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 no 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 bossenbutes the products early success to his distribution strategy of making sure the Russell is readily avaltable 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 Russells 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 Russer's last three years of sales The goal of this activity is to understand how channel choice affects afirms 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 cols in columns Gto Start by entering the values into columns Blo E. Then review the questions below and adjust the values in columns BloE to determine the correct answers 1 This Warehouse Department Electronics Initial Value Initial Value: Initial Valor Electronic Clubs Stores Discounters Specialty Total Warehouse Department 2 Stores Clubs Stores Discounters Specialty Stores 3 Price $ 0.00 45 S 70 $ 52 5 4 Quantity This is a numeric cell, so please enter numbers 650.000 175.000 1,000,000 300.00 5 Sales only 0 $ 0 $ $ 0 $ ol 29 250 000 12.250.000 52,000,000 19,500,04 Variable costs Ols os 0 $ $ os 0 18,850,000 $ 5,075,000 7 29.000.000 8.700.00 Fixed costs $ 1,250,000 1250,000 1.250.000 1.250.000.000,000 $1,250,000 $1,250,000 $1,250,000 8 Cooperative 1.250 06 marketing 9 $ 500,000 $ 500,000 $ expenses 500,000 $ 500,0 $ S $ 11 (1.250.000)||(1.250.000) (1.250.000 1.250,000 5,000000 58,650,000 $ 5.425,000 21.250,000 9.050 oC Return on sales (Infinly)% (Infinity Infin, % (Infinly% 30% 44% 41% 46 12 Channel of 13 Quantity sold 31% 8% 14 Channel of NaN NAN NaN NAN 0% 26% 11% 46% 17 15 Channel of total profit 25% 25% 25% 25% 100% 19% 12% 48% 20 16 Quantity sold last year 225,000 235,000 550,000 305.000 1,315.000 225.000 235,000 550.000 305.06 17 Channel quantity sold 18 17% 18% 42% 23% 100% 17% 18% 23 10 Pro 19 Quality sold 135.000 250,000 400,000 310.000 1.005.000 135.000 250,000 400.000 310.06 Channel Wor 20 quantity sold 12 37% 28% 100% 12% 23% 37% 28 Lopte begins her analys by entity ich channel generated the most com as the Russell Which on channes generated the most profil this year to select se Sady 14 Saved Help Lave EUR Subre $ 10 Pro 3 Pro $ 0.00 55 TOS 4 Quantyhose cells 650,000 175,000 1.000.000 300,0 please ente" 5 S 0 $ 0 $ 0 $ $ $ $ 29 250,000 12,250,000 52.000.000 19.5000X 6 Variable conte $ 0 $ ols 0 $ 0 $ 0 18,850,000 $ 5,075,000 29,000,000 8,700,00 $ Found costs $ 1.250,000 1,250,000 1.250.000 1.250.000 5,000,000 $1,250,000 $1,250,000 $1,250,000 1.250,00 8 Cooperative marketing 9 $ 500,000 $ 500,000 $ 500.000 $ 500.00 expensee $ (1 250.000) (1,250,000) (0,250,000 1,250,000 5,000,000) $8,650,000 $5,425,000 11 21,250,000 9,050.00 Return on sales (Infinity% infinity)% (Infinity Infinity% 30% 44% 41% 46 12 Channel of 31% 8% 47% 14 Channel of NON NAN total revenue NAN NaN 0% 26% 11% 46% 17 25% 25% total profit 25% 25% 100% 19% 12% 48% 20 16 Quantity sold 225,000 235,000 550,000 305,000 1,315,000 225,000 235,000 550,000 305,00 17 Channel of quantity sold 17% 18% 42% 23% 100% 17% 18% 42% 23 13 louantity sold 15 Channel of wy 18 Tast year 19 Onlily sold 135.000 250,000 400,000 310,000 1,095,000 135,000 250,000 400,000 310.06 two years ago Channel of 20 quantity sold two years ago) 12% 23% 37% 28% 100% 12% 23% 37% 28 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? Click to select) 2. As she dig deeper into the data, Ophelia realizes that while discounters do have a high profit level, discounters are Quite low in terms of return on sales. How can this be explained? Click to select) 3. Ophelia has begun to convince her boss that cooperative marketing support should not be allocated evenly across all four distribution channels. Mer boss suggests that they allocate the largest proportion of the marketing support to electronics specialty stores. Do you agree with this recommendation? (Click to select 4. Ophea thinks they should reallocate $250.000 in cooperative marketing expense from both warehouse clubs and specially stores to discounters, which she projects would result in a 30 percent sales increase in the discounter channel Addmonally, she fees they could charge a 360 price to discounters with the additional advertising. What would the new discounter channet percentage of total pront be after the change? Click to selech 5. Starting with the investor me channels, assume that the current Sales for warehouse clubs never reach 650.000 and only hit 500,000. The goal is to achieve a 33 percent return on es in each distrution Channel wat mooncations to price and markeong expense would help the firm reach its goa? Click to select) 18,850,000 $ 5,075,000 29,000,00 $1,250,000 $1,250,000 $1,250,00 7 $ 500,000 $ 500,000 $ 500,00 10 Profit $ 8,650,000 $5,425,000 30% 44% $ 21,250,000 41% 6 Variable costs $ 0 $ 0 $ ols 0 $ 0 $ $ $ $ Foad costs $ 1,250,000 1,250,000 1,250,000 1,250,000 5,000,000 8 Cooperative marketing 9 expenses $ $ $ $ $ 11 (1,250,000 1,250,000 1,250,000 1.250,000) (5,000,000) Return on sales (Infinity)% (Infinity)% (Infinity)% (Infinity)% 12 Channel of 13 Quantity sold Channel % of NaN NaN total revenue NaN NaN 0% 14 15 Channel of 25% total profil 25% 25% 25% 100% 16 Quantity sold last year 225.000 235,000 550,000 305,000 1,315,000 17 Channel of quantity sold 18 17% 18% 42% 23% 100% Gasty 31% 8% 47% 26% 11% 46% 19% 12% 48% 225.000 235,000 550.000 17% 18% 42% 135.000 250,000 400,000 310,000 1,095.000 135,000 250.000 400.000 19 Quantity sold two years ago Channel of 20 quantity sold two years ago) 12% 23% 37% 28% 100% 12% 23% 37% 1 Ophelia begins het analysis by identifying which channel generated the most profit from sales of the Russel which distribution channel generated the most profit this year? Discounters Warehouse clubs Department stores Electronics specialty stores All channels generate profit equally es that we discounters do have a high pro vel discounters are be explained 3. One has begun to convince her boss that cooperative manting or should not be located evenly across all four distribution channels. Her boss suggests that they catere largest proportion of the marketing support to cons secas. Do you agree with recommendation Click to select Open they would care sa incerto 10 Pro 3 $8,650,000 $5,425,000 30% 21.250,0 41 31% 8% 47% $ $ $ 11 (1.250,000)|(1,250,000 1,250,000 1,250,000) (5,000,000) Retum on sales (Infinity Infinity Infinity%(Infinity)% 12 Channel of 13 quantity sold Channel of total revenue NaN NaN NaN NAN 0% 14 Channel of 15 total profit 25% 25% 25% 25% 100% 16 Quantity sold 225.000 235,000 550.000 305.000 1.315.000 17 Channel of quantity sold 17% 18 18% 42% 23% 100% last year) 26% 11% 46% 19% 12% 48% last year 225,000 235,000 550,000 17% 18% 42% 135.000 250,000 400,000 310,000 1,095,000 135,000 250,000 19 Quantity sold two years ago Channel of 20 quantity sold wo years ago 400,000 12% 23% 37% 28% 100% 12% 23% 37% 1 Ophet begins her analysis by identifying which channel generated the most profit from sales of the Russell Which Ostution channel generated the most pros year? Click to select 2. As she dig deeper into the data, Ophelia rzes that we discounters do have a high prontleves discounters are Quite low interns of return on sales. How can this be expand Discounters have proportionally higher variable costs Discounters have larger fixed costs than the other charm Discounters only pay $52 for the Russell with 41 percent return on males The price that discounters pay for the use is lower than any other channel Return on sales is calculated based on sales wome, not profit ocked evenly cross hanting support to 4. Opheathey should cate 1250.000 orang expense om house and specialty shresto Oscounters, which she would restin centras Channel Adonay, she feels they could change a 160 pct common would the discover than percentage of probeer te change Click to select $ 8,650,000 $5,425,000 $ 21,250,000 9,050,04 41% 46 30% 10 Profit (1,250,000 0.250,000 1,250,000) (1,250,000)|(5,000,000) Return on sales (Infinity Infiny (Infinity)% infinity)% 12 Channel of 13 y sold Channel of NON NAN total revenue NaN NaN 14 Channel of 15 total profe 25% 25% 25% 25% 100% 31% 8% 47% 14 0% 26% 11% 46% 17 19% 12% 48% 20 16 Quantity sold 225,000 235.000 st 550.000 305.000 1.315,000 225,000 235,000 550.000 305,00 17 Charnel Sol quantity sold 17% 18% 23% 100% 17% 18% 18 asta 42% 23 135,000 250.000 400,000 310,000 1,095,000 135,000 250,000 400.000 310.00 19 Quantity sold two years ago Channel of 20 sold two years ago) 12% 23% 37% 28% 100% 12% 23% 37% 28 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? Click to select 2. As she is deeper into the data Ophelia realize that we discounters do have a high profit level, discounters are quite low in terms of return on sales. How can this be explained? Click to select 3. Ophetas begun to convince her boss that cooperative marketing support should not be allowed evenly across tourstion channes Her boss suggests that they won the largest proportion of the marketing suport cons specialty stones. Do you agree with the recommendation No, because electronics specialty stores do not generate a sufficiently high retur sales Yes, because increasing cooperative marketing support will result in more sales Yes, because sector especially stores generate the largest percentage of the first No, because slectronics specialty store find contre too high No, because the proportion of sales generated from electronic specially tors has been declining over the past three years Click to seed B 5.waves for the channes, that the reason who never 690.000 do 500.000. The goal is to che percent ones in each channel (click to select (1.250,000|(1,250,000 (1,250,000) (1,250,000) (5,000,000) elum on sales in fin, ty)% in fin, tyy%(Infinity)% Infinity% 21,250,000 41% 9.05 30% 44% 31% 8% 47% hannel of antly sold Channel of stal revenue Channel of total profil NAN NaN NaN NaN 0% 26% 11% 46% 1 25% 25% 25% 25% 100% 19% 12% 48% 20 Quantity sold Last year 225,000 235,000 550,000 305,000 1,315,000 225.000 235,000 550,000 305.06 Channello quantity sold last year) 17% 18% 42% 23% 100% 17% 18% 42% 23 135,000 250,000 400,000 310,000 1,096,000 135,000 250.000 400,000 310.00 Quantity sold two years ago Channel of quantity sold two years ago) 0 12% 23% 37% 28% 100% 12% 23% 37% 28 Ophelia begins her analysis by identifying which channes generated the most prom rom sales of the Russell Which stribution channel generated the most profit the year! (Click to select) 2. As she dig deeper into the data, Ophears that while discounters do have a high profit level, discounters are quite low in terms of return on sales. How can this be explained? (Click to select) 3. Ophelia has begun to convince her boss that cooperative marketing support should not be allocated evenly cross all four distribution channels. Her boss suggests that they allocate the largest proportion of the marketing support to electronics specialty stores. Do you agree with this recommendation? Click to select 4. Ophelia tiny should reallocate $250.000 in cooperative marketing expense from both warehouse clubs and Specialty stores to discounters, which she projects would result in a 30 percent sales increase in the counter channel Addionally, she feels they could change a 100 pace to discounters with the additional advertising. What would the new discounter channel percentage of total pont be ane the change es for the channels that the current sous clubs never reach 000. The 10 Hevea 39 percent return on esineacht channel te and mange pense would heather 3. Ophelia has begun to convince her boss that cooperative marketing support should not be allocated evenly across all four distribution channels. Her boss suggests that they allocate the largest proportion of the marketing support to electronics specialty stores. Do you agree with this recommendation? (Click to select) 4. Ophella thinks they should reallocate $250,000 in cooperative marketing expense from both warehouse clubs and specialty stores to discounters, which she projects would result in a 30 percent sales increase in the discounter channel Additionally, she feels they could charge a $60 price to discounters with the additional advertising. What would the new discounter channel percentage of total profit be after the change? (Click to select) 5. Starting with the initial values for the channels, assume that the current sales for warehouse clubs never reach 650,000 and only hit 500,000. The firm's goal is to achieve a 39 percent return on sales in each distribution channel. Standard ONDORCOL balsta (Click to select) Increase the price to $50 and decrease the cooperative marketing expense to $300,000 Increase the price to $53, but keep the cooperative marketing expense at $500,000 Increase the price to $49 and decrease the cooperative marketing expense to $350,000 Increase the price to $54 and decrease the cooperative marketing expense to $200,000 Keep the price at $45, but decrease the cooperative marketing expense to $250,000 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 no 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 bossenbutes the products early success to his distribution strategy of making sure the Russell is readily avaltable 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 Russells 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 Russer's last three years of sales The goal of this activity is to understand how channel choice affects afirms 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 cols in columns Gto Start by entering the values into columns Blo E. Then review the questions below and adjust the values in columns BloE to determine the correct answers 1 This Warehouse Department Electronics Initial Value Initial Value: Initial Valor Electronic Clubs Stores Discounters Specialty Total Warehouse Department 2 Stores Clubs Stores Discounters Specialty Stores 3 Price $ 0.00 45 S 70 $ 52 5 4 Quantity This is a numeric cell, so please enter numbers 650.000 175.000 1,000,000 300.00 5 Sales only 0 $ 0 $ $ 0 $ ol 29 250 000 12.250.000 52,000,000 19,500,04 Variable costs Ols os 0 $ $ os 0 18,850,000 $ 5,075,000 7 29.000.000 8.700.00 Fixed costs $ 1,250,000 1250,000 1.250.000 1.250.000.000,000 $1,250,000 $1,250,000 $1,250,000 8 Cooperative 1.250 06 marketing 9 $ 500,000 $ 500,000 $ expenses 500,000 $ 500,0 $ S $ 11 (1.250.000)||(1.250.000) (1.250.000 1.250,000 5,000000 58,650,000 $ 5.425,000 21.250,000 9.050 oC Return on sales (Infinly)% (Infinity Infin, % (Infinly% 30% 44% 41% 46 12 Channel of 13 Quantity sold 31% 8% 14 Channel of NaN NAN NaN NAN 0% 26% 11% 46% 17 15 Channel of total profit 25% 25% 25% 25% 100% 19% 12% 48% 20 16 Quantity sold last year 225,000 235,000 550,000 305.000 1,315.000 225.000 235,000 550.000 305.06 17 Channel quantity sold 18 17% 18% 42% 23% 100% 17% 18% 23 10 Pro 19 Quality sold 135.000 250,000 400,000 310.000 1.005.000 135.000 250,000 400.000 310.06 Channel Wor 20 quantity sold 12 37% 28% 100% 12% 23% 37% 28 Lopte begins her analys by entity ich channel generated the most com as the Russell Which on channes generated the most profil this year to select se Sady 14 Saved Help Lave EUR Subre $ 10 Pro 3 Pro $ 0.00 55 TOS 4 Quantyhose cells 650,000 175,000 1.000.000 300,0 please ente" 5 S 0 $ 0 $ 0 $ $ $ $ 29 250,000 12,250,000 52.000.000 19.5000X 6 Variable conte $ 0 $ ols 0 $ 0 $ 0 18,850,000 $ 5,075,000 29,000,000 8,700,00 $ Found costs $ 1.250,000 1,250,000 1.250.000 1.250.000 5,000,000 $1,250,000 $1,250,000 $1,250,000 1.250,00 8 Cooperative marketing 9 $ 500,000 $ 500,000 $ 500.000 $ 500.00 expensee $ (1 250.000) (1,250,000) (0,250,000 1,250,000 5,000,000) $8,650,000 $5,425,000 11 21,250,000 9,050.00 Return on sales (Infinity% infinity)% (Infinity Infinity% 30% 44% 41% 46 12 Channel of 31% 8% 47% 14 Channel of NON NAN total revenue NAN NaN 0% 26% 11% 46% 17 25% 25% total profit 25% 25% 100% 19% 12% 48% 20 16 Quantity sold 225,000 235,000 550,000 305,000 1,315,000 225,000 235,000 550,000 305,00 17 Channel of quantity sold 17% 18% 42% 23% 100% 17% 18% 42% 23 13 louantity sold 15 Channel of wy 18 Tast year 19 Onlily sold 135.000 250,000 400,000 310,000 1,095,000 135,000 250,000 400,000 310.06 two years ago Channel of 20 quantity sold two years ago) 12% 23% 37% 28% 100% 12% 23% 37% 28 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? Click to select) 2. As she dig deeper into the data, Ophelia realizes that while discounters do have a high profit level, discounters are Quite low in terms of return on sales. How can this be explained? Click to select) 3. Ophelia has begun to convince her boss that cooperative marketing support should not be allocated evenly across all four distribution channels. Mer boss suggests that they allocate the largest proportion of the marketing support to electronics specialty stores. Do you agree with this recommendation? (Click to select 4. Ophea thinks they should reallocate $250.000 in cooperative marketing expense from both warehouse clubs and specially stores to discounters, which she projects would result in a 30 percent sales increase in the discounter channel Addmonally, she fees they could charge a 360 price to discounters with the additional advertising. What would the new discounter channet percentage of total pront be after the change? Click to selech 5. Starting with the investor me channels, assume that the current Sales for warehouse clubs never reach 650.000 and only hit 500,000. The goal is to achieve a 33 percent return on es in each distrution Channel wat mooncations to price and markeong expense would help the firm reach its goa? Click to select) 18,850,000 $ 5,075,000 29,000,00 $1,250,000 $1,250,000 $1,250,00 7 $ 500,000 $ 500,000 $ 500,00 10 Profit $ 8,650,000 $5,425,000 30% 44% $ 21,250,000 41% 6 Variable costs $ 0 $ 0 $ ols 0 $ 0 $ $ $ $ Foad costs $ 1,250,000 1,250,000 1,250,000 1,250,000 5,000,000 8 Cooperative marketing 9 expenses $ $ $ $ $ 11 (1,250,000 1,250,000 1,250,000 1.250,000) (5,000,000) Return on sales (Infinity)% (Infinity)% (Infinity)% (Infinity)% 12 Channel of 13 Quantity sold Channel % of NaN NaN total revenue NaN NaN 0% 14 15 Channel of 25% total profil 25% 25% 25% 100% 16 Quantity sold last year 225.000 235,000 550,000 305,000 1,315,000 17 Channel of quantity sold 18 17% 18% 42% 23% 100% Gasty 31% 8% 47% 26% 11% 46% 19% 12% 48% 225.000 235,000 550.000 17% 18% 42% 135.000 250,000 400,000 310,000 1,095.000 135,000 250.000 400.000 19 Quantity sold two years ago Channel of 20 quantity sold two years ago) 12% 23% 37% 28% 100% 12% 23% 37% 1 Ophelia begins het analysis by identifying which channel generated the most profit from sales of the Russel which distribution channel generated the most profit this year? Discounters Warehouse clubs Department stores Electronics specialty stores All channels generate profit equally es that we discounters do have a high pro vel discounters are be explained 3. One has begun to convince her boss that cooperative manting or should not be located evenly across all four distribution channels. Her boss suggests that they catere largest proportion of the marketing support to cons secas. Do you agree with recommendation Click to select Open they would care sa incerto 10 Pro 3 $8,650,000 $5,425,000 30% 21.250,0 41 31% 8% 47% $ $ $ 11 (1.250,000)|(1,250,000 1,250,000 1,250,000) (5,000,000) Retum on sales (Infinity Infinity Infinity%(Infinity)% 12 Channel of 13 quantity sold Channel of total revenue NaN NaN NaN NAN 0% 14 Channel of 15 total profit 25% 25% 25% 25% 100% 16 Quantity sold 225.000 235,000 550.000 305.000 1.315.000 17 Channel of quantity sold 17% 18 18% 42% 23% 100% last year) 26% 11% 46% 19% 12% 48% last year 225,000 235,000 550,000 17% 18% 42% 135.000 250,000 400,000 310,000 1,095,000 135,000 250,000 19 Quantity sold two years ago Channel of 20 quantity sold wo years ago 400,000 12% 23% 37% 28% 100% 12% 23% 37% 1 Ophet begins her analysis by identifying which channel generated the most profit from sales of the Russell Which Ostution channel generated the most pros year? Click to select 2. As she dig deeper into the data, Ophelia rzes that we discounters do have a high prontleves discounters are Quite low interns of return on sales. How can this be expand Discounters have proportionally higher variable costs Discounters have larger fixed costs than the other charm Discounters only pay $52 for the Russell with 41 percent return on males The price that discounters pay for the use is lower than any other channel Return on sales is calculated based on sales wome, not profit ocked evenly cross hanting support to 4. Opheathey should cate 1250.000 orang expense om house and specialty shresto Oscounters, which she would restin centras Channel Adonay, she feels they could change a 160 pct common would the discover than percentage of probeer te change Click to select $ 8,650,000 $5,425,000 $ 21,250,000 9,050,04 41% 46 30% 10 Profit (1,250,000 0.250,000 1,250,000) (1,250,000)|(5,000,000) Return on sales (Infinity Infiny (Infinity)% infinity)% 12 Channel of 13 y sold Channel of NON NAN total revenue NaN NaN 14 Channel of 15 total profe 25% 25% 25% 25% 100% 31% 8% 47% 14 0% 26% 11% 46% 17 19% 12% 48% 20 16 Quantity sold 225,000 235.000 st 550.000 305.000 1.315,000 225,000 235,000 550.000 305,00 17 Charnel Sol quantity sold 17% 18% 23% 100% 17% 18% 18 asta 42% 23 135,000 250.000 400,000 310,000 1,095,000 135,000 250,000 400.000 310.00 19 Quantity sold two years ago Channel of 20 sold two years ago) 12% 23% 37% 28% 100% 12% 23% 37% 28 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? Click to select 2. As she is deeper into the data Ophelia realize that we discounters do have a high profit level, discounters are quite low in terms of return on sales. How can this be explained? Click to select 3. Ophetas begun to convince her boss that cooperative marketing support should not be allowed evenly across tourstion channes Her boss suggests that they won the largest proportion of the marketing suport cons specialty stones. Do you agree with the recommendation No, because electronics specialty stores do not generate a sufficiently high retur sales Yes, because increasing cooperative marketing support will result in more sales Yes, because sector especially stores generate the largest percentage of the first No, because slectronics specialty store find contre too high No, because the proportion of sales generated from electronic specially tors has been declining over the past three years Click to seed B 5.waves for the channes, that the reason who never 690.000 do 500.000. The goal is to che percent ones in each channel (click to select (1.250,000|(1,250,000 (1,250,000) (1,250,000) (5,000,000) elum on sales in fin, ty)% in fin, tyy%(Infinity)% Infinity% 21,250,000 41% 9.05 30% 44% 31% 8% 47% hannel of antly sold Channel of stal revenue Channel of total profil NAN NaN NaN NaN 0% 26% 11% 46% 1 25% 25% 25% 25% 100% 19% 12% 48% 20 Quantity sold Last year 225,000 235,000 550,000 305,000 1,315,000 225.000 235,000 550,000 305.06 Channello quantity sold last year) 17% 18% 42% 23% 100% 17% 18% 42% 23 135,000 250,000 400,000 310,000 1,096,000 135,000 250.000 400,000 310.00 Quantity sold two years ago Channel of quantity sold two years ago) 0 12% 23% 37% 28% 100% 12% 23% 37% 28 Ophelia begins her analysis by identifying which channes generated the most prom rom sales of the Russell Which stribution channel generated the most profit the year! (Click to select) 2. As she dig deeper into the data, Ophears that while discounters do have a high profit level, discounters are quite low in terms of return on sales. How can this be explained? (Click to select) 3. Ophelia has begun to convince her boss that cooperative marketing support should not be allocated evenly cross all four distribution channels. Her boss suggests that they allocate the largest proportion of the marketing support to electronics specialty stores. Do you agree with this recommendation? Click to select 4. Ophelia tiny should reallocate $250.000 in cooperative marketing expense from both warehouse clubs and Specialty stores to discounters, which she projects would result in a 30 percent sales increase in the counter channel Addionally, she feels they could change a 100 pace to discounters with the additional advertising. What would the new discounter channel percentage of total pont be ane the change es for the channels that the current sous clubs never reach 000. The 10 Hevea 39 percent return on esineacht channel te and mange pense would heather 3. Ophelia has begun to convince her boss that cooperative marketing support should not be allocated evenly across all four distribution channels. Her boss suggests that they allocate the largest proportion of the marketing support to electronics specialty stores. Do you agree with this recommendation? (Click to select) 4. Ophella thinks they should reallocate $250,000 in cooperative marketing expense from both warehouse clubs and specialty stores to discounters, which she projects would result in a 30 percent sales increase in the discounter channel Additionally, she feels they could charge a $60 price to discounters with the additional advertising. What would the new discounter channel percentage of total profit be after the change? (Click to select) 5. Starting with the initial values for the channels, assume that the current sales for warehouse clubs never reach 650,000 and only hit 500,000. The firm's goal is to achieve a 39 percent return on sales in each distribution channel. Standard ONDORCOL balsta (Click to select) Increase the price to $50 and decrease the cooperative marketing expense to $300,000 Increase the price to $53, but keep the cooperative marketing expense at $500,000 Increase the price to $49 and decrease the cooperative marketing expense to $350,000 Increase the price to $54 and decrease the cooperative marketing expense to $200,000 Keep the price at $45, but decrease the cooperative marketing expense to $250,000
