation will definitely bring the cost benefit to the company. .

Free Essays - A Clockwork Orange :: Clockwork Orange Essays

  Clockwork Orange   Ã‚  Ã‚  Ã‚  Ã‚   by   Ã‚   Anthony Burgess   This novel is short–only being about 180 pages–but looks may deceive you, or in other words don’t judge a book buy its cover or its thickness. A Clockwork Orange is actually 360 pages because you have to read between the lines. You may think that the story’s theme is that the future will be filled with horrible decadent violence (that is what I first thought), but if you read between the lines you will understand that this book is written for one main purpose, a purpose other than entertainment.   Ã‚     A Clockwork Orange was written in 1962,   story about the future which was meant to be around 1995 to 2000 (a car used in the story called a 95' Durango). A boy about seventeen, Alex the narrator and main character living in London, rampages about with his â€Å"droogs† (friends) raping, stealing, beating and even killing people. Alex one day is caught for murder and jailed but two years later he is luckily freed twelve years before his sentence ends to take advantage of a new treatment for violent people like him that he volunteered for. He goes through the therapy and succeeds and returns back to civilization. He now becomes sick when he is about to commit a violent or sexual, but also when the Ninth Symphony by Beethoven plays (a minor defect from the treatment). Alex is driven to attempt suicide from this defect because he is locked within a chamber playing this song and does not accomplish his task. He is hospitalized and returns to his â€Å"ultra-violent† self while the inhumane treatment does not work because it does not even give people a choice about being violent.   While Alex helps to present the theme, two different outcomes are formed. First, Alex goes through a great change from being â€Å"ultra- violent† to becoming Lamb-chop and then back to being â€Å"ultra-violent†. Second, the theme defines the major conflict of the story. Although the conflict does not have to do with Alex directly, he helps to illustrate it. The conflict is not solved in the book and will probably never be solved, but it does bring up for debate what Anthony Burgess thinks about right or wrong, regarding   the controversial situation of a cycle of violence. â€Å"Violence makes Violence,† is what was once said to Alex by   P. R. Deltoid, his teacher from school before he went to prison. This book brings up . What do we do to someone who has committed a violent crime? Do we punish them with more violence, for instance death, or do

Essay --

Income inequality continues to increase in today’s world, especially in the United States. Income inequality means the unequal distribution between individuals’ assets, wealth, or income. In the Twilight of the Elites, Christopher Hayes, a liberal journalist, states the inequality gap between the rich and the poor are increasing widening, and there need to have things done - tax the rich, provide better education - in order to shortening the inequality gap. America is a meritocratic country, which means that everybody has equal opportunity to be successful regardless of their class privileges or wealth. However, equality of opportunity does not equal equality of outcomes. People are having more opportunities to find a better job, but their incomes are a lot less compared to the top ten percent rich people. In this way, the poor people will never climb up the ladder to high status and become millionaires. Therefore, the government needs to increase all the tax rates on rich people in order to reduce income inequality. 1. Tax Cuts Caused Income Inequality Income inequality is a big problem in the United States because the top, wealthiest American saw huge increases in their incomes, which the rest had their incomes go down. Bottom people do not have the same amount of money and the opportunity to move up the social ladder as the rich people do. In order to reduce income inequality, the government needs to tax the rich people more, and give poor people more money and more social services - education, food subsidies, health care. Tax cuts are only benefiting the richest people, and will widen the inequality gap between the rich and the poor. A recent report from the Congressional Research Service states, â€Å"as the top tax rates a... ...ot let this inequality gap continues to rise; therefore, the government needs to tax heavily onto the rich people, and redistribute their money to the poor. If income inequality continues to grow, the economy will break down. For example, if the housing price continues to rise because of the rich people, poor people will not have a place to live since they cannot afford to buy these expensive houses. When this happens, it will create another housing bubble because the houses are not worth buying, which means the market value of the house exceeds the house’s value; therefore, nobody will buy the house including the riches since they already have houses to live. Moreover, poor people do not believe they can get access to wealth because they cannot afford anything, and they cannot afford the tuition fees for a good education, which is the traditional route to success.

Emily Brontes Wuthering Heights: Life is Hard :: Wuthering Heights Essays

Wuthering Heights – Life is Hard Many times in life, people leave our lives and then come back into them.   However, we remember them, but they do not remember us.   The same thing happened in Emily Brontà «'s book Wuthering Heights.   Linton, taken by his mother to London after his birth, never knew his father, then when things happened, he came back home.   He had family fighting over where he was to live and whom he would be around.   Not knowing part of your family until after you are fifteen is hard.   Ã‚  Ã‚   Isabella took her son, after he was born, and moved to London away from Thrushcross Grange.   At the same time, she moved away from her husband, Heathcliff.   During the time that Isabella and Linton were gone, Isabella got sick and passed away.   Right before her death, a letter came saying that she was dying so Hindley went to visit her.   While he was there, she did passed on so he brought Linton back with him.   Once back, everyone looked after him and made him feel at home.   Ã‚  Ã‚   Heathcliff soon came to the knowledge that his son had returned to Wuthering Heights.   He then sent someone to Wuthering Heights to get Linton.   However, he did not know that Linton was already asleep so he did not get the boy that night.   The next day the boy was taken to Heathcliff at Thrushcross Grange.   The father and son were nothing alike, and Linton was intimidated by his father.   He did stay, and meet some of his relatives that he had never seen, who helped him adjust to living there.   Ã‚  Ã‚   Everyday in our lives we run into situations that we wish we had never been involved with.   I relate to the characters of Linton and Heathcliff.   I am like Linton because people know who I am, but I never remember meeting them, and am scared around them.   I also feel the same as Hindly might have of.   This is because I would want to see the person I did not know, but then I would not know how to cat around them.   In time people come around, but others, as with Heathcliff and Linton, never come around.   Ã‚  Ã‚   Everyday life is something we take for granted.

A life of ones own

If you wanted to discover how to find your own happiness, start examining yourselves and take a glance on this book entitled A Life of One's Own by Joanna Field.This is a book that merely touches every reader's mind and heart. There are 10 remarkable facts about this book. First is that it was written by Marion Milner, she uses the pseudonym Joanna Field in writing this book She was 34 years old then when she wrote the book. It is about a diary of a young woman who is candidly questioning herself and what she is doing with her life.(The International Journal of Psychoanalysis 2001,p.609-611). The basis of this writing is her own personal intimate diary that she kept over many years and was finally published in this book in 1934. (amazon.com)The book cited different events in the author's life and done in a matter like she was writing in a Diary which is exposed to all people.Emotion is one great key in an individual's happiness because according to her which was also cited in the boo k, â€Å"I want to draw and study a few things closely by feeling, not thinking.† A lot of her entries started with â€Å"I want.†(Field 1934).In this book she tries to summarize her discoveries in terms of psychic bisexuality in all of us realizing that: she ‘had not understood at all that a feminine attitude to the universe was really just as legitimate, intellectually and biologically, as a masculine one' – and just as necessary for both women and men (amazon.com).Marion Milner is an English psychologist who was born in London in 1900 and in her book she cited the wide-focus mode of paying attention.(MacDonald'spp.96-97) Here the term that best describes her point of view is the term focus wherein we should always try to center our best to what we truly aim in our life and strive hard to reach the goal.According to Milner herself, her aim for doing the book is to find out what are the experiences that really made her happy. She tries to pick out those m oments in her daily life which had been particularly happy and tries to record them in words. She goes over these records in order to see where happiness occurred. (Tacher/Putnam 1981,preface)Being mindful of our own actions is one key point that should be taken out by the readers. There's one remarkable thought cited in the book â€Å"I came to the conclusion then that â€Å"continual mindfulness†. . . must mean, not a sergeant major-like drilling of thoughts, but a continual readiness to accept whatever came.† (Field 1934, 8June).If you are going to ask me why there is a need for you to read this book is because of three precious reasons: First, it makes you discover your true self and be mindful of all your actions. Next is for you to find out what can really make you happy, your likes and dislikes.   and lastly if you have questions like what to do and how to live the way you really wanted to be happy, start reading and reflecting on this book.ReferencesField, Jo anna. (1934) A Life of One's Own. 8JuneMacdonald, Copthorne. Comments about Open Focus,   Toward Wisdom pp. 96-97 Tacher, Jeremy P. (1981) from the author's 1934 Prefacehttp://www.amazon.co.uk/Life-Ones-Own-Joanna-Field/dp/0860688216/ref=pd_rhf_p_1 http://www.painterskeys.com/clickbacks/discipline.htm

Wealth of Teaching

Vive been working as a teacher for a year and four months now. Yet my understanding of being a teacher is still evolving day by day. I realized that how I understood this profession was not yet substantial until I was Immersed In the actual teaching scenario. I realize that the books, lectures, and inputs given by my college professors, when I was just an education student, are just spectacles of what is in store for me. When I ask my students what course they are planning to take up, they tend to mention almost all the other courses other than education primarily because they live that they won't gain much from this course In the future.Right now, the standards of the world are geared towards determining the gains. People nowadays choose a career that will give them greater return of Investments with minimal sacrifice due, perhaps to the fast paced and technological world that we have, when everything we need and want can be acquired in an instant. There is some truth to that. If I am only after the monetary gains of this profession, I might have surrendered last year and should have furnished my resignation papers. To be honest, my salary seems to be Just sufficient for my dally needs. Just say, this profession Is not a dream Job for someone who wishes to have a great bank account. What fuels me then is the realization that I'm gaining a lot beyond the standards of the world. When I was a high school student, I really dreamt to be a teacher because of the great inspiration that my teachers gave me. I promised that one time I will be like them. Now that I am already teaching, I am amazed that my Inspirations for this vocation are still out there doing the thing that they fell in love with- teaching.Some of them are even ageing already in this profession yet still pursue the same passion since the first time I saw them. I believe that teaching, using some economic terms, utilizes love as the main capital. A teacher who still wants to teach is a person filled wi th love and ready to give and share love to others. I think that right now people seek and clamor for opportunities to express their love more In the things that they do, But teachers, Like me, do not need to make an effort to love more since loving Is embedded In our Job description.This sounds easy yet very challenging at the same time There are even times that even as young as I am, I am forced to grow old and be a parent to my student, to find solutions to problems I have not even encountered in my life, and to find hope from students who don't even see the light within them. Why do we do these things? We do these things definitely not because of the salary given to our employers but because finding the most loving thing to do Is Integral to the desire off real teacher.One of the commercials that I really enjoy watching because I feel I can perfectly elate with it is the Unsafe commercial about a teacher narrating her story of her teaching profession and answering the question, â€Å"Para casino aka baa bandwagon? † In the same way, I believe that this commercial perfectly illustrates how teachers are passionate about life because of what they do. I myself consider teaching as one of teaching excites me since it provides me with several new opportunities to express my deepest humanity in the act of loving others, particularly my students.But aside from being given the opportunity to love, I believe that another gain of caching is the experience of being loved. One of the concrete manifestations of this is my experience of having a family. Because of teaching, I experienced having more than an extended family in the person of my students and parent. I consider my students and parents as family members and not as clients. This is the reason why my students and teachers love me not as a business partner as well but as a relative ready to love them the same way.In the same way, Just recently, I saw some of my students who graduated last year. Seeing the m in their college uniforms is such a great feeling. But I guess the best part is to be able to update each other about what is new about them and being able to look back at the memories of high school. A heartwarming message was given to me by one of my students saying that I have contributed to his growth as a person, and that he is very thankful for all of the efforts that I have made Just for him to value his education.This made me realize that teaching entails sacrifice and emptying. We teachers empty ourselves as we meet our students in the classroom in the hope that they would be filled. Emptying in itself is a risk that we teachers face every day. In our daily grind, we give our whole selves to our students without a strong assurance of a concrete change. But as we give ourselves to our students, we rely on their goodness and infinite giftedness that someday whatever we are doing would help them find their real purpose and mission in their life.As they find themselves, we no t only help others towards greater self-discovery, rather we impart more hope to them as they further appreciate life in its fullest sense Likewise, the wealth that we received in the form of students' appreciation, parents' raises and the recognition of others seeing our capacity to be able to make a difference to the lives of others are more than the abundance of the love we have given and a part of ourselves that we have shared for this risk. Thus, great risk, greater returns.Contrary to the belief of other people, I am a living witness that there is, indeed, wealth in teaching. As a matter fact, this profession has been truly a gift for me since it is through this that Vive been experiencing a lot of growth beyond the monetary and worldly standards. To be given an opportunity to love and to experience the abundance of love is in itself satisfying because it continues to lead me to greater happiness and appreciation of the true meaning of life lived to the fullest and shared with other people.Sam is currently teaching at Xavier University High School – Atone De Canaan as the Social Studies teacher for various 3rd and 4th year classes. All in all, Sam handles 7 classes. He Handles the Social Order Club and the Youth Christian Life Community Clubs, which are two of the clubs under the socio-spiritual cluster of the said school.

Truearth Case Analysis

TruEarth Healthy Foods: Market Research for a New Product Introduction Case Analyses: * Isabel Eckstein the brand manager had let the introduction of the most successful product of the company (Pasta Kit) in 2006 which means that she has a very strong marketing background. * Competitors began offering similar products in 2008 which cause the growth to slow. * Some of their competitors are Nestle and Kraft. * The do not make a rash decision. The success of Cucina Fresca was a calculated risk based on significant research. The company only uses high-quality durum wheat and mostly organic ingredients. * The company further raised consumer awareness through several promotional programs, using coupons, magazine advertisements, and in-store demonstrations. * Idea generation. As the company grew, the idea generation process became a more systematic evaluation of consumer trends, with formal management brainstorming sessions. * Three important developments reshaped how consumers purchased gr oceries. The first important trend was a new, loosely defined food category in the United States— â€Å"home meal replacement† (HMR).An increase in dual-income households had led to higher disposable incomes coupled with â€Å"time poverty,† as both workers found themselves lacking the time to cook a meal and clean up afterward. Further, consumers had tired of unhealthy carryout and fast food and started seeking greater variety and freshness. Supermarkets began meeting HMR needs by enhancing their fresh, prepared food offerings. * There was no fresh whole grain pasta with broad distribution, with 85% of those in favour of the concept having never purchased it before. * Competitive Threat: Rigazzi Fresh Whole Grain Pasta. Pizzas were a core component of the Italian-American food category, with annual sales in the United States estimated at $53 billion in 2007. * suggested that 77% of consumers ate pizza at least once a month. * The store-bought refrigerated pizza market was 11% of sales and totaled $5. 8 billion, making it a larger market than refrigerated pasta, which was approximately $4. 4B in 2007. * pizza demand in key demographics had been hurt by health concerns and the popularity of diets that restricted or cut out carbohydrates. Eckstein believed this presented the perfect opportunity for TruEarth. Independent surveys of restaurant-goers showed that 33% of people had â€Å"strong interest† in a whole grain crust. * Major chains like Papa John’s and Pizza Hut had introduced whole wheat or multi-grain crusts * Kraft and Nestle are already huge players here with low-cost frozen pizza. RECOMMENDATION HAI YE FUU MEMORANDUM DATE:January 11, 2009 TO:Isabel Eckstein Brand Manager FROM:Brett Matlack RE:Introduction of Whole Grain Pizza Product The slowing growth of Cucina Fresca’s sales has placed our competitive edge in the fresh Italian food category in jeopardy.In an attempt to retain our leadership position and exte nd our product line, we have invested in the development of a new whole grain pizza. We must decide whether to launch our pizza offering. Our decision must take into consideration that the new product’s wholesales volume estimates must exceed $12 million to meet our return requirements. The decision-making process is time sensitive because one of our competitors, Rigazzi Brands, has already tested a whole grain pizza concept and is not far from introduction. Given these factors, we can either debut or suspend the product.Based on sales volume estimates and situation analysis, I recommend that the company launch the pizza. The introduction will result in a wholesales volume that exceeds our return requirements and these additional funds can be reinvested into the firm. Option I: Launch Whole Grain Pizza Product The launch of a whole grain pizza kit will capitalize on the same consumer trends that prompted the release of Cucina Fresca: growing demand for quick, customizable hom e meal replacements that are refrigerated and available in tasty, whole grain options.Also, pizza is a core component of the Italian-American food category that we cannot ignore because it is frequently purchased by customers on a monthly basis. Our whole grain pizza product resolves the time- and health-related concerns of American consumers in one of their favorite dishes (see Exhibit 1: SWOT Analysis for Whole Grain Pizza Product). The growing demand for a whole grain crust has been addressed by local pizzerias and take-out franchises, but not in the store-bought refrigerated pizza market. The immediate release of the pizza kit would allow us to penetrate this market before Rigazzi and benefit from first mover advantages.As a result, our 1st year wholesale volume estimates would exceed our return requirements by approximately $4. 5 million (see Exhibit 2: Whole Grain Pizza Concept Purchase Volume Estimate, Year 1 [Excellent]). The excess returns can be reinvested into the firm an d used to expand our manufacturing facilities or further extend our product line. If the pizza kit is launched, the firm must consider the potential consequences. We must assess the impact it will have on Cucina Fresca’s success and production, as well as the TruEarth image if the product flops (see Exhibit 1: SWOT Analysis for Whole Grain Pizza Product).Likewise, we must review the potential consequences if the wholesale volume estimate is calculated using the percentage repurchases when the product is perceived to be of mediocre or average quality (see Exhibit 3: Whole Grain Pizza Concept Purchase Volume Estimate, Year 1 [Mediocre, Average]. Option II: Do Not Launch Whole Grain Pizza Product The competitive environment of the pizza market and quality-related issues discovered in the BASES studies indicate that the whole grain pizza product should not be launched. Although the market generates high sales, it is extremely crowded and dominated by powerful players like Kraft a nd Nestle.Furthermore, the ability to market a tasty whole-grain pizza crust and communicate its benefits will be difficult because the American public perceives whole grains to be less appetizing than white flour. Attempting to change consumer preferences is timely and costly. By foregoing the release of the pizza kit, the company can focus solely on Cucina Fresca. The operating facilities will not have to worry about manufacturing two different product lines and our distribution infrastructure will not be overworked (see Exhibit 1: SWOT Analysis for Whole Grain Pizza Product).Likewise, our marketing team could concentrate on attempting to revive the pasta meals. This product has proven to be successful at one time. Investing all of our resources into the pizza product could be both disastrous and expensive considering we have no experience in this market category. However, by shelving the pizza, an opportunity is lost because our company would be ignoring the needs of a potentiall y profitable market. The health-conscious trend is not going away and our firm needs to expand our product line in order to retain our leadership as a gourmet, healthy alternative.Recommendation At this time, our company would benefit the most by launching the new whole grain pizza product. By not launching the pizza kit, our investments and time can be focused on expanding the pasta line and retooling the marketing campaign to improve sales; however, in order to diversify the TruEarth brand name, innovation is needed. Although the pasta market may seem safe, we must venture into new categories in order to raise brand awareness, seek new customers, and increase our profits. Exhibit 1: SWOT Analysis for Whole Grain Pizza Product Strengths| Weaknesses| Highly selective about ingredients * Existing infrastructure for coupons, magazine advertisements, in-store demonstrations * Existing formal 4-step process for research and development * Incremental investment for pizza less than pasta * Higher awareness of pizza product among Cucina Fresca customers * Successful market experience in launching new products (brand name awareness) * Existing manufacturing equipment and distribution infrastructure to get fresh food to shelves quickly * Easy preparation, but gives customers the chance to be involved in the cooking process * Permits customers to customize * Refrigerated pizza is considered tastier, more authentic than frozen pizza * Is a product for the whole family (8. /10 in mall-intercept) * 28% of home-trial users believe there is no need for improvement * 33% of respondents in mall-intercept considered the TruEarth name a favorable advantage| * Pizza kit only feeds 2-3 people * Consumers have to buy toppings separately * Limited selection of toppings and varieties offered * Considered too expensive ($12. 38 vs. $10. 09 for other refrigerated options, $11. 72 for takeout) * Only received 10% favorable to product in overall taste, texture, and quality * Limited time to product expiration (similar refrigerated manufacturing issues as Cucina Fresca) * If using same equipment, this may lead to bottlenecks in both operating facilities and distribution network| Opportunities| Threats| Leverage relationship with North Dakota durum wheat supplier to supply wheat for pizza dough * Expand serving size options * Offer single serving sizes for individual meals; whole pizzas to feed a family * Expand topping offerings * Contract with local cafes and other gourmet specialty restaurants to offer products in other store formats * Create a packaged bundle which includes Cucina Fresca and the pizza kit * Leverage TruEarth brand name to enter the pizza market * TruEarth is well-liked and considered to be high quality Utilize this to demonstrate the benefits/product attributes of the pizza product | * Health conscious mindset (e. g. ow carbohydrate diet) has hurt key demographics in pizza demand * Consumers may not purchase additional toppings * Rigazzi has test ed a pizza concept and is preparing to introduce it * Competitors may quickly replicate whole-grain pizza kit and price them lower to win larger share of the market * Nestle and Kraft dominate the frozen-pizza market * Our pizza dough’s quality may not be comparable to freshly made takeout * Pizza market is extremely crowded (options include takeout, delivery, refrigerated) * If product succeeds, product facilities may struggle to manufacture two lines (Cucina Fresca placed on back burner, limited production) * If product fails, damage to TruEarth name may make it harder to launch new products in future| Exhibit 2: Whole Grain Pizza Concept Purchase Volume Estimate, Year 1 (Excellent) Total Purchase Intent| Definitely would buy| 18. 00%| % of â€Å"Definites† who actually buy| 80. 00%| â€Å"Definite† Purchases| 14. 40%| Probably would buy| 43. 00%| % of â€Å"Probables† who actually buy| 30. 00%| â€Å"Probable† Purchases| 12. 90%| Trial Rate | 27 . 30%| Marketing Plan Adjustment| Target Households| 58,500,000| Cucina Fresca Pasta Customers | 6,435,000| Non- Cucina Fresca Pasta Customers| 52,065,000|Customer Awareness| 50. 00%| Non-Customer Awareness| 12. 00%| All Commodity Volume Distribution (ACV)| 40. 00%| Marketing Adjusted Trial Rate| Cucina Fresca Pasta Customers Adjusted Trial Rate | 5. 46%| Non- Cucina Fresca Pasta Customers Adjusted Trial Rate| 1. 31%| Cucina Fresca Pasta Customers Trial Purchases| 351,351| Non- Cucina Fresca Pasta Customers Trial Purchases| 682,051. 5| Total Trial Purchases| 1,033,402,| Repeat Purchase Inputs| Repeat Purchase Occasions| 2. 00| Repeat Rate, by Product Services| Excellent Product| 49%| Repeat Volume, by Product Scenario| Excellent Product| 1,012,733,| Total Purchases| 2,046,135| Total Sales Volume|Retail Sales Volume| $25,331,151. 30| TruEarth Sales Volume| $16,465,248. 35| In Excess of Return Requirements| $4,465,248. 35| Exhibit 3: Whole Grain Pizza Concept Purchase Volume Estimate, Year 1 (Mediocre, Average) Inputs from Exhibit 2| Trial Rate| 27. 30| Total Trial Purchases| 1,033,402| Repeat Purchase Occasions| 2. 0| Repeat Rate, by Product Services| Mediocre Product| 21%| Average Product| 37%| Repeat Volume, by Product Scenario| Mediocre Product| 434,028. 84| Average Product| 764,717. 48| Total Purchases| Mediocre Product| 1,467,430,| Average Product| 1,798,119,| Total Sales Volume| Retail Sales Volume (Mediocre Product)| $18,166,783. 40|TruEarth Sales Volume (Mediocre Product)| $11,808,409. 21| Retail Sales Volume (Average Product)| $22,260,713. 22| TruEarth Sales Volume (Average Product)| $14,469,463. 59| Based on these wholesales volumes, the average product perception meets our return requirements. We would gain $2,469,463. 59 in extra cash if we were to launch this product. However, the mediocre product does not meet our return requirements (off by $191,590. 79). We are only off of our return requirements by a small margin (1. 596%); thus, we may conside r taking on this initial loss for the first year. Considering the growth rate of Cucina Fresca’s retail sales between the 3rd quarter of 2006 and 2007 (194. 4%), we may predict that the initial sales volume will grow between the first and second year of the product launch. Our future sales volume will most likely cover our initial return requirements in the 2nd year and our losses from the 1st year. ——————————————– [ 2 ]. Definitely would buy x % of â€Å"Definites† who actually buy: 80% x 18% [ 3 ]. Probably would buy x % of â€Å"Probables† who actually buy: 30% x 43% [ 4 ]. â€Å"Definite† Purchases + â€Å"Probable† Purchases: 14. 4% + 12. 9% [ 5 ]. Target Households x 11%: 58,500,000 x 11% [ 6 ]. Target Households x 89%: 58,500,000 x 11% [ 7 ]. Trial Rate x Customer Awareness x ACV: 27. 3% x 50% x 40% [ 8 ]. Trial Rate x Non-Customer Awaren ess x ACV: 27. 3% x 12% x 40% [ 9 ].Target Households x Cucina Fresca Pasta Customers Adjusted Trial Rate: 58,500,000 x 5. 46% [ 10 ]. Target Households x Non- Cucina Fresca Pasta Customers Adjusted Trial Rate: 58,500,000 x 1. 31% [ 11 ]. Cucina Fresca Pasta Customers Trial Purchases + Non- Cucina Fresca Pasta Purchases: 351,351 + 682,051. 5 [ 12 ]. Rounded down because cannot include 0. 5 of a household [ 13 ]. Total Trial Purchases x Repeat Purchase Occasions x Excellent Product Repeat Rate: 1,033,402 x 2. 00 x 49% [ 14 ]. Rounded down because cannot include 0. 96 of a product [ 15 ]. Trial Purchases + Repeat Purchases: 1,033,402 + 1,012,733 [ 16 ]. Total Purchases x Average Spent per Purchase: 2,046,135 x $12. 38 [ 17 ].Retail Sales Volume x (1-Food Retailers 35% Gross Margin): $72,835,811. 1 x (1-0. 35) [ 18 ]. TruEarth Sales Volume – Minimum Return Requirement: $16,465,248. 35- $12,000,000 [ 19 ]. Total Trial Purchases x Repeat Purchase Occasion x Mediocre Repeat Product Rate: 1,033,402 x 2. 0 x 21% [ 20 ]. Total Trial Purchases x Repeat Purchase Occasion x Average Repeat Product Rate: 1,033,402 x 2. 0 x 37% [ 21 ]. Total Trial Purchases + Mediocre Product Total Purchases: 1,033,402 + 434,028. 84 [ 22 ]. Rounded down because cannot have 0. 84 of a purchase [ 23 ]. Total Trial Purchases + Average Product Total Purchases: 1,033,402 + 764,717. 48 [ 24 ]. Rounded down because cannot have 0. 48 of a purchase [ 25 ].Total Purchases for Mediocre Product x Average Spent per Purchase: 1,467,430 x $12. 38 [ 26 ]. Retail Sales Volume for Mediocre Product x (1-Food Retailers 35% Gross Margin): $18,166,783. 40 x (1-0. 35) [ 27 ]. Total Purchases for Average Product x Average Spent per Purchase: 1,798,119 x $12. 38 [ 28 ]. Retail Sales Volume for Mediocre Product x (1-Food Retailers 35% Gross Margin): $22,260,713. 22 x (1-0. 35) [ 29 ]. (TruEarth Sales Volume (Mediocre Product) – Return Requirement)/Return Requirement: ($11,808,409. 21-$12,000,000)/$12,00 0,000 [ 30 ]. [{ (2007 Retail Sales-2006 Retail Sales)/(2006 Retail Sales)} + 1] x 100%: [{($35,000,000-$18,000,000)/($18,000,000)} +1] x 100%