The Christmas Market was an opportunity for students across the cohort to practice different marketing strategies and studying economics first hand. It was a great learning opportunity and I discovered how to attract customers using effective advertising marketing strategies. After calculating our expenditures, gross total income and subtracting the expenditures from the total income, our profit was $47.50. It was a great experience and improved my understanding of economics. Our products were wooden laser-cut magnets and ornaments.
The Process
As pre-market experience, my class and I participated in a short game that put into practice the different strategies of marketing, supply and demand, and competition price matching within economics. The skeleton island game taught us to employ different pricing strategies to surpass competition but still demand enough to make a reasonable profit. My group determined the price of our Christmas Market products based on material cost, supply and demand, and local competition. The material cost of the wood needed to make our ornaments and magnets was reasonably cheap, and we could make a total of 36 wooden discs for a mere $8.50. However, magnets were costly, with $9.45 securing only 20 magnets. Paint and glue were reasonably cheap and added to the overall value of the product.
However, consumer demand for magnets and ornaments was only mid to low, and our stall was in such a location that it would be one of the last things a customer saw before they exited the market. According to the price of our competitor’s products, original material costs and the demand for our product, we priced our ornaments at $2.00 and our magnets at $3.00. Our cheap prices attracted many customers, and we raised our prices to compensate for the demand placed on our products. Towards the end of the market, we lowered our prices so that we would be able to gather the loose change of the customers. These pricing strategies were successful, and we managed to sell out at the end of the market with a reasonably profit left over.
ASC Capabilities
Throughout the Christmas Market project I had to use the ASC Capabilities Wheel and the Design Thinking Process to efficiently and successfully plan this economic venture. Cooperation, collaboration and communication were essential features of this project, and as I only had one partner it was crucial that I was able to work along side them. I had to take ownership of my own problems and be able to ask for help when required. Leadership was an important quality, and as there were two people in the group we had to be able to lead each other effectively and stick to our strengths. Ved and I managed to finish out project in time and even sold out on the day of the project. The hardest part of the project was staying on task and sharing the work load equally between us. As we each had different schedule and tasks we had to perform, patience and thoughtfulness were often reluctantly put into practice. Despite occasional glitches in the grand scheme of the project, my partner and I collaborated effectively and managed to complete our project on time and to a high standard.
If I were to repeat the Christmas Market experience, I would create a cheap, easily manufacturable product that was both attractive, and could be sold for a profitable price. I noticed that consumer demand was particularly high for ornaments, baubles and small trinkets that could be purchased without any serious expense. Stall location is of the utmost importance as it heavily impacts the decisions a potential consumer makes when buying a product. Stalls near the entrance or exit of the market grounds were perfect opportunities to encourage impulse buying, and demanding only a low, attractive yet profitable price for their products. Positioning your stall next to a potential competitor could significantly lower the number of customers you had, as they would gravitate to either the more quirky, cheaper or better-quality product on offer. Advertising is also a crucial marketing strategy as it allows you to spread the word about your product and it encourages consumers to go out of their way to purchase a particular product. Advertisements with stark colour contrasts, flashy logos or a large, meaningful image stand out from the surrounding adverts and lure customers to the product.
Packaging is important but not so crucial that you should spend valuable investment money buying one particular form of packaging. The way you package a product will either enhance or detract from its overall value and appeal. Repeating the Christmas Market project, I would consider the various forms of competition price matching, position my stall near either the entrance or exit to the market grounds and post adverts near and away from my stall. Consumer demand often determines the success of a business, and ornaments had a much higher demand than magnets. These cheap yet profitable ornaments would have enabled me to increase the price of my products yet still attract customers.
Overall, the Christmas Market project was a great success and taught me many different marketing strategies. Combining these strategies with effective use of the College Capabilities, this market was a great economic venture and I will apply the skills I learnt to future projects.