Paletta Pops Business Plan Section 5 – Marketing Plan

 How have you established your pricing?

Each fruit or milk based Paletta Pop is sold for $3.50 to each customer. Although
production costs vary for each flavour produced due to varying ingredient costs,
these costs are all well below the unit price. However, although ingredients vary,
each Paletta Pop has fixed prices for popsicle stickss, bags and labeling used. The
unit fixed cost for each are as follows:
 Popsicle bag: $0.25
 Popsicle stick: $0.06
 Label: $0.35
 Total fixed price per Paletta Pop: $0.66
The breakdown of the price for each Paletta Pop flavour is as follows:

 Blackberry (per unit): Raw Material: $0.50

Fixed: $0.66
Total: $1.16
Markup: $2.34

 Coco Loko (per unit): Raw Material: $1.09

Fixed: $0.66
Total: $1.75
Markup: $1.75

 Banana Cookie (per unit): Raw Material: $0.78

Fixed: $0.66
 Total: $1.44
Markup: $2.06

 Sweet Passion (per unit): Raw Material: $0.45

Fixed: $0.66
Total: $1.11
Markup: $2.39

 Tamarind (Per unit): Raw Material: $1.17

Fixed: $0.66
Total: $1.83
Markup: $1.67

These are the only manufacturing costs currently incurred, as Paletta Pops
is a home-operated business and overheads such as water and electricity
are paid by the homeowners, at no expense to the business. These costs
may also slightly vary, as very often, fruits are picked from trees in the
business owner’s own backyard, resulting in many fruits coming at
absolutely no cost to the business, thus yielding higher profits. The above
figured are only calculated based on the assumption that all raw materials
are purchased. This is not always the case. Labour costs are not currently
incurred as the owner is the sole employee, and does not receive a salary.

In terms of production capacity, using two basic popsicle molds, Paletta

Pops is able to produce 20 popsicles approximately every 4 hours. From a
blend of ingredients, approximately 10 popsicles are made in a batch for
each flavour. The average cost of producing a batch of 10 popsicles is
$14.58. The gross revenue made from a batch is typically $35 ($20.42 gross
profit). However, the minimum profit that would need to be made to
recover investment as well cover any other arbitrary expenses that may
arise per batch would be approximately $16.00. An average of about 4 and
a half batches are currently sold every Saturday (when deliveries are
made.)
A flat price of $3.50 per popsicle was chosen as the standard, due to the
response of customers. After asking several of my peers about how much
they would pay for a product of this nature, it was decided that $3.50 was
an affordable yet reasonable price. However, the average popsicle buyer
(who is accustomed to paying $1 or less for regular bag popsicles) may
anticipate a price of about $2.50 for Paletta Pops before becoming familiar
with the brand.
On the competitive landscape, this places Paletta Pops as a mid-range
competitor, due to the fact that they are more expensive than common bag
popsicles, but still significantly cheaper than Frisko Choc-Ices and Ice
Creams. Given their affordability, Paletta Pops are directly in line with the
target market, and will attract customers, as anybody with a bit of loose
change and a craving can access this product. The all-natural and premium
feel of the product also makes it a very attractive snack at just $3.50.

Although price is very important to my customers, it is not much of a

deciding factor, as they will still feel the urge to purchase Paletta Pops,
even if the price were to rise.

Paletta Pops does not typically provide credit options, however in the case
of bulk orders or large event orders, credit policies and deposit payments
may be put in place on a per customer basis. Discounts will only be offered
in the event of special promotions, giveaways or bulk orders. If clients are
in some way dissatisfied with Paletta Pops’ service, or if the business is not
able to fulfill a request that was paid for by the client, they may be eligible
to rebates and refunds.

Flavour Price Cost %age of gross

profit margins
Blackberry $3.50 $1.16 66.8571%
Coco Loko $3.50 $1.75 50%
Banana Cookie $3.50 $1.44 58.8571%
Sweet Passion $3.50 $1.11 68.2857%
Tamarind $3.50 $1.83 47.7143%
Product Strategies

 How will your products be packaged? – Paletta Pops currently come in a

disposable, transparent popsicle bag with a label indicating the brand,
contact information, and the flavour. In the future however, a move toward
more eco-friendly packaging materials would be ideal, as well as more
advanced and attractive labeling to entice customers more.

 How broad will your product line be? – Although “paleta” style popsicles
would be the main focus of the business, upon expansion to a physical
location, other products such as pastries, cookies and coffee may be
offered under the Paletta Pops brand. As for the popsicles, the flavour
combinations are endless. However, a flavour list of maybe 10-15 flavours
at a time may be optimal so as to not overwhelm customers.

 What position or image will you try to develop or reinforce? – As stated

before, Paletta Pops seeks to promote innovation and refreshment through
an all-natural and delicious frozen snack. Paletta Pops will attempt to
maintain an image of health and freshness, as well as standing as a symbol
of colour, youth and innovation.

Promotional Strategies

 What design elements will you use to market your business? – In addition
to the name and logo of the business, the slogan of the business
“Happiness is best served cold” will be used to appeal to customers, as
happiness is a feeling that Paletta Pops intends for customers to associate
with the brand.
 Along with these, colourful and appealing graphics, posters and
advertisements will be used to complement the overall aesthetic of the
brand, as bright colours are usually associated with youth, freshness and
excitement. The use of models of all ages in these advertisements will be
ideal, so as to further capture the target audience of the business; all age
groups.

 How will you reach your target market? – Currently, the only forms of
advertisement used by Paletta Pops are social media, word of mouth and
referrals. However in the future, more ideal forms of advertisement would
include radio and newspaper advertisements, billboards and signs, sales
promotions and business cards. Another thing that could be looked into is
brand endorsement by local public figures such as musicians, politicians,
and other business owners.

 Pick 3 of your key promotional activities and describe how they currently
(or will in the future) help you meet your business objectives – Social
media, word of mouth and referrals are currently pushing the business
toward one of its objectives: “To gain a larger brand following and increase
the brand’s client base by investing in effective marketing and delivering
consistency.”

These forms of promotion, especially social media, are allowing Paletta

Pops to grow as a brand and to gain more awareness, by engaging with a
large audience online. Additionally, the consistent quality and nature of the
content being posted online creates a uniform and identifiable aesthetic for
the brand.

 What promotional materials will you use? – Upon expansion, Paletta Pops
will implement promotional materials and strategies to boost sales such as
holiday and other specials, miniature popsicles for samples, customer
loyalty rewards/membership cards, and customer giveaways/sweepstakes.
  Have you performed/will you be executing any PR activities? – Although
none have been executed as yet, some possible PR ventures could include
radio and other scheduled interviews to bring awareness to the company.
Additionally, in the future Paletta Pops may be in the position to engage in
sponsorship ventures, uplifting the social image of the brand.
A possible public appearance for the brand could be in the form of having
cameos and guest appearances, as an inquiry has already been made into
having Paletta Pops’ products appear in a local musician’s music video. This
could help bring a sense of familiarity and positive exposure to a wider
audience.

Distribution Strategy

 What is your distribution network? – Paletta Pops currently relies solely on

direct distribution, however in the future, hybrid may be relied on as
wholesale to retailers such as supermarkets and shops to fulfill the
marketing strategy of brand awareness, as well as increased market share
and profits. Internet based sales are also done, as clients are free to place
orders through the various social media pages.

Product Delivery Responsibilities

Due to the ongoing COVID-19 pandemic, delivery has been and will continue to be
the main form of distribution for our products, given that we do not have a
physical location. Deliveries are done in the Arnos Vale/Kingstown areas, and fees
vary per customer depending on location.
In the event that customers are not satisfied with our products, service or other
aspects, a refund option may be considered on a per client basis.
Upon hiring employees, Paletta Pops will see to it that the necessary workers are
properly trained in the aspect of handing and operating popsicle making
equipment to ensure the highest quality product possible.

Sales Strategy

 How will you sell/distribute your products? – Until Paletta Pops

establishes a proper physical location, sales and distribution of products
will continue to be delivery based. On the other hand, when a physical
location is established, sales will mainly take place at the location, with
deliveries only being available for large orders.
 How many hours a week do you foresee spending on sales? – Upon
establishment of a physical location, Paletta Pops plans to be open every
day from 9am to 6pm, with reduced hours on Sundays (1pm-7pm), giving a
total of 60 hours a week. However, current deliveries may be expanded to 3
times a week instead of just once per week, with a time schedule of four
hours a day dedicated to deliveries; 12 hours a week dedicated solely to
deliveries.
 Which sector and target audience will you begin your solicitation with? –
Solicitation of products will begin with the younger demographic of the
Paletta Pops target audience. That is, children, teenagers and young adults.
In the future, a higher emphasis of marketing will be placed on the older
demographic once the business is more established, although they are
welcomed from the get-go.