Explain the basic facts of the case (i.e., the central character(s), the decision to be made, and what needs to be done before the making a decision).

Prepare a SWOT analysis for L&N Jerky.

Ayers believes consumer promotions are more effective than trade promotions. Is this true?

(calculate the revenue-to-cost multiplier for trade and consumer promotions for 2018 and 2019. Do this by dividing the incremental revenue of each promotion Exhibit 5 -- by the cost for each promotion Exhibit 4. For example, for trade promotions for 2018 the incremental revenue was $1,304,265. The cost of trade promotions in 2018 was $280,487. 1,304,265/280,487 = $4.65. The revenue to cost multiplier is 4.65:1. This means that for every dollar spent on trade promotions in 2018, revenue increased $4.65).

Calculate the return on marketing investment (ROMI) for 2018 and 2019 for trade and consumer promotions. The formula is as follows:

ROMI= (incremental gross profit gained cost of marketing investment/cost of marketing investment) For example, in 2018 the incremental revenue from trade promotions was $1,304,265. The gross profit margin (according to the case) was 33%, resulting in an incremental gross profit of $430,407. The cost of trade promotions was $280,487.

Thus, the ROMI is 430,407-280,487/280,487 = 53.5%

Be sure and read the case carefully to see if the expected gross profit margin changed for 2019.

Based on your calculations, of the three options Ryan has requested (1) decrease promotion spending by 30%, (2) increase consumer promotions by $200,000, (3) increase trade promotions by $200,000, which do you recommend and why?

Please help me answering this questions