2.2 Market-Level NMC, Marketing ROS, and Marketing ROI (Figure 2-18)

Analysis Scale
Millions
Santa Fe Sportswear
Performance		 Traditional Buyer Fashion Buyer Trend Setter Company Total
Market Demand (customers)
7.0
5.89
8.0
21
Market Share
9.0
%
3.5
%
6.0
%
4.8
Customer Volume
1
0
0
1
Average Revenue per Customer (*)
$180.00
$
$360.00
$
$130.00
$
189.94
Channel Discount
50
%
50
%
50
%
50
Net Revenue per Customer (*)
90
180
65
94.97
Sales Revenues
56.7
37.1
31.2
125.0
Percent Margin
40.0
%
35.9
%
40.0
%
38.8
Gross Profit
22.7
13.3
12.5
48.5
Marketing & Sales Expenses
$7.0
$
$6.5
$
$5.0
$
18.5
Net Marketing Cont.
15.7
6.8
7.5
30.0
G & A and Other Expenses
$8.0
$
$6.5
$
$5.5
$
20.0
Net Profit (before taxes)
7.7
0.3
2.0
10.0
Marketing Profitability Metrics
Marketing ROS
27.7
18.4
24.0
24.0
Marketing ROI
224
105
150
162

(*) Not Scaled

Starting Data Scale
Millions
Santa Fe Sportswear
Performance		 Traditional Buyer Fashion Buyer Trend Setter Company Total
Market Demand (customers)
7.0
5.89
8.0
21
Market Share
9.0
%
3.5
%
6.0
%
4.8
Customer Volume
1
0
0
1
Average Revenue per Customer (*)
$180.00
$
$360.00
$
$130.00
$
189.94
Channel Discount
50
%
50
%
50
%
50
Net Revenue per Customer (*)
90.00
180.00
65.00
94.98
Sales Revenues
56.7
37.1
31.2
125.0
Cost of Goods per Customer (*)
$54.00
$
$115.38
$
$39.00
$
58.13
Percent Margin
40.0
%
35.9
%
40.0
%
38.8
Gross Profit
22.7
13.3
12.5
48.5
Marketing & Sales Expenses
$7.0
$
$6.5
$
$5.0
$
18.5
Net Marketing Cont.
15.7
6.8
7.5
30.0
G & A and Other Expenses
$8.0
$
$6.5
$
$5.5
$
20.0
Net Profit (before taxes)
7.7
0.3
2.0
10.0
Marketing Profitability Metrics
Marketing ROS
27.7
18.4
24
24
Marketing ROI
224
105
150
162

(*) Not Scaled

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