Gap kids has several options:
1 run a loyalty program in which customers who spend $500 dollars in a year gets$50 off on a coupon for their next purchase of $100, the total cost is $25,000 to manage and implement this program.
2 a direct mail campaign costs $10,000 for every 100,000 names the company purchases then company sends each person $5 off for $50 purchase coupon. the cost for mailing each coupon is $30.
3 signs a 2 yr deal with Crystal Hogan and customers who spend $50 at gap in 3 months will get tickets and passes for the concert.The deal will cost gap $1.8 million dollars.
4 increase in advertising expenditures from last yr by $10,000 per month for the next 12 months.Last yr a direct competitor had a similar increasein sales of $12,ooo monthly.
Now make a quantitative as well as qulaitative analysis of this.
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