Process
- Your first job, as a group, is to come up with your company name, company marketing slogan, candy name, candy design, and wrapper design. Ask yourself the question, what is going to make my candy unique and attractive to kids and parents alike?
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To help you make these decisions, we, as a class, are going on a field trip to the supermarket. Once we arrive, we will immediately walk to the candy aisle. Work with your team and choose five (5) candy bars to study. While in the aisle, take notes of what your team learns about candy design, sales, and marketing strategies. Were discounts, sales, promotions, or giveaways used? What makes one candy stand out? Is it the wrapper design, color, shelf level positioning, advertisements, discounts, or unique packaging? What is the location of the candy aisle and is candy sold at checkout? Are prices about the same or are different pricing strategies being used? Proceed with Ms. Miller to the checkout stand. Ms. Miller will purchase your sample candies so that you can continue your investigation in class.
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Now that we have returned to class, examine the candies for candy names, ingredients, manufacturers, wrapper design, candy size (length, width, and weight), price per unit (individual), and any other special features of your candy samples. Create a spreadsheet using Excel or other spreadsheet software to record all your findings.
As a team, create a one page typed response to the following question:
From your investigation, in what ways can a candy company, or any business, differentiate its product or programs from that of its competition?
- Go on a virtual tour of Hershey Pennsylvania at the attached site. Read about the history of the Hershey Company, its founder, and the making of Hershey chocolates.
http://www.hersheys.com/discover
- Review the history of M & Ms by clicking on the following link:
http://www.m-ms.com/us/about/mmshistory/
As a team, create a one page response to the following question:
Which company has done a better job of adapting its product and marketing/sales programs to a changing consumer market? Is it necessary to change or adapt your product or programs with the times? Give clear examples to support your positions.
- With your team members, come up with your candy proposal. This is your one chance to convince Miller Candy Incorporated to invest in your candy design. Your final proposal will be in the form of a five paragraph essay. Make sure your proposal addresses the following:
Paragraph #1- This is your chance to introduce your candy (by name). Make sure you hook the reader and briefly introduce the three parts of your proposal: candy, marketing, and sales program.
Paragraph #2- This paragraph should provide detail about your candy to include size, shape, color, texture, ingredients, flavor (s), taste, and any unique attributes or qualities of your new candy.
Paragraph #3- This paragraph should summarize your marketing plan. What demographic will you target (children, teens, adults, high-price consumer, price conscious consumer)? What will the wrapper look like? Any contest? Taste tests? Giveaways? How will you advertise? Billboard (when and where)? TV (during what programs, on what channels, how long of a spot)? Movie theater advertisements? Magazine ads? Newspaper ads? Where will the candy be placed (by the registers, in the candy aisle)? Will you have a company mascot or logo? Be creative and detailed.
Paragraph #4- This paragraph should summarize your sales plan and address how profits will be split with Miller Candy Inc. Will you offer the candy for school fundraisers? Will you sell locally, nationally, internationally? What will be the price of your candy? How many bars do you expect to sell during the first year? How do you want to be paid? Do you want a flat rate for the sale of the rights to your candy bar? Do you prefer to be paid a commission, a certain percentage of the company’s profits from the sale of your candy? If so, what percentage would you ask for and how often would you like to be paid?
Paragraph #5- This is your chance to conclude with your final “hard” sell. Remember to reinforce your introduction and the wonders of your candy, marketing program, and sales program. Conclude with a call to action… something like “Invest with us today!”
- GET MARKETING AND SALES HELP FROM A PROFESSIONAL:
As you work out your marketing and sales plan, you can go to our class blog where you can ask questions or run ideas by a real life marketing and sales executive. Click on the following link:
http://mrsmillersblogheaven.blogspot.com/
What lessons did your team learn from working with a real world professional? How did you apply these lessons to your candy or program design? Explain and write a 1/2 page typed response to this question.
- MATH LINK:
Using your knowledge of percents, calculate the following:
Formula:
Total revenue= Total units sold x unit price
Total revenue - Operations and manufacturing costs = Profit
Assuming sales of 100,098,980.00 bars at $.50 per bar (regular price) for your company's first year, and operating/manufacturing costs of 60% of total revenue:
What would be the total revenue for the year?
What would be your total operating costs in dollars?
What would be your Company's profit in dollars?
What would happen to the totals if the company discounted the unit price by 20% but sales tripled?
How can providing a consumer discount affect overall company profits? What factors should you consider before offering discounted prices? Write a 1/2 page typed response.
- ART LINK:
Your last job is to create your wrapper design using presentation or graphics software. You and your team will work on your designs in class. This is a creative process. Sketch your original design on paper, adding details such as color, logos, etc. You must complete both your front and back wrapper designs using presentation and/or graphics software taught in class.
How can wrapper design and packaging affect product sales? What other factors should you consider in choosing packaging materials? Write a 1/2 page typed response.