20 Mar Digital Media
Case Study: Goat Pizza Shops
The zipcode that I choose will be 77406. a classmate gave me his answers. I cant used his asnwers.
1. Which EDDM carrier routes are you choosing, with how many coupons drops once a month? (Note: Coupon printing cost is $.05) Remember, you only have a $1,000 budget to spend on your initial test EDDM mailing and printing.
Of the routes chosen, they yelled a cost of $983.60 for 4918 mail pieces in the 77479 area.
77479-R043
77479-R042
77479-R039
77479-R037
77479-R036
77479-R035
77479-R034
2. If your net revenue per coupon redeemed for a pizza is $8.00 (note: printing cost are part of your promotion cost, not pizza cost), how many coupons need to be delivered, and how many pizzas need to be sold to Break Even if your coupon redemption rate is 5%?
If the redemption rate is only 5%, then of the 4918 people the coupon was sent to, only 246 replied.
So, taking the BEP equation into account we get for original cost $1000/ ($12-$3) =111.11 to break even. With the Coupon its $1000/ ($8-$3) =200 to break even. But since only 5% of the people redeemed that means only 10 pizzas were sold. So, another 190 pizzas need to be sold to break even with the coupon.
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