1 Use the test result in Arizona and California Table 16-4) to forecast sales for Betty Spaghetty's Color Crazy for the remaining of the test year, with vs. without advertising. (5 points) Hint: two graphs shown below could be used to derive the formula. Please refer to the Table 16-6, based on the sales data of Eiffel Tower nanoblock, what is the MROI for the Amazon Gold Box promotion experiment? (5 points) Hint: compare results from Jan-Feb 2012 to March 2012 and calculate the sales revenue lift to plug into the MROI formula Remaining Season (10%) All Retail (25%) National Chain Sales (12%) California Chain Sales (10%) California Control Remaining Season All Retail (25%) National Chain Sales Arizona Chain Sales Arizona Test TRANSFORMATION OF MARKETING AT THE OHIO ART COMPANY 199 test market sales period represented about 10% of the ts weekly sales in 23 Arizona stores (test) and in 24 stores of the CHAPTER 16 the four-week test market ing sales potential for the wet siales pericd 16-4 reports weekly ble lohant in California (control) for two versions of Betty S erchar50% of the retailer's Arizona sales and i0% ofCalifornia sales ona and California represented 2% and 12%, respectively, of the sales, and that same retailer was expected to account for 25% of sales. Management intended to use the test to help estimate dler's national Bety beity sales with and without advertising Weekly Unit Sales of Betty Spaghetty in Test and Control Cities Color Go-Go Color Crazy Crazy Glam Test Control Go-Go Glam Test (AZ) (AZ) 30 28 51 54 163 (CA) Control (CA) 12 18 Week 1 Week 2 Week 3 Week 4 56 59 51 40 17 30 0.3 112 1-9 9 Total Total/store/week 1.8 2.2 Ohio Art. Used with permission ransformation of Marketing at the Ohio Art the Ohio Art Company, best known as the manufacturer and c toy, Etch A Sketch (EAS), had been distracted from its efforts d diting emphasis from traditional mass-marketing channels to more marketing, Management believed such a shift would be necessary lny to thrive in the next decade. The distraction came from the media nto the middle of a political classi ted digtal n surroun mcrut comments made by a campaign manager of Republican Culp, an Ohio Art sales rep, the compa AccordingtoLarryAnizon due to the EAS products. But the compawan hd 206 CuTING-EDGE MARKETING ANALYTICS had always But the company had anoll te new products on Amazon until the debut of n zon, like many technology-driven sites, used algorithms and collal determine search results' relevance. Collaborative filterin erate product recommendations by matching the purchase historieso users. Without a minimum purchase volume, these recommendatany de S not have enough history to generate relevant recommendations for nan One way the company was able to increase the potential for relevant dations was through Amazon's "Gold Box promotion, where items we und reduced prices for an hour or two on a given day. Ohio Art decided toffered of Gold Bo tion for its Eiffel Tower nanoblock set in the "Lightning Deals" sectoPro on March 4, 2012 (see Table 16-6 for sales data on select products). Com Amazon to promote their products this way; fees were determined by the units companies made available for the deal multiplied by the discount zon's normal price). In this way, companies were challenged to forecast overestimation would result in higher promotional costs while an underestinmia would result in foregone sales. These "Lightning Deals" increased thenumber c user clicks on the nanoblock product, thereby increasing the relevance of Ohio A and nanoblock. That, in turn, increased the number of appearances for Ohio Ar products even after the promotion ended. Ohio Art sold all 300 Eiffel Tower offered at $12.99 in the "Lightning Deal." The rest of March volume was sold at the regular $19.99 price. forecast properly; Table 16-6 Sales Data on Selected Products Ohio Art Product Sales Price $19.99 Jan-Feb 2012 March 2012 686 163 184 May 2012 nanoblock Eiffel Tower anoblock Taj Mahal nanoblock Castl 308 244 19.99 Neuschwanstein Classic EAS $12.99 344 352 Amazon charged suppliers a 10% cooperative advertising fee. This was justified by Amazon providing search capabilities and using Googe Microsoft AdCenter to get top results in searches for merchants' products. Fo ple, the top advertised spot in a Google search for "nanoblocks" was the Amlain linlk to Ohio Art's products, Ohio Art was trying to determine if Amazon w 1 Use the test result in Arizona and California Table 16-4) to forecast sales for Betty Spaghetty's Color Crazy for the remaining of the test year, with vs. without advertising. (5 points) Hint: two graphs shown below could be used to derive the formula. Please refer to the Table 16-6, based on the sales data of Eiffel Tower nanoblock, what is the MROI for the Amazon Gold Box promotion experiment? (5 points) Hint: compare results from Jan-Feb 2012 to March 2012 and calculate the sales revenue lift to plug into the MROI formula Remaining Season (10%) All Retail (25%) National Chain Sales (12%) California Chain Sales (10%) California Control Remaining Season All Retail (25%) National Chain Sales Arizona Chain Sales Arizona Test TRANSFORMATION OF MARKETING AT THE OHIO ART COMPANY 199 test market sales period represented about 10% of the ts weekly sales in 23 Arizona stores (test) and in 24 stores of the CHAPTER 16 the four-week test market ing sales potential for the wet siales pericd 16-4 reports weekly ble lohant in California (control) for two versions of Betty S erchar50% of the retailer's Arizona sales and i0% ofCalifornia sales ona and California represented 2% and 12%, respectively, of the sales, and that same retailer was expected to account for 25% of sales. Management intended to use the test to help estimate dler's national Bety beity sales with and without advertising Weekly Unit Sales of Betty Spaghetty in Test and Control Cities Color Go-Go Color Crazy Crazy Glam Test Control Go-Go Glam Test (AZ) (AZ) 30 28 51 54 163 (CA) Control (CA) 12 18 Week 1 Week 2 Week 3 Week 4 56 59 51 40 17 30 0.3 112 1-9 9 Total Total/store/week 1.8 2.2 Ohio Art. Used with permission ransformation of Marketing at the Ohio Art the Ohio Art Company, best known as the manufacturer and c toy, Etch A Sketch (EAS), had been distracted from its efforts d diting emphasis from traditional mass-marketing channels to more marketing, Management believed such a shift would be necessary lny to thrive in the next decade. The distraction came from the media nto the middle of a political classi ted digtal n surroun mcrut comments made by a campaign manager of Republican Culp, an Ohio Art sales rep, the compa AccordingtoLarryAnizon due to the EAS products. But the compawan hd 206 CuTING-EDGE MARKETING ANALYTICS had always But the company had anoll te new products on Amazon until the debut of n zon, like many technology-driven sites, used algorithms and collal determine search results' relevance. Collaborative filterin erate product recommendations by matching the purchase historieso users. Without a minimum purchase volume, these recommendatany de S not have enough history to generate relevant recommendations for nan One way the company was able to increase the potential for relevant dations was through Amazon's "Gold Box promotion, where items we und reduced prices for an hour or two on a given day. Ohio Art decided toffered of Gold Bo tion for its Eiffel Tower nanoblock set in the "Lightning Deals" sectoPro on March 4, 2012 (see Table 16-6 for sales data on select products). Com Amazon to promote their products this way; fees were determined by the units companies made available for the deal multiplied by the discount zon's normal price). In this way, companies were challenged to forecast overestimation would result in higher promotional costs while an underestinmia would result in foregone sales. These "Lightning Deals" increased thenumber c user clicks on the nanoblock product, thereby increasing the relevance of Ohio A and nanoblock. That, in turn, increased the number of appearances for Ohio Ar products even after the promotion ended. Ohio Art sold all 300 Eiffel Tower offered at $12.99 in the "Lightning Deal." The rest of March volume was sold at the regular $19.99 price. forecast properly; Table 16-6 Sales Data on Selected Products Ohio Art Product Sales Price $19.99 Jan-Feb 2012 March 2012 686 163 184 May 2012 nanoblock Eiffel Tower anoblock Taj Mahal nanoblock Castl 308 244 19.99 Neuschwanstein Classic EAS $12.99 344 352 Amazon charged suppliers a 10% cooperative advertising fee. This was justified by Amazon providing search capabilities and using Googe Microsoft AdCenter to get top results in searches for merchants' products. Fo ple, the top advertised spot in a Google search for "nanoblocks" was the Amlain linlk to Ohio Art's products, Ohio Art was trying to determine if Amazon w