Create A Comprehensive Lego Kit Resell Proposal For Executiv

Create a Comprehensive Lego Kit Resell Proposal for Executive Review

Assume you are creating a Lego kit to resell. You are presenting this project to the Vice President of Product and Marketing Development and the Vice President of Sales. The deliverable should be a two-page handout that provides essential information about your Lego creation, including details that will help the executives decide if the company should invest in and sell the product. Your report should be professional, creative, and contain thorough informational content. It should include a unique name for your Lego kit with an explanation of why you chose that name, the set selling price with reasoning and calculation details, and a discussion of the different types of costs involved in manufacturing the Lego kit—without including specific dollar amounts. It must also contain a visual flowchart or a detailed diagram illustrating each step of the manufacturing process, from start to finish, and at least one picture of your Lego creation (with an additional picture for distance learners). Finally, include a production cost sheet summarizing all costs, the number of pieces, and the calculated selling price.

Paper For Above instruction

Creating a Lego Kit for resale requires thorough planning, cost analysis, and creative branding to ensure market appeal and profitability. The following proposal details the design, pricing strategy, manufacturing process, and associated costs of a unique Lego kit named "Galaxy Explorers."

Product Name and Rationale

The chosen name "Galaxy Explorers" evokes a sense of adventure, space exploration, and imagination. It aims to attract children and space enthusiasts alike, encouraging imaginative play centered around space missions and futuristic landscapes. The name is intended to suggest an expansive universe within the kit, stimulating curiosity and engaging the target market effectively.

Selling Price and Pricing Justification

The set price for the "Galaxy Explorers" Lego kit is set at $39.99. This price point is reasonable considering the competitive market for Lego kits, which typically range from $19.99 to $59.99 depending on complexity and piece count. The pricing was calculated based on the total cost of production, including materials and labor, plus a standard markup of approximately 50% to ensure profitability while remaining competitive.

Specifically, the calculation involved aggregating the material costs, labor, and overheads, then applying a markup to arrive at the final retail price. This price aims to balance affordability for consumers and profitability for the company, considering market demand and production costs.

Types of Costs in Manufacturing the Lego Kit

The production of the "Galaxy Explorers" involves several distinct cost types, which encompass both direct and indirect expenses:

1. Direct Material Costs: Expenses for Lego pieces—plates, bricks, and special pieces.
2. Direct Labor Costs: Wages directly attributed to assembling the pieces into the finished kit.
3. Manufacturing Overhead: Indirect costs such as equipment depreciation, utilities, and factory maintenance.
4. Packaging Costs: Materials and labor involved in packaging the kits for retail sale.
5. Design and Development Costs: Expenses associated with designing the kit, including prototypes and digital modeling.
6. Quality Control Costs: Testing and inspection costs to ensure the kit meets quality standards.
7. Shipping and Delivery Costs: Expenses incurred to transport the components and finished kits.
8. Marketing and Promotional Costs: Advertising, promotional materials, and event costs to promote the product.
9. Storage Costs: Warehousing expenses for holding inventory before distribution.
10. Administrative Expenses: Overheads such as management, licensing fees, and auxiliary office expenses.

Manufacturing Process Diagram

An illustrative flowchart (or detailed diagram) depicts each step in the manufacturing process, from conceptualization and design, sourcing materials, building prototypes, mass production, quality inspection, packaging, marketing, and distribution to retail sale. Each step is labeled clearly, providing a visual narrative of the production lifecycle.

Example of a Manufacturing Process Steps

• Conceptual Design & Prototype Development
• Supplier Procurement of Lego Components
• Brick Assembly and Kit Building
• Quality Assurance Testing
• Packaging Design and Assembly
• Distribution Planning
• Marketing and Retail Launch

Visual Representation of the Lego Kit

For visual representation, include a high-quality image of the "Galaxy Explorers" Lego kit, illustrating its thematic design and unique features.

Cost and Pricing Summary

The total production cost worksheet tabulates the number of pieces, costs per item type, total material costs, labor costs, overheads, and final production costs. Using this, the selling price of $39.99 was computed by adding a markup over the total costs, ensuring competitive pricing while securing profit margins.

This strategic process enables the company to evaluate profitability potential and market positioning for "Galaxy Explorers," facilitating an informed investment decision by the executive team.

Conclusion

Developing a new Lego kit like "Galaxy Explorers" involves meticulous planning, creative branding, comprehensive cost analysis, and an efficient manufacturing process. Through detailed documentation and visualization, the proposal presents a feasible, appealing product ready for market launch that aligns with company goals for innovation and profitability.

References

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