- June 6, 2020
Mylemonade stand, which I decided to name “Lemons` ",is situated in my locality. I opened the stand in my localneighborhood so that I could offer services to the people in mysurrounding community. The importance of my stand is that apart fromproviding lemonade, fruit juices, and fruits to my customers, mystand is also steadfast in championing for healthy living throughsensitizing the community on ways to ensure a healthy life. I do thisin events that the lemonade stand sponsors, e.g. sporting eventsamong the youth.
Therewere many pricing strategies that I could have employed includingeconomy pricing, price skimming, bundle pricing, psychology pricingand pricing at a premium (Marburger,2015). I chose the pricing formarket penetration since my business was relatively new and needed togain more customers. According to Marburger (2015), this approach isrecommended to new businesses to create their own customer base. Isituated my lemonade stand near the community school. This ensuredthat I am able to effectively reach the school going children, whomake up the bulk of my customer base, as they go to and from school.Their parents, who accompany them to school sometimes, are alsoattracted to my stand. Through the use of music and beautifulposters, I will promote my stand to the children and their parents. Iwill employ individual marketing by approaching potential customersindividually and telling them about my lemonade stand.
Thebrand of my product will therefore be unique. I intend to name mylemonade “Lemon’s Lemonade” to maintain the connection andidentity to my stand through the name. I will package the lemonade ina circular bottle designed to mimic the lemon shape and the logo thatI will use will include a lemon and pictures of healthy, happychildren. Below the logo will be the message, “A healthy drink, ahealthy life”.
Opportunitiesfor new locations
Mystand in my neighborhood has been successful, and this made meconsider expanding my operations. In determining potential newlocations, I had to put some criteria into consideration. First isthe customer accessibility. I have to ensure that the clients in thenew location can notice and access my stand without difficulties.Since it is a small business, I will consider my customers and ensurethey can reach me on foot. Therefore, I will be located where thecustomers pass by as they attend to their daily activities. The costof expanding operations is a significant aspect that also needs to beanalyzed. The transport costs, infrastructure costs and initialoperation costs will determine my next move. I will then put my styleof operation into consideration. Since it is retail, my businessexpansion will demand a traditional store location. Finally, mycompetition will also influence where I will expand my operations to.I have to ensure my stand is competitive enough to survive inbusiness.
Ihave allocated a $ 10,000 budget to my lemonade stand. This budgetwill be used in promoting my stand to gain a bigger market share. Iwill allocate about $ 1,000 to printing posters which will bedistributed throughout the neighborhood. The labor involved herewill cost me up to $ 1,500. Since I will be making use of events andfunctions in schools, I will have to pay about $ 2,000 to be allowedto take part in those school events. I will promote some of theevents, however, and sponsoring sporting events among the youth willrequire about $ 5,000. An additional $ 500 will be invested in music,gifts, and other minor promotional items in addition to miscellaneousexpenses.
Motivatingmy employees will ensure the recent fall in sales will be averted.Making them aware of our objective by setting achievable weekly goalswill give them purpose. I will assign roles based on their strengthsand weaknesses. Assuring them of my trust and recognizing achievementwill also play a significant role in motivating them.
Addressingthe community`s demands and giving back to society are my business`score values. I will conduct myself and the business at large at highstandards of business ethics and professionalism. I will employ allnecessary marketing and promotional strategies to attract a biggercustomer base and offer high-quality goods to ensure their long-termloyalty.
Marburger,D. (2015). Innovativepricing strategies to increase profits.New York: Business Expert Press.