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Marketing Analytics: Channel Sales and Profit Amazon Echo and Google Home are two of the market leaders in the rapidly growing digital personal assistant product

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Marketing Analytics: Channel Sales and Profit Amazon Echo and Google Home are two of the market leaders in the rapidly growing digital personal assistant product category. Ophelia is a brand manager for a smaller consumer electronics firm that has been competing for market share with its digital personal assistant, the Russell . While the product has not yet achieved the widespread success of the market leaders, sales for the Russell have increased by an average of 40 percent per year in recent years. Ophelia's boss attributes the product's early success to his distribution strategy of making sure the Russell is readily available in wholesale clubs, department stores, discount stores, and specialty electronic stores. Traditionally, cooperative marketing funding has been split equally between the four distribution channels with each receiving $500,000 in support. Each of the four distributors pays a different price to the manufacturer based primarily on purchase volume and channel power. Ophelia has been evaluating the Russell's distribution strategy and thinks that there is room for improvement. She knows that if she is going to convince her boss to change his strategy, she is going to have to speak his language-marketing metrics. To help her with the evaluation, she gathers data from the Russell's last three years of sales. The goal of this activity is to understand how channel choice affects a firm's sales and profitability using sales and profitability data, Use the spreadsheet provided to help answer the questions that follow. The spreadsheet fields highlighted in yellow can be changed in order to determine possible outcomes. You can find the initial values in the corresponding blue cells in columns G to J. Start by entering the initial values into columns B to E. Then review the questions below and adjust the values in columns B to E to determine the correct answers. B D E 1 Warehouse Clubs Department Stores Discounters Electronics Specialty Stores TC 2 Price 3 Quantity 4 Sales revenue un Variable costs 6 Fixed costs $ 1,250,000 $ 1.250.000 $ 1.250,000 $1,250,000 $ 6

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