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Bus 600 presentation rev 1 cherri edmond 043010

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Bus 600 presentation rev 1 cherri edmond 043010

  1. 2. <ul><ul><li>Caketail Music Café (CMC) is a start-up bakery and coffee </li></ul></ul><ul><ul><li>retail establishment based in Palo Alto, California. </li></ul></ul><ul><ul><li>CMC offers beverage, light food and desserts </li></ul></ul><ul><ul><li>at a moderate price to meet the demand of the </li></ul></ul><ul><ul><li>middle-to higher-income local market area residents and students . </li></ul></ul><ul><ul><li>CMC is equally owned and managed by two partners. </li></ul></ul><ul><ul><li>Miss Cherri Chiang (CALMAT MBA) </li></ul></ul><ul><ul><ul><li>extensive experience in bakery & beverage, sales & marketing. </li></ul></ul></ul><ul><ul><ul><li>5 years of experience in food industry (Restaurant/ Bakery & beverage) in Europe, US and Taiwan. </li></ul></ul></ul><ul><ul><li>Mr. Edmond Low (CALMAT MBA) </li></ul></ul><ul><ul><ul><li>experience in the area of operation, management and administration. </li></ul></ul></ul><ul><ul><ul><li>8 years of experience in food industry (Bakery/ Banquet/ fast food chain) in US, Malaysia, Australia and Thailand. </li></ul></ul></ul>Cherri Confidential Page 
  2. 3. <ul><ul><li>Financial Considerations </li></ul></ul><ul><ul><ul><li>$150k of its own capital, borrow $100k (SBA - 10year loan) </li></ul></ul></ul><ul><ul><ul><li>CMC Sales forecast: </li></ul></ul></ul><ul><ul><ul><ul><li>$ 1.04 mil – 1st yr, $1.2 mil – 2nd yr, $1.39 -3rd yr. </li></ul></ul></ul></ul><ul><ul><ul><li>CMC should break even by the fourth month </li></ul></ul></ul><ul><ul><ul><li>Profits expectation </li></ul></ul></ul><ul><ul><ul><ul><li>~$319k in 1st yr, $375k 2nd yr, and $452k 3rd yr. </li></ul></ul></ul></ul>Edmond Confidential Page 
  3. 4. <ul><li>Mission: </li></ul><ul><li>To offer high quality coffee, tea, and pastry </li></ul><ul><li>products at a competitive price. </li></ul><ul><li>The inspiration of the current active and healthy social life </li></ul><ul><li>around the world. </li></ul><ul><li>Vision: </li></ul><ul><li>The hub of leisure/ entertainment for 61,200 Palo Alto populations. </li></ul><ul><li>It will attract Bay Area customers 7.4 million people and soon expand. </li></ul>Cherri Confidential Page 
  4. 6. <ul><ul><li>Introduce main and new product of “Caketail” that gives consumers a new option on a dessert. (create their own favorite dessert) </li></ul></ul><ul><ul><li>Customers are able to create their own favorite dessert by choosing homemade cake base, freshest fruit, and unique sauce. </li></ul></ul><ul><ul><li>We also provide low-calories combination. </li></ul></ul><ul><ul><li>We have open kitchen where customers can watch the chef create their dessert </li></ul></ul><ul><ul><li>Also provide freshly classic desserts and pastry products at all times </li></ul></ul>Cherri Confidential Page 
  5. 8. <ul><li>CMC improve social interaction in Bay Area. CMC features: </li></ul><ul><ul><li>heaven for all live sports entertainment with giant HD TV screen & > 10 TVs </li></ul></ul><ul><ul><li>free wi-fi internet service for work/ leisure/ stay connected with world and people. </li></ul></ul><ul><ul><li>free magazines and social business board for the customer </li></ul></ul><ul><ul><li>Evening Live performers (soft music and all time favorites music performance) </li></ul></ul>Cherri Confidential Page 
  6. 10. <ul><li>CMC focuses: </li></ul><ul><ul><li>the middle-upper income markets </li></ul></ul><ul><li>Students </li></ul><ul><ul><li>Stanford University yearly enrollment ~ 30,000 students. </li></ul></ul><ul><ul><li>High visibility/ competitive products/ service - critical to capture segment </li></ul></ul><ul><li>Local Residents </li></ul><ul><ul><li>establish a large regular customer base lead to a healthy, consistent revenue base to ensure stability of the business. </li></ul></ul><ul><ul><li>Palo Alto population is 61,200 (2009). Home of high-tech firms. </li></ul></ul>Edmond Confidential Page 
  7. 11. <ul><li>The location : Palo Alto, California </li></ul><ul><ul><li>7,000 businesses with 98,000 jobs. </li></ul></ul><ul><ul><li>premier business location in the </li></ul></ul><ul><ul><li>Bay Area and Silicon Valley for </li></ul></ul><ul><ul><li>a variety of reasons. </li></ul></ul>Edmond Confidential Page 
  8. 12. Edmond Confidential Page 
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  10. 14. <ul><li>Target Market Segment Strategy </li></ul><ul><ul><li>Personal and expedient customer service </li></ul></ul><ul><ul><li>at a competitive price is the key to maintaining </li></ul></ul><ul><ul><li>the local market share of this target. </li></ul></ul><ul><li>Market Needs </li></ul><ul><ul><li>Coffee and Bakery products are very much </li></ul></ul><ul><ul><li>in demand daily. </li></ul></ul><ul><ul><li>Much of the day's activity occurs </li></ul></ul><ul><ul><ul><li>Early in the morning 7am to 10am, </li></ul></ul></ul><ul><ul><ul><li>lunch hours 11am to 2pm, </li></ul></ul></ul><ul><ul><ul><li>tea break 3pm to 4pm, </li></ul></ul></ul><ul><ul><ul><li>happy hour 6pm to 11pm. </li></ul></ul></ul>Edmond Confidential Page 
  11. 15. <ul><li>Service Business Analysis </li></ul><ul><ul><li>Cool marine climate in Bay Area stimulates </li></ul></ul><ul><ul><li>consumption of hot beverages throughout </li></ul></ul><ul><ul><li>the year. </li></ul></ul><ul><ul><li>Palo Alto Coffee drinkers are finicky about </li></ul></ul><ul><ul><li>beverages quality offered at the numerous </li></ul></ul><ul><ul><li>coffee bars across the region. </li></ul></ul><ul><ul><li>CMC will position itself as a place </li></ul></ul><ul><ul><li>where customers can enjoy a cup of </li></ul></ul><ul><ul><li>delicious coffee with a fresh pastry in </li></ul></ul><ul><ul><li>a relaxing environment. </li></ul></ul>Edmond Confidential Page 
  12. 16. <ul><li>Competition and Buying Patterns </li></ul><ul><ul><li>No near level of competition on product quality </li></ul></ul><ul><ul><li>and customer service as CMC. </li></ul></ul><ul><ul><li>High quality product in a relaxing atmosphere demand </li></ul></ul><ul><ul><ul><li>desire a unique, friendly and classy experience. </li></ul></ul></ul><ul><ul><ul><li>Caketail will be our new leading product </li></ul></ul></ul><ul><ul><li>Leading competitor sell product through </li></ul></ul><ul><ul><li>company-operated retail stores. </li></ul></ul><ul><ul><li>Smaller stores and kiosks sell whole-bean coffees </li></ul></ul><ul><ul><li>Current industry retail sales mix – </li></ul></ul>Edmond Confidential Page 
  13. 18. <ul><li>Unique products and environment combination </li></ul><ul><li>A unique food alternative: </li></ul><ul><ul><li>The look, feel and taste of our products. </li></ul></ul><ul><ul><li>Value for money reputation </li></ul></ul><ul><ul><li>loyal follower of coffee dessert lovers and connoisseurs. </li></ul></ul><ul><li>Our products will be served fresh and ready to consume </li></ul><ul><li>Emphasize on the importance of the customer satisfaction. </li></ul><ul><li>Excellent Service /store concept. </li></ul><ul><li>Highly entertained environment. </li></ul>Cherri Confidential Page 
  14. 19. <ul><li>Focus to attract new customers, educate those customers and create a loyal base. </li></ul><ul><li>The following marketing strategies will be </li></ul><ul><li>employed in the first year of business: </li></ul><ul><ul><li>Signage </li></ul></ul><ul><ul><li>Media advertising </li></ul></ul><ul><ul><li>Flyers </li></ul></ul><ul><ul><li>Book coupons </li></ul></ul><ul><ul><li>Word of mouth </li></ul></ul><ul><ul><li>Alliances </li></ul></ul><ul><ul><li>Internet Marketing </li></ul></ul>Cherri Confidential Page 
  15. 20. <ul><li>Sales Strategy </li></ul><ul><ul><li>CMC anticipates sales </li></ul></ul><ul><ul><ul><li>$1,040,250 in the first year, </li></ul></ul></ul><ul><ul><ul><li>$1,202,493 in the second year, </li></ul></ul></ul><ul><ul><ul><li>$1,388,548 in the third year. </li></ul></ul></ul>Page  Edmond Confidential
  16. 21. <ul><li>Success in providing our customers a combination of </li></ul><ul><ul><li>delicious food </li></ul></ul><ul><ul><li>appealing environment </li></ul></ul><ul><ul><li>outstanding customer service. </li></ul></ul><ul><li>Ensure their experience with CMC is enjoyable. </li></ul><ul><li>To establish a loyal customer base. </li></ul><ul><li>Our coffee and cakes will be cooked throughout the day, </li></ul><ul><li>We need to offer fast and quality service. </li></ul><ul><li>Punch cards, meal deals and weekly menu specials to encourage more customers. </li></ul>Cherri Confidential Page 
  17. 22. <ul><li>Sell the company as well as the product. </li></ul><ul><ul><li>comprehensive employee training to offer customers the finest experience. </li></ul></ul><ul><li>Implement a Point-of-Sale (POS) computerized cash register system via internet. </li></ul><ul><li>Strategy focus can be accomplished by: </li></ul><ul><ul><li>Hiring employees who appreciate our unique products. </li></ul></ul><ul><ul><li>Continually assessing the quality of all aspects. </li></ul></ul><ul><ul><li>Interacting with our customers personally. </li></ul></ul><ul><ul><li>Food choices evaluation and keeping favorites on the menu/seasonal specials. </li></ul></ul>Cherri Confidential Page 
  18. 23. <ul><li>Strength: </li></ul><ul><ul><li>Products of extremely good quality and taste. </li></ul></ul><ul><ul><li>Youth oriented brand - huge potential 55 % population is below 24 </li></ul></ul><ul><ul><li>Friendly/ customer first service employee. </li></ul></ul><ul><ul><li>Understand the social/ consumer needs. </li></ul></ul><ul><ul><li>Utilization of new technology as marketing tools </li></ul></ul><ul><li>Weakness: </li></ul><ul><ul><li>New brand image/ lacks strength to maintain brand loyalty. </li></ul></ul><ul><ul><li>Target market characteristics (youth) may risk market potential. </li></ul></ul><ul><li>Opportunities: </li></ul><ul><ul><li>Coffee - fastest growing industry all time ($18billion yearly in US). </li></ul></ul><ul><ul><li>Strategic Location - student. </li></ul></ul><ul><ul><li>New lifestyle trend - active social life/ entertainment </li></ul></ul><ul><ul><li>Healthy lifestyle hang out place – non alchoholic/ educated consumer. </li></ul></ul><ul><li>Threats: </li></ul><ul><ul><li>Competition with other coffee cafes - 7 others café. (but no bakery café concept) </li></ul></ul><ul><ul><li>New entrants of competitor with similar concept. </li></ul></ul>Edmond Confidential Page 
  19. 25. <ul><li>CMC expects to continue its steady growth in profitability over the next three years of operations. </li></ul>Edmond Confidential Page 
  20. 26. <ul><li>to meet CMC's needs as the business generates cash flow sufficient to support operations </li></ul>Edmond Confidential Page 
  21. 27. Edmond Confidential Page 
  22. 28. <ul><li>Key ratios </li></ul><ul><ul><li>for the retail bakery </li></ul></ul><ul><ul><li>and coffee shop industry. </li></ul></ul><ul><ul><li>Standard Industry Classification (SIC) </li></ul></ul><ul><ul><li>Index code,5812, Eating Places. </li></ul></ul>Edmond Confidential Page 
  23. 29. Thank you!!