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December 5, 2001 <br /> <br />Mr. Dave Potvin <br /> <br />Northbound Liquor <br />19348 Evans Street <br />Elk River, MN 55330 <br /> <br />DAKOTA <br /> <br />Dear Dave: <br /> <br />I received your letter yesterday, and I appreciate your request for a formal proposal to perform <br />market analysis for a second location in Elk River. We are willing and able to provide you with <br />the best liquor store analysis available, and with our expertise in supermarkets we can certainly <br />access the possible effects of the local supermarket competition adding wine to their merchandise <br />offerings. I have also included a list of references for your use. <br /> <br />Scope of Project .'~ <br /> <br />The site under consideration is for a second Elk River Municipal Liquor store to be <br />located on West Highway 10 at Joplin. The feasibility study process will include ongoing <br />client contact to discuss the study objectives, 'existing store sales trends, and seasonal <br />patterns. A customer spotting should also be conducted to determine the location of the <br />existing stores customers in advance of our field work and this is included in the bid for <br />this project. <br /> <br />Once the details of the project are set, the Dakota Worldwide specialist will begin field <br />analysis including evaluation of the site and its primary trade area. Competitors will be <br />identified and evaluated based upon facility size, sales volume, operations and <br />departments. Local government officials will be queried; building permits and subdivision <br />activity reports will be reviewed to determine potential market changes and population <br />variances from the 2000 Census, and any possible road changes that may affect traffic <br />patterns at or near the site. <br /> <br />When the field work is complete, the Dakota specialist will build an LOCUSTM model to <br />represent the current marketplace. The "balanced" model will then be "screened" by a <br />team of other analysts to ensure total accuracy. The proposed site will be projected at the <br />size you suggested of 10,000 square feet, but tests can be made for the most optimum <br />size. <br /> <br />Sales projections are based upon the core customer, population changes, existing <br />demographics, competitive strengths, transients as additional sales, and any possible <br />market changes. These changes will include the legislation that would allow grocery <br />operators to add wine to their stores, in particular Cub and Coborn's in Elk River as well <br />as any other competitors located throughout the trade area. Any feasible alternate <br />locations can also be included in the projections. The resulting sales projections are also <br />screened by our internal staff. <br /> <br /> 4801 81st Street, Suite 105 · Minneapolis, MN 55437 <br /> <br /> Telephone 952.835.4505 ' Fax 952.835.4461 <br />Internet: www. dakotaww, com E-mail: dakotaww~dakocaww, com <br /> <br /> <br />