Zipfizz Is Owned & Operated by Chirayu Patel, Rajat Arora, and Karan Patel

Zipfizz™ is owned & operated by Chirayu Patel, Rajat Arora, and Karan Patel.

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Executive Summary

Subject: To create a successful marketing plan for a new beverage to be sold through the soon to be opened Commons Corner Store at North Park Secondary School.

Problem/Purpose: Our goal is to build a successful marketing plan for the Zipfizz (fruit drink) beverage that satisfies the needs and wants of students at North Park Secondary School. We would like to turn the unused Commons Corner Store into a successful business that offers an exceptional beverage for the students and staff members at the school.

Research Methods and Findings: 94 students and staff completed at North Park Secondary School completed our survey that consisted of 10 questions. From our results, we learned that the two most popular flavours for our fruit drink are fruit punch and lemonade. Most of the staff and students at North Park Secondary School are also willing to pay $0 to $2 for a fruit drink. Also, we learned that most people at the school drink juice three to four times a week and that 54% of the people surveyed said that they would prefer a fruit drink over any other form of beverage available. In conclusion, our data was a good sample of the population as students from all grades were surveyed along with the teachers at the school. Our results show that most people at North Park Secondary School prefer to drink a fruit drink and are willing to pay $0 to $2 for this drink.

Recommendation: Zipfizz drinks offers a variety of flavours, a good source of vitamins, are low in carbohydrates and they provide a refreshing taste for the students/staff members at North Park Secondary School. Zipfizz drinks differentiate themselves from their competitors by providing a larger quantity for the same or lower price while providing a healthier drink that does not sacrifice taste. As we are going to be selling a new drink, we will have to promote our drink to make our target market aware of the product. We will place posters all around the school to attract the students and staff member's attention. Also, we plan to promote the beverage by playing a short commercial on the televisions that can be found inside and outside the cafeteria. These commercials will be played during school hours. According to our research, 76% of the staff members and students are willing to only pay $0 to $2 for a fruit drink at the school. Therefore; promotional pricing will be used to sell our product and it should lead to high profits and a high reputation for our beverage. The initial price the beverage is to be sold at is $2. Furthermore, we won't be directly providing the consumers the beverage; we will be selling them the drinks through the Commons Corner Store at North Park Secondary School). This will save us labour costs.

Purpose Statement

Our purpose is to turn the currently unused Commons Corner Store into a successful business while offering an exceptional service for the students at North Park Secondary School. This can be achieved by creating a successful marketing plan for the Zipfizz (fruit drink) beverage while satisfying the needs and wants of the students and staff at North Park S.S.

Research/Survey results

For our survey, we were determined to ask a variety of people to gather our information. We accomplished this by asking people based on their gender, grade, student or staff member, and if they were a part of the IBT program or not. This provided us with an accurate representation of the entire school. Based on our survey results, the flavours most preferred by the students and staff members at North Park S.S. are Lemonade and Fruit Punch. We also discovered that most of the people at North Park S.S are willing to pay $0 to $2 for a fruit drink. Also, most of the students and staff members drink juice three to four times a week.

Summary

After gathering all of our data, we have come to a conclusion that a large part of our target market is male, grade 10, and members of the IBT Program. The most preferred fruit drink flavours are lemonade and fruit punch. Our target market is willing and able to pay a price between $0-2 for a healthy fruit drink. A clear representation of the statistics can be seen in the next few pages:

Background Situation

North Park Secondary School is a well-reputed school in the Peel District School Board, and is one of two schools that host the International Business & Technology (IBT) program in the Peel District. It is located at 10 North Park Drive in Brampton, Ontario. The school was established in 1978 and has been hosting the IBT program since 2006. Right now, the Commons Corner is an unused portion of the school. In the past, it was a semi-successful store and sold a collection of products including souvenirs. As the sales decreased, the store was forced to close down and the school has yet to find a better use of this location for the students.

Current Situation

North Park S.S. has had considerable growth throughout the years and currently has 1403 enrolled students throughout grades 9 -12. Out of 1403 students, there are 427 grade 9 students, 393 grade 10 students, 334 grade 11 students and 232 grade 12 students. The current principal for the school is Mr.Geale. The school cafeteria is open during lunch periods and sells a variety of beverages. The average price for these drinks is $0 to $3. There are very long lineups to buy food and beverages from the cafeteria.

Discussion

Needs & Wants

The current needs and wants at North Park S.S. are cheaper products that students are able to purchase and use. In previous years, the prices in the cafeteria servery have increased exceptionally and many students are looking for other ways to purchase food and drinks at cheaper pricing.

Price

From analyzing the surveys, we discovered that our target market is willing and able to spend $0 to $2 for our Zipfizz Drink.

Advertising Techniques

Our company - Zipfizz™ has decided to use posters and a short television commercial as the most effective method of advertising. If we put posters in the hallways, many students will pass by them and notice our new beverage. As for the television commercial, this form of advertising will attract and capture attention of many staff and students in the commons area. We believe that we can achieve a much larger market through these two methods of advertising.

Target Market

Zipfizz™ believes that any student throughout grades 9-12 or staff member is best suited for this product at school. This is because Zipfizz is a healthy fruit drink that provides a significant amount of vitamins, fewer calories, and lower carbohydrates. Zipfizz comes in 5 extraordinary flavours to meet your needs: Fruit Punch, Pink Lemonade, Citrus, Grape, and Orange Soda. We will also be offering special limited time offers near to the beginning which will encourage the students to try out the beverage.

Projected Consumer Demand

We estimate that there will be a large consumer demand for our drink, as long as we keep our prices relative to what the consumers are willing and able to pay. The Commons store has been shut down for a very long time so people are going to be curious about what new product has been launched. Our projected consumer demand is $5,000 drinks per month.

Projected Sales

We estimate that we will have enough sales to keep our business running and make profits along the way. Even though there is a lot of competition in or around the school such as the cafeteria servery, Pizzaville, Foodland, Little Caesars and so on... We believe that our beverage will be able to beat out the other competitors because of our location and low pricing. Our projected sales are $10,000 per month with $5,000 drinks being sold at a price of $2.00 each.

Potential Problems

Some of the potential problems that may arise from marketing the product at North Park Secondary School are that students may not be interested in the product. Students may not be interested in buying a fruit drink at lunch time along with their regular meals. Students might opt to buy milk, other popular juice brands already available at school or they might just bring a drink from home. A large part of the population will bring drinks from home which is why we have to use low pricing to get them to try our new beverage. This can be achieved by advertising and informing the students that Zipfizz drinks are available at North Park S.S at a very low price. Other potential problems could be that students do not like the taste of our Zipfizz drink. These are two factors that could lead to very negative results for our company and our beverage.

Recommendations:

Product:

Zipfizz Fruit Drink (comes in five different flavours): Fruit Punch, Pink Lemonade, Citrus, Grape, and Orange Soda.

Product features:

Zipfizz drinks will come in variety of flavours such as: Fruit Punch, Pink Lemonade, Citrus, Grape, and Orange Soda. They will also be made with 100% real fruit and thus be a great source of vitamins and energy. Zipfizz drinks will also be a low in added glucose (sugar) which will allow the drinks to be low in carbohydrates. Furthermore, they will also taste very delicious and refreshing.

Product differentiation:

The differentiating factor between Zipfizz drinks and the others will be how much quantity we provide for prices which are lower than all of our competitors. Since we are planning to sell this drink at a school, students and staff members will certainly take the quantity of the drink into consideration when making the decision of which one to buy. Along with our increased quantity, the drink also contains the healthiest ingredients possible without sacrificing taste. At a school, most students and staff members buy a drink based only upon the taste but there are also many students and staff members that focus on what they intake. So by including healthy ingredients it will allow more drinks to be sold as more students and staff members will be attracted by it.

Promotion

What methods will be used to promote the product?

We choose to use posters in order to promote our beverage-Zipfizz. We used this method because the posters can be placed all around the school and can also be easily distributed. Due to this, our posters will be visible to a large portion of our target audience. The posters will also attract the students' attention and inform them about the brand new beverage. Once they see our poster, they will be influenced to try the drink. We have also decided to create a short commercial to promote the Zipfizz fruit drink. The commercial will introduce the drink and also display some of its advantages/benefits. This video will be playing on the television in the Commons during school hours. We believe that we can also attract a lot of students from this method as well.

Sample Poster

Price

What will the selling price of the product be? Will there be promotional or premium pricing?

Based on our survey results that can be seen under the "Research/Survey Results" section, show that students and staff at North Park Secondary School are willing to pay $2-4 for dollars for a fruit drink. 76% of the students and staff surveyed said that they would be willing to pay $0 to $2 while 24% said that they would be willing to pay $2 to $4 for a fruit drink. Based on our survey results, our initial assessment is that we will sell Zipfizz drinks at North Park S.S. for exactly $2. Our company believes that students will be willing to pay this price for a new drink to be sold at the school that will satisfy their needs and wants. Our company will use promotional pricing to sell Zipfizz drinks at North Park S.S. The low pricing should encourage students to buy our beverage and help our company make a decent amount of profit. A selling price of $2.00 and promotional pricing should lead to high profits and a high reputation for our beverage at North Park S.S.

Place

Zipfizz drinks will be sold through an indirect channel of distribution, Producer (Zipfizz) -> Retailer (North Park Secondary School) -> Customer (Students/Staff Members at North Park). Zipfizz will sell drinks to the school who will sell them to the consumers. The reason Zipfizz is not selling through a direct channel of distribution is that large investments are required and it is unsuitable for small producers. If we wish to sell through a direct channel of distribution (Producer --> Consumer), we will have to pay the school for occupying a portion of the property, as well as pay the employees that sell the drinks. However if we wish to sell through an indirect channel of distribution (Producer --> Retailer ---> Consumer), we will not have to pay the school or the employees as we only sell the drinks to the school. Another advantage of selling through an indirect channel of distribution is that the school pays for the products and if they aren't sold it wouldn't be our problem.