Below the 3 questions are results of purchase intent from a new product concept test for a new barbeque sauce.

1. Assuming the market is 30,000 people or units, and people buy the product 3 times a year, please develop a forecast if the product is at a $7.99 retail price; what if it's at $5.99?

2. How many more units must they sell at $5.99 to get the same revenue/sales resulting from the 7.99 price? (units X price= revenue) with 30000 units or people?

3. What if the market is 1,000,000 units- what is the new forecast?

Use the excel template attached (insert numbers from this problem into it) or the formula below to determine these answers. SHOW THE FORMULA CALCULATIONS OR PROVIDE THE EXCEL SPREAD SHEET. form is uploaded.

Results:

DEFINITLEY WILL BUY: 40%

PROBABLY WILL BUY: 30%

Sales forecast formula:

Purchase interest:{ (definitely %) X (.80 adjustment) + probably buy % x (.33) adjustments)} X Market Potential(units or number of potential people in your market for this product based on the demographic definition of your target or people that use your type of product) × Number of times bought per year on average X Estimated % awareness(50%) X Estimated % of retailers carrying product(65%) X Selling Price (the price you charge distributor, Retailer or consumer directly)