BTT 1O - Major Assignment
Toronto Raptors Souvenir Stands
Scenario:
The companies that sell basketball memorabilia are always looking for interesting souvenirs to sellto fans in the stadium. This is always a gamble because they never know exactly what will sellwell in any particular year as the tastes of the potential customers change quickly andunexpectedly. Factors such as weather and team success also affect sales. It ispossible, therefore, to run out of popular selling items. It is also possible to have a surplus ofsouvenirs that are poor sellers. Another problem is that contracts must be negotiated eight or nine months (or more) before the season actually starts.
The company you work for just won the rights to sell souvenirs at the Air Canada Centre in Toronto for the 2010-2011 season. To prepare, the company must select avariety of items that will interest the fans and make a handsome profit. Individually, solve the followingbusiness problem.
Problem:
You want to select souvenir items to sell to Raptors fans. You must decide what items to selland in what quantity so that you make at least $150,000 in profit each month. The items you chooseshould also represent the least potential loss in the event that sales do not go well.
Your solution to this problem should include a spreadsheet, a wordprocessing document , an HTML document, and a photoshop picture that you will use to create a short commercial using movie maker or flash.
The Approach:
Think about your assignment as having three parts:
- The planning stage when you think about the problem.
- The data processing stagein which you collect, enter and process the data.
- The reporting stage where you analyse your information and report on your findings.
Use the planning template on the web-site called RaptorsPlanto help you plan and organize yoursolution.
Information:
- Because of your experience with computer applications, youhavebeen appointed as manager of all the souvenir stands at the Air Canada Centre.
- As mentioned, your company has made an agreement with the Raptors organization to sellsouvenirs during the upcoming season. The Raptors Basketball Team Inc. has given yourcompany the right to sell any items with the Raptors logo on them. They, in turn, are toreceive a percentage of the selling price on all items sold.
- You must write to your potential supplier of the merchandise to introduce yourself and yourcompany and to inform them about the agreement between yourself and the Raptors.
(Word Processing portion of the activity) - Your bosses have provided you with a list of what they feel are the most promising souveniritems. These are listed in the word document titled Appendix 2. Due to space constraints, you are limited to selling five of the items from Appendix 2. You will obviously want to choose the five which will give youthe highest potential profit. Some subjective decisions will have to be made in order tocomplete this section. For example, total profit depends on sales volume as well as unitcost. How many of each item can you sell? Choose 5 of these items.
- To advertise your booth, you are to create an attractive movie which will be played to all fans as they enter the Air Canada Centre.This movie should incorporate atleast three different fonts and tenappropriate graphic images. You should aim to have it last 10 – 15 seconds. At least one of your photo’s in the movie must be changed using photoshop – both the original and changed version should be displayed in the movie.
(Photoshop and Movie Maker / Flash portion of the activity) - To increase the exposure of your goods and the Raptors in general, your bosses have askedyou to “get something on the Internet”. They have not specified exactly what they want but are adamant in this request.
(Web-Design portion of the activity)
- To help you in your analysis, you should prepare a spreadsheet with the following labels
(see Appendix 2 – Excel document):
(Excel portion of the activity)
Item name
Number sold
Retail price
Wholesale price
Raptors commission (20% ofsales)
Stand rental (12% of sales)
Staff costs (minimum wage x 4 hours per game x 20people)
Total costs
Potential profit
Other information that you may find helpful:
average number of fans per game = 19,500
souvenir sales per fan per season = 42% (this figure was based on market research)
- Your bosses want a hardcopy report of your business plan. This plan must:
Begin with your aims and objectives for the upcoming season
Include a hardcopy of all items outlined above
Include a list of files created for this project and an outline of their contents
All files shouldbe stored in a folder called RaptorsCompanyName
Name of Company: ______
Due Date: ______