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Hanrahan power point business proposal week 6

This proposal recommends increasing sales at an underperforming Jimmy John's store through a strategic sampling program. It analyzes the store's situation, noting stagnant sales over five months. Two options - cost reduction or increased advertising - are considered. The proposal recommends a strict twice-daily, five-days-a-week sampling schedule to raise brand awareness in the delivery area and steadily increase revenue, outweighing the minor cost of extra product for samples. If followed consistently, sampling can boost sales as desired by managers.

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PROPOSAL TO INCREASE CURRENT SALES Delivered to the District Manager and Store Owners June 27, 2014 Max Collins, Assistant Manager allstarmax13@yahoo.com
OVERVIEW: SALES SLUMP • The problem that this five month old Jimmy John’s is facing is slow sales. The store is new to this location, but it is experiencing a plateau in sales. As a result of these sales, the store is incurring significant losses per four week sales period.
INTRODUCTION • Jimmy John’s is a sub shop that differentiates itself from other sub shops by two factors. First, they say that they make “freaky fast” sandwiches and are usually able to complete each sandwich in 30 seconds or less. The second thing that separates Jimmy John’s from other sub shops is that they can deliver. They significantly beat the times of other delivery options such as pizza delivery by getting each order to the customer between 5 and 15 minutes.
OPPORTUNITY: INCREASE BRAND AWARENESS • Since the store is still relatively new, it may be necessary to analyze its surrounding market of customers. The customers in this store’s area may be unaware that this Jimmy John’s exists. In addition to this, many customers might not know what Jimmy John’s is. As a result, the store may need to improve its brand awareness.
THE CURRENT SITUATION • Over the past five months, this Jimmy John’s has been experiencing the same stagnant sales numbers. The reason could be that it is getting the same customers.
KEY SUCCESS FACTORS • Two key success factors for Jimmy John’s exist because of their two types of customers: In shop and Delivery. • In shop: Providing these customers with their sandwich in 30 seconds or less. Sometimes these customers get their sandwich before they finish paying which “freaks them out”. • Delivery: Providing these customers with their delivery in a faster time than other businesses that provide a delivery service. On average, customers can get their order between 5 and 15 minutes. • Both success factors are dependent on the speed of the service.
ANALYSIS OF ALTERNATIVES • There are two alternatives to help the store produce a profit. One requires reducing costs and the other requires increasing revenue. • Reduce current variable costs: this could be done by eliminating waste of sliced meats or prepped vegetables. In addition to this, meats are sliced at a certain weight range. Slicing at the lower range could help keep food costs down. • Increase advertising: in theory, offering samples to businesses in the store’s delivery area can help increase sales steadily.
STRATEGIC OPTION • Increasing the amount of sampling done at this store can be essential to increasing the store’s sales. This would increase the overall brand awareness of the consumers in the store’s delivery area. Following a strict sampling schedule of two times a day and five times a week will increase the store’s slumping sales.
BENEFITS AND RISKS OF STRATEGIC OPTION • Following this strategic option more strictly than it is being followed currently presents both benefits and risks. However, the benefits outweigh the risks.
BENEFITS • Increased revenue: Sampling to different businesses will bring in more customers and, as a result, increased sales. • Increased brand awareness: New customers who either did not know that this Jimmy John’s existed or did not know what Jimmy John’s was will have the opportunity to try the product from the samples before they buy it.
RISKS • The only risk is the effect of the costs incurred from using the extra product to make the samples. However, this risk is not too significant because the benefits of increased sales greatly outweigh this extra cost of the product used to make the samples.
FINAL RECOMMENDATION/ CALL TO ACTION • My final recommendation is to follow a strict sampling schedule at this store. Currently, sampling is happening, however it is happening inconsistently. Sometimes it happens once a week, other times it may happen every day. This inconsistency will not lead to the consistent, increasing sales that both the district manager and owners want.
REFERENCES • Shwom, B. & Snyder, L. (2014). Business communication: Polishing your professional presence (2nd ed. Pp. 296-301). Pearson: Upper Saddle River, New Jersey.