0+Topic+Selection

=**Tim Horton’s Ice Cap marketing plan**=

· Regular prices o L 3.09 M 2.49 S 1.89 After Tax: L:3.49 M:2.81 S:2.14 · Promo prices (cancelled) o L 1.99 M 1.49 S 1.29 · Cost effective to lower ( after promo prices) o L 2.49 M 1.99 S 1.79
 * General cost info of Ice cap**

volume increase by 77.8% profit increase by 35.8%

· Speed of service will benefit both customer satisfaction as well as lower the cost of manufacturing product. o Lower production costs + faster production = better overall product

1. Cup (5 seconds) 2. Cream ( 10 seconds) 3. Ice cap Mix (20 seconds) 4. Blend( 30-50 seconds) 5. Lid ( 5 seconds) 6. Serve ( 10 seconds) Total time = 1 min 40 seconds, doesn’t seem like a lot but it is when you have 10 on the go.
 * Ice Cap process**

1. Cup (5 seconds) 2. Pre-blended mix/cream and slushy icecap mix ( 10 seconds) 2. Lid ( 5 seconds) 4. Serve ( 10 seconds) Total time = 30 seconds (ideal!)
 * Ice cap New promo process**

//Expensive// Factories -> Large amounts of liquid mixes -> Individual bags (size of milk bags) -> 12 milk bags boxed
 * Manufacturing Process**

//New inexpensive// Factories -> Large amounts of slushy liquid base -> Large 2 gallon containers shipped to stores.

· From $3.30 at a 97 cent production price = $2.33 in profit prices · From $1.99 at 65 cents production price = $1.34 in profit prices
 * Expectations for sales volume**

· Expected customer volume to rise 3x which would make profit ranges triple, $1.34 x 3 = $4.02 which is $1.69 higher profit then before and plus the benefits of higher customer satisfaction.

These expectations are what should heavily focus on and gain as much information and research to back up our focus! If we can do this we are guaranteed a good project.

Great job Jordan!
 * Comments**:

One of the triple volume can be done by a calculation: Before: 100 seconds to serve 1 customer After: 30 seconds to serve 1 customer 100 seconds to serve 3 customers

Also, about the promo and cost effective prices, I think the price difference between L&M price should be smaller than the price difference between M&S. Because, the original price for L is 3.30, M 2.70, S2.00 L-M=3.3-2.7=0.6 M-S=2.7-2.0=0.7 which means if customer decide to choose a middle sized cap is more likely to choose a large one, because the price difference is small, with this, more profits bring to the company.

Alan