X.com marketing director has consulted with a few agencies and discussed potential impact of building a few landing pages to maximize engagement, registrations and net sales on the retail website. You were hired as a consultant to help the director make a decision. The marketing manager decided to test 4 landing pages: A - \"On Sale\" products without an offer B - \"On Sale\" products with a strong offer: 30% off C - Hot New Merchandise: New Arrivals with an offer 20% off D - Hot New Merchandise: New Arrivals without an offer E (Control) - Current frontpage Assumptions: 1) All landing pages include registration bottom 2) All landing pages have a similar creative design 3) Average order revenue = $125 4) Landing page subsequent click rate off the current frontpage = 1.4%, and in external media we don't mention any promotions or discounts. 5) COGS = 30% of Gross Revenue 6) Production cost of 1 landing page = $3000 Definitions: - Engagement is defined as number of pages per visit. - Registrations are defined as number of visitors who registered but not purchased. - Net Sales is total revenue minus ( COGS, total offer costs and promotion costs). Questions/Deliverables: Write a test design including the following sections: - Marketing objectives - The profit drivers: Clearly define what are the KPIs - Detailed test design: what do we test, how do we test? o - - Test administration and implementation: o Determine at 95% confidence internal o What are the minimum samples sizes needed per cell? o Please provide start and end dates for the testing Proforma P&L o - Hypotheses testing: write at least 4 H0/H1 pairs Please develop a Proforma P&L to assess the viability and test priorities Primary and Secondary KPIs