Team 8.4 Megan Romanowski Ryan Anderson Steven Owens Chris Angell Lauren Peters Bull’s Eye Marketers

Product Concept Here, Everyone has a Blast! Description: H-E-B Blast is an interactive and supervised children’s play area that provides fun and care for children while parents shop efficiently Key Features: Supervised care Multi-dimensional activity zone Safe, plexi-glass enclosed area located in the upper right hand region built in either an existing or new store Security assurance system Benefits: Free service Easy, less stress, and more efficient shopping experience Enjoyable for both parents and kids

The H-E-Big Idea A great idea providing:  Increased profits  Friendly, neighborhood atmosphere  First of its kind to appear in a grocery store  Stress free shopping  Customer Loyalty  Time management  Markets to most segments of adults  Shopping made fun, easier  Larger store The Risks and obstacles…  The cost of the implementation  Leaving children under other’s supervision  Overcrowding of play area  Design process of adding the play area  Benefits not outweighing the costs

H-E-B SWOT S Focus is on customer relationships and creating customer value, knows Texans especially; offers competitive prices W Not operating on a national/international level; doesn’t have the wholesale and bulk goods’ prices O Home cooking is more economical than eating out; start-up costs are low now with cheaper real estate and interest rates; expansion is ideal T Recession forces lower prices leading to lower margins; cheapest price holds the most draw for customers Project SWOT Advantage  Building emotional relationships to hold onto current customers  Providing target market a catered, beneficial service  Taking advantage of inexpensive capital costs

Competitive Analysis Research on Competition: Currently the H-E-Blast concept stands alone against its top competitors (Wal-mart, Target, etc.) Wal-mart and Target use other methods such as in-store restaurants and video game stations to draw in families with children Successful Play Area Implementation: IKEA McDonald’s Chick-fil-a Gold’s Gym

Target Market Basis for Segmentation: Demographic and Psychographic Family Life Cycle Segmentation and Motives, Personality, and Lifestyles Profile of the Target Customer : Mothers (married or unmarried) Several children Stay at home mom or Sole provider Looking for experiences Size of the Market: 1,863,600 H-E-B Male & Female Customers (ages 18-65) in Texas with children PER WEEK

Competitive Analysis Sole Customer Entertainment Chore Family H-E-B Wal-mart Target Albertsons Perceptual Map

Shopping is now FUN! Advertising & Promotion Shopping is now Peaceful!

Promotion Plan JanFebMarAprMayJunJulAugSepOctNovDec Launch  TV xxxxxx Radio xxxxxxx Internet XXXXXXXXXXX X Posters XXXXXXXXXXXX

H-E-B Blast

Estimated Start up Costs Cost of H-E-B building$6,750,000 Cost of H-E-B Blast$211,800 Cost of second story structure$118,000 Interior designs cost$1,300 Elevator cost$50,000 Indoor playground$25,000 Electronics$10,000 Security system$5,000 Miscellaneous activity expenditures$2,500 Total:$6,961,800* *these figures are estimated at a maximum value

Marketing Budget & Break Even Analysis Advertising CampaignsPricing Radio Advertisements (2)$50,000 TV Commercial$110,000 Print Advertisements (mail outs, coupons, etc) $10,000 In store posters$5,000 Internet Advertising (side ads)$1,000 Total$176,000 Break-Even Quantity (Total fixed costs/fixed costs contribution) New/ Retained Customer Visits:Sales $: 23,386$1,169,292

The Deal Maker Projections per store Customer increase from project5%1% Increase in weekly customers Increase in weekly sales$75,000$15,000 Increase in annual sales$3.9 M$780,000 Payback Period for Project110 days1.5 years