Sweets O’ Plenty 1 MARKETING PLAN By Karam Almeshagbeh , Trent Toxey, Christian Pergler and Arib Amir Sweets O’ Plenty 2 1.0 Executive Summary 1.1 Business Description What is the product/service? We are offering 3 baked goods: cookies, brownies, and fudge. The products are bought online and delivered to the customer’s location. Who will buy it? The most likely consumer to purchase our product are families with children and young adults who are keen on eating confectionary goods. Why will they buy it? Families with children and younger adults will most likely buy our products because sweets are highly desired, especially among children whose parents are not keen on making sweets for their kids. Also, younger adults would most likely buy the product because it is not as detrimental to their health as older adults, and sometimes they like to ‘cheat’ their diets. 1.2 The Industry What is the size/value of this industry? Sweets O’ Plenty 3 https://www.statista.com/outlook/40101000/100/confectionery/worldwide#market-revenue What trends are affecting this industry? From our market research, we have noted that 2 factors have led to growth in the confectionery industry. The first is population growth, which naturally increases demand for such products. The second is an average increase in emotional stress in people, leading them to resort to sweets to resolve their stress. According to statistics, stress levels in our particular population target has increased from 45% to 70% during the COVID-19 pandemic. The current COVID-19 Pandemic has amplified this stress, which is expected to help grow the industry more. https://www.sciencedaily.com/releases/2019/03/190315110908.htm Why will this venture be successful? This venture will be successful because we have analyzed our competition and have conducted considerable research to analyze what products most individuals would be willing to buy. Using this data we have determined the 3 most desirable goods, fudge, brownies, and cookies and have tailored our prices to undercut our competition both in ASD and around Qatar to ensure that our product is more desirable both cost wise and taste wise compared to our competitors. Additionally, we will be offering free delivery of our products to any compound within a reasonable range which none of our competitors offer. All of these factors will allow our company to be as successful as possible. 1.3 Management Who are the business owners? This business is co-owned by Karam, Trent, Christian and Arib What expertise do the owners possess that will enable this business to be successful? Trent has a previous knowledge in baking/ cooking, which will allow our products to be of a professional degree. Additionally, Karam and Arib both have extensive graphic design and marketing experience to enable our company to advertise effectively. Also, Christian has significant mathematics experience, which will help us balance our budget effectively and keep track of our revenue. 2.0 Market Description 2.1 Customer Profile Who is the main user? Our business will target customers in Doha, Qatar that have an avid interest in sweets. We are targeting both adults and children in our marketing process. What need is being satisfied? In Qatar, the demand for sweets is high, but many of the locals are growing increasingly tired of the current sweets offered, and have instead turned towards American sweets to satisfy their sweet tooth. Sweets O’ Plenty 4 Thus with an ever increasing desire among the local population and expat workers for a taste of American sweets our company will be able to satisfy their needs. 2.2 The Market What is the size/value of the market for this product/service? The market for confectionery snack products in Qatar is one of the largest markets in Qatar with over $659 million dollars in revenue during 2020 alone. Thus the market for opening a confectionery snack product would easily thrive in the current market place as the projected growth of this market is set to reach over $1 billion in 2025. https://www.statista.com/outlook/40101000/109/confectionery/united-states What are the buying habits of the typical user? The buying habits of the typical confectionery snack consumer is geared more towards preserved pastry goods and cakes summing to 51% of all confectionery snack sales in Qatar with chocolate products trailing at around 23% of the market. (statista) What trends are affecting this market? With an increase in the population of Qatar coupled with an increase in desire for confectionary goods because especially in more developed countries there is an increase in emotional distress causing people to resort to sweet fattening goods. Additionally, there is increased availability of sweet goods that are much cheaper than healthier alternatives. This is leading to a direct increase in revenue in the confectionary goods market. Sweets O’ Plenty 5 2.3 Competition Analysis Who are the current competitors in this market? Current competitors in the market would include businesses that advertise similar products (i.e brownies, chocolate chip cookies, and fudge). Our main competitor is Magnolia Bakery. Magnolia Bakery The Seasons Restaurant Paul Gourmet House Al Arab Bakery Caramel Sweet Arts Al Khaima Opera Bakery What are the strengths and weaknesses of your most important competitor(s)? Through our research on Magnolia Bakery’s website and store we found strengths and weaknesses of both. One of the strengths of our competitor is that, as a large company, they are able to source their ingredients cheaply, and as such have a higher profit margin than our business. They also have a very neat and organized menu that allows the customer to easily and quickly find what they want. One weakness that Magnolia has shown is that they are costly. We conducted an independent evaluation of their menu costs and cross-referenced those costs with our menu to determine the most appropriate cost for each product while maintaining a reasonable profit margin. What can be learned from this analysis to help increase the potential success from this venture? From the analysis we can see that the main attraction for Magnolia bakery appears to be the organization of the menu as well as the ability to see the product the customer is buying. Thus we will have to make the menu as organized and clear cut as possible in order to not confuse the customer and make them confused with an over complicated menu. Additionally, we will need to provide ample pictures of the product to make sure the customers will be enticed to buy the product instead of just seeing a word on a screen. Sweets O’ Plenty 6 3.0 Product/Service Development 3.1 Original Idea What was the original idea? Our original idea was much different than our final product. Our original idea was to sell fudge and cake with different options and add-ons for each. We were planning on selling our product with an in-person exchange service of money and product. We also originally planned to deliver flyers to advertise our product. 3.2 Consumer and Industry Research What did you learn from interviewing potential customers? We sent two surveys out, one to high school students and another to parents in ARV. Both surveys outlined key points for us to consider. For the survey we sent out to high school students, we learned that many of them prefer snacks like double doozies, brownies, and chocolate chip cookies. In the survey we took of parents in ARV we learned that many of them prefer double doozies, brownies, and fudge. We also found that many of the parents that put double doozies also either put fudge or brownies. With this we learned that the type of sweet(s) that would make us the most profit was not necessarily the sweet with the most amount of votes. By targeting a wide range of individuals we will be the most profitable. Sweets O’ Plenty 7 Sweets O’ Plenty 8 What did you learn from interviewing relevant business people? We interviewed Paul bakery (appendix 1), and asked them about various aspects of their business, and how to improve ours. The key thing we learned from the interview was that it is important to have an efficient online ordering system, as well as a way to effectively advertise. The interviewee suggested using platforms such as Facebook to advertise. Another important thing we learned was that being able to deliver is extremely important. Paul delivers from 10 AM to 7 PM. In addition, we learned about specific products that are popular, such as croissants, and certain products that are unpopular. Interview link https://drive.google.com/file/d/1CpYAU3X2USR4Wd9lKE-L31csvA6PkoPY/view?usp=sharing 3.3 Product/Service Improvement What improvements did you make to the product/service based on your research? In our research we learned that many people do not like plain cake and students do not like fudge however, many adults did. We also learned that having a neat menu is very important for attracting customers. After our research we decided to change our original idea from cake and fudge to chocolate chip cookies, brownies, and fudge. We also changed our menu to be more organized and aesthetically pleasing to the customer. 4.0 Product/Service Marketing 4.1 Product What is the product/service? Our products are chocolate chip cookies, brownies, and fudge. We will have 4 sizes for chocolate chip cookies, 4 sizes for brownies , and 3 sizes for fudge. We also plan to sell various bundles that include a mixture of the products above with cheaper costs. What are the product/service strengths and/or advantages? Aside from chocolate, our ingredients are relatively cheap. We have lower prices for our products than ASD as well as other businesses such as Magnolia Bakery and The Seasons Restaurant. Our goods are also in high demand, according to the surveys we conducted. 4.2 Pricing What does it cost for the consumer to buy? Chocolate Chip Cookies - 3 cookies- 10 QR - 6 cookies - 20 QR - 12 cookies -35 QR - 30 cookies - 70 QR Brownies - 1 brownie - 10 QR - 2 brownies - 15 QR - 4 brownies - 30 QR - 8 brownies - 55 QR Fudge Sweets O’ Plenty 9 - 6 pieces of fudge - 25 QR 12 pieces of fudge - 50 QR 20 pieces of fudge - 75 QR Bundle - 6 pieces of fudge, 2 brownies, 3 cookies - 40 QR - 12 pieces of fudge, 4 brownies, 6 cookies - 75 QR - 12 pieces of fudge, 8 brownies, 12 cookies - 100 QR 4.3 Distribution How is the product/service made? By whom? The products are home made utilizing various products found at grocery stores. Trent will be producing all of the products as well as buying the products. Who is selling the product/service? Why? The products will be sold through our online store, and delivered by Arib. Selling online is convenient because of the current circumstances of the corona-virus since it can be done from home without making contact with anyone. 4.4 Promotion What is the most effective way to advertise this product/service? Given the current circumstances, the most appropriate way to market our products would be to utilize an online service. We will be using instagram, a website, and electronic advertisements to showcase our business. What is your advertising plan? Instagram: Showcasing our products and communicating with other individuals - @sweetsoplenty Purchasing form https://docs.google.com/forms/d/e/1FAIpQLSeXb9oUrH9VlOF7fP793b6rwHJ_Vne_f-H09XM15X ZaRDQKgQ/viewform Electronic flyer/advertisement (JPEG Image) https://drive.google.com/file/d/1jni8ba8a_MN_mN9K7jkcPehmoLH0COCQ/view?usp=sharing Electronic flyer/advertisement (PDF Mirror) https://drive.google.com/file/d/1bw3OBI2gYx6VSD0kqwIjwpK-w-4MgBvA/view?usp=sharing Online website - https://sweetsoplenty.weebly.com/ We will spread our information through the relevant sources above and through close contacts such as family members and friends Sweets O’ Plenty 1 0 Sweets O’ Plenty 1 1 5.0 Operations 5.1 Venture Organization What form of business organization will be used? Why? Our business organization is a partnership for a fixed term with the co-owners being Trent, Karam, Arib, and Christian. This is because we agreed to manage the company together and share its profits as well as its liabilities equally. The venture is planned to end at the completion of the project. 5.2 Break-Even Analysis What does it cost to produce the product/service? Chocolate Chip CookiesQR - 31.7 per batch (30 cookies) Brownies - 45.22QR per batch (12 brownies) Fudge - 58.37QR per batch (30 pieces of fudge) Bundle - 6 pieces of fudge, 2 brownies, 3 cookies - 23.38 QR - 12 pieces of fudge, 4 brownies, 6 cookies - 44.76 QR - 12 pieces of fudge, 8 brownies, 12 cookies - 66.18 QR At what point will the venture be profitable? (How many products do you need to sell in order to pay off your costs of production? Show me the numbers.) Chocolate Chip Cookies - 31.7 per batch (30 cookies) - 3 cookies- 3.17 QR - 20 QR/(10 QR - 3.17 QR) = 2.93; 3rd sale is profit - 6 cookies - 6.34 QR - 20 QR/(20 QR - 6.34 QR) = 1.46; 2nd sale is profit - 12 cookies - 12.68 QR - 20 QR/(35 QR - 12.68 QR) = 0.90; 1st sale is profit - 30 cookies - 31.7QR - 20 QR/(70 QR - 31.7 QR) = 0.52; 1st sale is profit Brownies - 45.22 QR per batch (12 brownies) - 1 brownie - 3.77 QR - 20 QR/(10 QR - 3.77 QR) = 3.21; 4th sale is profit - 2 brownies - 7.54 QR - 20 QR/(15 QR - 7.54 QR) = 2.68; 3rd sale is profit - 4 brownies - 15.07 QR - 20 QR/(30 QR - 15.07 QR) = 1.34; 2nd sale is profit - 8 brownies - 30.15 QR - 20 QR/(55 QR - 30.15 QR) = 0.80; 1st sale is profit Fudge - 58.37QR per batch (30 pieces of fudge) - 6 pieces of fudge - 11.67 QR Sweets O’ Plenty 1 2 - - 20 QR/(25 QR - 11.67 QR) = 1.5; 2nd sale is profit 12 pieces of fudge - 23.35 QR - 20 QR/(50 QR - 23.35 QR) = 0.75; 1st sale is profit 20 pieces of fudge - 38.91 QR - 20 QR/(75 QR - 38.91 QR) = 0.55; 1st sale is profit Bundle - 6 pieces of fudge, 2 brownies, 3 cookies - 23.38 QR - 20 QR/(40 QR - 23.38 QR) = 1.2; 2nd sale is profit - 12 pieces of fudge, 4 brownies, 6 cookies - 44.76 QR - 20 QR/(75 QR - 44.76 QR) = 0.66; 1st sale is profit - 12 pieces of fudge, 8 brownies, 12 cookies - 66.18 QR - 20 QR/(100 QR - 66.18 QR) = 0.59; 1st sale is profit 5.3 Risk and Assumptions What are the potential threats that could reduce the likelihood of this venture being successful? Covid-19, competition from other sweets businesses, food poisoning, our delivery system breaks down/fails, inability to find ingredients or the ingredients for the same costs, bad reviews/ some people might dislike the product or feel they were taken advantage of and complain to others, What can be done to minimize these risks? Use protective equipment, undercut the prices of our competitors and produce a superior product, wash hands regularly and don’t cross contaminate, car check up, try and reserve ingredients from the store or stock up before we start, if someone dislikes our product we can offer them a refund or send them an apology. What factors are beyond the owners control that will need to be monitored? Some of the factors that we will have to consider and monitor as we go forward that are out of our control are school closures, country shutting down, COVID spikes, ingredients not being sold at the shop due to an economic shutdown Sweets O’ Plenty 1 3 Appendix 1 Paul Bakery Transcription: Paul Employee: Hello, good evening, how may I help you? Arib: Hello, I'm a student from the American School of Doha, I have a couple questions for my business project, do you have a manager I could speak to? Paul Employee: I have only my supervisor, but right now he's talking to some guests, at a table. Arib: Okay, can I ask you? Paul Employee: Yeah, what would you-(audio cuts out) Arib: So, we want to discuss, from a business standpoint, your particular store, and how it succeeds in functioning. The first question is, what products do you sell the most of? Paul Employee: Usually, it's the Croissants sir. Arib: How much does it cost? Paul Employee: This one costs 12 riyals sir; it depends on the flavor sir, but it ranges around 15-12 riyals. Arib: What products do you sell the least of, would you say? Paul Employee: The least the pie sir. Arib: Okay, what would you say the price of that is? Paul Employee: This one ranges around 24-25. Arib: Does your business offer delivery services? Paul Employee: Yes we do, sir. Arib: What are the hours of operation? Paul Employee: For the delivery, sir, you mean? Arib: Yeah. Paul Employee: Starting at 10 in the morning until 7. Sweets O’ Plenty 1 4 Arib: What do you think is the biggest factor that contributes to the success of your store? Paul Employee: Well, that one I can't answer well, but actually, right now, we're endorsing breast cancer awareness month; we're selling products and 10 percent of the products that we're selling, we're giving to charity. Arib: Very interesting; as I previously mentioned, we are a part of a business project at the American School of Doha and would like to present our idea to you and we would like your feedback. Our business is a small home made bakery business where we are selling three small products. Apple crumble, rice krispies, and double doozies; they're American sweets. We are offering each product in three different sizes with their respective costs. This business will offer a delivery option with various methods of payment, (a credit card or cash). So we were wondering if you could give us some strategies and feedback regarding where we would succeed. Do you believe we should sell more products a start up? Or start with less? Paul Employee: You're starting (unintelligible); I think yes, but you should go for online, like advertise it online, especially with Facebook, so that your product will be known. Because we have also Facebook, and we have also an app; we have a Paul app, it's like, when you're paying, the amount you're paying, you should earn points, and you can use those points for payment, like a money (unintelligible). Arib: We were thinking of starting on Instagram, but do you think Facebook has any specific advantage over Instagram in terms of advertising? Paul Employee: I think so sir, yes. Arib: Okay, that's it. Thank you so much for your time, this has been very enjoyable. Paul Employee: You're welcome sir, have a good night. Sweets O’ Plenty 1 5 Works Cited American Psychological Association. “Mental Health Issues Increased Significantly in Young Adults over Last Decade.” ScienceDaily, ScienceDaily, 15 Mar. 2019, www.sciencedaily.com/releases/2019/03/190315110908.htm. “Confectionery - United States: Statista Market Forecast.” Statista, www.statista.com/outlook/40101000/109/confectionery/united-states.