1.

SWOT Analysis

Strengths:
a) The four partners were deeply interested in Marketing Planning and

Strategy and were committed to work hard to make the project so successful that it pays for their tuition.
b) The four partners have formed a strong partnership to start a small

business. c) They performed good amount of analysis on what product to select for their business. d) They selected a product which had no competition and the sports calendar market was untapped in Florida Atlantic University (FAU). e) The four partners had good amount of marketing research available.
f) There was way to advertise the product and also do additional sales

renting booths at FAU events. The success of this work dependent on partners commitment, which was there for sure. Weaknesses:
a) The product was new in an untested market. There was no historical

guidance on how product would perform at FAU.

b) The time period to sell calendars was short and the duration was only

two months in fall when the semester started.

c) There are lots of questions unanswered about marketing plan. d) If the students choose to retail the calendars themselves it would

mean they have to put extra hours of work. Also it will be tedious work since they can carry only 10-12 calendars in their backup and they have to rely on slow personal contact selling. e) There was no fair idea about how to advertise the new product.

f) The critical decisions on type of calendar to make and on what kind

of athletes was not made.

g) There was only $8000 available in startup capital. And students need

to make at least profit of $8,000 to cover the startup capital or break even, and $18,000 to pay for the capital and tuition, which was the ultimate goal. Opportunities:
a) There was no official sports calendar at FAU. The product could be so

successful that it would become annual product to sale at the FAU.

b) The FAU bookstore was selling two types of calendars, and the

existing calendars were themed in way not very attractive to university students.
c) There was unfulfilled market waiting to be captured for the FAU

sports themed calendar.

d) 76.9% of students as per survey showed interest to buy the calendar.

That showed a possible immense market for 16,700 calendars. (See

Exhibit 3: Survey Results)

e) Around 198 students among those surveyed were ready to fork at least $8 buy the calendar. f) Sales figures from other University showed realistic expected revenue per student to be from $1.42 to $1.94.
g) Bookstore was selling 3500 calendars, which generated $31,905 in

revenues which translated to per student calendar expenditure of $1.45.

h) The FAU book store was ready to buy their product in bulk. That

meant $9,000 in low risk revenues and would possibly pay back the $8,000 partners investment right way. (
See Exhibit 1: Current Calendar Sales at Bookstore)

i) The printer was willing to give them 30 days credit for paying the printing bill. Threats a) Other groups or organization can think of creating and market same type of calendar.
b) If the partners go with bookstore then lot of pricing power will be

surrendered to the university bookstore.

c) It is not clear if FAU was going to claim royalty on athletes pictures.

If FAU does then there will be additional cost. d) The calendars may not be accepted thus idea could flop and investment will fail.
e) The survey which showed 76.9% of students will buy the calendar

was highly exaggerated, because it translated to 16,720 calendars. (See Exhibit 3: Survey Results)
f) How FAU sports team performed in the games and how those

sportsmen behaved in the public could impact calendar sales unexpectedly.

2. Segmentation and targeting.

These are the variables which can be used for marketing segmentation:
1. What gender? Male or Female. 2. Which campus? Boca Raton or Davie or Jupiter or other.

3. What is class standing? Freshman or sophomore or junior or senior or graduate or unknown? 4. Does the student like sports (or will buy Sports calendar)? Yes or no? 76.9% of students are interested in buying calendar. If extrapolated to 22,000 students the number of students buying the calendar will be

16,720 students. But based on calendar sales from other universities around 20% to 29% will be willing to buy the calendar. That translates to a realistic count of 4,400 to 6,380 calendars. (See Exhibit 2: Calendar
Sales at other Universities.)

Among respondents, 60.87% are females and 39.13% are males. More females, 68% from cross tabulation data, are interested in buying calendars. This gives hint about product placement. If booths are to be rented then the retail stalls should be set up near events and seminars mostly attended by females. Retail stalls can also be rented near nursing and education schools. 69.2% of respondents were from Boca Raton campus and they also comprise 68% of all students. Hence most of the advertisement and product placement in events need to be done at Boca Raton. This also reduces the expected count of calendars to be sold. We get count of 3,300 to 4,350 calendars on applying the same percentages that of other universities again. We need to remember that 18.97 for survey respondents stay in Davis. This too can be targeted to generate sales of 836 to 1,212 calendars.

3. The Marketing Mix

a. Calendar Subject 31.24% of students want all female calendar and 42.69% want all male calendar. Since there is not a big majority in particular preference, we recommend 40% female athletes and 60% male athletes. This mix should also attract to remaining 26.09% of respondents.

Some of the pictures male or female need to be synchronized with the time when a particular sport is played. For example fall should depict football players; spring could depict both male and female basket ball players. 70.36% of students prefer athletes in uniform, so the calendar should have pictures of athletes wearing the uniform. 24.51% preferred swimsuits models. One fact to note is U of M generates highest revenue of $1.94 per student with all female swimsuit models, followed next by U if O with revenue of $1.67 per student with all male athletes. We have already decided to go with mix of male and female athletes in the calendar. And in light of this fact, we need to have some pictures of female athletes in swimsuits with other pictures of male only athletes in uniforms.

b. Calendar Publish Time 77.87 % of respondents preferred the calendar to coincide with school start year. Hence the calendar should be made accordingly. c. Calendar Pricing From data of other universities, we gather that around 27% of students buy the calendar when price is $7 or $5. . (See Exhibit 2:
Calendar Sales at other Universities.) And from our survey we find that if

the calendar is priced at $8, then the percentage of respondents buying the calendar is 1.19% + 18.97% + 58.10 = 78.26%. The price of $8 will also appeal the buyers who preferred $10 and $12 prices. (See Exhibit 4:
Demand Curves.)

From other university data (or the demand graph we have), when the price is $8, around 20% or 4,840 students will like to buy the calendar. The price of $8 will also undercut bookstore price of existing calendars. As far as the quality is concerned, we recommend heavy stock similar to that of U of C which has the most attractive calendar and also to be same as that of U of M which had highest revenue per student.
d. Distribution Options

There are three ways to distribute the calendars. First is to do bulk sale to the book store, other one is to rent booth at important university events and third is to do person to person selling. The unit sales at U of O were highest. There 28% of students brought the calendar and the revenue per student was 2nd highest. It had used multiple distribution systems. Looking at other universities, it looks like 5000 is achievable target. U of M has 18,000 students and was able to sell 5,000 calendars. So, 5,000 among 22,000 FAU students will be very reachable. Out of 5,000 calendars, 3,000 can be sold at the book store and remaining at event booths and person to person selling. (See Exhibit 2: Calendar Sales
at other Universities.)

Count of 5,000 is quantity selected since that is the minimum count for printers run. And bookstore is also selected as since it will not be possible to sell 5,000 calendars person to person and through booth. We estimate using 20 stalls at the cost of $200 with the expectations that each time, stall will be able to sale around 75 calendars. We

estimate around 1500 calendars to be sold through booths. Remaining 500 can be sold through person to person sales. That comes to 125 calendars for each partner in person to person sales. And 125 calendars for period of two months or eight weeks is like selling 3-4 calendars per working day of the week, which sounds reasonable.
e. Promotions

We have understood that the booths to sell calendars need to be set near events where high female students are present. The FAU newspapers editor needs to be contacted and if possible article/interview about new upcoming FAU calendar need be published. This will give some free publicity the new calendar. Some 300 flyers need to be printed, and posted and handed out around Boca Raton and Davie Campuses. The flyers are to be followed with newspaper advertisement of size eight page, costing $500. The newspaper advertisement needs to appear a day before launch of the calendar. Some of the venues for distribution need to be in the events attended by most juniors, seniors and graduates. These groups of potential customers make up 61.26% of the respondents. For example if there is job related event, then booth can be opened to sell calendars to seniors. f. Summary We suggest the partners to publish large size heavy stock $8.00 calendar with both male and female athletes. The calendar needs to match the school starting year of August. Both Boca Raton and Davie campuses are the target markets for the calendar.

4. Sensitivity analysis

a. Break Even Volume Analysis From the Exhibit 5: Calendar Costs Calculations, we find that the total costs for run of 5000 calendars will be $13,715. Since the book store will buy 3,000 calendars at $3.00 each, the sale to book store will generate $9,000. Remaining money to cover for cost of printing is $13,715 - $9000 = $4,715. At $8.00 each, the remaining quantity to sell to get to break even is 590. The break even volume is 3590, in which 3,000 are from book store sales and 590 are from booths or person to person sales.
b. Profit with 5,000 sold calendars

After 3590 calendars are sold, the remaining 5,000 3,590 = 1,410 if sold will be the profit for the partners. That amount will be $11,280. This exceeds the original goal of collecting $10,000 for tuition by $1,280.
c. Volume to achieve Target Goal of $10,000 Tuition

To get to target profit of $10,000, the students need to sell 10,000/8= 1250 extra calendars. Adding 1250 to 590 and 3000 the ones for break even volumes, we get 1840 to be sold at booth/person to person and 3000 to be sold at book store to cover cost and reach target profit. Total sales of calendar will be 4840 to cover cost and get $10,000 for tuition.

If all calendars are sold, then (5000 - 4840)* $8= 160 * $8 = $1,280 will be extra bonus to the partners.

d. Conclusion

The expected cash flow with approximate dates is shown in Exhibit 7. And the way all 5000 calendars will be disbursed is shown in Exhibit 8: Calendar Distribution Channels and with the help of pie chart in Exhibit
9: Distribution Channel Pie-Chart

Exhibit 1: Current Calendar Sales at Bookstore: Current Bookstore Calendar Sales 150 Hallmark American Greetings Total Sales Per Student Calendar Revenue % of Students buying Calendar 0 200 0 $9.9 5 $8.4 9 $14,925. 00 $16,980. 00 $31,905. 00 $1.45 15.91

Exhibit 2: Calendar Sales at other Universities:

Market Size Selling Price Calendars Sold Total Revenue % of Student buying Calendars Revenue per Student Type Of Calendar

U of T 28,000 9.95 4,000 $39,800. 00 14.29 $1.42 Both (Campus) 8 X 11 L Retail

U of C 36,000 8 7,000 $56,000. 00 19.44 $1.56 F (Swimsuit ) M(Head) 12 X 12 H Both

U of M 18,000 7 5,000 $35,000. 00 27.78 $1.94 Female (Swimsuit ) 8 1/2 X11 H Retail

U of O 32,000 5.95 9,000 $53,550. 00 28.13 $1.67 Male (Clothed) 12 X 12 L Both

Size/Heavy or Light Distribution

Exhibit 3: Survey Results: Student Survey Results % in sampl Cou

Question Wants to buy Calendar

e
Out of 329

% of total population

nt

group 76.90

253 253 yes

Unknown in each case Out of 253

23.1

What kind of models do you prefer?

79 all females 108 all males

both males

31.23 42.6 9 26.0 9 70.3 6 24.5 1 5.14

24.01 32.83 20.06

66 and females
What kind of photo poses preferred? athletes in

178 uniforms
athletes in

54.10 18.84 3.95

62 swimsuits
dressed

13 casually
What starting date preferred? calendar

56 starting year
school

22.13 77.8 7 56.9

17.02 59.88

197 starting year

Would you buy calendar

144 for self 76 as gift 33 both

2 30.0 4 13.04

43.77 23.10 10.03

Highest price for calendar

3 for $12 48 for $10

1.19 18.9 7

0.91 14.59

58.1 147 for $8 55 for $6

What is your sex

0 21.74 39.13 60.8 7 69.1

44.68 16.72 30.09 46.81

99 Male 154 Female

Which Campus attended?

175 48 29 4

Boca Raton Davie Jupiter other

7 18.97 11.46 1.58

53.19 14.59 8.81 1.22

What is class Standing

35 freshman 21 sophomore 58 junior 66 senior 31 graduate 42 unknown

13.83 8.30 22.9 2 26.0 9 12.25 16.60

10.64 6.38 17.63 20.06 9.42 12.77

Exhibit 4: Demand Curves:

Calendar Demand Curve 12 10 Calendar Price 8 6 4 2 0 4,000 5,000 7,000 Quantity Sold 9,000

D e m a n d C u rve Ag ain st % o f S tu d en t P u rc h a se
12 10 Calendar Price 8 6 4 2 0 14.29 19.44 27.78 28.13 % o f S tu d e n t Bu yin g C a le n d a r

Exhibit 5: Calendar Costs Calculations: Calendar Printing Costs Fixed Cost Estimates Cost of newspaper advertisement Flyers @0.05 Cost of twelve professional snaps Booth Costs for 20 events@10.00 Total Fixed Cost Variable Cost Estimates Variable Printing Costs @2.00 5000 10,000. 00 1 300 500.00 15.00 3,000.0 0 200.00 3,715.0 0

13,715. Total Costs 00

Exhibit 6: Break Even and Target Profit Volume Calculations:

Break Even And Expected Profit Analysis Cost to be recovered Book Store Sell 3000 @$3.00 Remaining Cost to Cover Calendars to sell to cover $4715 Break Even Sell = 3000 + 590 90 $13715 $9,000 $4,715 590 35

Money to be made to get to expected profit

$23,71 5

= cost + expected profit = $13715 + $10,000 Book Store Sell 3000 @$3.00 $9,000 $14,71 Remaining money to be covered Calendars to sell to cover $14,715 @$8.00 Remaining Calendars = 5000 (4840)=660 1,840 5

Exhibit 7: Expected Cash Flow Schedule:

Approx. Date Spring Late July Early Aug Mid Aug

Cash in Hand, Start Photographer Payment Leaflets News Paper Advert. Event Stalls

Credit $8,000

Debit

Balanc e $8,000 $5,000 $4,985 $4,485 $4,285 $13,28 5 $18,00 5 $28,00 5

$3,000 $15 $500 $200 $9,000 $4,720 $10,00 0 $10,00 0 $10,00 0 $8,000 $1,280

Late Aug Mid Sep Late Sep Late Sep Late Sep Early Oct Early Oct

Bookstore order Supplied Sale 590 Calendars Sale 1250 Calendars Disburse Tuition Disburse Printer Disburse Investment Sell remaining 160 calendars

$18,00 5 $8,005 $5 $1,285

Exhibit 8: Calendar Distribution Channels:

Channel Book Store 20 Event Stalls Person to Person

Details Approximate 75 Calendar sales per stall Around 125 to be sold by each or the 4 partners Total

Calendars to be channele d 3000 1500 500 5000

Exhibit 9: Distribution Channel Pie-Chart:

Calendar Distribution in the Channels
Book Store 20 Event Stalls 10% Person to Person

30% 60%