Market Day Bid Sample
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Transcript of Market Day Bid Sample
MARKET DAY BID
Smoothie Queens
Kelly
Jennifer
Erin
Erica
[10.01.09]
Logo or pic related to business
MARKET DAY BUSINESS ANALYSIS
Mission:[What is your mission statement?]
Goals:[What do you plan to accomplish?]
Objectives:[How do you plan to accomplish your
goals?]
MARKET DAYTEAM SWOT ANALYSIS
• STRENGTHSLove smoothies
Very outgoing
Involved in numerous school activities
• WEAKNESSESNever made smoothies before
• OPPORTUNITIESNotice more students are starting to try smoothies because they are busy with activities
• THREATSDon’t know how many students are willing to pay our amount for a new brand of smoothie
MARKET DAYBUSINESS SWOT ANALYSIS
• STRENGTHSHealth benefits from fruit intakeCheap to produceNo Smoothie shop near our school
• WEAKNESSESStudents may not be familiar with smoothiesNot a brand name
• OPPORTUNITIESIntroduce many students to smoothiesDisplay a healthy alternative to soft drinks and junk food
• THREATSOff campus lunch options for upperclassmenCost
MARKET DAYORGANIZATION CHART
Identify the roles each group member will be responsible for executing. Some duties may overlap.
FINANCE
PURCHASING
MARKETING
COORDINATOR
Smoothie Queens
•Change for cash register
•Receipts
•Reconcile financial statements
•Place flyers in teachers mailboxes day before market day
•Produce smoothies on market day
•Handle all sale transactions at market day
•Determine prices
•List of what to buy and where to buy
•Ensure all purchases are made
•Hand out flyers near exits to bus locations day before market day
•Produce smoothies on market day
•Ensure all purchases are made
•Make sure money is handled correctly (checks and balances)
•Ensure promotions are created and fulfilled
•Place flyers on vehicles near the end of the day before market day
•Produce smoothies on market day
•Posters
•Flyers
•Logo
•Places posters near entrances/exits a couple of days prior to market day
•Place flyers on vehicles near end of the day before market day
•Produce smoothies on market day
MARKET DAY TYPICAL CONSUMER
PROFILE
Ashley16Female$30 /week of of disposable incomeWhite
Go to the movies, shop, and hang out with friends in freetimeListens to music you would hear on top music chartsWears latest fashion of clothes Ashley has slide phone that opens to keyboard for texting.
MARKET DAYRESEARCH
Visited local smoothie shop to see typical age of customers and amount willing to pay for a smoothie our size
Created a survey for students to complete during their lunch periods
Reviewed articles on www.researchand markets.com discussing US smoothie market
Watched special on Money and Market about the rise of smoothies among high school students
PRIMARY SECONDARY
MARKET DAY MARKETING
• Price: $1.46 + .36 + $2.18 = $4.00
– [Explanation of your price]• Place:
– We will set up near the North lunch line entrance due to heavier traffic during the lunch periods so they can have the option to purchase a fulfilling smoothie over the lunch option for this day.
• Product: – Our product, a smoothie provides a healthier alternative
that will fill you up in the process• Promotion:
– We will post signs near the entrances/exits in our school days prior to market day. We will place small flyers on cars the day before market day. Also we will seek to have an announcement read over the intercom system near the end of the school day prior to market day.
MARKET DAY ASSUMPTIONS
3. There are 4 of lunch periods that we will have to sell.
4. We can produce 30 in a lunch period.
6. The total sales/revenue projections are 45 units/$180.00.
1. Based on our primary research, there is a high demand for our smoothies because students are looking to eat healthier and are conscious about their looks and they prefer something that is healthy, tasty, and cheaper than local fast food locations off campus.
2. Our group will efficiently meet demand by just having our treasurer handle sale transactions and the other three members of our team producing the smoothies.
5. In order for our business to break-even, we need to sell 25 units.
MARKET DAYCOGS PER UNIT
Direct Labor
Definition of One Unit
1 smoothie
Cost of Goods Sold (COGS) per Unit
Direct Labor (A)(Labor Cost per Hour) (Minimum Wage is $7.25)
Time (in hours) to make 1 unit (B)
Direct Labor Cost Per Unit (A)*(B)
$7.25 3 minutes $7.25 * (3/60)
Total Direct Labor Per Unit $0.36
Definition of One Unit
1 smoothie
Cost of Goods Sold (COGS) per Unit
Total Direct Labor Per Unit $0.36
Material Description Cost/Total Quantity Cost Per Unit ($)
Strawberry 4 oz $0.50
Milk 8 oz $0.32
Ice 8 oz $0.10
Yogurt 6 oz $0.44
Cup 1 $0.07
Napkin 1 $0.02
Straw 1 $0.01
Total Material Cost Per Unit $1.46
COGS per Unit (labor +material) $1.82
MARKET DAYCOGS PER UNIT
Materials Costs
MARKET DAYECONOMICS OF ONE UNIT
Definition of One Unit 1 smoothie
Selling Price per Unit $4.00 (A)
Direct Labor per Unit $0.36 (B)
Materials Costs per Unit $1.46 (C)
COGS per Unit (B+C) $1.82 (D)
Gross Profit Per Unit (A-D) $2.18
MARKET DAY OPERATING COSTS
Operating Cost Market Day Cost
School Tables / $2.50 per table $2.50
Advertising (Flyers) / $1.00 dozen $2.00
Rent (fee to occupy school space) $5.00
Business License and Inspection Fee $2.50
Outside Vendor Fee (if applicable-pizza, parents, etc.) - $5.00
$
Equipment Rental (i.e. blender, etc.) $5.00
Total Market Day Operating Costs $17.00
MARKET DAYPROJECTED NET INCOME
High Estimate
Realistic Estimate
Low Estimate
Selling price per unit $4.00 $4.00 $4.00
Number of units sold 60 45 20
Total Sales Revenue $240.00 $180.00 $80.00
Total COGS (COGS per unit * # of units sold)
$109.20 $81.90 $36.40
Gross Profit (total sales – total COGS)
$130.80 $98.10 $43.60
Total Market Day Operating Costs
$17.00 $17.00 $17.00
Profit before taxes $113.80 $81.10 $26.60
10% Taxes (Profit before taxes x 0.1 = taxes)
$11.38 $8.11 $2.66
Net profit/lossNet profit/loss $102.42 $72.99 $23.94
MARKET DAYVENTURE CAPITAL
REQUESTTotal Market Day Operating Costs
$17.00
Total COGS $81.90
Total Costs = Request for Funding
$98.90 (Realistic)
Return on InvestmentNet profit ÷ Start-up Investment X 100 =
73.8%
Return on SalesNet Profit ÷ Total Sales Revenue X 100 =
40.6%
Break-Even Units Total Costs (COGS + Op. Costs) ÷ Selling price per unit =
25
Thank you for your consideration ofSmoothie Queens
Kelly, Jennifer, Erin, andErica
For every King you must have a Queen, Smoothie
Queen that is
MARKET DAYBID