MATH1078 GRASP Marketing Project (1)-Vatandeep

GRASP: MARKETING MODULE 3 Red River College GROUP = 7

MATH-1078: G.R.A.S.P. Marketing Module 3 Submitted By: Vattanpreet Kaur Salini Negi Franco Lomonaco Aryan Singh Aulakh GOAL: To encourage students to apply learnings to a real-world scenario to illustrate the importance of mathematics in today’s business environment. ROLE: Students will apply the components of merchandising and illustrate the relationships through a channel of distribution. AUDIENCE: All team members and your instructor. Team sizes will be 2-3 members depending on class sizes. Teams will be assigned by your instructor. SITUATION: As consumers, we have difficulty at times trying to understand why some items appear to cost so much. We hear stories about how inexpensive it is to make things, how companies use overseas low-cost labour and then pocket huge profits by selling them to consumers at inflated prices. MATH-1078 Business Mathematics GRASP

 Entire upper silhouette gets its design from the Jordan XI while the "TWO3" script on the tongue and metal lace loops on top are taken from the Jordan XII.  Outsole is a combination of solid and clear rubber, which created performance traction with superior style.  Mid. CANADIAN Regular Product Price: $225.00 Give thought to the project requirements on the next few pages. Pick a product that will be able to provide the necessary information required. NOTE: You MUST get your instructor’s approval on your chosen product BEFORE proceeding beyond this point. No two groups can have similar products. First come, first served. If you proceed past this point without instructor approval, 1) Products similar to other groups (instructor determination) will not be accepted nor be eligible for marks, AND/OR 2) Products that don’t fulfill project requirements will automatically lose marks in various sections. MATH-1078 Business Mathematics GRASP

Distribution: (1 points of each value = 15 points) Using the retail product price above, work backwards to show how the pricing at each of the steps could have been. You must SHOW YOUR WORK in order to be eligible to receive marks. Organization (replace these with actual names if known) Cost ($) Markup ($) MoC% MoS% Price ($) Manufacturer 42.68 33.26 77.93 43.8 $75.94 Wholesaler 75.94 49.38 65.03 39.4 $125.32 Retailer 125.32 99.68 79.54 44.3 $225.00 APA Citations: Provide resources that supports what the costs could be for this type of product. Finding support for EACH channel level is critical for grading your table above. Unsupported numbers will not earn marks. NOTE: You will not find product specific numbers. However, you should be able to draw from financial publications, industry sources, product category, and other statistical sites to find general information about the different channel levels. HINT: In the RRC Library, the Financial Performance Data and MarketLine databases ( https://library.rrc.ca/az.php ) are excellent resources. When citing from these sources, list your search criteria (take a screenshot at the top of your output) as the weblink alone will not work. MATH-1078 Business Mathematics GRASP

MATH-1078 Business Mathematics GRASP

Organizat ion Cost ($) Markup ($) MoC % MoS % ($ Manufact ure S = C + M$ 75.94 = C + 33.26 75.94 – 33.26 = C C = 42.68 MoS% = M$/S x 100 43.8 = M$/75.94 x 100 43.8 x 75.94 = M$100 3,326.172 = M$100 3,326.172/100 = M$ = 33.26172 M$ = 33.26 MoC% = M$/C x 100 33.26/42.68 x 100 = 77.9287723 MoC% = 77.93 43.8 $7 Wholesal er S = C + M$ 125.32 = C + 49.38 125.32 – 49.38 = C C = 75.94 MoS% = M$/S x 100 39.4 = M$/125.32 x 100 39.4 x 125.32 = M$100 4937.608 = M$100 4937.608/100 = M$ = 49.37608 M$ = 49.38 MoC% = M$/C x 100 49.38/75.94 x 100 = 65.0250198 MoC% = 65.03 39.4 $1 Retailer S = C + M$ 225 = C + 99.68 225 – 99.68 = C C = 125.32 MoS% = M$/S x 100 44.3 = M$/225 x 100 44.3 x 225 = M$100 9967.5 = M$100 9967.5/100 = M$ = 99.675 M$ = 99.68 MoC% = M$/C x 100 = 99.68/125.32 x 100 = 79.5403766 MoC% = 79.54 44.3 22 MATH-1078 Business Mathematics GRASP

Seasonal: A seasonal discount is a discount offered to consumers and businesses for purchasing products out of season. It offers to consumers and businesses for purchasing products out of season. At the business level, manufacturers tend to offer seasonal discounts encouraging retailers, wholesalers, or distributors to purchase products before they are in season . It comes under the retailer level. Multiple Discounts: (2 points of each response = 6 points) Utilizing two (2) of the discounts you described above, show how a net cost applying both discounts can be determined for the retailer. Write it in the format of a Business Mathematics question with a detailed answer key. Make sure to show all the steps and follow proper rounding. Question: Canada footlocker retails the Jorden 6 rings shoe at the MSRP of $225.00. Canada footlocker can purchase the Jorden shoes from its supplier and receive a 35% of trade discount along with a 10% quantity discount. What net price does Canada footlocker pay for the Jorden shoe? Answer Key: L = 225, d1 = 35%, d2 = 10% N = L x (1-D1) x (1-D2) N = 225 x (1- 35) x (1-10) N =225 x (1- 0.35) (1- 0.1) N 225 x 0.65 x 0.9 = 131.625 N = 131.63 MATH-1078 Business Mathematics GRASP

What would be the single equivalent discount rate for the question you created? Show all of your work. d1 = 35%, d2 = 10% d = 1 – (1 – d1) x (1 – d2) d = 1- (1-35) x (1-10) d = 1 – (1 – 0.35) x (1 – 0.1) d = 1- 0.65 x 0.9 = 0.415 d = 41.5% MATH-1078 Business Mathematics GRASP

Marketing Price Adjustments: (5 points) Create a profitable marketing promotion for the product that your team has selected. For the final consumer to use , decide on either a manufacturer’s rebate OR a manufacturer’s coupon . Any other type of promotion (retail coupons, sales, etc.) are not eligible for any marks. 1. Explain the promotion. a. Provide the necessary citations supporting the basis for the promotion you created – conduct some research on your chosen product to determine a suitable promotion type, and to estimate appropriate expense amounts. Citations are required to be eligible for marks. 2. Detail/calculate ALL of the relevant expenses involved in the process (show your work). 3. Examining the entire distribution channel (from manufacturer to consumer), explain/calculate for EACH level how the elements of pricing (C, E, P, S) are impacted/changed by this promotion. Use your numbers from earlier in this project. APA Citations: (J.Olivier, 2021, p. 158) (J.Olivier, https://lila1.lyryx.com/textbooks/OLIVIER_1/rrc/2021B/Olivier- BusinessMath-2021B-RRC-Custom-MATH1078.pdf, 2021) MATH-1078 Business Mathematics GRASP

Marketing Price Adjustment Details: What is the Promotion? Promotion that entitles a consumer to receive a certain benefit, most commonly in the form of a price reduction. Like, in Canada footlocker, for every Jorden shoe that is bought during special days such as Black Friday, there is going to be a $15 off CAD discount on regular price through manufacturer coupon. Detail All of the Relevant Expenses: Coupon Redemption Expenses = It is the reduction of the price in dollar amount that the coupon offers, also known as the face value of the coupon. The manufacture must pay this amount ($15CAD) to the reseller and this amount is reduced from the regular price. Handling Coupon Expense = It for the manufacturer is known as a handling fee or handling charge, payable to the retailer. The manufacturer offers financial compensation to the retailer for redeeming the coupon, filling out the paperwork, and submitting it to manufacturer for reimbursement. The amount we chose is $0.10 CAD per coupon. Coupon Marketing Expenses = In this expense Companies must pay for the creation, distribution, and redemption of the coupons. In this case, the amount would be of $150,00 CAD and the company forecasts that 9500 coupons will be redeemed. Explain/calculate the pricing elements for EVERY channel level: The manufacturer issuing the coupon estimates how many coupons it expects consumers will redeem and assigns the average of the coupon marketing costs to each unit based on the forecasted volume. In this process the manufacturer decided to sell Jorden shoe directly to the retailer. Then the product is sold to the consumer under the discount. With the previous information we had used throughout the project, we have calculated the impact of coupon on the product. The unit cost of the shoe along with its normal associated and regular unit selling price are known. The coupon details are… C = $42.68 E = $30.22 S = $75.94 Face Value = $15 MATH-1078 Business Mathematics GRASP