Candy Corner Project Manager: Sukrit Rajpal Financial Analysist: Stephen Nestor Promotional Strategist: Sujaay Jaganathan Business Proposal

What’s the Issue? Prices at the servery rising Students wanting lower prices Students want better quality Frozen products served at servery

Our Solution Open a new counter Sell fresh baked goods with better quality Sell candy, large and small Keep prices low

Where’s the Market North Park Secondary School 1385 students Commons Area Service between lunch breaks

Supply and Demand: Small Candy Packs

Supply and Demand: Large Chocolate Bars

Supply and Demand: Cookies and Muffins

Estimated Consumer Demand Projected Demand per Day o Small Treats – 30 units o Large Chocolate Bar – 5 units o Baked Goods Cookies – 6 units Muffins – 2 units

Price – Supply and Demand Based Price $0.30 for small packs of candy $ 1.25 for large chocolate bars A range between $ $1.50 for baked goods – Recommended Price $0.25 for small packs of candy $ 1.25 for large chocolate bars A range between $ $1.25 for baked goods

Price Comparison ItemCandy CornerServeryVending Machine Small Pack of Candy$0.25N/A Large Chocolate Bars $1.25N/A$1.50 Baked Goods Cookies Muffins $0.50 $1.25 $1.00 $1.25 N/A

Average Cost of Goods Product NeededPriceVendorQuantity 95 Skittles and Starburst Pack $9.95Wal-Mart1 Cadbury Fun Treats$10.97Zellers1 Farmer’s Market Fresh Cookies $5.99No Frills1 (30 per container) Farmer’s Market Fresh Muffins $4.99No Frills1 (6) Chocolate Bars$2.99No Frills1 (4 per pack

Expected Monthly Sales Item Expected Units of Sale Per Month Expected Selling Price per Unit Expected Monthly Sales Small Candy30 X 20 = 600$0.25$150 Large Chocolate Bars5 X 20 = 100$1.25$125 Baked Goods: Cookies Muffins 6 X 20 = X 20 = 40 $0.50 $1.25 $60 $50 Total Monthly Sales860$385

Expected Monthly Cost of Sales and Operating Cost Item Expected Units of Sale Per Month Expected Cost per Unit Expected Monthly Cost Small Candy30 X 20 = 600$0.10$60.00 Large Chocolate Bars5 X 20 = 100$0.75$75.00 Baked Goods: Cookies Muffins 6 X 20 = X 20 = 40 $0.20 $0.83 $24.00 $33.20 Total Monthly Cost860$ Total Monthly Operating Cost – 25% of Monthly Cost $48.05

Projected Monthly Profitability Sales$385 Less: Cost of Sales$ Gross Margin$ Less: Operating Cost$48.05 Net Margin$144.75

Our Plan Buy weekly Buy minimal baked goods Buy fresh and quality products Sell as quickly as possible Create product differentiation

Our Competition Servery Vending machines Vendors in neighbourhood

Projected Life Cycle

Product Life Cycle: Maintaining Business Introduce new goods Periodically sell specials Systematic and periodic surveys Reassess situation continuously

Recommendations: Product Small candy packs, large chocolate bars, cookies and muffins Emphasize quality and freshness Hygienic condition

Recommendations: Place Commons Corner Store in North Park Secondary School Much of target in Commons Area In a crowd between: – Period 3: 11:08am – 12:26 pm – Period 4: 12:26pm – 1:41 pm

Recommendations: Price Meets target consumer preference Lower than competitor prices Attract customers Enforce other tactics and goals

Recommendations: Promotion Small target No need for large scale promotion Promotional Strategies: – Announcements – Posters – Newsletter

Potential Challenges Garbage Changing Customer Demand Price Drop Competitor Trained Professionals in Servery

Some Solutions Placards Periodic surveys Create product differentiation Hire friendly, welcoming employee Special goods sold occasionally

Conclusion Meets consumer preferences No or little competition Profitable Easy to manage Minimal overheads No wastage Easy to change products