FroYo Cafe is a self-serve frozen yogurt parlor located in Novi, Michigan. This kind of cafe is co-owned by Jason Johnson and Serta Barr and opened in April of 2017. Sales were up to $16, 710 in August, but as the months acquired colder sales went down by more than fifty percent. It was made the decision that sales promotion and adding a new product could be the area of target, which generated the question: How could FroYo Coffee shop in Novi increase it is sales and break even through below the collection marketing and application in the winter weeks? Two fundraisers were held pertaining to FroYo Coffee shops, bookstores sales promotions. The fundraisers were successful, as interviews conducted located that many uncovered FroYo Coffee shop through the fundraiser and would venture again.
To increase participation, FroYo Bistro should job harder in promoting the fundraiser. Through a review, it was located that increasing the warm products (hot chocolates, coffee) or adding consumable cookie money (a trendy product) might increase the buyers willingness to check out FroYo Cafe. I believe that below-the-line promo and a great addition of items to the merchandise mix may help Froyo Bistro keep product sales up throughout the winter, and in the end helping all of them break even.
Action Plan Word count: 500Rationale for Examine: Based on the feedback that I got by my advisor, it was decided that the difficulty for FroYo Cafe was sales. A target was to maximize sales and increase customer traffic. It was found the fact that best-suited target audience would be large schoolers considering they are loyal and generally the main consumers of iced yogurt. The simplest way to attract pupils is through below-the-line advertising. Adding a new and trendy merchandise into the combine may help the business fill a distinct segment in the market and increase interest in the customers. Aspects of the syllabus: Niche Markets ( 1 . 1) Market Research Surveys (4. 4) Set of questions Below the Range Marketing ( 4. 5) Word of Mouth PromotionSales PromotionsPoint-of-Sales PromotionProduct ( some. 5) Addition of a cool product to the merchandise mix Break-Even Analysis ( 3. 3) Possible Sources of Information: I have access to plenty of primary data, one of them becoming financial information that my mentors have provided me with. A survey is being conducted, that will give me information as to whether or perhaps not adding a new merchandise into the mixture will be beneficial for the company. Google Trends would have been a great origin to obtain supplementary data. This can be a fastest approach to access various data about trends on the tip of your fingers.
Organizations and Individuals to be approached: We are handing out my personal survey to high school students. This can be to find out more about how precisely to attract this demographic and if new products will attract them to FroYo Cafe. Significant contacts through this process are Jason Smith and Dan Barr, because they both helped by providing economical data, resources, and tips. Methods accustomed to collect and analyze info: I am going to acquire primary data by using online surveys, monitoring the attendance and sales of fundraisers, performing interviews and obtaining economical records from my coach. Most of my data is quantitative although I can receive lots of qualitative data through the surveys and interviews. Let me analyze your data through Yahoo sheets. I am able to analyze the secondary data through the charts and information they offer. My spouse and i plan on making use of the break-even evaluation to find out in the event FroYo Coffeehouse has broken even but as this is among our desired goals. I can perform a before and after with all the break-even analysis and this can present the improvement over the course of my partnership with this provider.
Predicted Difficulties: I actually dont have many limited sources since my mentor is ready to give me any kind of financial documents that I need for my project. I understand that my secondary sources, interviews, and online surveys wont end up being fully rid of bias but you may be wondering what I acknowledge is that there is a chance of tendency and critically analyze. Privacy isnt an excessive amount of an issue, as my instructor knows that I am showing my findings to my class. Gantt Chart: Modifications happened due to a lag in obtaining economic records and survey data. IntroductionThe number 1 question asked in the frosty yogurt sector is How will we make it through the winter? This industry offers intense competition like Menchies, Yogurt Metropolis, Yogurt Palooza and Orange Leaf, every located in a few miles of FroYo Cafe. While competition soars and the temp drops, making it through is a have difficulty. The company that we am working together with is called FroYo Cafe which is located in Novi, Michigan. This company is fairly fresh and opened in the planting season of 2017. FroYo Coffeehouse, a business owned by Jason Smith, offers self-serve fat free yogurt with many one of a kind toppings, smoothies, and slushies. FroYo Coffee shop was powerful in the summer, product sales as high as $16, 710 in August of 2017, generating excessive sales and customer satisfaction.
Heading into the winter months, they are worried about how they can keep up the business enterprise and survive. A goal on their behalf is to make your money back, which is fair for a new company. Yet, for them to do this and survive they need to attract even more loyal customers, increase product sales and have even more promotional methods. This prompted me to question Just how can FroYo Coffeehouse in Novi increase its sales and break even through below the line marketing and application in the winter a few months? Methodology and EmployedPrimary DataAs apart of my research, one of the goals was to put in a new product for the product mix. To determine whether this would be the ideal move, a survey was conducted numerous quantitative and qualitative questions. I as well obtained FroYo Cafes economic records. This kind of primary data is from the company and definitely will help me look at their improvement in revenue and help help this process. We organized two fundraisers by FroYo Coffeehouse and during which in turn we monitored the impact and reactions.
Employees at FroYo Coffee shop have been monitoring how a large number of sales and individuals came for the fundraisers. Post fundraiser selection interviews of a few in the participants were also conducted. This will aid in the expression process by providing information about buyers reactions. The secondary DataThe secondary details I received is from Google Trends. This source is helpful since it displays the latest trends on the internet searches with visualizations. To determine whether ready-to-eat cookie money is a tendency or not, I explored the tendencies in Google searches edible biscuit dough plus the regions. BiasI believes my own information is valid although there is always a fundamental bias. The surveys would have response opinion, depending on whether or not the people who required them knew what it was for. There may also be tendency due to the phrasing of my own questionnaire or my develop of interviews. Main Effects and FindingsSurvey and InterviewsOne of the key portions of my Inner Assessment is usually introducing a new product to FroYo Cafe to attract customers in the winter months.
Through my exploration from the studies I placed, I found that around 60% of a high school graduation population, would like more warm items like warm chocolate. In addition , around 80% of a high school graduation population would be interested in your favorite Yogurt place selling ready-to-eat cookie bread, a 2017 trend inside the dessert market that has curious many. Although this fun treat have been popular just lately, there are simply 2-3 spots in Michigan that promote it. This provides an impressive niche available in the market. Google TrendsThere are only some spots in most of The state of michigan where you may find edible dessert dough. Since seen in the graph above, edible biscuit dough has been google searched many times over yesteryear twelve months in Michigan. These can be displayed as the trends with the intention to cookie cash, which is today on the rise again. It was identified that 51% of high schoolers get frosty yogurt once every month.
Financial info from the economical data, I found that FroYo Cafe built around seventy dollars, 090 of gross profit from April 2017 November 2017. Still, their particular expenses go beyond their costs and they require around $12, 000 in order to even. FroYo Cafe staff, during the fundraisers, the noted amount of folks that attended the fundraiser and just how many revenue they manufactured that day for the fundraiser. The count intended for the initial fundraiser was that they had thirty four supporters to make $150. The other one acquired 4 supporters. Analysis and Discussion Researching the market SurveyThe review collected offers qualitative and quantitative queries in order to better determine if we have to implement a new product. The key question which i asked was Would you be considering a Frozen Yogurt place that sells edible cookie bread? I received many good success from this question, them getting aligned using what my coach and I got hoped. We all found that within the Novi high school populace, 80% of them agreed that adding cookie dough for the menu might intrigue all of them and cause them to become more willing to go to a Frosty Yogurt shop. I believe that this is due to the simple fact that ready-to-eat cookie money is a craze in the treat industry which is very attractive. This trend is especially appealing in the surrounding areas because edible cookie cash is not readily available. This kind of fun handle has been well-liked for a while now and could fill the niche market inside the surrounding region. There are only 2-3 locations in all of Michigan you choose to find a seller selling ready-to-eat cookie dough. This is why the new addition on this product could be attractive and may bring innovative customers to FroYo Bistro. I also asked about warm items of course, if adding them would enhance interest in FroYo Cafe. 60 per cent of students at Novi high school showed interest in digging in warm what to the menu. Although this isnt as high as the response for dessert dough, this is reasonable as warm products arent a niche and they are easily accessible at most restaurants. In hope of reducing bias, We didnt refer to the companies brand. My desire was that a specific Frozen Fat free yogurt place wouldnt sway these people more toward selecting a certain option. This could have been somewhat effective, however many of my own peers may already know regarding my connection with FroYo Cafe, which can lead to tendency.
Below the Series Fundraisers
To attract more high school students, the prospective market, all of us decided to enhance our fundraisers. I have found that in many substantial schools around the world, a popular method to raise cash for a school club or organization is definitely through cafe fundraisers. This is how a cafe donates a percentage of that days profits towards the organization. This encourages the supporters from the club or organization to go to this restaurant to not just support the group nevertheless also eat some great meals. After speaking about with my mentors, all of us found that would be a good way to attract students and to gain more faithful customers. We have held two fundraisers plus they were an excellent success! The first fundraiser was a Michigan DECA fundraiser and brought around 34 new customers to FroYo Coffee shop that gave great evaluations. FroYo Coffee shop made an average of $150 that day, which in turn $75 of the went to DECA.
The $75 us dollars went to FroYo Cafe. This was a higher than their average winter daily sales recently. FroYo Cafe also received the benefit of new clients which were encountered with a new Freezing Yogurt retail store. The coverage is a huge nonfinancial benefit and can generate a positive word of mouth. The fundraisers helped bring a lot of attention to a company that isnt as well well-known in the high school graduation community. I had a series of selection interviews after the DECA fundraiser and there was tons of positive reviews. Sarav Noor Singh stated that Ive never tried out anything coming from FroYo and not really been aware of it, although this fundraiser helped me discover this amazing place. An additional participant inside the Relay forever fundraiser, Alyssa Mixon, stated, I under no circumstances knew this place been around and I will be definitely going right now there more seeing that I live so near to it. Seemingly, there are many positive responses and numerous people discovered FroYo Coffee shop while trying to support a local club.
Break-Even AnalysisFroYo Cafe opened in this spring and do very well come july 1st, from Summer to August they made $37, 103 in revenue. However , that they still didnt break even within their efforts, since overall they are still at a negative $11, 869. While the colder months contacted FroYo Bistro, it became tough for them to achieve a profit in their monthly sales. Their summer season average sales (June-Aug) had been at $12, 367 but their colder weather condition average (Sept-Nov) was $8, 451. Meaning they had a 31. 7% drop in sales, which will only obtain lower as you go into Dec through Feb. This is not leading them to their year-end goal of breaking even in their 1st year.
Although they at the moment dont have a chance to break even currently, my outcomes have shown incredibly positive effects: the below-the-line promotion has brought great opinions and the research say that putting into action edible dessert dough could increase consumer interest. If perhaps FroYo Coffee shop continues to improve their attempts to increase all their sales through sales offers and fundraisers, then they may well obtain even more sales and recognition to this business.
Additionally , if they put into practice the new product suggested, edible cookie dough, (or different warm products) they can increase their sales from other products aside from frozen yogurt. In the winter months, frozen fat free yogurt isnt the go-to sweet and many people opt for warmer treats. The edible biscuit dough will offer FroYo Coffee shop some differentiation from other iced yogurt locations and, is going to hopefully, make them attract customers. Also, it will have some experience of FroYo Coffeehouse when they carry out release this new product because it isnt since widely sold in this area. Bottom line and RecommendationsThroughout this task the target was to increase customer traffic to FroYo Bistro through applying new products (edible cookie bread and hot chocolate) and below-the-line methods (fundraisers). With the primary info being financial figures, online surveys, participation rely and interviews I arrived at two results: With the right campaign FroYo Cafe has benefited via an increase of new customers, even more awareness of their particular store and increase in revenue. I have found by my principal data the fact that overall product sales increased once FroYo bistro sponsor a fundraiser. In the interviews which were conducted while using participants inside the fundraiser, it was found that 50% of those they are more likely to go back right now there.
Through efforts to plan two fundraisers intended for FroYo Coffee shop, the 1st fundraiser was well promoted and had a very large turnout. Despite our hopes, the other fundraiser wasnt as effective and had a smaller turnout as well as the sales that day for the fundraiser were also low. This may have been due to the fact that Relay For Life doesnt have because supportive people as DECA does. I would suggest: FroYo Cafe and the firm work together to advertise the fundraiser to the most of their ability and to create a word of mouth. Put into action a new distinct menu of things for the cold time. Through my research of adding nice items and edible dessert dough in the menu, I came across that it is even more beneficial if FroYo Cafe adds these new products to the menu, to increase customer traffic and product sales. This would be the best way to increase desire for FroYo coffeehouse, especially through adding new releases that arent sold around the Novi Area like cookie dough.
Overall, through the data We collected and received in the business, I like to recommend that FroYo Cafe continues to offer revenue promotions and fundraisers to attract new customers and organizations. My spouse and i also think that FroYo coffeehouse should put into action new products in the cold weather, especially cookie dough, which will help bring even more customers seeing that frozen fat free yogurt isnt as favorable or popular in the cold weather.