Post Graduate Program in Management

OPTIMIZING  XYZ  ANTI-­‐‑VIRUS  CAMPAIGNS CONTEXT XYZ  is  selling  anti-­‐‑virus  software  for  individuals  in  India.  Its  marketing  is  done  online  using  social  media  (Facebook,  Linkedin)  and  google  adwords.  XYZ  do  not  use  any  other  channel  to  acquire  customers.  Last  year,  they  have  50%  customers  coming  from  paid  advertisement,  10%  from  organic  traffic  and  rest  40%  were  repeat  customers.  XYZ  has  observed  that  50%  of  their  customers  renew  the  package  for  next  year.  Overall,  they  are  growing  by  20%  annually.  The  software   costs   Rs   800/year   and   cost   of   serving   an   additional   customer   during   the   year   is  negligible.  The  costs  are  primarily  fixed-­‐‑  R&D  and  marketing. You   have   been   given   2   hours   to   quickly   analyze   their   online   marketing   campaigns   and  provide  your  opinion.  Management  is  also  thinking  about  reducing  the  price  of  software  by  Rs   200-­‐‑300,   if   it   can   help   improve   the   margin   (by   reducing   acquisition   costs)   without  sacrificing  the  revenue.  They  are  also  looking  for  your  opinion  on  this. CURRENT  DATA XYZ  uses  three  channels.  They  have  created  various  campaigns  and  ads  focusing  on  specific  demographic  attributes  such  as  age  group,  location,  current  industries.  As  you  only  have  2  hours,  you  are  not  given  ad  specific  data  but  the  big  picture  analysis. Some  customers  buy  directly  from  these  ads  but  others  fill  a  form  named  “Call  me  back”  that  captures  their  phone  number,  e-­‐‑mailid,  location  and  age.  Once  the  form  is  received,  a  sales  person  calls  them  within  48  hours  and  tries  to  close  the  sales.  A  sales  person  can  handle  25  such  calls  in  a  day. The  supporting  excel  is  attached DELIVERABLE Your  deliverable  should  have:

-­‐ Some  analysis  on  these  campaigns  and  your  suggestions  for  each  of  them.  You  can  use  word,  excel,  PPT    

 -­‐ Big  picture  view  of  current  campaigns  and  your  actionable  recommendations  in  very  

few  lines      -­‐ Few  lines  on  your  opinion  about  proposed  reduction  of  the  price.    

This document forms part of the Sunstone Business School PGPM courseware. © 2014 Anytime Learning Pvt. Ltd. No part of this file can be reproduced, stored in a retrieval system, or transmitted in any form or by any means - electronic, mechanical, photocopying, recording or otherwise without the permission of Anytime Learning Pvt. Ltd.

Post Graduate Program in Management GUIDANCE Remember,  it’s  a  2  hour  exercise  so  do  not  over  analyze  (beyond  the  data  given).  Hints:    

• Understand  the  CAC  first.  Most  companies  make  mistake  here.  • Consider  all  costs.  Make  necessary  assumptions,  if  you  need  to.  • Be  precise  and  clear  in  your  recommendations.  You  can’t  be  neutral,  you  need  to  

take  decision  and  take  sides!   OUTPUT  FORMAT Excel,  PPT  or  word.  It  doesn’t  matter  as  long  as  you  are  showing  your  calculations  and  explaining  your  logic  well. This document forms part of the Sunstone Business School PGPM courseware. © 2014 Anytime Learning Pvt. Ltd. No part of this file can be reproduced, stored in a retrieval system, or transmitted in any form or by any means - electronic, mechanical, photocopying, recording or otherwise without the permission of Anytime Learning Pvt. Ltd.