Calendar Pricing:
From the given data in the case of other universities, we gather round about 27% of students, who would buy the calendar at a price of $7 to $5. On the other hand, survey shows that if the calendar is priced at $8, 78.9% of respondents would buy the calendar. This price would also attract the buyers who preferred $10 and $12 prices to buy the calendar. This price would also challenge the bookstore prices for existing calendars.
Distribution Place:
The distribution could be performed using three ways. First way is to sell in bulk quantity to the book store. Secondly, booth could be rented out during the events and seminars. Thirdly, person to person sales could also be made. From the case exhibit, it can be viewed that the sales at U of O were highest.
By thorough analysis of other universities, it seems that 5000 students is an achievable target. U of M has 18,000 students with the sale of 5,000 calendars. As a result, 5,000 students along with 22,000 FAU students would accessible. From 5000 calendars, 3000 could be sold at the book store and remaining would be sold using the rented booths for events and seminars. In addition, other portion would be sold out using the person to person selling.
- a. Promotions
From the analysis, it is obvious that the sale would increase if it is done where mostly the females are available. The FAU newspaper could be used for promotion. In newspaper, article written on athletes could raise the sales and it would also give some publicity to the new calendars. Flyers could also be used for the promotion by posting it on the decorum walls near events and seminars. The flyers should be in size of newspapers advertisement’s eight pages, which would cost about $500. The advertisement in newspaper needs to be viewed a day before the launch of the calendar.
Sensitivity analysis
Break Even Volume Analysis
From the Calendar Costs Calculations performed in the Excel sheet, the total costs for 5000 calendars would be $13,715. In view of the fact that the book store would buy 3,000 calendars at $3.00, the sale to book store would generate $9,000. Breakeven would be 590 units of calendar at $8 on the remaining quantity sold. The break even volume is 3590, from which 3,000 sales volumes is from book store sales, and 590 sales volumes are from rented booths or person to person sales.
Recommendation:
It could be concluded that partners should publish large size of heavy stock at $8 calendar using both male and female athletes. The calendar should be starting at the school year of August. The target market should be both Boca Raton and Davie campuses for the sale of the calendar.
Refer the Excel Sheets for the calculation of the below Exhibits.
Appendices:
Exhibit 1:
|
Current Bookstore Calendar Sales |
|||
| Hallmark |
1500 |
$9.95 |
$14,925.00 |
| American Greetings |
2000 |
$8.49 |
$16,980.00 |
| Total Sales |
$31,905.00 |
||
| Per Student Calendar Revenue |
$1.46 |
||
Exhibit 2:
|
Calendar Printing Costs |
||
|
Fixed Cost Estimates |
||
| Cost of newspaper advertisement |
1 |
$ 500 |
| Flyers @0.05 |
300 |
$ 15 |
| Cost of twelve professional snaps | $ 3,000 | |
| Booth Costs for 20 events@10.00 | $ 200 | |
| Total Fixed Cost | $ 3,715 | |
|
Variable Cost Estimates |
||
| Variable Printing Costs @2.00 |
5000 |
$ 10,000.0 |
| Total Costs | $ 13,715 | |
Exhibit 3:
|
Survey Question |
Count |
Out of 329 |
% in sample group |
% of total population |
| Wants to buy Calendar |
253 |
253 yes |
100% |
76.90% |
|
What kind of models do you prefer? |
79 |
all females |
31.23% |
24.01% |
|
108 |
all males |
42.69% |
32.83% |
|
|
66 |
both males and females |
26.09% |
20.06% |
|
|
What kind of photo poses preferred? |
178 |
athletes in uniforms |
70.36% |
54.10% |
|
62 |
athletes in swimsuits |
24.51% |
18.84% |
|
|
13 |
dressed casually |
5.14% |
3.95% |
|
|
What starting date preferred? |
56 |
calendar starting year |
22.13% |
17.02% |
|
197 |
school starting year |
77.87% |
59.88% |
|
|
Would you buy calendar |
144 |
for self |
56.92% |
43.77% |
|
76 |
as gift |
30.04% |
23.10% |
|
|
33 |
both |
13.04% |
10.03% |
|
|
Highest price for calendar |
3 |
for $12 |
1.19% |
0.91% |
|
48 |
for $10 |
18.97% |
14.59% |
|
|
147 |
for $8 |
58.10% |
44.68% |
|
|
55 |
for $6 |
21.74% |
16.72% |
|
|
What is your sex |
99 |
Male |
39.13% |
30.09% |
|
154 |
Female |
60.87% |
46.81% |
|
|
Which Campus attended? |
175 |
Boca Raton |
69.17% |
53.19% |
|
48 |
Davie |
18.97% |
14.59% |
|
|
29 |
Jupiter |
11.46% |
8.81% |
|
|
4 |
other |
1.58% |
1.22% |
|
|
What is class Standing |
35 |
freshman |
13.83% |
10.64% |
|
21 |
sophomore |
8.30% |
6.38% |
|
|
58 |
junior |
22.92% |
17.63% |
|
|
66 |
senior |
26.09% |
20.06% |
|
|
31 |
graduate |
12.25% |
9.42% |
|
|
42 |
unknown |
16.60% |
12.77% |
...............................
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