Business, 17.06.2021 17:40 anrs14

Pepperidge Farms, makers of quality baked goods has increased its sales in the U. S. by a minimum of 15% each year for the past 10 years. In 2021, they will be launching products (3) into a new food space: Specialty Treats for Dogs. This represents an entirely new Customer Segment and as result, will require heavy spend to capture Market Share in this competitive space. As Marketing V. P., you are preparing a presentation to senior management. One of the items you feel is important to cover is the Cost of Customer Acquisition (CCA). Your Brand Director for Pepperidge Farms Specialty Dog Treats has determined that it will cost $1,000,000 in total for all Marketing activities for these 3 new products and the attainment of NEW customers. She estimates that this will result in a total of 5,000 NEW customers in the calendar year 2021. Initial projections are that this will carve out a 7% Market Share for this Market Segment, with sales totaling $500,000 the first year, $1,000,000 in year 2, and $2,800,000 in year 3. What is the CCA (Customer Acquisition Cost) in 2021 for the above projections?

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