Month 7 - April 17, 2006
Cereal Bowl seeks coffee crowd
BY JIM WYSS
What The Cereal Bowl is looking for in the deal is simple: a 3 percent to 5 percent increase in morning commuter traffic.
``We're going to be targeting just one demographic for right now,'' said Kenneth. ``. . . So it should be pretty clear if it's working.''
Marketing - and particularly market research - is an area often overlooked when start-ups are putting together business plans, said Jack Hardy, the former marketing director for the Western Hemisphere for Colgate-Palmolive, and a small business counselor with the nonprofit group SCORE.
``Most people think they will [get marketing funds] out of their income and don't set aside sufficient money for marketing and research,'' he said. ``It's a very common error.''
The Cereal Bowl had indeed set aside $2,500 in their start-up budget for advertising and an additional $1,200 for marketing and promotion the first year. That initial $2,500 went toward revamping the company's website, and while the owners don't want to disclose terms, the current deal with Kaboo Kaboo more than blows the rest of the marketing budget.
But Kenneth said that by keeping the agency on a monthly retainer - rather than paying per project - should help keep costs down and the Bowl on track.
AIMING TO FRANCHISE
The trio have ambitions to eventually franchise and expand the company. So Kenneth was intrigued when he received an interview request from the producers of Mancow, a Chicago-based shock-jock with a national following.
Last Thursday night, Kenneth was mulling whether it was worth going on a show, where the host is renowned for ridiculing guests. It was an option he planned to discuss with his newly hired marketing firm.
``I don't want to pass up an opportunity to get national exposure,'' he said. ``Of course, as long as we don't make ourselves look like idiots.''
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