ROI= (Incremental

profit- cost of the

campaign)/ cost of
the campaign

ROI=Return on Investment:
Butterfinger Hot Chocolate
Marketing Activities
Units produced
Cost per unit
Labor hours
Cost per hour
Cost of campaign
Number of views
Response Rate %
Number of conversions (purchased)
Cost per acquisition
Avg unit per customer
Incremental units sold
List price per unit (for sale price)
Discount (if any)
Revenue per unit
Cost per unit
Contribution margin per unit ($)
Incremental profit
ROI=Return on Investment
$ in profit/ $ in marketing

Lawn
Signs
20
$ 5.00
4
$ 8.00
$ 132.00
25000
0.10%
25
$ 5.28
1
25
$ 3.75
$
$ 3.75
$ 1.16
$ 2.59
$ 64.75
-51%
$ 0.49

Free social
media

paid social
media
0

$
$
$

$
$
$
$
$
$
$

7
8.00
56.00
500
1.00%
5
11.20
1
5
3.75
3.75
1.16
2.59
12.95
-77%
0.23

$
$
$

$
$
$
$
$
$
$

1
50.00
2
8.00
66.00
10000
0.50%
50
1.32
1
50
3.75
3.75
1.16
2.59
129.50
96%
1.96

coupon
$
$
$

$
$
$
$
$

200
0.03
8
8.00
70.00
600
30.00%
180
0.39
1
180
###
0.38
3.38
###
2.22
398.70
470%
5.70

promotion
20% off
$
$
$

$
$
$
$
$
$
$

#3 I think our best ROI is going to be coming from our 20% off
promotions and secondly will be from our coupons or other deals of
10% off. I am not sure the exact amount to spend because it costs us
money to promote and then we lose money on the selling price.
However, our incremental profit is the highest. I would at least twice
as much for the 20% off promotion of $130.
#4 I think we will need to measure or track everything per customer
from here on out. Per customer we need to track: Returning customer
or not, how they heard about us, what they ordered, if the promotion
made a difference or not, if they have brought anyone to the booth
with them. Then we can compare it to our marketing techniques and
the associated numbers and costs. We need to have our cashier do
the numbering. One person can take the orders and then they go to
the cashier then the cashier can ask a few questions. This should be
done everyday and up loaded with the cash box information we
submit to our hard drive each day after the deposits are made.

1
25.00
5
8.00
65.00
5000
5.00%
250
0.26
1
250
3.75
0.75
3.00
1.16
1.84
460.00
608%
7.08