In this exercise you will be assuming the role of an Account Manager working within our Personal Care Appliances category during Amazon Black Friday. You act as a general manager responsible for managing Amazons relationship with your assigned vendor. Your focus is to maintain & improve positive customer experience and to optimize your brands business across buying, marketing, and inventory management in order to drive growth in revenue and profitability. Black Friday is one of the biggest sales weeks of the year for Amazon, it is a 5 day event that starts on Monday and culminates on Black Friday. It is an opportunity to offer Amazon customers door buster deals and drive incremental sales for our vendors. Instructions You need to create a selection of Black Friday promotions for your assigned vendor. You have been provided an Excel worksheet with product information that you should use to identify the promotions for Black Friday. You should be able to give an overview of your plan that includes a selection of the promotions you are planning. Please present your plan with the provided Excel sheet. You can add columns to the calculation if needed You have 30 minutes to work on the exercise, a further 15 minutes to present your plan/selection and another 15 minutes to answer any questions. Key Points to Consider Your promotions should deliver a total Revenue increase of 50% vs. last year. Last year the revenue was 1.2 million. All promotions must run at a minimum profit margin of 10%. All promotions are required to run at a minimum of 25% off the average price from the last 90 days. A promotion on a given product can only run once, and can run any time on Black Friday Week (Mon-Thurs) or Black Friday itself (Fri). For promotions running on Black Friday Week, you can expect daily sales to be 5 x equal to the average weekly sales of the promoted product. For promotions running on Black Friday, you can expect daily sales to be 10 x equal to the average weekly sales of the promoted product. Tips Remember your goal as an Account Manager is to drive growth in revenue & profitability and provide the best experience for Amazon customers. Consider what additional information you may require to help you better define your Black Friday plans. What processes would you simplify on Amazon to increase Customer Experience? Useful Metrics Revenue = Average Sales Price x Units % Profit = (Revenue - Cost) / Revenue Vendor Cost Price = The normal price that Amazon purchases the product from the vendor. Black Friday Cost Price = The discounted cost price offered by the vendor for Black Friday Promotions. Average Selling Price = The price that is displayed on the Amazon website that customers purchase at (including VAT).
Product Name Product Code Sub-Category Average Customer Review Rating Vendor Cost price Black Friday Cost Average Selling Price last 90 Days Average Weekly Discounted Deal Sales Units Price Deal Profit Margin (%) Eligible Y/N Black Friday Week Deals Revenue (one day) Black Friday Deals Revenue Price* 600 3.9 3.6 4.6 4.2 4.0 2.5 2.9 900 1,750 600 1,200 50 750 4.8 40 4.4 4.1 3.8 Professional Hair Dryer #001 Hair Care Platinum Clean Version 6 #002 OralCare Everyday Electric Toothbrush #003 OralCare Professional Hair Straigheners V2 #004 Hair Care Family Electric Toothbrush Pack #005 OralCare Kids Electric Toothbrush V1 #006 OralCare Professional Hair Straigheners V1 #007 Hair Care Platinum Clean Version 7 (Bluetooth) #008 OralCare Professional Curling Tongs #009 Hair Care Deluxe Hair Dryer #010 Hair Care Kids Electric Toothbrush V2 #011 OralCare Deluxe Hair Straighteners #012 HairCare Styling Kit (10 Piece) #013 Hair Care Styling Kit (5 Piece) #014 Hair Care Travel Hair Dryer #015 HairCare Everyday Electric Toothbrush + 4 extra heads #016 OralCare Travel Hair Straighteners #017 HairCare Basics Straighteners #018 Hair Care Basics Hair Dryer #019 Hair Care Carrying Case #020 Hair Care Deluxe Curling Tongs #021 Hair Care Travel Electric Toothbrush & Case #022 OralCare *One off cost price provided by the vendor to run promotions for Black Friday 70.54 64.08 49.30 91.70 39.85 24.50 73.00 79.09 41.45 159.89 24.79 211.85 20.72 22.68 56.03 48.65 72.82 35.25 14.89 16.20 67.63 22.31 40.80 39.60 28.00 62.74 25.71 22.80 57.70 46.71 31.33 134.65 18.67 149.79 14.75 17.98 47.53 26.63 46.06 26.42 10.24 13.48 46.20 16.81 78.99 55.99 46.99 99.99 39.99 27.99 89.99 89.99 39.99 199.99 29.99 249.99 24.99 20.99 69.99 55.99 62.99 46.99 26.99 17.99 74.99 29.99 3.6 4.5 3.5 3.1 4.7 4.2 3.5 550 250 650 80 60 250 40 120 180 100 800 250 100 4 2.2 3 4.8 680 Definitions Revenue: Vendor Cost Price: Black Friday Cost Price: The income Amazon generates through selling an item The normal price Amazon pays to buy an item from a manufacturer / vendor per unit The discounted price offered by the vendor for Black Friday Promotions The difference between the amount earned (through selling) and the amount spent (through buying) as a % of revenue The price that is displayed on the Amazon website that customer pay to purchase a product (including VAT) % Profit: Average Selling Price: Formula Revenue = Average Sales Price x Units Sold (Revenue - Cost) / Revenue % Profit = Product Name Product Code Sub-Category Average Customer Review Rating Vendor Cost price Black Friday Cost Average Selling Price last 90 Days Average Weekly Discounted Deal Sales Units Price Deal Profit Margin (%) Eligible Y/N Black Friday Week Deals Revenue (one day) Black Friday Deals Revenue Price* 600 3.9 3.6 4.6 4.2 4.0 2.5 2.9 900 1,750 600 1,200 50 750 4.8 40 4.4 4.1 3.8 Professional Hair Dryer #001 Hair Care Platinum Clean Version 6 #002 OralCare Everyday Electric Toothbrush #003 OralCare Professional Hair Straigheners V2 #004 Hair Care Family Electric Toothbrush Pack #005 OralCare Kids Electric Toothbrush V1 #006 OralCare Professional Hair Straigheners V1 #007 Hair Care Platinum Clean Version 7 (Bluetooth) #008 OralCare Professional Curling Tongs #009 Hair Care Deluxe Hair Dryer #010 Hair Care Kids Electric Toothbrush V2 #011 OralCare Deluxe Hair Straighteners #012 HairCare Styling Kit (10 Piece) #013 Hair Care Styling Kit (5 Piece) #014 Hair Care Travel Hair Dryer #015 HairCare Everyday Electric Toothbrush + 4 extra heads #016 OralCare Travel Hair Straighteners #017 HairCare Basics Straighteners #018 Hair Care Basics Hair Dryer #019 Hair Care Carrying Case #020 Hair Care Deluxe Curling Tongs #021 Hair Care Travel Electric Toothbrush & Case #022 OralCare *One off cost price provided by the vendor to run promotions for Black Friday 70.54 64.08 49.30 91.70 39.85 24.50 73.00 79.09 41.45 159.89 24.79 211.85 20.72 22.68 56.03 48.65 72.82 35.25 14.89 16.20 67.63 22.31 40.80 39.60 28.00 62.74 25.71 22.80 57.70 46.71 31.33 134.65 18.67 149.79 14.75 17.98 47.53 26.63 46.06 26.42 10.24 13.48 46.20 16.81 78.99 55.99 46.99 99.99 39.99 27.99 89.99 89.99 39.99 199.99 29.99 249.99 24.99 20.99 69.99 55.99 62.99 46.99 26.99 17.99 74.99 29.99 3.6 4.5 3.5 3.1 4.7 4.2 3.5 550 250 650 80 60 250 40 120 180 100 800 250 100 4 2.2 3 4.8 680 Definitions Revenue: Vendor Cost Price: Black Friday Cost Price: The income Amazon generates through selling an item The normal price Amazon pays to buy an item from a manufacturer / vendor per unit The discounted price offered by the vendor for Black Friday Promotions The difference between the amount earned (through selling) and the amount spent (through buying) as a % of revenue The price that is displayed on the Amazon website that customer pay to purchase a product (including VAT) % Profit: Average Selling Price: Formula Revenue = Average Sales Price x Units Sold (Revenue - Cost) / Revenue % Profit =
