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