Pepperidge Farms, makers of quality baked goods has increased its sales in the U.S. by a minimum of 15% each year for the past 10 years. In 2021, they will be launching products (3) into a new food space: Specialty Treats for Dogs. This represents an entirely new Customer Segment and as result, will require heavy spend to capture Market Share in this competitive space.

As Marketing V.P., you are preparing a presentation to senior management. One of the items you feel is important to cover is the Cost of Customer Acquisition (CCA). Your Brand Director for Pepperidge Farms Specialty Dog Treats has determined that it will cost $10,000,000 in total for all Marketing activities for these 3 new products with entirely new customers. Twenty-five (25%) percent of this overall Marketing spend will be devoted to Social Medial marketing spend. She estimates that this will result in a total of 15,000 NEW customers in the calendar year 2021.

A) What is the CCA (Cost of Customer Acquisition) in 2021 for the above projections? Show your work in addition to your answer

$ _____________

B) Based on the above answer (A), what would be the expected CLV (Customer Lifetime Value) goal for EACH individual customer? Show your work in addition to your answer:

$ _____________