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Individual Case Write-up Assignment Please read the case, Hubble Contact Lenses: Data-Driven Direct to Consumer Marketing, (case ID 519011-PDF-ENG) and answer the following questions. Briefly
Individual Case Write-up Assignment
Please read the case, "Hubble Contact Lenses: Data-Driven Direct to Consumer Marketing," (case ID 519011-PDF-ENG) and answer the following questions.
- Briefly describeHubble's currentbusinessmodel.
- Which consumer and technological changes enabled the emergence of digitally native brands in the last few years?
- Does Hubble have a competitive advantage?
- How efficient is Hubble's business? For its computation, please follow the steps below.
- How many months does an average consumer stay with Hubble once she subscribes to the service? Refer any reference site such asthis and use monthly discount rate of 0 for computation.
- What is the margin per box and how many boxes does an average consumer purchase per month?
- What is the expected gross contribution of an average consumer during her life time with the company? Do not forget to include the initial cost of a free box. This is LTV (life time value).
- What is the average customer acquisition cost (CAC) across all marketing channels? Refer to Exhibit 9.
- Compute LTV/CAC. Is this value greater than 3? Ratio of 3 is the bench mark for a successful SaaS - software as a service - subscription model in venture capitalist community.
- Over time, do you expect the consumer acquisition cost to go up or down? Why? What do you suggest to improve the LTV/CAC ratio from the marketing perspective?
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