Recommend management consider adding the new program


Problem: Moonitz Inc., a consumer products firm, is considering adding a data analytics program in which it can evaluate its customers, shopping transactions and other relevant customer data to craft individualized promotions and recommend additional product offerings. Currently, Moonitz has $385 million in annual sales, generating a PM of 4.0 percent on sales and an ATO of 5.0. Moonitz's marketing group believes the data analytics program will increase annual sales by $40 million, with an additional investment in working capital of $4 million to support the increased sales. Costs to run the data analytics program will reduce firm-wide PM to 3.9 percent. Based solely on the above financial consideration, explain whether or not you would recommend management consider adding this new program.

Request for Solution File

Ask an Expert for Answer!!
Marketing Management: Recommend management consider adding the new program
Reference No:- TGS03431923

Expected delivery within 24 Hours