Ice Dreams is planning for slow growth by expanding flavors available from 20 to 30 in year two of operation. Also, an additional product to be sold in year two will include ice cream in flavors of vanilla and chocolate.

5.1 Marketing Strategy

Ice Dream's overall marketing strategy will be to create an image of offering the highest quality shave ice in Imperial County. The business will be located in a high traffic area of El Centro. Customers will be reached through advertisements such as fliers, newspaper ads, and through its grand opening ceremonies.

A special marketing program will also be incorporated by offering special coupon prices for nearby restaurants, motels, city pool, the donut shop, and the gas station to customers who purchase any product at Ice Dreams.

5.1.1 Positioning Statement

Distribution of shave ice will be through the business facility only. It is anticipated that in the future, a small portable ice shaver will be purchased such that the product could be sold on site at various fund raising functions through churches, schools, etc.

5.1.2 Pricing Strategy

Shave ice will be offered at the following prices:

• Small $1.00
• Medium $1.25
• Large $1.50

• Regular $0.79
• Large $0.99

• Regular $1.35

5.1.3 Promotion Strategy

Ice Dreams will promote shave ice to customers by:

1. Flier distribution to consumers' homes within a five-mile radius.
2. Newspaper advertisements will be purchased during the first three months of business until a clientele is built.
3. Ice Dreams will offer discounts to recreational groups such as children/adult baseball and football teams who play in nearby facilities.
4. Promoting products for an introductory price at its Grand Opening.
5. Ice Dreams will "adopt a school" and provide shave ice to individuals who are selected for having excellent attendance, good grades, and good citizenship. Other incentives will include sponsoring a good attendance program by purchasing a bike and raffling it to students with the best attendance. This will be a promotional strategy to encourage business.

Major marketing will be conducted through newspaper advertisements and local flier distribution during the first three months of operation. Total costs will be approximately $500.

5.2 Sales Strategy

Sales strategy will be directly linked to marketing programs since all sales will be through the business facility only.

5.2.1 Sales Forecast

Consumer sales will start in January, 1997 (or sooner if construction is completed before the targeted date) with a grand opening anticipated by then. Sales and units costs for the first six months of 1997 are shown in the sales forecast as projected numbers. As indicated, primary sales will occur during the peak warm weather months as noted in the following chart and table.

[graph & table]