HF structure
Profit margin (= profit / box_price)	25%
Cohort
Initial size (week 1)	1,000
Retention	see breakdown
Av. order value	$102
Discounts	see breakdown
Additional acquisition cost (at week 1)	$65

Breakdown - Discount offer and retention assumptions
week	discount	cohort retention (=number of customers ordering a box as a % of previous week)
			1	50%
2		0.9
3		0.89
4		0.89
5	50%	0.95
6		0.82
7		0.89
8		0.84
9		0.82
10	20%	0.93
11		0.84
12		0.92
13		0.4
14		1.5
15		0.9
16		0.78
17		0.78
18		0.92
19		0.89
20		0.88
21		0.87
22		0.78
23		0.9
24		0.92
25		0.78
26		0.8
27		0.89
28		0.84
29		0.89
30		0.84
31		0.86
32		0.81
33		0.9
34		0.81
35		0.82
36		0.83
37		0.85
38		0.84
39		0.81
40		0.86
41		0.91
42		0.79
43		0.84
44		0.88
45		0.87
46		0.89
47		0.78
48		0.8
49		0.85
50		0.87
51		0.92
52		0.89

1. Understanding data a. On top of the discounts offered on boxes 1,5,10, the model includes additional acquisition costs (\$65). Please list examples of what this may include for Hellofresh. b. In the attached data table, retention_week_14 =1.5. Please give an example of a situation where the cohort retention would logically drop and rebound within a few weeks. 2. Computing profitability a. How many boxes should a customer order to turn profitable? b. After how many weeks is a cohort profitable? c. What % increase in retention (added as percentage points) do I need to justify an additional acquisition costs 1.5x as large ($651.5x). d. Suppose we have the possibility to acquire 10% customers or increase our retention by x%. What's the equivalent uplift in retention to get as many boxes? (i.e. what is x ?). e. Our goal is to maximize cohort added value by incentivizing loyalty. Give an alternative discount structure that we could implement. Please list your assumptions clearly