Calculate the clv for customers in each segment

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Absolut launched three vodkas to the market: Level, Absolut, and Fris. They expected to sell the vodkas in the ratio 3:5:12 respectively. The prices of the bottles will be $34, $19, and $7, and have variable costs of $10, $8, and $4, respectively. They plan to spend $20M in R&D, $10M in equipment and $175M in advertising to acquire 10 million new customers.

Problem a. Assume the replacement cycle for wiper blades is roughly a year, and the probability that these customers repurchase from Bosch the following year is 82%, 76%, 79% respectively, and the discount rate is 6% annually. Calculate the CLV for customers in each segment.

Reference no: EM132993314

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