Couple Of Square

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Squares:
Pricing for the
Future
PRESENTED BY SERENA SUN, DAREN MA, LISA TO

ROADMAP
Objective: Improve firm value through operation efficiency improvement and strategic product positioning
Key Elements

Considerations

Opportunities

1.

Industry Growth

1.

Product

1.

Cost Saving Analysis

2.

Competition

2.

Distribution

2.

Risk Analysis

3.

Supply Chains

3.

Packaging

3.

Financial Impact

4.

Financial Conditions

4.

Customer Services

A COUPLE OF SQUARES INC.

COST OPTIMIZATION
Objective: To Reduce Cost
$8.00

Cost of Product

109.09

Labor to package

6.07

$6.00

Foam

0.86

$5.00

Bubble

0.83

$4.00

Total Cost saving

16.88

$3.00

Updated Cost

92.21

$2.00

Selling Price

120

$1.00

Margin

15%

$7.00

$-

A COUPLE OF SQUARES INC.

Labor to package

Foam

Bubble

HEDGING OPPORTUNITIES
Objective: To avoid risk of food price fluctuation by hedging Wheat Price :

• Wheat Price Rose over 120%
from the summer of 2010
• Hedging with Commodity
Futures or Options reduce the
impact of rising raw material

400
350
300
250
200
150
100
50
0

A COUPLE OF SQUARES INC.

2010 - 2013

RISK
• Fluctuation in the Underlying Commodity Price and
Currency
• Timely Delivery
• Cross-Border Regulations
• Overall Economic Condition

A COUPLE OF SQUARES INC.

NEW DISTRIBUTION CHANNEL
Objective: To find new channel to boost sales
Expand into New Chains
• High Number of Outlets
• Premium Coffee Shop
Chains

Cookie
Stores Sale/Day

Wholesale Unit
Daily
COGS price
Contribution Revenue

Daily
Profit

Annual
Revenue

Annual
Profit

Daily # of
Cookies

Statbucks 12,000

5 $1.75

1.8

3%

$10,800 $3,000 $38,880,000 $1,080,000

60,000

Tim
Hortons

4,300

3 $1.75

1.86

6%

$23,994 $1,419 $8,637,840

$510,840

12,900

21

10 $1.75

1.93

9%

$13,608

210

Aroma

$405

$38

$145,908

PRICING
Objective: To increase profit margin through new pricing strategy without impacting existing customer base
 Design Cost
 Complexity Cost
 Overhead of drying time
 Dough wastage

A COUPLE OF SQUARES INC.

PRODUCT INNOVATION

A COUPLE OF SQUARES INC.

PACKAGING
Objective: To communicate brand identity to the consumer
 Continuously utilize attractive and appealing packaging to highlight cookie design  Individual packaging to reflect “A Couple of Squares” brand

A COUPLE OF SQUARES INC.

SUMMARY OF RECOMMENDATIONS
1. Price Adjustment
2. Reduce costs
◦ Alternative for packaging material
◦ Foam ($0.96 to $0.1)
◦ Bubble ($0.36 to $0.13)
◦ Invest in packaging machine ($7.59 to $1.52)
3. Hedging Opportunities
4. Product: Gourmet Cookies
5. Expand Product Distribution
6. Revise Packaging to rejuvenate younger audience

A COUPLE OF SQUARES INC.

THANK YOU
A COUPLE OF SQUARES INC.

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