SAMPLE SALES AND MARKETING FOR COFFEE SHOP

Sales and Marketing

The Coffee Warehouse will offer the best, most highly personalized service in the marketplace.
Being a small, owner-operated company, we intend to use this to our advantage to be absolutely
certain that every one of our customers receive excellent service. We will go out of our way to
make sure that our customers know that they truly matter to us.  Sales reps and in-house
personnel who deal with customers will be carefully trained and given wide latitude for insuring
that customers are always satisfied.

5.1 Marketing Strategy

Our basic marketing strategy is to work with customers on a one-to-one basis to ensure their
supply needs are being met and help develop unique marketing programs for each of them. We
intend to prioritize customer service and make it a key component of our marketing programs.
We believe that providing our customers with what they want, when and how they want it, is the
key to repeat business and positive word-of-mouth advertising. Because we want to develop
close working relationships with our customers, we want to establish accounts in as personable a
way as possible. It is for this reason that we will overwhelmingly emphasize in-person sales calls
to build accounts.

We will closely integrate all of our marketing and sales efforts to project a consistent image of
our company and a consistent positioning of our products and services. We will build this image
around our name "The Coffee Warehouse, Inc." and emphasize to customers the high-quality
service that is behind this name.

To support our marketing initiatives and product knowledge, we will attend as many area
conventions and trade shows as possible to ensure we are offering the most up-to-date market
trend information.

5.2 Promotion Strategy

Relationships are the key to success in the distribution business. Personal selling will remain our
most important means of promotion. Both Steve and Jennifer Smith will lead this effort - Steve,
with his skill and experience in sales and distribution, and Jennifer in customer service and
relations.  In addition to personal selling, The Coffee Warehouse has identified several other
means of advertising and publicity.
The Coffee Warehouse will send news releases to local media and press, as well as trade
magazines to try to get product and company feature coverage in front of the eyes of our
customers - as well as the end consumer. We will also produce a few generic press releases about
the products we are distributing for our customers to use toward publicity coverage for their
businesses in local publications such as the Spokesman, The Inlander and Local Planet.

Third, we shall have a monthly newsletter for current of potential customers. This newsletter will
highlight new and current trends in the industry, upcoming conventions and trade shows, offer
promotions and special deals, as well as provide new recipes, fun tips and other information that
can be used in their business. We will also highlight not just our products, but also display ideas
and success stories of other business in the industry.   As a more straight forward advertising
effort, The Coffee Warehouse will feature an advertisement in the Yellow Pages, frequent ads in
the Spokesman Review, the Inlander, and the Local Planet, as well as participation in
networking, local trade shows, and personal word-of-mouth advertising.

5.3 Distribution Strategy

To begin, The Coffee Warehouse will operate two delivery trucks with a third vehicle for special
deliveries between scheduled delivery days.  Deliveries will be made Monday through Friday,
and will be strategically routed to minimize travel time and fuel costs - while maximizing
production.   On average, we will service 20-30 accounts per day, with deliveries to each account
twice a week. As the number of accounts increase, the need for additional delivery trucks will
continue to be evaluated. With each additional delivery truck, routes will be restructured to
maintain maximum efficiency.

5.4 Sales Strategy

Distribution sales are dependent on repeat business, therefore the sales strategy for The Coffee
Warehouse is based on personal, consistent sales contact, with a high emphasis on customer
service and relations.   Because we are a new distributor, we understand that we will have to
prove our worth to our customers in order to earn their respect and business. Both of the owners,
Steve and Jennifer, will make personal calls on potential customers to review our product line
and services, give general information on our company, and discuss how we feel we can help
them succeed in their business.

The Coffee Warehouse will begin operations with two full-time delivery/sales representatives,
who will be responsible for providing full service and delivery to current customers, but also
make sales calls for potential new business. This delivery/sales representatives will receive a
base salary, with commission on qualified sales, as well as bonuses for new acquired business. 
Customers will be scheduled for a pre-arranged delivery day once or twice a week, depending on
the quantity and timeline of product needed. Product orders can be placed in a number of ways to
help facilitate the process:

 Phoned Orders: Customers can easily phone orders into our office, up until 2:30 p.m. of
the afternoon prior to their scheduled delivery day.
  Faxed Orders: Customers can fax in a completed product order sheet, with the same
deadline as phoned orders.
 Tel-Sell: Customers may choose to have a representative from the office call them the
day prior to their scheduled delivery to check product quantities and assist them in
placing their order.

We understand the hectic schedule of a small business, so if a customer fails to call or fax their
weekly order, they will receive a courtesy call from our office to verify that an order is not
needed.

5.5 Sales Forecast

As indicated in the table, our sales are forecasted to increase rapidly, with an annual growth rate
of approximately 30%.

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Sales Forecast
Year 1 Year 2 Year 3
Sales
Espresso Syrups $415,362 $477,666 $549,316
Chocolate & Caramel Sauces $275,852 $311,713 $352,235
Specialty Beverage Mixes $176,660 $203,158 $233,632
Energy Drinks $44,372 $51,028 $58,683
Concentrated Milk $113,816 $130,889 $150,523
Paper Supplies $1,185,285 $1,363,078 $1,567,540
Marketing $18,305 $21,051 $24,208
Total Sales $2,229,652 $2,558,584 $2,936,137
Direct Cost of Sales Year 1 Year 2 Year 3
Espresso Syrups $345,347 $397,149 $456,722
Chocolate & Caramel Sauces $244,798 $276,622 $312,583
Specialty Beverage Mixes $134,440 $154,606 $177,797
Energy Drinks $36,542 $42,023 $48,327
Concentrated Milk $97,919 $112,607 $129,498
Paper Supplies $888,964 $1,022,308 $1,175,655
Marketing $6,540 $7,521 $8,649
Subtotal Direct Cost of Sales $1,754,550 $2,012,837 $2,309,230
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5.6 Milestones

The following table and chart are the important milestones for The Coffee Warehouse.

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Milestones
Milestone Start Date End Date Budget Manager Department
Market/Trade Research 3/15/2003 5/15/2003 $150 SDS / JLS Marketing
Logo Design/Marketing 4/15/2003 5/15/2003 $1,300 JLS Marketing
Complete Business Plan 4/15/2003 5/30/2003 $90 JLS Marketing
Product/Pricing Comparison 4/15/2003 5/15/2003 $150 SDS / JLS Marketing
Finalize Potential Client List 5/1/2003 5/15/2003 $0 JLS Marketing
Licensing/Incorporation 5/15/2003 6/15/2003 $200 JLS Marketing
Secure Product Line 5/15/2003 6/15/2003 $0 JLS Marketing
Research/Secure Financing 5/15/2003 7/15/2003 $0 SDS / JLS Marketing
Warehouse Selection/Buildout 5/15/2003 6/15/2003 $0 SDS / JLS Marketing
Leasehold Improvements 7/1/2003 8/1/2003 $5,000 SDS / JLS Web
Delivery Vehicle Selection 6/1/2003 6/15/2003 $0 SDS Web
Develop Routing 6/15/2003 7/15/2003 $100 SDS Department
Hire Delivery/Sales Personnel 7/1/2003 7/15/2003 $100 SDS Department
Office
7/1/2003 8/1/2003 $5,000 JLS Department
Equipment/Computer/Supplies
Order Beginning Inventory 7/10/2003 7/20/2003 $20,000 SDS / JLS Department
Press Releases/Advertising 7/1/2003 8/1/2003 $250 JLS Department
Organize Grand Opening
8/1/2003 8/10/2003 $3,000 JLS Department
Trade Show
Totals $35,340