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Offer option and promotion theme option

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Reference no: EM133212339

Nespresso is having a promotion and is considering which offer to launch. Profit margin on a coffee machine is 25%. Profit margin on coffee is 100%.

Offer Option1: Purchase a Nespresso coffee machine at full price of $250 and receive $250 value of coffee for free.

Offer Option 2: Purchase $250 of Nespresso coffee and receive a Nespresso coffee machine valued at $250 for free.

The promotion will run in Canada, USA, Brazil, Argentina, England, Germany, France, Italy, Australia from July 1 to August 1, 2023.

Nespresso must decide on a promotion theme that will run in all of the above markets at the same time (July 1 to August 1, 2023).

Promotion Theme Option 1: Summer Coffee Extravaganza

Promotion Theme Option 2: Coffee Galore

Provide a recommendation to Nespresso on Offer Option and Promotion Theme Option. Provide rationale/support for your recommendation.

Reference no: EM133212339

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