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Marketing Analytics: Case Study: Saikat Halder

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The document discusses selecting an additional retail location for a cosmetics company to increase sales. It provides data on three potential store options in four tables that cover revenue, customer acquisition, retention, and revenue growth metrics. The marketing manager is asked to select the most effective store and provide the weights used in the selection process.

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Marketing Analytics: Case Study: Saikat Halder

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Saikat Halder
183 views1 page
The document discusses selecting an additional retail location for a cosmetics company to increase sales. It provides data on three potential store options in four tables that cover revenue, customer acquisition, retention, and revenue growth metrics. The marketing manager is asked to select the most effective store and provide the weights used in the selection process.

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BUS 507

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Case 9

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The document discusses selecting an additional retail location for a cosmetics company to increase sales. It provides data on three potential store options in four tables that cover revenue, customer acquisition, retention, and revenue growth metrics. The marketing manager is asked to select the most effective store and provide the weights used in the selection process.

Copyright:

© All Rights Reserved
Download as PDF, TXT or read online from Scribd
Download as pdf or txt
183 views1 page

Marketing Analytics: Case Study: Saikat Halder

Uploaded by

Saikat Halder
The document discusses selecting an additional retail location for a cosmetics company to increase sales. It provides data on three potential store options in four tables that cover revenue, customer acquisition, retention, and revenue growth metrics. The marketing manager is asked to select the most effective store and provide the weights used in the selection process.

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Marketing Analytics: Case Studies

MARKETING ANALYTICS: Case Study Saikat Halder


Name: ____________________
Stephan Sorger 2013; www.stephansorger.com Date: ________________________

Case No. Chapters Case Title


9 9 Distribution: Acme Cosmetics Company: UPDATED

You are the marketing manager for Acme Cosmetics. Acme manufactures and sells a premium brand anti-
wrinkle face cream derived from a rare form of green tea. Some say that the green tea gives the cream its
unique rejuvenating powers. All you know is that sales are strong. As a result, you have been asked to select
an additional retail location to increase sales further. The tables below show the relevant data.

Attribute Store A: Retail Premium Store B: Retail Outlet Store C: Internet


Expected Revenue ($) $20,000 $15,000 $15,000
Expected Cost ($) 60% (cost: $12,000) 50% (cost: $7,500) 8% (cost: $1200)

Table 1: Channel revenue and cost metrics

Attribute Store A: Retail Premium Store B: Retail Outlet Store C: Internet


Location 80%: Premium mall 40%: Outlet mall 20%: Limited web traffic
Brand Alignment 80%: Premium/ Premium 40%: Premium/ Value 50%: OK associations
Physical Requirements 60%: Med. floor, parking 80%: Large floor, parking 100%: No restrictions
Market-Specific 100%: Training available 60%: Limited training 10%: No training

Table 2: Channel customer acquisition metrics

Attribute Store A: Retail Premium Store B: Retail Outlet Store C: Internet


Customer Support 100%: Skilled staff 70%: Good sales staff 10%: Outsourced support
Customer Feedback 80%: Strong program 50%: Weak program 100%: Direct metrics
Customer Programs 80%: Mall bucks 60%: Outlet bucks 10%: Internet only

Table 3: Channel customer retention metrics

Attribute Store A: Retail Premium Store B: Retail Outlet Store C: Internet


Consulting 100%: Skin experts 60%: Some knowledge 10%: Automated staff
Customer Metrics 80%: Advanced CRM 50%: Older CRM 100%: Full metrics
Channel Growth 20%: Declining segment 40%: Low growth 80%: Increasing growth

Table 4: Channel customer revenue growth metrics

1. Select the store with the maximum effectiveness, based on the information in the tables. State the weights
used for the selection process.

Data Requested Results


Final Scores 58.92%
Store A: ______
45.24%
Store B: ______
42.04%
Store C: ______

Weights Used 40%Acquisition: ___;


Weights, General: Profit: ___; 20%Retention: ____;
20% Revenue: ____
20%
50% Brand: ____;
Weights, Acquisition: Location: ____; 20% Physical: ____;
20% Market: ____
10%
50% Feedback: ____;Programs:
Weights, Retention: Support: ____; 30% 20%
____
50% Metrics: ____;
Weights, Revenue Growth: Consulting: ____; 30% Growth: ____
20%

Stephan Sorger, 2013; www.StephanSorger.com 1

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