| The Popcorn Factory |

Objectives, Messages, and Incentives

Yuchen Luo, Xiangheng Ma, Xian Xu, Xiaoyu Zhou

The Popcorn Factory

as a wholesale popcorn manufacturer and distributor

Premium popcorn & gourmet snacks in bulk

Assortment of gourmet flavors in the bag line
Pops over 1 million pounds of popcorn per year.
Part of 1-800-FLOWERS family of brands

Purpose of Analysis

Select Target
Markets

Behavioral
Objectives

Communication
Objectives

Financial Impact

Message or
Incentive

Selecting Target Markets

We select segment 2 | segment 3 | segment 5:
They are very active, including the majority of our customers, and
representing over 77% of total revenue
Segment

2 Rising Star

3 All-Star

5 Rookie

Total Revenue

$82,366 | 3%

$348,472 | 15%

$1,414,618 | 59%

$482,645 | 20%

$71,846 | 3%

Recency(wks)

90

33

35

92

37

Frequency

1.2

3.0

4.4

1.7

1.6

Avg Order Amt

$24

$27

$37

$40

$20

# of Customers

1543

1572

750

796

1501

All-Star
Key Behavioral Characteristic:
12% of customers contribute to 59% or revenue, but the customer base is small: 750
Behavioral Objective:
Increase the number of purchases by 1% through acquiring new All-Star customers
in the following 4 quarters.
Financial Impact:
Num of Customer

1%

* Avg Spending per Customer = Revenue

750 * 101% * $1,034 = $783,096

1%

All-Star
Communication Objective:
Create the awareness that the Popcorn Factory delivers the best customer services
for wholesale business.
Message:
Choose us for efficient processing, guaranteed quality and fast delivery

Rising Star
Key Behavioral Characteristic:
Average order amount: $28 | Big potential for increase (All-Star: $38)
Behavioral Objective:
Increase the average order amount of existing customers by 6.8% in the following
4 quarters.
Financial Impact:
Avg Order Amt

6.8%

* Number of Orders = Revenue

$27 * 106.8% * 7,768 = $224,006

6.8%

Rising Star
Communication Objective:
Create perception that the Popcorn Factory offers a variety of high quality
products.
Message:
Explore and indulge a bit among over 30 flavors of popcorn, including specialty
flavors such as Holiday Cookie and Bacon Cheddar. Whats even better? You
can choose gluten-free, sugar-free, and vegan ones

Rookie
Key Behavioral Characteristic:
Average N of transaction per customer = 2.4 | Big potential for increase (All-Star: 51.4)
Behavioral Objective:
Increase Average N of transaction by 1 for each customer in the following 4 quarters.
Financial Impact:
Num of Customers * Avg Order Amt * Incremental Average N of transaction =
Incremental Revenue
$54,197 (original revenue)+ 1,501 * $20 * 1 (incremental revenue)= $84,217

Rookie
Communication Objective:
Create the perception that the Popcorn Factory is the best choice of snacks for a
variety of business events.
Message:
Let our popcorn and treats add color and light to your companys happy hours,
team meetings, lunch breaks, and every other occasions

Summary
Marketing Objective: $1,039,283 * 105% = $1,091,247
|Target Revenue|

|All-Star|

|Rising Star|

|Rookie|

Mission
Accomplished

$783,096

$224,006

$84,217

$1,091,247