htm2121 mkt pj group c (sem006) final
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Yammy Lau Anthony TamAlan SinSandy WongTRANSCRIPT
HTM 2121 TOURISM AND HOSPITALITY MARKETING
An F&B outlet in TST East
Lau Yan Yu Yammy 11328194D
Sin Kai Ho Alan11207071D
Tam Ho Leung Anthony11027756D
Wong Yuk Fung Sandy 11195185D
1)Executive summary2)External environmental analysis3)Opportunities and threats4)Objectives5)Target market6)Marketing mix strategies and programs7)Implementation milestone8)Marketing budget9)Marketing controls
Our flow
Executive summaryTo outline the strategies and programs used in the opening of café in TST East
To analysis External environmental
To analysis our main competitor CAFFE HABITU
To analysis the promotion channels
To calculate the cost and forecast sales
Estimate to have the payback period within 11months
Cafaholic • Café located in Tsim Sha Tsui East
• theme display local brand product e.g self- designed assesories, clothing
External Environmental Analysis
Demographic trends(TST East)• Size of population 320,600
• Median age 40.8 More than 70% ranges within 15-64
• Gender Female 53.4% > 46.6% Male (2010)
• Changes of population size raised by 12.5% by 2019 (highest population growth rate) take up 4% of population in HK
Economic TrendsSteady growth of Hong Kong local Economy
Source from HK Tourism Board statistics review 2010
*GDP of HK keeps increasing in the following years
Economic Trends (cont’d)
High purchasing power of target customers
• As indicated by income level
median monthly domestic household income of Hong Kong (2010) : $18000
• As indicated by usage of credit card
Supply Active service providers : Standard Chartered, HSBC
Demand majority of Hong Kong people own credit cards use their credit card more than once / month
Political Trendslicenses and regulations to operate café (required by law)• BasicOffice-insurance-PlanBusiness Registration Certificate
• Maintaining the business under a legal condition
General Restaurant License
• Selling of general food items Frozen Confection Factory License
• Selling of frozen items such as Ice-cream Liquor Licensing
Political Trends (con’t)
Selling of alcoholic beverages• Hazard analysis and critical control
points(HACCP)
To ensure food production procedure is followed in established standard
Fire Safety Ordinance• Necessary for emergency uses • takes 8 to 10 weeks to proceed
SWOT AnalysisStrength• Unique theme
• the atmosphere Created by displaying lovely, cool and creative local brands
Teenagers can be easily attracted
SWOT Analysis(con’t)
Weakness• Financial issue
• A new and immature shop difficult to invite considerable numbers of
investors within a short period
May have insufficient money to have further investment
SWOT Analysis(con’t)Opportunities• lower price by comparing to other
café shop in TsimShaTsui East
e.G , CaffeHabituthe average cost per dish of Caffe Habitu is$111
attract more teens
• High purchasing power Of target customers
SWOT Analysis(con’t)
Threats
Relatively large number of competitors• more than 10 café shops in Tsim
Sha Tsui East
e.G Caffe Habituenjoying a first-mover advantage in the local cyber-cafe market.
ObjectivesMission
• To operate a theme and ambience café
• To make it as a small museumdisplaying local brand and self-designed fashion products
• To promote our local brand as well as local culture
(TST East)
• To promote creative industry in Hong Kong by increasing exposure of the local brand product.
Objectives (con’t)Marketing Objective
First year operation objectives
• Create brand recognition for TST residents Maintain a group of loyal customers
• An annual growth of sales for 10%
• An annual growth of customers for 20%
Target marketMarket Segmentation: • To differentiate the potential customers
• To figure out the most profitable and feasible market segment
rivet the resource on it.
Demographic (Age)Age Highest
preference Lowest preference
15 fatty and sugary food
dairy food and vegetable
16-24 snack-related foods
25-34 snack-related foods and meal-related
Reference: (Wansink B., Cheney M. M. & Chan N., 2003) (Census and Statistics Department, 2011)
Target market(con’t)Market Targeting:
• Concentrated marketing
Target the segment range from customers aged 16-30
• Combination of the age groups 15-24 and 25-34 (share very similar preferences on food)
Market PositioningSpecific marketing mix programs• Product,• Price,• Place ,• Promotion
create the desired perception of the product.
provides customers with a prescribed image of the product
Market Positioning-Product
Food and Beverage• Cheese Cake• Lemon Cake• Baked Soufflé (Chocolate, Lemon,
Rose) • Caesar Salad• Wild Mushroom Soup• Spring Chicken• Smoked Salmon• Four Cheeses pizza• Marguerite pizza
• Coffee • Tea
Market Positioning-Product (cont’d)• Services /Themesmall exhibition provide a venue for displaying some local brands for free
• Designers(1)designers from Hong Kong Polytechnic University School of Design ClothingAccessories
(2) Maya from AVENUES CompanyShoesHandbags Accessories
• Ambience atmosphere
Market Positioning-Price
• Competition-based pricing as the pricing strategy
• Consideration of pricing method of the competitors
make sure the price competitiveness of the café towards its competitors
set up the maximum price of similar items
2P Pricing Strategy
Market Positioning-Place• Direct distribution
No middlemen should be involved
add a high profit margin high CostHigher price reduces the price competitiveness
Market Positioning-Promotion Promotion tools • Magazine
• Coupon
• Radio
• Homepage
• Showroom
• Discount
BudgetingSales forecasts
With the direct observation of our major competitors forecast
Consumer per day 60
Average consumption $ 82.25
Upon calculation, Cafaholic can balance the revenue and expenditure within a year
(estimated to be 10.9 months)
Marketing Controls• Maintain the accomplishment of objective differentiate Cafaholic from other café in TST East
• Ongoing controls Maintain the effectiveness of promotion tools
• Adjustment on our strategy on promotion changing our channel on advertisement quit from the channel
In case promotion get out of track
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