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Chapter 7 – Set yourself apart – Differentiate!
“Jack & Jill Lemonade” makes you think hard in week 5.
Last week we discussed details of the fourth week. We talked about the “Jack & Jill Lemonade” competition that hurt your sales even with your extra efforts. Competition from the “Jack & Jill Lemonade” forced you to do some research on the following and this is what you found –
1) Market (the lemonade drinks market) – You are encouraged that your initial business plan assessment of 70 cups a day is still a good one. Your neighborhood will consume at least this much for the next few months until school starts and summer is over.
2) Customers (neighborhood) – You did a quick survey by going to random 20 houses and asked them a few questions to understand what their lemonade needs are. What can you do to improve and serve their needs better? In addition, you got some good advice from parents. Here is the feedback –
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Product and Quality improvement suggestions – How about cutting on sugar? What about the “Diet Organic Lemonade”? People are looking to cut on sugar anyway. Location, location, location – Is there a possibility to open another stand in the area where you get more attention? Price suggestion – Is your price right? Can you sell it for half your current price? Cost improvement ideas – Think of cutting costs and becoming more cost-competitive. How can you do it for less?
3) Competition (“Jack & Jill Lemonade”) – “Jack & Jill Lemonade” is doing well by putting up a bright colorful banner with a cheering group of kids to attract customers (neighborhood people) to stop by for a lemonade drink.In other words, they have a better advertisement plan than yours.
4) Product and Services (your lemonade) – You considered some of the feedback and changed your business to sell organic lemonade. You also cut down on sugar (and therefore the cost). You also have plans to introduce the Diet version in the coming weeks. So your new Lemonade Stand banner looked something like this – 
5) This week you were not able to get all the cost ideas in, however, you have plans to buy good organic sugar at better prices in larger quantities from Costco. You were able to convince the local farm which sells organic lemons to sell you at the same price as in Sam’s Club.
6) Price (of your lemonade) – You were tempted to drop your price but wisely decided against it for now. You implemented some of the above ideas just in time for the Memorial Day weekend. Your new business strategy paid off handsomely. Your game plan worked and you sold more than 80 lemonades in week 5. Your Organic Lemonade seems to be the talk of the town and your success was picked up by the local newspaper.This is how your 5th week numbers look –
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