1.

Select a marketing strategy for your project based on market opportunities and
objectives. The purpose of the marketing strategy is to present the broad strategic
approach that the plan will apply in providing value to achieve the objectives that have
been set. 15 marks – 3-4 pages
Note – Recommend a change in the existing strategy only if required

a. Recommended Target Market – Who are they, what they want, when and where do they
buy, how they buy and consume.

The main objective of this plan is for MakerKids to sell more franchises, making
Investors, business owners and private school owners the target market. There are several
advantages of buying a franchise such as “it easier to secure finance for a franchise. It may
cost less to buy a franchise than to start your own business of the same type. Also, Franchises
offer the independence of small business ownership supported by the benefits of a big
business network. Lastly, Franchises often have an established reputation and image, proven
management and work practices, access to national advertising and ongoing support.”
(Employment, S. B. and T., 2019). Depending on whichever of these objectives a potential
business owners may have, MakerKids cover all of it. When purchasing a franchise, business
buyers can contact Jennifer Turliuk through; her email (jenn@makerkids.com), call their
main office (877-269-3498) located at 2451 Bloor Street West (Bloor and Jane), or visit their
the same office address given to set an appointment on when the purchase is to be done. In
terms of when to buy it, on their website, they stated that “MakerKids is growing rapidly and
there is strength in numbers. We have consumers from all over the world who are asking for
our programs and camps to be in their cities. ”, persuading and urging customers that now is
the best time to buy their franchise(Turliuk, 2019). Upon the franchise development process,
owners will: receive demographic analysis tools to help select the perfect location for
MakerKids location, offer help with the architecture and construction, also provides training
for new owners, and they have business consultants to help with the operation of the
business. Owners new to business will want this because it will put them on the fast track to
setting up and learning the business, jump starting their potential of success.

b. Recommended Positioning – what image should the new product project and for whom
 We’ve all heard the saying “Kids are the leaders of tomorrow.”, this is why MakerKids
company is dedicated in shaping and empowering the minds of the kids of today(Turliuk,
2019). As franchising is the easiest way to own your business, MakerKids made a short-term
plan to sell 10 franchises within the next year, and a long-term plan to grow 700 franchise
locations within the next 12 years. The new project should have the image of continuing to
help kids develop necessary skills, learning in a friendly environment, and making future
entrepreneurs. With that being said, they should position the company to potential local
business buyers that have the same goal as them who are passionate about the industry.

c. Recommended Product Strategy-

Considering the fact that maker kids uses technology like coding, robotics, design tech, a
good product strategy for them would be to develop new innovations in these fields of
technology that would enable them do their jobs faster, easier and more efficiently i.e than
their other competitions. By doing this and staying on top of leading innovations they will be
able to provide for their customers easier and more efficient ways of learning. As big land is
the biggest problem for the opening of new franchises so they have to develop a school
structure which will serve a large audience in a small land and also safe for children.

d. Recommended Pricing approach-

- Longer term approach will be Customer Value Based Pricing-base the price off of the
perception of the franchise. Makers kids is #1 Kids STEM franchise. Value added Pricing:
makerkids has been featured in many well known media sites or live t.v. They have Maker
Kids University for new franchisors to learn the business. They have technology to help
pinpoint perfect locations to open the franchise. Their team adds more value helping with
architecture and construction of the new location(Turliuk, 2019). All these listed in house
services can serve as a competitive advantage.
- Shorter term approach is Market Penetration-Start the price lower to gain market share.
Most franchise fees are between $20,000 to $50,000, therefore MakerKids should start their
franchise fee within this range. Those who are heaving the best suitable place will get an
additional discount. Prices can increase as volume increases(more franchises are purchased),
competition can be limited this way . This is the best strategy as it allows Maker kids to
acquire new franchisees quicker and will help develop more market share.
e. Recommended Distribution approach – how will the product reach the customer –
channel member strategy

The distribution approach that will be most appropriate for maker-kids would be to
distribute through online channels like their website, YouTube, etc, considering they have a
lot of programs and activities they offer online. Furthermore, they can also distribute their
products through their business partners, especially the school owners considering the fact
that a huge portion of maker kids customer base are kids and their parents. They can also
distribute directly to customers through their various training camps.

f. Promotion Strategy - objectives of promotions strategy, various elements of

communications mix that will be used, what will be the message and media choices.

For selling the franchise we first make the general public aware about the benefits of the
courses that maker kids offer. When there is growing demand for the subscriptions and
people will choose to learn those subjects then we will show them that we are the best in
these subjects. Later on we will sell those franchises on higher rates and with high
promotions.
1) Advertisement on Magazines : High class advertisements on front page of business
magazines as our target market is businessmen.
2) Personal Meetings : Direct meetings of staff members of maker kids with the owners of
private schools. They are already in the education business, there is a great opportunity
to sell franchises to them and possess the skills sets to have open and run a franchise. The
YouTube ads can be tailored towards investors, business owners and private school
owners.
3) Advertisement on social media : Everyone in today’s world is watching youtube so by
giving advertisement on youtube will bring awareness to the public at large about the
franchise and also about the advantages of doing the courses.
2. Create a marketing budget for your plan (use Excel). What categories would you
include? How would you allocate budget among the categories? How would you
allocate budget overtime (generally 1-3 years)? – 5 marks – 1-2 pages

BUDGET CATEGORY AMOUNT YEAR 1 YEAR 2 YEAR 3

(%)
(estimate
percentage)

Advertising (kids channel) 20 $3,200 $2,200 $1,600

Social Media and Digital 40 $6,400 $4,200 $3,000

Marketing (Youtube Ads,
Facebook, Instagram,...)

Direct Marketing (mailing 9 $1,400 $1000 $500

promotions, business
magazine ads, etc. to
potential and existing
business owners, as well as
schools)

Public Relations 15 $2,400 $1,500 $1,100

Posters (will be posting it at $1,600 $1,100 $800

school or near the school 10
where parents pick up their
kids)

Contingency Funds 6 $1,000 $1,000 $1,000

(allocating $1,000 for each year,
whatever is left from the
previous year will be carried out
to the next year)

TOTAL 100 $16,000 $11,000 $8000

$35,000
(total budget for 3 years)
$35000 total budget over 3 years.
Year 1-$16000-more money is set here for marketing compared to year 3 because as the
years progress, the marketing budget should be more efficient therefore reducing costs.
This budget helps the company have enough marketing resources to become more known.
Ads for youtube average $0.20/per click so for our budget of $6400, maker kids can have
87 clicks per day(87 new potential franchisee owners) for year 1(Webfx, 2019).
Year 2-$11000.
Year 3-$8000-At this point makerkids will have more franchises and will be better known in
the market therefore less resources are needed to market.
$3000 contingency fund for 3 years total.
Makerkids has a plan of having 700 franchises within 12 years. This budget is only for the
first 3 years as technology will advance and prices may fluctuate. The budget for years
beyond year 3 would need to be created during year 3.
3. Design a schedule, with task description, resources and timelines for implementation
(suggestion -use Excel or MS Project); explain metrics for measuring progress towards
objectives; and include contingency plans for dealing with unexpected results and
future scenarios- 5 marks- 1-2 pages

YEAR 1 - SCHEDULE

Youtube Ads Everyday

Business Magazines Once a month

Private school owners At least 1 school a month

Posters Same time as private school owners meetings

Direct Marketing Every week when all mails are delivered

(via Canada Post)

DESCRIPTIONS:
● Month of January and February of year one - content creators work on magazine and
YouTube ad content/ads. Marketing team also works on business to business
presentations/pitch material to private school owners.
● Run YouTube ads every day targeting on adding these ads on business videos
● Get on 2 new business magazine ads per month.
● 1 meeting a month with different private school owners.
● Putting up 1 poster in schools (approved by the private school owner) every month
when attending the school meetings.
● Direct marketing every week sent to franchisors.

EXPLANATIONS:
1. Metrics would be 1 new franchisee per month.
2. Unexpected results (no new franchisee for the first few months) would be to alter
parameters of youtube ads and/or run more quantity of ads to increase exposure.
3. If there is more new franchisors than anticipated for a single year we can cut the
marketing budget in accordance with the overage of franchisors and better allocate that
money towards other things.
 WORKS CITED

Employment, S. B. and T. (2019, January 2). Advantages and disadvantages of buying a

franchise. Retrieved from https://www.business.qld.gov.au/starting-business/buying-
business/buying-franchise/advantages-disadvantages.

Turliuk, J. (2019, October 20). The #1 Kids STEM Franchise Program. Retrieved November
4, 2019, from https://makerkids.com/franchise/

Webfx. (2019, September 24). How Much Does YouTube Advertising Cost? Retrieved
November 5, 2019, from https://www.webfx.com/internet-marketing/how-much-does-
youtube-advertising-cost.html.