Friday Nov 1 Pricing Assignment

 Review of Fixed and Variable Costs: 1 min video

How to calculate Overhead Costs 

• Getting a percentage and applying it to every product that is sold to get a base cost before adding a profit

From the Video:

T-shirt Business Example:

Direct or Varriable Costs

• t-shirt costs
• decoration cost
• labour cost
• packaging cost
• shipping costs............................$15,000/month

Indirect or Fixed Costs

• Rent/Residential space
• Cost of POS system/software/website
• Marketing/Promotions cost
• Phone
• Equipment
• Vehicle expenses....................$3,000/month

to get your overhead cost: Fixed divided by Variable $3,000/$15,000 =.2 x100 =20%

T-shirt Cost $2      

Transfer Cost $2   

Labor $1

Direct Cost $5.00/shirt

To calculate the Overhead Costs: Indirect Costs/Direct Costs = put into a %

Therefore the Overhead cost would be 20% of $5.00 = $1.00 which means you need to add a $1.00 to each shirt to consider overhead costs. Therefore the base cost of the shirt is $6.00.

TODAY'S TASK

1. Your cost per shirt is $6.00 and you decide to sell it for $12.00. Calculate the profit you will make on each shirt.

2.You sell 100 shirts for $12.00 each, what is your total revenue and what is your profit?

3. You sell 100 shirts for $24.00 each, what is your total revenue and what is your profit?

4. Explain why it is important to price your products accurately.

5. If you sold your t=shirts for $100 each, what pricing strategy would you be using Explain.

6. What happens if you forget to add in the overhead cost and you simply thought the base cost for your shirt was $5.00.

 

Fixed costs (aka fixed expenses or overhead)

Fixed costs stay the same month to month. They aren’t affected by your production volume or sales volume.

You can think of them as the price of staying in business: Even if your company isn’t making any sale, you have to pay your fixed costs. For instance, no matter how many rubber ducks you sell, your bathtub accessories store still needs to pay rent. Fixed costs appear on your income statement and balance sheet, but they tend to stay the same month to month.

Variable costs (aka variable expenses)

Falling under the category of cost of goods sold (COGS), your total variable cost is the amount of money you spend to produce and sell your products or services. That includes labor costs (direct labor) and raw materials (direct materials).

Variable costs increase in tandem with sales volume and production volume. They’re also tied to revenue—since the more you sell, the more revenue you have coming in. So, if you sell tote bags, and your sales revenue doubles during the holidays, you’ll also see your variable costs—including the cost of wholesale tote bags—increase.

In your notes make two lists:

1. A list of personal and variable expense that you have.....let's say you have to pay rent and it costs $500/month, you have a car payment of $100/month and an insurance payment of $50/month, in addition to whatever your variable expenses are.

2. Do a little research to make sure you understand fixed and Variable expenses. Then create a list of FIXED and VARRIABLE expenses for a business like 133 in Courtenay.

3. If you or your business had to save money, what expenses would you cut first, list 3 expenses.

Wed Oct 30 Intro to Pricing

 Record into your notes.....and put the notes in your partner folder which should be organized and handed in at the end of this unit on price.

Price is the amount of money exchanged for a good or service. Price is the amount that consumers will be willing to pay for a product. Marketers must link the price to the product's real and perceived value, while also considering: supply costs, seasonal discounts, competitors' prices, and retail markup.

Price is, therefore, the element of the marketing mix that leads to revenues, unlike the other elements which incur costs. Pricing is also important as a strategic tool as it creates customer value.

The business model is a conceptual representation of the company’s revenue streams. Any significant changes in the price will affect the viability of the business model.

Pricing Objectives

 Before deciding on a pricing strategy, a company needs to consider its pricing objectives. Pricing objectives should be aligned with the company's overall marketing or       company objectives. 

Some of the different types of pricing objectives may include:

• Attracting new customers 

• Retaining existing customers

• Preventing competitors from entering the market, 

• Preventing competitors from gaining market share,

• Attracting customer attention to the release of a new product 

Increasing sales of a specific product line.

What are the 4 types of pricing? 

The four main types of pricing include:

• customer value-based pricing 
• cost-based pricing
• competition-based pricing 
• new product pricing strategies

List of all term 1 work

 Term #1 Work Marketing: PART 1

• Quiz 5 mks
• Frisbee Challenge 10 mks
• Transferable Skills 10 mks
• Kickstarter 10 mks
• Chopstick Group 20mks
• Facebook 10 mks
• Dragon's Den (Sock Pocket Q) 10 mks
• Bear's Lair 10 mks
• Test 40 mks
• Generational Groups 5mks
• Bobby Hundreds 10 mks

TOTAL = 140 mks Marks to date as of Mon Oct 28

Part 2

• Eastcoast Lifestyle 20 mks
• Westcoast powerpoint Group 30 mks
• Johnny Cupcakes 15 mks
• Entrepreneur write-up 20 mks
• Gary V Questions 15 mks
• Crabby Patty Questions 10 mks

TOTAL = 110 mks

Combined Total = 250 mks End of TERM: Friday Nov 8

KD Collaboration Mon Oct.28

Marketing Why Learn About IT?

Politics: According to a Pew Research Center study published last month, 40% of young adults under the age of 30 regularly get their news from TikTok, up from just 9% in 2020. While in the U.S., the Harris campaign went all-in on TikTok early to try to win over the growing number of young people who get their news from the short-form video-sharing app, the Trump campaign was left in their dust and has been playing catch-up ever since. More people have been paying attention to the anti-Trump posts.

You market Yourself Everyday. Personal story

LESSONS IN FAILURE

When David C. Novak, the former chairman and CEO of Yum! ( KFC, Taco Bell, Pizza Hut) was asked if curiosity and a learning mindset can be taught. He replied, “I absolutely believe it is a muscle that can be strengthened, and I think it can become a habit." “But you have to build self-awareness that the only way I’m going to get better is by being humble enough to know that I don’t know everything, and I need other people, and I can learn from them.” In a chapter subtitled “Learning From Your Failures,” Novak recalls how, as chief marketing officer of PepsiCo’s beverages division, he pushed ahead with a product called Crystal Pepsi—a clear, carbonated soda—despite negative feedback from bottlers and former PepsiCo CEO Donald M. Kendall. The product was named one of Time magazine’s 100 Worst Ideas of the Century and was spoofed on Saturday Night Live, Novak says. One of his big takeaways: “When people with experience share their lessons with you, listen,”

LINK : KD Super Mario Collab

Article by: Johnathan Russell

KD’s latest collaboration with Nintendo is tapping into its 30-year history of partnering with popular movies, TV shows and video games. 

Starting on Oct. 16, the brands launched KD Super Mario Power-Up Shapes Mac ‘n Cheese, which is a continuation of KD’s 2023 brand platform, “Gotta be KD.” 

“The KD shapes portfolio focuses on tapping into cultural relevance to drive excitement and love from people of all ages,” Brooke Morrison, KD senior brand manager, tells strategy. “The shapes portfolio strives to connect friends and families, providing comforting and fun experiences that leave lasting memories. The new noodle shapes include Fire Flowers, Super Stars and Super Mushrooms. They were inspired by elements of the Super Mario universe that power up Mario, Luigi, Princess Peach and others in the games. 

In the 1990s, KD launched its first licensed shapes product with Super Mario characters, which differed from this year’s Power Up Shapes launch, Morrison adds. “We know that KD and Super Mario have been close to fans’ hearts from comforting childhood memories through every stage of their lives,” he says. “Keeping our updated brand strategy at the center of all work, we’re doubling down on our position as Canada’s favourite Mac ‘n Cheese brand and a consumer-obsessed brand that stays true to its roots while allowing real fan insights and cravings to guide what we bring to market.” 

KD and KRAFT Mac & Cheese are also inviting consumers across North America to turn the iconic blue boxes into a chance to win epic prizes with the Power Up Pursuit Contest, which is running until Dec. 31. 

One grand prize winner will receive an all-expenses-paid family vacation to Super Nintendo World in Universal Studios Hollywood, Calif. Additional winners will receive $550 gift cards to the Nintendo eShop. 

The KD x Nintendo collaboration will be rolled out through both a social campaign and in store activation. On social, the campaign will be featured across both Meta and TikTok with paid boosting. In store, the campaign will leverage a variety of wobblers, shelf-talkers and floor displays. 

What Fast food promotion is also on right now and do any of you participate? What is the aim of this particular promotion?

Use the rest of the class time to fix up and/or hand in the Entrepreneurship assignment.

There will be a quiz on the Entrepreneurship section after we finish the last assignment, which will not be on the term 1 report. 

 

THURS OCT 24

 Kid/Teen Entrepreneurs

After watching these videos, what do you think many of these young entrepreneurs have in common? On your own, do some research on a young  Entrepreneur of your choice and be prepared to present your findings to the class next week. You will have time to work on this next week. See outline of assignment below.

 

Young Entrepreneur Presentation in partners:  30 marks

• Note: Do not use Jeff Bezos, Mark Zuckerberg, Evan Speigal...try to find new young companies or people we have not heard much about. 

  
  

In a powerpoint or Canva presentation: which will be presented to the class. Please use bullets and put things in your own words.

Slide #1: the name and photo if possible of your entrepreneur, and as much background info you can find about them.

Slide #2/3: All about their product or company, logos, product photos, how they got started. 

Slide #4: Why or how they started up their company/what problem were they solving. 

Slide #5 : Any other pertinent info.,  How much money does the company make, how many employees, who is their target market, how many years have they been in business.What do they charge for their product. Any problems they have run into while doing business.

Tues/Wed Oct 22/23

Introduction of Gary V Video: Complete questions, you have Tues and Wed to complete for hand in on Thurs. Please type up answers and do not copy other people's info.

Gary V Video Questions 

1. What is a venture capitalist? 

2. How did Gary V get started in business? 

3. What kind of side hustles did Gary V partake in as a kid and how is this similar to Johnny Cupcakes?  How did Gary V launch himself as an entrepreneur? 

5. Why do you think Gary V did not do well in school? 

6. What is your opinion/thoughts around Gary V’s idea that school is built for workers. Do you agree/disagree, explain why you think the way you do. 

7. What is Vayner Media? 

8. What platform shift does Gary V see happening? 

9. Gary V discusses the importance of providing value. Explain what he means by this and how can someone in business apply this advice. 

10. What does the quote, “jab, jab, jab. hook" mean in business? 

11. What is the purpose of the algorithms on Facebook and Instagram? 

12. What is the best piece of advice Gary V ever received? 

13. What industry does Gary V think is dying...do you agree with him.... why or why not. 

14. Comment on the quote, “attention is the asset and the internet owns it,” what is meant by this? 

15. Gary V talks about emotional intelligence, how does this help him run his business? 

 

Watch another Gary V Video on your own and include 3 takeaways from that video regarding business. Make sure you tell me what video you watched.