The document analyzes three scenarios for commission earned on timeshare sales by Creatican Resort between May 1-31. Scenario 1 increases the markup by 2% to 17% and the commission rate to 8%, resulting in lower timeshares sold but higher total sales revenue and commission earned than the baseline. Scenarios 2 and 3 further increase the markup to 18% and 19% respectively, resulting in fewer timeshares sold and lower total revenue and commission earned compared to Scenario 1. Therefore, Scenario 1 is recommended as it maximizes sales and commission with the smallest markup increase.

1. Computer Application for database marketing

2. DISCUSSI
ON
• The following analysis emphasizes on the
Creatican Resort Timeshare Commission
Report.
• The data available in the report include
Timeshare sold, Base price, Percentage Mark-
Up, Total Price, Total Amount Sold,
Commission Rate and Commission Earned.
• The Analysis encompasses the commission
earned between May 1st – 31st.
• The deck also highlights the commission
earned across the 3 given scenarios, namely
Markup 17, Markup 18 and Markup19.
• The base price across the given 3 scenarios for
the commodity remained constant.

3. • It was observed that the Creatican Resort sold
Timeshares at different Markups on its base
price.
• As we see, with the rise in the Markup, there is
a drop in the Timeshare sold. With each
scenario, as the % Mark up rises, the number of
Timeshare sold is less.
• While there is an increase of 1% in the mark up
in the remaining two scenarios, the commission
rate remains the same at 8%.
• In regards to increase in commission rate from
the base year, scenario 1 witness 90.76%
increase in change, whereas in scenario 2 it was
83.22% and 73.40% increase in scenario 3,
when compared to the original data available.
• Thus, this gives creatican resort a good insight
about the effectiveness of each scenario and a
reason why they should go ahead with on of the
scenarios given for their timeshare
Fig. 1.1 Scenario Overview
Base Scenario1 Scenario 2 Scenario 3
Timeshares Sold 112 105 100 94
Base Price 1255 1255 1255 1255
Percentage Mark-up 15% 17% 18% 19%
Total Price 1,443$ 1,468$ 1,481$ 1,493$
Total Amount Sold 161,644$ 154,177$ 148,090$ 140,384$
Commission Rate 4% 8% 8% 8%
Commission Earned 6,466$ 12,334$ 11,847$ 11,231$
Increase % In
Commission Earned 90.76% 83.23% 73.70%
Fig. 1.2 Increase In % Commission Earned
Fig. 1.3 Scenario Summary

4. • The 3 scenarios would help guide creatican resort in
planning their approach for the coming season.
• In case of Scenario 1, an aggressive approach with
regards to increase of 2% in the mark up would leads to
a drop in the Timeshare sold, but at the same time there
is an increase of commission earned due to an increase
in commission rate.
• The next option would definitely be Scenario 2 where the
commission earned and the total sales deliver good
numbers.
• Thus, the 3 scenarios presents a trial and error
opportunity for the forecaster to see and understand the
most preferable situation to choose from.
• In context to all the scenarios given, the best scenario
that should be considered is Scenario 1.
• Scenario 1 highlights the commission earned on the
basis of the increase in the % markup charged per
timeshare sold. Even though there is a drop in the total
time share sold from the base year, the increase in the
commission rate charged leads to higher commission
earned ($12,334 ).
Fig. 1.4 Illustration of the 3 scenarios
Row Labels Total_Unit_Price Total_Amount_Sold Commission_Earned
Markup 17 1468.35 154176.75 12334.14
Markup 18 1480.9 148090 11847.2
Markup 19 1493.45 140384.3 11230.744
Fig. 1.5 Illustration of the 3 scenarios

5. Scenario1
Timeshares Sold 105
Base Price 1255
Percentage Mark-up 17%
Total Price 1,468$
Total Amount Sold 154,177$
Commission Rate 8%
Commission Earned 12,334$
• The 3 scenarios given, have no base to justify it
• The rate at which the percentage mark up increase in Scenario 1 is
higher than the following ones.
• This change cannot be attributed to any cause or strong reasoning.
• Even the jump in the commission rate from the base year (4%) to rate
mentioned in the 1st Scenario (8%) has no reasoning to back it. Hence,
the comparison becomes null and void when it comes to understanding
them thoroughly.
• The timeshare sold has no description given to it, except the figures.
• Even though one can assume the relationship between two variable, it
is actually difficult to link an increase in one variable to another
variable.
• Other information such as location or the details about the properties
are lacking. Therefore, it is less effective to figure out which scenario
will suit the timeshare hold by Creatican Resorts.
Fig. 1.6 Scenario 1

6. • Going forward, the Scenario 1 is the one to be adapted, based upon the numbers given.
• Of the 3 given scenarios, Scenario 1 helps in maximizing the total sales, as well as the
total commission earned, with the lowest possible increase in mark up percentage of the 3
scenario.