Business practice and entrepreneurship 6 busi 2010

Business Practice and Entrepreneurship BUSI 2010

Presentation 6

Current Business Model

Caravan

Physical Channel-Samples Web

50% of the responses positive

Experiments to test getting customers and the pass/fail range 

Physical Channel – Samples/Get contact info/Give business info-call card, Word of mouth, Target Business’s

Web- Blog, Twitter, Facebook, Emails, Instagram

Web- Mobile App

Get

Are you tired and hungry, but hate the long lines?

Download the application “Sandwich Delight” or call us and we will get it straight to you.

Don’t stop to think Try it !!!!Also visit our caravans at a location near you You’ll be delighted by our tasty, affordable

and healthy subs.

Giving extra Loyalty Card- buy 5 get one free Discounts Sale on evenings

Via web Contests to engage the customer

Keep

Additional Products Upselling Complementary Products Referrals from present customers

Grow

Campaign Budget

Tactic Target Persons

Criteria

Pass/Fail Cost

Sample 10 Inquiry/Sale

5 $107

Call Card 10 Sale 5 $10

Web 5 Sale 3 (local) 0

Goals ValuesA. Sales 7B. Inquires 5

C.10% Inquires convert to sales (10%*B) 1

Total Sales ( Customers – A + C ) 57 Total Prospects (B – C) 4

Estimated Customer Cost Customer Acquisition CostCampaign cost/ customer $117/10=$1.17

Cost per target personCampaign cost/Total Target Person $117/25=$4.68

After sampling our sandwiches, at least 90% would be potential customers

Advertising via free services will be as effective as a paid service

Advertising via the world wide web will target greater amount of customers

Customers would be excited to buy and tell others.

Hypothesis: Here’s what we thought

Samples (5) Get customer contact info: cell and email Offer our contact info. Asked how much they would pay Asked if they would recommend to tell

others

Advertise via Blog

Experiments: So here’s what we did 

PRICE RANGE $15.00 $18.00 $20.00 $20.00 $25.00

Results

Based on the calculation only 1 person of the inquires will be customers

Three out of five people were interested in giving out there contact info.

Four out of the five people has access to internet to view our web advertising.

All were satisfied with the taste and were willing to tell others

The blog was viewed mainly by non nationals who aren’t our target customers

The cost of the samples $117 can cater for a min of 10 people

Results: So here’s what we found 

We are going to introduce more advertising techniques which does not include the world wide web

Use the world wide web in a more efficient way which will target local customers

Iterate: So here’s what we are going to do next 

END