Develop a new product or service Essay Example

the well-being of young people, customers who choose a healthy option such as a fruit salad or mixed salad will receive an additional piece of fruit at no extra cost with their meal. Likewise, those who order a fried breakfast will also be provided with complimentary fruit in an effort to encourage healthier eating habits.

The student must purchase a meal to receive a free piece of fruit. In addition, special meals such as Christmas dinners will be offered during certain times of the year. These meals are not typically on the menu but will be available at reduced prices to attract more customers. The purpose is to inform customers about holiday deals known as promotional pricing. To ensure profitability, cost plus pricing will be used by determining the cost of each item and marking up its price accordingly. This allows calculation of the number of units needed to be sold in order to make a profit.

Despite the initial impact on profits, I will maintain attractive deals to draw in customers. As my business grows and gains a customer base, I will eventually generate more income. To cover rent and labor costs, I will establish a 10% markup for profitability. Determining rental expenses and staff wages will be straightforward since I am aware of the establishment's rent cost and can decide pay rates personally.
In order to ensure sufficient sales that cover these expenses, during my college days off, I will work at the cafe for the first few months instead of hiring another full-time employee who would require a full wage. Furthermore, there will be one full-time employee and a part-time employee who will only work

during busy periods like lunchtime to minimize unnecessary expenses.
While skimming pricing is another option where businesses initially set high prices but gradually decrease them to appeal to various markets.

I have implemented psychological pricing by setting the prices of my items at 99p instead of $1. This strategy entices customers to choose my products as they perceive them to be cheaper than competitors, despite the mere 1p difference. On the other hand, premium pricing involves setting higher prices to reflect the quality and effectiveness of a company.

Regarding the location, I have chosen to situate my cafe just outside the main entrance gates of North West Kent College. This strategic placement allows my business to capture the attention of many enrolled students passing by. As people notice the cafe while traveling past it, they will spread the word about its opening. This publicity will contribute to the growth of my business.

Although I have explored other potential locations for my new cafe, many of them are farther away from the college. This distance would inconvenience students and potentially limit the customer base to those who can drive or have longer breaks.

This would mean that I may not make as big of a profit as I hope for. My strategy for promoting the cafe is to have flyers all around campus to promote its opening. Additionally, as a student, I can personally inform people about it, which will help spread the word quickly. I will also inquire about the possibility of placing an advertisement on the college's website to further promote the opening. Another method of promotion will be posting flyers around Dartford, letting students know that the cafe

is on their way to the college, allowing them to stop by before class.

Instead of purchasing in town, which is more expensive and less convenient, this option is beneficial. This choice is ideal because it is located near the campus, offers cheaper prices compared to the college, and will attract students as it sells alcohol. Additionally, the healthier option will also be enjoyed by those who prefer healthier choices.