Marketing Objective Worsheet

retention/acquisition spending allocation retention/acquisition revenue

description expenditure acquisition % acquisition $ retention % retention $ acquisition revenue retention revenue
advertising 2,000,000 80% $ 1,600,000 20% $ 400,000 acquisition target population 8,000,000 retention target population 2,000,000
sales promotion 5,000,000 30% 1,500,000 70% $ 3,500,000 total acquisition spending $ 7,650,000 total retention spending $ 8,850,000
public relations 1,000,000 50% 500,000 50% $ 500,000 acquisition conversion probability 10% retention conversion probability 80%
new project planning 500,000 80% 400,000 20% $ 100,000 total new customers acquired 800,000 total customers retained 1,600,000
customer relations 1,000,000 5% 50,000 95% $ 950,000 purchases per customer, period 1 $ 100.00 purchases per customer, ongoing $ 150.00
new product development 1,000,000 90% 900,000 10% $ 100,000 total acquisition revenues $ 80,000,000 total retention revenue $ 240,000,000
market research 2,000,000 75% 1,500,000 25% $ 500,000 expenditure per prospect $ 9.56 expenditure per customer $ 5.53
training 2,000,000 10% 200,000 90% $ 1,800,000 contribution to total revenue 25% contribution to total revenue 75%
web site development 1,000,000 50% 500,000 50% $ 500,000
community service activities 1,000,000 50% 500,000 50% $ 500,000
- 0% - - -
- 0% - - -
- 0% - - -
- 0% - - -
- - -
- - -
*excludes capital expenditures - - -
total: $ 16,500,000 46% $ 7,650,000 54% $ 8,850,000
 acquisition/stimulate demand
# of potential users (not currently in category) 1,000
BODIES percent interested in MV & DV 50%
= Target Audience 500
* probability of conversion 0%
= # of new category users 1
BEHAVIORS * current market share (fair share accrual of new users) 1%
= # of new brand users 0
# units purchased per customer = total volume 2
BUCKS average price paid per unit = total revenue $1.49
= incremental acquisition/stimulate demand revenues $ 0

acquisition/steal share
# of competitive brand users 68,790,107
BODIES % interested in MV & DV 40%
=Target Audience 27,516,043
* probability of conversion 1%
BEHAVIORS
= # of new brand users 275,160
# units purchased per customer = total volume 613
BUCKS average price paid per unit = total revenue $1.49
= incremental acquisition/steal share revenues $ 251,323,280

0.2090694145
 BODIES

BEHAVIORS

BUCKS

BODIES

BEHAVIORS

BUCKS

retention/steal share

BODIES

BEHAVIORS

BUCKS
 retention/stimulate demand (value)
# of current brand users 627,066
= Target Audience 627,066
* probability of conversion (note: those customers not converted are lost) 1%
= of retained brand users at new price 6,271
percent increase in price paid per unit 10%
# units purchased per customer = total volume 650
average price paid per unit $ 1.59
- lost revenue from lost customers $ 428,348.78
= incremental retention/stimulate demand revenue $6,052,378

retention/stimulate demand (volume)

# of current brand users 627,066
* % interested in MV & DV 100%
= Target Audience 627,066
* probability of conversion 50%
= number of "incremental use" users 313,533
= incremental units purchased 200
average price paid per incremental unit $ 1.49
= incremental retention/stimulate demand revenue $93,432,834

retention/steal share
# of current brand users 715,614
% using competitive brand 21%
= number of dual-brand users 149,563
% interested in MV & DV 90%
= Target Audience 134,607
* probability of conversion 5%
= number of "incremental use" dual brand users 6,730
number of incremental units stolen 275
current price/unit $1.49
= retention/steal share revenues $2,757,761
 Competitive data: enter category name, competitors and data in selected boxes.
name dollar sales (000) share
category Fast Food $ 47,900,000 100.0%
Our Brand Subway 5,300,000 11.1%
comp1 McDonald's 20,000,000 41.8%
comp2 Wendy's 6,600,000 13.8%
comp3 Burger King 10,000,000 20.9%
comp4 Taco Bell 4,000,000 8.4%
comp5 KFC 2,000,000 4.2%
comp6 -
comp7 -
comp8 -
comp9 -
comp10 -
Sales numbers are illustrative.
 Brainstorm segmentation variables: enter all possible variables and ratings into appropriate section.
When finished, select 2 variables to plot by entering a "1" and "2" into the "select" cell next to the variable.
brand competitor competitor competitor competitor competitor category Importance
Subway McDonald's Wendy's Burger King Taco Bell KFC Fast Food
Select Variable value value value value
flavor 4 6 5 7 8 4
1 convenience 6 7 7 5 7 4
assortment 8 6 8 6 5 3
2 fresh/healthy 8 4 6 3 5 2
kid friendly 2 8 6 6 4 3
good value 8 4 6 4 5 4

1= Main variable
2= Dynamic Variable
 Competitive plot: Chart will update automatically
based upon values entered previously.
1 2
market
variable 1 variable 2 share
need for convenience need for fresh/healthy
1 Subway 6 8 11%
2 McDonald's 7 4 42%
3 Wendy's 7 6 14%
4 Burger King 5 3 21%
5 Taco Bell 7 3 8%
6 KFC 4 3 4%
need for fresh/healthy

competitive plot
9
8
7
Subway
6
5
McDonald's
4
3 Wendy's
2
1 Burger King
0
0 1 2 3 4 5 6 7 8
need for convenience