A New Food and Beverage Operation on PolyU Campus

Chu Chun Kit, 11092939D

Lam Yan Ki, 11017133D

Lau Ho Hin, 11050385D

Pang Wing Wa, 11196856D

Tang Ming Yan, 11202542D

SEM003 Group A

Agenda

External Environment

Opportunities and Threats

Marketing Objectives

Target Market Analysis

Positioning and Differentiating

Marketing Strategies and Programs

Implementation Milestones

Budget

Control

Macroenvironment

Demographic

target customers are students and staffs on PolyU

Simple food that is creatively presented is the key for university students (Kotler,2010)

students; 29193

staffs; 3505

Economic environment economic situation unstable and uncertain after the incident

of USA

Hong Kong Fact sheet

more concern and spend less

2010 20110.00%

2.00%

4.00%

6.00%

8.00%

10.00%

Consumer Price Index

Political environment

fund supports to small and medium enterprises (SMEs)

Consultation Centre

New Academic Structure 334 market is larger

minimum wage of $28 per hour production cost

Social –cultural environment

inference of Japanese culture

“Slim” culture

Japanese food is nutritious but low calories and fat in content

technology

New packaging technology

Connecting to potential customers through internet

Natural environment

increasing concern about the environment protection

price in natural resources

Opportunities

Students enjoy fast food and love Japanese food

double in size in the new Year 1 students in 2012

(New Academic

Structure 334)

Opportunities

global economic down turn

we provide sushi at low price

some supports to SMEs such as financial fund and consultation services

increasing popularity of Japanese culture

Threats

prefer good environment and high quality food

friend-gathering” experience and like to relax

Threats

minimum wage leads to increase in production cost

plastic for packing might accused of damaging environment

Competitors

Competitors

Inside HKPU

Outside HKPU

Competitors

Competitors

Inside HKPU

Outside HKPU

Competitors – inside HKPU

Total 10 canteens, restaurants and café

LibCafe HABITU CAFÉ

Competitors – inside HKPU

Strength

Price

Food HygieneProximity to HKPU

Competitors – inside HKPU

Pricelunch sets : $ 25-30 crucial ∵ students have low purchasing power

Proximity to HKPUattract students and staffs with short meal break

Food Hygieneundergone Food Premise and Inspection and Food Sample Tests safe and clean to eat

Strength

Competitors – inside HKPU

Weaknesses

Over- crowded

Few food varieties

Competitors – inside HKPU

Over-crowdedfrom 12:00 to14:00 unfavourable to the students with short lunch time

Few food varieties 78.8% of students + 75% of staffs

survey by the Catering Committee, HKPU

Weaknesses

existing varieties of food,

including all canteens and

restaurants, are not adequate

Competitors

Competitors

Inside HKPU

Outside HKPU

Competitors – outside HKPU

Competitors – outside HKPU

Strength

High quality Japanese Food

Environment

Good services

Competitors – outside HKPU

High quality Japanese food- sushi, ramen, tempura, shabushabu, and other fried foods creating lasting relationship- cook when order fresh

Environmenthigh-class, comfortable and clean professional

Strength

Competitors – outside HKPU

Services- self serive: sushi on conveyor belt (co-production) obtain freely

- non-self-service: order fresh

Strength

Competitors – outside HKPU

Weaknesses

Over- crowded

Expensive

Competitors – outside HKPU

Over-crowded- high rental cost small area- customers from office and HKPU, tourists

Expensive- sushi: >$9/portion- meal sets: >$40- $10-$15 higher than meals in HKPU

Weaknesses

Marketing Objectives1. > $2,800,000 in sales by the end of year 1.

2. market share of 50% in POLYU

3. 80% customer awareness of our brand in our target markets

4. return on investment >15%

5. operating profit of over $1 million on sales

Target Market

Market Segmentation

Generation Segmentation

Generation Y

Behavioral Segmentation

Propensity to have meals in the school campus

Market Targeting

→Generation Y with willingness to have meals in Poly U campus

However, they have limited meal-time.

Market Positioning and Differentiation

Positioning

“For students and staffs of HKPU who want to have

more restaurants in school, our products are sushi and

Japanese appetizers that are inexpensive but high

quality, and serve with efficiency in the school. “

Differentiation- inexpensive- fast- popular - high quality

Products

Prepackaged sushi

Co-production- Customer put their favorite food items in boxes provided- Pass to our employees for the packing process

All take away, no dine-in service

High quality caterer- Not to sell overnight products- All sushi is made at retail site

Strive to provide upscale food in a modest price

Price

Follow cost-plus pricing∴ simple and guaranteed margin revenue

No fixed cost because being a caterer in campus does not require rentUnit cost = Total cost / Expected unit sales

= $1,708,158 / 943,000 = $1.8

Aim to earn a 40% mark up on salesMark up price = Unit cost / (1-desired return on sales) = $1.8/0.6 = $3

Place

Set up a retail site on campus

Sell at Che-woo Lui Hotel and Tourism Resource Centre of SHTM

Reservation by phone

Promotion

Advertising activities

Display posters & core picture

Distribute leaflets

Interview at school magazine

Direct email

Sales promotion

Food sampling

10% off when purchase 10 or more sushi

$2 per each 1 hour before the closing time

MilestonesMilestones Start Date End Date Budget / $ Who is

responsible?How to evaluate?

Advertising posters Early September

Early September

34 Employee Reflected by sales volume

Early January Mid-January 34

Sending Emails Mid August Late September Nil Marketing Manager

Distributing leaflets Early September

Early September

4,000 Employee

Early January Early January 4,000

Posting core picture Early September

Early September

300 Employee

Discount periods Early September

Late October 20,000 Sales Manager

Early January Late February 20,000

Advertising in PolyU Life Early September

Early September

Nil Marketing Manager

Giveaways Early September

Mid-September 10,000 Employees Reflected by number of approaches

Budget

  2012-2013      $

Sales   2,829,000

Cost of production   (1,131,600)

Gross Profit   1,697,400

Marketing and Promotion

  (58,368)

Operation costs   (518,190)

Net Profit    1,120,842

Controls

1. Opinion forms

2. Mysterious shopper system

3. Promotional Campaigns

4. Regular talks and evaluation meetings

THE END