I.

Executive Summary

Business Overview: Since opening in the summer of 2014, Cloud 9 has

established its business as a community oriented teahouse, providing a welcoming
environment for people to hang out and enjoy delicious desserts. Their most popular
desserts are their milk teas, shaved ice, and ice cream burgers. What sets them apart
from their competition is their friendly service, superior drinks, and their game room that
has a WiiU. They mainly target Generation Y, since they are located near the local high
school.
Problem: Cloud 9 has to think of new promotional ideas and new items to add on the
menu in order to keep up with the competition. Currently, Cloud 9 mostly serves dessert
items and a few finger foods.
Research Methods:
-SWOT Analysis
-Yelp.com
-Facebook.com
-Customer Surveys
-Secondary Research
Key Findings:
Limited menu items
Lack of promotion
Lack of distinguishable exterior and interior features
Underutilization of large space (Only seats 25 people inside, 5 tables and
4 couches)
Needs renovations to make establishment look more appealing and
modern
Lack of modern furniture
Proposed Strategies:
1) Increase promotions and advertising to attract new customers
2) Add more food items to the menu to increase variation
3) Revamp interior/exterior seating and game room to make customers feel
more welcome

II.

Introduction

Yummy drinks. Simple and clean atmosphere. Great service with a smile. 10/10
would come back again. New chill out spot in CV.
A. Description of the Business or Organization
Cloud 9 is a newly opened Asian drink and dessert tea house near the local
highschool of Castro Valley. Since opening in June of 2014, Cloud 9 has captured the
attention of many through their delicious milk teas, unconventional desserts, and their
very popular game room that features a Nintendo Wii U. One of their most popular
desserts is their ice cream burger, which is a few scoops of ice cream packed in
between two rolls of toasted sweet bread. This is a very uncommon dessert, and is one
of Cloud 9s best selling products.
As for their milk teas which are made fresh by
the hour, many customers have agreed that
Cloud 9s milk teas far out match their
competitors teas, which is the global wide
teahouse Quickly. What sets them apart from
Quickly is that Cloud 9 uses real tea, compared
to Quicklys usage of milk tea powder. Using real
tea gives Cloud 9s teas a more authentic taste.
The milk teas can also be infused with more than 1 flavor, so customers can be creative
and mix and match their drinks. Usually, milk tea is ordered with tapioca, which is a
chewy black ball of starch marinated in brown sugar. In some tea houses, the tapioca is
hard due to being left out for too long. Cloud 9 makes sure to keep their tapioca fresh,
and makes a new batch every two hours.

The last part of Cloud 9s appeal is their game room, which consists of: a 42 inch
flat screen television, Wii, WiiU, 5 of the most popular games for each console, five
controllers, and four comfortable couches. The game room appeals to all ages and
many people will come to Cloud 9 just to play with the consoles, while at the same time,
purchasing a dessert of drink. Once in a while, Cloud 9 will host a tournament of their
most popular game, Super Smash Bros Brawl, which brings in many new customers.
B. Description of the Community
i. Geographic
Cloud 9 is a small teahouse that seats up to 25 people inside, and 12 people outside.
Inside, there are 5 tables, and 4 couches, which are sometimes not enough to satisfy
the amount of customers during a rush.
Although Cloud 9 owns their own personal
parking lot, space is limited and is easily filled.
Before Cloud 9 opened up in June 2014, it was
owned by an old fashion Swiss Bakery. It is located about four blocks away from Castro
Valley High School, and attracts many high schoolers.
ii. Demographic
Castro Valley is a bedroom community located in Alameda County, California.
There are roughly 61,000 people, according to a 2010 US census, and the racial
makeup consists of: 58.0% White (49.5% non-Hispanic), 6.9%African American (6.6%
non-Hispanic), 0.5% Native American, 21.4% Asian, 0.7% Pacific Islander, 6.1% from
other races, and 6.3% from two or more races. 17.4% of the population was Hispanic or
Latino of any race. Most of Cloud 9s customers are Asian, and Asians only constitute

21.4% of Castro Valley. From this, we can presume that most of Castro Valleys
population hasnt been exposed to Cloud 9, and that there is a big untouched market.
iii. Socioeconomics
The median household income is about $62,115 in Hayward and $78, 575 in
Castro Valley as of 2011, placing these towns in the middle-class range.
There are currently 12 active employees, most of which prepare the drinks and
desserts. Most rushes occur when the high schoolers are released, and last around two
hours. Cloud 9 serves as a social hub for many teenagers. Their current operating
hours are: Sunday through Wednesday from 11 a.m to 9 p.m, and Thursday through
Saturday from 11 a.m to 10 p.m. Cloud 9 has not had any renovations yet, but continues
to add new items to their menu. The teahouse is not currently running any promotions
or offering any specials.
C. Problems Identified and Objectives
Since opening, Cloud 9 has made an impact in the market as a hot site to get
desserts and hang out with friends. But, since they have not made many renovations,
their interior space is outdated and lacks mainstream appeal. Over the past few months
customers have uncovered problems which have damaged their reputation and may
have resulted in the loss of some customers.Some of these problems include: a
primitive atmosphere, lack of consistent promotion, and little exposure. With the
proposed reconstruction and revamp plan, Cloud 9s reputation and sales will skyrocket,
as they transition into a more modern 2015 lifestyle.

III. Research Methods used in the Study

D. Description and rationale of research methods and processes used to

conduct the selected research methods
The research methods we used to conduct this study are: SWOT analysis,
gathering data from Yelp.com and Facebook.com, and handing surveys to customers in
Cloud 9. Using SWOT analysis helped us gather data quickly and efficiently. This
allowed us to pinpoint Cloud 9s strengths and weaknesses. We also used SWOT
analysis to gather data of competitors, and how Cloud 9 can rise above them. From
viewing the data we collected through this research tool, we were able to construct
strategies and ideas.
We also gathered data from Yelp and Facebook. Both were very effective in that
they provided us with a multitude of reviews, both positive and negative. This helped us
identify problems and strengths. The reviews posted on Cloud 9s facebook page and
Yelp page were personal, and gave us ideas on promotions and renovations that were
needed.
Although there were many reviews on Cloud 9s facebook page, there arent too
many posts by Cloud 9. Cloud 9 also has an instagram account, also which isnt
updated too often. Cloud 9s social media influence can be expanded on, which will help
with their exposure.
A customer survey was conducted online and specifically at the teahouse after
customers had purchased and consumed their items. The survey contained questions
about what improvements customers would like to see, overall rating of the menu items,
and basic demographic questions. A great amount of feedback was received from the
Customers for minor and major improvements for the teahouse and most importantly

what they liked. The survey gave us responses that showed what Cloud 9s customers
desired from the teahouse.
Information from the SWOT analysis, Facebook.com, Yelp.com, customer
surveys, and personal interview provided many new insights and accountable
data on the teahouse.

IV. Findings and Conclusions of the Study

iv. SWOT Analysis

Strengths

Weaknesses

Drinks are superior to their

competition (Quickly)

Limited menu items

Within walking distance of Castro

Valley High School

Lack of promotion

Exotic desserts

Underutilization of large space

Game room with the WiiU

Outdated interior

Open late

Minimum $10 charge for credit cards

1 of 2 teahouses in Castro Valley

Opportunities

Threats

More promotions via social media

Competitor, Quickly, is an established

teahouse

Renovations to interior and exterior to

modernize

Recently opened in June 2014

Expand menu

Similar operation to other teahouses

(Snowcrave, T4, Quickly, etc)

Take advantage of location near High

Cost of potential renovations would be

School

high

Cloud 9 has done well for a restaurant that just started out. They have made a
big impact in the Asian drink/dessert market, and have created a name for themselves.
With their excellent customer service, great food items, game room, and their
convenient location, they are doing well for just having opened in July 2014. Cloud 9 is
mostly well received by its customers, and has a good reputation. Since they close late
they are viewed as more reliable since a good amount of rushes occur at around 8-10
p.m.
Even though Cloud 9 has achieved some success, a few flaws hold them back
from soaring to the top. One area of improvement is their menu. Although it contains a
few popular unique desserts, profits would be increased if they expanded their product
line into real food. Their dessert and tea sales are great, but customers would spend
more money if there were finger foods or something more substantial.
Another area of improvement is the interior and exterior make up, as it could be
more appealing. Cloud 9 has four tables in their main room that seats four people per
table. This is inefficient because tables fill up easy. There should be smaller tables with
two chairs each, so that more people can be seated. Also, Since Cloud 9 is a bit
hidden, they need to have multiple signs outside that show people they are a fully
operational teahouse. Even though it is near the high school, many high schoolers are
unaware that this establishment exists. Most people hear about Cloud 9 through word of
mouth. This ties into the underallocation of social media. Cloud 9 is not very active on
social media, which hinders their growth and exposure.

In spite of these flaws, Cloud 9 has a lot of opportunities to climb to the top. Their
convenient location near the high school and Castro Valley Village is very key. They
could possibly do collaborations with the high school to increase sales and awareness.
If they take advantage of all the positive opportunities that they are presented with, then
they will be more successful. This SWOT analysis revealed a lot of Cloud 9s strengths
and opportunities, but also revealed a few areas of improvement that need to be
addressed.
Conclusion: From this analysis, we gathered that Cloud 9 should: be more
active on social media, modernize their exterior and interior, add more variation
to their menu, and increase promotional activities.
v. Yelp.com
On the Cloud 9 Teahouse yelp view page, about 125 reviews popped up. This
may seem like a small amount of reviews, but considering that they have only been
opened for about 6 months makes up for that. Overall, the teahouse has a four star
rating, which is strong for a small and new business. The first thing that stood out when
reading the reviews was the many praises of Cloud 9s ice cream burgers. Many
reviewers raved on about the burger, saying things like, Ice cream and crunchy and
gooey toppings... really addicting! or, Your choice of ice cream with your choice of
spread in between two pieces of bread. What's not to love?. Cloud 9s ice cream
burgers are said to be soft and delicious. Customers love the fact that they can
customize their own creative and
unique ice cream burgers.

Many also praise their selection of customizable drinks. Although their menu is
limited, the customizability allow the customers to order a specfic made drink to their
liking. From their classic black milk tea to their pleasing fruity flavors, everyone is sure
to get what they want. Another menu item that is loved are the soft and fluffy shaved
snow. Some customers have gone as far as saying, one of the best snow ice I've ever
had in the Bay. and Cloud 9 has definitely won me over in the snow ice department..
Customers enjoy that the menu items are easily customizable and the various array of
toppings and flavors. While Cloud 9s delicious menu items are sure to please, many
customers and families enjoy the warm and cozy atmosphere in the teahouse. With the
various seatings in Cloud 9, anyone can find a nice place to sit and enjoy their order.
The game room, patio and indoor seating suits many peoples likings.
While customers have few complaints about the foods and drinks, Cloud 9 lacks
in other aspects. The main concern being the limited beverage menu. Currently Cloud 9
offers two tea flavors; green and black tea. Although their great range of flavors make
up for this, an expanded menu would be appreciated. Another weakness that the
reviewers mentioned is interior and exterior ambiance. Many viewed the front of the
teahouse to resemble a real house and outdated. Some customers also mentioned the
spacious interior, but would like to see more physically attracting space. The layout is
very bland and a new renovated space could easily fix these problems.With new
competitors investing more into their physical appeal, it would be a great benefit for
Cloud 9 update their exterior and interior space.

Conclusion: People praise the unique and pleasing customizable selection of the
menu and the cozy, warm ambiance, but were concerned with Cloud 9s limited
menu and outdated look.
vi. Social Media
Cloud 9 uses the three most popular social media apps those being Instagram,
Twitter and Facebook. To begin with, the teahouse has their own official website to find
hours, menus, location, etc. However their website could be expanded to fit the more
professional and business side.
Almost all of Cloud 9s social media websites are
updated every month. You can catch images of the
latest the menu items on instagram, important
messages on Twitter, and recent post on Facebook.
With the addition of Yelp, customers can read the
pros and cons of real reviews and chime in if they
want too. Cloud 9s constant updates and promotion benefits their expansion greatly.
With the continuing growth of Cloud 9 customers, more and more users will follow their
social media pages. Their promotion and advertisement on social media will benefit
Cloud 9 due to the continuing advances and prominence of technology.
Conclusions: Cloud 9s use of technology and social media is benefiting them
immensely and they should continue to update their pages with deals, special
events and relevant info.
vii. Customer Survey
30 customers were randomly surveyed to get an idea of what they thought of the
establishment, what promotional ideas would work, what they wanted to see in the
10

future, and some improvements. The data we collected is not completely conclusive, but
it did give us some insight as to what promotions and strategies might work. Listed
below are the results from the survey:
# of visits per
week

# of customers

11

How customers heard about Cloud 9

# of customers

Social Media/Internet

Friends/Family

24

School/Work

Other

Should hot foods be # of customers

added to the menu?
Yes

30

No

Do customers use a # of
frequent buyer
customers
card?
Yes

21

11

No

Do customers order # of customers

bobba/jelly with
their drinks?
Yes

22

No

How does Cloud 9s # of customers

prices compare with
other teahouses?
Great

Good

13

Average

12

Overpriced

How would you rate your overall

experience at Cloud 9?

# of customers

1-2

3-4

5-6

7-8

11

9-10

18
Through this survey, it is evident that most of the customers at Cloud 9 go on a

consistent basis. 37% of customers said they go 2 times a week, and 20% said they go
3 times a week. Cloud 9 definitely has a lot of regulars, as it serves as a hangout spot
for many teenagers. Price-wise, customers say the price is around good to average,
12

with 83% of customers in that category. This shows that the price is satisfactory and
doesnt need to be altered. As for the stamp cards, 70% of customers use it. For bobba
and filling, 73% of customers order it with their drinks. We posed these questions to get
ideas for promotions and specials, which will be expanded on later in the report. For hot
foods, a whopping 100% of customers
said that there should be hot foods.
The question about hot foods on the
survey asked for suggestions of which
hot foods. Suggestions included:
popcorn chicken, fried rice, hot dogs,
chicken wings, and chicken fingers. All
these suggestions are viable because
of their easy preparation and storage.
Lastly, we had a question that asked for any comments or suggestions. We
received multiple compliments on the game room and the food. But, we also received at
least 6 comments on how the ambiance needed some renovations. This confirmed one
of our initial deductions on what needed improvement.
Conclusion: From the customer surveys, we can conclude that the customer
satisfaction rate is pretty high, but some improvements and additions can be
made. We also received confirmation for a few promotional strategies that we
were planning to implement.

V. Proposed Rebranding Plan

E. Objectives and Rationale of the Proposed Rebranding Plan

13

After conducting extensive research on Cloud 9, we concluded that the main

areas Cloud 9 needs to improve on are expanding their menu items, increasing
promotions and advertising, and revamping the tea house inside and out. By expanding
the menu, Cloud 9 will make a more customer-friendly selection to fit their liking, so that
people will not be limited by the menu. Promotions will attract more customers by
offering exclusive deals to their foods and drinks. Because of the changing world and
new customer needs, revamping the tea house will make the establishment more
appealing and modern.
F. Proposed Activities
viii. Menu
a) New beverages and foods
An essential step towards increased success and satisfaction at Cloud 9
Teahouse is the expansion of their menu. No one wants to walk into a restaurant or any
store and not find what they want. By having a larger menu customers will be able to
choose what they want thus increasing the customer
satisfaction rate.
With Quickly as Cloud 9s main competitor,
one way Cloud 9 can keep up is by integrating hot
foods into their menu. Their competitor, Quickly, has
a wide variety of foods such as: rice plates, popcorn
chicken, fried calamari, french fries, octopus, etc.
The only hot food Cloud 9 has is french fries. From
14

the surveys we conducted, we got an idea of what kind of foods customers wanted to
see on the menu. Those foods were: popcorn chicken, hot dogs, chicken wings, chicken
fingers, and fried rice. These finger foods and hot foods would be ideal to serve, as they
are very easy to prepare and store. Most of the foods listed can just be put in the oven
or microwave. This would generate more profit and attract more business.
Cloud 9 is currently known as a strictly dessert restaurant. Since they are based
around drinks, they have a no outside drink policy, but dont have a no outside food
policy. This has led to a lot of customers going out, buying food, and bringing it inside of
Cloud 9. But, if Cloud 9 were to serve
real food that would appeal to the
customers, then the customers wouldnt
have to go out. They would just spend all
of their money at Cloud 9. Plus, Cloud 9
could now enforce a no outside food
policy, which would push customers to
just buy their food at Cloud 9.

ix. Promotions
b) Happy Hour Wednesday
The use of a happy hour can be seen throughout many restaurants and stores. A
happy hour is when a store offers a particular deal to attract more customers into
purchasing their products. Happy hour Wednesday will be a special deal occurring each
Wednesday from 3pm to 5pm, offering regular black milk tea for a dollar and fifty cents.

15

The middle of the week tends to be the slowest day for most store owners. By having
the promotion on this day, Cloud 9 will surely see an increase in sales and revenue.
Although Cloud 9 will take a loss for
the cheaper drink, both parties will benefit
because the customers will be happier and
will most likely come more often. By having a
weekly deal such as this, the word would
soon spread to other potential customers.
This would be a great method to attract new
customers by offering a cheap and delicious
drink. By having the drink cost less than the
original price. many more customers will be inclined to purchase something else off the
menu adding to Cloud 9s overall revenue. Happy Hour Wednesday will generate hype
at Cloud 9, which will cause an influx in customers
At a small cost to Cloud 9 every week with a Happy hour Wednesday, Cloud 9 will
surely see increases in revenue, customers, and popularity.
c) Free Boba Friday
With drinks being Cloud 9s main source of revenue, many customers love the
addition of having add ons in their drinks. These additions cost fifty cents and range
from boba to flavored jelly and even to aloe vera. Boba being the most popular add on
is relatively cheap to produce, and can be easily made with bulk.
Free Boba Friday is the perfect easy and simple way to receive many benefits.
Every friday of the week from 4pm to 7pm, Cloud 9 will offer free boba with all drinks.

16

With friday being one of the busier days of the week for Cloud 9, this promotion would
spread to many other potential customers. By setting themselves apart from the other
competitors, Cloud 9 will see an increase in customers, translating to greater revenue
and popularity. This gives many people an incentive to come to Cloud 9 and enjoy one
of their delicious drinks. This promotion will no doubt attract more customers
fueling Cloud 9s popularity across the bay and setting themselves apart from the
competition.
d) High School Promotions

17

Since Cloud 9 is located near Castro Valley High School, it has potential to
receive a lot of exposure from the high school students. One big way that can happen is
through sponsoring school events. The high school has a snack bar for its main sports:
football and soccer. If Cloud 9 were able to sell their drinks in the snack bar, with a
percentage of the sales going towards the high school, it would be an immediate hit.
Most high schoolers have not experienced Asian drinks, so this would open up many of
them to a whole new
experience. The high
school also has a lot of
spirit events such as:
spirit rallies,
homecoming, fairs, etc.
For many of those
events, there are booths
that sell food or high
school merchandise. If Cloud 9 were able to get their drinks to be sold during school
funded events, it would reach out to a lot of students, and would therefore increase
sales.

Another school related advertisement Cloud 9 can partake in is advertising via

Castro Valley High Schools marquee. There are actually two marquees, and they are
located in front of two of the most high traffic parking lot. Since it is a bit pricey to
advertise on the marquees, Cloud 9 will choose the one that is located in front of the
Trojan Stadium(as pictured above). Although it is the most pricey, it will reach the most
18

people. The marquee displays electronic messages that many drivers and
students/parents stuck in traffic glance at. The message displayed on the marquee
would be, Stop by Cloud 9 after school for a refreshing drink and delicious desserts!
Located next to City Bank. Adding the words after school will appeal to many parents
and students, as many students have extra time after school, or dont have anything to
do.
The last way in which Cloud 9 can advertise through the school is through the
school paper. The school paper is free to all students and is read by many. Through out
the paper, there are a few advertisements that are sprinkled around. It is relatively
cheap to put up an advertisement in the paper and would be very effective in spreading
the word.
Promotions aimed towards high schoolers would not only generate
revenue, but more importantly, increase Cloud 9s exposure tremendously.
x. Advertising
e) Social Media
Advertising is a key way to get people to become familiar and attracted to your
business. Through the countless ways of advertising, social media is the cheapest and
most cost efficient method. Social media can be used to advertise for free however
websites like Facebook and Twitter allow any businesses to advertise on their sites for a
minimal fee. Through Facebook, their ads will show up on the sidebars of the page
along with other ads. By clicking on one of these ads, it will transfer the user directly to
the Cloud 9s website. Only certain people will be able to see these ads as they are
targeted toward people in the area of the business due to location services. This will be

19

a great method for Cloud 9 as it is a small business in the community. However through
Twitter, businesses promote their tweets to all Twitter users. Cloud 9 can take
advantage of this social media
because users can see Cloud
9s tweets alongside tweets
from users that they follow.
Another method Cloud 9
can use social media as a way
of advertising would be through
giveaways and special deals.
Cloud 9 can have a special
deal by having a certain amount of likes on a post or when they hit a certain number of
followers. They can include things like The first 10 users to share and like this post will
receive a free complimentary milk tea! or have a drawing for a gift certificate to Cloud 9.
Although Cloud is already taking advantage of some of these social media outlets, they
have the potential to use them to their full extent and receive many lasting benefits from
it.
xi. Restaurant Alterations
f) Remodeling
Since Cloud 9 has been opened, they have not received many no renovations.
The usual consistent cleaning of the building is shown and a few extra light fixtures can
be notice, however nothing they lack something that grabs the customers attention.
Outside, the building, as some customers have said, reminded them of an old house.

20

With the plain white walls and minimal signs, the exterior and interior could definitely
use an update to keep up with modern times. By painting the tea house another more
urban and modern color, more people will notice the building. Ultimately, we want a
more contemporary and inner city feel to the shop to set it apart from anything in the
area.
Another renovation that should be enacted immediately is new furniture. The
main indoor seating area in Cloud 9 suffers from misappropriation of space. There are
four main tables that seat four people each. We propose that they keep two of the large
tables, and buy four small round tables that seat two each. This will allow more people
to enjoy their food and drinks inside the establishment, and encourage them to
potentially buy more items. Currently, it is common to see one or two people sitting at
one of the large tables. If there were tables that seat two people, they could just sit
there, and a larger party of three or four could sit at the larger tables.
Another addition that Cloud 9 could take advantage of to gain popularity is by
adding a more aesthetic and appealing sign onto the building. Currently the tea house is
lit with only one neon sign. By making the outside more visually eye catching and
appealing, more customers will be inclined to check out the tea house and essentially
easier to find.

G. Proposed timeline
The rebranding plan will take place within February to April 2015, and continue
to be in effect for however long it yields benefits and success. The social media
campaigns and more media coverage can begin ASAP since the cost is minimal or free
and is easily accessible. During the first two months, Cloud 9 will begin repainting the
21

interior and exterior. Since they are a family owned business, they would be willing to
paint it themselves along with a few family friends ($350). Four new small round tables
will be bought($520), along with eight new chairs($480). Also, adding a message to the
marquee and all advertising campaigns (Happy hour Wednesday, Free Bobba Friday,
etc) will begin ($700 per month). The new food items are going to be added to the menu
in April, as it takes some time to determine which foods to use and the means to get
them. After these initial promotions, Cloud 9 will purchase a big neon sign that will go on
the exterior of the restaurant ($200).

VI. Proposed Budget

Since Cloud 9 recently opened in June 2014, it is a bit hard to say what their
yearly budget is, since they have not been open for a year. But, after calculating
promotion costs and current costs, assumptions were made that helped us estimate
future costs. Cloud 9 is open 363 days a year, and is closed for christmas and New
Year. Most people that order at Cloud 9 order individually. The average transaction at
Cloud 9 is around $4, and the average number of transactions per day is around 80.

H. Costs associated with rebranding strategies

Proposed Strategy

Description

Cost per occasion

12 month
extrapolated cost

Increased Social
media activity

Updates on Twitter,
Facebook,
Instagram.
Giveaways after
milestones.

1 giveaway per 3
months.

= $24

1 giveaway = $6

22

Happy Hour
Wednesdays

Black milk tea is

$1.50. Since a lot
more teas will be
bought, will offset
$1 loss

$0.00 a week

= $0

Free Boba Fridays

Boba/Fillings
$0.00 a week
usually $.50 extra.
Since more teas will
be bought, will
offset $.50 loss

= $0

High School
Promotions

Marquee: $35 a
$280 a month
day, 2 days a week.
4 weeks.
=$30 a month
10% donations to
specified
school/organization

= $3720

Social Media
Advertising

Facebook.com
Sidebar Ads

$40/month

= $480

New furniture

4 new round tables

8 new plastic chairs

$520
$480

=$1000

Remodeling

Exterior Repainting
and Interior
Repainting done by
family:
Neon sign:

=$350

= $550

I.

= $200
Initial Investment
Cost:

= $5774

Recurring cost per

month:

= $350

Total cost for 12

months:

= $5424

Proposed Metrics to Return on Investment(ROI)

23

To measure ROI, we used various strategies that we previously used in our

rebranding plan. Those strategies included: Internet, calculations, and strategic
estimates. We prospect that Cloud 9 will earn $115,200 in yearly revenue.
With these rebranding strategies, we predict a great increase in customers as
well as revenue. With both the advertising campaigns and promotions working, Cloud 9
will see around an additional 450 customers per month and 5,400 customers per year.
This totals up to an increase of 18.75% of customers.
After totaling up the yearly returns including the rebranding plan, we project an
increase in revenue of $21,600. This will lead to a revenue of $136,800 for the first year
which is about an increase of 25%.
ROI(%)= [($21,600-$5424)/(5424]x100
With an ROI of 298%, the proposed rebranding plan can be considered very
successful. This proves the potential of the plan and reasons why Cloud 9 should invest
in it.

24

VII. Bibliography
"Cloud 9 Teahouse." Yelp-Cloud 9 Teahouse. N.p., June-July 2014. Web.
12 Jan. 2015.
"About Us." Cloud9 Tea House. N.p., June-July 2014. Web. 12 Jan. 2015.
"Castro Valley High School." Castro Valley High School. N.p., n.d. Web. 12
Jan. 2015.
"Dining & Kitchen Tables." Overstock.com. N.p., n.d. Web. 25 Feb. 2015.

25

A. Customer Survey Example

Cloud 9 Customer Survey
Please circle or write in your responses where appropriate.
1.

How many times do you go to Cloud 9 a week?

0

2.

If this is your first visit, will you return? If not, why?

3.

How did you hear about Cloud 9?

Social Media/Internet

School/Work

Family/Friends

4.

Should hot foods be added to the menu? If so, what kinds of foods?

5.

Do you use a stamp card?

6.

Do you order bobba or any jellies with your drink?

6.

How does the price of Cloud 9s items compare to other teahouses?

Great Value
7.

Good Value

Other

Yes/No
Yes/No

Average

Overpriced

How would you rate your overall experience at Cloud 9, 1-10?

Any other comments/suggestions?

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