Finance Maru Case Study
In my opinion, I think the “Little Leaguers” is the most attractive customer segment for MBA to target.
First of all, due to the reason that most of the children in Japan tend to play softball and baseball, Little Leaguers has a high retention rate of 75%. This is really high compare to other customer segments. 10% of their customers come regular customers. And their core segment is really large as well. All of these above reflected the large amount of customers that Mar can gain. Second, though this segment needs two workers and one instructor, their parents are still willing to pay extra more to let their children experience and learn from the batting center, which results a *500 in their hourly margin.
Comparing to other segments, Little Leaguers might have the lowest hourly margin, however, every customer purchased ten hours (second high among all segments) in average per year, which lead them to for their annual margin. Third, the acquisition of customers with the cost of isn’t too large to cover up with the profit in following years. The middle school teams that Mar sponsored will receive clothes with MBA logo and phone number on the arms. And the MBA advertisement will also be shown on the league rulebooks. This is a great placement marketing that can efficiently increase their reach and end up with a really great response rate.
Sponsoring middle school teams can also help Mar target other family members by leaving good and professional brand image.
Last but not least, as you can see, the figures in the excel chart shown that after 23 ears, the Little Leaguers’ NP of Cumulative Profit to Date is the highest among all the other segments. Which means that Mar earn most from this customer segment. 4. Should MBA pursue the Cathode ward sponsorship or stick with Minot? Explain your reasoning. I think MAC should pursue the Cathode ward sponsorship.
As you can see in the excel chart, the Cicada’s Cumulative profits per customer (net of acquisition costs) is ,423. 88 compare to Minutia’s *5,711. 94. Cicada’s profit is four times bigger than Minutia’s! If MBA wants to earn more, instead of sticking with Minot, they should definitely pursue the Cathode ward sponsorship.