estimates as expected? Why? - Are the coefficient estimates similar for both accounts? 3. (1u points) Consider the following three promotions: i 15% TPR ii. 15% TPR, 7% display iii. 15% TPR, 71% display, 100% feature Calculate tre lift factors for each promotion for both accounts, based on the regression estimates in part 2. Set estimates that are not statistically significant = 0. 4. (10 points) Perform an ROI analysis of the three promotions considered in part 3 for the two accounts, Chain D and Chain J. The promotions last for one week. You will need the following data for your analysis. The regular price of the product at both accounts is $1.20 . The variable contribution margin (VCM) for Hellman's is $0.55 per unit The manufacturer fully pays for the shelf price reduction. e.g., if the shelf price is reduced from $1.20 to $1.00, the manufacturer pays for this TPR through a $0.20 per unit (off-invoice) allowance. The fixed cost (MDF) for the promotion involving display only is $3,000 at Chain D and $5,000 at Chain J. The fixed cost for the promotion including feature and display is $4,500 at Chain D and $6,300 at Chain J. In order to estimate baseline sales, use the regression estimates and the regular price, and predict sales with display = 0 and feature = 0. You will find it useful to build an Excel spreadsheet with rows similar to the ones at the end of this document. Using these data, and the lift factors found in part 3., you can then fill in the cells for each of the three promotions at both accounts. Consider both the case of no forward buying, and the case where 50% of base units are bought forward. Units Baseline units Baseline sales in the absence of any promotion Incremental consumed units Additional units consumed due to promotion Total consumed units Total units consumed during promotion % baseline units forward buy Given Forward buy units Convert above % to units Total purchased units Grand total of all units purchased during promotion Manufacturer promotion P&L Incremental contribution Profits from additional units consumed Variable cost (consumed) Baseline money forgone due to promotion Fixed payment cost Given Forward buy cost Cost associated with forward buy units Event cost Total cost of the event Event gross contribution Net effect of incremental contribution and event cost Event ROI Gross contribution as a % of event cost