CASE 15-1 SEAL RITE ENVELOPE COMPANY (B) Profitability Analysis A 5 Rose Douglas, Seal Rite Envelope Company's sales menunit scanned a print 15-14. She did not like what she ww, the mold out of a profitability analyse of the com a lecture in college given by an old marketing par pany's customers, the had in mind that a previous foster who loved to talk about misdirected mar CRM arulysis had indicated that the firm's direct keting efforts At the time, she thought that he was pulling costs per call were $110 for the company's hopelessly out of date. No Firm in modem time 537 million sales volume last year Since the firm's could possibly allow such situations in develop average gross margin was shoul 25 percent, the Now she withed she had paid more allencan in salespeople had to get an average order of $140 for the lecture, for the suspected that she had a pan each sales call they made. Even then, a $410 average Iem with just such misdirected marketing allarts. order punt covered the direct selling expenses, That all left the ourhold capeneed uncovered. She could Questions: quickly are from the data in front of her that she had 1 What problems are indicated from the day in some problems. Table 15-1A Wanting more data on the profitability of cus- 2. What should Hone Douglas do about those boomers by their sice, she again turned to her CRM problemer and extracted the Information shown in Table TABLE 19-14 Selling Amuil Customer Number of Number Accounts 40 274 140-459 250Case 15-1: Seal Rite Envelope Company (B) (pgs. 442-443) 1. Please complete the missing data using the given data in the table and information from the case text. Evaluate Rose's result from the CRM analysis that "selling costs per call were $110 dollars". (20 points) Please write your first and last name on this document Write the due date on this document Maximum two (2) pages. Points deducted if you exceed this page limit. Total 50 points 2. Briefly explain 2 distinct problems that the company faces based on the data in the table above. (16 points) Data Explanation Problem 1 Annual Number Customer of Number $ Sales $ Sales Gross Selling Selling Selling Operating Volumne Accounts of Calls Sales Volume Volume Profit Expense Expense Expense Profit (% of (% of Total) Per Call sales (% of sales) $ volume per call (% of sales) Over $200 256 10.9 15.9 4 11.9 $100 -200 274 2.9 23.6 9.5 14.1 Problem 2 $50-99.9 32 1344 11.7 19.8 10.2 9.6 $40-49.9 24 1011 5.4 18.4 10.2 8.2 $30-39.9 25 1158 21.8 9.6 12.2 $20-29.9 63 3114 8.5 22.8 10.9 11.9 $10-19.9 157 4725 13.2 23.9 13.4 10.5 $5-9.9 349 7021 15.7 25.9 16.8 9.1 $4-4.9 235 2639 29 19.3 10.3 3. Pick one of the problems you identified in Part 2) and discuss a sales strategy how the company could address it. (14 points) $3-3.9 309 3233 5.2 31.6 21.9 9.7 $2-2.9 569 4212 7.1 31.2 25.3 5.9 $1-1.9 842 5360 6.9 30.4 34.3 -3.6 Under $1 871 6345 3.5 30.9 75.3 44.4 No sales 688 2001 0 0 0 0 Total 4172 43693 100 Average 25 20.1 5.0