The Cereal Box Project

Transcription

1 DAY 2: The Cereal Box Project A major manufacturer of nutrtous and delcous breakfast cereals has just hred you. Your frst assgnment s to work wth a team that has been gven the responsblty of developng a brand new cold breakfast cereal. You wll come up wth the product dea, packagng, brand name, cereal name, and prce. Most products are amed at specfc consumers called target markets. Target Markets are specfc consumers that have wants and needs n common and therefore would be lookng for the same specfc product. Three to sx year old chldren and ther buyers (ther parents) would want a dfferent cereal than serous athletes or retred ndvduals sxty to eghty years old. The product needs to meet the needs and wants of the target consumers. You wll be creatng ths cereal for the target market lsted below: TARGET MARKET for your cereal: The target market s made up of young teenagers (both sexes) from They are startng to become ndependent and want to be grown up. They look to teenagers as ther role models, love popular musc, sports, and vdeo games. Ther parents stll make the ultmate decson about whch breakfast cereal to buy. The parents want a nutrtous cereal that wll provde a good breakfast, but also one that ther teenagers wll eat. As a team (generally 2 members): Product Desgn: Determne the contents of your cereal. Prce your Product: Prce for producer, for retalers, for consumers. Promoton of your Product: Produce an attractve package or package dea for your cereal. Sell your product to the stockholders (class).

2 PRODUCT You must produce a product that wll appeal to the wants and needs of your target market. Use the Breakfast Cereal Cost Lst to help you desgn ths new product. It has the BASIC COST for cereal and the BASIC COST for the box. To make your cereal unque so that the consumer wll purchase your cereal nstead of one of your compettors you wll select add-on s to add to your cereal, your box and the package desgn. Ths requres thought and research. RESEARCH Research s to provde nformaton about what the consumer wants and needs. Often ths s done wth surveys or by lookng at the competton. For our research ask several fellow students what they lke n ther cereal and what ther parents lke. Ths wll help you decde whch add-ons to put n your cereal. Do Assgnment: RESEARCHING TARGET MARKET WORKSHEET PRICE Prce s determnng a dollar amount you can sell the product for. Do Assgnment: PRODUCTION/DEVELOPMENT COST WORKSHEET Wrte the basc costs of your cereal and box onto your cost worksheet. Carefully consder your research and your own preferences and then lst any add-ons that wll be added to your cereal, the box and the desgn. Determne Total Producton Cost (by addng all costs of the cereal) Determne Cost to Retalers (by addng Total Producton Cost and Proft) Determne Cost to Consumer (by addng Cost to Retalers and Proft) PROFIT s very mportant to a Producton Company or a Retal Store (Albertson s, Dck s, etc.). To stay n busness, a company must make enough money to cover costs of producton plus tems such as: employees, buldng leases, utltes, stockholder s dvdends, etc.

3 Name Perod RESEARCHING TARGET MARKET WORKSHEET You are an ntervewer. You wll get nformaton to help develop your cereal so the target market wll buy t. ASK THREE STUDENTS THESE QUESTIONS: Student Queston Seldom 50% of the tme Most of the tme ASK 3 STUDENTS: Whch 3 tems would you choose to have n your cereal? Student Sugar Coatng Color Unque Shapes Marshm allows Frut Nuts Reduced Calores Extra Nutrton

4 BASIC COSTS BREAKFAST CEREAL COST LIST COST OF CEREAL.70 Basc Cost 15 oz. of cereal wth basc nutrtonal value COST OF BOX.32 Four-color wth wax paper nner wrapper ADD-ON COSTS CEREAL Sugar Coatng.27 Colorng (raspberry red, lemon yellow, etc.).16 Unque or unusual shapes.14 Marshmallows.23 Frut (rasns, blueberres, etc.) Each.26 Nuts Each.24 Reduced fat and calores.27 Enhanced nutrtonal value.32 BOX Box larger than 15 oz or oddly shaped.16 Fol nner wrapper.13 OTHER Premum (a neat-o prze).42 Celebrty endorsement or on package.50 Fctonal character on package.25

5 Name Perod PRODUCTION/DEVELOPMENT COST WORKSHEET Cost of Market Research.20 (Product development) Cost of Advertsng.35 (Promoton) Cost of Dstrbuton.15 (Place) COST OF CEREAL Basc Cost Cereal Add-On s COST OF BOX Four color wth wax paper nner wrapper Box Add-On s Premum Celebrty or Fctonal Character TOTAL PRODUCTION COST (Total of all costs lsted above) Proft to Manufacturer (Total Producton Cost * 13%) (multply) COST TO RETAILERS (Add Total Producton Cost and Proft to Manufacturer- Wholesale Prce) Proft to Retalers (Cost to Retalers * 8%) COST TO CONSUMERS (Add Cost to Retalers and Proft to Retalers - Retal Prce)