Question 1
You are the Sales V.P. for a large software company. You have responsibility for the entire country (USA). You and the Sales Director for the Southern Region believe you are under-resourced regarding the number (#) of sales representatives in Florida.
You agree that an additional 8 sales representatives would position the company to better compete in this area. As part of your proposal to your boss, the Chief Commercial Officer, you have prepared financials on this request. Answer the following questions. Base your calculations on dollar and ratio figures discussed as part of the 2H lectures:
1. What is the total Fully Loaded cost (in dollars) for this request?
2. How much incremental revenue (sales) would you be expecting to produce as a result of this expansion of 8 additional sales representatives?
Question 2
You are considering selling your franchise business (restaurant). You have been a franchisee with this restaurant chain for a total of 3 years. Your 3-year sales and profits have been: Year 1: $500,000 in sales (profit of $50,000), Year 2: $750,000 in sales (profit of $75,000), and Year 3: $1,000,000 (profit of $100,000).
A. According to standard business principles as covered during the lecture on Franchise Marketing the range, in dollars, in which you could list your restaurant for sale would be:
B. Based upon the above sales growth over the most recent 3 years, what specific dollar price would you list your restaurant for?
C. Based upon the following: A) initial start-up costs of $500,000, B) above 3-year total sales and profits, and C) your achieved sales price from “B” above, what is your OVERALL profit after 3 years revenue/profits and your sale price?
Question 3
Iconic brands such as Kleenex, Jello, Q-Tips, Band-Aid, and Air Jordan basketball shoes are at the top of the “pyramid” as it relates to Building Brand Value. List 4 of the 8 strategic levers discussed in the Building Consumer Value lecture that increase the chances of reaching and maintaining brand dominance for a brand (product or service)
Question 4
Answer the questions below as it relates to Targeting by Decile Grid: The Market Basket consists of the top 5 companies in the 3D printer business. In Q4 2019, the total number of 3D printers sold within the Market Basket was 10,000. Your company sold 2,000 printers which represent a 20% Market Share of this Market Basket. Assume that the Marketing Department has determined it will focus its efforts on 1,000 target accounts (customers) Using your knowledge of Targeting by Decile (3 Rows of 10 Columns (boxes) each):
Title the first row AND complete the 10 columns in this row
Title the second row AND complete the 10 columns in this row
Title the third row AND complete the 10 columns in this row (the information in these 10 columns is NOT known with specific certainty but make it DIRECTIONALLY CORRECT)
Question 5
From the 2H Weekly Supplemental Reading, write a paragraph for each of the 3 business leaders covered (Mary Barra, GM, Jeff Bezos, Amazon, and Sheryl Sandberg, Facebook). From your reading, class lecture and discussion, as well as your own developed perspectives, describe/comment on the following traits for each:
Business philosophy(ies) and Leadership style(s) with examples:
Question 6
Pepperidge Farms, makers of quality baked goods has increased its sales in the U.S. by a minimum of 15% each year for the past 10 years. In 2021, they will be launching products (3) into a new food space: Specialty Treats for Dogs. This represents an entirely new Customer Segment and as result, will require heavy spend to capture Market Share in this competitive space.
As Marketing V.P., you are preparing a presentation to senior management. One of the items you feel is important to cover is the Cost of Customer Acquisition (CCA). Your Brand Director for Pepperidge Farms Specialty Dog Treats has determined that it will cost $1,000,000 in total for all Marketing activities for these 3 new products with entirely new customers. She estimates that this will result in a total of 5,000 NEW customers in the calendar year 2021. Initial projections are that this will carve out a 7% Market Share for this Market Segment, with sales totaling $500,000 the first year, $1,000,000 in year 2, and $2,800,000 in year 3.
A) What is the CCA (Cost of Customer Acquisition) in 2021 for the above projections? Show your work in addition to your answer
$ _____________
B) Based on the above answer (A), what would be the expected CLV (Customer Lifetime Value) goal for EACH individual customer?
$ _____________
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