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 Russel 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 Gto. Start by entering the initial values into columns to E. Then review the questions below and adjust the values in columns BloE to determine the correct answers. 8 expenses A B D E F G H 3 1 Electronics Warehouse Department Initial Value: Initial Value Initial Value: Clubs Stores Discounters Specialty Total Warehouse Department tal Value: Electronics Stores Stores Discounters Clubs Specialty 2 Stores 3 Price 3 0.005 455 7015 4 Quantity 0 650,000 175,000 1.000.000 300.000 Sales revenue $ OS ols os o $ $ 0 $ $ 29.250,000 12.250.000 52.000.000 19.500.000 5 Variable costs S os ols 0 $ 0 $ $ $ $ 0 18.850,000 $ 5,075,000 29.000.000 6 8.700.000 Fixed costs $ $ 3 3 7 1,250,000 1,250,000 1,250,000 1.250,000 5,000,000 $1,250,000 $ 1.250,000 $ 1.250,000 1.250.000 Cooperative marketing $ 0 $ 500,000 $ 500,000 $ 500,000 $ 500.000 Profit $ $ $ $ $ 9 (1.250,000) (1.250,000) 1.250,000 250.000 15.000.000) $8.650,000 S 5,425.000 21.250.000 9.050.000 Return on sales (Infinity (Infinity Infinity Infinity) 30% 10 11 Channel of NAN NAN quantity sold NaN NAN 0% 31% 8% 47% Channel of NaN NaN NaN NaN 0% 26% 11% 46% 17% Channel % of 25% total profit 25% 25% 25% 100% 19% 12% 48% 13 20% Quantity sold 14 last year 225.000 235.000 550.000 305,000 1,315,000 225,000 235,000 550.000 305,000 15 Channel of quantity sold 17% 18% 42% 23% 100% 17% 18% 23% (last year) 16 Quantity sold two years ago 135,000 250,000 400,000 310,000 1,095,000 135,000 250,000 400.000 310,000 Channel of 17 quantity sold 12% 23% 37% 28% 100% 12% 23% 37% 28% 18 two years ago) 12 total revenue 1. Ophelia begins her analysis by identifying which channel generated the most profit from sales of the Russell Which distribution channel generated the most profit this year? Prev 1 of 1 Opreta egins her analysis by enting wicare penerated me mostro sales of the Russell Which Click to select 2. As she as deeper women Opretarea wite counters do nove prve scores are que owners are ones. How can be expand Click to select 2. Opretares begun to convince her boss at cooperate ang supoon sunt became every across ou sution Channels. Her Bossess they allocate the west proportion of the manting supporto CCS secary stores. Do you agree we recommen 4 Operace $250.000 nove mag expense om bom warehouse Catest scorers We recorded in a 30 percent create or e non venga COD www.enfor warheath 650.000 and only 500.000. The most a percentrum on neach arbution channel What modifications to price and marketing expense would help to reach its goal i to select 3300 13000 1300 SO are 1 . . . . . . NON NEC 01 LL NIN UN M NH Dunyo ch Chave 361 MP 30 22.00 22.000 22 16.00 10 16 Guanti Cheval 1 MEME 20 os ME 2. A GO ANI re 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 Russel 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 Gto. Start by entering the initial values into columns to E. Then review the questions below and adjust the values in columns BloE to determine the correct answers. 8 expenses A B D E F G H 3 1 Electronics Warehouse Department Initial Value: Initial Value Initial Value: Clubs Stores Discounters Specialty Total Warehouse Department tal Value: Electronics Stores Stores Discounters Clubs Specialty 2 Stores 3 Price 3 0.005 455 7015 4 Quantity 0 650,000 175,000 1.000.000 300.000 Sales revenue $ OS ols os o $ $ 0 $ $ 29.250,000 12.250.000 52.000.000 19.500.000 5 Variable costs S os ols 0 $ 0 $ $ $ $ 0 18.850,000 $ 5,075,000 29.000.000 6 8.700.000 Fixed costs $ $ 3 3 7 1,250,000 1,250,000 1,250,000 1.250,000 5,000,000 $1,250,000 $ 1.250,000 $ 1.250,000 1.250.000 Cooperative marketing $ 0 $ 500,000 $ 500,000 $ 500,000 $ 500.000 Profit $ $ $ $ $ 9 (1.250,000) (1.250,000) 1.250,000 250.000 15.000.000) $8.650,000 S 5,425.000 21.250.000 9.050.000 Return on sales (Infinity (Infinity Infinity Infinity) 30% 10 11 Channel of NAN NAN quantity sold NaN NAN 0% 31% 8% 47% Channel of NaN NaN NaN NaN 0% 26% 11% 46% 17% Channel % of 25% total profit 25% 25% 25% 100% 19% 12% 48% 13 20% Quantity sold 14 last year 225.000 235.000 550.000 305,000 1,315,000 225,000 235,000 550.000 305,000 15 Channel of quantity sold 17% 18% 42% 23% 100% 17% 18% 23% (last year) 16 Quantity sold two years ago 135,000 250,000 400,000 310,000 1,095,000 135,000 250,000 400.000 310,000 Channel of 17 quantity sold 12% 23% 37% 28% 100% 12% 23% 37% 28% 18 two years ago) 12 total revenue 1. Ophelia begins her analysis by identifying which channel generated the most profit from sales of the Russell Which distribution channel generated the most profit this year? Prev 1 of 1 Opreta egins her analysis by enting wicare penerated me mostro sales of the Russell Which Click to select 2. As she as deeper women Opretarea wite counters do nove prve scores are que owners are ones. How can be expand Click to select 2. Opretares begun to convince her boss at cooperate ang supoon sunt became every across ou sution Channels. Her Bossess they allocate the west proportion of the manting supporto CCS secary stores. Do you agree we recommen 4 Operace $250.000 nove mag expense om bom warehouse Catest scorers We recorded in a 30 percent create or e non venga COD www.enfor warheath 650.000 and only 500.000. The most a percentrum on neach arbution channel What modifications to price and marketing expense would help to reach its goal i to select 3300 13000 1300 SO are 1 . . . . . . NON NEC 01 LL NIN UN M NH Dunyo ch Chave 361 MP 30 22.00 22.000 22 16.00 10 16 Guanti Cheval 1 MEME 20 os ME 2. A GO ANI re