Student Based Enterprise Project_2015

Description of School Based Enterprise

The Hartland DECA Chapter has had its current School Based Enterprise for 11

years, since we opened into our new location, at the new Hartland High School. Our

Enterprise is student-operated and is open to staff and students on campus. Every year we

strive to make The Eagle’s Roost more successful.

A great store begins with the right staff. Before the end of the every school year,

our advisor forms a list of interested candidates. The advisor interviews each student.

This interview helps us pick the finest employees for the upcoming year. The incoming

staff enrolls into Retailing and must participate in DECA. All employees are required to

have taken Marketing I, ensuring that they have a basic understanding of marketing. In

the beginning of the year we start training employees the correct way to meet customer’s

wants and needs, and how to interact with any type of customer with an encouraging and

open-minded attitude. The best returning employees are put into manager roles to help

the store run smoothly. The store is open before and after school, as well as during lunch.

Each employee has a work period during lunch that they keep for a portion of the year.

The Eagle’s Roost gives students the chance to experience real-world responsibilities and

gain knowledge in a classroom atmosphere.

Everyday tasks include transactions with customers, selecting new vendors’,

planning promotional events, monitoring revenue, stocking, supporting MDA, and using

the POS system. All tasks we do, we do under the motto that the customer comes first.

With this in mind, our SBE has been able to be successful in many ways and has a

positive outlook for the future.

Hartland DECAMichigan

Table Of ContentsFINANCIAL ANALYSIS

Explain the Nature of the Balance Sheets00Describe the Nature of Income Statements00Maintain Financial Records00Prepare Cash Flow Statements00Demonstrate the Wise Use of Credit00Open/Close Register/Terminal

00

OPERATIONS Devise/Enact Merchandise Security Measures To Minimize Inventory Shrinkage00Follow Instructions for Use of Equipment, Tools, and Machinery00Describe Health and Safety Regulations in Business00Explain Routine Security Precautions00

MARKETING-INFORMATION MANAGEMENT Scan Marketplace to Identify Factors That Could Influence Merchandising Decision00Analyze Competitors’ Offerings00Assess Trading Area00Determine Price Sensitivity00

MARKET PLANNINGProfile Target Customer00Determine Market Needs00Determine Customer Demand for Merchandise00

PRODUCT/SERVICE MANAGEMENT


Select Mix of Brands00Plan Reductions00Determine Stock Turnover00Plan Merchandise Assortment00 Choose Vendors00Identify Components of a Retail Image00

PRICINGDetermine Cost of Product00Describe Pricing Strategies00Develop Seasonal Pricing Strategies00Evaluate Pricing Decisions00

PRODUCT/SERVICE MANAGEMENTComplete Inventory Counts00Assess Sales and Stock Performance00Determine Inventory Shrinkage00Explain the Relationship between Customer Service and Distribution00 Explain the Receiving Process00

PROMOTIONPlan Special Events00Explain Types of Display Arrangement00Plan Promotional Strategy00Measure Success of Promotional Efforts00Explain the Use of Visual Merchandising in Retailing00


Use Cross-Merchandising Techniques00

SELLINGEstablish Relationship with Customer/Client00Process Returns/Exchanges00Process Sales Documentation00Determine Customer/Client Needs00Determine Suggestion Selling00

HUMAN RESOURCES MANAGEMENT Conduct Product “Show and Tell”00Follow Instructions for Use of Equipment, Tools, and Machinery00Foster “Right” Environment for Employees00Hold Special Events for Employees00


Section 1Standard: Financial AnalysisLevel: Gold

PI: Explain The Nature Of Balance Sheets

The Eagle’s Roost understands the importance of a balance sheet and continues to

keep track of the financial status of our school-based enterprise. A balance sheet only

looks at “one moment in time” to see a business’s financial state. Each balance sheet is

normally arranged the same way. It is divided into three categories: assets, liabilities, and

owner’s equity. Assets are things of value owned by the store, liabilities are what a

business owes to others, and the difference between the two is the owner’s equity. A

balance sheet can be used to compare the current year or time period to the previous years

or time periods, revealing if The Eagle’s Roost is improving or needs to improve its long-

term financial situation.


PI: Describe The Nature Of Income Statements

The Eagle’s Roost uses income statements to track our business’s revenues and

expenses during a particular time period. Income statements answer the business

question: are we making a profit. It shows how revenue changes into gross profit, and

continues to grow into a business’s net income. In order to prepare the profit and loss

statement, the POS system totals the revenue and subtracts the expenses to find the result.

This is how we get the net income, and also we see how well our business is doing.

PI: Maintain Financial Records

It is crucial for the efficiency and precision of the SBE that we keep accurate

financial records. Financial records are stored electronically on the school store’s

computer. Also our Advisor keeps a backup on a thumb drive. The Eagle’s Roost has a

computer software system that connects with the store’s register, so we can easily see the

daily finances of the business. The program allows for daily sales reports on

merchandise, which can be stored up to a year. These records are essential to the


referencing of how much profit the store is making, as well as what products are selling

better than others. In our SBE, the Advisor (Mr. Riley) is in charge of financial records,

but our store manager (Morgyn Woodruff) has access to them.

PI: Prepare Cash Flow Statement

A cash flow statement is a financial statement that shows how changes in balance

sheet accounts and income affect cash and cash equivalents, and breaks the analysis down

to operating, investing and financing activities. It flows to the income statement, which

then flows to the balance sheet. The cash flow statement is the first thing to look at

because it is the money trail of our store. This is important because we want to know

where our money is going and ensures the right amount is going to each place. We

prepare our cash flow every 3 months. In general, the statement shows current operating

results and shows cash that flows in and out of The Eagle’s Roost.


PI: Demonstrate the Wise Use of Credit

When The Eagle’s Roost first opened, the high school budgeted for it, thus we did

not to have to take out a loan. We also do not accept credit cards as a form of payment.

Buying products for our store is the only time we use credit in our SBE. We have two

examples of that in our store. The first is when our advisor buys product from Sam’s

Club. He uses his money to purchase those goods and then he is reimbursed. The other

example, the company Polar ParadICE, they send us an invoice every time we order from

them and we have a specific amount of time to pay the invoice.

PI: Open/Close Register/Terminal

In The Eagle’s Roost, each employee

clocks in at the beginning of his/her shifts and

logs onto the POS if he/she is working register

that day. Our SBE also uses register balance

verification sheets at the beginning, and at the

end, of each shift to determine how much

money was made. This shows who made

what sales, how efficient the employee rings

each customer up, and if an employee is fully

doing his/her job. If there is any overage, or

anything under, it is recorded on the sheet. At the end of each shift, the registers are again

counted, to make sure that a certain amount of each type of change is left in there, and

then the register’s profit is taken out and recorded and entered it into the POS system.

This reveals an employee is balanced, or over/under in their counting with their sales.


The employee then enters that they are leaving $20 in the cash drawer, and puts

the rest of the money in the deposit envelope for that slip. The sheets are then counted

with the money in them to ensure that the correct amount is left in, and then the sheet is

matched with the daily financial records of that register. This process is able to track how

much money is flowing in and out of the registers at a time. This is crucial for precise

SBE record keeping. This way, the store manager can recount all the money and verify

the amount of sales and profit made.

Section 2Standard: OperationsLevel: Gold

PI: Devise/Enact Merchandise Security Measures To Minimize Inventory Shrinkage

The security procedures used by The Eagle’s

Roost decreases store theft. These procedures include

the use of convex mirrors, locked cash drawers, video

cameras, and training employees on security skills. All

the security measures are used to guarantee our school-

based enterprise’s success.

Our employees are constantly watching over

the merchandise in the store. We always have at least one employee acting as security in

every lunch shift. That employee is constantly moving around the store to ensure security

in all areas. Also all of our employees are trained to watch for possible shoplifters. We

likewise recognize that theft is not only from outside persons, but can also be within the


store personnel. For this reason, we have a $100 reward for turning in an employee that is

stealing from the store.

The convex mirrors we have are located in

two separate corners of the store and face towards

the merchandise counters. We use these in order to

get a complete view of the store. We have three

video cameras in the store and two in the backroom,

one of the general backroom and one over the safe.

We have a screen for the cameras in the manager’s

office, which allows us to monitor, and analysis any situation that might happen in the

store. We can search any date and time and see what has happened in the store and back

room during those times.

Our cash drawers are locked to anyone who is

not running the register that day. The only time they

open is if someone makes a transaction or if the

cashier is counting money before their shift. Only

lunch managers, the store manager, and our advisor

(Mr. Riley) can open the drawers when they are not

logged in as cashier at the time. All of these

procedures we use are to help prevent theft and gain

the maximum profit.


PI: Follow Instructions For Use Of Equipment, Tools, And Machinery

Proper instructions need to be followed regarding nearly every task in order to

have a successful business. In the beginning of the year, every employee are required to

pass several quizzes on how to carry out operations in the store. These required training

sessions are at the beginning of the year, well

before our School-Based Enterprise opens.

Every employee is educated on how to

operate registers, prepare food, and keep an

orderly and clean workplace. We also keep

instructions for making cookies by the cookie

oven, instructions on using registers are kept in a

place where each employee can easily see them. Proper obedience to compliance with

equipment instructions is important in order to reduce risk, injury, and hazards in the

work environment.

PI: Describe Health and Safety Regulations in Business

When accidents happen, proper safety

precautions are practiced. We have a first aid kit

hanging on the wall right by the manager’s

office. If a worker is injured, employees are

taught to first assess the situation. If it is minor

injury, the injured worker can go to the fist aid

kit his/herself or ask for help. The wound is


disinfected and covered with the correct bandage. If the injury is major, another worker is

to first make sure the injured employee is safe and not in any danger from the injury, then

report to Mr. Riley and brief him on the situation.

We, however, understand that the best safety measures

are the ones that avoid injure. These include wearing

mittens to get cookies from the oven, or to not leaving

items on the floor. Our safety measures are simple and

logical, but must routinely be enforced to ensure a

healthy workplace.

PI: Explain Routine Security Precautions

Daily security measures are needed in order to have a successful business. Every

day we lock doors that are not in use, lock our display case at all times, and lock the cash

drawers after counting money each shift. If anything suspicious happens, we also look

over our security footage. All of these simply task have ensure our SBE remains

prosperous.

Section 3Standard: Marketing-Information ManagementLevel: Gold

PI: Scan Marketplace to Identify Factors that Could Influence Merchandising Decisions

Our school based enterprise has encountered many problems with the new health

regulations, price happening to be one of those. The new USDA Regulation has taken


away all foods with high sugars, high sodium, and high fats. Our sales in the store have

decreased immensely, and we are still trying to find ways to get sales back on track.

An economical change with our economy would be the recession recently ending

and the unemployment rate is very low, which leads to more people in our community

having jobs and working. With parents working more, and students having part time jobs

it allows the kids to have a little extra spending money in their pockets to come in the

store and buy products throughout the school day. A social trend we have encountered is

going back to the USDA Regulation and the new

health regulations. This new law is widely spread

throughout the country and every school is learning

how to work within it. Our SBE has taken out many

of our top selling products, but we have also

learned to replace the empty spots with new

products that will spark student’s taste buds. A few

examples would be pop tarts, chocolate chip cookies, muffins, and chips. Every one of

these products fortunately had an alternative healthy choice to go to. Students enjoy

coming in The Eagle’s Roost and buying a snack or a drink that has the equivalent flavor

to a sugary item.

Although it has been tough working with these requirements, the employees have

managed to offer the next best products we have. The surveys will still continue and test

tasting will take place, but we want to make sure that the students are happy with what

they purchased and will want to come in again and buy more.


PI: Analyze Competitors’ Offerings

Our main competitor is the Cafeteria. One of the

products we both sell is cookies. However, we did a detailed

research on the best cookies to sell that would still fit the health

code regulations. Because of that, we have better tasting

cookies and better quality for and lower price than the

Cafeteria. We provide for many of the cookie-lovers in our

school.

PI: Assess Trading Area

The trading area covers where a store's

customers are coming from, how many customers

you have in a trade area, and where to look for more

customers. We are limited to the staff and students

of Hartland High School, which makes our target

market about 2000 customers. We are also limited

mostly because of our location. We are located off of the lunch room/commons, on the 1st

floor. We are not close to the front doors or the Gym, so we are limited to whoever is in

the commons area when we are open.

PI: Determine Price Sensitivity

Our current top seller in The Eagle’s Roost is

our Polar ParadICE slushes. How we price those affects

our inventory turnover greatly. One flavor in particular,

Blue Raspberry, is greatly affected by pricing because


this is our most popular flavor we have. On most days, slushes are $1.50. However on

Tuesdays you can get two slushes for $2.00. If we don’t; keep up with our stock, we often

are out of this flavor, which can put customer loyalty in danger. However, if our price

was too high, students would not want to buy slushes and we would have no turnover at

all.

Section 4Standard: Market PlanningLevel: Gold

PI: Profile Target Customer

In our school based enterprise we target a variety of customers to ensure that the

sales stay at a steady pace. High school students would be our ideal customers

considering they walk by the store during passing time everyday. A main problem the

school has always encountered, is trying to get the freshmen to open up and feel more

comfortable in the store. On Fridays we offer a discount on our slushes to only freshmen

to help them feel they are contributing

to the store and want to come in. This

discount not only gets students to

come in, but it gives a chance for them

to look at all options in the store and

potentially buys more than slush.

Because of this discount, we have

been noticing more underclassmen

coming in and purchasing products.


PI: Determine Market Needs

This year is a struggle for the SBE and we are learning to work with the health

regulations as hard as it can be. Because there are so many products that we can not sell

from last year, we try to find the next “best thing.”

To find out what students like most, the employees

of the store go out to every lunch and take surveys

with different types of new products. After

calculating the results from each survey we can then conclude what we need to invest in

and put it on our shelves as soon as possible. Gordon Food Services (GFS) have a variety

of products that meet the regulations.

PI: Determine Customer Demand for Merchandise

In our school based enterprise we track our sales by

using the POS computer system. This computer

system not only tracks our sales for us, it does a lot

more. Each product in the store has a different barcode

to bring the price of the product up on the screen and it

will then go into the computer to track the sales. After

weeks or months go on, the system adds all products

together and gives you a pretty good idea about what

is selling the most and what we need to keep on our shelves at all times. The SBE not

only uses the POS system to determine demand for certain products, we also get feedback

from our customers. If we hear a lot of good or bad things about a product we will go

further into investigation to see if there is something wrong with the product.


Section 5Standard: Product/Service ManagementLevel: Gold

PI: Select Mix of Brands

The brand assortment throughout our SBE varies. The Eagle’s Roost has a very

wide variety for students to choose from. Although we have to work through the health

regulations, we have learned to manage and offer the best products to students as well as

the best deals. Our products can range anywhere from

clothing merchandise (shirts,

sweatshirts, shorts, and sweatpants) to

different accessories (scarfs, mittens,

lanyards, insulated mugs.) It has been very difficult to see a huge turnover in a certain

product due to the health regulations. The Polar ParadICE slushes are our best selling

product since the 2014 school year has begun. Our employees make a different slush each

day. Students fell in love with our school store cookies last year, but this year we had to

improvise and find a cookie that fit in with the regulations. The employees of The

Eagle’s Roost went out and found a cookie that satisfies the majority of the student body.

GFS cookies are a good seller for our store and they produce more customers. The

Eagle’s Roost carries many brand named

products including Polar ParadICE,

Nature Valley, Capri Sun, Wrigley,

Trident, Kellogg and many more. The brand

name does make a huge different in our sales because if a brand name is more common


and popular than others, students will know more about it, therefore the product sales will

increase.

PI: Plan Reductions

In order to keep our SBE running in a positive way, we need to take precautions

on our products. Our mark downs can consist of number of reasons, however, one of the

main reasons is if an expiration date is approaching. We tend to keep an eye on the

products that are refrigerated more so than the products that are on our shelves. Some of

the products in our school store that are refrigerated would include applesauce, fruit cups,

and pudding. These products could potentially

spoil and cause the customers to feel sick.

If we are noticing that one of the products

is going to reach an expiration date in the

next few weeks, the product will be

discounted to a fair price so students will

purchase the item. For example, the SBE

recently invested in different flavors of muffins

that meet the regulations. If we notice that an expiration date

is coming soon for one of the muffins we will put a discount on them for buy one get one

free to ensure that we do not reach the date and everything is healthy and fresh.

PI: Determine Stock Turnover


Due to the health regulations, we had to minimize many of our fast selling

products, however we still have all flavors of gum on the shelves to sell as well as Polar

ParadICE slushes. These two products always have a lot of stock in our back room to

ensure we never get low. To avoid overstocking in our SBE we make sure to research

past rates of turnover in our SBE to decide how

much product we need to have in stock and in

our storage room. However, the products that

have a faster turnover rate can never be

overstocked. An example of this would be gum;

all flavors of gum on our shelves tend to have a

very high turnover rate. Therefore we make sure

that the storage room has plenty of stock to

ensure we never run out of this product.

PI: Plan Merchandise Assortment

The Eagles Roost carries an assortment of products. These products can be

organized by their appropriate product line, that being a group of related products. The

Eagle’s Roost has five primary product lines which include a(n): food line, beverage

line, apparel line, spirit items, and a cosmetics line. The food line includes a wide variety

of products including granola bars, chips, Pop-Tarts, fruit cups, applesauce, and gum.

With the depth of product in the granola category we have such items as: Nature Valley

Crunchy Granola Bars in which we carry the Peanut Butter and Oats’n Honey flavors.


We also carry Quaker Chewy granola bars in three flavors along with the Kashi

Chocolate Almond & Sea Salt Granola Bar. Our beverages consist of two separate lines

of product. In the cold/frozen line we offer Polar ParadICE slushes along with assorted

flavors of Capri Sun 100% fruit juices. We carry 11 flavors from Polar ParadICE along

with mixing our own special flavors of Mystery, Cherry Limeade, and Strawberry

Lemonade. Our hot beverages include 24

varieties of Bigelow tea. We have a tea that will

match anyone’s mood or liking. The apparel line

includes shirts, shorts, sweatpants, sweatshirts,

hats, and a few accessories. Within the apparel

lines we have varying styles, colors and sizes

available for sale. The spirit items in the store

include: 3 types of lanyards, mugs, license plate covers, window decals, and car flags.

The smallest line in the Eagles Roost would be the cosmetic line, which includes one

product; Carmex Lip Balm. The cosmetic line has a very narrow product depth because

there is only on size tube that we carry. A limited product mix can reduce the number of

customers because it may not meet the customer's wants or needs. The food line has the

largest amount of products allowing for a greater impact on the purchasing choices the

customers can make. We try to carry the largest variety, sizes, flavors, etc., to take care

of our customers in the best possible way.

PI: Choose Vendors

When choosing new food vendors for the school

store, there are three main questions that must be asked.


First, does the vendor have USDA approved products? If this is a no then we don’t look

into that vendor beyond that point. Second, does the vendor have products that are

appealing to our target market? When asking this question we often do market research,

which includes surveys and samples. Finally, does the vendor have prices that allow us to

make a profit, while keeping the product within our customer’s budget? This is an

extremely important question to our SBE because the majority of our customers are high

school students.

An example of this is when we took GFS as a new vendor. First, we acquired a

list of GFS products that fit the USDA regulations and selected products from that list

that were appealing to our target market. Next, we went to the Brighton GFS and got

prices on those products, which then we calculated price per unit per case to see if we

could make a profit. Finally we chose the products that allowed us to make a profit and

price them within our target market’s budget.

PI: Identify Components of a Retail Image

As an employee of the school store we want

customers to view the environment as a community-

oriented store and have customers feel welcome

when they first walk in. For example, if a student

walks in the employees are trained to say “Hi

welcome to the school store” and “Thank you, have

a nice day” after they purchase an item. This makes

people happy and want to come back to be a part of a friendly environment. During each


holiday, the store is decorated with fun colors and different color paper in our lights to

get customers in the holiday spirit. Christmas music will be played during Christmas

time, as well as Halloween spooky music will be played during Halloween time. These

aspects of our store let the customers know that we want it to be a friendly environment

and encourage people to come in and purchase products.

Section 6Standard: PricingLevel: Gold

PI: Determine Cost of Product (Breakeven, ROI, Markup)

Ex: Trident Gum

How many packs in 1 box of Trident Gum 14 packs

How much does one box cost $8.38

How much the store sells one pack for $1.25

How many packs must the store sell to equal the cost of one box about 7 (6.7) packs

How much Profit do we get for one pack $0.65

How much Profit do we get for one box $9.10

This graph shows the Break Even, ROI, and Markup of a popular product of the

SBE, Trident Gum. The break even is the point of sale in the business where sales equal

the expenses; there is no profit and no loss. On our Trident gum sales, the breakeven

point is at seven packs of gum, or at an average sale of $8.38. From there, we can

determine that our ROI (return on investment), or how much profit we are making on a


product after the break even, is at 7 packs at an average profit of $9.10. The Markup

price, the difference the cost of the product and its selling price, is $0.60.

PI: Describe Pricing Strategies

The SBE takes great consideration when determining the pricing of our products.

When we place an order we divide the unit price by the quantity to clarify how much we

spend on each individual product. From this base price we round up to the nearest

"quarter sale" or round up to the nearest number divisible by twenty-five cents. A major

consideration in pricing as well is comparing our numbers to our competitors, and

analyzing these numbers to make us competitive. The cafeteria of the school sells cookies

as well; at a higher price, but lower

quality. This ensures that we can

maximize profits as being the cookie-

purchasing site of choice.

Implementing these prices into the store is

an important aspect of the SBE. We

analyze trends in purchasing behaviors of

our target market and make adjustments,

or provide sales, where we think is

necessary. Sometimes limiting the number of pricing options available is the best way to

maximize profits off of a certain product. By only selling large slushes at a set price, we

are able to make the most of this product in sales.

PI: Develop Seasonal Pricing Strategies


Michigan experiences all four seasons of the year, which gives us a great

opportunity to sell certain products throughout the seasons. Some of our more popular

products go on sale depending on what season it is. In the past, each season had a favorite

snack, or drink, that we took advantage of. However with the USDA regulations, we now

use the different seasons to promote our new items such as; Otis Spunkmeyer chocolate

chip cookies, and new flavors of 5 Gum. Seasonal advertisement increases the

productivity of our business.

Looking at our sales we can conclude that when it is cold outside; students will

come into the store wanting a product to warm them up, and when it is warm outside,

students will want an ice-cold product such as; Polar ParadICE slushes. The demand for

our warm drinks (many flavors of tea) goes way up in the winter; therefore the price will

increase to ensure the school store is making enough profit.

PI: Evaluate Pricing Decisions

This year in the school store the prices have increased due to the fact that we have

not made enough sales. Because the school store is the only holder of slush, it encourages

students to come in and buy one if they have a sweet tooth. Last year, our sales were

much higher than this year, because we did not have the USDA regulations but we are

learning how to work with this problem and how to get our sales to rise. We have

searched and found that the store could sell frozen yogurt to students. This machine

should come in by the end of January, and we are already planning on different types of

flavors and toppings. Looking at our surveys and asking our fellow students around us

have concluded that having this yogurt machine in our store will significantly increase

sales.


In Hartland there is not a frozen yogurt shop to go to so students will not be able

to go after school for a nice snack, so instead they can stop by The Eagle’s Roost before,

during lunch, or after school for a refreshing snack. We are undecided on our pricing for

the frozen yogurt because we need to see the serving sizes once the machine comes in

and we need to evaluate what is a good price to students, yet a good price to the business

to ensure we are making a profit.

Section 7Standard: Distribution/Channel ManagementLevel: Gold

PI: Complete Inventory CountsOur School Based Enterprise conducts

inventory based on a combination of a physical and

perpetual system. A physical inventory track means

that our business physically counts each product in

stock and keeps meticulous records on the quantity

of each at that time. This is done by closing the store periodically, usually in the time

between three or four months, and having the staff divide sections of product and count

and organize. Another part of our system is perpetual tracking, or using a computer

system to keep records of our product inventory on a transaction by transaction basis

throughout the period. We utilize our register programming software that allows us to

create a set minimum and maximum of product available in the system at a time, keeping

a more accurate measure of how much product we have, and how much has been sold. By

applying both systems, we are able to most precisely gauge how much inventory we

possess.


PI: Assess Sales and Stock PerformanceIn the beginning of our SBE year, we started selling popcorn. The goal of this sale

was to generate revenue by bringing customers into the store and getting them familiar

with our new, government regulated, product, with a classic customer favorite, slushes.

The popcorn was free on Friday’s in hopes that the customer would pair it with an ice-

cold slush, a staple of our store. This sale went incredibly well, which was measured by

the fact that we had to continuously make slush juice and popcorn prep to keep up with

the demands of the orders. A marketing tactic that we instilled was the use of suggestive

selling, in which we made the popcorn readily available, only to increase the appeal of

the product, the slush.

PI: Determine Inventory ShrinkageUnfortunately, inventory shrinkage, the loss of product between the point of

manufacturer and point of sale, does take a toll on the finance of the SBE. Shrinkage can

be accounted for in a myriad of ways, but the most common occurrences are in damage,

human error, theft, and sample product. Product can be damaged between the

transportation of manufacturer to the store, making it unsellable. In human error, a label

could be misread, which causes a misunderstanding in product storage, spoiling the

quality. Products can also be stolen. Sample products are a terrific way for the customer

to become familiar with the product before purchase, but this could also turn the

customer away, putting the business at a loss. Shrinkage affects product availability,

which relates directly to sales, which ultimately can create a deficit to the school store.

PI: Explain the Relationship between Customer Service and

Distribution


There are many factors, both internal and external, that can affect the SBE’s

ability to provide customers with goods for purchase. One such factor is the timing of

orders. When a product is out of stock and needs to be reordered, there is a time in

between where the product will eventually “run out,” creating an inconvenience to

customers that rely on that product purchase.

Another aspect is stock rotation. Stock rotation

is a way to mitigate stock loss by pushing

products with earlier “sell by” dates to the

front. During the transition period between

new orders and the old, some products start to

come close to that date, so it is important to

push those first in order not to take a loss on

them. The Eagle’s Roost takes great consideration to ensure that there is product

available at all times, and that the product that needs to be sold, will be sold. This can be

done by offering alternative purchases to regular products that may not be available, and

by using suggestive selling to push products to the customer’s attention.

PI: Explain the Receiving ProcessThe receiving process is especially

critical to the operation of the SBE; not only in

handling new product, but when handling

current product. When new orders enter the

store the first thing that must be done is to make


sure the product matches with the order receipt. We check for quantity and any physical

damage; if any problems are found than we refer back to our advisor. If everything

matches up with the receipt, then we unload the product in the back room of the SBE and

begin sorting it out so we can quickly and efficiently present it to our customers.

It is important to recognize new merchandise as an asset to the growth of the store. This

product is handled in a more systematic way and generally introduced on a slower

process than the other merchandise. To begin, it is important to check that is meets all

health codes and expectations that are integral to our store. Then the product’s barcode

number is entered into our computer register software system; along with the product

name, price, and maximum/minimum quantity available. When this is done, it is scanned

to make sure that is has been inputted properly. Finally, the product is strategically placed

in an area where it will reach maximum exposure, and the best chance of sale.

Section 8Standard: PromotionLevel: Gold

PI: Plan Special Events

In our school based enterprise we are constantly trying to create new and

interactive events that draw in and engage our customers. An example of such an event is

our free popcorn Friday’s. On the first Friday of every month the SBE pops fresh popcorn

and distributes it, free, to all lunch hours. Announcements are made every lunch hour to


bring awareness, as well as one of the employees walks around with a promotional sign,

interacting with potential customers. This event specifically garners a large amount of

foot traffic and results in higher amounts of sales by utilizing link sales and up selling

between the popcorn, and a deliciously refreshing slush that the customers can

conveniently purchase there.

Other promotional plans include taking advantage of seasonal merchandising. During the

Christmas season, customers can come in and pay to take their picture with Santa, after

which, we put all our proceeds towards our MDA fund. This limited-time event allows us

to stay connected with our market during the chaos of the season and provide

entertainment. The customer can take home a festive picture, our SBE gains more

recognition, and our MDA fund receives a significant boost.

The Eagle’s Roost also keeps tradition alive through promotion, especially through

causes we are passionate about. A fundraiser we keep throughout the year is a cash-drop

bucket for the Muscular Dystrophy Association. This simple act, of putting loose or

excess change that would be forgotten anyway, into a bucket with a MDA label on it for a

good cause is a great motivational technique. Our customers are encouraged to donate

and our employees are encouraged to sell with the bucket being right at the point of sale.

We have had great success with these promotions and hope to continue this trend.

PI: Explain Types of Display Arrangements

The most common type of display arrangement our SBE applies is an open-floor

concept. Upon entering the store, the customer will have a large, central, open space to

look around in and examine just what our store has to offer. We use many types of


displays in the store, but the most common, and most effective, is the use of glass display

cases. These cases offer convenience in appearance of what is available, but also protect

against theft. The concept of closed merchandising can be most accurately used here

since the cases offer the highest impact to the customer. The counter space that the cases

provide is primarily used for the interactions between the employees and the customers.

In the swing area, the cases barricade the front of the store from the back. The Eagle’s

Roost also uses hooks and platforms against the walls of the store for added space and

appearance.

Outlier products such as Chap Stick and lanyards that may otherwise go unnoticed can be

promoted and seen on the walls. This process also works well in dual positioning, by

promoting lanyards on their own, but also with the sweatshirts and tee-shirts, promoting

link sales.

Our school store is also fortunate enough to have access to a large window display unit.

We often use it to attract customers with eye-catching decorations that have been set-up

for the appropriate season.

PI: Plan Promotional Strategy

Our SBE believes in the power of improvement, and that can be seen through our

goals for this year. Due to new government regulations, we have had to cut out many of

our best selling products; our main goal is to increase awareness and excitement for the

products that we still have, specifically our core range products such as slushes, gum, and

school apparel. We would ideally like to

create more promotional awareness as


well of current sales and changes in the store, and just overall stay more connected with

our target customer. Based on our current level of prioritized needs, and the central

location of our store, we have determined that a promotional budget this year is not

necessary to effectively promote our SBE. We plan to fulfill our goals by taking

advantage of current trends among our target market. Such trends include creating an

Eagle’s Roost Twitter Page, updating our current Facebook page, and create an

interactive “hashtag” with our target market. We will also take advantage of tried-and-

true methods of advertising such as posters, announcements, and, still most effective,

word-of-mouth.

PI: Measure Success of Promotional Efforts

The effectiveness of any promotional

strategy is only as good as the amount of

awareness it raises. An example of a

successful promotion was the Free Popcorn

Friday sales. The purpose of this sale was to

raise awareness of the variety of product we

still had in the school store. Customers who

would take advantage of this deal would

come in and see that we still continue to sell

slushes.

To promote this event we began a word-of-

mouth trail, a preceding week of lunch hour announcements, and benefited from the

olfactory marketing that the popcorn enticed the target market.


We ultimately evaluated the success of this event by how much foot traffic we gained

into the store and by the sales of that particular day. General awareness for the store, and

the products, went up; we deemed the promotional efforts a success.

PI: Explain the Use of Visual Merchandising in Retailing

We are not just selling

products at the SBE; we are selling

the appearance of the products as

well. The appearance is the first

thing that our customers take

notice of when seeing our store,

and we want to make sure that it is

a memorable one. We make

precise plans when deciding what

goes into our external display case and the decorations inside the store. A proper,

creative, and enticing design in the presentation of a product can make a huge difference

in the purchase of it. Our slush machines are bright, vibrant colors that can be seen right

when you walk in with a sign above them that glows. This draws the eye right away and

makes the product visually appealing, sending a subconscious thought that the product

must be as good as it looks. We keep all the products in a certain flow in the cases, but

keep them interesting as well by setting them in certain ways. For example, in one of our

glass display cases for our school apparel, we hang up the jerseys and the lanyards in an

interesting fashion. The more visually engaging product has a higher chance of becoming

an impulse purchase to the customer, rather than a product that is simply laid out.


PI: Use Cross-Merchandising Techniques

The SBE utilizes many forms of promotion in order to most effectively encourage

cross-product sales. The most common form of promotion we partake in is up-selling,

that is, being able to convince a customer that the product they came in for could be

better served with an additional product. We do this by creating sales such as our slushes

being sold, two for two dollars, encouraging customers that slushes are meant to be

shared. Another way we promote cross merchandising is by showcasing certain products

together. When customers see a hat matched with a pair of mittens, they seem them as a

package, that one cannot be had without the other.

Through media such as daily morning announcements, student news plug-ins, and

Twitter, promotion can be executed easier and more efficiently than ever before, creating

an opportunity for joint purchases to thrive.

Section 9Standard: SellingLevel: Gold

PI: Establish Relationship with Customer/ClientIn our SBE, we feel that creating, and fostering, a good customer-store

relationship is crucial in the development of our business. One way that we achieve this

relationship is by instituting certain tactics among the salespeople to create a more

welcoming and hospitable environment that customers want to engage in. An example of

such tactic is by constantly having upbeat music playing in the store while the sales

associates dance. This has the effect of more customers feeling comfortable enough to

come in and join the fun, if they see our employees are having fun.


Another method we use is weekly announcements during each lunch hour. These

announcements contain messages of anything from promotions were having to new

products we have in the store. This keeps our customers up-to-date on what is happening

and encourages them to come in and explore.

Most of our customers enjoy interacting with the salespeople on a more

competitive, game-like way; for this reason, our miniature basketball court is very

popular in bringing people together and breaking down barriers.

PI: Returns/ExchangesThe Eagle’s Roost prides itself in customer satisfaction, so we immediately want

to rectify any situation that requires a return/exchange. For food products we will make

any exchange if the packaging has been physically distressed, or any return if the product

proves to be unsatisfactory in any way. For articles of clothing, with a proof of damage,

we will exchange the item for a product of equal value, or, the customer can accept a full

refund with a receipt.

With this policy in action, we had an instance where a customer had come in and

shown us a hat they had purchased from the SBE a year prior. The logo on the hat was

crooked and they wanted to know what their options were. We exchanged the hat for a

better version that the customer was satisfied with. There is no statute of limitation on

return/exchanges, so long as there is proof of damage.

PI: Sales DocumentationWith our current system of registers in our SBE we do not provide receipts for

each individual purchase, nor do our employees track their individual sales throughout

their shifts. Our computer software in our registers has an icon for each product we have

in the store, when ringing up the customers purchases, all that is necessary to do is choose


which icon is being bought. When the purchase is made, the software keeps track and we

are able to see how much of what product is being purchased.

Sales documentation is critical in our store as it allows us to analyze how well a

product is selling and it is the most useful resource in planning new marketing and sales

strategies.

PI: Customer/Client NeedsTrying to determine all the

needs of our clients can be difficult,

which is why we have simple,

routine questions to ask to help

organize these wants. “How can we

help you” is the first, immediate

question we ask. This just gives us a

basic idea of what they may have

come in for and if we could assist

them in any way. “What brought you

in today” question is one that we ask

in hopes that the customer will give

us an idea of what they were looking for, or how they are feeling specifically. “Is there

anything in specific you were looking for” this gives us a more narrow understanding of

what they are asking for, and even makes the customer reflect on their purchase choice to

determine their own needs. “Will that be all for you today” determines whether or not the

customer is sure that they are ready to make this purchase; this is more of the “closing”

question.


PI: Suggestion SellingWhile most customers who come into The Eagle’s Roost know exactly what they

want, other customers are more indecisive and not fully aware of what we could offer.

For those customers, we try to delicately guide them towards, what we feel, would be

better purchasing options. We guide them by enthusiastically reminding them of any

current sales we may have going on that week. Most customers appreciate the reminder

and wish to take advantage of it. Another way we suggest products is by offering our own

positive opinions on them. By saying that we prefer a certain brand, or flavor, that the

store offers, the customer is more willing to purchase it. Trying not to seem pushy or

irritating to the customer can be difficult in perceptions, however, it is in the

presentations that counts. Our employees speak in enthusiastic, positive tones that

encourage the customer, and the product, making them more susceptible to purchase.

Section 10Standard: Human Recourses ManagementLevel: Gold

PI: Conduct Product “Show and Tell”

Many of our products we sell are very low tech. Most can be sold through the

scanner in the POS system. However, for cookies and slushes we must do special training

to ensure efficiency and safety. For these types of products, we close the store for a day

and train all employees on the proper way to make and serve the products. We also train

them on how to sell them on the POS system.

PI: Conduct Contest to Motivate Employees


To motivate employees to do their jobs well we do several competitions and

incentives. To help employees want to sell more products, every month we give the

highest seller a free slush and cookie or popcorn coupon. To make our employees want to

do an excellent job on the sales floor, they know that if any of the managers notice that

they are doing a phenomenal job, the manager can give them extra points for the class.

PI: Foster ‘Right” Environment for Employees

The best way to find out how we

are fostering the right for employees, we

asked the employees. They say that The

Eagle’s Roost is a positive place to work

that they get excited to come and work.

They trust and feel like they can come talk

to their managers. They also like that all

the managers are enthusiastic about their

jobs and make the employees want to be

enthusiastic too.

As a SBE we strive to ensure a

positive working environment. This is first reached by making the store a safe place for

all that come into it. Anyone that has a concern knows that they can talk to any of the

shift managers and if needed the store manager. All the managers are 2nd year Retailing

students. So they all know the operations of the store and are able to help out when need.

From a business perspective, we make sure that all employees have an opportunity to


take part in the different parts of the store including counting inventory, ordering, picking

up orders, stocking, selling, and promoting.

PI: Hold Special Events for Employees

We have 3 main events that are held for employees to help boost morale or

provide training opportunities. The first happens in the beginning of the year where we

do the training of the store. When everyone passes the training, we have a pizza party.

The second happens around Christmas where we have a Christmas Party and there is food

and everyone gets a free slush. The final one is starts in the end of May where our advisor

cook food for us a couple times a week. This is during the time when we are preparing

the store for being closed in the summer.


Student Based Enterprise Project_2015

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