BUS 202 Collaborative Work Environments

Beedie Product Management Experience: The Pitch

In your Bus 202 tutorial, you will participate in The Beedie Product Management Experience. As part of
this experience, you will be assigned to a Product Group, consisting of approximately 15 members, which
will manage a Beedie product to be sold in the SFU Bookstore. Within each Product Group, there are
three Task Teams: Marketing & Promotions, Product Research & Management or Accounting &
Operations. These products will be sold at the Burnaby, Vancouver, and Surrey Bookstore locations, as
well as online.

In Tutorial 4, each Product Group will pitch a business proposal to a panel of judges who will approve or
deny the pitch. The presentation will be 10 minutes maximum and should include at least one
representative from each Task Team. Bring your presentation on a USB key. After the presentation, there
will be a question and answer period with judges. Any calculations or supporting information that are not
explained in full during the Pitch itself should be included in slides at the end of your presentation. You
may refer to these slides during the question and answer portion to provide further explanation if asked.

Each Product Group will also submit a resource allocation for how you will move forward and a copy of
your presentation. You will submit these through Canvas by 11:59 pm the day after your Pitch. Refer to
the rubric in Canvas for details.

Assignment Breakdown
The pitch concept is based on the Business Model Canvas as discussed in tutorial 2. As a Product Group,
you will cover the following Canvas blocks. Detailed requirements are found in each Task Team’s
instructions. See the rubric in Canvas for how this assignment will be graded.

• Marketing & Promotions Task Team

o Canvas Building Blocks: Customer segments and channels, including budget proposal and
sales target

• Product Research & Management Task Team

o Canvas Building Blocks: Value propositions and customer relationships, including market
research proposal

• Accounting & Operations Task Team

o Canvas Building Blocks: Revenue streams and cost structure, including forecast of sales
and revenue, breakeven volume, risk management, and Product Group resource
allocation

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Beedie Product Management Experience: The Pitch

The Business Model Canvas

Created by Alex Osterwalder, the Business Model Canvas is a tool that helps leaders map, discuss, design
and invent new business models. This tool involves nine steps, outlined below.

Customer Segments
Who are the people or organizations for which you’re creating value? What are their attributes (For
example their needs, behaviours, demographics, geographic locations, etc.)?

Value Propositions
What value does your business create? Value is often created by a service or a product which solves a
problem or satisfies a need that customers have.

Channels
Which touch points are you using to communicate with customers and deliver value? Touch points are
any point of contact between buyers and sellers. In your case touch points will only include
communication with customers.

Customer Relationships
What type of relationship are you establishing with your customers? Are you simply providing
information or are you guiding them through a process? This is where you determine how involved you
want to be with your customers.

Revenue Streams
How do you generate revenue? Most business have multiple streams of revenue, but in your case you will
only be considering product sales at the Bookstore.

Cost Structure
What are the costs associated with your business model? While cost structure refers to the entire
business it can sometimes be divided into the costs of resources, activities and partners.

More information on the Business Model Canvas and the nine business model building blocks can be
found at: www.businessmodelgeneration.com/canvas/bmc

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Beedie Product Management Experience: The Pitch

Marketing & Promotions Task Team

The Marketing & Promotions Task Team is responsible for discussing the following items in the pitch:
customer segments, channels, budget proposal and sales target. If not shown in full during your Pitch,
please ensure there are slides at the end of your presentation that show your full budget proposal and
sales target explanation. You may use these during the Q&A portion of your Pitch if further explanation is
needed.

Customer Segments
Briefly describe the customer segments you have chosen to target. These are the same segments that you
chose in the Pre-Work Assignment.

Channels
Briefly describe the channels you have chosen to reach your customer segments. Make sure to explain
why you chose these channels (e.g. cost, time required, effectiveness, etc.) and be specific about how you
plan to use these channels (e.g. what type of event you will plan, how will you attract customers, where
and when it will occur, etc.). A list of potential channels is available on the following page. You must
select at least one event (e.g. product awareness, pop-up shop or sidewalk sale) and every member of the
Product Group must participate in some way. You are also required to reach out to your TA, Instructor, or
Coordinator to discuss your event plan in advance.

Budget Proposal
Each Product Group will be awarded a total of $100 to be used towards the marketing campaign and
market research efforts. You are encouraged to use the entire budget and you are required to prepare an
accurate, reasonable and well justified budget proposal that outlines how you intend to use your budget.
Any unused funds must be submitted in week 11. An example is available on the following page.

Note: As you implement your campaign, you will learn more about your product and customers. You are
eligible to submit a request for additional funds (up to $50). Requests for additional funds should be
emailed to Desirae Stack and must demonstrate what new information has led you to require more
funds, how you intend to spend the funds and what value you expect to generate.

Sales Target
Outline the increase in sales that you hope to achieve as a result of your campaign. Your targets should be
expressed weekly (e.g. our event in week 8 will increase sales by 100% from 5 units to 10 units). Explain
why you chose these numbers. This sales target will be used by the Accounting and Operations Task Team
to forecast sales and revenue. At the end of the semester, successful Product Groups will be expected to
demonstrate how they have positively impacted sales for their product.

Marketing & Promotions Timeline

Prepare a timeline for your Task Team that shows the tasks to be accomplished from week 5 to the
end of week 11 and the members responsible. You are encouraged to use resources from other
Task Teams in executing your campaign (e.g. to promote and attend events, social media, etc). This
timeline will be used by the Accounting & Operations Task Team for the resource allocation.

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Beedie Product Management Experience: The Pitch

Potential Channel Options

Social Media
• Social Media Ads ($): Create and buy targeted ads using social media. We strongly urge you to consider the
value of these campaigns, where customers will most likely view ads, and the ability to impact sales.

Events All groups must hold at least one event. Maximum 2 Bookstore events (e.g. Pop-Up, sidewalk). Product
awareness events are unlimited. See Canvas BPME Frequently Asked Questions Discussion for more details.
• To book a table for events contact: Desirae Stack for WMC tables (free), or SFSS for AQ tables ($10+tax)
• Product Awareness ($0+): Plan, promote and ensure attendance at event, or partner with an existing
event, to promote products and increase awareness among potential customers. No sales involved.
• Pop-Up Shop ($25): Promote and conduct sales in a location of your choosing. Credit card payments for all
products and cash sales for products $10 and less. Group takes payment through Square technology. No
staff present.
• Sidewalk Sale ($25): Promote and conduct sales outside Bookstore or WMC. You coordinate with 4+
Product Groups ($25/each) and Bookstore provides staff to process cash, credit or debit.
• Convocation Sidewalk Sale ($25): Same as the Sidewalk Sale above except this event takes place on the day
of the Business Convocation ceremony). Exact time and location to be confirmed.

Product Feature with Bookstore

• Feature Product Placement in Bookstore ($30): For one week your product will be featured in a defined
space with an in-store poster to advertise product in all three Bookstore locations. One product per week
maximum.
• Feature Product on Bookstore’s Online Presence ($30): For one week your product will be featured on the
Bookstore home page in the “Featured Items” as well as on a banner, included on rotation. The Bookstore
will also post a message highlighting your product benefits on their social media pages.

Print
• Create posters / flyers / coupons that are visually appealing to your potential customers to promote events
or products. Posters tend to be removed or covered quickly (see Canvas FAQ for approved locations).

Broadcasting Awareness
• Plan and create a radio/televised/YouTube commercial that appeals to your potential customers. Consider
how and when this will impact sales and where potential customers will most likely encounter
commercials.

Advertorial
• Create an advertisement for a newspaper / media source that your potential customers read (BASS
Magazine, Newsletters). See ‘Social Media Awareness’ for social media ads.

Viral Marketing
• Generate word of mouth “buzz” that will have your customers spreading the word about your product.
Consider how to create “buzz” and how this will translate into potential sales.

Incentives/Discounts
• Bookstore offers 20% discount on bulk orders of 12+ (not from your marketing budget, does impact your
profit).
• Other incentives such as free gifts, bundles, or discounts can be implemented and managed directly by your
group at your events only (e.g. pop-up/sidewalk; NOT in Bookstore/online). Must be funded through your
Marketing Budget.

Other (please specify) __________________________________________________________________

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Beedie Product Management Experience: The Pitch

Budget Proposal Example

Campaign Type Line Item Details Quantity Price/Unit Total Expenses

Ex. Sidewalk Sale – Bookstore Fee 1 $25.00 $25.00
Booking

Ex. Pop-Up Shop – Bookstore Fee 1 $25.00 $25.00

Booking
Ex. Pop-Up Shop – Table Decorations $10.00
Decorations

Ex. Print – Event Printing Fee 100 $0.10 $10.00

Flyer/Coupon
Ex. Contest Prize Gift Certificates 1 $10.00 $10.00
Ex. Pop-Up Shop Discount offered through 10 $2.00 $20.00
Coupon 20% 0ff through coupon

Total $100.00

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Beedie Product Management Experience: The Pitch

Product Research & Management Task Team

The Product Research & Management Task Team is responsible for discussing the following items in the
pitch: value proposition and market research proposal. If not shown in full during your Pitch, please
ensure there are slides at the end of your presentation that show the full market research proposal. You
may use these during the Q&A portion of your Pitch if further explanation is needed.

Value Proposition
Describe the value proposition your product provides to each of your customer segments. Value is often
defined as how your product solves customers’ problems or improves their situation, delivers specific
benefits (e.g. results from using product), and is differentiated from the competition. Consider competing
products as a comparison to help you determine how your product is positioned in the marketplace. Your
value proposition may change as you perform your market research.

Customer Relationships
In your Product Group, customer relationships are designed around communicating with your customers,
both to promote your product through the marketing and promotions (as discussed in the Channels
section) and to ask for feedback about your product through market research.

Market Research Proposal

This Task Team will be conducting market research with a goal of deepening your understanding of your
product and its value to consumers and making insightful recommendations to the Bookstore at the end
of the semester. For the pitch, you will be required to complete a market research proposal, which you
will use to create a survey after the pitch is approved. Use the outline on the following page to begin
thinking about your survey. You should discuss your plans for questions 1-3 in your pitch to demonstrate
a thorough analysis of data collection methods that is well justified. Your answers to all questions from
the outline on the following page should be included as a hyperlink in your presentation file.

Survey
Your survey will guide your final recommendations to the Bookstore. In particular, recommendations
around potential customer segments, channels, value proposition, and any proposed changes to the
product or price. Ask questions that will help you make specific actionable recommendations. For
example, telling the Bookstore that customers do not like the price or colour of a product is not very
helpful. The Bookstore will want to know, based on customer feedback, which price range or colours
customers will accept. Some groups choose to conduct more than one phase of market research. First to
gather general feedback about customer’s perceptions, second to test specific recommendations. You are
expected to receive a minimum of 50 survey responses for at least one of your surveys. Your survey is to
be created after your pitch is approved.

Product Research & Management Timeline

Prepare a timeline for your Task Team that shows the tasks to be accomplished from week 5 to the end of
week 11 and the members responsible. You are encouraged to use resources from other Task Teams in
executing your campaign (e.g. distributing surveys, etc.). This timeline will be used by the Accounting &
Operations Task Team for the resource allocation.

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Beedie Product Management Experience: The Pitch

Market Research Proposal Outline

1. Determine which medium you will use to reach your customer segments.
a. In-person interviews (using paper or a laptop/tablet)
b. Online surveys (linking to a survey online)
c. Combination of in-person interviews and online surveys
2. How will you distribute your survey and elicit responses? What locations will you use?
3. Determine the resources required to conduct the survey and analyze the responses.
a. Will you use a survey tool to gather feedback? E.g. WebSurvey (by SFU), Survey Monkey
(SFU approved), Google Forms, or other
b. How will you analyze responses? E.g. Microsoft Excel, Google Spreadsheet, or other
c. How much labour will be involved in conducting/distributing the surveys?
d. Will you offer incentives for participants to complete your survey? E.g. draw for a gift
card, candy, etc.
Note: You may use a small portion of the $100 awarded to the Product Group for incentives.
4. Determine what style of questions you will ask.
a. Open-ended questions (e.g. what products do you like?)
b. Close-ended questions (e.g. do you like pens or pencils?)
c. Combination of open-ended and close-ended questions
Note: Open-ended questions elicit more thorough answers but make it difficult to identify
patterns or themes in answers (especially when “I don’t know” is a possibility)
5. Note: The survey should enable you to better understand your value proposition and make
specific actionable recommendations to the Bookstore. It should include, but is not limited to,
the following questions/topics. If you would like to include additional topics, please discuss
them in your Pitch.
a. Demographics of participants (see Pre-Work assignment for examples)
b. Behavioural information (e.g. how would they use, do they already own, etc.)
c. Willingness to pay for the product and opinion of certain price points
d. Perceptions of the product’s quality
e. Perceptions of product’s aesthetics and functionality (e.g. colour, size, weight, brand,
etc.)
f. What would convince the participant to purchase the product (e.g. pride, need, gift, etc.)
g. Asking for or testing recommendations for improving the product

See BPME: Frequently Asked Questions Canvas Discussion for more information on survey planning and
creation

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Beedie Product Management Experience: The Pitch

Accounting & Operations Task Team

The Accounting & Operations Task Team is responsible for discussing the following items in the pitch:
forecast of sales and revenue, breakeven volume, and risk management. If not shown in full during your
Pitch, please ensure there are slides at the end of your presentation that show your full calculations for
forecast of sales and revenue and breakeven analysis. You may use these during the Q&A portion of
your Pitch if further explanation is needed. Finally, this Task Team is responsible for submitting the
resource allocation through Canvas by 11:59 pm the day after your Pitch.

Cost Structure
Cost structure describes all costs incurred to operate a business model. Most models have multiple costs,
but the only costs you will include is the cost of products and the marketing cost, discussed in the budget
proposal. You will use these costs for breakeven analysis.

Breakeven Analysis
The purpose of breakeven analysis is to calculate the quantity (called the breakeven volume) of a product
that must be sold to cover costs. An example is included on the next page.

Revenue Streams
Revenue streams are the ways a business model generates revenue. Weekly reports from the Bookstore
will be posted to canvas reporting revenue from product sales. This will be your only revenue stream. You
will use this revenue stream and your breakeven volume to forecast future sales and revenue.

Forecasting Sales and Revenue

Forecasting sales and revenue will allow you to determine if a business model will be profitable. To do
this, you can use historical sales data from your product (if available) and comparable products, along
with your sales target to forecast for week 5 to the end of week 10. An example is included on the next
page. Explain how your forecasted sales compare to your breakeven volume and whether you expect to
be profitable this term.

Risk Management
This Task Team is also responsible for identifying and describing the most important risks that the Product
Group could face. This will require communicating with the Marketing & Promotion Task Team to
understand the marketing campaign and any potential risks. Examples of potential risks can include
selling out of your product early or spending your entire budget on a single event that is cancelled. This
should be included with your pitch.

Product Group Resource Allocation

Prepare a timeline for your Task Team that shows the tasks to be accomplished from week 5 to the end of
week 11 and the members responsible. This Task Team will also be combining the timelines of the
Marketing & Promotions and Product Research & Management Task Teams into a single Product Group
resource allocation. The resource allocation should demonstrate the money, time and people required for
all tasks, broken down by week. You are encouraged to share resources across Task Teams. This Resource
Allocation should be submitted through Canvas by 11:59 pm the day after your Pitch.

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Beedie Product Management Experience: The Pitch

Breakeven Analysis
Breakeven volume is often calculated by dividing the total cost price of a product by its sales price. For
the BPME, you will calculate the breakeven sales volume needed to recover the cost of your marketing
budget. In order for the BPME to be a self-sustaining project for the Beedie School of Business, each
Product Group should aim to sell enough to replenish the marketing budget for next term, keeping in
mind that the Bookstore shares 50% of the profit from your sales with Beedie.

Calculate BUS 202 breakeven volume for Beedie School of Business

= [Marketing Budget / (Price - Cost)] x [1 / Bookstore Profit Share]
= [$100 / ($10.00 - $5.00)] x [1 / 50%]
= 20 x 2
= 40 units

Forecasting Sales and Revenue Example

Forecasting sales and revenue can be a simple or complicated task depending on the assumptions you
choose to include and the level of detail you choose to pursue. Often, forecasts make use of historical
information. In your situation, your products can be new and historical data may not exist.

To assist you with your forecasts, the Bookstore has provided you with information on your product’s
sales from last term (unless it is a new product) as well as sales data from comparable products. The value
of the comparable data will depend on how similar the products are to your product both in function as
well as price. Recency and month of historical data also impact its usefulness. Information from October
is not as relevant when forecasting sales for March.

Begin by determining a base sales quantity for the week. This quantity can be determined using past sales
data for your product, past sales data for comparable products (adjusted for market size) or other
estimates. Then, add the sales target determined by the Marketing & Promotions Task Team. Include any
miscellaneous adjustments (e.g. school is closed for holidays and sales are expected to be lower) and the
total sum will be your forecasted units. Repeat this process for each week.

Product Sales Price Base Sales Sales Target Misc. Forecasted Forecasted
(week) Quantity Adjustment Adjustments Units Revenue
(if any)
Pen
$5.99 5 1 0 6 $35.94
(week 6)
Pen
$5.99 6 3 0 9 $53.91
(week 7)

Note: The table above is a two week forecast. Create your forecast for week 5 up to the end of week
10. Make sure to justify and explain any assumptions that you make. As you move through the
assignment, you will track actual sales and how close they are to forecasted levels. You may adjust
your forecasts as you progress through the semester.