Business Practice and Entrepreneurship BUSI 2010
Presentation 6
Current Business Model
Caravan
Physical Channel-Samples Web
50% of the responses positive
Experiments to test getting customers and the pass/fail range
Physical Channel – Samples/Get contact info/Give business info-call card, Word of mouth, Target Business’s
Web- Blog, Twitter, Facebook, Emails, Instagram
Web- Mobile App
Get
Are you tired and hungry, but hate the long lines?
Download the application “Sandwich Delight” or call us and we will get it straight to you.
Don’t stop to think Try it !!!!Also visit our caravans at a location near you You’ll be delighted by our tasty, affordable
and healthy subs.
Giving extra Loyalty Card- buy 5 get one free Discounts Sale on evenings
Via web Contests to engage the customer
Keep
Additional Products Upselling Complementary Products Referrals from present customers
Grow
Campaign Budget
Tactic Target Persons
Criteria
Pass/Fail Cost
Sample 10 Inquiry/Sale
5 $107
Call Card 10 Sale 5 $10
Web 5 Sale 3 (local) 0
Goals ValuesA. Sales 7B. Inquires 5
C.10% Inquires convert to sales (10%*B) 1
Total Sales ( Customers – A + C ) 57 Total Prospects (B – C) 4
Estimated Customer Cost Customer Acquisition CostCampaign cost/ customer $117/10=$1.17
Cost per target personCampaign cost/Total Target Person $117/25=$4.68
After sampling our sandwiches, at least 90% would be potential customers
Advertising via free services will be as effective as a paid service
Advertising via the world wide web will target greater amount of customers
Customers would be excited to buy and tell others.
Hypothesis: Here’s what we thought
Samples (5) Get customer contact info: cell and email Offer our contact info. Asked how much they would pay Asked if they would recommend to tell
others
Advertise via Blog
Experiments: So here’s what we did
PRICE RANGE $15.00 $18.00 $20.00 $20.00 $25.00
Results
Based on the calculation only 1 person of the inquires will be customers
Three out of five people were interested in giving out there contact info.
Four out of the five people has access to internet to view our web advertising.
All were satisfied with the taste and were willing to tell others
The blog was viewed mainly by non nationals who aren’t our target customers
The cost of the samples $117 can cater for a min of 10 people
Results: So here’s what we found
We are going to introduce more advertising techniques which does not include the world wide web
Use the world wide web in a more efficient way which will target local customers
Iterate: So here’s what we are going to do next
END
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