1. Research and Recommendations for MAD Hats
Deloitte Consulting Group
Connor Andrus, C. Chambers Giblin, Jonathan Helm, John Moore, and Virgil Nunan

2. Executive Summary Strategic Marketing Actions
Potential Website Initiatives
Overall Plan for the Future

3. Line Extension Recommendation
Market pompom beanies to women, snapbacks to men
These extensions are profitable
Data Analysis
Pompom Beanie:
Women > Men
Snapback:
Men > Women
CVP Analysis
Worst case:
$5,500
Most likely:
$148,000
Best case:
$240,500

4. Distribution Channels
Recommendation
Market pompom beanies to women through specialty retail stores, snapbacks to men through the website
Promote or drop: mobile app
Data Analysis
Specialty retail:
Women > Men
Website:
Men > Women
Mobile app:
Least likely place
CVP Analysis
Worst case:
$3,500
Most likely:
$6,000
Best case:
$8,500

5. Perceived Liking Heat Map

6. Segment Saturation

7. Recommended Marketing Actions
Promote the pompom beanie to women at specialty retail stores
Promote the snapback to men on your website
Promote a variety of styles to athletes, hipsters, and hippies, expand into empty nesters
Promote less popular hats to niche segments
Mobile app: improve or phase out

8. Recommended Website Initiatives
Increase website speed
Start campaign
Do not offer free shipping
Offer targeted coupons

9. Targeted Coupons Biggest reason for cart abandonment
Track customer data
Parameters to award coupons
Additional uses of big data mining

10. Incremental Revenues, Costs, and Returns for Each Initiative, First Year

11. Internal rate of return, with free shipping
-11.82% %
Internal rate of return, with free shipping
Internal rate of return, no free shipping
$(2,938,268)
Net present value with free shipping
$3,579,576
Net present value without free shipping

12. Overall Strategy Moving Forward
Shipping
Do not offer free shipping as it is very costly in comparison to your other initiatives.
Campaign
This has the least impactful incremental revenue, but the least expensive.
Targeted Coupons
Improve website conversion rate steadily to increase sales.
Line Extensions
Extend your line to keep up with current fashion trends.
Niche Markets
Market less popular hats to specific niche markets as identified through survey data.
Get2Give
Continue to promote your social mission as it is an incentive for customers to buy your hats.

13. Thanks!
Any questions?