Ron 1 erud d out of A manager of an Ice Cream Factory is trying to calculate the ROMI % for a Marketing Campaign. She intends to mall out 7,000 coupons in a month in her immediate trading area. The response rate (the number of sales generated from each coupon) is 7%. The average value for each ice cream order is $20. The variable costs per order are 55. The creative costs are $2000, and it costs 15 cents to print and mail out each coupon Calculate the ROM for the marketing original campaign on Answer: If the manager from the previous question decides to mail 10,000 coupons instead by incurring on a variable cost increase of 5%. Would this perform better than the original strategy? What would your recommendation be? Remember the following: Price is $20 Original Variable Cost = $5 Creative Cost = $2,000 Print and Mailing cost = 0.15 Response rate = 7% Select one: O a. Yes, the new strategy outperforms the original by more than 50 percent points Ob. No, the new strategy underperforms the original by more than 50 percentage points Oc. It does matter, both strategies perform equally O d. Yes, the new strategy outperforms the original by more than 10 percentage points Oe. No, the new strategy underperforms the original by more than 10 percentage points A manager has access to a loyalty program database that allows her to know that an Ice Cream customer cost $75 to acquire and generates a yearly profit of $800 with a retention rate of 85%. If the average lifetime of a customer is 5 years, please calculate the Customer Lifetime Value using a 7% discount rate. Calculate the CLV for this manager Answer: Assume the following: The price of a single Ice Cream scoop is $5 with a cost of 50 cents per unit sold. Calculate the markup percentage for each distribution channel member AND recommend the price that gives to the retailer a Mark Up of 65% Note: Factory Price =$5; Wholesaler Price = $7.50. ANSWER The manufacturer has a Mark Up of while the wholesaler has a Mark Up of The suggested price for the retailer should be if a 65% Mark Up is the goal 900 50 12.37 4.87 450 150