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

• Facebook

• 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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