Quantative business techniques KDG summary

2025




Quantative business
techniques summary
THEORY

,Table of Contents
TERM ONE ................................................................................................................2
1. Cost Calculations and Margins ................................................................................ 2
Margin formulas: .............................................................................................................................. 3
Margin chain .................................................................................................................................... 4
CIF QUOTATIONS ............................................................................................................................. 5
CIF Price Calculation Formula .......................................................................................................... 6
Example CIF Price Calculation .......................................................................................................... 6
Summary of CIF Responsibilities ....................................................................................................... 7
2. Segmentation......................................................................................................... 8
Overview segmentation methods: ..................................................................................................... 8
Category development index............................................................................................................. 8
Brand Development Index ................................................................................................................. 8
Brand Opportunity Index ................................................................................................................... 9
Segmentation using consumer panels ............................................................................................. 12
3. Digital metrics.......................................................................................................17
4. Email marketing: ...................................................................................................19
TERM TWO ............................................................................................................. 21
7. Statistics and regressions ......................................................................................21
Sales forecast based on trendlines .................................................................................................. 21
Seasonality: Moving averages and exponential smoothing ................................................................ 24
Exponential smoothing ................................................................................................................... 33
Causal models – Regression analysis .............................................................................................. 39
Overview forecasting methods: ....................................................................................................... 42
Break Even Theory ........................................................................................................43
8. Market research ........................................................................................................53
9. The solver .................................................................................................................54


Hi there!

In this summary we will cover the theory and formulas with some extra information based on
where I was struggling. It is important to remember to remake the exercises and understand the
cases that are provided to pass for the exam.




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,TERM ONE
1. Cost Calculations and Margins
This chapter focuses on cost calculations, particularly margins, markups, markdowns, and
pricing strategies. It explains how businesses determine selling prices based on cost and desired
profit margins.
Key Concepts
1. Cost-Plus Pricing (Markup Method)
o Selling Price = Cost Price + (Markup % × Cost Price)
o This method calculates the selling price by adding a markup percentage to the
cost price.
2. Margin Calculation on Selling Price
o Margin (€) = Selling Price - Cost Price
o Margin (%) = (Margin € / Selling Price) × 100
o This method expresses the profit as a percentage of the selling price rather than
the cost price.
3. Markup vs Margin
o Markup is calculated on the cost price (e.g., a 50% markup on €10 means a
selling price of €15).
o Margin is calculated on the selling price (e.g., a €5 profit on a €15 sale results in
a 33.3% margin).
o A common misunderstanding occurs when businesses confuse these two
percentages.
4. Markdowns (Discounting Strategy)
o A markdown is a reduction in selling price, typically expressed as a percentage.
o Unlike markups, markdowns are calculated on the selling price.
o Example: If a T-shirt is marked up 50% (from €10 to €15) and then marked down
50%, the final price becomes €7.50, leading to a loss.
5. Margin Chains in the Supply Chain
o Several intermediaries (wholesalers, distributors, retailers) add their margins.
o The selling price at one stage becomes the cost price for the next party.
6. Mathematical Formulas
o Selling Price = Cost Price × (1 + Markup %)
o Cost Price = Selling Price / (1 + Markup %)
o Cost Price = Selling Price × (1 - Margin %)
o Markup % = (Selling Price - Cost Price) / Cost Price
o Margin % = (Selling Price - Cost Price) / Selling Price
The chapter also includes exercises on retail pricing, commission calculations, impact of
discounts, and multi-step margin chains.




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, Margin formulas:




Overview:




Selling price with margin




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