Customers and growth: the economics of marketing
Which stage should a snack launch fix?
The prompt
Use the funnel above. The fictional brand reaches 60 percent of 3 million target households. 50 percent of those reached become aware, and 40 percent of the aware consider it. 25 percent of those try it, and 30 percent of triers buy again. A trier buys 1 pack; a repeat buyer buys 10 more packs in the year. Each pack brings the brand AED 5 of contribution, and launch marketing costs AED 2.5 million. Does year one pay, and is it better to lift trial from 25 to 30 percent or repeat from 30 to 40 percent?
Before you reveal anything, plan your own structure and first move on paper. Then reveal one part at a time and compare.