(fa) Super Bowl Coca Cola Promo Card MATH: Model 2
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200,000 cards distributed
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Model based on Certain Assumptions (listed below)
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assume 25% activated
50,000
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80% buy through of 3 cd's= 40,000*3
120,000 cd's, 40,000 shipments
$1.00 margin cd sales, $1.00 margin shipping (25%)
$120,000 cd sales + $40,000 shipping sales
$160,000 sub-total
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10% buy through of 2 cd's= 5,000*2
10,000 cd's, 5,000 shipments
$1.00 margin cd sales, $0.75margin shipping
$10,000 cd sales + $3,500 shipping sales
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$13,500 sub-total
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10% buy through of 1 cd= 5,000 * 1
5,000 cd's, 5,000 shipments
$1.00 margin cd sales, $0.50 margin shipping
$5,000 cd sales + $2,500 shipping sales
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$7,500 sub-total
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50% of the 80% of 3 buy throughs reload
25,000 reloads = $250,000 card sales
12.5% of reloads from total distribution
$125,000 coke
$112,500 tsig
$12,500 National Music Foundation
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Sub-totals cd sales/shipping
$181,000
Sales from card reloads
$112,500
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Total tsig
$293,500
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Revenues from advertising (hypothetical numbers)
Cost of card= $0.25
Price of card to coke = $0.50
margin = $0,25
income = 0.25 * 200,000 = $50,000
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Grand Total=
$293,500 + $50,000 = $343,500.00
Cost of advertising = $0.00
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No additional sales from the reloads
factored into this model
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Model also doesn't account for any "viral impact"
ie. promo card recepients telling other non-recepients
about the site and its value.
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Assumptions
only 25% card activation
only 12.5% card reload
$1.00 margin cd's
20% margin shipping
Card Production cost = 0.25
Card Mark- up 1 time
Card margins = 0.25
Conservative assumptions?
Conservative numbers?
Alternative numbers and assumptions?
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