Wide Awake Cafe Case Study

Words: 459
Pages: 2

Place (Distribution) Strategy
Distribution includes the entire process of moving the product from the factory to the end user. The type of distribution network you choose will depend upon the industry and the size of the market. A good way to make your decision is to analyze your competitors to determine the channels they are using, then decide whether to use the same type of channel or an alternative that may provide you with a strategic advantage.
Some of the more common distribution channels include:
Direct Sales -- The most effective distribution channel is to sell directly to the end-user.
OEM (Original Equipment Manufacturer) Sales -- When your product is sold to the OEM, it is incorporated into their finished product and it is distributed
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Financial Data & Projections
Past Sales Revenues: Wide Awake Café has not been operating previously so there are no past sales revenues to report.
Five-Year Projections
The cash flow for Wide Awake Café is projected to break even the first year and increase by eight percent per year over the following four years. A study performed by Matthew Shum and printed in the Journal of Economics Management Strategy shows that advertising does have an impact on overcoming brand loyalty (Shum, 2004, p. 262). Placing ads on popular social networking sites will allow Wide Awake Café to attract a larger percentage of the foot traffic that passes our café. Contests and promotions will attract a higher percentage of that foot traffic as well, and the increased number of customers will directly affect our cash flow. Increased traffic in apparel stores has been linked to increased sales volume, although with diminishing returns in a study performed by Olga Perdikaki, Saravanan Kesava, and Jayashankar M. Swaminathan (Perdikaki, Kesavan, & Swaminathan, 2012, p.145). Coffee shops have a higher rate of conversion for traffic and sales to begin with so the projected sales volume will increase more reliably than the businesses used in the