Please answer the questions below based on the information provided above: PLEASE SHOW ALL WORK AND ALL FORMULAS TO GET ANSWERS

1. Based on the information provided to you, calculate the following: (20 Points)

a.Glenmeadies Global Market Share in terms of Volume in Liters for 2014.

b.Glenmeadies global market share in terms of revenues in USD for 2014.

c.The price at which Glenmeadie sells each 750 ml bottle to its distributors in 2014.

d.The retail price for each 750 ml bottle in US Dollars in 2014.

e.The total variable costs incurred by Glenmeadie in 2014.

f.The total fixed costs incurred by Glenmeadie in 2014.

g.The unit contribution in US Dollars per 750 ml bottle of Glenmeadie sold in 2014.

h.The breakeven number of liters of Glenmeadie that would have to be sold in 2014.

i.Glenmeadies profit impact in US Dollars in 2014.

j.The market share in volume and revenues that Glenmeadie needs in 2014 for breakeven.

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2. Now assume that in 2015, Glenmeadie increased the advertising, newsletter, loyalty card program and other promotional events (including tastemaker gatherings) budgets by 40% (from the 2014 expenditure levels) (10 Points)

a.How many 750 ml bottles would Glenmeadie have to sell in 2015 to breakeven?

b.How many 750 ml bottles would Glenmeadie have to sell in 2015, in order to achieve the same profit impact that it did in 2014?

c.What will Glenmeadies market share, in terms of revenue, have to be in 2015 for its profit impact to be the same as in 2014?

d.What will Glenmeadies market share have to be, in terms of volume, in 2015 to ensure a 45% increase in profit impact compared to 2014?

3. Based on the information provided to you, calculate the following: (20 Points)

a.The cost of acquiring a new customer in 2014

(Hint: Need to consider all activities undertaken by Glenmeadie to acquire new customers).

b.The average contribution rate per customer in 2014.

c.The customer retention rate in 2014.

d.The survival probability of a new customer acquired in 2014 over the first 6 years.

e.The expected life of a Glenmeadie customer acquired in 2014.

f.The CLV of a Glenmeadie customer acquired in 2014 (using the simple formula).

g.The CLV of a Glenmeadie customer acquired in 2014 over the next 10 years (using the more

complex formula).

h.The CLV of a customer acquired in 2014 incorporating the time value of money.

GLOBAL WHISKY MARKET VALUE Year Revenues in USD 2013 58,750,000,000 2014 $64,250,000,000 2015 $77,500,000,000 2016 $80,225,000,000 GLOBAL WHISKY MARKET VOLUME Year Volume in Liters 2013 7,963,000,000 2014 8921,461,000 9,302,627,000 2015 2016 10,114,438,000 GLOBAL MARKET SHARE FOR WHISKY SALES Company 2014 2015 2016 2013 5.80% 5.10% 5.00% Diageo plc 5.70% Pernod Ricard 4.00% 4.90% 5.10% 5.60% United Spirits Limited 4.80% 4.30% 4.60% 4.60% Others 86.00% 84.70% 85.20% 84.60% PER CAPITA WHISKY CONSUMPTION IN LITERS BY REGION AND YEAR 2013 2014 2015 2016 Average Per Capita Whisky Consumption 1.67 L 1.71 L 1.82 L 1.96 L