A.

Current Trade Area

Refreshment
Cafe

We decided to

 Marketing Strategies
1. Location/Distribution

The Brew It Love Refreshment Cafe will be located in the Rizal within the Spokane
Industrial Business Park.  This is a prime location to service both the Spokane and
Northern Idaho market. The facilities will include approximately 5,000 square feet of
warehouse space, with an additional 1,400 square feet built out for office/retail
space.  We are currently negotiating lease terms on the several available properties,
and plan to have a lease signed by July 31.

2. Pricing Strategy
Much of our pricing is determined by market standards. We will make every effort to
maintain a competitive and affordable pricing policy.

3. Promotion Strategy
 We use Premium Strategy because low prices aren’t always the most attractive offer.
When your target audience seeks quality over a good deal, you need to demonstrate the
advantages that your brand can provide. A premium pricing strategy can help you build the
perceived value of your product or service, straight from your initial launch. Your prices may
drop slightly over time, but they should still give your buyers a feeling of exclusivity and, in
many cases, luxury.

For example, Advil always sets a premium price for its products, even when generic
pain relievers are equally as effective. As a result, many consumers choose to
purchase Advil—and may even think it works better—when they’re really just paying
more for a trusted brand name.

- Online Advertising - The Brew It Love Refreshment Cafe will advertise regularly on
popular social media sites, such as Facebook, Twitter, Tiktok and Instagram.
Compared to traditional print advertising, this is a cost effective tactic that will
allow them to reach prospects in a highly targeted way (e.g., based on criteria
such as age, gender, geography, etc.).
- Web Site - the Brew It Love Refreshment Cafe will develop a simple Web site, which
will provide basic information about the business, the menu, and links to their
presence on the aforementioned social media channels.
- Radio Advertising - During the first six months of operation, and during the busy
holiday shopping season, the business will advertise on local radio stations.
 Our Official logo & Packaging

Vacuum sealed
Plastic cover
Fat straw

Business logo

Tea mixed with Container

Fruit,ice crea and milk

4.4.2 Logo
Brew It Love
Refreshment Cafe

Table 1

Pricing

PRODUCT QUANTITY PRICE

Sorbetea Per serving (500ml) 50.00
Fruit tea Per serving (500ml) 60.00
Classic tea Per serving (500ml) 70.00
Creamy Coconut milk tea Per serving (500ml) 60.00
Honey tea Per serving (500ml) 65.00
 The FINANCIAL PLAN

Financial Assumptions:
 The sales forecast is conservative and assumes a 5% increase in Year 2, and a 10% in Year 3.
 The analysis accounts for economic seasonality – wherein some months revenues peak (such as
holidays ) and wane in slower months.
 The analysis assumes the owner will take a much smaller salary compared to his baristas; at any
time it is assumed that owner’s withdrawal is available at his discretion.
 Sales are cash basis – nonaccrual accounting
 Moderate ramp- up in staff over the 3 years forecast
 The average barista salary in 2012 is $50,000.
 In general, most cafes have an 85% gross profit margin
 In general most cafes have a 3% net profit margin
 Start-Up Costs

Following are the needed start-up costs associated with the Brew It Love Refreshment Cafe:

Start-Up Costs