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Executive Summary

NoCo plans to become the new hotspot for students in the Greeley area to spend their nights. Its target market will be that of

local college students who are least 21 years old. NoCos prime location will be 807 17th St, which is a promising one due to its close

proximity to the University of Northern Colorado campus. The bar layout will be one that allows for both a relaxing atmosphere and a

party atmosphere at night. NoCo will have couches within it to provide the relaxing feeling, along with beer pong tables, pool tables,

and plasma televisions for the more traditional bar setting. Advertising efforts will target college student specifically in a variety of

ways including use of the Internet, including its own website with a virtual store for NoCo apparel, text messaging, and flyers. Print

ads use either a humor element that highlights NoCos close location to student housing or blatant sex appeal.

NoCo will be a purely alcohol (beer and liquor) based bar. Shirts, hoodies, shot glasses and pint glasses will also be available

for sale. The projected annual sales amount to $362,350.46. Though this seems like a low sales amount, with the annual cost of

goods sold being low, NoCo will still be able to turn a positive net profit. The pricing is relatively low in order to cater to the student

target market. With the markup kept well above fifty percent on all inventory items, the prices will bring in the market wanted and

will still benefit profitability. NoCo expects to see higher profits in the months that students arrive back at school and the months of

graduation that accompany the end of the school year. Over the summer months, profits will decrease, but with the remaining student

population in the city profits are still expected.

Overall, NoCo will excel within the bar industry by appealing to college students with cheap drinks and a prime location.

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TableofContents

Introduction 4

Target Market 4

Location 5

Store Design 5

Merchandise Plan 7

Pricing 10

Financial Section 13

Advertising 14

Salespeople 17

Virtual Store 18

Conclusion 18

Appendixes 19

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Introduction

NoCo is the next great student bar in the Greeley area located right off the UNC campus. Students will come to NoCo for the party

atmosphere, cheap drinks and nightly specials. It will be located within walking distance of virtually all student housing, making it the

premier student hangout. The design of this proposal is to create familiarization with NoCos business plan and goals. With your

financial support, this project will surpass all expectation for years to come.

Target Market

The Target market for NoCo will be college students at UNC and Aims Community College who are over 21. Total current enrollment

for UNC is 12,148 undergraduate and graduate students. Estimated enrollment numbers for AIMS are around 2000 for the Greeley

campus. Of that 2000 an estimated 1000 will be 21 or over and eligible for the target market. The numbers below are estimates of

amount of academic year students that meet our age criteria of 21. NoCo chose this target market for several reasons. The owners are

part of this target market, can more accurately assess what

their peers want to see in a student bar, and can put our own

input into the operations as they have a similar thought

process to the target market. NoCo chose this because of

the success other bars have had in the area. There are

several student-oriented bars in the area many of which are

doing very well. This indicates that college students are

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currently visiting these local bars on a frequent basis. NoCo will be able to compete for this target market because it will be the closest

bar to the UNC campus and within walking distance of a large amount of student housing, including every fraternity and sorority

house affiliated with UNC.

Location

Owners chose Nocos location primarily due to its close location to the student population. As the view from simplymap indicates, the

area surrounding NoCos location is highly populated with people enrolled in a public college. Similarly, the area surrounding the bar

contains a great amount of non-family households with people under the age of 25 with very low incomes. Clearly, this description fits

that of the target market of college students. Data from simplymap also indicates that the demographic surrounding NoCo are heavy

beer drinkers. This information indicates that the 807 17th St location in a prime one for NoCo.

Store Design

The design for NoCo will focus on creating a relaxing atmosphere that will be very welcoming to students. There will also be a central

open space for Friday and Saturday nights when crowds are larger, a wrap around bar in the southeast corner that will seat

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approximately 18 stools, and nine tables that will seat four people. The tables will be very small, as NoCo will not serve food. All

tables in NoCo will be high top with stools. The west wall will have a seating area with one couch and two large chairs centered on a

television. This small seating area will be for those who would like a more comfortable experience. The bar will have three televisions

behind it; one placed in the southwest corner and one placed on the north wall. NoCo will also have beer pong tables that will be

stored and brought out if requested. The dcor

will be very college oriented, but will not be

exclusively UNC. NoCo will place an emphasis

on college team apparel, with framed jerseys and

college signs. NoCo will not allow CSU or CU

dcor, as this would anger our specific target

market. There is one bathroom internal to NoCo

and two additional bathrooms if one were to exit

NoCo and take a left down the hallway. The

northwest corner will be storage space as

designated by the existing layout.

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Merchandise Plan

Due to this target market, NoCo will keep its alcohol inventory basic with wells being the majority of the liquor sales, with the

occasional higher priced liquor also available. The inventory will be strictly alcohol and beer, along with t-shirts, hoodies, shot

glasses, and pint glasses sold in the virtual store. NoCo will open doors in January when students get back from Christmas break. This

will make January the highest income month. May, September, and December will be the next most profitable months because of the

return of students to school and the graduation months. The summer months will be the lowest profit months.

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The sales forecast was found by taking the NAICS code (7224) for bar establishments from the government census (Accommodation

and Food Services Colorado, 2002). Colorado bars sales were then divided by the bar establishments in Weld County, one was then

added, followed by inflation because the numbers were from 2002. Although this number seems low, due to the hours and being a new

bar with limited merchandise assortment, this is a proper number from which to base the sales forecast.

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NoCo receives its beer inventory from three different suppliers: American Eagle Distributors, Western Beverage Distributing Co., and

High Country Beverage. NoCo will use Pepsi Bottling Group as the soda provider. Southern Wine and Spirits, Beverage Distributors,

and National Distributing will be the liquor and wine suppliers. Through building relationships with suppliers, prices are expected to

decrease over time, while also receiving promotional items from them such as bar mats, posters, and coasters.

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Pricing

NoCos prices reflect the average beer or drink specials in the area. In order to appeal to the student demographic, items were priced

on the lower end of the spectrum. The markups used were calculated by taking the retail price minus the retail cost and then dividing

by the retail price.

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NoCos prices reflect the average beer or drink specials in the area. In order to appeal to the student demographic, items were priced

on the lower end of the spectrum. The markups used were calculated by taking the retail price minus the retail cost and then dividing

by the retail price.

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Financial Section

NoCo owners have decided to invest $20,000 of their own money into starting up the bar and to get a loan for $60,000, combining for

$80,000. This will cover the capital budget and starting costs, while still having extra for any other costs incurred. Our bar equipment,

dishes, furniture and fixtures, and other miscellaneous items were bought from shortorder.com, barsuppliesdirect.com, acemart.com,

and billiardstore.com.

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Advertising

NoCo will institute various marketing and promotional strategies in order to increase brand awareness in UNC students over the age of

21, while also differentiating it from competing student bars in the surrounding Greeley area.

Internet: NoCo will use Facebook in various ways to generate buzz and to update customers about upcoming events and specials.

NoCo will use different formats within Facebook to increase the likelihood of the target market seeing the marketing efforts displayed

on it. For instance, NoCo will have its own profile so that fans of the bar can become friends with the bar, thereby getting status

updates from managers of NoCo. Similarly, NoCo will have its own group and fan pages so that fans can follow its happenings.

NoCo will also design a website that describes the different events, promotions, and drink specials taking place during different nights

throughout the year.

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UNC Newspapers: NoCo will use student newspapers, such as The Mirror,

as more traditional forms of advertising, placing full-page ads in each

edition. These ads will highlight NoCos close proximity to campus and

student houses with the tagline Luckily homes only a block away.

Different advertisements will use different images; however, most will

include pictures of a man crawling home after a long night of drinking. The

other advertisement used will appeal to the male members of the target

market containing images of attractive women wearing to NoCo logo. The

cost of running such ads in The Mirror is $412.50.

Campus Cash: NoCo will have coupons placed in the campus cash booklets given to

UNC students. These pamphlets target college students specifically, correlating perfectly

with the target market. Coupons will run during both the fall and spring semesters,

costing $699 for the entire year. The coupons will offer buy one get one free pints, or a

price Mind Eraser.

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UNC Radio: UNC Student Radio will run advertisements throughout its

programming. This station plays over radio waves and also on one of the cable

channels in the dorms. This advertising will focus specifically on marketing towards

the target market. Not only will we purchase commercial slots from the radio station,

but also owners will schedule interviews to promote the bar on a more personal level

by talking about the bar, its atmosphere, and the goal of NoCos owners to have a fun

environment for UNC students.

Flyers: NoCo will have flyers placed throughout campus and surrounding areas. The

most heavily covered locations will be that of Kepner, Frasier, Candelaria and the near-by parking lots. This will result in a higher

traffic rate for NoCo. These flyers will remain consistent with the crawling home print ads that will run in newspapers.

Campus Reps: Employees will act as campus reps in order to create a more personal level of advertising. People tend to be more

receptive to advertising and promotions from people they can relate to; therefore, these campus reps will be students that have a high

level of influence on their peers. These reps will wear t-shirts with the NoCo name and logo and have merchandise to sell to anyone

interesting in purchasing a shirt of their own. Wearing these shirts will be a beneficial grassroots marketing technique; producing a

greater awareness level of the bar.

Text Messaging: In NoCo, there will be a sign-up sheet for people who would like to receive text message alerts about new events,

promotions, or drink specials, similar to the idea of a mailing list, only instantaneous. This will allow NoCo to relate to dedicated

G r eeley s hottes t new co l lege bar . 807 17 th S t. N ext to Chipotle.

$1 .5o Happy Hour Pints Mind Er as er s : $2 .00 each Long I s lands : $2 .50 each

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customers on a more personal level and keep them up-to-date with news regarding the establishment. This technique is particularly

relevant members of the Gen Y target market, who are very technologically savvy and love instantaneous information.

Salespeople

NoCo will employ eight employees, including one

manager and the owner, who will also work as a

manager. The six bartenders will earn an hourly

wage of $4.50/hour plus tips, while the managers

will receive $15/hour plus any tips. Paychecks will

be distributed biweekly on the 5th and 20th of each

month, based off pay periods ending on the 15th

and 30th or 31st of each month. Benefits will not be

available during this stage of the business

operation. The bartenders will work on a rotational

schedule, with four working five days a week, and

two working four days a week. Only one manager

will work each day, with the owner working four,

including Saturday and Sunday. Following the

Bartender'sSchedule

Monday Tuesday Wednesday Thursday Friday Saturday Sunday

2:30pm

10pm A F E D B C E

4pm

10pm B A C E C B D

10pm

2:30am C,D D,E B,F A,F E,D A,F B,C

Manager'sSchedule

Monday Tuesday Wednesday Thursday Friday Saturday Sunday

2:30pm

2:30am A A B B A B B

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schedule above, the average amount the bartenders will earn per week is $118.13 with an average of 26.25 hours worked per week.

The manager that is not the owner will earn $540 per week. It can also be determined that the average quarterly labor costs for NoCo

will be $14,985.00.

Virtual Store

The website will be a marketing tool and have information on

NoCos location, a live webcam, and a virtual store. This will be an

important marketing tool because the target market uses the internet

very heavily. The webcam will enable customers to see what is

going at NoCo and whether they would like to patronize it. There

will also be a virtual store on the website that will sell t-shirts,

hoodies, shot glasses and pint glasses imprinted with the NoCo logo. These products will be mass-produced from zazzle.com and

discount mugs.com. A PayPal account has been set up which will enable NoCo to set up a bank account for income to be deposited.

Conclusion

The information provided has illustrated that NoCo will be a very profitable business venture from which any firm could greatly

benefit. With its prime location, excellent target market, and sound management structure, NoCo is ready for success. Students will

pack NoCo with business on a nightly basis and it will become the place to be in Greeley. NoCo is a new kind of student union and is

primed for success.

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Appendix A

Simplymap information regarding location (highlighted section is area closest to NoCo):

Variables 2022st2123ave 2028st3547ave 1619st811aveGreeley,CO

ALLOFUSA

GeographicUnit CensusBlockGroup CensusBlockGroup CensusBlockGroup

#EnrolledPublicCollege,2008 158 427 1,452 11,387 12,920,032%EnrolledPublicCollege,2008 16.76% 12.33% 85.66% 12.56% 4.45%

%