The iPhone Pez Dispenser Opportunity

iPhones everywhere!

All praise the iPhone(?)

The PEZ iPhone market, 2013

• 100,000 people will buy a device that attaches a PEZ dispenser to their iPhones

• You have an initial budget per team of $10,000 to sell these devices

• Contract manufacturer prices based on order size– More than 1,000 = $1 per unit– More than 5,000 = $0.75 per unit– More than 10,000 = $0.50 per unit

Price/demand forecast for target market

$5.00

$5.50

$6.00

$6.50

$7.00

$7.50

$8.00

$8.50

$9.00

$9.50

$10.00

$10.50

$11.00

$11.50

$12.00

$12.50

$13.00

$13.50

$14.00 0

20,000

40,000

60,000

80,000

100,000

120,000

Demand

Rules

• Your team has $10,000 budget• Total market size is 100,000 people• Estimate advertising expenses and desired

inventory amount• Inventory costs per unit drop with higher order

amounts• Advertising expenses break ties between teams• First mover advantage matters in this competition