Marketing I - Quarter 3 Project INSTRUCTIONS: Students will work individually or in small group of 2 people to complete this project. This project requires students to apply their knowledge in the content areas of: Advertising Campaigns, Visual Merchandising, Product Life Cycle, Distribution, and Pricing. PROJECT OVERVIEW: The Falcons’ Nest, the school based enterprise “school store” at Briar Woods High School, wants to change their product mix to better meet the wants and needs of their target market. The current product mix includes apparel, a few accessories, and one or two stadium gear items, and some miscellaneous items. Product items within each product line (category) are as follows: 1. Apparel: Includes the following products: Hooded Sweatshirts, Companion Tee-Shirts; and Sweatpants (elastic leg with pockets). The classic gear items are consistent items that are hot sellers in late August through early December. The primary target market for these items are: BWHS students grades 9-11, parents, and middle school students who will feed in to Briar Woods. These items are the “bread and butter” income earners for The Falcons’ Nest. While the Falcons’ Nest does not want to eliminate any of these items, the management team would like to consider modifying some of these products or extending the product line –or create/add “new classics”. This product line is always collegiate in its appearance- often based on the types of “classic” items offered and mirrors the basic/classic items offered in college bookstores such as UVA; JMU, etc. 2. Accessories: Includes the following products: Men’s Neck Ties; Men’s Bow Ties; Socks; Spirit Beads; Hats; and during the winter months knit hats and scarves. These items do not turn-over very quickly however they are products that the store likes to have on-hand when customers request them. In an effort to sell these items The Falcons’ Nest has priced them just a few dollars above our cost- which results in less than a 10% markup. Marking the items down to sell them is not an ideal strategy as it would cause a financial loss. However, just having the items sitting in the store does not create a profit either. The Falcons’ Nest believes that the Accessories line could be a successful product line when the right products are included which have a broad appeal to the high school market. 3. Stadium Gear and Miscellaneous Items: Includes the following products: Blankets, PomPoms, Camelbak bottles & Coffee Mugs. The stadium blankets sell well in the fall: often various sports teams such as Cheer, Swim, Cross Country, and a variety clubs such as FBLA purchase blankets as gifts for their seniors. The Falcons’ Nest discounts these bulk purchases. o The average markup on blankets is 50%. o The water bottles sold well, however a very low markup was applied to these items. They sell for $12. This yields approximately a 20% markup. 1 Marketing I - Quarter 3 Project WHAT THE STUDENTS WILL DO: The student consultant groups will: 1) Review the information above and gather any other information they may need from the Marketing teacher, through Internet searches and comparisons of college bookstores, and through observation of the set up and merchandise displayed in The Falcons’ Nest. 2) For EACH product line or category discussed above (i.e. apparel, accessories, and stadium gear) the marketing consultants must make the following decisions (use Product Life Cycle notes): 1. Should any new products be added or introduced? Explain your reasoning in detail applying terms and content learned through Quarter 3 when possible. a. For example ACCESSORY CATEGORY: Cell phone cases should be added to this category. It would help the students show their school pride and keep their phones safe. It would also look fun in math class when the students put their phones in the classroom phone holder – GO FALCONS! 2. Should any products be changed or modified? Explain your reasoning in detail applying terms and content learned through Quarter 3 when possible. a. For example STADIUM GEAR CATEGORY: I think the coffee mugs should be modified to include coffee tumblers. Not everyone uses a traditional ceramic coffee mug and having coffee tumblers would attract a younger market to this category and product. 3. Should any products be eliminated or deleted? Explain your reasoning in detail applying terms and content learned through Quarter 3 when possible. a. For example APPAREL CATEGORY: Classic FALCON t-shirts are available in Navy, Orange, and Gray. I would suggest deleting the gray because it does not sell as well as the other colors b/c it is not used on Spirit Days or class color competitions. 4. Identify the PRICE for the items that are modified or added to a product line (you completed this in section 2 – part B & C). (use Pricing notes) a. You must identify the cost to the store (see the provided cost sheet) and then identify the pricing strategy and determine the retail price that will be charged. b. Remember to identify any distribution costs (shipping or storing) that can impact the price OR the time frame in which the product would arrive to the store. (use Distribution notes) 5. Determine how visual merchandising will be used to help sell the item in the store? Where will it be displayed? What merchandising techniques will you use? 3) Summarize all of these ideas in a PPT presentation that will be turned in via email. 4) All work on this project must be completed during this class block & emailed to your teacher at hvandyke@lcps.org 2 Marketing I - Quarter 3 Project Marketing I Quarter 3 Project Price List (All costs include shipping) Item Cost Current Retail Price Apparel- Classic Line Hooded Pullover Sweatshirt- Screen Print 2 Colors Front $16.00 $35.00 Hooded Full Zip Sweatshirt- Embroidered Logo Left Chest $22.00 $35.00 Pullover Crewneck Sweatshirt- Champion Brand- Screen Print 2 Colors $19.00 $25.00 Short Sleeved Tee Shirts- Screen Print 2 Colors $5.95 $10.00 Long Sleeved Tee Shirts- Screen Print 2 Colors $9.95 $15.00 Unisex Sweatpants – pockets- elastic leg 2 Color screen print down left leg $14.95 $25.00 ¼ Zip Champion Brand Pullover Sweatshirt- Embroidered left chest logo $24.95 $35.00 Neck Tie Bow Tie $16.00 $14.00 $20.00 $18.00 Socks $7.95/pair $12.00/pair Spirit Beads .15 .25 Knit hats $6.95 $10.00 Knit Scarves $7.95 $12.00 Blankets $17.95 $25.00 Pom Poms $1.00 $2.00 Water Bottles 10.00 $12.00 Coffee Mugs $3.50 $5.00 Accessories 3