Mon Oct 31

Continue Group Assignment presentations from Friday

Film from Frontline: The Persuaders

LINK to VIDEO:https://www.pbs.org/wgbh/frontline/film/showspersuaders/ 

Advertising: Persuasion and the Advertising Industry

1. How does the advertising guru say that cults and brands are similar?

2. What is emotional branding?

3. What does the one marketing/advertiser consider a "love mark" brand?

4. What is the ultimate in product placement?

5. Explain what a focus group is and what its purpose is?

6. According to marketers/advertisers,"only thinking about yourself makes you a better_______________."

7. How is today's consumer ( especially gen Z and millennials) different from consumers of the past?

8. Marketing is not just about selling products, what else can be marketed or advertised?

9. Look at 2-3 luxury TV commercials ( fragrance, luxury car, diamonds) and write down all of the concepts or ideas that are connected with LUXURY.

10. List 2 takeaways from this film.

This week Introduction to Promotions and a continuation of looking at Entrepreneurs.

Friday Oct 28

 Creative Challenge (groups of 3-4 people)

You work for a company that buys and resells products. Your manager tells you to go check out a warehouse that is filled with 50,000 old record albums. Your task is the following...

1. Decide on a realistic price to bid on the albums. 2. What would you do with the album's first?

3. Let’s say, you determine half of the albums are warped and will not work in a record player, list 4 ideas for transforming the records without melting them down to plastic to create new resalable products.

For anyone away today...do this on your own and hand in on Mon.

Thurs Oct 27

Over the next week or two, we  will be looking at various Entrepreneurs and how they got started in business. We will discuss how the final project will look. Then we will be moving on to the third P...PROMOTIONS

Types of Businesses: Should be in your notes

A business entity is an organization that uses economic resources to provide goods or services to customers in exchange for money or other goods and services. Business organizations come in different types and different forms of ownership.

3 TYPES OF BUSINESses

1. Service Business 

A service type of business provides intangible products (products with no physical form). Service type firms offer professional skills, expertise, advice, and other similar products. Examples:

2. Merchandising Business

This type of business buys products at wholesale price and sells the same at retail price. They are known as "buy and sell" businesses. They make profit by selling the products at prices higher than their purchase costs. A merchandising business sells a product without changing its form. Examples

3. Manufacturing Business

Unlike a merchandising business, a manufacturing business buys products with the intention of using them as materials in making a new product. Thus, there is a transformation of the products purchased. A manufacturing business combines raw materials, labor, and factory overhead in its production process. The manufactured goods will then be sold to customers. Examples:

Hybrid Business

Hybrid businesses are companies that may be classified in more than one type of business. A restaurant, for example, combines ingredients in making a fine meal (manufacturing), sells a cold bottle of wine (merchandising), and fills customer orders (service).

Nonetheless, these companies may be classified according to their major business interest. In that case, restaurants are more of the service type – they provide dining services.

FORMS OF BUSINESS ORGANIZATION

These are the basic forms of business ownership:

1. Sole Proprietorship

A sole proprietorship is a business owned by only one person. It is easy to set-up and is the least costly among all forms of ownership.

The owner faces unlimited liability; meaning, the creditors of the business may go after the personal assets of the owner if the business cannot pay them.

The sole proprietorship form is usually adopted by small business entities.

2. Partnership

A partnership is a business owned by two or more persons who contribute resources into the entity. The partners divide the profits of the business among themselves.

In general partnerships, all partners have unlimited liability. In limited partnerships, creditors cannot go after the personal assets of the limited partners.

3. Corporation

A corporation is a business organization that has a separate legal personality from its owners. Ownership in a stock corporation is represented by shares of stock.

The owners (stockholders) enjoy limited liability but have limited involvement in the company's operations. The board of directors, an elected group from the stockholders, controls the activities of the corporation

4. Cooperative

A cooperative is a business organization owned by a group of individuals and is operated for their mutual benefit. The persons making up the group are called members. Cooperatives may be incorporated or unincorporated.

Some examples of cooperatives are: water and electricity (utility) cooperatives, cooperative banking, credit unions, and housing cooperatives.

Wed Oct 26

 Today in Marketing/Entrepreneurship

1. Presentation of pricing assignment to class: 5 marks, plus hand in assignment 20 marks

2. Review Sock Pocket business

3. Lululemon is due on Friday

4. Gary Vee video: List 3 Take Aways from the video

Gary Vayner runs a Social Media Marketing Agency. At a young age he considered himself to be a "hustler." Questions and Take Aways from the Video 

1. School is built for workers. What are your thoughts on this?

2. Vayner's 3 Tips for a successful business are:

3. According to Vayner, what is advice for what is most important in business? 

4. What technology is on the verge of exploding? what media is on the decline?

5. What doe Gary V mean when he says..."jab, jab, jab, hook?"

 

Tues Oct 25

Check out this grade 8 entrepreneur's negotiating skills. 

Company: Sock Pocket

• Fill in the Video Sheet as you watch the movie.We will discuss on Wed.
• Be prepared to present your Pricing assignment and hand in the Pricing Assignment on Wed.

Pricing Presentation: Present your 3 products. Let us know who your target market is. When presenting let us know the wholesale cost per item and the cost you will selling it for to the customer (retail cost), last explain your pricing strategy, and if you sell 100 of each of your products what your total profit will be. To determine your profit margin percentage use the following formula:

(revenue-costs) /revenue

Ms Akerley is in for me today and is a Math person, you may want to have her look over your math on the Pricing assignment.

• Continue to work on Lululemon assignment: needs to be completed by Friday. We will also discuss Lululemon on Wed as well.

VIDEO: SOCK POCKET

https://wisepocketproducts.com/

Questions for Sock Pocket

1. How old is this entrepreneur?

2. What is a prototype?

3. What is the wholesale cost of the product?  What is she selling the product to the customer for?

4. The Sharks made an offer to be a partner in the company, and offered $30,000 for 33.3% of the company. But Sohie did a counter offer which was:

5. What new product does this company have coming soon?

6. What problem did Sophie solve?

More Business Definitions

 Business Definitions

Conversion rate: converting someone who goes to your site into a customer

Trend: A long lasting interest ( seasonal) in a product which is popular with the masses.

Fad: A short lived, often viral, facination or popularity of a product. ex. fidget spinner

Call to action: When you go to a website/social media account and you are asked to do something...like fill out an address form.

B2B: Business to business marketing or selling

B2C: Business to consumer marketing or selling

Bounce rate: The percentage of people who land on a page and leave without clicking anything

Proprietary: ownership of a design or technique

Patent: protection of intellectual property ( utility or design patent) is protected legally

Personal Selling: When a company sends a salesperson out to people's houses to sell. An example would be Avon sales or a vacumn cleaner salesperson.

Direct to consumer selling: Selling directly to the customer bypassing retail. Usually done through an online site.

Retail Selling: Selling through a brick and morter store.

Branding:  is the process of communicating a unique selling proposition, or differential, that sets a product or service apart from the competition. Examples of branding techniques include the use of logos, taglines, jingles or mascots.

Emotional Branding: finding ways to connect with the customer through storytelling

Link to Lululemon History Read out to class

https://info.lululemon.com/about/our-story/history

Watch video

Check out Lululemon's website here: lululemon Website

Understanding how a company presents itself to the customer is an important part of business. Move your way through the Lululemon website and answer the following questions. This assignment will be marked out of 20 and handed in. To be done individually.
For students who have analyzed this company before ( last year's group) choose your own large company and answer the following questions around that company.

Lululemon Analysis (20 marks)  

PLEASE TYPE YOUR RESPONSES ON A SEPARATE SHEET 

A lot of the information to answer these questions can be found at the bottom of the website, 

 

1. What does Lululemon sell? ( List a few sample products) 

2. Who is their target market? (sex, age etc) Is there more than one target market? Give details. Do you think Lululemon provides products men would buy?

3. List the positives of the website, what works? (2-3 points) 

4. What could be done better on the website? (list 3 points) 

5. Do you think they use effective photos to advertise their products? 

6. Is there an obvious mission/slogan/manifesto that Lululemon has, if so what is it? 

7. What do you the purpose of the community section is on their site? 

8. Do you think the community section of their site is effective...explain your reasoning. why/why not? 

9. List the programs the company is involved in. What do you think is effective about these programs, do you think they are in line with the company’s goals? 

( diversity and body positivity)

10. What makes a business a good corporate citizen? List 3 ways that Lululemon is a good corporate citizen.  

11. Do you think the prices for items are reasonable and in line with other competitor's products? Give details by searching competitors products. 

12. What kind of jobs would be available in this company? Is this a company you would want to work for? Explain why or why not. 

13. Check out Lululemon’s Social Media sites, are the sites working, do they have engaged followers? How do you know if the followers are engaged? 

Tues Oct 17

Profit margin = (Revenue - cost)/ Revenue

Partner or individual Pricing Assignment: 

You are opening a new school store at Isfeld. You have to determine 3 products that you think would be good potential products in order to make money for the school. I want you to find these products at wholesale prices and then set the retail price for each product. 

Answer the following questions with regard to your task.

1. Why and how did you decide on the products you decided to put into the school store? Please explain the quality level of these products whether each is a high, medium , or a low end product.

2. Determine a pricing strategy ( refer to pricing strategies handout) for each of the 3 products and explain why you chose the particular strategy to price your products. Make sure you clearly state all of your costs including shipping and taxes. You may include taxes in your price when you sell retail.

3. List the wholesale and retail cost for each product as well as the profit margin for each product.

4. If you sold 100 of each product, determine the dollar value profit you would make on each product and the total profit of all of the products combined.

Example: Bought a 24 pack of muffins from Costco for 10.99. Each muffin costs approx .46 cents.

At the school store, we will sell half a muffin for .75 cents.

Profit will be 48 x .75 = $36.00 ( total sales if all muffins are sold) - 10.99 (Cost of muffins for 24

Profit margin = (Revenue - cost)/ Revenue

Then figure out how much you would make on 100 24 packs of muffins.

100x 36.00= $3,600 total gross sales

100x 25.01= $2,501

Mon Oct 17

 1. Review luxury pricing

2. Review definitions

3. See what Dan Look has to say about Premium/Luxury products.

4. Understanding Private label

Private Label

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What is Private Label?

A private label product is manufactured by a contract or third-party manufacturer and sold under a retailer’s brand name. As the retailer, you specify everything about the product – what goes in it, how it’s packaged, what the label looks like – and pay to have it produced and delivered to your store. This is in contrast to buying products from other companies with their brand names on them.

For example, Target sells a variety of branded snacks from companies like General Mills and Frito-Lay, but it also sell its own chips and crackers under the Archer Farms brand – Target’s private label brand.

Hair salons often create their own branded line of shampoos, conditioners, and styling products for their customers to buy and take home. Restaurants often decide to private label condiments or mixes that have become popular with customers. Maid services could private label a line of household cleaners and pet stores could private label a line of pet foods and grooming tools.

Private Label Categories

Almost every consumer product category has both branded and private label offerings, including:

• Personal care
• Beverages
• Cosmetics
• Paper products
• Household cleaners
• Condiments and salad dressings
• Dairy items
• Frozen foods

While private label products are in the minority, comprising 15% of U.S. supermarket sales, according to the Harvard Business Review, some private label categories are seeing strong growth, according to a Nielsen Report.

Advantages

Retailers interested in filling their shelves with products featuring their brand name have good reason. Some of the biggest advantages of private label products include:

• Control over production - Third-party manufacturers work at the retailer’s direction, offering complete control over product ingredients and quality.
• Control over pricing - Thanks to control over the product, retailers can also determine product cost and profitable pricing.
• Adaptability - Smaller retailers have the ability to move quickly to get a private label product in production in response to rising market demand for a new feature, while larger companies might not be interested in a niche product.
• Control over branding - Private label products bear the brand name and packaging design created by the retailer.
• Control over profitability - Thanks to control over production costs and pricing, retailers therefore control the level of profitability its products provide.

Disadvantages

The disadvantages of adding a private label line are few, as long as you have the financial resources to invest in developing such a product. The main disadvantages include:

• Manufacturer dependency - Since production of your product line is in the hands of a third-party manufacturer, it’s important to partner with well-established companies. Otherwise, you could miss out on opportunities if your manufacturer runs into problems.
• Difficulty building loyalty - Established household brands have the upper hand and can often be found in a variety of retail outlets. Your product will only be sold in your stores, limiting customer access to it. Of course, limited availability could also be an advantage, giving customers a reason to come back and buy from you.

Although private label products are typically sold at a lower price point than their name brand brethren, some private label brands are now being positioned as premium products, with the higher price tag to prove it.