(fa)Some Super Bowl Coca Cola Promo Card MATH............
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200,000 cards distributed
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Model based on Certain Assumptions (listed below)
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assume 40% activated
80,000
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50% buy through of 3 cd's= 40,000*3
120,000 cd's, 40,000 shipments
$1.00 margin cd sales, $2.00 margin shipping
$120,000 cd sales + $80,000 shipping sales
$200,000 sub-total
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25% buy through of 2 cd's= 20,000*2
40,000 cd's, 20,000 shipments
$1.00 margin cd sales, $1.50 margin shipping
$40,000 cd sales + $35,000 shipping sales
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$75,000 sub-total
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25% buy through of 1 cd= 20,000 * 1
20,000 cd's, 20,000 shipments
$1.00 margin cd sales, $1.00 margin shipping
$20,000 cd sales + $20,000 shipping sales
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$40,000 sub-total
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50% of 50% of 3 buy throughs = reloads
20,000 reloads = $200,000 card sales
10% of reloads from total distribution
$100,000 coke
$90,000 tsig
$10,000 National Music Foundation
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Sub-totals cd sales/shipping
$315,000
Sales from card reloads
$90,000
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Total tsig
$405,000
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Revenues from advertising (hypothetical numbers)
Cost of card= $0.20
Price of card to coke = $0.50
margin = $0,30
income = 0.30 * 200,000 = $66,666.67
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Grand Total=
$405,000 + $66,666.67 = $471,666.67
Cost of advertising = $0.00
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No additional sales from the reloads
factored into this model
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Assumptions
only 40% card activation
only 10% card reload
$1.00 margin cd's
50% margin shipping
Card Production cost = 0.20
Card Mark- up 1.5 times
Card margins = 0.30
Conservative assumptions?
Conservative numbers?
Alternative numbers and assumptions?
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