To: Bill Fortune III who wrote (80 ) 1/31/2000 8:04:00 PM From: ztect Read Replies (3) | Respond to of 177
(fa)Some Super Bowl Coca Cola Promo Card MATH............ -------------------------- 200,000 cards distributed ---------------------------------- ---------------------------------- Model based on Certain Assumptions (listed below) ---------------------- ---------------------------- assume 40% activated 80,000 --------------------------------- -------------------------------- 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 ----------------- ----------------- 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 ----------------- $75,000 sub-total ---------------- ---------------- 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 ------------------- $40,000 sub-total ------------------------------------------- ------------------------------------- 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 -------------------------- Sub-totals cd sales/shipping $315,000 Sales from card reloads $90,000 ------------------- ------------------- Total tsig $405,000 ------------------- ----------------- 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 ---------------------- ---------------------- Grand Total= $405,000 + $66,666.67 = $471,666.67 Cost of advertising = $0.00 ----------------- ------------------ No additional sales from the reloads factored into this model ------------------ --------------------- 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? =========================