Our second marketing tactic is an advertisement through which we hope to appeal to our diverse demographics. We will accomplish this through the creation of a QR code, which will help better find our restaurant in a busy airport. This QR code can be scanned from anywhere in the airport by anyone with a QR code reader and can be used to transport them straight to the restaurant. It works just like a GPS but the destination is already set for you. Most people spend a lot of time on their phone so this marketing tactic could potentially appeal to many of them. It will become popular because of it being so convenient, which many people look for in the airport. Considering when you buy a cell phone most of them already have some type QR code reader, …show more content…
This cost comes the fee of making the website which is $119 per year. We must also take into consideration the cost of airport advertisement and other costs associated with running the restaurant which up to about $8,000 per month. When you multiply the monthly advertising cost by 12 you will have a yearly cost of approximately $96,000. According to numbers found when conducting an experiment to test effectiveness of online advertisements, 3/10 people say they are influenced by them. By looking at Hartsfield-Jackson airport we found that there are about 125,000 people that pass through each terminal on a daily basis. When you apply the statistic saying that 3/10 people will pay attention to this advertisement, you will have a total of 37,500 potential customers. While this is the maximum potential demographic, if only one percent of the people use the statistic and come to Stix, we will still have 375 customers to serve daily. We take one percent to show that in some of the worst circumstances Stix will still be able to make a profit. Assuming that each customer buys at least one menu item at the average price of $3.99, you will make initial revenue of $1,496.25. If you multiply this by 365 you will have yearly revenue of about $546,131.25. When you subtract your yearly expenses you will have a profit of approximately
Since the transaction fee revenue stream is based on 2% of sales dollars capped at $200 we can see that sales over $10,000 would not produce any value added for TechMall ($200/2% = $10,000). Because of this condition, and since we were not provided with specific amounts for each transaction conducted, we have to simply assume that customers would not spend in excess of $10,000 on an online tech store such as TechMall.com. This assumption is strengthened when we calculate that the year 4 average transaction amount is just $58.53, which was calculated by dividing the total transaction dollars, $87,470,566 by total number of transactions, 1,494,547 ($87,470,566 / 1,494,547 = $58.526). By taking the position that every sale was less than $10,000 we
70 people), with each seat generating a net revenue (revenues minus costs of operation) of $35. Aggregate
There would be initial cost tied to building the needed space and working to make sure that it’s accessible to all staff as appropriate. The size of what’s needed would vary store to store so there would need to be time spent researching volume trends for the locations.
Monthly 50% Monthly Rooms $2,956,500 $2,217,375 $1,478,250 Leases $180,000 $135,000 $90,000 TOTAL REVENUE $3,136,500 $2,352,375 $1,568,250 Expences TOTAL VARIABLE COSTS $454,000 $340,500 $227,000 TOTAL FIXED COSTS $1,403,000 $1,403,001 $1,403,002 TOTAL EXPENSE BEFORE IT $1,857,000 $1,743,501 $1,630,002 EBIT
Also, teething problems with marketing, operations etc might not lead to optimum sales. Therefore, we will project only 60% of this figure as first year sales and use the estimated figure as the sales figure for Year 2. Over the planning period, starting from Year 2 onwards, sales are expected to grow at a rate of 3.9% every year, in line with industry estimates of the average growth of the restaurant industry in the US (Source: Mintel International, cited in section 6.0).
4.1.3 How can an E-Business strategy help The Broadway Café attract customers and increase sales?
Is there a way to estimate the cost of services and product to customers such that Stuart’s Branded Foods can be competitive in their market? Use the illustrations of the two customers to demonstrate your approach. What would be the selling price per kit or per cup for each customer?
No.of employees * 10% of gross sales = Cost of set up & ongoing communication + No. of employees * (Employee Base Salary + 5% of gross sales)
And the maximum payoff (as per [3] above) for serving 50 customers will be (150 – 100) x 50= $2500.
In order to calculate contribution margin per customer, I used the worst case-scenario provided by the market research firm assuming 30% of the 20,000 person market segment would visit the café 2 times per year. Furthermore, that 40% of these customers would use the internet and all of the customers would buy food and drinks.
net sales: $1,000,000 cost of goods sold: $700,000 rent: $20,000 wages: $100,000 other operating expenses: $50,000 net sales – all operating expenses = 530,000
“The Global Media Group viewed Coca-Cola’s Flaschenpost campaign in Europe as an example of the potential of mobile marketing”. Customers can receive unique codes imprinted on the Coca-Cola boxes, cans and bottles when they buy the products, and then they use the codes to download free mobile content. As a direct result of this campaign, “more than six million free wallpapers and ringtones were downloaded to mobile phones”.
Cause: never owned restaurant before, budget, must factor in: time of preparation, time of labor, amount of dishes sold, different profit by type of dinner
Consumer behavior is closely connected with the interactive market as well as products and services. (Peter, Olson, 2010) This report is aim to develop the KFC restaurant in Norwich strategically by analyzing the consumer behavior and interactive markets. Kentucky Fried Chicken (KFC) is a global fast food brand from America which is popular for its fried chicken. (Bell, Shelman, 2011) The quantities of KFC stores increased rapidly all over the world and there is large potential to gain profit and expand the market share among fast food restaurants. (Yum Brand Annual Report, 2015) To develop the brand, it is necessary to enlarge the
We have to spend a substantial amount in developing our customers’ base. For example, we will print fliers and this will cost the business an estimated sum of $2000 dollars. These fliers can be distributed to 10,000 customers, meaning that each customer will absorb $0.2. In addition to this cost, we need to spend some money for transportation as we get these fliers around. This can be estimated as $500. This entire process will definitely takes us around two weeks to complete it. A success in this process will put the business in a very good