Busn115 Week3 Assignment

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BUSN115_Week3_Assignment Scenario: - To open a Lemonade Stand in your local neighborhood. Its summer time and the most important thing in hot weather is the need to quench your thirst. What is a better drink then a refreshing Lemonade. Since long I was very much interested in opening a lemonade stand, which I finally decided to have it implemented before the summer season starts. After a lot of research and hard work I have come up with a business model that would work efficiently in generating revenue and also help local community. Brand:- The brand name that I came up with is a catchy and trendy word which I think represents the product and justifies the product’s need in hot season. The brand name would be “GO-COOL” Real Lemonade.…show more content…
Pricing Strategy:- Since the Lemonade business depends on lemon and sugar, our company will have to keep an eye on the stock needed and the availability of the two item locally and internationally. Even though the business will be at the peak in summer and will slow down in winter, a close monitoring on the international prices is a must. The future plan of the company is to expand in other continents by giving out franchise. So if it winter in US we generate business revenue from countries like Australia and New Zealand where they would have summer. To keep standard pricing and profit margin for the franchises, a detailed costing would be required. The things that are needed to be considered would be Cost of Lemon, Cost of Sugar, Cost of water, Cost of container, 10% overheads (labor, rent, utilities, etc), 5% franchising fee and 7% profit margin. In addition to this pricing 2% price fluctuation will be added to the cost. With this calculation the company and the franchises should make enough money to survive in the competitive market. Global Market:- Even though the product can be packed in a container and can be sold globally, I would prefer to have local franchises so that we can provide pure and authentic lemonade without preservatives as we promised. Also, opening a franchise will give local people employment, which is also a way to give back to the community. If we stick to the plans and ethics, I think our company has a bright future

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