Promotion

“In developing a sales promotion program, a company must first set sales promotion objectives and then select the best tools for accomplishing these objectives.” (Marketing: An Introduction, Armstrong & Kotler, Ch. 13, Pg. 432)

It's very clear that social media has affected and helped the modern world in so many ways. From helping musicians accomplish great things to starting revolutions, social media has done great things for the world and it will never go away. Social media is used for small and big businesses as well, and when it's used correctly, it gets a lot of attention. The Veggie Van will have what most businesses have these days: an official Facebook page, and a Twitter account. Using these two tools, we plan on getting more customers when our other customers share us with their friends; because they love us!

 “Marketers can engage in online communities in two ways: They can participate in existing Web communities or they can set up their own. Joining existing networks seems easiest” (Marketing: An Introduction, Armstrong & Kotler, Ch. 14, Pg. 468)

"Sales promotion objectives vary widely. Sellers may use consumer promotions to urge short-term customer buying or to enhance customer brand involvement.” (Marketing: An Introduction, Armstrong & Kotler, Ch. 14, Pg. 468)

Distribution

"Production and consumption cycles rarely match, so most companies must store their goods while they wait to be sold. For example, Snapper, Toro, and other lawn mower manufacturers run their factories all year long and store up products for the heavy spring and summer buying seasons. The storage function overcomes differences in needed quantities and timing, ensuring that products are available when customers are ready to buy them." (Marketing: An Introduction, Armstrong & Kotler, Ch. 10, Pg. 332)

The Veggie Van will keep all it's supplies in the van when it starts out, but once our food truck becomes very popular and gains many fans and loyal customers, we will need to get a distribution center.

Distribution center

A large, highly automated warehouse designed to receive goods from various plants and suppliers, take orders, fill them efficiently, and deliver goods to customers as quickly as possible. (Marketing: An Introduction, Armstrong & Kotler, Ch. 10, Pg. 332)

Our distribution center will be a small apartment where we keep freezer in which we keep our soy patties and other things that need to be kept frozen or cool. Other than being a distribution center, the small apartment will also be our head quarters where we can have business meetings. 

A company must decide on how many and what types of warehouses it needs and where they will be located. The company might use either storage warehouses or distribution centers. Storage warehouses store goods for moderate to long periods. Distribution centers are designed to move goods rather than just store them. They are large and highly automated warehouses designed to receive goods from various plants and suppliers, take orders, fill them efficiently, and deliver goods to customers as quickly as possible. (Marketing: An Introduction, Armstrong & Kotler, Ch. 10, Pg. 332)

Price

“If customers perceive that the price is greater than the product’s value, they will not buy the product. Product costs set the floor for prices. If the company prices the product below its costs, company profits will suffer. In setting its price between these two extremes, the company must consider a number of other internal and external factors, including competitors’ strategies and prices, the company’s overall marketing strategy and mix, and the nature of the market and demand." (Marketing: An Introduction, Armstrong & Kotler, Ch. 9, Pg. 5)

 The two most important ingredients for our burgers are the soy patties and the buns. For patties we will be using Boca Original Vegan Burgers. A box of 16 patties at Sam's Club costs $9.77 therefore, each separate patty costs about 61 cents. For buns we will use Arnold Wheat Sandwich Thins which cost $3.98 for 16 at Sam's Club so around 25 cents per pair. The drinks are only a dollar, and the cup cakes fifty cents. I estimate a 75 cent profit per meal.I feel a reasonable price for the burger, cake, and tea would be $3. Good for the Veggie Van and our customers!

"For most purchases, consumers don’t have all the skill or information they need to figure out whether they are paying a good price. They don’t have the time, ability, or inclination to research different brands or stores, compare prices, and get the best deals. Instead, they may rely on certain cues that signal whether a price is high or low. Interestingly, such pricing cues are often provided by sellers, in the form of sales signs, price-matching guarantees, loss-leader pricing, and other helpful hints."(Marketing: An Introduction, Armstrong & Kotler, Ch. 9, Pg. 42)

If consumers perceive that the company’s product or service provides greater value, the company can charge a higher price. If consumers perceive less value relative to competing products, the company must either charge a lower price or change customer perceptions to justify a higher price.(Marketing: An Introduction, Armstrong & Kotler, Ch. 9, Pg. 280)