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Background X.com marketing director has consulted with a few agencies and discussed potential impact of building a few landing pages to maximize engagement, registrations and net sales on the retail website. You were hired as a consultant to help the director make a decision.The marketing manager decided to test 4 landing pages: A ? ?On Sale? products without an offer B ? ?On Sale? products with a strong offer: 30% off C ? Hot New Merchandise: New Arrivals with an offer 20% off D ? Hot New Merchandise: New Arrivals without an offer E (Control) ? Current frontpageAssumptions: 1) All landing pages include registration bottom 2) All landing pages have a similar creative design 3) Average order revenue = $125 4) Landing page subsequent click rate off the current frontpage = 1.4%, and in external media we don?t mention any promotions or discounts. 5) COGS = 30% of Gross Revenue 6) Production cost of 1 landing page = $3000 Definitions: – Engagement is defined as number of pages per visit. – Registrations are defined as number of visitors who registered but not purchased. – Net Sales is total revenue minus ( COGS, total offer costs and promotion costs).Test Strategy, design and implementation Please layout a test plans with all relevant: – Marketing objectives – The profit drivers – Detailed test design: what do we test, how do we test? – Test administration and implementation – Organizational coordination and collaboration – Data collection – Proforma P&L – Measurement methodology , statistical testing (show at least 4 tests) – Key findings and recommendationsQuestions/Deliverables: Write a test design including the following sections: – Marketing objectives – The profit drivers: Clearly define what are the KPIs – Detailed test design: what do we test, how do we test? o Hypotheses testing: write at least 4 H0/H1 pairs – Test administration and implementation: o Determine at 95% confidence internal o What are the minimum samples sizes needed per cell? o Please provide start and end dates for the testing – Organizational coordination and collaboration o Who does what? o What are the steps from planning to execution? o Time frames– Data collection o What data do we collect? o Who collect the data o When does it delivered for analysis– Proforma P&L o Please develop a Proforma P&L to assess the viability and test priorities– Primary and Secondary KPIs

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