Question: Excel Tables below: HF structure Profit margin (= profit / box_price) 25% Cohort Initial size (week 1) 1,000 Retention see breakdown Av. order value $102

 Excel Tables below: HF structure Profit margin (= profit / box_price)

Excel Tables below:

HF structure
Profit margin (= profit / box_price) 25%
Cohort
Initial size (week 1) 1,000
Retention see breakdown
Av. order value $102
Discounts see breakdown
Additional acquisition cost (at week 1) $65
Breakdown - Discount offer and retention assumptions
week discount cohort retention (=number of customers ordering a box as a % of previous week)
1 50%
2 0.9
3 0.89
4 0.89
5 50% 0.95
6 0.82
7 0.89
8 0.84
9 0.82
10 20% 0.93
11 0.84
12 0.92
13 0.4
14 1.5
15 0.9
16 0.78
17 0.78
18 0.92
19 0.89
20 0.88
21 0.87
22 0.78
23 0.9
24 0.92
25 0.78
26 0.8
27 0.89
28 0.84
29 0.89
30 0.84
31 0.86
32 0.81
33 0.9
34 0.81
35 0.82
36 0.83
37 0.85
38 0.84
39 0.81
40 0.86
41 0.91
42 0.79
43 0.84
44 0.88
45 0.87
46 0.89
47 0.78
48 0.8
49 0.85
50 0.87
51 0.92
52 0.89

1. Understanding data a. On top of the discounts offered on boxes 1,5,10, the model includes additional acquisition costs (\$65). Please list examples of what this may include for Hellofresh. b. In the attached data table, retention_week_14 =1.5. Please give an example of a situation where the cohort retention would logically drop and rebound within a few weeks. 2. Computing profitability a. How many boxes should a customer order to turn profitable? b. After how many weeks is a cohort profitable? c. What % increase in retention (added as percentage points) do I need to justify an additional acquisition costs 1.5x as large ($651.5x). d. Suppose we have the possibility to acquire 10% customers or increase our retention by x%. What's the equivalent uplift in retention to get as many boxes? (i.e. what is x ?). e. Our goal is to maximize cohort added value by incentivizing loyalty. Give an alternative discount structure that we could implement. Please list your assumptions clearly. 1. Understanding data a. On top of the discounts offered on boxes 1,5,10, the model includes additional acquisition costs (\$65). Please list examples of what this may include for Hellofresh. b. In the attached data table, retention_week_14 =1.5. Please give an example of a situation where the cohort retention would logically drop and rebound within a few weeks. 2. Computing profitability a. How many boxes should a customer order to turn profitable? b. After how many weeks is a cohort profitable? c. What % increase in retention (added as percentage points) do I need to justify an additional acquisition costs 1.5x as large ($651.5x). d. Suppose we have the possibility to acquire 10% customers or increase our retention by x%. What's the equivalent uplift in retention to get as many boxes? (i.e. what is x ?). e. Our goal is to maximize cohort added value by incentivizing loyalty. Give an alternative discount structure that we could implement. Please list your assumptions clearly

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