Page 1 of 5Industry Project- Foodborg Assignment Sheet Part 1: Foodpedia Q1. The most idealistic consumer funnel is the one which is cylindrical in shape, i.e. the complete target audience which is aware of the product, actually purchases the product. But in a practical scenario, this is not the case. There are a different number of consumers at each of the three stages of the consumer funnel, namely the awareness stage, the consideration stage and the purchase stage. Your task is to now calculate the number of consumers present at each stage of the consumer funnel according to the TG for Foodopedia. Given below are the three stages and you are required to answer in numerical values the number of people present at each stage. Instructions 1. Refer to the data exhibits 3.1 to answer this question 2. The TG (Target Group) for Foodopedia is 25-54 year old females 3. TG Reach given is the reach in % achieved by Foodopedia amongst its Target group. Answer- a) Awareness stage (in millions) [Note that you should only consider the TG of Foodpedia for this stage] The total females in the Target Group are in the age group of 25-34, 35-44, 45-54. The numbers are respectively 50 million, 35 million, 15 million. Therefore the total in TG = 100 million. Since the TG reach is 23%, these are the females who are made aware of Foodopedia. Therefore 23% of 100 million = 23 million are the females in awareness stage b) Consideration stage (in millions) Unique users would have gone through the website and therefore we could assume that these are in consideration stage. In the Exhibit 3.1 the number provided is 10 million. c) Purchase stage (in millions) Since this is a information website. The converted users are registered users. The number provided in the exhibit 3.1 is 75,000 or 0.075 million users. Answer: In order to increase the reach in the target segment of 25 – 54 year old females we could use the following channels: Social Media: Since it is highly likely that the females in the age group would be using the Social Media (such as Facebook. cookery sites etc . Page 2 of 5 Q2. Suppose Foodopedia wants to increase its reach (B2C) from 23% to 35% in the next 4 months. in order to achieve the objective? (Word limit: 90) Expected answer: Digital platform(s) and reason(s) for choosing the platform. online shopping sites. instagram or snapchat) SEO: For searches around keywords such as investment for women etc Display ads: Display ads in websites and blogs frequented by females such as fashion blogs. Which digital platforms will you establish the brand on. 50 Instructions: 1.2 to answer this question 2. operates in an extremely competitive and cash-burning industry sector. as a business entity. calculate the CAC that FoodFox incurred for Channel 1 for the given time period of Jan 2016 to December 2016. Total Customers Acquired = Channel Reach x Conversions to sign-up x Conversion to first order = 1.000 = 2.500 C.000 customers acquired Total Acquisition cost = Direct cost of channel = INR 50 per conversion = 50 x 50. 200 D. Considering this. customer acquisition cost or CAC is a very important revenue metric for any business.000 INR CAC = Total Acquisition Cost / customers acquired = 12. Refer to the data exhibit 3.500.retention rate) % . 1. Considering that FoodFox. calculate the CLV for FoodFox for Channel 3 if its retention rate is 60%. A.2 to answer this question Answer: Assumption: Customer acquisition is considered when the customer orders for the first time. Refer to the data exhibit 3.000 INR Total Cost = 10. For this exercise.000 = 12.500. A. Another important revenue parameter that you have learnt about is the lifetime value or the CLV. Page 3 of 5 Part 2: FoodFox Q3. it becomes imperative that it tracks the revenue metrics across all its promotion channels. The retention rate given is for the period from Jan 2016 to Dec 2016 Additional Hints: 1.000 = 10. 250 C.292 D. The sign up is not considered acquisition in my answer.500. 2. 208 B.000/50.980 B.000.000 x 10% x 50% = 50.500.000 = 250 Q4.000. You can calculate the churn rate as (100 .000 INR Discount coupon value (in INR) = 200 per first order = 200 x 50. As we have seen in the module.134 Instructions: 1.000 + 2. 2.000. 2. Channel 3 Instruction: 1. Refer to the data exhibit 3. Answer: Q6. A minimum of two solutions are required. use the acquisition cost in the CLV formula as taught in the module lectures 3. Suggest solutions to increase subsequent orders. Channel 2 C.5) – 208 = 2500 – 208 = 2292 Q5. For this example. Do not go for any reason outside the data given. Channel 1 B. For example: A customer makes 8 order per two months via FoodFox. Page 4 of 5 2. which is the best communication channel for FoodFox? Why? (Word limit: 90) A. Offering this customer a loyalty discount of INR 150 per order if he makes more than 10 orders over a period of 2 .5 Cost of Acquisition = direct cost + coupon discount = 400000 + (200 x 50000) = 10400000 Cost per customer = 10400000 / 50000 = 208 CLV = (1000X2. Take the margin (which is same as profit) as 25% of the order value Answer: CLV = Annual Profit per customer x retention years – acquisition cost of channel Profit for first order = (order size – discount) x margin = (200 – 200) x 25 % = 0 Profit for subsequent orders = order size x margin x number of orders in a year = 200x25%x 20 = 1000 Retention = 100% / churn rate = 100 / 40 = 2.2 to answer this question Additional hint: 1. (Word limit: 90) Sample answer: Loyalty Offers: Promotional offers for customers above a fixed number of orders over a period of 2months. Out of the three channels that FoodFox has used for promotion. and hence the CLV. Think along the lines of CAC or CLV or both. Page 5 of 5 months. round it off to the next highest integer. If the answer is in decimals. This will ensure that customers stick to FoodFox and not go to any other competitor services.4 becomes 8) Answer: Revenue – Cost = 0 Revenue = Cost Order size x number of orders = cost of total orders 200 x N X 25000 = discount coupon cost + cost of subsequent costs 200 x N X 25000 = 200 X 25000 + 0. Refer to the data exhibit 3. 1 B.75 X 200 X N X 25000 200 X N = 200 + 0.75 X 200 X N 200 N – 150 N = 200 50 N = 200 OR N = 4 . 4 Instructions: 1. 3 D. We have varied number of delivery orders from the consumers acquired from each channel and hence the break-even point is different for different channels. where there is no profit or loss for FoodFox. (eg: 7. 2. In revenue metric terms.2 given. break-even is the point of equilibrium. 2 C. How many orders per consumer are needed for Channel 2 in order to break-even (per consumer) for FoodFox? A. Answer: Q7.