“TruEarth Healthy Food”
Business Case
Alexey Nikolaev
28.01.2010
TrueEarth Healthy Food Business case _ Alexey Nikolaev
What is the key question of case
To Go or Not to Go
with New product
Whole Grain Pizza?
28.01.2010
TrueEarth Healthy Food Business case _ Alexey Nikolaev
There are more then just size forecasting
to make proper decision
Competition
It took 1 year for Regazzi to launch similar product
“Rigazzi had also tested a pizza concept and was likely not far from an
introduction”
“Kraft and Nestle are already huge players here with low-cost frozen
pizza”
Customers
“Many prefer to have just one refrigerated whole grain pasta vendor”
Finance
“Incremental investment for pizza was substantially less than for pasta”
“The required Year 1 sales volume was $14 million at wholesale”
…………………………
HOW TO MAKE A DECISION ???
28.01.2010
TrueEarth Healthy Food Business case _ Alexey Nikolaev
Analysis of Business Problem (ABP)
There is no 100% right decision and any
decision will have positive/negative
consequences
Manager’s objective is to find out
the most adequate decision based
on current situation
28.01.2010
TrueEarth Healthy Food Business case _ Alexey Nikolaev
Algorithm of ABP
1. What is the Problem
2. Defining the Criteria
3. Defining the
Alternative
“Do company launch the
Whole Grain Pizza”
(A) Finance – NPV
(B) Feasibility
(C) Competiteveness
(1) Go with New product
(2) No Go
(3) Other
4. Analysis
5. Decision
6. Action Plan
28.01.2010
TrueEarth Healthy Food Business case _ Alexey Nikolaev
4. Analysis
(1) Go with (2) No Go
Pizza
(A) Finance
NPV
(3) Other
ANALYSIS
(B) Feasibility
(C) Competetiveness
5 Decision
6. Action Plan
28.01.2010
TrueEarth Healthy Food Business case _ Alexey Nikolaev
Contacts
Master Class Seminar
Alexey Nikolaev
Head of Medical Marketing
Danone Baby Nutrition Russia
IESE MBA
E-mail: anikolaev@nutricia.ru
Tel: 8 – 985- 773 0053
28.01.2010
TrueEarth Healthy Food Business case _ Alexey Nikolaev