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.

Keywords
Customer Lifetime Values, Sales Promotion, Campaign, Evaluation, Customer Equity
Settings
Europe, France
Media, Printing and Publishing
Type
Generalized Experience
Copyright
© 2014
Available Languages
English
Related material
Teaching note
Case clearing houses
IMD case studies are distributed through case clearing houses. In order to browse the collection and purchase copies please visit the links below.

The Case Centre

Cranfield University

Wharley End Beds MK43 0JR, UK
Tel +44 (0)1234 750903
Email [email protected]

Harvard Business School Publishing

60 Harvard Way, Boston MA 02163, USA
Tel (800) 545-7685 Tel (617)-783-7600
Fax (617) 783-7666
Email [email protected]

Asia Pacific Case Center

NUCB Business School

1-3-1 Nishiki Naka
Nagoya Aichi, Japan 460-0003
Tel +81 52 20 38 111
Email [email protected]

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Looking for something specific?
IMD's faculty and research teams publish articles, case studies, books and reports on a wide range of topics