Homework help PLEASE! WILL GIVE 10 points for the best one.?

Question

The cost of Snack Bits in the can is 1.39. Suppose you are the marketing executive for the Snack Bits Coporation, and you are proposig a new container, a box that is reasonable price for the new container of Snack Bits? Write a proposal in which you discuss the new box and suggested price, and give a mathematical explanation for your proposed price.

Answer 1

I would write a proposal that emphasized three themes that all reult in the incresed profitability of Snack Bits

Increased customer appeal of a new container
Reduced cost of goods sold using the new container
Improved corporate citizenship due to lower carbon footprint of new container versus can

This is a bit made up:

Based on focus group testing of consumers of Snack Bits we determined the following market segments had the following preferences for a box used in packaging versus a can:

Male and Female ages 11 to 14 65% Box 33% can 2% don't care

Male and Female ages 15 to 18 77% Box 16% can 7% don't care

Male and femal 18 to 25 95% Box 2% can 3% don't care

Based on these findings in our target markets there is a significant prefernce for a box versus a can in packaging a snack product for impulsive consumption. This could increase our market share in these markets by as much as 2%, which will increase demand from our current level of 200,000 units, to a projected level of 220,000 units in 12 months.

Our Product team has shown that a box will cost $10.00 less per thousand containers versus cans.

Given our current production of 200,000 units per month, this results in a savings of $2,000/month. At the increased level, it will result in a savings of $2,200 per month.

Also, our Logistics team has shown that the decreased weight of the box versus the can will result in a savings of $1,000 per month for shipping and drayage.

Finally, the energy consumed to produce a box versus a can is 5% less. A rough estimate is that this choice will reduce the particulate matter emitted in the manufacture of Snack Bits by oneton per month. This gives Snack Bits the opportunuity to market our increased coporate citizenship.

Add these items together, and Snack Bits increases revenues from $278,000 per month, to $305,800 per month, an increase of $27,800 per month.
The savings will be $3,200per month
for a total of $30,000 per month

Costs:

It will cost $60,000 to design and re-tool our factory to package in boxes versus cans.

An integrated marketing campaign to preserve our current market when we change our packaging, and to attract new customers will involve the following elements:

A coordinated advertising campaign using former VP Al Gore to promote the new Snack Bits as "the right choice for the planet" when choosing a snack food. His time plus a contribution to his foundation. Total: $200,000
Also, the television advertising will be in conjunction with the NFL playoffs to capture our target male audience, and with NASCAR to capture 45% of our female target audience and reinforce with the male viewers. We will also have placements on Access Hollywood.

Vending machine signs $10,000
Print ads $50,000
Internet ads $15,000
Television ads $400,000

The total cost $735,000

This will result in a payback of about 24 months, which is within our corporate guidelines.

Over the subsequent 3 years, it will generate in excess of $1 million dollars of incremental revenues.

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Answer 2

Obviously, the price of the packaging should be way less than the price of the product in the package. (Unless you work for Bath and Body works, whose packaging really makes the products something special to look at). I would suggest finding a snack food in a can that is DOUBLE OR MORE the price you mentioned. (Double because retail price includes shipping costs, and of course, profit) Search the net for wholesale can distributors and see if you find the price per lot. Divide by the number of cans in the lot, and that would give you a reasonable answer.

Answer 3

I would help you but i am only in the 7th grade and DON'T undersand that. Sorry dude. Why don't you ask your teacher for help. I bet she/he will listen and understand.