The document outlines strategies to enhance sales for Zak's dinnerware and drinkware by exploring value-added promotions, pricing, and merchandising, with a focus on engaging children through character-themed displays. Consumer research indicates that safety, durability, and ease of cleaning are top priorities for parents, leading to recommended price points for products like the 'puppet tumbler' at $5.99 and 'squeeze 'n sip' at $3.99. Overall, the findings support improved promotional efforts and product innovations aimed at maximizing market share in a competitive landscape.

1. zak!

6. REAL

8. Introduction

9. The Assignment: Develop incremental growth opportunities for Zak’s dinnerware and drinkware program through 3 different means, determining which produces the most sales for the company: Value-added Promotions Pricing Promotions Special Merchandising Vehicles Conduct consumer research and make recommendations to Zak on the following: Price Point Testing New Products/Categories

10. Promotional Tools

11. “ Follow Me” Displays Target market will be engaged as they encounter a character cut-out at the entrance Cut-out will lead the child to the product via stickers along the floor of the retail outlet Footprints for Dora or spider webs for Spiderman

12. “ Follow Me” Displays Target market will be engaged as they encounter a character cut-out at the entrance Cut-out will lead the child to the product via stickers along the floor of the retail outlet Footprints for Dora or spider webs for Spiderman

13. “ Follow Me” Displays Target market will be engaged as they encounter a character cut-out at the entrance Cut-out will lead the child to the product via stickers along the floor of the retail outlet Footprints for Dora or spider webs for Spiderman

14. “ Follow Me” Displays Target market will be engaged as they encounter a character cut-out at the entrance Cut-out will lead the child to the product via stickers along the floor of the retail outlet Footprints for Dora or spider webs for Spiderman

15. Posters Designed for end-cap or four-way displays Draws attention and leads to displays Increase awareness Showcase product lineup and attributes

16. Product Tags Front features the Zak Design brand name Helps increase brand awareness Inside of tag: Product shown on left 3-4 attributes listed on the right Identified through discussions in the focus groups zak! Vbwivbvt btbt tht Htyjryn hrth rhhrr Wbvueivi yj rj yry Tnbnth t tgugngg Bttng tujbnjbn gg

17. Interactive Display Composed of a TV embedded into a cardboard display playing a Dora movie or television episode Product strategically placed below the TV Children will be easily drawn to the products surrounding the display

18. Toy Department Placement High traffic areas for children Additional outlets = more exposure Focus group members thought of Zak dinnerware as toys Opportunity during holidays for increased sales due to increased foot traffic in department Priced cheaper than other “toys” More attractive to parents

19. Movie Theater Promotions Promote products in conjunction with a movie’s release Advertise during previews of kid’s movies

20. New Product Innovations

21. “ Dora Day Tripper” Hangs off back of car seat ZAK would have an advantage personalizing travel packs with licensed characters Target market Commuting parents Safe & durable Benefits Maintain a clean vehicle Maintains safety within a vehicle by preventing the need to unbuckle in order to reach something

22. College Line of Products Obtain university logos Relatively cheap Attributes Durable & microwavable Target market New college students Sold in university bookstores

23. Gift Sets More competition 95% market share unrealistic Seasonal or holiday items Pint glass or shot glass sets for students Tea set for girls Distribution channels Premium vs. low-cost retailers

24. Re-designed straw Smooth & detachable Rubber “stopper” included Softer, more durable Re-designed lid (no straw) Re-freezable ice packs Included with lunch packs Microwavable/insulated products More practical

25. Consumer Research

26. Focus Groups We conducted 2 focus groups Purpose: Gain insight on consumer opinions about Zak cups Goals: Learn what product features consumers values Discover areas consumers desire improvement Gain info to create price points for in-store promotion Targeted mothers with children 2-7 years of age

27. Focus Group Major Findings: Top three desired attributes: Safety Durability Cleaning ease Would like products to be microwave safe Sets over individual items Squeeze ‘N Sip was most popular Cups viewed as more of a toy than dinnerware

28. Price Point Testing

29. Price Point Testing Done over 3 weeks at two local grocery stores To determine which price would give Zak the best return, we took into account the price elasticity of each product over the 3 weeks by increasing and decreasing the price of each cup Goal was to find the price where elasticity is 1 This is where the highest return is Done with both Dora and Spiderman cups

30. Puppet Tumbler Spiderman data was skewed because the same amount of product was sold for 2 weeks straight Dora results showed the optimal price for the Puppet Tumbler was $5.99 Since the Dora Puppet Tumbler data was more legitimate we decided that a price of $5.99 would be acceptable

31. Squeeze ‘N Sip Spiderman’s elasticity only changed by 0.01 Same return from $3.49 to $4.99 With Dora, we found that the elasticity was closest to 1 in between $3.49 and $3.99 We decided that leaning towards $3.99 would be the best option for Zak because it is very close to an elasticity of 1, and fits within Spiderman’s elasticity range as well

32. Buddy Sip We found that a price of $3.49 would be the best option and gave the highest return It was unexpected to find the Buddy Sip should sell for less than the Squeeze ‘N Sip because we felt the Squeeze ‘N Sip was not as flashy as the other two cups, but the ease of using the Squeeze ‘N Sip made up for this

33. Price Point Testing Conclusion Suggested Prices Puppet Tumbler: $5.99 Squeeze N Sip: $3.99 Buddy Sip: $3.49

34. In Conclusion

35. In Conclusion… We have: Thought of new promotional tools Listed new product innovations Conducted consumer research Conducted focus groups Calculated product elasticities Done price point testing