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Marketing Plan AMB240 Marketing,

Planning and Management

Semester 2, 2016

Tutor: Anne Sorensen

Students:

Steven Yule n8601321

Molly Crank n9586636

Thomas Pea n9191372

Hailan Duong n9378961

Due Date: 09/09/2016

AMB240 2016 Assessment 1 Page 1


Table of contents
1. Executive summary
2. The Company
2.1 Mission statement
2.2 Marketing Team
3. Situation analysis
3.1 The market
3.1.1 The market need
3.1.2Pest analysis
3.2 Competition
3.3 SWOT analysis
3.4 Situation Analysis Summary
4. Market segmentation and target marketing
4.1 Market segments
4.2 Target market
4.3 Market size, demand and potential
5. Marketing objectives and metrics
5.1 Objectives and metrics
5.2 Positioning and competitive advantage
6. Marketing mix strategies
6.1 Product strategies
6.2 Price strategies
6.3 Place strategies
6.4 Promotion strategies
7. Budget
8. Implementation Plan
9. Appendix A: Product checklist
Appendix B: Product health and safety license application
Appendix C: Observations of a market
Appendix D: Ingredients of 40% Chocolate Chip Cookies
Appendix E: Ingredients of M&Ms Cookies.
Appendix F: Ingredients of Macadamia Cookies
9 References

1. Executive summary
AMB240 2016 Assessment 1 Page 2
Cookie Beat is a new business entering into the QUTopian market in 2016. Cookie Beat aims
to beat your cravings with their delicious, delightful and decadent treats. These treats come in
the form three types of cookies which are known and loved by the world over which have
been repackaged and reproduced either by themselves, or in a mixed bag magic. The
residents of QUTopia will finally have their regular fix of cookies solved. Cookie Beats
products are 3 different types of cookies, sold in batches of three either as individual flavours
are as a mixture of the three types. The three types chosen are Chocolate chip, M&M, and
macadamia nut cookies. These three were chosen due to their popularity and overall great
taste. The packaging will include the cookies being wrapped in cellophane with it being tied
at the top with twine, with a company label being threaded through. There will also be a label
at the base of the product which will include all information regarding the ingredients made
to create the cookies. Cookie Beat is aiming to target females aged between 18 and 26 who
are categorised as young optimisms according to the Roy Morgan value segments who also
possess to trait of being a sweet tooth. Since Cookie Beat is the only business within
QUTopia which sells cookies, it does not have many direct competitors. But since there is
still many companies which will be selling ready made goods, Cookie Beat still be strategic
in terms of all marketing decisions. The main competitors facing Cookie Beat include; My
Indulgence, The good, the bad and the brownie, and Viking Waffles. This marketing plan will
analyse all of Cookie Beats marketing decisions, as well as their strengths, weaknesses and
strategies which will be utilised to solve any issues. For the two market days, Cookie Beats
stall will look clean and precise with only necessary items being on display. The business
logo and colours will be on display along with a chalk board which will display prices and
any promotional or specials information. The promotional efforts, include promoting our
business via social media, having a loyalty system for return customers as well as signage and
samples which will be distributed on both market days. Cookie Beat has also outlined key
objectives which will help gauge whether the business has been a success in the end, this is
measured by whether the business was profitable or not.
In the end, the objective of Cookie Beat is to distribute a product to the QUTopian market
which satisfies a need and has a result of being profitable, and satisfying to all customers.
2. The company

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2.1 Mission statement
At Cookie Beat, we are determined to beat your cravings with our delicious, delightful
and decadent treats.
2.2 Marketing Team

Thomas Pena: Product Manager Hailan Duong: Distribution


Manager Due to lack of individuals,
Cookie beat shared the
pricing manager duties.

Molly Crank: Promotion Manager


Steven Yule: Marketing Manager

AMB240 2016 Assessment 1 Page 4


3. SITUATION ANALYSIS

3.1 The market

3.1.1 Market Need


Cookie Beat is a food product based company, selling packaged cookies of various
flavours. By doing so Cookie Beat is hoping to beat immediate cravings during the
market days. It is clear that our product is a common chosen food item, however the
demand and need in this market will evidently lead to successful sales during the
market days. Cookie Beat knows that during the market days they will fill the need of
consumers and stall owners with them consuming delicious, delightful and decadent
treat. Cookie Beat strongly believes that our branding and packaging will attract the
eye of many QUTopians.

3.1.2 Macro-environment PEST analysis

Environment Trends/issues Implications for our product


Political/Legal 1. The first challenging issue 1. Due to such challenging
for Cookie Beat was the rules and laws set by
rules introduced by the QUTopia, Cookie Beat
QUTopian Rules. One of decided to repackage already
these rules stated that if made cookies made by two
the food item was different companies.
handmade all the 2. Failure to comply with
ingredients and QUTopia guidelines and The
components must be Food Act 2006 would result
labelled on the product in charges/fines.
and made on a
commercial premises.

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2. The Queensland and 3. As Cookie Beat is
Federal food purchasing already made
handling/labelling laws cookies and repackaging
defines food them, they must ensure that
manufacturing as: they do not exceed $80 per
packaging unpackaged person on the cost of the
food, other an cookies and the cost of the
unprocessed primary packaging items.
produce. 4. Packaging using clear
3. The QUTopian cellophane and twine with a
expenditure laws state that gift tag is essential in Cookie
the expenditure of real $ Beats packaging of their
cannot exceed $80 per cookies.
person.
4. Must make sure every
individual food item is
appropriately packaged
for resale (i.e. individually
wrapped) and correctly
labelled according to food
labelling laws.
Economic 1. With a staggering low
(5.8%) unemployment rate
1. Australian unemployment consumers will have more
rate of 5.8% as of March disposable income and be
2016 and 5.7% in more motivated to consume
February 2016. Cookie Beats products.
2. More disposable income
for consumers
2. Consumers are able to spend
or save income remaining

AMB240 2016 Assessment 1 Page 6


after deduction of taxes.
Social/culture/ 1. Increase of a specific target
demographic market could affect Cookie
Beat.
2. With majority of females in
the QUTopia market place,
1. Target Market Increase
Cookie Beat may consider
2. QUTopia market share
targeting the female
has more females (193)
demographic rather than
than Males (103).
males.
3. Majority of QUTopians
3. The Young Optimists are
are identified as Young
willing to try new things and
Optimists.
experience all that life has to
offer. (Roy Morgan Research
n.d.). Cookie Beat offers a
diverse range of cookies that
will attract this segment.
Technology 1. Social media allows
1. Cookie Beat will use social
businesses to create and
media to ensure a successful
exchange information
marketing campaign.
through platforms such as
2. Cookie Beat also has an
Facebook (95%),
active Facebook Page and
Instagram (31%), Twitter
Instagram Page which can
(19%) and Google (10%).
promote awareness of their
(Sensis,2016)
products before Market Day.
2. Facebook Page/ Instagram

3.2 Competition
When developing a product, it is important to identify competitors in order to effectively
price our product and differentiate our products from theirs. The state of Queensland (2016)

AMB240 2016 Assessment 1 Page 7


mentions how crucial it is to know your competitors. All businesses taking part in
QUTopias market day had to register in order to be part of the Business registration list.
Following these registrations Cookie Beat then selected our competitors.

The good, the


Viking Waffles My Indulgence
bad and the
brownie
Hungry consumer
Who is their target Hungry consumer Hungry consumer
with sweet and
markets with sweet cravings. with sweet cravings.
healthy cravings.
Type of
competitors(direct or Indirect. Direct. Direct.
indirect)
Scandinavian
What is their product? Baked goods. Cupcakes.
waffles.
20-30 depending
15-25 depending on 10-20 depending on
what is their likely on stall location,
stall location, size stall location, size
price? size and
and packaging. and packaging.
packaging.
Distribution will Distribution will be
Distribution will be
What are their likely be done through done through
done through market
distribution strategies? market day since it market day since it
day since it is food.
is food. is food.
Most likely using Through online Through online
How are they likely to social media, in class, materials, in class materials, in class
promote their business? word of mouth and advertisement and advertisements, and
on the day. on the day. on the day.
23(closest stall to
Place 40 27
us)
Potential strengths and Weakness: Viking
weaknesses of waffles are entering a

AMB240 2016 Assessment 1 Page 8


competitors new segment market,
not everyone are
familiar with
scandinavian waffle.
Weakness: They
Strength:Their product have another direct
is original. competitor that are
doing brownies.

3.3 Swot analysis


Conducting a SWOT Analysis to identify a business's internal strengths and weaknesses as
well as its external opportunities and threats is a simple but useful way of achieving success.
(Queensland, 1995-2016). The following is the SWOT analysis for Cookie Beat.

Weaknesses
Strengths
Stall Location near entry points Budget: Spending $500 on market
Product is easy to produce stall
As seen from the Industry Profile, Lack of originality
food services have been Food requirements (vegan, gluten
successful and popular in the past free, lactose intolerant and allergies).
Convenient Product All team members have full-time and
Discounted goods to all part time work which limits team
customers meetings
Enthusiastic and passionate Stall set up and stall creation
marketing team As we are purchasing pre-packaged
High consumer item foods it may become expensive.
Effective sales promotions Product is mainly target at the female
Appealing logo and colour demographic, should not dismiss the
scheme in our branding male demographic as they contribute
to 50% of sales.

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Threats
Opportunities
Use of Social Media to promote Competitors in Food Stalls may offer
product before market day similar or same product.
Product packaging ideas to suit Price of Product: Too high or too
both female and male low.
demographics Two direct competitors offering
Market store design similar products to Cookie Beat
An average of $286.42 per person Consumers may be deterred by the
on market day to spend price

3.4 Situation analysis summary


In such a competitive market completing an analysis for your product is vital. This section
had demonstrated a detailed analysis on what the market would be, what the market needs to
would be, followed up by a PEST analysis which underlines the businesss political,
economic, social and technological aspect of the market. In order to develop a successful
marketing strategy, the direct and indirect competitors had to be identified. In order to be on
top of our sales, Cookie Beat had to identify the strengths and weaknesses of our three
biggest competitors. Lastly, a SWOT analysis was used to identify the Cookie Beats
strengths and weaknesses.

AMB240 2016 Assessment 1 Page 10


4. Market segmentation and target marketing
4.1 Market Segments
1 People with sweet 2 Convenience 3 Frequent cookie
tooth cookie buyers consumers
Notes: 69 females Notes: 37 males with Notes: 3 Older
with 250 income 250 income aged adults aged 27-32
aged between 18-26 between 18-26 with $250 income
The geographical The geographical The geographical
location of the location of the location of the People
Geographic Convenience cookie Frequent cookie with sweet tooth
description buyer segment is consumer segment is segment is located in
located in QUTopia, located in QUTopia, QUTopia, Brisbane,
Brisbane, Australia. Brisbane, Australia. Australia.
The primary The primary The primary
demographics of this demographics of this demographics of
segment are young segment are young segment are older
Demographic
female adults, aged male adults, aged 18- adults aged 27-32
description
18-26 who earns an 26 who earns an who earns an average
average income of average income of income of $250.
$250. $250.
3 basic needs 3 basic needs 1 look at me
2 conventional family 2 look at me 1 basic needs
life 2 real conservatism 1 conventional family
3 conservatism 5 socially aware life
9 socially aware 3 something better
Psychographic
3 traditional family 4 visible achievement All of the consumers
description
life 18 young optimism in this segment are
5 visible achievement equally divided
44 young optimism 18 out of 37 between the Look At
consumers of this Me Segment, Basic
44 out of 69 market segment are in Needs segment, and

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consumers of this the Young Optimism Conventional Family
market segment are in Segment. The second Life Segment as each
the Young Optimism highest amount of of the 3 fall into
Segment. people in this different categories.
particular segment are
Consumers in the in the Socially Aware Those in the Look At
Young optimism Segment. Me segment try to
segment want to try stand out while those
everything, therefore Consumers in the who are in the Basic
they are more likely Socially Aware needs and
to try new things segment usually do Conventional Family
from skiing, rafting, research to gain Life segment are
travelling and trying further knowledge looking to just get by,
new food. This is not before making an and are struggling to
limited to the informed decision. In improve their basic
consumption of saying that, living standards.
cookies. consumers in this
segment are always
Therefore, consumers actively seeking new
in this segment are opportunities to
more willing to further expand their
purchase cookie education and
products from Cookie knowledge.
Beat in order to try
them. Therefore, consumers
in this segment are
more likely to weigh
between the pros and
cons of purchasing an Therefore, consumers
unestablished brand in these segments are
of cookies (to further less likely to spend

AMB240 2016 Assessment 1 Page 12


expand their money on purchasing
knowledge) before items that they dont
making the decision consider to be a
of whether or not they necessity, but will
will purchase the purchase products
product. that are of
convenience which in
this case, are the
cookies.
This segment market This segment market This segment market
are those who are are those who tend to purchase
always craving a consume cookies cookies as a snack, in
sweet snack and are regularly, whether it order to lessen the
constantly looking to be homemade or store hassle of preparing
purchase sweet bought. It is assumed their own snacks, or
Behavioural
products to cure their that they would be baking their own
description
sweet tooth. It is one of the second cookies. It is assumed
assumed that they highest consumer of that they will be the
would be the highest Cookie Beat products. lowest consumers of
consumers of Cookie Cookie Beat products
Beat products. amongst the three
segments

AMB240 2016 Assessment 1 Page 13


4.2 Target market
After analysing the above segmentation table, Cookie Beats selected target market is
segment one. This segment was selected as the primary target market as they are always
craving a treat. The majority of the consumers of this market segment are in the Young
Optimism segment of the Roy Morgans value segments. Consumers in this segment are
willing to try anything and experience all life has to offer. (Roy Morgan Research n.d.). This
segment is targeted at female adults, aged between 18-26 and who earn an average income of
$Q250.

4.3 Market size, demand and potential


From the 2016 QUTopia census data, it was established that the QUTopian Market is made
up by 297 citizens. Cookie Beats chosen market are adult Females, aged between 18 to 26
years which accounts for 185 or 62.3% of the total market. As the majority of sweet tooths
belong to the young optimism segment of the Roy Morgan value segments, this market of
119 citizens or 64.3% of the market potential will be specifically targeted. Cookie Beat is
anticipating the product purchase frequency per person to equal 3.6 as we are expecting each
customer to purchase two of our products at the first market day, and then to have an 80%
returning customer rate for the second market day.

The industry where business is taking place is within the Other Specialised Food Retailing
industry. Within QUTopia, there are 19 other organisations under the same category which
makes estimating market share difficult. In 2014 Cunning Cookies had a similar product to
ours which with previous industry statistics, we used to estimate our own market share. As
seen in the table (No. ??), Cunning Cookies had 4 direct competitors within its market and
had a market share of 15% within the other specialised food retailing segment. Based off of
this, the amount of competitors within our industry, our product, and its pricing, it is
estimated that our market share will be 20%. This is because there are only 6 direct
competitors within this segment where we aim to be industry leaders.

Our product demand forecast is 85.68 units (119 x 3.6 x .20).


Company name Total sales Profitability Average Number of units

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price per sold
unit
Chocolate Wasted $1,260 -84% $9.33 135
Sugar Sticks $2,480 -12.10% $12.98 191
Sweet Street $7,150 65.73% $20.55 348
IceIce Cookie $1,705 -10.50% $30.45 56
Cunning Cookies $1,920 -310% $14.00 130

Size of the total QUTopia market: 297


Market potential (Females aged 18-26) (a): 185
Target Market (young optimism) (b): = ~64%
119
of (a)
Product frequency per person (c): Overall Chocolate Chip Cookie:1.2
return rate = 3.6 M&M Cookie: 0.9
Macadamia Nut Cookie: 0.7
Mixed Bag of Cookies: 0.8
Estimated market share from your research
20%
(d):
Sales projection (units) Chocolate Chip
28.56
Cookie: (b) x (c) x (d) = 119 x 1.2 x 20%
Sales projection (dollars) Chocolate Chip
$714
Cookie: = 28.56 x $25
Sales projection (units) M&M Cookie: (b) x
21.42
(c) x (d) = 119 x 0.9 x 20%
Sales projection (dollars) M&M Cookie:
$535.50
= 21.42 x $25
Sales projection (units) Macadamia Nut
Cookie: (b) x (c) x (d) = 119 x 0.7 x 20% 16.6

Sales projection (dollars) Macadamia Nut


$499.8
Cookie:= 16.6 x $30

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Sales projection (units) Mixed Bag of
19.04
Cookies: (b) x (c) x (d) = 119 x 0.8 x 20%
Sales projection (dollars) Mixed Bag of
$761.60
Cookies: = 19.04 x $40
Total projected sales (dollars) $2,510.90

5 Marketing objectives and metrics


5.1 Objectives and metrics
Cookie Beats goal for this business is to successfully re-package, market and sell cookies to
the QUTopian population. In order to assess whether this was a success or not, objectives
need to be set with metrics to measure whether we reached our goals.

The first two objectives were selected due to the thought that in order for a business to be
successful it must be profitable and must reach its target market to an expected level. After
review of previous QUTopian data, Cunning Cookies was not profitable in a market of 4
direct competitors, whilst still achieving a 15% market share. As Cookie Beat has only 5
direct competitors, our targets for profitability and total sales are reachable. The third and
fourth objectives were selected for measuring success in terms of customer loyalty and a
response to our promotional techniques. These will evaluate the success of our promotional
efforts.

Metrics: How it will be


Objectives Metric How the data will be measured
collected

AMB240 2016 Assessment 1 Page 16


Cost of promotion, Data will be sorted into a
production, distributions profits and loss statement,
and all other costs will be the ending profitability or
Achieve 20% recorded during business loss will determine
Profits
profitability operations. At each success
market day, number of
units sold will be
recorded
After both market days, Number of our sales and
data of all sales within profitability compared
Achieve 20% our industry will be to the number of sales and
Sales
market share collated and published by profitability of other
the QUTopia Bureau of companies in our industry
Statistics will determine success
Loyalty tags will be Number of tags Redeemed
attached to each product MD2/Number tags handed
sold during market day 1. out (sales MD1)
Achieve 80% Customer
When these are returned e.g. 10/20 = 50% loyalty
loyalty loyalty
in market day 2, they will
be counted and the
percentage calculates
Record number of This collected data will be
Achieve 40% of
Effectiveness of customers who heard of sorted and compared to
customers from
promotional our product via our the sales who didn't
promotional
techniques promotional techniques purchase due to
efforts
promotional efforts

Market Day 1:

Sales Profit
Chocolate Chip Cookie 16 $400.00

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M&M Cookie 13 $325.00
Macadamia Nut Cookie 9 $270.00
Mixed bag 11 $440.00

Market Day 2:

Sales Profit
Chocolate Chip Cookie 13 $325.00
M&M Cookie 10 $250.00
Macadamia Nut Cookie 8 $240.00
Mixed bag 8 $360.00

5.3 Positioning and competitive advantage


Cookie Beat has positioned themselves as the cookie brand that will beat your immediate
cookie cravings with our delicious, delightful and decadent treats. Those within our target
market are always looking for a cure for their sweet tooth. We have advertised our brand as the
go-to cookie brand, which is one of the key purchasing motivators. Our positioning statement is
as follows:
To Cookie lovers,
Cookie Beat is the brand of delicious and delightful ready-to-eat decadent treats that is sure to
satisfy your cookie cravings. We provide easily accessible treats that are sure to satisfy your
cookie cravings, even for those who are on the go.

The brand personality is energetic and passionate. Cookie Beat offers delicious, pre-packaged
cookies of various flavours that come in ready to go packages at a very affordable price
which is sure to beat our competitors.
6 Marketing mix strategies
6.1 Product strategies
Cookie beat is aiming to provide the consumer a wide range of different flavoured cookies.
Due to heavy food preparation restrictions, Cookie Beat decided on repackaging and
rebranding pre-made Cookies instead. The cookies chosen are chocolate chip, M&M and

AMB240 2016 Assessment 1 Page 18


macadamia nut cookies. These products will be distributed on market day using cellophane
and a ribbon to close the packaged with our brand positioned foremost on a tag. The company
will supply 3 cookies per unit in 4 different ways, as either individual types or as a mixed
pack. The development of this product involved intense brainstorming and discussion in co-
working environments. As a group we elected to brain storm our ideas. One of the methods
utilised was the nominal group technique, as we came up with individual ideas and voted for
the best one's in class. (Deip, These, Motiwalla & Seshardi, 1977). This brings me to the
second technique which was individual brainstorming (Bass, 1998). This was due to the fact
that a lot of our ideas came from compilations of individual brainstorming. The development
of our logo was also a crucial step towards the development of Cookies Beats business. This
in fact involved using group passing techniques (Innosutra,2007. P10).
Evolution of logo:

Cookie beat's final logo. 1

Ingredient/Supplies Sources/Suppliers
Chocolate chip cookie Coles
M&Ms Cookie M&Ms via Coles
Macadamia Cookie Coles
Cellophane Coles

AMB240 2016 Assessment 1 Page 19


Ribbon The Reject Shop

6.2 Pricing strategies


Even though QUTopia is a small, highly competitive marketplace, price sensitivity is low due
to the fact that Cookie Beats products are relatively unique within the market. The business
profiles indicate that no other business is selling the same product as ours, and there is limited
direct competition. Due to this, the pricing strategy that will be used will be price skimming.
Price skimming involves charging a high initial price, which is subsequently lowered (Dean
1976).This strategy is also known to work well for products where the business has a
competitive advantage and protection over its competition (Kotler and Armstrong 2012, p.
314)

This strategy will work well for Cookie Beat since the business has a competitive advantage
and theres a lack of direct competition in the market. Based on this, consumers will be
charged $Q25 for the chocolate chip cookies, $Q25 for the M&M cookies, $Q30 for the
macadamia nut cookies, and $Q40 for the mixed bag of cookies. These prices may change
though between the two market days due to our marketing strategies and the demand of the
product. These prices were determined by analysing and comparing previous QUTopian
results of products similar to ours, whilst also taking into regard what differentiates our
product from the ones in our market.

Break-Even Analysis
With the pricing strategy decided, and price of the products set, Cookie Beat, will break
even at 66 units as shown below.

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6.3 Placement strategies
In order to gain maximum exposure, the business stall was strategically picked. Stall number
17 has maximum exposure in comparison to other stalls around it. During the real world
market observation, it was evident that stalls at the start and end of the busy pathway had
higher stall traffic as opposed to the stalls around them as the number of those who stopped to
view their products were higher than those them.

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FEATURES COMMENTS
Cookie Beats stall is stall number 17 which is a corner, non-
powered stall situated diagonally across from the Z-block caf.
Location
It is directly across from the library entrance, and along the main
S to C block walkway path.
The main source of lighting for the stall will be provided by
Lighting
QUTopia. As the stall will be located inside, the amount of
natural lighting available is limited.
Due to the business stall being on the corner the stall only has
one neighbouring business directly next to it which is stall
number 16. Stall 16 is owned by Natures Grasp, a business that
Potential neighbours
sells various holders. Directly behind our stall, is stall number
24 which is owned by Bed Head, a stall that sells sleepwear for
women. None of these neighbouring stores are of direct
competition to our business.
The location of the stall is predicted to be of high traffic
exposure due to the location of the stall being directly across the
library walkway entrance, along the main S to C block pathway,
and along the markets main middle pathway. This allows higher
stall traffic, which can result in higher product sales.

Traffic Flow

Floor coverings The floor coverings of our stall will be the pre-existing floor

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tiles provided by QUTopia. No other necessary floor coverings
are required.
As our stall is located in the middle, we do not have access to a
Access to a wall wall. We will be creating our own wall out of a stand, and
draping fabric through it which we can use to hang our logo and
various other items on.
We will be creating a wall out of a stand, which will also act as
Posts our stall posts. This will be used to divide us from our
neighbours, as well as attract attention with our bright colours
and flowy fabric.
It is predicted that the market place would be loud, therefore we
Sound
have decided not to have any music or sound effects playing
during our market day.
There are not many impediments in regards to our stall location
Impediments as we are in the middle of the main entry points and walkways.
One of the key impediments is that we are relatively close to the
two cafes, as well as far away from the S and C block entrances.

6.4 Promotion Strategies


Cookie Beat aims to promote through both traditional and modern advertising channels. The
table on the following page describes how each communication element will be utilised on
the QUTopian market day to ensure all promotional tactics are met. Through creating a
Facebook page for Cookie Beat, it enables us to promote our product and create full
awareness to consumers about our product and what we offer. Through our sales promotion,
we will attract customers to like our page and receive a discount on our product. Along with
this, more customers will be attracted via word of mouth which will result in an increase in
our total number of sales.

Our Promotional objectives include, creating awareness and knowledge through advertising
on our Facebook page, Instagram page and uniforms. Creating Relationships through social

AMB240 2016 Assessment 1 Page 23


media and distributing samples on the market day has the potential to increase our sales
output.

Communications Mix

COMMUNICATIONS
KEY MIX ELEMENT (e.g PROMOTIONAL TACTICS
MESSAGE advertising, interactive,
PR, direct sales, social
media etc)

Awareness of the brand and


product. Customers are able to
read all about our business on our
Interactive Facebook page, they can see what
our product is, what our business
About the Social Media: Facebook
is about and where we are located
business and Page
on Market Day. Customers can be
product
updated with special offers and
promotions on our Facebook page.

Through advertisements on our


Facebook and the Official
QUTopian page we have agreed to
Social Media, Interactive give customers $Q5 off the
original price if they can show that
they have supported our business
Facebook via liking our business page on
Page Facebook.
Customers can also be updated
with special offers and promotions
via our social media outlets.

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We have created an Instagram
page in which we are able to
advertise our business through
Instagram Social Media, Interactive creative photos. We have agreed
to create a promotional strategy in
Page which once we receive 50
followers we will give away 5
bags of our cookies. These will be
wrapped in a vibrant gold colour
to emphasise the winning aspect.

Customers receive a card attached


to our product when purchasing
on the first market day, if they

Loyalty Advertising/Direct Sales bring it back to us on the second

Card market day they will receive 50%


their second purchase. This means
that we have a chance of gaining a
larger return rate.
Roaming sales will increase the
word of mouth by approaching
customers and directing them to

Samples Consumer Promotions/ our stall. One team member will


Roaming Sales/Personal walk around with a plate of our
Selling different flavoured cookies that
potential customers can taste,
in the hope that they like the
cookies and will visit our stall to
purchase a pack.
By using a chalk board we can
update prices throughout the day.
This gives us the flexibility to

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Advertising/ Directive meet the market, and create
Sales interest and demand through the
Signage/Pos
use of flash sales where we can
ters
discount the product for short
periods of time.
Our Marketing Team will wear a
Advertising white shirt with our logo printed
Uniforms
on the shirt and black jeans. When
walking around at market day our
uniforms will catch the eye of
prospective customers.

Appeals and Messages- Nostalgia, Happiness, Comfort


We intend to utilize messages and appeals that will communicate to and connect with
consumers to increase the attractiveness of our product.
Nostalgia - known, enjoyed flavours of cookies
Happiness - Cookies are yummy and make people happy
Comfort - having a glass of milk with a cookie - relaxing. People find eating cookies and
drinking milk a comfort activity.

7. Budget
($AUD) ($Q) Sub- Total
Real QUTopia Total
Currency Currency
01. Estimated Income
02. Turnover (total sales) $2,510.90 $2,510.90

03. Cost of Sale (production)


04. Materials (product costs and $67.00

AMB240 2016 Assessment 1 Page 26


packaging
05. Wages 1,300
06. Total Cost (4+5) 1,367.00

07. Gross Profit (2-6) $1,143.90

08. Distribution
09. Stall Cost $500
10. Delivery Cost

11. Total Cost (9+10) $500

12. Expenses
13. Lecture Promotion
14. Market Research
15. Cost of Stall Materials and $50
Decorations
16. Cost of Uniforms $30
17. Total Expenses $80.00

18. Net Profit Before Tax (7-11-17) $563.90

Anticipated profitability (%) 22.46

AMB240 2016 Assessment 1 Page 27


8 Implementation plan
Pre-Market Day

Action Team member responsible Deadline


Preparing the
product(cookies and Everyone. October 8.
packaging)
Stall preparation Steven and Hailan. October 8.
Uniforms preparation Thomas October 8.
Purchase of product Everyone. October 5.
Promotion of product Molly October 8.

At Market Day 1

Action Team member responsible Deadline


Bringing the product to
All members 7:55am
QUT.
8:00am - 9:00am
Finalise stall construction Steven and Hailan

Decorating stall Thomas and Molly 8:55am - 9:20am


Displaying product Thomas 8:55am 9:25am
On day promotion Molly(with everyones help) During market days
Steven(with everyones
Financial organiser 9:20 am- 10:30am
help)

AMB240 2016 Assessment 1 Page 28


Post-Market day 1/Pre-Market Day 2

Action Team member responsible Deadline


Clean up Everyones 11:00am (Oct 8)
Money counting Steven 11:25am (Oct 8)
Stocking all remaining
Thomas 11:25am (Oct 8)
product
Survey for opinion Molly October 14
Stall enhancement Steven and Hailan 9:20am(Oct 15)
Promotion preparation Molly 9:20am(Oct 15)
Product preparation Thomas 9:30am(Oct 15)
Price adjustment Steven and Molly October 15

Market Day 2

Action Team member responsible Deadline


Bringing the product to
All members 7:55am
QUT.
8:00am - 9:00am
Finalise stall construction Steven and Hailan

Decorating stall Thomas and Molly 8:55am - 9:20am


Displaying product Thomas 8:55am 9:25am
Molly (with everyones
On day promotion During market days
help)
Price adjustment Molly and Steven. During market days.
Steven (with everyones
Financial organiser 9:20 am- 10:30am
help)

Post-Market Day 2

AMB240 2016 Assessment 1 Page 29


Action Team member responsible Deadline
Final financial calculation Steven October 15
Product statistics Thomas, Steven, Molly October 15
Survey for opinions Molly October 22

Appendix A: Product checklist

Item Detail Your Response


http://www.brisbane.qld.gov.au/laws- No Cookie Beat will
permits/laws-permits-businesses/food- be repackaging
Is a food license
business-licences/starting-new-food- already made
required?
business/market-food-stall cookies.
If you have a food, Cookie Beat will be using gift tags with
beverage, candle, or their logo and stickers that will list all
skin care product. ingredients on the bottom of the
Does your product product.
Yes
have all ingredients
listed on a label
attached to the
product?
40% Ultimate Chocolate Chip
Cookies (Refer to Appendix D)
What are the
ingredients/componen Ingredients: Choclate Chips (40%)

ts of your product? (Sugar, Cocoa Mass, Cocoa Powder,


Cocoa Butter, Emulsifiers Yes
No hazardous
materials are to be (Soy Lecithin 476), Natural Flavours,

used e.g. gel candles. Milk Solids), Wheat Flour, Sugar,


Butter (14%) (Milk, Salt), Desiccated
Coconut, Whole Egg Powder, Whey

AMB240 2016 Assessment 1 Page 30


Powder, Salt, Natural Flavour, Raising
Agents (500,503). Cocoa Solids 51%.

Allergy Advice
CONTAINS GLUTEN, EGG, MILK,
AND SOY. MAY BE PRESENT:
TREE NUTS, SESAME AND
PEANUTS.

M&Ms Cookies (Refer to Appendix


E)

Cottage Macadamia Cookies (Refer to


Appendix F)
Ingredients: Wheat Flour, Sugar,
Butter (Milk, Salt), Vegetable Fats and
Oils [Antioxidant (307)], Macadamia
Nuts (5%), Natural Flavour (Contains
Milk and Soy), Salt, Raising Agents
(503, 500).
Allergen: May Be Present Egg, May Be
Present Peanuts, Contains Milk, May
Be Present Sesame, Contains Wheat,
Contains Soy, Contains Macadamia
Nuts, Contains Nuts, May Be Present
Tree Nuts
Contains: Wheat, Milk, Soy and
Macadamia Nuts. Macadamia Cookies
Allergy Advice List the safety issues
All products require a May Be Present Egg, May Be Present with your product
safety label. Some Peanuts, Contains Milk, May Be that you found in

AMB240 2016 Assessment 1 Page 31


items such as recycled Present Sesame, Contains Wheat, your google search.
clothes already have Contains Soy, Soy Beans, Contains
this, if your product Macadamia Nuts, Contains Nuts, May
Please state the
does not have this you Be Present Tree Nuts.
words that you will
must include this.
include in a safety
Choking Hazards
label on your
packaging.
Must NOT exceed 1.5m x 1.5m in
width and depth Height: 2.5m
What are the Width: 1.5m
dimensions of your Depth: 1.5m
stall?
If so please state the equipment you will No, we will not be
Will you be using be using. Please note that you cannot using electricity in
electricity in your overload the power switches with lots of our stall as we are
stall? power boards. located on a non-
powered site.
Examples are:
Are there any stall Boiling water/kettles
features that require Eskys (water condensation
No
safety or mess on floor)
precautions? Spillages
Power cords that require
taping down or hiding behind
stall

Appendix B: Product health and safety license application

Item Your Answer

1. For QUTopia, any product Yes. The product ingredient label will list the product

AMB240 2016 Assessment 1 Page 32


that touches the body or is ingredients, as well as ingredients that may have come
ingested requires a product into contact with the product such as nuts or dairy.
label listing ingredients.
The labelling for the Chocolate Chip cookies will state:
Does your product
labelling comply with
Allergy Advice
Queensland food labelling
CONTAINS GLUTEN, EGG, MILK, AND SOY. MAY
requirements?
BE PRESENT: TREE NUTS, SESAME AND
PEANUTS.

Ingredients: Choclate Chips (40%) (Sugar, Cocoa Mass,


Cocoa Powder, Cocoa Butter, Emulsifiers (Soy Lecithin
476), Natural Flavours, Milk Solids), Wheat Flour,
Sugar, Butter (14%) (Milk, Salt), Desiccated Coconut,
Whole Egg Powder, Whey Powder, Salt, Natural
Flavour, Raising Agents (500,503). Cocoa Solids 51%.

The labelling for the Macadamia cookies will state:

Allergy Advice
CONTAINS GLUTEN, EGG, NUTS, MILK, AND
SOY. MAY BE PRESENT: TREE NUTS, SESAME
AND PEANUTS.
Ingredients: Wheat Flour, Sugar, Butter (Milk, Salt),
Vegetable Fats and Oils [Antioxidant (307)], Macadamia
Nuts (5%), Natural Flavour (Contains Milk and Soy),
Salt, Raising Agents (503, 500).

The labelling for the M&M cookies will state:


Allergy Advice
CONTAINS GLUTEN, EGG, NUTS, MILK, AND
SOY. MAY BE PRESENT: TREE NUTS, SESAME
AND PEANUTS.

AMB240 2016 Assessment 1 Page 33


Ingredients: Wheat, Flour, Sugar, M&Ms, Chocolate,
Cocoa Butter, Lactose, Vegetable Fat, Milk Fat,
Vegetable Emulsifier (322 From Soy), Salt, Flavouring,
Sugar, Wheat Starch, Wheat Glucose Syrup, Colours
(171, 102, 110, 133), Vegetable Gum (414), Thickener
(1400 From Tapioca), Glazing Agent (903), Shortening
Blend (Canola, Palm), Unsalted Butter, Egg, Salt,
Raising Agents (500, 450), Flavouring, Cocoa Solids,
Milk Solids.

Food items only: During the repackaging of the product, all team members
who comes into contact with the product will be required
2. Does your product comply
with food handling to wear gloves upon handling the cookies.
procedures including
gloves if touching
unpackaged foods such as
fruit for smoothies, hot
dogs or cakes/biscuits?

Food items only:


The cookies do not require preparation in a license
3. What is the source of your
food? If you are buying kitchen as it is a premade, and pre-packaged product that
items such as ice-cream,
is readily available at the supermarket. The product will
confectionary that does not
require require preparation be purchased from Coles.
in a licensed kitchen,
please state the retailer
where you are buying this
and in what form you are
AMB240 2016 Assessment 1 Page 34
buying it (e.g. frozen
yogurt in 2l tub).

4. If your food is being


prepared you must use a
licensed kitchen. This
includes items such as
sandwiches, cakes,
dumplings, brownies. Who
is the provider of your
prepared foods?

All items
The product will be hygienically pre-packaged prior to
How are you transporting the
the market day in their individual packs for ease of
food, beverage, candle or items
transportation, before having the items transported via
that may touch the skin to
private vehicle in a box. No refrigeration is required.
marketday?

Is refrigeration or heating
required for storage during
transport or at marketday? If so
please state the details.

OFFICE USE ONLY

License approved: ______________________________


Tutor signature and date

AMB240 2016 Assessment 1 Page 35


Appendix C: Market visit

Location of market: Kuraby train station


Time, day and date visited: 9am, Sunday 18th August 2016
Team members present: Hailan Duong

Observations - Busy Stalls


After spending quite some time at the market, it was evident that the busiest stalls at the
market consisted of edible products as opposed to the stalls that were selling inedible
products such as homemade jewellery and art. The most common customers found at the
busy stalls consisted of adults of various genders and ethnicities. Many of these food
stalls offered competitive pricing, which attracted customers. The stall owners also
enthusiastically offered product samples to passing customers. The busy stalls handled
their long queues quite efficiently. They did this by having multiple workers doing
different tasks at the registers which resulted in the lines moving quite quickly. The busier
stalls are satisfying the psychological consumer need of food and water.

Observations Non-busy Stalls


The non-busy stalls at the market sold various non-edible products such as hand made
products, fashion products and second hand products. Many of the less busy stalls had
disengaging workers. The stall workers/owners did not make the effort to chat to
customers walking by, or even attempt to make any eye contact. Many of those working
the less busy stalls were mainly on their mobile phones. Aside from the disengaging
workers, the less busy stalls do not offer products that consumers need, such as food or
beverages so the consumer need for those products were not as high as the edible
products. In order to improve sales, owners/workers of the stalls should engage more with
customers, or customers who are just walking by.

Appendix D- Ingredients of 40% Chocolate Chip Cookies

AMB240 2016 Assessment 1 Page 36


Appendix E: Ingredients of M&Ms Cookies

AMB240 2016 Assessment 1 Page 37


Appendix F- Ingredients of Macadamia Cookies

AMB240 2016 Assessment 1 Page 38


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