comm-223-project-this-is-the-group-assignment-that-takes-30-of-the-total-grade-you-are-required (1)

Comm 223 project - This is the group assignment that takes 30% of the total grade, you are required Marketing Management I (Concordia University) Scan to open on Studocu Studocu is not sponsored or endorsed by any college or university Comm 223 project - This is the group assignment that takes 30% of the total grade, you are required Marketing Management I (Concordia University) Scan to open on Studocu Studocu is not sponsored or endorsed by any college or university Downloaded by I hate summers .. (ashakhera96@gmail.com) lOMoARcPSD|18817725

The Cover-Up: A Solution To A Raising Problem John Molson School of Business, Concordia University COMM 223 section H - Introduction to Marketing Shaune Lynch April 17, 2023 Identification of New Product/Service .................................................................................. 2 Description of the product ................................................................................................... 3 Relevance of the Product .................................................................................................... 4 Macro-environmental Impact ................................................................................................ 4 Political ................................................................................................................................ 4 Economic ............................................................................................................................ 5 Demographic ....................................................................................................................... 5 Technology .......................................................................................................................... 5 Cultural ................................................................................................................................ 6 Natural Forces ..................................................................................................................... 6 Segmentation, Targeting, and Positioning .......................................................................... 7 Two Potential Target Market ............................................................................................... 7 Target Market ...................................................................................................................... 9 Value Proposition and Positioning .................................................................................... 10 Secondary Data & Sales Potential ...................................................................................... 10 Potential sales ................................................................................................................... 12 Marketing Mix ........................................................................................................................ 13 1. Product .......................................................................................................................... 13 2. Place/ distribution .......................................................................................................... 14 3. Price .............................................................................................................................. 15 4. Promotion ...................................................................................................................... 15 Reference .............................................................................................................................. 18 Appendix A: Sample page from first source: ............................................................... 22 Appendix B: Sample page for second source ............................................................. 22 Appendix C: Prototype of the Cover-Up ....................................................................... 23 Appendix D: Table of the number of students enrolled in postsecondary institutions inCanada, per province ............................................................................. 23 Downloaded by I hate summers .. (ashakhera96@gmail.com) lOMoARcPSD|18817725

individuals from having their drinks spiked. It will do so by creating a barrier on the cup so that no substance can be dropped into it. Its usage is simple; individuals will buy the reusable product and cover an open drink with it. It will be made of silicone which is durable, flexible and eco-friendly. Relevance of the Product We believe that this product will be successful because it addresses a problem that is unfortunately very present in our society. Too often, people do not feel safe in bars and clubs for fear of being drugged. Our product would answer this need of security by allowing everyone to drink safely. Additionally, the options that are currently available on the market are limited and not environmentally friendly which does not sit well with our target audience, generation Z. This generation is sensitive to the environment and they tend to dislike single use items. Lastly, we plan on having two groups as our target audience, bars and college students. This first group has never been targeted by a similar product before which is a mistake since they could be great resellers and therefore allow us to be first mover in this market. Macro-environmental Impact Political Increased tensions among Canada and China could cause barriers between trade agreements further making it difficult to trade between one another. This issue would pose a threat to our business as our sole supplier is located in China. Moreover, China’s recent civil unrest is a cause for concern as it has been shown to lead to a cease of production capabilities. For example, when Chinese citizens protested against harsh pandemic restrictions, production and distribution both decreased (Cohen, 2022). Furthermore, government subsidies for start-ups could be very helpful to support costs. Downloaded by I hate summers .. (ashakhera96@gmail.com) lOMoARcPSD|18817725

Economic Firstly, the cost of supplies may vary significantly from year to year. The reasons for this may be due to a shortage of labor and demand for the good. Therefore, the cost of silicone may increase at a rate which makes it profitless to sell the Cover-Up. Secondly, low consumer income poses the problem of low demand. Although the product may seem like a necessity to some, on a broader scale, it remains a normal good. That is, when income levels remain low, most will gravitate away from purchasing the product, therefore making it crucial to sign long-term contracts with oversea suppliers so as to not have sudden price increases. Demographic Age, gender and geographic location play an important role in the success and marketing strategies for our product. The large population in Quebec and Ontario give us a great opportunity to delve into a very large target market (UniversityList, n.d). Additionally, these provinces have the largest number of universities and colleges in the country which could potentially help us since they are the demographic that tends to go out the most. Technology Technology plays a critical role in business performance, and it evolves at a rapid rate. We anticipate that production automation will be an innovation that will affect our company. As a start-up business, we run the risk of having larger companies, such as “Alibaba,” steal our design and produce it at a faster rate. Additionally, we believe that social media will have a tremendous impact on our product. Indeed, it will enable us to reach our target demography since 9 in 10 Canadians aged 15 to 34 are on social media ( Canadians’ assessments of social media in their lives , 2021). Studies have shown that the use of these platforms have a positive impact on the performance of businesses ( Ahmad, S. Z., Ahmad, N., & Bakar, A. R. A., 2018 ). Downloaded by I hate summers .. (ashakhera96@gmail.com) lOMoARcPSD|18817725

vulnerable to peer pressure and alcohol consumption. Here are some of the characteristics of our potential target market: Geographic ● Quebec and Ontario ● Urban area or university town Demographic ● Around 20 years old (young and single) ● University students ● Does not have children Psychographic ● Currently developing their idea of self but most likely thinker or innovator from the VALS Framework ● Research product before purchase ● Aware of the risks of spiking ● Environmentally-conscious ● Value their safety Behavioural ● Occasional and loyal ● First time users ● Likes to party or go out with friends to unwind ● Consume energy drinks and use public transport ● Strong online presence (especially social media) ● Benefit: protecting their drink and looking for affordable products The second potential target market for our product could be young travellers. Incidents of drink spiking tends to occur when an individual is travelling abroad alone. The dangers of being in a Downloaded by I hate summers .. (ashakhera96@gmail.com) lOMoARcPSD|18817725

foreign country with diminished capacities cannot be emphasized enough which is why this product could be of interest. Here are some characteristics of our potential target market: Geographic ● Live in an urban area (Montreal, Toronto, etc) Demographic ● Around 18 to 30 years old (young and single) ● University/ College level education ● Does not have children ● White Collar/ Service Sector Psychographic ● Most likely experiencer or striver from the VALS Framework ● Are adventurous ● See themself as highly social ● Environmentally-conscious ● A “I have the rest of my life to make money and I want to spend it on experience” mentality Behavioural ● Act on impulse ● Occasional and loyal ● First time users ● Aware of the risks of spiking ● Benefit: looking to be safe during their adventure 9.1 Downloaded by I hate summers .. (ashakhera96@gmail.com) lOMoARcPSD|18817725

protecting a wide range of cups and glass sizes. Once purchased, each product will come with two Cover-Ups of different sizes; the product can be reused multiple times, making it eco- friendly. Moreover, due to the minimalist, neutral design, our product is suitable for everyone in any type of event, from frosh to formal networking event. Therefore, our positioning statement is: to university students, the Cover-up is an anti-spiking protection which is eco-friendly and can be used for any drinking occasion. Secondary Data & Sales Potential Below are two secondary data sources that can help assess the Cover-Up’s potential market size in Quebec and Ontario: 1. Health Canada - Health Canada is the federal department responsible for helping Canadians maintain and improve their health, and their mandate includes collecting and analyzing health data to inform policy and program development. The “Canadian Postsecondary Education Alcohol and Drug Use Survey ( 2019/2020)” from Health Canada can be used to determine the proportion of post secondary students that consume alcohol on a frequent basis. https://health-infobase.canada.ca/alcohol/cpads/ 2. Statistics Canada - Statistics Canada is the national statistical agency of Canada responsible for producing data and analyses on the country’s economy, population, society, and environment. The “Postsecondary enrolments, by registration status, institution type, status of student in Canada and gender (2022)” from Statistic Canada can be used to determine the number of post secondary students enrolled in Quebec and Ontario. https://www150.statcan.gc.ca/t1/tbl1/en/cv.action? pid=3710001801#timeframe Downloaded by I hate summers .. (ashakhera96@gmail.com) lOMoARcPSD|18817725

Both of these sources are credible and reliable sources of secondary data because they are reputable organizations using rigorous research methodologies. They provide accurate and comprehensive information on our target market's (postsecondary students who drink in Quebec and Ontario) behavior and size, which can be useful in determining the potential market demand and developing marketing strategies that effectively reach and engage with our audience. According to table 1 (see appendix C), the number of students enrolled in postsecondary education was 903,780 in Quebec, and 539,385 in Ontario. These numbers were added together to give us a total of 1,443,165 students who would potentially be interested in our product. 12.1 Potential sales The number of students enrolled in postsecondary institutions in Ontario and Quebec is 1, 443, 165 according to a 2020-2021 report published by Statistics Canada (Government of Canada, Statistics Canada, 2022) . Among this sample size, it is estimated that 40% of students drink alcohol on a frequent basis which leaves 577,266 students in our target market (Public Health Agency of Canada, 2021). It is estimated that among our target market, 432, 950 (75%) individuals will encounter our promotional messages either through our promotional messages or through searching for our product (Scoop.it., 2021). Furthermore, to be conservative, we estimate that among the individuals that will encounter our promotional messages, 4, 329 (1%) individuals will purchase our product. One percent is believed to be the most conservative estimate as a very large proportion of the target market will be hesitant towards purchasing a new product. In addition, we as a group determined that one percent is the best estimate regarding individuals who will purchase our product with the help of the marketing funnel provided by Scoop.it. Per year basis: *Each package comes with 2 units Downloaded by I hate summers .. (ashakhera96@gmail.com) lOMoARcPSD|18817725

been moved. This double protection will allow everyone to enjoy their party safely, and will also be a key feature in order to differentiate the product from its competitors. (see appendix C) This consumer product is of convenience type since it can be purchased on the spot, without having to compare it with other similar products. Since it is made of silicone, the product will be reusable and even washable, but it can be repurchased when necessary. In terms of packaging, the lid would be sold in pairs, in a small recyclable cardboard envelope and in addition to the product, there would be a QR code on the inside that would lead to the Instagram account of Cover-Up where spiking awareness would be raised. This would allow us to more easily reach our customers and develop a community focused on safety and well-being. 2. Place/ distribution The needs of our target market - post-secondary students- are accessibility and reliability. The Cover-Up will seek to distribute its product in university bookstores and on its website. University bookstores will be essential as students are present in those areas. In addition, students frequent the web often, making access to our /platform highly accessible. Our platform is also our official distribution place and the website will include a FAQ section, to make it appear more reliable. Furthermore, the Cover-Up will use an indirect marketing channel. When the product is purchased on the website, the distribution channel is as follows: the Cover-Up receives the products from a wholesaler in China and then we deliver them directly to customers. However, when purchased from a store, instead of going directly to the customer it is first purchased by a university. In addition, the approach the Cover-Up will use regarding its distribution strategy is selective distribution. We believe that selling our product in a niche setting for students will add value to our product as students are frequently present in those areas, Downloaded by I hate summers .. (ashakhera96@gmail.com) lOMoARcPSD|18817725

erasing the obstacle of having to search for the product elsewhere. Moreover, the Cover-Up’s distribution center will be located at one of the founder’s home spaces. 3. Price Our product will be priced at $6.99 per package of two, making it about $3.50 a unit. Seeing as the Cover-Up is a convenience product, its price is relatively inexpensive. Additionally, it requires low involvement since there is little differentiation between this product and others on the market. The Cover-Up’s value proposition is “the same for less”. We offer a bundle deal which makes our product less expensive than competitors. Our pricing strategy is customer value-based pricing. As mentioned, each package contains 2 Cover-up’s. These cover-up’s are two different sizes which allows consumers to use our product on various sizes of cups. This extra feature adds value to our product and differentiates our product from others. This feature may also be convenient to customers who may not have thought or known about needing different sizes. We also intend to use a discount pricing strategy at key moments for the University and College calendar. This will include discounts before spring break and frosh in an effort to increase sales during these times. 4. Promotion We plan on investing 8% of our revenue of our future revenue into promotion (BDC, 2023). Here is our marketing plan: When it comes to advertising, we will primarily use social media platforms such as Instagram and TikTok because it is cost effective and reaches a wide audience (Armstrong et al., 2020). Leveraging social media will be beneficial since as stated earlier, our target demographic tends to have a strong presence on it. We Downloaded by I hate summers .. (ashakhera96@gmail.com) lOMoARcPSD|18817725

product and special offers. Finally, we will use a chatbot on our website and social media will be used to engage with our customers through comments and direct messages. Reference Abboud, E. (2022, March 18). How prevalent is drink-spiking in Montreal? Toxicology tests offer a glimpse. CBC News. https://www.cbc.ca/news/canada/montreal/toxicology-tests-montreal-1.6495956 Ahmad, S. Z., Ahmad, N., & Bakar, A. R. A. (2018). Reflections of entrepreneurs of small and medium-sized enterprises concerning the adoption of social media and its impact on performance outcomes: Evidence from the UAE. Telematics and Informatics , 35 (1), 6-17. Alcohol.org. (2023, Jan 20). Drink Spiking: Symptoms, Risks, and How to Prevent It. https://alcohol.org/guides/spiked/ AliExpress. (n.d.). 1005003812951112. Retrieved April 16, 2023, from https://www.aliexpress.com/item/1005003812951112.html?spm=a2g0o.productlist.main. 3.f10c43777P2uD1&algo_pvid=f596b6d5-6f94-4a4b-8c61-ffd75d32cb3f&algo_exp_id= f596b6d5-6f94-4a4b-8c61-ffd75d32cb3f-1&pdp_ext_f=%7B%22sku_id%22%3A%2212 000027250770451%22%7D&pdp_npi=3%40dis%21CAD%2134.56%2110.04%21%21 %21%21%21%40211bea6216803143407867908d06fe%2112000027250770451%21sea %21CA%210&curPageLogUid=I4jygWxVPR2G American Addiction Center. (2023b, January 20). Spiked Substances . Alcohol.org. https://alcohol.org/guides/spiked/ American Psychological Association. (2016, May 12). Drink spiking a concern for college women [Press release]. https://www.apa.org/news/press/releases/2016/05/drink-spiking Armstrong, Kotler, Trifts, & Buchwitz. (2020). Marketing: An Introduction (Canadian Edition, Vol. 7th). Pearson Canada. Business Development Bank of Canada. (2023, March 28). What is the average marketing budget for a small business? . BDC.ca . Downloaded by I hate summers .. (ashakhera96@gmail.com) lOMoARcPSD|18817725

https://www.bdc.ca/en/articles-tools/marketing-sales-export/marketing/what-average-mar keting-budget-for-small-business#:~:text=A%20common%20rule%20of%20thumb,%E2 %80%94between%205%20and%2010%25 . Cohen, P. (2022, November 28). Chinese Unrest Over Lockdown Upends Global Economic Outlook. The New York Times . https://www.nytimes.com/2022/11/28/business/economy/china-unrest-global-economy.ht ml Drugfree.org. (2017, August 22). Almost 8 Percent of College Students Say They’ve Had Drugs Put in Their Drinks. https://drugfree.org/drug-and-alcohol-news/almost-8-percent-college-students-say-theyve -drugs-put-drinks/ Francis, T., & Hoefel, F. (2018). True Gen’: Generation Z and its implications for companies. McKinsey & Company , 12 . http://www.drthomaswu.com/uicmpaccsmac/Gen%20Z.pdf Government of Canada, Statistics Canada. (2022, November 22). Add/Remove data - Postsecondary enrolments, by registration status, institution type, status of student in Canada and gender . https://www150.statcan.gc.ca/t1/tbl1/en/cv.action?pid=3710001801#timeframe Paddle. (n.d.). The Revenue Formula: How to Calculate Your Business's Total Revenue. Retrieved April 16, 2023, from https://www.paddle.com/resources/revenue-formula/ Postalytics. (2021, May 25). Canada Post Rates 2021: Updated Marketing Mail, Lettermail & Transaction Mail Prices. Retrieved April 16, 2023, from https://www.postalytics.com/blog/canada-post-rates/ PRIZM Segmentation System | Environics Analytics . (n.d.). Default. https://environicsanalytics.com/en-ca/data/segmentation/prizm Public Health Agency of Canada. (2021, May 10). Canadian Alcohol and Drug Use Monitoring Survey (CADUMS): Canadian Profile of Alcohol and Other Drugs (CPADS). Retrieved April 16, 2023, from https://health-infobase.canada.ca/alcohol/cpads/ Downloaded by I hate summers .. (ashakhera96@gmail.com) lOMoARcPSD|18817725

Appendix A: Sample page from first source: https://www.rd.com/list/shark-tank-products-worth-your-money/ Appendix B: Sample page for second source https://www.huffpost.com/entry/products-for-cold-weather-problems_l_61fc3119e4b05004242a4 550 Appendix C: Prototype of the Cover-Up Downloaded by I hate summers .. (ashakhera96@gmail.com) lOMoARcPSD|18817725

Appendix D: Table of the number of students enrolled in postsecondary institutions in Canada, per province. Powered by TCPDF (www.tcpdf.org) Index of comments 9.1 Very good segment descriptons! 12.1 These are both fne sources, but I would have liked to see some more product-specifc sources. 14.1 This looks reasonable, and might actually be TOO conservatve... but it's always beter to underestmate potental interest than to overestmate it! 17.1 You should emphasize that there are TWO aspects to personal selling relevant to your product: presentaton to individual consumers, but also - and perhaps more importantly - presentaton to retail representatves to convince them to stock your product. Downloaded by I hate summers .. (ashakhera96@gmail.com) lOMoARcPSD|18817725