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Assignment 2: Premium Items
Special events often
give away to customers various premium items or gifts with the retailer or
product logo on them. Such items enhance the company’s image and allow a
potential customer to see the company logo and remember its projected image
for many years. This week you need to do planning and budgeting for premium
items.
You are working as the
brand promotional manager for Kate Spade, New York. They have recently
launched an entire range of baby items including baby bags, clothing,
accessories, baby gear, and brag books. As a promotion, the company is
partnering with Avon: Walk for Breast Cancer, a charity to promote healthy
living by sponsoring an annual charity walk-a-thon event. Attending this
walk-a-thon in Chicago on June 5th will be women who are busy, working
mothers, with newborn babies at home.
You need to distribute
premium items to potential customers at the charity event. All items should
reflect the Kate Spade look and lifestyle in addition to including the logo
on each item. Be sure to visit .katespade.com/”>www.katespade.com
or google the designer name to familiarize yourself with the customer
demographic, lifestyle look, and feel. Prepare a plan for your premiums and
include a budget. You need to think about inexpensive (under $4.00 per item),
mid-priced ($4.00–$12.00 per item), and high-priced ($12.00–$25.00) items
which can be given away to promote the new product within the limited budget
you have. Reference websites on the internet that sell promotional items and
products that will fit into the lifestyle of your customers at this charity
event.
Prepare a budget for the
following in a Word or Excel document: (submit a chart or grid for this
budget)
1.
One inexpensive item to be given out to all
the walkers. This item will be packed in a gift bag.
2.
One mid-priced item for the customers who
purchase Kate Spade baby bags at the event. Keep in mind these bags retail
from $255 and up, so premiums should reflect a high value.
3.
One high-priced item for your loyal sponsors
of the event, media who will cover the event, and any political figures who
attend the event.
Here, you can give away
some existing Kate Spade products, assuming their markup is 2.5 times the
wholesale price.
Keep in mind that you
are promoting the new baby line and should alter your premiums based on
targets you need to set in the above three categories. You anticipate 2,000
attendees at the walk-a-thon, 10% of attendees making a purchase of product,
and 4% attendees would be sponsors, media, and political figures.
In addition, write a
synopsis 400–500 words describing the following:
1.
Objectives to be met with your premium item
distribution.
2.
Why you selected the items? Discuss color,
style, patterns, and fabrics, and other relevant details to justify and
explain your choices.
3.
The short or long term use of each item for
different customer type.
Make sure you include
pictures of the items from the sites or other locations you might find to
support your responses.
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