Use the test results in Table 16-4 "Weekly Unit Sales of Betty Spaghetty in Test and Control Cities" on page 199 (maybe a different page on your e-book) to forecast sales in units for Betty Spaghetty's Color Crazy for the remaining of the test year, with vs. without advertising. (5 points)
| TABLE 16-4 | Color Crazy test (AZ) | GO-GO Glam (AZ) | Color Crazy Control (CA) | GO-GO Glam Control (CA) |
| week 1 | 30 | 56 | 1 | 12 |
| week 2 | 28 | 59 | 5 | 18 |
| week 3 | 51 | 51 | 7 | 36 |
| week 4 | 54 | 40 | 17 | 46 |
| total | 163 | 206 | 30 | 112 |
2. Please refer to the Table 16-6 "Sales Data on Selected Products" on page 206, based on the sales data of Eiffel Tower nanoblock, what is the MROI for the Amazon Gold Box promotion experiment? (5 points) Hint: compare results from Jan-Feb 2012 to March 2012 and calculate the sales revenue lift to plug into the MROI formula.
TABLE 16-6:
| Ohio Art Product | sales price | Jan-Feb 2012 | march 2012 | may 2012 | |
| nanoblock eiffel tower | $19.99 | 274 | 686 | 219 | |
| nanoblock taj mahal | $19.99 | 308 | 163 | 132 | |
| nanoblack castle neuschwanstein | $19.99 | 244 | 184 | 146 | |
| Classic EAS | $12.99 | 344 | 352 | 399 | |
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1. Use the test result in Arizona and California (Table 16-4) to forecast sales in units for Betty Spaghetty's Color Crazy for the remaining of the test year, with and without advertising. Use the two graphs shown below to derive the formulae. Color Crazy with advertising (based on Arizona data) Arizona Test: # of stores in test Arizona Chain Sales: # of stores in test / AZ store chain sales % National Chain Sales: Arizona Chain Sales / National Chain Sales % All Retail: National Chain Sales / All Retail % Remaining Season: All Retail % / Remaining Season % Color Crazy without advertising (based on California data) Use the same formulae as above California Control: California Chain Sales: National Chain Sales: All Retail: Remaining Season: Eiffel Towernanoblock Feb sales: Sales #1 2' = @ Regular price Revenue = Feb sales Regular price = March sales = units, with units@$Sale price and units @$Regular price $ 11 $ Revenue = # of units *Sales prince + #units*19.99 = $ Short Term Lift = $Revenue - Feb $Revenue = $ Page 206 states that Amazon charges 10% of sales generated from the Gold Box promotion as advertising fee, which is $390. And the loss due to promotion discount is Feb sales units* (Reg price-Sale price) = Feb sales units *$__=$__. The two parts (advertising fee + total promotion discount) combined is $ _, which is considered as the cost of lift, i.e. marketing investment Baseline-Lift MROI = (Short-term Lift - Cost of Lift) / Marketing Investment* 100% MROI =( % Remaining Season (10%) All Retail (25%) National Chain Sales (12%) California Chain Sales (10%) California Control Remaining Season (10%) All Retail (25%) National Chain Sales (2% Arizona Chain Sales (50%) Arizona Test 1. Use the test result in Arizona and California (Table 16-4) to forecast sales in units for Betty Spaghetty's Color Crazy for the remaining of the test year, with and without advertising. Use the two graphs shown below to derive the formulae. Color Crazy with advertising (based on Arizona data) Arizona Test: # of stores in test Arizona Chain Sales: # of stores in test / AZ store chain sales % National Chain Sales: Arizona Chain Sales / National Chain Sales % All Retail: National Chain Sales / All Retail % Remaining Season: All Retail % / Remaining Season % Color Crazy without advertising (based on California data) Use the same formulae as above California Control: California Chain Sales: National Chain Sales: All Retail: Remaining Season: Eiffel Towernanoblock Feb sales: Sales #1 2' = @ Regular price Revenue = Feb sales Regular price = March sales = units, with units@$Sale price and units @$Regular price $ 11 $ Revenue = # of units *Sales prince + #units*19.99 = $ Short Term Lift = $Revenue - Feb $Revenue = $ Page 206 states that Amazon charges 10% of sales generated from the Gold Box promotion as advertising fee, which is $390. And the loss due to promotion discount is Feb sales units* (Reg price-Sale price) = Feb sales units *$__=$__. The two parts (advertising fee + total promotion discount) combined is $ _, which is considered as the cost of lift, i.e. marketing investment Baseline-Lift MROI = (Short-term Lift - Cost of Lift) / Marketing Investment* 100% MROI =( % Remaining Season (10%) All Retail (25%) National Chain Sales (12%) California Chain Sales (10%) California Control Remaining Season (10%) All Retail (25%) National Chain Sales (2% Arizona Chain Sales (50%) Arizona Test
