Case Study

Customer lifetime valuation: Sotarg inkjet printers – a brief exercise

2 pages
July 2014
Reference: IMD-5-0786

Julien Levy, the case protagonist, is product manager at SOTARG France in charge of printers and related accessories. SOTARG is an international manufacturer of printers, print-related products and other electronic devices. He has been approached by a direct marketing firm offering its services in developing and implementing a sales promotion campaign to help boost SOTARG’s end-of-year sales. The suggestion is to launch an in-store promotional campaign in 10 hypermarkets at a certain price per day per booth. Julien is interested, but has to evaluate how many new customers the campaign must generate in order to break even on the cost of the promotion or even be financially more interesting.

Learning Objective

Understand the key role of customer equity and customer lifetime value in relationship marketing. Calculate total customer lifetime value as a basis for decision making in marketing.

Customer Lifetime Values, Sales Promotion, Campaign, Evaluation, Customer Equity
Europe, France
Media, Printing and Publishing
Generalized Experience
© 2014
Available Languages
Related material
Teaching note
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