Table of Contents 1. Executive Summary .............................................................................................................. 2 2. Purpose Statement ................................................................................................................ 3 3. Background Information ..................................................................................................... 4 3.1 Historical Information ................................................................................................. 4 3.2 Current Situation ......................................................................................................... 4 4. Discussion............................................................................................................................... 5 ... 5. Recommendation................................................................................................................... 6 4.1 Product Features .......................................................................................................... 6 4.2 Product Differentiation ................................................................................................ 6 4.3 Promotion .................................................................................................................... 6 4.4 Price ............................................................................................................................. 6 4.5 Place ............................................................................................................................ 6 6. Conclusion ............................................................................................................................. 7 7. Bibliography .......................................................................................................................... 8 1 1. Executive Summary This report provides a specific outline to marketing our beverage, Fruity Smoothies. The goal of Fruity Smoothies is to market our company successfully making it more well-known to any future consumers at North Park S.S so they purchase this product. The research method used was surveys directed towards the student and staff in North Park S.S. The findings found from the surveys stated that posters around the school and displays on the monitor screens catch our audience’s attention the most. Also, a very small percentage of students bring lunches from home. Students who do not bring lunch from home usually have about $3 to $6 with them at school and are willing to buy our smoothies in the winter. Lastly, about 73% of our audience would prefer to customize their own smoothie. With the information obtained from the surveys, the company determined the features and differentiations of the product, the price, the channel of distribution and the promotion for the product. A wide variety of fruits, additional toppings and sizes will be featured in Fruity Smoothie’s menu that allows students and staff to customize their own smoothie. It will also be freshly made and prepared in front of the customers and will be available for purchase during lunch, before school and after school. Posters, free samples, announcements on the P.A, commercials in the school cafeteria and special offers will be made for the promotion of Fruity Smoothies. Fruity Smoothies will use promotional pricing for the beverages and will be $1.25, $2.00 and $2.75 for a small, medium and large respectively. There will be an additional cost for toppings. As the producer of this fresh and healthy drink, the beverages will be sold directly to the consumers. Therefore, the channel of distribution for the company will be from producer to consumer. With little competition and a wide variety in selection for this beverage, there will be many customers interested in Fruity Smoothies at North Park Secondary School. 2 2. Our Purpose Our purpose is to provide students and staff at North Park Secondary School with our refreshing beverage brand, Fruity Smoothies. We plan to advertise and promote Fruity Smoothies throughout the school so students are aware of the product. 3. Background Information 3.1 North Park Secondary School was founded in 1978 Famous alumni from the school includes Olympic gold medalist Cassie Campbell International Business and Technology program (IBT) was created in 2006 2008, part of the school was demolished to make the new extension the school currently has now 3.2 Historical Information Current Situation 1403 students enrolled at North Park o 427 are from grade 9 o 393 are from grade 10 o 336 are from grade 11 o 232 are from grade 12. Cafeterias at the school open at 8:00AM, period 3 and period 4 o prices range from $0.50 to $2.00 for drinks o have decided to switch to healthy choices o Many students purchase food or beverages from the school cafeteria o Long line-ups daily Vending machines have also changed their products to healthy choices. 17% of the community North Park S.S is in are people aged 15-24 28% of the community are high school students 3 4. Discussion North Park Secondary School’s students have many needs or wants as to what type of food they consume. Not only that, the staff at North Park Secondary School takes the food sold at school into consideration as well. The students that purchase food from the cafeteria, on a daily basis want tasty and healthy food. Furthermore, students want to be able to purchase food at an affordable price as well. They also want to be able to customize the product to suit their own personal preference. Along with a demand for healthy and tasty food, students also want affordable food. Since most students do not have jobs, it is important that food is priced reasonably. On average, students usually have $1 to $3 or $3 to $6 dollars with them in school for spending. Therefore, they would be willing and able to spend up to $6 on goods and services, according to our survey. In order to get young teenagers interested in healthy food choices’, advertising is necessary. By handing out free samples or having food stands, the students get a chance to taste our product (smoothies). Excessive promotion could lead to high demands and popularity of the product; as well as free samples, allow the students to be more aware of the product. Furthermore, big, bold, colourful posters in the hallways, classrooms, commons and cafeteria would be very effective to raise awareness about our product within our target audience. Announcements and displays will also be an effective source of advertising. Another effective source of advertising to the students is by displaying advertisements on the monitors in the cafeteria and commons where students are during their lunch. Our product Fruity Smoothies is targeted towards both students and staff at North Park Secondary School. It is a refreshing, healthy and tasty beverage, which we recommend the whole school of North Park to drink. However, the type of customer who is best suited for this product is an average student who wants a refreshing and healthy beverage that will be affordable and tasty. Our product is mainly directed towards students because we want students to make healthier choices. An estimated 60% of students purchase their lunch from school and nearly 76% of the students stay inside during lunch. Based on these results, Fruit Smoothies projects a high consumer demand. There will be a lot of production of the product all school year long, even during winter -time (an estimated 43% said they are willing to buy smoothies during winter). However, even though there is a high consumer demand, Fruity Smoothies is only willing to supply a limited amount of the product. This is due to the fact that the company does not want to face any profit losses. In addition, the supply will increase if the consumer demands continue to increase. Based on the results from the survey, consumer demand is fairly high; however, it is ideal if the company starts off by supplying smoothies to a limit. By supplying a limited amount of 4 smoothies there will be no over production of the smoothies. Furthermore, this does not mean only a certain amount of people will be able to purchase the smoothie. A limited supply allows the company to have a safer and stable start to business. Supply will surely increase, as we are certain the consumer demands will increase as well. Consumers are highly willing to purchase this smoothie and Fruity Smoothies is able to supply them with their demand. On estimate 58% students bring $1 to $6 dollars to school for lunch. This works in the favor of Fruity Smoothies, for our smoothies range from $1.25 to $2.75. Since there is a high consumer demand, sales will also be high based on the survey for many reasons. One being that the price of our product is very responsible based on the amount of money students bring to school. Students are also willing to buy the smoothies during the winter. The school has a population of 1403 of which gives Fruity Smoothies the confidence that they will profit highly. On average, Fruity Smoothies projects to sale 60-90 smoothies per day. This is due to the fact 72% of the students purchase lunch from school 1 to 3 times a week, as well as over 90% students will be more interested if there were discounts. Based on the survey, sales look high for Fruity Smoothies. 74% students read posters around the school, 48% look at the displays and monitors in the school and only 17% listen to announcements. Therefore, it is ideal that Fruity Smoothies markets and promotes itself threw big, bold posters and by placing advertisements on monitors. Fruity Smoothies does not have much competition within the school. The company sells real fruit smoothies that are healthy, tasty and affordable. Our only competition could be other stores such as Hasty Market or the gas station. However since 76% of those surveyed say they stay inside during lunch, other stores are not much of a competition to us. Fruity Smoothies sells fresh, healthy, tasty and affordable smoothies and since there is a high consumer demand, competition is not a major issue. Fruity Smoothies is determined to be successful. Even though Fruits Smoothies, which are real fruit smoothies, is an amazing product; there are still many problems that might arise. One is competition; Fruit Smoothies will be selling the smoothies at the Common Corner store. There may be competition with other beverage companies that are trying to sell their drink in the Commons store. Not only that, but several students purchase lunch outside from stores like Hasty Market, Trinity Common and Esso gas station that we will have competition with. Lack of student interest could be very negative towards the production of the smoothies as well. We could lose the students to other stores therefore leading the company with low production due to lack of student interest. There also may not be enough fruit during different seasons that the consumers have a high demand for in their smoothies. Our consumers could also be allergic to some of the fruits and if we do not sell the fruits fast enough, they could rot and go to waste. Some students also prefer to go home for lunch if they live nearby or bring lunch from home. 5 5.1 Product Features Fruity Smoothies’ store offers a nutritious and delicious drink packed with numerous healthy fruits and toppings. We have a wide variety of fruits to select from including kiwi, bananas, mango, strawberries and berries. Many toppings to add include tapioca, milk, yogurt, crushed ice, dry toppings and fruit. This tasty smoothie comes in three different sizes – small, medium and large. Customers will have a chance to choose smoothies from the delicious menu or mix and match fruits to customize their very own smoothie. 5.2 Product Differentiation Beverages made at Fruity Smoothies are always guaranteed to be fresh and made with the finest fruits and toppings. To ensure this, we prepare the smoothies right in front of the customers. We strive to be an eco-friendly company and show our support for the environment by recycling and using eco-friendly cups. Students and staff at North Park will get the opportunity to purchase at beverage not only at lunch, but also in the mornings and afterschool. 5.3 Promotion A couple of weeks before the opening of Fruity Smoothies at the Commons Corner, representatives from our company will offer free samples to students and staff in the cafeteria. This method will make our beverage more aware to the public and encourage more customers to buy it. Fruity Smoothies will give many opportunities to customers to save money and enjoy buying. We will make large colourful, posters and announcements on the P.A advertising our beverages. We will also be making commercials which will be displayed in the commons and in the cafeteria. Our specials offer will be stamp cards. This card will keep track of the amount of large smoothies they buy and when they buy five smoothies then they will get the sixth one free. 5.4 Price The selling price of the product will be $1.25 for a small smoothie, $2.00 for a medium and $2.75 for a large. If a student or staff are interested in adding an extra topping(s) on their smoothie, it will cost $0.50 per topping. There will be promotional pricing because Fruity Smoothies will have discounts and special promotions to attract our customers. 5.5 Place The channel of distribution will be from producer to consumer. Fruity Smoothies is the producer because the company will make the beverage and sell it directly to our consumers who are the student and staff at North Park. 6 6. Conclusion We believe that our marketing plan will be effective because we have properly planned everything. We believe that this marketing plan will create a strong consumer awareness of our beverages, satisfy the needs and wants of the consumer and will make a profit for our company from this business. Our restaurant is offering a nutritious and delicious drink filled with several healthy fruits and toppings. We are giving different sizes to suit your appetite and an opportunity to select a beverage from our menu or mix and match fruits to customize a unique smoothie. Our product shows respect and consideration towards the environment by using eco-friendly cups. Students and staff and obtain an opportunity to purchase the beverage in the morning, at lunch and after school. In addition, Fruity Smoothies sells beverages for affordable prices; a small for $1.25, $2.00 for a medium, $2.75 for a large and any add-on toppings are $0.50. The channel of distribution will be from producer to consumer. Fruity Smoothies is the producer and we make the smoothies and sell it to the consumers who are student and staff in North Park. 7 Bibliography Web Site Wikipedia contributors, First, ed. Wikipedia . Wikipedia, The Free Encyclopedia, 2012. s.v. "North Park Secondary School ." http://en.wikipedia.org/wiki/North_Park_Secondary_School (accessed March 21, 2012). In –Text: (Wikipedia contributors 2012) Web Site Peel District School Bored , "North Park Secondary School ." Last modified 2011. Accessed March 21, 2012. http://schools.peelschools.org/sec/northpark/Pages/default.aspx. In-Text ("North Park Secondary School " 2011) Website zoocasa, "Westgate, Brampton." Accessed March 26, 2012. http://www.zoocasa.com/en/area_details/30485-Westgate-BramptonOntario/demographics. In-Text ("Westgate, Brampton" ) 8