CAMPUS CALENDAR - MARKETING PLAN

SITUATION ANALYSIS Eight junior students from Eastern Washington University (E.W.U.) banded together to form a partnership called Collegiate Images (CI). The goal of the partnership is to make enough money to fund their senior year tuition of $500 /quarter and gain some practical experience in business. After screening through ideas, CI decided to produce and sell a campus calendar. CI Financial Goal The goal of the project is to make $12,000.00 for tuition fees. {$500/quarter x 3 quarters/year x 8 students = $12,000.00} CI Resources The start-up capital provided by eight members is $4,000.00 All members are going to put in not more than 15 hours per week. There are 9 months remaining for planning and production of calendar. MARKET RESEARCH Four other universities had sold calendars in the past. CI conducted telephone survey to find out information on these calendars. The results are as the following: Quality of printing, paper and photography are particularly important. Size of calendar is either small (8-1/2 x 11) or large (12 x 12). They featured female models in both full-body shot and swimsuit. They used calendar year format. Analysis suggested that calendar (OSU) produced in color, using contracted-out photography and has no advertising on it could be sold at $6.95 per unit. Other universities obtained sponsorship from Beer company and other businesses. CI also conducted several focus group interviews and administered 329 questionnaires to students at the time and day when most students attended classes. Information from Office of Registrar indicated the sampling closely matched the student body. The analyses are as the following: Students use calendar to write notes and reminders, prefers a large enough date page. 76.9 % are interested in a calendar featuring E.W.U. students. 54 % of those interested were male, indicating 85 % of the male students population would be interested in the calendar. 68 % of those interested lived on campus or off campus in Cheney. 46% of the respondents are students in their senior year, whom were less interested to purchase the calendar than underclassmen. 41.6 % would actually buy the calendar for themselves or as a gift. Most respondents would be willing to pay $6 for the calendar, followed by a smaller percentage willing to pay $8 and $10. 51.6 % prefer male and female on the same page or alternating page; the others prefers single sex calendar. 66 % of the students prefer full-body shot. Most males prefer females in swimsuit, whereas most females preferred males with their clothes on. 55% prefer school-year calendar starting in September.

MARKETING STRATEGIES Product Strategies CI will produce academic-year calendar starting from September quarter since most students received free yearly calendar. Therefore, CI must include all important dates, events and holidays related to E.W.U. academic year. The date page will be large enough for students to write notes and reminders. The calendar will be in color, using professionally produced full-body shot photographs. The poses will be mixed between E.W.U. male and female students on the same page (4 months) and alternating page with male (4 months) and female (4 months). Each poses will be significant to the theme of the month such as 1st day of class, Halloween and Spring Break. CI will take preliminary snapshots of these poses and have another group of students to screen the best 12 shots. The calendar will represent E.W.U. spirit as much as possible such as E.W.U. football homecoming game, cheerleaders, swimming team, graduation and other student activities. With this additional feature, CI wishes to offer a special calendar to all E.W.U. students. Distribution (Place) Strategies Each CI members will sell the calendar directly to the students daily in the month of September and October. A booth in the high traffic area of Student Union Building will be rented for $2 per day for the duration of 48 days. A timetable will be prepared for each member to be at the booth at different time and day. In addition, a booth will be set up in the stadium at the homecoming football game (tentatively scheduled in 4th week of September). All CI members will be at the booth to take advantage of this special event. Estimated distribution cost is $96. Integrated Marketing Communication (Promotion) Strategies Each CI members will promote the calendar to their friends and classmates. For additional promotional activities, CI will make these arrangements: Activities When Announcement in FOCUS, a daily flyer available to all 1st week September students on campus A member of CI would appear as a guest on a talk show 1st week September aired by the student radio station. Interview with the Easterner, E.W.U. student newspaper 1st week September and promote the spirit of E.W.U. in educating and supporting the students in their business venture. Place a flyer inside the Easterner at the same time the 1st week September interview is published, 6000 pieces, $0.025 per flyer. Place a large-size advertisement in the Easterner for two 2nd, 3rd and 4th week weeks following the interview, $140 per advertisement. September Estimated promotional activities cost is $570. Cost 0 0 0

$150 $420

Pricing Strategies Estimated Volume At present, there are 8200 students enrolled at E.W.U. with 93 % full-time students. 76.9 % (5865 students) are interested in the calendar. Only 41.6 % (3411 students) indicate the intention to purchase the calendar. Almost half of the students are senior students who will be graduating soon. An estimation of 600 students will enroll at E.W.U. in the next year. Therefore, the total estimated production quantity will be set at 4000 units. Production Cost After obtaining and selecting several quotations for production of calendar and photography based on quality, the costs for the chosen producers are tabulated below: Item (for 4000 units) Production Cost (2000 pieces) * Extra - 15% for each additional 500 Cost for typesetting Cost of professional photography ** Cost for preliminary snapshots Total production cost
Small-Light Small-Heavy Large-Light Large-Heavy

6,920 4,152 1,000 3,000 75 $15,147

8,000 4,800 1,000 3,000 75 $16,875

9,829 5,897 1,000 3,000 75 $19,801

12,040 7,224 1,000 3,000 75 $23,339

* Production cost includes paper, printing and binding. ** Cost includes travel, set-up charges, several negatives, a final camera-ready print.

DECISION: Based on the above cost and limited available fund, CI has decided to produce Small-Light type calendar in the chosen product concept. Unit Price The total cost for producing, selling and promoting the calendar is amounted to $15,813.00. Thus, unit price for each calendar is $3.95. To achieve CI financial goal of $12,000.00, a profit margin of $3 per unit must be achieved. Thus, the price of each calendar will be set at odd price of $6.95. This price is within the range of $6-$8 unit price obtained from the questionnaire and the same price as OSUs calendar. To achieve break-even, CI will have to sell at least 2276 units. Financial Matters As CI does not have the financial resources to meet the start-up costs for producing 4000 calendars, financial assistance will be needed. Several options are taken into consideration.

1. Advertising Market research suggested that calendars with no advertising on it are able to sell more units compared to others. For this reason, CI will not place advertisement on their calendar. 2. CI will apply for 4-months personal loan of $10,000 from Spokanes bank at 12 % annual interest. To secure the loan, CI would have to request their marketing instructor to act as a guarantor. Withdrawal can be arranged by two CI members when the payment to printing company is due. 3. CI will obtain $500 sponsorship from E.W.U. alumni fund to offset the interest paid. Without the bank loan, the project will not be feasible. IMPLEMENTATION For the implementation of the project, the activities and cash inflow/outflow are scheduled with the anticipation that 3500 units of the calendar will be sold in September and the balance 500 units will be sold in October. Cash flow Budget Inflow and outflow Start-up capital Bank Loan Sponsorship from E.W.U. Beginning Balance Preliminary shots Payment for professional photographer Payment to printing company Payment for renting booth at Student Union Cost of flyer Cost of advertisement in the Easterner Sale of Calendar Payment to bank Interest Return start-up capital to each member Ending Balance Conclusion This marketing plan showed that if the personal bank loan can be secured, CI members would be able to carry out the project. CI would be able to achieve their financial goal of $12,000, at the same time utilizing their knowledge to gain valuable practical experience in business.

June 4,000 12,000 500 16,500 -75 -3,000

July

Aug

Sept

Oct

Nov

13,425

9,425

1,353

12,525

16,000

-4,000

-8,072 -96 -150 -420 24,325 -12,000 -487 3,475

-4000 13,425 9,425 1,353 12,525 16,000 12,000