CAFÉ FOR DOGS

AGENDAINTRODUCTION Lickuid Silver Management Team

MARKET Market Overview Competitive Landscape Humanization Trend Café aspirational example

OUR CAFE Introducing Lickuid Silver Café Operations Customer Profile Café Product Concept Revenue and Business Model Go-to-Market Strategy: Test Market & Full Scale

A place where dogs are served organic food in sterling silver feeding bowls (the best natural antibacterial agent) in the Starbucks-like unhurried, comfortable environment.

Following a rapidly accelerating humanization trend in a pet industry, we are here to merge pet food and

traditional human specialty cafe segments into one, by introducing a

disruptive pet food distribution environment that takes the Health

Code out of the equation.Martha Stuart treating her dog, Ghenghis Khan, to an afternoon tea at the Plazawww.themarthablog.com

Lickuid Silver Café For Dogs

Management Team CEO & Creative Director. Working with a top talented team to build up-and-coming, science backed, organic dog food cafe in NYC. Designing the merchandise line to incorporate the methodology of using sterling silver (the best natural antibacterial agent in the world) as the main material for animal feeding bowls.CFO & Investor Relations. Working across various finance areas such as Reporting, Financial Planning & Analysis, Customer Finance, Credit and Collections and setting up finance functions from the ground up. Point person for Investor Relations.

CMO Brand Manager & Customer Relations. Overseeing overall marketing functions, with focus on brand building and PR. Building network relationships with publishing and TV media and developing strategies on future partnerships.

SEO & SMO. Manager in charge of all SEO/SMO operations, with good understand of analytics and tech, working together with CMO to bring brand vision to life in the cyber space.

Pet food Market OverviewMarket Size and Growth (all numbers are as of Dec, 2013) Recent Trends

• Importance of the human/animal bond – strong humanization factor

• Increase in spending per dog due to premiumization

• Aging pet population (As of April 2014, 42% of dog owners have a dog age 7 or older)

Premium Pet Food Market

• Overall pet food market - $28.2B • Natural and organic pet food market -

$7.3B• Natural and organic dog food

market - $3.1BNatural and organic pet food market is expected to grow at 14.6% CAGR for the 2014-2019 period

• 83% of total distribution channels are super stores

• 17% of distribution was at ‘other retailers’, i,.e. specialized local pet shops, Whole Foods and emerging online retailers specializing in premium dog food

Distribution Channels

• As of July, 2014, 45% of pet owners feel that natural/organic brand pet products are better than standard products, up from 38% in August, 2012

• 41% of dog product purchasers agreed that they would buy organic products more often if they would be more available

Customers

1Packaged Facts, Pet Food in the US, 11th edition, September 2014

Price Increase

Traditional and

Online Retailers

Upscale and

Local Pet Food

Chains

Online Specialty

and “Made at

Home,

Delivered to

your Door” local

start ups

Pet-friendly,

NYC

premium/luxury

hotels

PetCo is starting to invest into “Made in U.S.A.”

premium dog food brands

Krieser’s the “the Whole

Foods of pets” specialty store

targets the “healthy and

organic” customer base

Growing number of start ups, local and

online (some in seed stages)

The Bowery Hotel

The SoHo Grand HotelThe Ludlow

HotelThe Plaza…

Competitive Landscape

Pet HumanizationLooking outside of the pet box

Large U.S. insurance and financial services companies are buying Pet Insurance companies

Human food companies use cute pets to stay “relevant & on trend”

LIVE @ the #VMAs @shelterpets “we are about to see a lot more of these friends”

Pets are used in fashion promotion and magazines as “humans” who live glamorously

NFL Super Bowl goes to Dogs!Puppy Supper Bowl!

BGS, graduate school honor society, offers Pet Insurance to its members as one of major benefits

Café Aspirational Example:Pet deli in Germany

Pet Deli in Germany is a type of café we are looking to open in the US starting with NYC, and then expanding into Northeast and West Coast

This is a typical cafe business model with retail sales and food delivery option, in an innovative and pet friendly environment

We serve organic food for dogs in a cafe environment

It is the ‘in-between time’

location for people who like to spend

time with their dogs outside of

homes

Our Dog Cafe

Mal

e or

Fem

ale

Graduate degree

Urban Dweller

Full time, +$80k job

Single or in relationship

Social Media savvy

Healthy lifestyle

“Earn & Spend” buying power

“Pet Parent”

Source: www.makers.com/blog/high-earning-women-millennials

young urban millennials are looking for a small, easy to care for pets for companionship, mostly dogs in NYC

The Nurturers:

Dedicated to the concept of a holistic and organic lifestyle, and mirror it their dog food purchase decisions

The Dwellers:

See the café primarily as “the third place”, where they can relax and take a breath from a fast city lifestyle, as an alternative to “Home”

Customer ProfilePremium/organic dog food segment – urban areas

Customer Profile on

Optimized Operations Model:

Café hours will be morning for breakfast and evening for dinner to allow dog owners to feed their dogs fresh organic food while taking an outside walk, thus spending more time with their “pet children “

Mid-day, Café will offer food delivery & pick up for dog walkers, who take care of the pets while owners are at work

Operations Model

Café Product ConceptAll organic dog food sold in café will be curated by animal nutritionist and veterinarians, sources from all organic brands, and customized based on customer's size & flavor preferences

Chicken

Beef

Fish

Choice #1

Choice #2

Choice #3

Type of meat Veggies mix

Rice

Choice #2

Choice #3

Carbs

All ingredients mixed and served

fresh in a silver bowl

*Choices will be developed by an expert chef and nutritionist, and approved by local veterinarian

Café Merchandize ConceptAll dog food sold in our café will be served in sterling silver bowls

“An increasing antibiotic resistance in humans and animals has renewed global interest in using silver as an antibacterial agent“ https://microbewiki.kenyon.edu/index.php/Silver_as_an_Antimicrobial_Agent

Sterling silver was found to be the most effective antibacterial metal with least toxicity to animal cells

No germs can live after being in contact with silver for over six minutes in food or water

Why Sterling Silver? Posh or Healthy Lifestyle?

We are serving HEALTH in a silver bowl!For more see www.lickuidsilver.com/science-of-silver/

Revenue ModelProducts Description

Advertising• Advertising revenue from various partnerships

Dog meals and treats

• Dog customized meals• Dog treats and energy bars• Dog crystal fresh water

Category

Beverages for dog owners

• Bottled beverages, allowed to be sold in proximity to animal food by Health Code

Point of Sale items

• Order engraved silver bowls• Other accessories• Gift cards

Food delivery• Food delivery option for interested dog owners and

dog walkers

Lickuid Silver Business ModelLickuid Silver Lickuid Silver team 10/1 1

Convenience of urban location for organic dog food

Newness of bringing pets along for a cafe experience

Customization of organic dog food i.e. selling by weight instead of by cans

Niche Market – people preferring to spend time outside of their houses with their dogs in urban areas. Pet Parents

Segment - dog owners who are looking for top of the line, fresh, organic dog food

Physical café environment where customers and their dogs can experience one-on-one customer relationship, building the brand value

Dedicated personal assistance with food selection process, and post-purchase interaction with dog-customers inside the cafe

Serving and interacting with pet owners and their dogs inside the cafe

Variety of top of the line organic dog food selections

Physical café location/building

Café Operations

Legal/Licensing

Brand Image

Coopetition - Alliance with local organic dog food manufacturers

Buyer-supplier relationships with key organic dog food suppliers & the US vendors

Partnering with NY magazines and social influencers to bring awareness to the brand/cafe

Primary product - dog meals and treatsFood deliverySecondary Product - beverages for dog ownersPoint of Sale items – silver bowls merchandize Advertising – utilizing physical location and deliveries

Fixed costs - lease/rent, café workers salaries, utilities, insuranceVariable costs – dog food sourcing, will reach economies of scale with larger ordersEconomies of scope – co-promoting merchandize with food sales

Lickuid Silver Business Model Construct

Customer relationships

Human factor in operations

brand known for healthy lifestyle

Go To Market StrategyTest marketing – pop up shop

We are building a crowdfunding campaign to raise money for pop up shop to test the market

• Pop up shop will use existing organic food options (outsourcing) in order to avoid upfront legal compliances. This will allow us to focus solely on studying the concept of dog owners bring their dogs to eat at the café

• Preliminary location for pop up shop is Williamsburg due to lower cost, proximity to the City and the appropriate target market customer

• Pop-up shops will test and refine the concept and gather feedback for full business launch. Will build full scale BASE sales forecast, refining tension points.

Go To Market Strategy (continued)Full scale dog cafe

Open Dog Café in the center of the pet life – West Village

Social MediaFacebook, Twitter, Pinterest, Instagram, Vine

Dog walkers network

Media appearance such as newspapers, magazines, TV

Partnerships with dog hotels, dog salons and veterinaries

Partnerships with luxury pet friendly human hotels

APPENDIX

Pet Food Channel2014 stats

“OTHER” will be our channel of distribution:

A. limits competitive response

B. more control over price/margins

C. more control over quality

Geographic Location For Café State, city selection

Top 3 cities for our customer to live in based on our customer profile:

• Pet food sales (pet parents)• Organic food consumption trend

(humanization trend)• Rental and leasing (urban)

New York, NY # 1 CITY DESTINATION FOR DOG CAFÉ

Geographic Location For Café (continued) Neighborhood selection

NYC, Lower West Side # 1 NEIGHBORHOOD DESTINATION

FOR DOG CAFÉ

Young and Rich Households, 2014

Unattached and Available, 2014

Median Age, 2014

Customer

segment

Pet Humanization Psychographics

Pet Food SeasonalityGoogle Trend shows little to no seasonality on “pet food”, slightly higher demand from May-September

Google Trend shows a slight decline in search from October - March on “organic” and “natural”, and slightly higher demand from April-September = Warm time trend. Otherwise seasonality does not play a large role in sales.

Detailed Competitive product analysis