1. By Carina Gonzalez A. Per 7 Economics Mr.Traeger
Marketing project
By Carina Gonzalez A.
Per 7
Economics
Mr.Traeger

2. How’d you decide on a product
We decided on which product to produce due to the fact that when I (Carina) would bake cupcakes just for the fun of it they wouldn’t last very long and according to the people’s comments, my cupcakes were “amazingly good!” Therefore we figured people wouldn’t mind paying a little money for something they found quite delicious.

3. How did you end up with your final decision?
Well we had many options as to what we could make, I mean really the possibilities were practically endless… with some exceptions of course, but any who the way we came to the final decision was by coming to the conclusion that it would be something easy to make, it wouldn’t be as time consuming as other products would be, and the number one thing it was a delicious type of food and people love food.

4. Did demand play a role
Demand did play a part in our decision in pricing the product because if the price was set to low people would probably buy more, but we wouldn’t be making much profit. Then there was the factor of the scenario were the price was set too high, if that happened then the consumer would more than likely not buy enough to were we would be making an o.k. or good amount of money.

5. Demand schedule, yes or no?
In which case we sort of used a demand schedule and we estimated because we outlined the price of our competition which was $2.00 for their cupcakes and the other competition was $1.00 for a small little “cake pop”. From here we evaluated what price would be best for our cupcakes a.k.a estimated and used the demand schedule with the knowledge we already had and decided that...

6. Part 2
… if people were willing to pay $1.00 for a little cake pop and $2.00 for a cupcake why not price our product at $1.00, I mean same price as a cake pop, but our product was bigger and $1 less then the competitions cupcakes , therefor making our baked goods seem well worth it purchasing.

7. How’d you know how much to make?
Well we made roughly about 40 cupcakes because that’s how much the batter ended up making. We decided we would only take cupcakes out of 40 to sell and sample for the reason that it was going to be our first day selling our product so we didn’t want to take too little or too much. We also made this choice because we didn’t do much advertising at the moment so not many …..

8. We only sold like 25 more or less the 1st day we began to sell
How much to make
People knew when we would be selling, what we would be selling or for how much ( with the exception of the people we texted and the people they texted)
We only sold like 25 more or less the 1st day we began to sell
The next few days, after the word got around that we had started a “little business “ we decided to take about 30...`

9. How much to make
… Prior to how much we had sold the 1st time we figured that 23 out of 30 would be our “for sure we will sell cupcakes” and technically we would just be take 7 extra incase we had more costumers than expected.
Eventually, after selling for over a week we presumed that we would just take 27 every time which worked out really well for us.

10. And back to selling
After what seemed like one week maybe a tad more of not selling our baked good, we finally sold cupcakes again on Friday, November 8th. Why? Well since it was bell week at the high school and Friday was going to be a ”big” day because we were going to have a rally and later that day was going to be the football game against Trashmore cough, cough I mean Strathmore… as I was saying y partner and I thought it would be convenient…

11. Should I sell or should I not?
Or beneficial to us if we baked cupcakes and had another day to sell and add to our profit.
This time we had made about 32 cupcakes over all, and while making them we took under consideration what one of our customers had said which was,” these cupcakes are really good, it would be cool if you guys sold bigger cupcakes maybe muffin size or a little smaller.” So what did we do we poured more batter into the cups/ pans and made bigger cupcakes.

12. Our pricing
Of course if we made bigger cupcakes, it took more batter to do so in which case the price would have to go up a little depending on the size of the cupcake the consumer wanted. The price now was $1.25 or $1.00 which like I stated varied, but it had a good turn out because the students would still buy our product. It was also pretty funny because the leaners were willing to pay the price as long as they got their food, even if that meant owing other money.

13. Which market system was used?
I believe the market system we would be a part of is the Oligopoly market mainly because there were a small amount of other sellers selling my type of product so there was a slight amount of competition. We also fit the description of Oligopoly due to the large amount of market power we obtained. This meant we were able to decided what flavor the cupcakes would be, what price we would give them, how we would decorate them, what size the baked goods would be and so forth.

14. What effect did the system have on your profit?
The fact that our “business” seems to pertain to the Oligopoly system it has affected our profits because there were some people selling a similar product to ours and we were not the only ones selling something for the consumers to purchase. In that case we were making more profit then certain people selling something a.k.a producers, but we were not the only producers who were making money.

15. What business model did you use? Why?
My business model was a partnership and I chose this kind of model because the advantages out-weighed the disadvantages. The partnership worked out as I expected because as I had thought before there were going to be some disagreements on something's, which there were and that did complicate things a tad, but we quickly came to an agreement and worker things out. Over all, aside from the few disagreements we had and the fact that we had to split the profit a certain way, the positives still came on top. Having a partner made things slightly easier because I didn’t have to bake the cupcakes all by myself and I didn’t have to carry them all by myself to school on a daily bases.

16. In a real situation would you choose this model again?
If I started this business in real life I would probably choose this model again instead of a different one where I would have to work alone or with a bigger group of people because having a partner to work with was pretty efficient in more ways than just one, and it was a good amount to just have one more person help me out instead of having everything depend on me if I were a sole seller? or having a group of three people or more as if I was a bigger business. I guess over all it seems better in my opinion to just have one other person help you and split the profit between you two, then keep the money all to yourself and have no help or split the money with 3 or more people and somewhat share the responsibility.

17. Was there any advertising involved?
In the process there was adverting involved. I did not make this amazing commercial or anything like that, but we did take pictures of our product and use the social media to advertise. We would forward messages with the pictures of the cupcakes to all of our friends with the information people would need to know such as the price, flavor, when they would be sold and who to look for if they wanted to buy one. From there our friends would forward the message to their friends and so on therefore spreading the word. We also posted it on Facebook for friends and others to see and once again we posted the information buyers would need to know.

18. Work cited The information Traeger gave us.
The study guides I filled out.
Notes I took.
Video’s I watched on Traeger’s website.