You are on page 1of 6

Page 1 of 6

Industry Project- Foodborg


Assignment Sheet

Part 1: Foodpedia
Note: Please refer to the data exhibits 3.1 (a and b) to answer questions in Part 1

Q1. In the consumer funnel, there are a different number of consumers at each of the three stages
of the consumer funnel, namely the awareness stage, the consideration stage and the purchase
stage. In the linear funnel, the people at the consideration and purchase stages are the ones that
were once a part of the awareness stage. Your task is to now calculate the number of consumers
present at each stage of the consumer funnel according to the TG for Foodpedia. Given below are
the three stages and you are required to answer in numerical values, the number of people present
at each stage.

Instructions
1. The TG (Target Group) for Foodopedia is 25-54 year old females
2. TG Reach given is the reach in % achieved by Foodopedia amongst its Target group.

Answer-

a) Awareness stage (in millions) [Note that you should only consider the TG of Foodopedia for
this stage]

100 million

b) Consideration stage (in millions)

c) Purchase stage (in millions)


Page 2 of 6

Q2. The concept of moments of truth is used to explain the user journey more appropriately in the
digital realm. This model holds for Foodopedia as well. After significant market research, it was
identified that the target audience used only 3 keywords- “Recipes”, “Cooking techniques” and
“Food” while researching about Foodopedia before visiting the website. Please compute:

a) Zeroeth moment is where a user identifies the product he/she wants to purchase and find
out as much information as possible. Not everyone who search might end up making contact
with your brand. The number of users experiencing the zeroth moment of truth (in millions)
is:

Answer:

b) The first moment of truth is experienced when a user makes contact with the brand and
informs the provider about his/her intent to purchase, or in this case, the intent to register.
Not everyone who expresses intent might actually end up purchasing/registering. The
number of users who have experienced the first moment of truth (in millions) so far is:

Answer:

c) What metric(s) will you track for users experiencing second moment of truth? (Mention the
metrics you will use and why)

(Word limit: 90)

Answer:

Q3. Suppose Foodopedia wants to increase its reach (B2C) from 23% to 35% in the next 4 months.
Which digital channel(s) will you use to establish the brand, in order to achieve the objective?

(Word limit: 90)


Page 3 of 6

Expected answer: At least 3 Digital channel(s) and reason(s) for choosing the platform.

Answer:

Q4) An important metric to keep in mind at the consideration stage is the bounce rate. For
Foodopedia, on further investigation, it was found that out of all the sessions, 55% sessions ended
after interaction with multiple pages and the rest ended after interacting with just the landing page.
Calculate the bounce rate for Foodopedia.

Answer:

a) Another important metric to keep track of at the purchase stage is the conversion rate.
Calculate the conversion rate for Foodopedia by referring to the data in the exhibit.

Answer:

b) The average conversion rate for this industry is 2.5% and the average bounce rate is 30%.
What can you identify from these two metrics about the content at Foodopedia?
(Word limit: 80 words)

Answer:
Page 4 of 6

Part 2: FoodFox
Q5. As we have seen in the module, customer acquisition cost or CAC is a very important revenue
metric for any business. CAC incorporates the average amount a company spends to acquire a
customer. It includes all the amount that the firm had to spend to nudge a customer towards his/her
first purchase. Considering that FoodFox, as a business entity, operates in an extremely competitive
and cash-burning industry sector, it becomes imperative that it tracks the revenue metrics across all
its promotion channels. For this exercise, calculate the CAC that FoodFox incurred for Channel 1 for
the given time period of Jan 2016 to December 2016.

A. 208
B. 250
C. 200
D. 50

Instructions:

1. Refer to the data exhibit 3.2 to answer this question

Answer:

Q6. Another important revenue parameter that you have learnt about is the lifetime value or the
CLV. Considering this, calculate the CLV for FoodFox for Channel 3 if its retention rate is 60%.

A. 1,980
B. 2,500
C. 2,292
D. 2,134

Instructions:

1. Refer to the data exhibit 3.2 to answer this question


2. The retention rate given is for the period from Jan 2016 to Dec 2016

Additional Hints:

1. You can calculate the churn rate as (100 - retention rate) %


2. For this example, use the acquisition cost in the CLV formula as taught in the module
lectures
3. Take the margin (which is same as profit) as 25% of the order value
Page 5 of 6

Answer:

Q7. Out of the three channels that FoodFox has used for promotion, which is the best
communication channel for FoodFox? Why? (Word limit: 90)

A. Channel 1
B. Channel 2
C. Channel 3

Instruction:

1. Refer to the data exhibit 3.2 to answer this question

Additional hint:

1. Think along the lines of CAC or CLV or both. Do not go for any reason outside the data given.
2. Firms tend to use Returns to compare various channels. Return is how much you earn as a
proportion of your investment.

Answer:

Q8. In revenue metric terms, break-even is the point of equilibrium, where there is no profit or loss
for FoodFox. We have varied number of delivery orders from the consumers acquired from each
channel and hence the break-even point is different for different channels. How many orders per
consumer are needed for Channel 2 in order to break-even (per consumer) for FoodFox?

A. 1
B. 2
C. 3
D. 4

Instructions:

1. Refer to the data exhibit 3.2 given.


2. If the answer is in decimals, round it off to the next highest integer. (eg: 7.4 becomes 8)
3. Hint: To break even, the firm would need to recover the acquisition cost.

Answer:
Page 6 of 6