3. Mission Statement:
Our mission is to deliver a varied selection of Arizona Iced teas to the students of
Naperville Central at a fair price. The students of Naperville Central need a quick
refreshing drink to carry them through the school days. Our teas not only combat thirst,
but also bring out the true flavor of summer which will make our customers keep coming
back for more. We also promise to keep an ample supply of our product on hand at all
times. By excelling in these standards, our company aims to enhance the learning
environment of Naperville Central by quenching the never-ending thirst of the
Redhawks.
Core Values:
A. Commitment- Each team member of Arizona Breeze is committed to serving
our customers. We will always work as fast as we can to get the beverage of
choice into their hands, while making sure the teas are cold.
B. Value- We pride ourselves in knowing we serve a great tasting drink at an
affordable cost of only one dollar. Customers will always get more than what
they pay for.
C. Integrity- Each worker in our company knows how important maintaining
integrity is, which is why we never cheat anybody in our business. You get
what you pay for.
Statement of Purpose:
Arizona Breeze will be selling prepackaged cans and bottles of Arizona Iced Tea.
The teas are directly supplied by the Arizona Bottling Company and will be sold during
4. school hours for one dollar per Tea. We will be selling a variety of flavors including
Sweet tea, Fruit Punch, Mucho Mango, Diet Green Tea, Diet Arnold Palmer, Raspberry
tea, Watermelon, Kiwi Strawberry, Lemonade, as well as the original Arnold Palmer
flavor. The price difference is there to cover labor and our investor’s interest on
investment. The turnaround time on our shipments is one day.
Business Goals:
1. Our goal is to sell at least 200 cans per day
2. Our weekly goal is to sell at least 1000 cans
3. Our goal for return on investment is 100% over the course of our sales
4. Achieve at least twenty daily customers
5. Obtain 100% customer satisfaction
Significant Characteristics of the Industry:
The Arizona Beverage Co. is one of the largest distributors of tea in its sector.
Right now, Arizona holds 38% of the total market, which is one percent behind Lipton
Tea from Pepsico. Last year they previously held 35% of the market share, they aim to
grow their presence at a steady pace, one day becoming the largest tea distributer in
the world. Arizona is an American company based out of Brooklyn New York and has
been around since 1971and has been selling tea ever since.
Unique Features:
Arizona Breeze is unique due to the fact that out of all the selections of drinks at
Naperville Central, we are the only ones who provide so much for so little. At only one
5. dollar for twenty four ounces for a cold drink, we prove the meaning of true value. We
also work quickly to ensure everyone gets served in under a minute so that waiting in
line is not an issue as it is in the cafeteria. The vestibule is only a stone’s throw from the
cafeteria, making it an easy stroll to buy a tea during lunch.
Process of the Company so Far:
Before choosing to sell Iced tea, our company had to select that product. At first,
it seemed as though we were going to sell Mcdonald’s apple pies because they had
great profit margins at 400%. Buffalo Wild Wings was also an option we considered, but
keeping the food safe to eat as well as warm was going to be a challenge, so we
dropped the idea. We then surveyed the student population and figured out that Arizona
Iced Teas would be our best seller, so we moved on to the planning phase.
We met with many different stores to find who could supply us with the product.
After one week, we still could not find a vendor, so we called the company itself. It
turned out that they had a bottling plant nearby and Chris Sanders, the executive
manager, was very excited to work with us. Arizona had worked with other schools in
the past, so they wanted to give us the same deals the other schools received. We were
given free merchandise and display items to help with our sales as well as free samples
of the tea.
We then sent out one final specific survey regarding what flavors would be most
popular and we figured out they were Arnold Palmer, Raspberry tea, Lemonade, Fruit
punch and Kiwi Strawberry. We called up Chris and placed our order for 30 cases and
6. two complimentary ice barrels to hold the tea. The next day, the truck delivered our
product and we were ready to begin selling.
Choosing to work with the actual Arizona Company was a great idea because we
got a lot of advice, such as which flavor to purchase, as well as free merchandise. The
shipping costs ended up being a mere $3.00 only per delivery, and the cost per can of
the tea was reasonable. We were glad we gave the company a call that day, it all turned
out great and they helped us succeed.
8. Explanation of Market Research Process:
At the beginning of our research process on February 7th, 2011 our company surveyed 85
students and staff members for a feasibility study. We had surveys for 3 companies, Buffalo
Wild Wings, Arizona Iced Tea, and McDonald's Apple Pie. After analyzing our data carefully
for each product, we selected Arizona Iced Tea as our final product. The surveys proved that it
was the most popular most likely because of its affordable price. We contacted their company
immediately and started making appointments for meetings. After our feasibility research, we
conducted a major research on March 3rd, 2011 consisting of 514 students and staff members
here at Naperville Central. We had a great sample of 29% freshmen, 32% sophomores, and 25%
juniors, which is great because those are the grade levels that make up our target market. We
didn't leave out the 12% of seniors and 2% of staff that we surveyed because they are still valid
data to help us sell our product. Personally, as the Vice President of Marketing, I designed the
survey with some input from the CEO and other VP's of course. Creating the survey was a team
effort and organizing the schedule of classes that we were planning on surveying was also a big
deal. Our VP of Operations did a fantastic job making a schedule and distributing it to everyone
so that we didn't interrupt a class at the wrong time and so that all of the classes we visited were
expecting us. The process of conducting this major survey was long and hectic but we worked
well together as a company and everything went smoothly. We had a great sampling and it really
helped us make decisions when planning our sales.
9. Market Research Results and Analysis:
After collecting all 514 of our surveys on March 3rd, we tallied our results and analyzed
our results which helped us while determining who is going to buy our product, when they will
buy it, if they will buy it, at what price they would buy it, what flavors they would buy, and how
frequently they would purchase our product. We began our survey with basic questions such as
"What grade are you in?" We gave the option for all grade levels, 9-12, and staff members. We
had a great sampling which consisted of 149 freshmen, 163 sophomores, 129 juniors, 63 seniors,
and 12 staff members. Based on our results we know that grades 9-11 are our target market and it
was very helpful that we surveyed mostly those grade levels. The next basic question was "What
is your lunch period?" We had an almost equal distribution of lunch periods which is good
because we got data from many potential customers in each lunch period. We surveyed 166
people from 4th period, 181 people from 5th period, and 167 people from 6th period. This was a
great sampling because it was almost equal for each period. This shows us that we can sell
during each lunch period because people would be willing to buy at that time. Next, we began
our more in depth questions like "How likely are you to buy a can of iced tea?" This was on a 0-
5 scale with 5 being most likely to buy. We had a good sampling from this question because
there were a lot of people who said they would maybe, most likely, and definitely buy our
product. We received a rather low amount of not likely to buy with 66 people who chose 0. Less
people chose 1 with a total of 58 people that would probably not be our most frequent customer.
Even fewer chose 2 with a total of 37 people that would maybe try our product. There were 83
people that chose 3, there were 91 people who chose 4, and 179 people that chose 5 being the
most likely to buy our product. This data showed us that the majority of students will purchase
our product and we will need to order a lot of cans each week especially if 74% (students that
10. marked 3, 4 or 5) of students are going to buy our product in each lunch period. The following
question was "What is the most you would be willing to pay for 1 can of iced tea?" We left this
question open-ended which is risky to do in a survey, but it turned out well. We received a very
broad sampling of different prices but the average price was $1.29 which is greater than the
suggested price of $1.00 which is what Arizona sells it for. Based on our data, we determined
that students would in fact be willing to pay more than a dollar for our product. Since our
supplier is willing to provide us with cans of Arizona Iced Tea for $0.60 per can, I recommend
we should sell our product for a price in the $1.00-$1.50 range. This will still give us a quality
profit while keeping the price very affordable for customers. The following question was "What
flavors would you be willing to buy?" We had 16 different choices of flavors and we had a
massive sampling that showed that Arnold Palmer (Half tea & Half lemonade) was the most
popular flavor. It was followed by the next top 5 flavors that were Raspberry, Lemonade, Kiwi
Strawberry, Fruit Punch, and Watermelon. Since there were so many popular flavors, we
determined that we should sell a wide variety of them and offer a flavor of the week. Our final
question was to determine how frequent our customers would be. We asked "How many cans
would you buy per week?" There are many people who will buy a few cans each week, which
was very encouraging because the results show that 85% of students will purchase at least 1 can
per week. There were 72 people who wouldn't buy any cans, 268 who would buy 1 or 2 cans,
115 who would buy 3 or 4 cans, and 59 who would buy 5 or more cans per week. This data
shows us that we will really need to make sure we have enough cans supplied especially because
we don't have to worry about our product going bad or rotten. We can over-supply for a week but
just store the remaining cans until the next week. Overall, this massive survey has allowed the
VP of Sales and myself to make decisions and suggestions about many aspects of our company
11. and our business plan. We suggest that we should sell during all lunch periods, before school,
and after school. We are going to be selling in a room adjacent to the cafeteria and possibly
outside by the bus pick-up zone. Our suggested price for each 23 fl. oz. can is $1.25 which will
allow us to profit $0.65 per can since we are buying them for $0.60 per can. Since there are so
many wanted flavors, we suggest that we sell the top 5-10 flavors every week and make 1 of the
remaining 6 flavors available as a flavor of the week which we would change every week. This
will allow us to give a great variety of quality products to our customers. Since there are about
500 students on campus for each lunch period, 85% of them will purchase at least 1 can per
week, we should over-supply just so we don't run out for the 1st week because we can just keep
them for the following weeks. There is an estimated total of 1,500 students that will be our target
market so we should purchase about 1,300 cans for our 1st week. This survey gave us a great
sampling and really helped us make many business decisions that will be applied in the near
future.
15. Price (Avg.=$1.29)
7 14
2
191
26
1
80
3
45
5 2 1 1 1 2
0
50
100
150
200
250
What is the most you would be
willing to pay for 1 can?
Open-Ended was a success
Our average price was $1.29
Most frequent price was $1.00
Based on this data, we will set our price at 1 dollar
because it’s the suggested retail price
16. Flavors
319
103 97 108
38
221
149 156
53
94
234
74
168 180
136
161
0
50
100
150
200
250
300
350
What flavors would you buy?
Arnold Palmer (Half tea&Half lemonade)- most
popular
The next top 5 were Raspberry, Lemonade, Kiwi
Strawberry, Fruit Punch, and Watermelon.
Based on this data, we will include a wide variety of
flavors and possibly a flavor of the week.
17. Number of Cans per week
59
115
268
72
0
50
100
150
200
250
300
5 or more cans 3-4 cans 1-2 cans 0 cans
How many cans would you buy
per week?
Most students will buy a couple cans each week.
Loyalty Card Program- We will consider using loyalty
cards to promote repeat business.
Based on this data, we have high sales projections,
about 15 cases per day.
18. Final Recommendation
Based on our great sampling, we recommend that we
sell our product for $1.00 in the vestibule during
lunches.
We should sell Arnold Palmer, Raspberry, Lemon, and
Fruit Punch.
We also recommend advertising our product and
selling it at sporting events and by the busses.
Finally, we should offer cans and bottles and change
flavors based on what customers demand.
19. Marketing Mix:
Product:
Our final product is a variety of flavored iced teas and juice blends that come in a 23.5
fluid ounce recyclable can. It comes in a variety of 16 different flavors. Those flavors are:
Arnold Palmer, Half tea & Half tropical, Southern Style Sweet Tea, Green Tea with Ginseng and
Honey, Diet Green Tea with Ginseng and Honey, Raspberry Tea, Lemon Tea, Peach Tea,
Cranberry Tea, Grapeade, Lemonade, Orangeade, Fruit Punch, Kiwi Strawberry, Mucho Mango,
and Watermelon. The flavors we will actually be selling are: Arnold Palmer Lite which has no
high fructose corn syrup, Lemon, Raspberry, Lemonade, Watermelon, Kiwi Strawberry, Fruit
Punch, Green Tea and Diet. We will be co-branded with AriZona Beverage Company and
Naperville Central High School. AriZona is a well respected business, they are privately owned
and they are the number 1 tea on the market because they offer the most delicious, best-looking
drinks on the shelf. They offer them in bigger cans at better prices, they are doing extremely well
and we believe our company will succeed as well. Drinking iced tea is very common throughout
the entire world. It has many benefits especially to your health because real tea is its first
ingredient, unlike many tea companies. Many Asian cultures have linked drinking natural tea to a
healthy life. Its great taste and soothing qualities are perfect to experience on a hot spring day
while relaxing with a nice refreshing iced tea. By selling at school, we add value to the product
because there is nothing better than enjoying a refreshing iced tea during a stressful day at
school. For marketing utilities, our product offers all of them. Our product offers form value
because we sell it in 23 fl. Oz. cans and 20 fl. Oz. bottles. We also offer a variety of flavors as I
mentioned above. Our product offers place value because we are located at a convenient spot in
the vestibule where we can catch seniors entering and exiting from off-campus lunch, and other
20. students near the cafeteria. Time value is also present in our company because we sell during all
3 lunch periods. We are also considering selling before and after school which would add more
time value by maximizing company hours.
Place:
Due to contracts with the school and Sodexho, we aren't allowed to sell our product
directly inside the cafeteria. We will be selling it in a room adjacent to the cafeteria where
seniors exit for lunch and where students enter and exit while arriving and leaving school. This
room is called the Vestibule and it is near the patio by the football field which is a great location
for students to buy a can of iced tea and relax outside and drink it in the warm spring air. We will
also be selling our product outside in the area where students are dropped off and picked up by
busses. We will carry a cooler around and also have a sign advertising our product. We will sell
before and after school some days and we will sell during all lunch periods every day. Another
place to sell, is at sporting events like baseball and soccer games. We can also sell energy drinks
from Arizona outside of school because the district policy doesn’t apply. Additionally, Spring
musicals and the “Honor Dodge” dodge ball tournament are great places to sell our product.This
will allow anyone who is interested in purchasing our product, to enjoy it at they're convenience.
Price:
We will be selling one size of our product, 23.5 fl. oz. cans and they will be priced at
$1.00 for every flavor. Our price is cost-oriented because we are purchasing it for $0.60 per can
so we would rather make $0.65 profit per can rather than $0.40 per can if we only sold it for
$1.00 which is the suggested retail price. It is also market-oriented because when we surveyed
our target market, the data showed that people would be willing to pay more than $1.00 for a can
21. of iced tea. They considered $1.29 a reasonable price because that was the average price of our
data. Therefore, I think selling it for over $1.00 is perfectly acceptable especially since iced tea is
not offered at our school.
Promotion:
Advertising: Our company will spend a lot of time and effort getting the word out about
our product. We will create posters displaying our company name, a picture of the product,
where and when to buy, and other information. These will be displayed on announcement nooks
around the school. Additionally, an advertisement on Hawk TV on a late arrival day would help
spread the word about our company and draw customers to us. Another idea is to create an
announcement to publicize our company over the intercom. It is a very important aspect to a
company and we need to spread the word about our product quickly because we are only selling
for a month.
Sales Promotion: Our company will promote our product by promoting throughout the
school, inside and outside of it. We will also have an appealing sign and posters behind our table
that we will be selling at to draw customers in promoting sales with prices and flavors labeled.
We will offer a flavor of the week based on what the customers ask for the most. This should
draw some customers in to try our product. We are also going to sell raffle tickets for 1$ to give
customers a chance to win one of our Arizona branded ice barrels. Also, we will offer loyalty
cards if we need to improve sales. It will allow frequent customers that give a discount to
someone that buys from us every day for a whole week.
Publicity: We will publicize a lot for our company. We will contact the Central Times to
attempt to get an article in the school newspaper. I am creating a facebook event that gives
22. details about our company and people can choose to attend, maybe attend, or not attend. This
will give us a rough estimate of how many people are interested in buying our product. We are
also going to sell at the “Honor Dodge” dodgeball tournament for charity which will be great
publicity for Arizona Breeze. Additionally, we will be very polite and outgoing to our customers
so that they know we are a good business and they will want to come back again.
