Zak! Designs Presentation

• The Assignment:The Assignment:– Develop incremental growth opportunities for

Zak’s dinnerware and drinkware program through 3 different means, determining which produces the most sales for the company:• Value-added Promotions• Pricing Promotions• Special Merchandising Vehicles

– Conduct consumer research and make recommendations to Zak on the following:• Price Point Testing• New Products/Categories

• ““Follow Me” DisplaysFollow Me” Displays– Target market will be engaged as they encounter

a character cut-out at the entrance

– Cut-out will lead the child to the product via stickers along the floor of the retail outlet

• Footprints for Dora or spider webs for Spiderman

• ““Follow Me” DisplaysFollow Me” Displays– Target market will be engaged as they encounter

a character cut-out at the entrance

– Cut-out will lead the child to the product via stickers along the floor of the retail outlet

• Footprints for Dora or spider webs for Spiderman

• ““Follow Me” DisplaysFollow Me” Displays– Target market will be engaged as they encounter

a character cut-out at the entrance

– Cut-out will lead the child to the product via stickers along the floor of the retail outlet

• Footprints for Dora or spider webs for Spiderman

• ““Follow Me” DisplaysFollow Me” Displays– Target market will be engaged as they encounter

a character cut-out at the entrance

– Cut-out will lead the child to the product via stickers along the floor of the retail outlet

• Footprints for Dora or spider webs for Spiderman

• Posters Posters – Designed for end-cap or four-way displays

• Draws attention and leads to displays

– Increase awareness

– Showcase product lineup and attributes

• Product TagsProduct Tags– Front features the Zak

Design brand name • Helps increase brand

awareness

– Inside of tag:• Product shown on left• 3-4 attributes listed on the

right– Identified through

discussions in the focus groups

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• Interactive DisplayInteractive Display– Composed of a TV

embedded into a cardboard display playing a Dora movie or television episode

– Product strategically placed below the TV

• Children will be easily drawn to the products surrounding the display

• Toy Department Toy Department PlacementPlacement– High traffic areas for children

• Additional outlets = more exposure

– Focus group members thought of Zak dinnerware as toys

– Opportunity during holidays for increased sales due to increased foot traffic in department

– Priced cheaper than other “toys”• More attractive to parents

• Movie Theater PromotionsMovie Theater Promotions– Promote products in conjunction with a

movie’s release

– Advertise during previews of kid’s movies

• ““Dora Day Tripper”Dora Day Tripper”– Hangs off back of car seat

– ZAK would have an advantage personalizing travel packs with licensed characters

– Target market• Commuting parents

– Safe & durable

– Benefits• Maintain a clean vehicle

• Maintains safety within a vehicle by preventing the need to unbuckle in order to reach something

• College Line of ProductsCollege Line of Products– Obtain university logos

• Relatively cheap

– Attributes• Durable & microwavable

– Target market• New college students

– Sold in university bookstores

• Gift SetsGift Sets– More competition

• 95% market share unrealistic

– Seasonal or holiday items

– Pint glass or shot glass sets for students

– Tea set for girls– Distribution channels

• Premium vs. low-cost retailers

• Re-designed strawRe-designed straw– Smooth & detachable

– Rubber “stopper” included

– Softer, more durable

– Re-designed lid (no straw)

• Re-freezable ice packsRe-freezable ice packs– Included with lunch packs

• Microwavable/insulated Microwavable/insulated productsproducts– More practical

• Focus GroupsFocus Groups– We conducted 2 focus groups

– Purpose:• Gain insight on consumer opinions about Zak cups

– Goals:• Learn what product features consumers values• Discover areas consumers desire improvement• Gain info to create price points for in-store promotion

– Targeted mothers with children 2-7 years of age

• Focus GroupFocus Group– Major Findings:

• Top three desired attributes:– Safety– Durability – Cleaning ease

• Would like products to be microwave safe

• Sets over individual items • Squeeze ‘N Sip was most

popular• Cups viewed as more of a toy

than dinnerware

• Price Point TestingPrice Point Testing– Done over 3 weeks at two local grocery stores

– To determine which price would give Zak the best return, we took into account the price elasticity of each product over the 3 weeks by increasing and decreasing the price of each cup

– Goal was to find the price where elasticity is 1• This is where the highest return is

– Done with both Dora and Spiderman cups

• Puppet TumblerPuppet Tumbler– Spiderman data was skewed

because the same amount of product was sold for 2 weeks straight

– Dora results showed the optimal price for the Puppet Tumbler was $5.99

– Since the Dora Puppet Tumbler data was more legitimate we decided that a price of $5.99 would be acceptable

• Squeeze ‘N SipSqueeze ‘N Sip– Spiderman’s elasticity only changed

by 0.01• Same return from $3.49 to $4.99

– With Dora, we found that the elasticity was closest to 1 in between $3.49 and $3.99

– We decided that leaning towards $3.99 would be the best option for Zak because it is very close to an elasticity of 1, and fits within Spiderman’s elasticity range as well

• Buddy SipBuddy Sip– We found that a price of $3.49

would be the best option and gave the highest return

– It was unexpected to find the Buddy Sip should sell for less than the Squeeze ‘N Sip because we felt the Squeeze ‘N Sip was not as flashy as the other two cups, but the ease of using the Squeeze ‘N Sip made up for this

• Price Point Testing ConclusionPrice Point Testing Conclusion– Suggested Prices

• Puppet Tumbler: $5.99• Squeeze N Sip: $3.99• Buddy Sip: $3.49

• In Conclusion…In Conclusion…• We have:We have:

– Thought of new promotional tools

– Listed new product innovations

– Conducted consumer research

– Conducted focus groups

– Calculated product elasticities

– Done price point testing