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Capitalizing on the PEZ Dispenser iPhone Opportunity: A $10,000 Challenge

In 2013, the iPhone PEZ dispenser market presents a lucrative opportunity with an estimated 100,000 potential buyers. With a team budget of $10,000, you must strategize to maximize sales by optimizing inventory orders, as costs decrease based on volume. The contract pricing is set at $1 per unit for 1,000 units, dropping to $0.50 for orders over 10,000. Successful marketing and advertising will be crucial in a competitive landscape for gaining first-mover advantage. Can your team effectively balance advertising and inventory to claim the market?

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Capitalizing on the PEZ Dispenser iPhone Opportunity: A $10,000 Challenge

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  1. The iPhone Pez Dispenser Opportunity

  2. iPhones everywhere!

  3. All praise the iPhone(?)

  4. The PEZ iPhone market, 2013 • 100,000 people will buy a device that attaches a PEZ dispenser to their iPhones • You have an initial budget per team of $10,000 to sell these devices • Contract manufacturer prices based on order size • More than 1,000 = $1 per unit • More than 5,000 = $0.75 per unit • More than 10,000 = $0.50 per unit

  5. Price/demand forecast for target market

  6. Rules • Your team has $10,000 budget • Total market size is 100,000 people • Estimate advertising expenses and desired inventory amount • Inventory costs per unit drop with higher order amounts • Advertising expenses break ties between teams • First mover advantage matters in this competition

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