A rose for your valentine Project Objectives To

A rose for your valentine

Project Objectives: • To provide students with a unique and most importantly, enjoyable way to celebrate the 14 th of February. • To base project decisions around thorough market research. • To offer an efficient, reliable and professional service to the consumer. • And of course, to make a profit!

Results from Market Research: The questionnaire was handed out to 30 people from within the school. • Students were interested in the idea • Students were generally willing to pay a price of £ 1. 50 for the service. • The service appealed to a wide range students How interested are you in this product ? Very interested Interested Average level of interest Mabye interested Not interested

Why do we think there is a market for this service? • Little, or no competition within sector. • Certain amount of experience amongst team. • School questionnaire suggests demand for product.

Main competitors: • Other goods/service providers within the school • Local business selling roses and other products related to valentine’s day. What gives us the competitive edge? • No immediate competitors • Allowed to sell service on school grounds • No similar substitute goods

Product promotion/placement: • Posters placed strategically around the school premises to attract the attention of the students and increase product awareness. • Visiting school assembles and classrooms • Fliers handed out to raise further awareness. • Sale stand placed in a popular location (e. g. Main entrance) • Mobile sellers visiting other areas (e. g. Classrooms) to increase sales capacity.

Operations: • Roses were purchased after orders had been taken to help maximise profits, and ensure that the business didn’t make a loss. • Sales stand operated at specific times during the day, where sales were most likely to occur. (E. g. Break and lunch periods) • Business was operated primarily from our business classroom; where our resources were stored while not in use.

Pricing strategy: • Maximise profits, by maximising effiency. • Low cost materials, while still maintaining a high degree of quality. • Roses Purchased for 10 pence per rose • 8 Roses in a bunch, for a total Unit cost of £ 0. 80 • Bunches sold at £ 1. 50

Financial forecasts: Results from pilot test: • 13 (bunches sold) x 0. 80 ( Unit cost per bunch) = £ 10. 40 (Total cost) • 13 (bunches sold) x 1. 50 (Price bunches sold at) = £ 19. 50 (Gross profit) • £ 19. 50 (Gross) - £ 10. 40 (Total cost) = £ 9. 10 (Net Profit) Business could not break-even because costs could never exceed Sales revenue.

Summary: • Market research suggests a significant demand for the service. • Little or no start-up cost required. • High % profit per unit. • Pilot test suggested that the business could prove viable, but highlighted the importance of improving product awareness and placement.