7.0 Location

Skyworld is going to be located in one of the most patronised business areas in the city. It will be located civil centre road of Birninyero metropolis.The reason for choosing this location is because of strategic nature. It is an area with a lot of business units. It has one of the most patronised restaurants and hotels. It has alot of offices and banks in which bankers and other officials could come and hand around during their break or leisure time. Here they could come to get away from some of their personal troubles. This site was chosen for various reasons, including:

• Proximity to the downtown business community.

• Proximity to trendy, upscale restaurants such as West Brothers.

• Proximity to LTD's Birninyero Station. Parking availability.

• Low cost rent - N.85 per square foot for 1700 square feet.

• High visibility.

All of these qualities are consistent with Skyworld's goal of providing a central hub of communication and socialization for the Birninyero community.

7.1 Process to identify the location

The location is easy to identify because of its business units occupied nature. It is also not far from the city’s Government house. It is the main road that links the Airport to the government house. This is a location you cannot miss.

2. Traffic pattern in that location

The traffic in the area is relatively high because of the business units, banks and office; and because of its location on the way to the airport but because of the highly functional traffic lights.

2. Competition in that location

The competition there is also high, especially when it comes to getting the required location. There are some internet cafes that have already being established in the location. Although the differences in quality, products and services might give us better advantages over the other cafes.

8.0 Marketing Strategy

Skyworld will position itself as an upscale coffee house and Internet service provider. It will serve high-quality coffee and espresso specialty drinks at a competitive price. Due to the number of cafes in Birninyero, it is important that Skyworld sets fair prices for its coffee. Skyworld will use advertising as its main source of promotion. Ads placed in The Register Guard, Birninyero Weekly, and the Emerald will help build customer awareness. Accompanying the ad will be a coupon for a free hour of Internet travel. Furthermore, Skyworld will give away three free hours of Internet use to beginners who sign up for an introduction to the Internet workshop provided by Skyworld.

8.1 Pricing Strategy

Skyworld bases its prices for coffee and specialty drinks on the "retail profit analysis" provided by our supplier, Allann Brothers Coffee Co., Inc. Allann Brothers has been in the coffee business for 22 years and has developed a solid pricing strategy.

Determining a fair market, hourly price, for online use is more difficult because there is no direct competition from another cyber-cafe in Birninyero. Therefore, Skyworld considered three sources to determine the hourly charge rate. First, we considered the cost to use other Internet servers, whether it is a local networking firm or a provider such as America Online. Internet access providers use different pricing schemes. Some charge a monthly fee, while others charge an hourly fee. In addition, some providers use a strategy with a combination of both pricing schemes. Thus, it can quickly become a high monthly cost for the individual. Second, Skyworld looked at how cyber-cafes in other markets such as Portland and Ashland went about pricing Internet access. Third, Skyworld used the market survey conducted in the Fall of 1996. Evaluating these three factors resulted in Skyworld's hourly price of five dollars.