Team 8.4Megan Romanowski

Ryan AndersonSteven OwensChris Angell

Lauren Peters

Bull’s Eye Marketers

Product ConceptHere, Everyone has a Blast!

Description: H-E-B Blast is an interactive

and supervised children’s play area that provides fun and care for children while parents shop efficiently

Key Features: Supervised care Multi-dimensional activity zone Safe , plexi-glass enclosed

area located in the upper right hand region built in either an existing or new store

Security assurance system

Benefits: Free service Easy, less stress, and more

efficient shopping experience

Enjoyable for both parents and kids

The H-E-Big IdeaA great idea

providing: Increased profits Friendly, neighborhood

atmosphere First of its kind to

appear in a grocery store

Stress free shopping Customer Loyalty Time management Markets to most

segments of adults Shopping made fun,

easier Larger store

The Risks and obstacles…

The cost of the implementation

Leaving children under other’s supervision

Overcrowding of play area

Design process of adding the play area

Benefits not outweighing the costs

H-E-B SWOT

SFocus is on customer relationships and creating customer value, knows Texans especially; offers competitive prices

W Not operating on a national/international level; doesn’t have the wholesale and bulk goods’ prices

OHome cooking is more economical than eating out; start-up costs are low now with cheaper real estate and interest rates; expansion is ideal

TRecession forces lower prices leading to lower margins; cheapest price holds the most draw for customersProject SWOT Advantage

Building emotional relationships to hold onto current customers

Providing target market a catered, beneficial service

Taking advantage of inexpensive capital costs

Competitive AnalysisResearch on Competition: Currently the H-E-Blast concept stands alone against its

top competitors (Wal-mart, Target, etc.) Wal-mart and Target use other methods such as in-store

restaurants and video game stations to draw in families with children

Successful Play Area Implementation: IKEA McDonald’s Chick-fil-a Gold’s Gym

Target MarketBasis for Segmentation:

Demographic and PsychographicFamily Life Cycle Segmentation and Motives,

Personality, and Lifestyles

Profile of the Target Customer:Mothers (married or unmarried)Several childrenStay at home mom or Sole providerLooking for experiences

Size of the Market:1,863,600 H-E-B Male & Female Customers (ages 18-65) in

Texas with children PER WEEK

Competitive Analysis

Sole Customer

Sole Customer

EntertainmentEntertainment

ChoreChore

FamilyFamily

H-E-B

Wal-mart

Perceptual Map

Shopping is now FUN!

Advertising & Promotion

Shopping is now Peaceful!

Promotion PlanJan Fe

bMar

Apr May

Jun Jul Aug Sep

Oct Nov

Dec

Launch

TV x x x x x x

Radio x x x x x x x

Internet X X X X X X X X X X X X

Posters

X X X X X X X X X X X X

H-E-B Blast

Estimated Start up Costs

Cost of H-E-B building $6,750,000

Cost of H-E-B Blast $211,800

Cost of second story structure

$118,000

Interior designs cost $1,300

Elevator cost $50,000

Indoor playground $25,000

Electronics $10,000

Security system $5,000

Miscellaneous activity expenditures

$2,500

Total: $6,961,800**these figures are estimated at a maximum value

Marketing Budget & Break Even Analysis

Advertising Campaigns Pricing

Radio Advertisements (2) $50,000

TV Commercial $110,000

Print Advertisements (mail outs, coupons, etc)

$10,000

In store posters $5,000

Internet Advertising (side ads) $1,000

Total $176,000

Break-Even Quantity(Total fixed costs/fixed costs contribution)

New/ Retained Customer Visits: Sales $:

23,386 $1,169,292

The Deal Maker

Projections per storeCustomer increase from project 5% 1%

Increase in weekly customers 1500 300

Increase in weekly sales $75,000 $15,000

Increase in annual sales $3.9 M $780,000

Payback Period for Project 110 days 1.5 years