Candy Corner
Project Manager: Sukrit RajpalFinancial Analysist: Stephen Nestor
Promotional Strategist: Sujaay Jaganathan
Business Proposal
What’s the Issue?
• Prices at the servery rising• Students wanting lower prices• Students want better quality• Frozen products served at servery
Our Solution
• Open a new counter• Sell fresh baked goods with
better quality• Sell candy, large and small• Keep prices low
Where’s the Market
• North Park Secondary School• 1385 students• Commons Area• Service between lunch breaks
Supply and Demand: Small Candy Packs
$- $0.20 $0.40 $0.60 $0.80 0
200
400
600
800
1000
1200
SupplyDemand
Price ($)
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 $1.70 0
2
4
6
8
10
12
SupplyDemand
Price ($)
Qua
ntity
Supply and Demand: Cookies and Muffins
$0.20 $0.40 $0.60 $0.80 $1.00 $1.20 $1.40 $1.60 $1.80 $2.000
20
40
60
80
100
120
140
SupplyDemand
Price ($)
Qua
ntity
Estimated Consumer Demand
• Projected Demand per Dayo Small Treats – 30 unitso Large Chocolate Bar – 5 unitso Baked Goods
• Cookies – 6 units• Muffins – 2 units
Price
– Supply and Demand Based Price • $0.30 for small packs of candy• $ 1.25 for large chocolate bars• A range between $0.75 - $1.50 for baked
goods
– Recommended Price• $0.25 for small packs of candy• $ 1.25 for large chocolate bars• A range between $0.50 - $1.25 for baked
goods
Price Comparison
Item Candy Corner Servery Vending Machine
Small Pack of Candy $0.25 N/A N/A
Large Chocolate Bars
$1.25 N/A $1.50
Baked Goods• Cookies• Muffins
$0.50$1.25
$1.00$1.25
N/AN/A
Average Cost 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
Expected Monthly Sales
ItemExpected
Units of Sale Per Month
Expected Selling Price per Unit
Expected Monthly Sales
Small Candy 30 X 20 = 600 $0.25 $150
Large Chocolate Bars 5 X 20 = 100 $1.25 $125
Baked Goods:• Cookies• Muffins
6 X 20 = 1202 X 20 = 40
$0.50$1.25
$60$50
Total Monthly Sales 860 $385
Expected Monthly Cost of Sales and Operating Cost
ItemExpected
Units of Sale Per Month
Expected Cost per Unit
Expected Monthly Cost
Small Candy 30 X 20 = 600 $0.10 $60.00
Large Chocolate Bars 5 X 20 = 100 $0.75 $75.00
Baked Goods:• Cookies• Muffins
6 X 20 = 1202 X 20 = 40
$0.20$0.83
$24.00$33.20
Total Monthly Cost 860 $192.20
Total Monthly Operating Cost – 25% of Monthly Cost
$48.05
Projected Monthly Profitability
Sales $385
Less: Cost of Sales $192.20
Gross Margin $192.80
Less: Operating Cost $48.05
Net Margin $144.75
Our Plan
• Buy weekly• Buy minimal baked goods• Buy fresh and quality products• Sell as quickly as possible• Create product differentiation
Our Competition
• Servery• Vending machines• Vendors in
neighbourhood
Projected Life Cycle
Product Life Cycle: Maintaining Business
• Introduce new goods• Periodically sell
specials• Systematic and
periodic surveys• Reassess situation
continuously
Recommendations: Product
• Small candy packs, large chocolate bars, cookies and muffins
• Emphasize quality and freshness• Hygienic condition
Recommendations: Place
• Commons Corner Store in North Park Secondary School
• 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
• Meets target consumer preference
• Lower than competitor prices
• Attract customers• Enforce other tactics
and goals
Recommendations: Promotion
• Small target• No need for large scale
promotion
• Promotional Strategies:– Announcements – Posters– Newsletter
Potential Challenges
• Garbage • Changing Customer Demand• Price Drop Competitor• Trained Professionals in Servery
Some Solutions
• Placards • Periodic surveys• Create product differentiation• Hire friendly, welcoming
employee• Special goods sold occasionally
Conclusion
• Meets consumer preferences• No or little competition • Profitable• Easy to manage• Minimal overheads• No wastage• Easy to change products