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The Scratching Post: Executive Summary
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Humans are engineered to like cute things. The term baby-schema refers to a set of facial features (i.e., large head and a round face, a high and protruding forehead, large eyes, and a small nose and mouth) commonly found both in human and animal infants. In classical ethology this specific configuration of features has been described as triggering an innate releasing mechanism for caregiving and affective orientation toward infants and, more recently, its role in promoting human nurturing behavior was demonstrated at the neurophysiologic level using neuroimaging. This, however, doesn’t just trigger us to coo at babies. The idea of the extension of the baby-schema response to the human-animal bond context has gained weight also in the light of some evidence that the bond between pets and their owners shares striking similarities to the relationship between human parents and their children, e.g., the language used to talk to animals mimics the so-called baby-talk.
Our business is drawing on a neurological impulse to flock to cute things, thus creating an undeniable pull to congregate at The Scratching Post more than any other establishment; it’s as close to mind control as the government will allow us to use.
What is a “Cat Cafe”?______________________________________________________________
The concept is simple: a cat cafe features cats in residence, with visitors purchasing entry passes, usually for an hour, to enjoy the privilege of hanging out with the café cats. The Scratching Post will be a relaxing artisan cafe where you can sip on exotic infused water blends, sustainably sourced directly from the lush agriculture of Sacramento, and lounge alongside some furry felines.
Future of the industry______________________________________________________________
Believe it or not, cat cafes are increasingly popular throughout the world — Tokyo has more than one hundred! Regrettably late to the party, the United States has only recently jumped onto the rapidly growing business model of marrying the shelter foster program with a for-profit business. Cat cafes have been an established feature of social life in Japan for over a decade, imported there from Taiwan. Purina ONE was responsible for America's first cat café in New York City earlier this year, but it was only a "pop-up," open for less than a week, and only for educational and promotional purposes. It was extremely popular, however, and NYC will probably open a permanent cat café soon. Oakland's Cat Town Café will be the first in the States, since its owners have already raised a good chunk of funds for their venture and leased a space. Boston, San Diego, San Francisco and Los Angeles are among the cities that have dreamed of opening a cat café, but none have managed to open one yet (no, not even San Francisco, contrary to the hype). Up in Canada, Montreal will open its first cat café this year, as will Toronto and Vancouver. Elsewhere in the world, cat cafés are already thriving in London, Paris, Vienna, Budapest, Munich, Berlin, Spain, Lithuania, Italy and Dubai, and Melbourne's is
coming soon. It’s time for Sacramento to join in on the trendiest themed restaurant experience since Mermaid Dive Bars.
Market need______________________________________________________________
In order for residents of Sacramento to go to a cat cafe they would currently have to go out of the city downtown area to do so. Currently there are no other other plans to put a cat cafe downtown. Our business would fulfill the need of a cat-cafe within the downtown region of Sacramento. Sacramentans would need to travel 85.9 miles into the heart of Oakland in order to quench the thirst for feline company.
Our customers ______________________________________________________________
Our customers will be those who...● Have cats and love their cats more than people● Want a cat, but can’t have one due to landlord or expenses● Are stressed from daily city life● Want to have their finger on the pulse of new trends
Why We Will be Successful______________________________________________________________
1. Our cafe will be successful because it provides a unique idea that other businesses in the area don’t provide and offer as a service.
2. People in the area will be interested in our café, because it becoming a popular international trend.
3. People want to see and experience new things. People get tired of doing the same activities everyday. Our cafe is definitely a new experience.
4. A unique quality of our business is that we are going to have a partnership with Happy Tails and other cats adoption centers. Cat lovers are able to go in to our café, socialize with cats, and can adopt a cat as well if they like to.
5. Having cats will help attract street traffic to our cafe, helping our business grow.6. Cat owners want to socialize and connect with fellow cat enthusiasts and share their
passion. Apart from the internet, there is no ‘dog-park’ for cats.
The Scratching Post: Company Overview ______________________________________________________________
Company Name ______________________________________________________________
The Scratching Post
Type of Business Structure ______________________________________________________________
Our business is a partnership corporation we are three individuals that manage and operate the business. We are all equally liable for the business and we contribute to all aspects of the business including labor, money, property and skills. We all share profits and loss that the business makes.
Ownership/management team ______________________________________________________________
Karenna Grace Miller Pullen (Karenna Müller)
-Company Role: Director; Primarily the creative force behind the prototype idea, Karenna started the wacky idea of a “Cat Bar”. Despite being set on the idea of intoxicated humans being enamoured with cats, the company moved to a more family friendly route and hasn’t looked back. Karenna will mainly be behind Marketing and Public Relations, due to her experience in that area with the Sacramento Zoo.
-Favorite Cat Quote: “I am fond of pigs. Dogs look up to us. Cats look down on us. Pigs treat us as equals.” ― Winston S. Churchill
-Favorite things about cats: Cats are literally the only animal to have an entire Musical about their lives on Broadway, the West End, and International Tours. (CATS! the musical)
Janeth Garcia-Juarez
-Company Role: Nutritionist; Janeth is one of the partners of the Scratching Post. She helps plan what the business is about and how it’s going to work.
-Favorite cat quote: “Time spent with cats is never wasted.”-Favorite thing about cats: Lovable furry four legged friends.
Ryan Zachary Westvig
-Company Role: Designer; Ryan fine tuned the initial businesses building design which led to refinement of core business questions such as our customers, space useage, and facility aesthetic.
-Favorite cat quote: “Four legs good, two legs better” ―Animal farm. -Favorite thing about cats: Love the hijinks they always seem to get into, and scramble
away from at high speeds.
Location ______________________________________________________________
● Sacramento California (downtown)○ 530 12th Street
■ Right across the street is Sugar & Spice Specialty Desserts■ $6 Priority Public Parking Lot across street; Metered Parking on F Street along
side of building.■ 524 Mexican Restaurant sharing the lot.
Company History ______________________________________________________________
Amidst a city devoid of cat related Facilities... A trio of cat-enthusiasts formed a business plan to fill the need for a cat cafe's existence. Their humble beginnings are that of ordinary vietnam war veterans who had discussed life after the war. As they were all imprisoned in the same POW camp, they had many a year to plan out a successful business. Using their bartering skills with guards and other POWs, they formed an economic chain of chocolate, but that is besides the point. Shortly after rescue, some strange force possessed them to go through with this plan they had concocted amidst their time away from home.
Mission Statement ______________________________________________________________
Our mission is as much about serving cats as it is people. We're building a home from the ground up, made expressly for cats. All the kitties at The Scratching Post will be adoptable. The California Animal Control Association estimates that 400,000 pets are euthanized in California shelters each year. Being cute is no defense: In the Central Valley 90% of kittens in shelters are euthanized.
● Create a healthy retreat where humans and cats can hang out to the benefit of both species.
● Facilitate more adoptions by partnering with local cat rescues. So, if you fall in love, you can take 'em home!
● Fulfill a growing market need for an all natural and healthy alternative to soda.
Competitor Analysis__________________________________________________________________________
Cat Town is our only regional competitor. They offer the ability to help cats find homes and cats are able to roam free around the place but do not a relaxing place with flavored water to their customers. They also are only open two days a week when it comes to the cafe, and all they other days they are only an adoption facility. Only 14 People are allowed in the cat room at a time given their inadequate facilities and, let's be real, IT'S LOCATED IN OAKLAND; the armpit of the bay area.
Name The Scratching Post Cat Town Define Bottle
Profile The Scratching Post is a shining example of excellence in the cat-fostering-industry, we make sure that every cat that reaches our property is properly cared for and adopted into a good home.
Strictly a cat adoption facility. Started as a rescue. Recently, lets tack on some tea and cookies. Really two separate things.
The Define Bottle is a sustainable fruit infuser water bottle. The Define Bottle disassembles into multiple pieces for easy access into each compartment.
Marketing Social Media; Instagram for pictures and 15 second videos of our cats, Facebook for Customer interaction, tumblr for hype (modelled after dennys.tumblr.com) Also a well timed press junket to take advantage of the national and international media hype.
Tumblr as their website but not as marketing. A Facebook Page. That's it.
Define Bottle's creator 16 year old Curtis has a twitter.
Product The Scratching post offers flavored water in nine thousand four hundred hundred fifty one flavors and offers the drinks in the same facility as the cats are housed. Customers are allowed to interact with fostered cats every hour on the hour in a custom
Cat Town offers tea for $4 and cookies for $3 (limited selection). They offer cat treats for $0.50 and allows customers to interact with the cats. $10 fee to spend an hour in the cat zone play room.
The Define Bottle is a sustainable fruit infuser water bottle. The Define Bottle disassembles into multiple pieces for easy access into each compartment.
made R&R style room with a massive cat-tree that spans throughout the room.
Strengths Walk in, open caged, charity, located downtown sacramento, cat-preference, larger cat to human ratio than Cat Town.
They have a very helpful staff thats are able to answer any type of questions. They maintain their business as a clean friendly place.
Very ingenious DIY idea with a huge following.
Weaknesses We have nothing to hide and plead the 5th.
Located in Oakland, Cafe portion of business is not located in the same building, inconveniently across the street from the cat adoption facility. Lack of seating not enough chairs for customers to sit. Limited variety of snacks.
Is a product not a company.
Industry Analysis__________________________________________________________________________
At one of Tokyo's first cat cafes, Neko no mise (Shop of Cats), which opened in 2005, the only cats that can't be cuddled are fragile newborns. Neko no mise owner, Norimasa Hanada told Vice magazine, because "most Japanese rental apartments prohibit pets. The only ones that allow them are condominium apartments for families. This means that young, single-dwelling workers in their 20s and 30s can’t even think about getting any pets, despite the fact that they’re stressed out and are seeking comfort and companionship of some kind."
It’s proved so popular that rabbit cafés have even emerged in fashionable areas of the city with a largely female clientele. Although the animal cafés are also an increasingly popular date spot. Japanese are generally known to be quite shy people and young couples find the silent caressing of animals the perfect ice-breaker! Tokyo alone is home to around 100 cat cafés, some of which feature specific cat breeds or styles such as rare breeds, fat cats or ex-stray cats.
Since then, Cat Cafes have set up shop in Taipei, Osaka, Dubai, Seoul, Busan, South Korea, North Korea, Malaysia, Bangkok, Singapore, Austria, Hungary, Germany, Madrid, Paris, Estonia, Lithuania, Italy, Netherlands, Canada, and the Bahamas. The Industry has now
triggered a "cat race" in the United States with numerous businesses racing to monopolize the market of being the only Cat Cafe in their area. Planet Tails in Florida opened in late 2014 becoming the first permanent Cat Cafe on the East Coast despite Purina ONE opening a popup Cat Cafe in New York that had tremendous success but closed after 2 weeks due to it being a marketing stunt. In the West Coast, Cat Town, a rescue group, opened a tiny 'cafe' across the street from their adoption facilities and marketed it as "America's First Cat Cafe". In San Diego, the opening was pushed back due to loss of space. In January 2015, Portland debuted their first Cat Lounge in which patrons can sip on hand crafted brews while interacting with the felines. In San Francisco, despite popular belief, the "Kittea" Tea House has not opened yet because of owner dispute. Just Google "Cat Cafe United States" and countless swarms of Cat Cafe hopefuls will pop up claiming to open soon in 2015. The Industry is going nowhere but up and America is behind the times on the gold mine of Animal Cafes.
In our business some of the potential problems that we might have would be the food health department being in our case for selling food and have cats around. There problem will be that it’s not sanitary to have animals and food in the same place. We will solve this problem by having a wall in the that separates that food area with the cat room. We will sell and serve food in the food area it’s the customer's decision if they take it into the cat room.
The Scratching Post: Customer Analysis and Marketing Strategy______________________________________________________________
Customer Analysis__________________________________________________________________________Behavioral Analysis:
Often, customer behavioral analyses require a more in-depth understanding of the actual decision-making process of the customer’s purchase. Our customers will have the option for both extended and impulse decision making when it comes to purchasing.As far as the “Cafe” part of the establishment, Walk-ins will be absolutely a large part of the sales, as with other small Cafes. However, many of our customers will come on a reservation basis in accordance to their reservation for entrance to the Cat Zone.
When we open, to analyze the purchase patterns and identify the best customers, we will start by evaluating the purchase frequency, ranking customers from highest to lowest in terms of purchase frequency. Then, evaluate total spending (per a specific period of time) by customer, ranked from highest to lowest in terms of dollars spent. Next, we will compare purchase frequency versus total spend. Certain customers will make infrequent but large purchases, like college students that spend $50 for 5 hours in the Cat Zone during Finals Week for study sessions, while others will make frequent but small purchases like Capitol Workers that spend their lunch hour every weekday. The best customers will have a higher lifetime (or average yearly) value. We will reward loyal customers by a loyalty reward program of which an outline will be supplied later in the document.
Customer Demographics:
Our customers are broken into two categories; Tourists and Locals. Locals will be considered tourists until the second visit.
Tourists:
Tourists are a far more varied group than the Locals. Tourists can come from any country or even a couple cities away as Old Sacramento is a Tourist trap bringing in Tour Buses full of visitors from Japan, Europe, and more. These vary from study abroad students to Church groups to virtually any type of person. Ideally, because our marketing strategy includes international news, The Scratching Post will be included in the stops given the novelty and also the little bit of home.
Locals:
Our Local Customers will be in two groups both of which are ‘working’ groups. Sacramento State Students will be a large part of our client base given that dorms do not allow pets and it’s much more exciting to study in a room full of cats than the library. Capitol workers will be encouraged to bring their lunch to de-stress after dealing with awful politicians. Teachers can grade papers while being head-butted by a cat. The Scratching Post’s target demographic will be designed for teenagers and up, however people of all ages will be welcome to partake in the cat festivities, activities, and adoptions.
Psychographics:
This younger generation of target consumers are power hungry. They are business pioneers and up-and-coming management. They look for instant gratification, are motivated by new technologies, and prefer flexible or non-traditional work schedules, because frankly, they are always connected anyways.
Of the four targeted Millennial segments, one is of particular importance to us and our marketing department: “Confident Connecteds.” This group is satisfied and upwardly mobile, and they advocate for their generation. In social media, they’ll post about news that matters to them. They have a strong point of view but are seldom offensive. They’re a group of motivators, posting inspirational quotes, business tips, and guidance.
“Confident Connecteds” are the most likely of the four groups to engage with brands in positive ways. They are avid sharers who respond to promotions, hashtags, giveaways, and
sweepstakes. For them, these actions are less about branding themselves and more about sharing great deals with others and engaging with the brand in order to receive something.
The other three segments are less likely to engage with a brand’s promotions directly. Instead, engagement needs to come from something that provides entertainment value or reflects personal aspirations. “Youthful Pursuits,” in particular, use brands as status symbols, painting a positive picture about themselves and mocking those they see as cheap or “old.”“Youthful Pursuits” seem to be a conflicted group. Through social accounts, they display a mix of self-deprecation and overconfidence. Most posts are centered on themselves rather than other people, news, or brands. Social is their soapbox, and they use it to air drama, complain, and discuss the mundane.
“Indie Dreamers” talk in a similar way, but will buzz more about good and bad experiences with a brand, either by talking about them or directly to them using a company’s Twitter handle. They also mock those who are out of style or outdated. This means they can be a brand’s greatest advocates or biggest detractors depending on their whims.This is a group that is well-adjusted and socially aware, and they enjoy artistic expression. They use social media to share their most valuable opinions and unique life experiences, as well as to connect with their friends and followers (even though a significant portion of their followers may be people they’ve never met).
“Creatures of Comfort” consume a lot of media and, therefore, they consume a lot of ads. But that doesn’t mean they respond well to them. This group is more likely to complain about advertising (either specific content or general oversaturation) and openly ridicule brands with which they have had a bad experience. They don’t talk about the brands/products they aspire to own, but more about the products they use in their daily life, like technology, food, and beverages.In general, “Creatures of Comfort” appear complacent and self-centered, though they’re very connected to the online world. They post about everything: life in general, what they’re doing at the time, conversations with friends, thoughts about the media and products they consume, and aspirations (or lack thereof). For this group, social media is their method of socializing.
Marketing Plan__________________________________________________________________________
The Scratching Post’s products and services will be flavored water, mug, t-shirts with logo and cat adoption. Customers are able to walk in to our business and order from a variety of flavored water. Customers are also able go into the cat room and interact with the cat. If our customers become attached to a cat they are able to adopt it. Our flavored water will cost and average of $5 per hour if they have a cat zone ticket which expires every hour. If customer wants to go in the cat zone there will be a $10 per hour fee.
Our market strategies and tactics are ideally to not pay for any of our advertisement that we put up. We would like to be able to be on the local and national news to promote our business. We would like to promote and market our business on social media we it’s free and anyone can have the ability to see and learn about it. We will but the advertising money to create an app for our business with a kitty cam where our customers are able to watch the cats at all times.
To reach Confident Connecteds, We need to:● Be additive: In their quest for enrichment, “Confident Connecteds” curate brands and
experiences as a way of adding value to their life. If you’re not adding, you’re subtracting from their precious time.
● Build a reputation: As careful planners and educated consumers, “Confident Connecteds” spend after they’ve done extensive research. They’re also more likely to respond to CSR efforts. CSR is Corporate Social Responsibility. Corporate responsibility policies have been gaining increasing attention from senior executives as questions of sustainability and green agendas have come to permeate business the world over.
● Key category opportunities: Health & wellness, sporting goods, consumer electronics, home goods
To market to Youthful Pursuits, We should:● Start the launch here: Because they spend quickly and impulsively to stay trendy,
“Youthful Pursuits” are a prime target for new product lines and extensions, especially in fashion, beauty, and entertainment. Their “look what I got” mentality means word spreads fast.
● Stay aspirational and on your toes: This segment gets bored easily. Brands must constantly evolve and redefine with them. They’re less likely to engage with brands that are considered old.
● Key networking opportunities: Shopping, fashion, beauty, concerts, nightlife, social events
In order to reach Indie Dreamers, We must:● Be quirky and unique: Indie Dreamers want to stand out. They value brands that set
them apart and highlight their individuality and creativity.● Be valuable to their life pursuit: Indie Dreamers are always looking for the benefit in
things, especially how they support their personal goals and identities. Provide them with information, connections, or experiences that support their individualistic drive.
● Key category opportunities: Financial services, home goods, food & drink, entertainment
We may want to focus less effort on Creatures of Comfort, and when we do engage we should:
● Be present, but save our breath: Creatures of Comfort are reluctant to try us in the first place. They are difficult to pull into the fold; they are content in the brands they know and love, and reluctant to engage outside the familiar.
● Don’t look for advocates here: Brand names are lost to them and their social network.● Key category opportunities: Gaming, entertainment
Promotions:
Half Price Finals Days: Targeting Sac State, Los Rios, and UC Davis students to come into the Cat Zone and study for half price.
Party Packages: Rent out the entire facility for a group event such as Company Retreat, Birthday Party, or Retirement Event.
Daily Operations:______________________________________________________________The Scratching Post will be open 6 days a week, with Sundays being closed to the public to give time for new cats to acclimate into the community. Our hours are 9:00am to 7:00pm, Monday through Thursday and 10:00am to 8:00pm, Friday and Saturday. Cats sleep a lot. They also hide a lot. This is natural and healthy. Our cats are projected to meet up to 140 people a day, 6 days a week. If you’re itching for play time, we recommend coming early for the 10AM and 11AM hours, when the cats are most active. For the most part, the rush times will be lunch time when downtown workers are on their lunch break.Long Term Goals:
Our business has infinite expansion possibilities. Between mobile adoption events where we take the cats to regional adoption events to even promotional events with college "De-Stress Fest" where we bring the kittens to College libraries during finals just for a day in order to show the students what we offer. The possibilities are endless.
● Mobile Cat Transport Truck○ Ultimately, we will be able to bring our cats anywhere.
■ A retrofitted trailer optimized for Feline Carrying in comfort and style with our logo on the side.
○ Adoption Events■ With our Truck, bringing some of our cats to Sacramento's Adoptions in
the Park.○ Kitty Ambassadors for Schools
■ With our truck, we will bring carefully selected cats to Elementary Schools in order to present about shelter cats and let the kids interact with cats in a safe way to bring awareness to adoption not buying.
● Retail Water Sales○ Canning our infused water and selling them across the US like Starbucks did with
their half shots of espresso.● Larger Facilities in which we can house even more cats and possibly have a vet on call.
Company Roles______________________________________________________________
Name: Karenna. P Janeth. G Ryan. W
Title: Director of Marketing, Public Relations, and Community Outreach
Fruit Infusion and Customer Nourishment Czar
Feline Engagement Designer
What you do? It is my job to make sure that there is a constant flow of customers and that the hype never dies. Between organizing special events, reaching out to regional, national, and international news entities, making statements regarding public speculation or concern, and going out with the cats to community events, my job is expressly about the Public.
I am in charge of making sure that we have enough fruit to make the flavored water, making sure that the employees that we hire are doing their job properly, helping the employes with the flavored water bar when theres a lot of customers, dealing with customers in the flavored water bar area, and will basically be dealing with Human Relations.
I am the primary designer for all building renovations, custom Inserts, and all other 3D modelling.
Why are you qualified for this position?
With a year at the Sacramento Zoo working in the Public Relations department under my belt, I am uniquely qualified to be in charge of Marketing and Public Relations.
I’m qualified for this position because I have customer service experience from my current job. I get work done on time and like to have everything nice and organized. I’m really good with people.
I am qualified for my role as an Engagement Designer because I am a very skilled digital artist and I have excellent experience in video editing software. I am very familiar with numerous computer programs and how to use them to create videos and design the interior of our building. Which will better suit our customers without violating any health regulations, and to make the building looking like a modern and inviting relaxing cafe.
What does your Logging onto the Supervises Helps manage any charity
daily work schedule look like?
internet and strategically leaking pictures, videos, and statements; Making calls to partners and Investors; Answering Phone Calls from potential customers and news outlets.
employees, shops for supplies, helps workers in the bar area, deals with customers, and makes sure that everything is ready for the next day.
campaigns that the Scratching Post might host, efficiently creates new videos to reflect what is happening in the Scratching Post on a weekly basis, and manages Cat-Zone cleanup before closing.
What contribution are your bringing to the company by being in this position?
Without Marketing, the business will not be able to function.
Keeping the bar part of the business organized. Keeping customers happy and satisfied with our services.
Advertisement, Investors can visualize exactly what they will get into and how our business could look.When not doing the above,I can serve as a jack of all trades to fill in for any absent workers.
Employees Role______________________________________________________________
For our business we would like to get college volunteers for the cat room. Their role would be making sure that the cats are okay and people are not hurting them in any way. We would like to have a student vet come by weekly to check the cats that they are in good help conditions. We would only hire about two people for the flavored water bar. The reason why we would like volunteers is so we gain more profit that loss profit. If we choose to hire everyone we would lose money. The employees will only role would be working in the bar section of the location and serving customers.
Financial Plan______________________________________________________________
In our financial plan we are plan to pay $13,000 in advertising our first month. The reason why we are only pay advertisement in our first month and not the whole year is because after the first month we can advertise for free on social media. The first month that a business is starting is alway cost lots of money to advertise the reason why is because people have no clue about the business that is being opened. The owners of the business want people to get to know about their business by putting up flyers, billboards, commercials, and social media. Our first payment for the insurance will be $1,800 after that the payments will lower down to $1,000 for the rest of the months. We are going to pay a one time feed of $2,500 for a licence. Our rents is estimated to be $3,845 and this is a monthly fee thats we are going to pay through the years that our business is open.
Some of the fixed and variable cost that our business is going to have are:
Fixed Cost Variable Cost One Time Payments
● After the first month business insurance will cost us $1,000
● First month licences will be about $2,000
● Office expenses● Supplies● Utilities
● Contractor labor (building renovations)
● Advertisments● Licence
In order for our business to be successful and make profit the business has to make more that $5,500 per month to get some profit. That will come out to be $66,000 a year.
To start up our business we would need about $302,868 to pay all of our first months expenses. This includes advertisements, contractor labor, insurance, office expenses , and utilities. We believe that our first month is going to be the most expensive one because we have to advertise our business to the public and do a couple of renovations the location that we are going to use. We have to make sure thats there is walls that separate the bar from the cat room. We believe that our business will be successful because a lot of the expenses that we have are a one time thing it’s not a monthly or type of thing. For example signage and contract labor (renovations) will only be needed for our first month. After the first month we’re not going to pay for it again. We have calculated that our monthly expenses will come out to be about $5,365.
● Startup cost: ○ Advertisements $13,000○ Contract labor (building renovations) $260,823○ Insurances $1,800○ office expenses $400○ utilities $500 ○ rent $3,845○ supplies $20,000○ Licence $2,500
Our plan is to get 230K in exchange for 10% equity in our company to give a $2.3 million projected evaluation on our company. Since the investor gets 10% equity of our company it is not a loan but a gratuity offer.
