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Exhibit 1.

1 Given Data

Q1 Suppose, the time spent per session on Foodopedia is 90 seconds. The organisation
felt that this was on the lower side and they needed to improve it. Now, we have
learnt in this module about the consumer funnel and the digital platforms associated
with them.
Taking a cue from this, on which digital platforms would you NOT expand/establish the
brand if you wanted to increase the engagement rate and time spent?

A. Social Media
B. Email Marketing
C. Search
D. YouTube video ads

Ans 1 B. Email Marketing


If you want to estabished the brand, so Email Marketing is the platefrom where Brand Image is
dose not matter for customer.

Q2 Suppose, Foodopedia wants to increase its reach (B2C) from 23% to 35% in the next
4 months. Which digital platforms will you establish the brand on, in order to
achieve the objective?
Expected answer: Digital platform(s) and reason(s) for choosing the platform.

Ans 2 I am going to take Facbook because Facbook has 2.061 Billion Users till September 2017. So
if any B2C company want to increase their reach by 12% so must go with Facebook.

Q3 How many people are in Awareness stage of consumer funnel (In millions)

Ans 3 34.50 milllions Total Consumer on line is 150 millions


TG Reach 23%
Q4 How many people are in Consideration stage of consumer funnel (In millions)

Ans 4 10 million Trafic Users/ Month 1 million


Total no of month 10 month

Q5 How many people are in Purchase stage of consumer funnel (In millions)

Ans 5 75 K Total registers users 75 K

Exibit 1.2 Channel 1 Channel 2 Channel 3


Cost of channel (in Rs.) 50 per conversion 0 400000
Channel Reach 1000000 500000 5000000
Conversion to sign ups 10% 10% 2%
Conversion to first order 50% 50% 50%
Orders in subsequent months per consumer 10 5 20
Avg order size 200 200 200
Discount Coupon Value (in Rs.) 200 200 200
FoodFox margin 25% 25% 25%
Retention rate 75% 80% 60%

Q1 Customer Acquisition Cost or CAC is a very important revenue metric for any business.
Considering that FoodFox, as a business entity, operates in an extremely competitive
and cash-burning industry sector, it becomes imperative that it tracks the revenue
metrics across all its promotion channels. For this exercise, calculate the CAC that
FoodFox incurred for Channel 1 for the given time period of Jan 2016 to September
2016.
A. 208
B. 250
C. 200
D. 50

MCC
Formula CAC=
Ans 1 CA

Where
CAC= Cost of customer acquisition
MCC= Total marketing campaign costs related to acquisition
CA= Total customer acquired

Channel Reach 1000000


Conversion to sign-up 10% 100000
Conversion to first time 50% 50000

Cost of channel per each conversion 50


Total cost of conversion 2500000

Customer Acquisition Cost 50

Q2 Another important revenue parameter is the Life Time Value or the LTV.
Considering this,calculate the LTV for FoodFox for Channel 3 if its retention rate is
60%.
Instructions:
The retention rate given is for the nine-month period from Jan 2016 to September
2016.
Additional Hints:
1. You can calculate the churn rate as (100 - retention rate) %
2. The lifetime will be (1/churn rate)
3. Now, since the retention rate is already given for a 9-month period, you do not
need to worry about annual calculations. Use simple multiplication.
4. For this example, use the acquisition cost in the CLV formula across each of the
9-month periods.
5. Take the margin (which is same as profit) as 25% of the order value.
A. 1980
B. 2500
C. 2292
D. 2134

Ans 2 Calculation for channel 3


Avg monet spent on channel * Margin amount
Formula CLV
Cost as per churn rate

Cost of channel (in Rs.) 400000


Avg order size 200
Orders in subsequent months per consumer 20
Retention rate 60%
Chum rate (100-retention rate)% 40% 160000
Life time 1/Chum rate 2.5
Avg ordersize * No of
Forecost revenue in particular month per order expected orders from 4000
each conversion

Margin on expected revenue 25% 1000


Customer life time value 2500
Q3 In revenue metric terms, break-even is the point of equillibrium, where there is no profit or loss for FoodFox. We h
delivery orders from the consumers acquired from each channel and hence the break-even point is different for di
many orders per consumer are needed for Channel 2 in order to break-even (per consumer)
for FoodFox?
Instructions:
If the answer is in decimals, round it off to the next highest integer. (eg: 7.4 becomes 8)
A. 1
B. 2
C. 3
D. 4

Q4 Out of the three channels that FoodFox has used for promotion, which is the best
communication channel for FoodFox? Why? Hint: Think on the lines of CAC or LTV or both.
Do not go for any reason outside the data given.

Channel 1 Channel 2
Ans 4 Channel Reach 1000000 500000
Conversion to sign-up 10% 100000 10% 50000
Conversion to first time 50% 50000 50% 25000
Cost of channel per each conversion 50
Total cost of conversion 2500000 0

Customer Acquisition Cost 50 0 0


I am not getting answer, I was trying to do with CAC method but channel 2 and challen 3 cost of each conversion is
given. So I didnt get it.

Q5 Suggest solutions to increase subsequent orders, and hence the LTV. A minimum of two
solutions are required.

Ans 5 Solution 1- As we know FoodFox are given offer for customer acquisition, so there is no problem but after this cust
can use another site for food. So FoodFox need to do something for holding that customer. So FoodFox can run a
campaign for customer they can give a loyalty point. Like if a customer order from FoodFox 5 times in a month so t
can get extra discount on their 6th order.

Solution 2- Recently UBER are started to give a loyalty card to their customer so FoodFox also can use this type of o
they can set a target for customer to order food and they can give card verity also like,
A-> General customer
B-> Platinum card
C-> Gold card
They can set the target for all the customer and divide offers according to their purchasing capacity. If a customer c
under General card holder they will get a different discount and if a customer comes under the Platinum category
can get some discount and extra bonus point and same for gold category customer. So they can hold their custome
customer also thought he will get something at the end.
e

d Image is

ons)
ofit or loss for FoodFox. We have varied number of
even point is different for different channels. How
umer)

8)

Channel 3
5000000
2% 100000
50% 50000

0 0
3 cost of each conversion is not

o problem but after this customer


mer. So FoodFox can run a
dFox 5 times in a month so they

Fox also can use this type of offer,

sing capacity. If a customer comes


nder the Platinum category they
they can hold their customer, and