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A case study about Pepsico: Capital expenditure
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LVICGross profit of an average purchase (i (if per day need to multiply by number of days)
0.68585
Average number of purchases per year by customer
1.7
Average number of years customer will continue to purchase
10
Probability customer will continue to purchase LVIC
0.7 9.32756
Word of Mouth EffectTotal number of customers that can spread the word Percent of satisfied customers Number of recommendations per customer
5 29 41 2 100% 3
Percent of referrals that are empathetic (i.e., have the ability to act on what they hear)
67%
Probability of those who are empathetic who will buy the service
0.14
LVIC WOME
3.2814 488851.4
LVICGross profit of an average purchase (if per day need to multiply by number of days) Average number of purchases per year by customer Average number of years customer will continue to purchase Probability customer will continue to purchase LVIC
0.59125 2.05 15 0.7 13.93872
Word of Mouth EffectTotal number of customers that can spread the word Percent of satisfied customers Number of recommendations per customer
390,244 100% 3
Percent of referrals that are empathetic (i.e., have the ability to act on what they hear)
67%
Probability of those who are empathetic who will buy the service
0.14
LVIC WOME
3.2814 360345.7
LVICGross profit of an average purchase (if per day need to multiply by number of days) Average number of purchases per year by customer Average number of years customer will continue to purchase Probability customer will continue to purchase LVIC
6 1.84 15 0.33 65.688
Word of Mouth EffectTotal number of customers that can spread the word Percent of satisfied customers Number of recommendations per customer
64605 100% 3
Percent of referrals that are empathetic (i.e., have the ability to act on what they hear)
67%
Probability of those who are empathetic who will buy the service
0.14
LVIC WOME
3.2814 59655.35
LVICGross profit of an average purchase (if per day need to multiply by number of days)
17.5
Average number of purchases per year by customer
2.5
Average number of years customer will continue to purchase
15
Probability customer will continue to purchase LVIC
0.5 371.875
Word of Mouth EffectTotal number of customers that can spread the word Percent of satisfied customers Number of recommendations per customer
760000 100% 3
Percent of referrals that are empathetic (i.e., have the ability to act on what they hear)
33%
Probability of those who are empathetic who will buy the service
