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Lemonade Stand

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Lemonade Stand Part II (Informal Business Report)
DeVry University
BUSN115 Introduction to Business and Technology
Lemonade Stand Informal Business Report

INTRODUCTION
Lottie's Lemonade started with the intentions of providing quality lemonade at a reasonable price and to make certain that every customer felt like they were a part of our family every time they visited. The expectation for my team has been to provide a family friendly atmosphere and service with a smile. In my opinion, we have done just that, Lottie's Lemonade has been in business now for a little over a year and every month since we opened our doors we have seen double digit growth in our profit percentages. It is now time for me to start focusing on expansion and employee growth.

BRANDING STRATEGY
Lottie's started out using the "Free and Freemium" pricing strategy. After a couple of months the customer demand increased and we were able to switch to a different pricing strategy and were able to raise our prices to keep up with the demand. Due to the increase in demand, we have had longer lines, so we created a website for our customers to place their orders online and have it ready for them upon their arrival. I have also implemented a rewards program for our customers. If they order 10 glasses of lemonade, they will receive a free 32oz glass in a specially designed mug that they can take home with them, of course with Lottie's logo on it.

OPPORTUNITIES FOR NEW LOCATIONS
I have decided that it is time to start considering expanding my operation. I have researched many different opportunities and concluded that the best option for Lottie's is to set up a stand at some of our local parks. By opening lemonade stands at local parks we can reach approximately 250 people per day. Peak times will of course be during the baseball season, when anywhere between 300 and 500 people will be attending games and what better way to quench your thirst than to sip on an ice cold lemonade.

PROMOTION PLANS
There are many options for promotional plans, but I feel the most effective way is to focus on using specialty advertising. (Courtland, Bovee & Thill, 2013)
I am going to sponsor a little league team at Welles Park and will have Lottie's Lemonade displayed on the uniforms worn by each player on that team. The cost to sponsor a team is only $550.00 and will garner exposure to approximately 3,000 individuals. I also plan on purchasing ten 2.5' x 12' banners that I will hang around the community to advertise my business. This will run me about $450.00 and could potentially provide exposure to about 7,500 people in the community. The final thing that I plan on doing is to rent space at Chicago's annual Jazz Festival and set-up a stand selling Lottie's Lemonade. The stand rental will cost $8,500.00 and I anticipate spending an additional $500.00 on flyers so we can hand them out at the festival. The festival is anticipated to host approximately 135,000 people over the three days.

EMPLOYEE TRAINING
As stated earlier I have hired several people to help me run my lemonade stand. In recent months I have seen a sharp decline in sales and after speaking with my employees, I have come to the conclusion that I have to find a new way to motivate my team. I have decided to offer incentives to employees who meet or exceed monthly sales expectations. I have also implemented a training plan, where my top performing individuals can be taught to take on increased roles within my company. With this new change, when I open new lemonade stands, I will already have my management team trained and ready to go.

CONCLUSION
As you can see Lottie's Lemonade is a growing business that has the opportunity to expand with a little TLC. We have done a good job building brand recognition and retaining our customer base. I am now ready to take my company to the next level and will look to open new lemonade stands in local parks throughout my community over the next couple of months. We will also be promoting our company on a larger level by sponsoring a sports team, hanging banners throughout the community and renting space to sell and promote Lottie's Lemonade at the Jazz Festival in September. With the plans to expand, I have been training my staff and preparing them to run individual lemonade stands on their own, so I can better focus my time on running my organization. If you give me the opportunity and invest in my company's growth, you will not be disappointed with the results.

References
Courtland, L., Bovee, J.V., and Thill (2013). Business in action. (6th ed.). Upper Saddle River, NJ: Prentice Hall

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