Wednesday, June 1, 2011

Prestige Luggage

Prestige luggage

· No of stocking outlets = No of retail outlets (More retail outlets = More stoppage of products at an outlet)

· Inventory per store = Non moving stock is biggest destroyer of value

· Stores per Point of AVC % = Implies penetration has increased

· Price Premium = Total price of the company Vs average price offered by all competitors

· ACV = All commodity value = where market is getting business from

· % sales on deal = Sales obtained by giving discounts (additional discounts)

· GMROII – Gross margin as return on inventory investment – Faster the stock turnover, greater is GMROII

· CLV – Customer lifetime value – Present value of profit I will earn from the customer in his whole life

· Customer Asset Value (CAV) = No. of customer * CLV (Greater the value of brands, higher is CAV)

· Top of Mind – 1st mentioned

· Churn Rate – Higher value indicates more customers leaving

· ROMI – Return on market investment

· Importance of marketing matrix

o Marketing – Lead indicator, proactive – Less acquisition cost

o Finance – Lag indicator, reactive

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