>> Production funding and educational outreach for Biz Kids is provided by Coalition of America's Credit Unions, where people are worth more than money.

A complete list of individual credit union funders is available at wxxi.org.

>> Every day, America's credit unions help members with their financial needs.

And with programs like Invest in America, it's only fitting that credit unions support Biz Kids, because financial education is what we do.

Learn more at lovemycreditunion.org.

>> Welcome to the Biz Kids Marketing Challenge!

Who will be crowned the master of marketing?

>> Let's find out!

>> ♪ When making money is the aim ♪ These kids they bring their game ♪ They're the Biz Kids can you dig it ♪ They know what's up and let you know ♪ Just how to make that dough ♪ They're the Biz Kids right on ♪ So learn a little more about bringing money through the door ♪ They're the Biz Kids right on.

♪ >> Biz Kids, welcome.

We've gathered you here today for a marketing and promotions challenge based on the four Ps.

>> The four Ps of Marketing are as follows.

>> You've been divided into two teams.

Your goal, your mission, to raise as much money as you can for the charity of your choice.

And you'll do it by selling lemonade, starting right now.

No, seriously, go!

Go!

To the van.

>> ♪ I'm making money and it's really great ♪ And now I'm learning about the interest rate... ♪ >> On this special edition of Project Lemonade, we had six of the ten Biz Kids.

Four were, uh, smart and took a vacation.

>> I thought it was going to be awesome.

You know, it's a different style of the shooting we usually do.

We have sketch and just direct education, but this was totally different because it was unscripted, and I thought it was going to be really fun.

>> I didn't even get that until you said it was a joke.

>> Anyway... >> Usually lemonade stands, you go, and you ask for 75 cents, and then you would get... like, at the end of the day you have, like, five dollars.

So for us to, like, raise money for a fundraiser at a park, I thought it would be kind of hard to do, to go and sell lemonade, but it would be fun.

>> I thought the teams were fair.

All of us are pretty competent kids; we're Biz Kids.

And I just thought no matter how you put the teams together, that we would have done a good job.

>> The first step-- level the playing field.

Both teams are brought to Seattle's popular Green Lake Park where thousands of thirsty joggers ring the shoreline every day.

>> Team A goes here.

Team B goes here.

>> Next they are given equal amounts of the same lemonade.

The two Ps-- product and placement-- are even.

Success will depend on their choice of price and promotion.

>> The product and the place have already been determined.

And now these two teams must decide the price and the method of promotion.

To aid them in their efforts, they may choose five from the wonder tarp of marketing aids.

What will they choose?

Sign-making devices.

Feather boas and straws with a twist.

Parking cones and a megaphone.

A Viking hat.

Hula hoops and a jump rope.

Floatation devices.

Sidewalk chalk.

A derby, a recorder, and a pinwheel.

Lemons and fresh mint.

Cherries.

Or tablecloths-- one in standard orange, the other a bit of attitude.

Ooh, I'm trembling with anticipation, or maybe heatstroke.

Lemonade, please.

In the first round, the teams are required to sell lemonade as a premium product.

In the second round, the teams are required to change their marketing strategy and emphasize volume.

Each team is given exactly 30 minutes to set up their stands.

>> Let's get it on!

>> To evaluate their progress, we invited Scott Bedburry, marketing guru to Microsoft and Starbucks, and the man who invented the slogan "Just Do It."

>> I think selling lemonade is a great experience, because it's really what every brand faces at some point, is you have a commodity, and your product looks like everyone else's, your service looks likes everyone else's.

What sets you apart?

And I think it's those little things that make all the difference.

>> Team B decided to dedicate their sales to helping victims of Hurricane Katrina.

They chose chalk, posters, and in general some rather low-key items.

>> We chose chalk so we could run to... run kind of far away and write on the ground, like, "Get lemonade down here" so more people could see it.

>> It's for advertising.

We're going write way over there "Lemonade is here," over there "Lemonade is here."

>> Some of these things were about creating entertainment, you know, getting people to stop and notice.

Others enhance the product.

And that's great.

>> We picked the cherries, because we figured, who doesn't want a cherry, you know?

>> The umbrellas, these are to make our product worth more.

This is what makes our product special.

>> We have lemons.

Of course we need freshly squeezed.

>> We took anything that could really just further our business.

We didn't... anything to get things out there and to make our product better.

>> It's one thing to have a product.

It's how it's displayed.

It's how it's presented, what's around it, what do you see left and right of it.

>> Do you think we could give these away if they spent like ten dollars?

>> It's the little things you do around the product that do make all the difference.

>> Team A reasoned that collecting money for Children's Hospital would be a good draw.

And to make sure their pitch was heard, they picked megaphones and other more aggressive items.

>> We've got... ooh, shouters.

They shout.

You can hear people better.

Got the hula items, which are the little hula things, the little... keep going, Devon.

Keep going, keep going, keep going, keep going, keep going, keep going.

We got the extra markers and the extra big art supplies.

We got the umbrella, the big umbrella right over there.

That's one, two, three, four, and straws.

We got extra straws.

Do we have any ice?

We really wanted to get as many people as we could to look at us and come and investigate what all the noise and hullabaloo was about.

Hullabaloo.

>> So, I'm writing in chalk, "Help Children's Hospital," because that's what we're donating our money to.

>> We decided on Children's Hospital as our charity.

It's a great hospital.

It helps a lot of kids.

And a lot of people are helped by it every day.

A lot of parents bring their kids there.

And definitely people want to support this hospital that is so close to their hearts.

>> So as people, like, run down the track or do whatever they're doing, they can see that up ahead is the lemonade stand.

And we're donating all our proceeds to children's hospital.

So none of it goes to us.

All of it goes to charity.

>> "R-I-N-A."

This poster is going over there.

>> It's interesting that both teams picked the charities and put them out there in front.

I think Americans are more sensitized than ever, and they're looking for companies to show they care.

>> Four minutes.

Four minutes.

Do not panic, but you only have four minutes.

This is the last time I will repeat you have four minutes.

Although technically, it's about three and a half now.

And across the lake, four minutes.

Four minutes.

Hopefully it'll reach them in the echo.

Four minutes.

>> We can't use any of these.

>> Let's try and get this as level as possible.

>> 11.

>> Someone has to stay here, so that'd be me.

>> Project Lemonade will return right after this.

>> Good morning, everybody.

In order to qualify for our job opening, we need to test your understanding of marketing.

Good luck.

>> Oh, boy.

"What are the four Ps of marketing?"

Hm.

>> Now, Timothy, I've checked over your test here.

>> Yes, sir.

>> And I'm going to be frank.

>> Okay, Frank.

>> You didn't do very well on the test.

>> Nuts.

>> You wrote that the four Ps of marketing are peach, pineapple, papaya, and prune.

>> Should I have said, "Plum"?

>> Take the test over.

>> Okay.

>> Now back to Project Lemonade.

>> The contest begins.

It's a hot day on a lake ringed by hundreds of thirsty joggers-- a perfect customer base.

How much lemonade can they sell using their premium products in the first round?

Let's see how the Biz Kids do.

>> Lemonade!

>> Lemonade for Children's Hospital!

>> For Children's Hospital!

>> Team A launches into the hard sell.

>> Quality lemonade!

>> Ice-cold lemonade, 75 cents a glass.

75 cents, Children's Hospital.

>> Great!

Thank you so much.

Choose any cup to your liking.

>> Proceeds go to charity!

>> 75 cents for Children's Hospital!

>> We worked the name Children's Hospital into our promotion.

We were saying, "Lemonade for Children's Hospital," and when people heard the name Children's Hospital, they were throwing money at us.

>> I'm walking down that way, way down there, and way up there, if you can even see it, trying to tell everyone that I can see what we're doing today.

We're calling it "Lemonade for Children" today.

>> They were just giving us donations for five dollars, ten dollars, and some people didn't even want lemonade.

So it was great.

>> I know you're hot!

You're running!

You're hot!

You can take a break and get nice cold lemonade!

>> I'm yelling at people-- "Shout!"

-- shouting at people.

Come get our lemonade, 75 cents.

Lemonade right here.

75 cents per glass, goes straight to Children's Hospital.

>> I think the megaphone thing is very interesting to me.

I, for one, am not big on having somebody bark at me, so... >> I'm wearing a Hula skirt because I believe in helping Children's Hospital.

>> You know, you can appreciate the enthusiasm that someone would have with that, but, I mean, I have a megaphone at our beach cabin; I use it sparingly.

>> Lemonade for Children's Hospital.

Today, the money goes to the hospital.

>> I think it speaks to the fact that in marketing, you want to have something meaningful to say, but increasingly, it's how you say it.

So the surest way to short live... you know, short change a great slogan is to scream it at the top of your lungs.

>> ♪ Lema-lema-lema-lemonade lemonade for you!

♪ >> ...anything bigger.

>> Did you want one too?

>> Meanwhile, on the other side of the lake, the sales pitch has a softer side.

They have also decided to set the price much higher than the other team for the exact same lemonade.

>> Every now and then, we'd go down there, and we'd approach people and kind of tell them about it beforehand, and then they could kind of make up their mind as they were walking to our booth, and then we would sell it to them.

>> Have a nice day.

>> You too.

>> We were working fairly consistently, not a lot of down time.

Would you like cherries with that, sir?

We did a lot of advertising.

We had someone down the road giving away free water and another group giving lemonade.

So we kind of advertised past them so people would buy from us.

>> How is the money going to help save Katrina victims?

>> Well, we're giving it to an organization called Common Ground that helps Katrina Victims and helps build houses in New Orleans.

>> Awesome.

>> Everyone seems, you know, really willing to donate, and so I think if we raised the price a little bit, people would be just as willing to buy lemonade than what we're selling now.

>> Okay.

Well, good luck.

>> Thank you.

>> If you start by saying, "Would you like to buy some lemonade?"

people usually say no.

But if you start by saying, "Hi, I'm raising money to help save Katrina victims," people are like, "Oh, okay."

>> Yeah.

>> Do you want a cherry too?

>> I think girls are naturally better marketers in some respects, particularly with the public.

I'm not sure what it is.

>> Hi.

Would you guys like to buy some lemonade today?

We're raising money to help save Katrina victims.

>> I think the girls tend to be a little more thoughtful sometimes, maybe a little more sensitive to the people they come in contact with.

>> Would you like to us raise money for Katrina victims?

>> I don't have any money.

>> Okay.

Well, have a nice day.

>> The boys are sort of in their own, you know, four cubic feet and thinking about themselves.

I think they probably would stand up really well on a test against the boys.

>> Help the children!

>> Want two?

>> Team A is keeping their energy up but falling farther behind team B in proceeds collected.

>> Thank you.

>> I need to wet my whistle.

>> Team B has become so confident in their volume of sales that they're posting a two-dollar price.

>> It's only two dollars.

>> More than twice what team A is charging.

>> So why did we raise it to two dollars?

I thought we were going to go down in price.

>> Because people... it's not that time yet, but people are giving more money because it's for Katrina victims.

>> Two dollars was a lot.

We didn't quite have in our mind what was exactly practical, so we kind of had to experiment and work out what was practical.

>> Two dollars?

>> Yeah, it's... >> I saw it around the lake for $1.99.

>> $1.99?

>> You have competition over there.

>> Yeah, let's go.

It's cheaper on the other side.

>> I was a bit surprised that people actually did pay two dollars though.

>> Uh, yeah, just one, for him.

>> People are willing to donate money for a good cause.

So people would give us five dollars for a glass and... >> I think the way the customers sort of stepped up and paid the two bucks or paid even more where it was sort of nothing to limit them speaks to another trend where consumers are willing to spend beyond what's expected on something if they feel like what they're doing is giving back in some way.

So I think that's good.

It's great for society that we're not so focused on price anymore.

I think we just want to feel good about how we spend our money and the companies that we give it to.

>> Team, this round of the competition will be closed in ten, nine, eight, seven, six... >> Hi, would you like to buy some lemonade to help raise money for Katrina victims?

>> Last chance-- four, three... >> Hi, would you like to buy some lemonade today?

>> ...two... >> Cheers!

>> Have a nice day.

>> ...one.

This round of the competition is closed.

So drink up the rest.

>> That's good stuff.

>> Okay.

>> It's for Children's Hospital!

100% of the proceeds go to Children's Hospital!

>> Ten seconds, team!

Ten second remaining!

>> We have ten seconds left for you to donate money to Children's Hospital.

100% of the proceeds... >> Five, four, three, two, one.

This round of the competition is closed.

We are done.

We are done.

Let it go, son.

We're done.

Time is up.

>> Sorry.

>> Project Lemonade will return right after this.

>> All right, Timothy, you've taken the marketing test again.

>> I think I aced it this time.

>> Do you?

>> I do.

>> Do you?

>> I do.

>> Okay, well, here's the deal.

>> Okay.

>> You mind if I take my glasses off?

>> No, that's cool.

>> This time you wrote that the four Ps of marketing were the black-eyed pea, the snow pea, the chickpea, and the green pea.

>> Right.

>> How do you feel about those answers?

>> Really good.

>> Take the test again.

>> Okay.

>> Now back to Project Lemonade.

>> Round two: the teams continue to sell lemonade, this time focusing on volume.

>> Lemonade!

Lemonade!

Quality lemonade!

>> Not volume!

Volume.

>> What we're really talking about is not changing much, right?

We have a good strategy, and if it's not broke, don't fix it.

We're going to keep the same size cup, just sell it for 50 cents.

>> So this time we're going to stress the fact that it was 75 cents and now they can get it for 50.

50 cents for lemonade!

50 cents for lemonade!

>> As the hour goes on, I think we should just keep in mind selling and not be so focused on the price.

So if they want to pay less, we should let them pay less, just take whatever we can get as the hour goes on.

>> Because it's not... we're not keeping any of this money.

We're giving it all to charity.

We want to give as much as we can.

>> We're going to win.

I mean... >> We're going to win.

>> Team A is unaware of the deficit they are in against team B.

In order to catch up, they must be very effective selling their lemonade as a cut-rate bargain brand.

>> We stuck up more signs.

We had, like, two more boards up just so we stuck up more signs.

>> Lemonade for Children's Hospital!

>> We were really confident, maybe a little too confident.

But we worked really well together, and we seemed to be selling a lot of product and getting a lot of donations.

>> Thank you so much.

>> You can't just stand there and be like, "Come buy lemonade."

You have to come get people's attention.

I'm more likely to buy something if someone says, "Come over here and buy it," than if someone sits on the ground and is like, "Buy lemonade, please."

>> What we're doing is we're donating.

We're not giving... we're not selling.

We're having them donate.

>> Team B takes the radical step of abandoning price.

Customers are informed they can pay what they want.

>> Donate what you can, and you can get a glass of lemonade.

>> How about three lemonades, sweetheart?

>> All right.

>> Asking people to donate money in exchange for lemonade is actually working better than asking people to buy lemonade.

>> And people are coming to us this time just because they see the sign.

So... and they're giving a whole lot more money than they were before.

>> I think one lady gave us a $20 donation, I think.

>> Hi, how are you doing today?

>> Would you guys like some lemonade?

We're raising money to help Katrina victims.

>> It's working a lot better.

>> And we don't have to worry about change.

>> Exactly.

>> I felt really good.

I was busy, and you know, when you kind of stop and say, "Wow, I'm busy," that means we've got a lot of business.

You know, just it felt good to be working.

>> How about five bucks for a... >> Here, I'll take it.

Thank you.

>> Thank you so much.

>> 50 cents for lemonade!

Only fifty cents!

It was seventy-five!

It was, but we dropped the prices.

We have a customer.

>> We have a customer?

>> We're getting two.

>> Oh, you're getting two?

>> He's getting two.

>> The cut-rate price does lead to an increase in traffic.

>> Goes all to Children's Hospital.

None of it goes to my pocket, although I'd love it.

>> Excuse me.

I'd like to ask you about your method of promotion.

I see your sign says, "We have lemons."

>> Yes.

>> "We made you lemonade."

>> We did.

>> Are you comfortable with the fact that you're sort of deceiving people, saying, "We made you squeezed lemonade out of lemons," when, in fact, it was premade lemonade?

>> Well, well, well, well, now, technically, we don't say, "We hand-squeezed your lemonade."

We say, now, "We have lemons," and we do, and, "We made you lemonade," and we did.

I have it from a very reliable source, actually, that it's very good lemonade.

>> It's really good.

>> Mm, good.

>> I am comfortable sticking by that slogan.

>> Just like I'm comfortable saying, "I have a microphone, it's not hooked up to anything, so why do I have it?"

>> Exactly, exactly.

>> Good deal.

Okay, we're square.

>> Again, only 50 cents!

It's lemonade!

It's not limeanade!

It's not watermelonade!

It's lemonade!

>> Oh, great.

Thank you.

>> Suggested donation?

>> Donate what you can.

>> My team was amazing.

We all worked really well together, and we thought up a lot of great strategies.

So it was really good.

>> This is my dog, Java.

>> I think we did really well.

It was kind of hard at times, because I'd be like, "Hey, how are you doing today?"

and people would just completely ignore me.

But I just smiled, and I said, "Well, have a nice day."

Have a nice day.

>> All right.

>> We had a good team.

>> Only 50 cents!

That's all you have to pay!

>> Thank you.

>> All of the proceeds go to Children's Hospital!

Anything you've got now.... >> Overflowing is good.

>> There you are, sir.

>> Thank you so much.

>> It's really good!

>> It's great stuff.

They're doing good work here.

Thank you.

>> Thank you so much.

>> I think what really works is we each had definite roles.

Like, Christina was always, you know, taking the people in, collecting the money, giving them their change back.

>> Thank you so much.

>> I was always yelling, you know, getting people into it.

>> All of it goes to Children's Hospital-- all of it.

>> We started taking anything anyone had.

We just said, "Give us whatever, and we'll give you how many lemonades you want."

>> And I think that helped, because some people are like, "Well, I don't have exactly 50 cents; I have, like, a quarter."

>> Want to get your change?

>> So hopefully our idea was even though it was cheaper than maybe somewhere else, we were selling more.

>> I don't know how much we made yet, but it feels like we made a lot.

>> Children's Hospital.

>> Christina, Christina, I think we need some intelligence.

I'll be right back.

>> Okay.

>> Be right back.

>> Okay, hopefully he'll come back with some information.

>> All right.

>> Anybody?

Anyone?

>> Hi, would you like to buy some lemonade?

>> Thank you.

>> Hey, how are you?

>> It's going pretty good.

>> Katrina victims.

>> Save Katrina victims by buying some lemonade?

>> Have a nice day.

>> Yes, thank you.

>> It's donate what you can, and all the money's going to help Katrina victims.

>> Have a nice day.

>> He just gave me five dollars without any lemonade.

What a nice guy.

>> Two minutes remaining.

>> Two minutes before we switch to high priced, right?

>> No, before lunch.

>> Before you're done.

>> We're done entirely?

>> Before we're done?

Okay.

>> It's the dramatic moment.

You look at me, and I look at you.

>> A toast to our lemonade stand.

>> All right.

>> Great job.

>> All right.

>> Got to admit, these kids, they're Biz Kids.

>> Thank you so much.

>> Enjoy the lemonade.

One last sale just in the nick of time.

Team, time is up in five, four, three, two, one.... That's a wrap for the competition.

Give yourself a round of applause.

( applause ) Kids, I'm sorry, but the competition is closed in five, four, three... >> Would you guys like to buy some lemonade?

>> ...two, one.

The competition is closed.

A round of applause for yourselves.

How do you think you did?

>> Oh, we won.

>> We won.

>> How do you think they did across the lake?

>> They lost.

>> No, they lost.

>> We didn't have to use grass skirts or anything.

>> They probably didn't even make any money.

>> They didn't keep their dignity.

>> Well, I guess we'll find out, because I'm taking the cash box, and we will see you back at the vault.

>> We won.

>> We won.

>> They don't even need to count the cash box.

We won.

>> Project Lemonade will return right after this.

>> Got the results here from your latest marketing test, Timothy.

>> I really studied this time.

>> I know.

That's the sad part.

You again failed to come up with the correct answers.

>> You mean the four Ps of marketing?

>> It is not Pam, Patricia, Pauli, and Pete.

>> I knew Pete was wrong.

>> Look, I want you to pass this test, Timothy.

>> Right.

>> I'm going to give you the answers.

>> Okay.

>> Here they are.

>> Okay.

>> The four Ps of marketing.

>> Right.

>> Product.

>> Product.

>> Placement.

>> Placement.

>> Price.

>> Price.

>> Promotion.

>> Promotion.

>> What are the four Ps of marketing?

You know, maybe marketing just isn't your thing, Timothy.

>> Maybe I'll become a dancer instead.

>> There you go.

>> Now back to Project Lemonade.

>> Well, the competition is over.

The winners will be decided by which team collected the most money by marketing lemonade both as a premium product and a volume item.

Who will win Project Lemonade, the laid-back members of Team B or the hard-charging, energetic Team A?

>> You know, sell, sell, sell, you're kind of shouting at a nice quiet park.

People are there for a good time.

If you're a bit more laid back, people are going to come to you versus saying, "Come to us, come to us."

Flies don't go to a spider's web if the spider is shouting at them.

Of course, that's a bit menacing, but... >> The single largest amount raised this afternoon was Team B's first hour, in which they set a premium price that customers were comfortable with.

In the second hour, Team A's aggressive marketing of cut-rate product sold very well.

But did it do well enough?

And the results are in.

The team raising money for Hurricane Katrina relief raised $189.37.

>> Yes!

Oh, guys, guys, guys.

>> The team raising proceeds for Children's Hospital raised $157.53.

( cheering ) The winner: the team raising proceeds for Hurricane Katrina relief.

Congratulations to both teams.

After all, we're all winners when charity is involved.

Maybe you should try Project Lemonade in your town.

Until next time, so long.

>> ♪ I think I'll ask a Biz Kid gonna ask a Biz Kid... ♪ >> I felt glad that we got to donate that money to those charities, but I was kind of bummed out that we lost.

But I was glad for the other team, because they did work hard too.

>> Yeah, we're the real Biz Kids, yeah.

>> We had a lot of fun.

>> ♪ Biz Kids!

♪ >> We need to advertise that all of our money is going to a charity.

>> Maybe Relay for Life, but... >> We need to pick a charity that people are going to be like, "Oh, yeah, I want to give money to that."

>> We're in Seattle, and everyone knows Children's Hospital.

>> We need to come up with something great.

>> So Children's Hospital?

>> We're agreed?

>> I'm positive, it's part of the UN.

>> I'm pretty sure that I'm positive.

>> If the cup is this big, we can charge 50 cents.

>> Ah, I think we can charge a dollar if the cup is that big.

>> That will not get us sales.

>> Donating money to Hurricane... >> ...to Common Ground.

>> So our plan is to say, "Donate to Hurricane Katrina victims and get some lemonade."

>> These lemons are, like, you know... >> Freshly made and squeezed by hand-- by clean hands!

( Devon sneezes ) >> Oh, on your elbow!

>> Hey, do you know a successful business?

>> Maybe you're a Biz Kid.

If so, we want to hear about it.

Got some video?

We want to see it.

>> So check out bizkids.com to find out all the details, and maybe we'll see you on the show.

>> Yeah, like us.

>> What's so special about us?

>> We're on TV.

>> Does make us pretty special.

>> Yeah.

>> Just check out the Web site, because if you're a Biz Kid, we want to hear from you.

>> Production funding and educational outreach for Biz Kids is provided by Coalition of America's Credit Unions, where people are worth more than money.

A complete list of individual credit union funders is available at wxxi.org.

>> Every day, America's credit unions help members with their financial needs.

And with programs like Invest in America, it's only fitting that credit unions support Biz Kids, because financial education is what we do.

Learn more at lovemycreditunion.org.

Captioned by Media Access Group at WGBH access.wgbh.org