Posted: March 14th, 2016
The following specific questions are posed by the client and the analysis should aim at addressing them.
1) What are the historical contributions of DTC TV, DTC Display and Detailing? I.e., how much incremental business and profit have they generated?
2) What are the sales and profit ROIs of DTC TV, DTC Display and Detailing?
3) Generate the sales and GP (Gross Profit) response curves of DTC TV, DTC Display and Detailing.
4) How much should the company spend to maximize the net profit next month?
a. The company is contemplating to allocate $360,000 to marketing next month. They plan to allocate equally among DTC TV, Detailing and DTC Display. How should this fund be allocated among the three tactics to maximize the net profit? How much additional GP and net profit can be realized by this optimal reallocation? Assume no additional constraints on the spend level for the three tactics.
b. Same as a) but the company wants to impose ±25% constraints on the spend levels of each of the three tactics.
c. Same as a) but the budget size is $600,000.
5) How much has the competitive DTC TV hurt the business?
6) What is the influence of UR on Sales?
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