Candy Corner

Project Manager: Sukrit RajpalFinancial Manager: Stephen Nestor

Promotional Strategist: Sujaay Jaganathan

What’s the Problem?

• Prices at the servery rising• Students wanting lower prices• Students want better quality

Our Solution

• Open a store • Sell fresh baked goods

with quality• Sell candy, large and

small• Keep prices low

Where’s the Market

• North Park Secondary School

• 1385 students• Commons Area• Service between 11:08 am

– 1:41 pm

Supply and Demand: Small Treats

$- $0.20 $0.40 $0.60 $0.80 0

200

400

600

800

1000

1200

Supply vs. Demand for Small Treats

SupplyDemand

Price ($)

Qua

ntity

Supply and Demand: Large Chocolate Bars

$0.70 $0.80 $0.90 $1.00 $1.10 $1.20 $1.30 $1.40 $1.50 $1.60 $1.70 0

2

4

6

8

10

12

Supply vs. Demand for Large Chocolate Bars

SupplyDemand

Price ($)

Qua

ntity

Supply and Demand: Baked Goods

$0.20 $0.40 $0.60 $0.80 $1.00 $1.20 $1.40 $1.60 $1.80 $2.000

20

40

60

80

100

120

140

Supply vs. Demand for Baked Goods

SupplyDemand

Price ($)

Qua

ntity

Estimated Consumer Demand

• Projected Demand (Individual)– 2-4 Small Treats per Day– 2-4 Baked Goods per Week– 0-1 Large Chocolate Bar

Price of Goods

Product Needed Price Vendor Quantity

95 Skittles and Starburst Pack

$9.95 Wal-Mart 1

Cadbury Fun Treats $10.97 Zellers 1

Farmer’s Market Fresh Cookies

$5.99 No Frills 1 (30 per container)

Farmer’s Market Fresh Muffins

$4.99 No Frills 1 (6)

Chocolate Bars $2.99 No Frills 1 (4 per pack

Operating Cost

Cost of Goods

9.95 $10.97 $5.99 $4.99+ $2.99$34.89

Operating Costs

$34.89 25% = $8.72

Aproximate Monthly Cost

$34.89+ $8.72$43.61

How Much Will It Cost?

– Projected Price • $0.30 for small packs of candy• $ 1.25 for large chocolate bars• A range between $0.75 - $1.50 for baked

goods

– Our Prices• $0.25 for small packs of candy• $ 1.25 for large chocolate bars• A range between $0.50 - $1.25 for baked

goods

Our Profit

Small Treats

95 95 = 190

$0.25 190 $47.5

Chocolate Bars

4 $1.25 $5

Fresh Cookies

30 $0.5 $15

Fresh Muffins

6 $1.25=$7.5

Our Profit

Total Revenue

$47.50 $5.00 $15.00 + $7.50 $75.00

Estimated Monthly Profit

$75.00 $43.61 $31.39

Our Plan

• Buy weekly• Buy minimal baked goods• Want freshness and quality• Want to sell everything• Create product

differentiation with quality

Our Competition

• Servery• Vending machines• Vendors in

neighbourhood

Projected Life Cycle

Product Life Cycle: Maintaining Business

• Introduce new goods• Periodically sell

specials• Survey systematically • Reassess situation

continuously

Recommendations: Product

• Candy and baked goods• Emphasize quality and

freshness of baked good

• Hygienic condition

Recommendations: Place

• Commons Corner Store in North Park Secondary School

• Small target• 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

• Target is able to pay current prices

• Keep price lower than competition

• Attract customers• Enforce other tactics

and goals

Recommendations: Promotion

• Small target• No need for large scale

promotion

• Promotional Strategies:– Announcements – Posters– Newsletter– Leaflets

Potential Problems

• More garbage E.g. candy wrappers

• Eating lots of candy unhealthy• Could lose demand from

unhealthy food• School servery and vending

get competitive• Servery has experienced staff

Some Solutions

• Garbage bins in Commons• Change products

occasionally• Create product

differentiation• Hire friendly, welcoming

employee• Special goods sold

occasionally