IBM MentorPlace Online Activity: Weather Watch CD with digital imagery
    (Read the Project Description and then choose the most appropriate Online Activities to try in your classroom.)
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          In this project, you have the responsibility of purchasing and pricing
           CDs for the grand opening of a new music store, the CD Warehouse.
            You will have to make a number of decisions, including the total number
            of CDs to purchase from the distributor, the types of CDs that will be
            available in the store, and how the CDs will be priced.
 
Activity 1: Mapping Out the CD Warehouse

       Mentors and students should work together to create a list of all the
    different types of music that will be available in the CD Warehouse.
Examples include: Rock, Rap, Country, and Broadway Shows.

                     
   

                 Mentors and students should then separately determine both the percentage and
fraction of floor space that each type of music on your list should occupy. For example:

Country: 10% or 1/10
Rock: 20% or 1/5

Explain your thinking on how you divided the floor space. Which type of music occupied the
most space in your store? Why? Which type of music occupied the least? Why? Share and
compare your plans.
     
  Activity 2: Which CD Purchase Plan?
   

The CD distributor has offered to sell you CDs with a choice of two different plans.

  • Plan One
    The first plan requires an initial purchase of 3,000 CDs at $6.00 per CD,
    followed by 11 monthly orders of 500 CDs at $8.00 per CD.

  • Plan Two
    The second plan requires an initial purchase of 5,000 CDs at $5.00 per CD and
    one follow-up purchase six months later of another 5,000 CDs at $6.50 per CD.

How many CDs would you be purchasing in a year in the first plan? What is the cost per CD?

How many CD's would you be purchasing in a year in the second plan? What is the cost per CD?

Students: Share with your mentor the plan that you selected and explain your reasoning. (Remember that cost may not be the only factor in the decision!)

Mentors: Make a case for selecting the other plan.

     
  Activity 3: How Do I Price?
   

Given the plan you selected in Activity 2 and the cost of the CDs from the distributor, determine a pricing strategy for your CDs. Will all CDs be priced the same? Are your prices in line with your competitors?

Ask your mentor questions about competition. How do you identify competitors and what are some of the creative ways that businesses compete?
     
  Activity 4: Grand Opening Special!
    Create an opening day special! List the title and artist of ten CDs that are on sale. What clever advertising ideas would you use to promote the special?