Introduction
Waffle Away is a small business that manufactures waffles with various toppings to provide a large choice for customers.
The main target market are the students of AUT, and the waffle stand has been located in the campus ground.
The Waffle Away business shall promote it’s business by handing out flyers and using posters in the hallways.
My Role in the Business
I am the marketing manager of the ‘Waffle Away’ business.
It is my job to devise marketing plans for the business and to ensure that the business manages to gain sufficient customers.
More importantly, all marketing plans should be designed in line with the freedom of the budget, because the finances need to be managed and proper allocation of funds is important.
Objectives
The main objective of the business is to gain a large number of customers and to retain them.
The primary objective is to meet the requirements of the customers and to provide them with quality waffles.
The projected rates suggest that the business should be selling its waffles to more than 70% of the students, and this is what the business aims to achieve.
Financial Performance
The total budget of the business was somewhere around $1,200.
The business managed to perform credibly on all fronts, and managed to gain profits on all fronts.
The net profit was recorded at $834.00 for the original budget, $213.52 for the flexed budget and the actual profit was enlisted at $129.
Sales Quantity
The total students in the campus are around 18,000, with 1,400 staff members. It is believed that Waffle Away holds a 8.125% share of the total market.
The potential number of students and members alike has been deduced as somewhere around 4000 people.
It is forecasted that Waffle Away could sell 350 waffles to the students, which would result in a gross profit of $825.5.
Cost and Selling Prices
Each waffle takes around 50 cents to produce, with variable prices of toppings. One topping is for $3, two for $3.5 and three for $4.
Hence, the price for one waffle has been set at $5, with a free topping, and a special offer of 2 waffles is set at $8. At such cheap rates, the business can make large profits.
Fixed Costs
Because the stand is located in the campus ground of the AUT, the fixed costs have been estimated at $180.5, which shall be deducted from the total budget of $380.
The other fixed costs are those of the ingredients needed to produce waffles, and these have been estimated at $199.5, to produce enough waffles for the forecasted market of 350 people.
Stock Issues
All stock was properly stored in freezers and hence this resulted in very little issues.
Further more, waffles were only produced on order and they were not pre manufactured, in case that they might not sell.
As selling was only done on market day, there were very little issues regarding stocks.
Marketing of Waffle Away
In order to market the Waffle Away business, flyers and posters were used by the officials to spread awareness amongst the people.
Special deals were also introduced, and discounts were offered on alternate market days to increase the number of customers that bought waffles from the stall.
The business is going to use a waffle sandwich which would occupy the servings of the waffle as the sandwich’s bread and allow the customer to choose any of the three fillings.
Special deals will be introduced, such as the $8 for 2 waffles, which allows customers to save $2 on a waffle, as well as keep the business in a substantial profit margin.
One positive factor that contributes to the efficient marketing of this business is it’s location.
The Waffle Away Stand is located away from any other well known Waffle cafés, and this contributes greatly to its sales.
Two people have been hired to market the products of the Waffle Stand on Market day, which would result in more sales and recognition.
Posters have been pasted on the walls of hallways to increase awareness of a new stall that sells waffles of good quality.
The business is also making use of person to person marketing which it considers to be the most effective form of marketing to convince more people to buy their waffles. (Goodman, P. (1994). A Brief analysis of the CGA. San Francisco: Kogan Publishers. )
All the waffles have been made in line with the quality standards of the Consumer Guarantees Act (1993). (Government of the States, USA. (1993). Consumer guarantees act.)
Conclusion
The business fared well on it’s first market day, and managed to accumulate substantial profits.
This was mainly due to the effective marketing that was done of the business, and it resulted in a large customer base.
More over, the quality of the waffles was good and all products were manufactured in hygienic and serene conditions. (Goodman, P. (1994). A Brief analysis of the CGA. San Francisco: Kogan Publishers.)
References
Government of the States, USA. (1993). Consumer guarantees act. USA: White Paper.
Goodman, P. 1994-1995. A Brief analysis of the CGA. San Francisco: Kogan Publishers.
Kotler, P. and Armstrong, G. 1997-1998. Marketing An Introduction. Fourth Edition. New Jersey: Prentince Hall International.