ChocolatierLeung Wing Sum 11182433d

Law Yu Ling 11160643d

Tse Yee Kiu 11173426d

Guillermo Garcia-Muchacho 11904473x

Lee Wing Ting 11021093d

HTM 2121 Tourism and Hospitality Marketing

Outline1. Business concept

2. External environmental analysis

3. Competitor analysis

4. Target market

5. Marketing mix strategies and programs

6. Implementation milestone

7. Marketing budget

8. Marketing control

9. Reference

Business concept

• enter the chocolate market in HK • Be the “cash cow” in the market• increase competition power & market control. • slogan : ‘where art meets chocolate’• personalized chocolate products • special shape & favours, packed with girlish

decoration.

External environmental analysis• Demographic trends• Total residents population in Hong Kong is 7,071,576

keep increasing • Marital status

• Educational attainment

Upper secondary, nearly 35%

27.3% of the population is post-secondary

Sex Total number Married Never married

Female 3,768,561 1,847,554 1,008,811

Male 3,303,015 1,760,524 964,739

• Social –cultural trends• Hong Kong is a multi-cultural society• Including Chinese, Indonesian, Filipino, Western,

Indian, Japanese, Thai, etc.• Residents usually affected by the Western culture

• Economic trendsOne of two Special Administrative Regions (SARs)

of the People’s Republic of ChinaOne of the world’s leading international financial

centresUnique economy system

free market system

(ranked the freest in the world by the Index of Economic Freedom for 18 consecutive years)One of the “Four Asian Tigers”

• Ecological trends

1. cocoa beans affected enormously by the weather conditions

• shortage of cocoa beans in the Ivory Coast more severe in Indonesia, Cote d'Ivoire and Ecuador

2. unsustainable farming practices

reduces the availability of cocoa• methods used in the Ghana 

Hence, the availability of cocoa beans will go down

increase the operating cost of the organization.

companies raise the product price

•Technological trends

7 machines are necessary during the chocolate production process.

1. Chocolate Forming Machine

2. Chocolate Conche and Refiner

3. Chocolate Thermal storage Cylinder

4. Chocolate Packaging Machine

5. Chocolate coated machine , etc.

• ensure the stability of the high quality of homemade chocolate • alleviate the labor cost for producing homemade products.

Competitor analysis

• Based on the location of the store

1. Godiva

2. Leonidas

3. City’ super (one of the products they sell is Ferrero Rocher)

Godiva Leonidas City’ super(Ferrero Rocher )

Products Chocolate, gummy candy, and biscuits

Chocolates, Ice cream

Ferrero Rocher

Price 100 HK$ to 250 HK$ per 100 gram

80 HK$ to 120 HK$ per 100 gram

25 HK$ for 3 piecesOther price per box

Promotion Mall Billboards, etc Special offers, etc news paper ads, etc

Place Online Store, 15 Stores in HK

Online Store, 4 stores in HK

4 Stores in HK

Strengths:

Eye catching design

Many distribution channels

Weaknesses:

diversify their product

unsuccessful on numerous occasions.

Opportunities:

expand higher-end collections

Threats:dependant on the

economy

Godiva

Strengths:

Large variety of products

Good customer relation

decorated depending on the season’s theme

Weaknesses:

don’t stay fresh for long

keep the stock full

not sold within 2 weeks thrown away.

Opportunities:

Growth in chocolates consumption per capita

different occasions

Renovated stores

Threats:

Fierce Competition

Price differentiation depending on mall

Leonidas

Strengths:

Product Range

Store Size

Weaknesses:

not located in a very visible location

not well exhibited inside the store

Opportunities:

promote more around the mall

Threats:

Handmade luxury chocolates take over the

whole market

City’s Super

Target market

• Segmentation• Females who aged from 18 to 40 • middle-class• enjoy chocolates • buy chocolates for their lovers• potential and strong market

• Position• Target market potential purchasing power• Harbour City (middle-class shopping mall, popular to ladies)

‘Choco Lady’

• A girlish and feminine chocolatier• service of making tailor-made chocolates• attract female customers • create memorable and special memories

Marketing mix strategies and programs

• Services and Products• Price• Place• Promotion

4P

Products and Services

Products

Chocolate• handmade chocolates • cacaos from South America

Shape• butterfly-shaped• heart-shaped,• flower-shaped

Products

Package• Cute and fancy: pink and red • Cute ribbons, lace ad flowers• For young girls and students

• Elegant :Dark red and purple• Ribbons and roses• For elegant and mature ladies

Products

Taste• Special and unique tastes

e.g. rose, lavender, peach

• Chocolate dessert • Other chocolates desserts

e.g. chocolate cakes, chocolate mousses, chocolate cupcakes, chocolate hotpot, chocolate ice-cream

Products

• Chocolate baskets and gifts

• Chocolate drinks• Handmade chocolate drinks

e.g. iced chocolate, mocha, chocolate milk shake

Services

• Chocolate Relaxation• Chocolate massage and facial• New in Hong Kong market• Minerals in chocolates are good for bodies

e.g. improves the skin texture, anti-aging

Suitable for female to enjoy

Pricing• The price of the product contains certain degree of the

raw materials cost and the operation cost, including employees salary, package cost, rent, utilities, etc.

Products Desserts Drink Hotpot Basket Package Chocolate Message

Price $20-45 $30-40 $98 per person

$300-450 $35-280 $9-35 $350 per person

Place

Harbour City• On of the largest shopping mall in Hong Kong• Located in Tsim Sha Tsui • Attract almost 300,000 high-spending consumers

to visit

due to convenient access and recognizable

brand name

Promotion

• Playing the video of manufacture process• Invite the customers • Monthly themes • Large event

in winter --- hotpot

in summer--- chocolate ice-cream

On Valentine’s Day--- making chocolate workshop

MilestonesProgram Period Description Budget Person in charge

“Choco Valentine’s”

7-14 Feb 2012

Couples could enjoy the chocolate massage together with a special discount

$ 500 per pair

Staff who are responsible for doing massage

“Chocolate Egg Hunt”

1-9 April 2012

Launch of the limited edition of chocolate eggs and rabbit-shaped chocolate

$ 10,000

Sales Manager

“Choco Cool”

SummerMay to Aug

Sells low-fat and low-sugar chocolate ice-cream and cool drinks for customers

$ 20,000

Sales Manager

“Choco Warmth”

WinterNov to Jan

Launch of chocolate hotpot for customers

$ 50,000

Sales Manager

“Choco Santa”

Christmas1-26 December

Launch of limited series of Christmas chocolate in different shapes, like Santa Clause, Christmas Tree, Deer

$ 10,000

Sales Manager

Item Expected expense DetailsRent $ 200,000 per

month

Wages $ 9,800 per general staff$ 10,000 for sales manager

Staff:2 for waiters 2 for chocolate factory2 for beauty treatment1 Sales manager

Raw Material (Included transportation cost)

$ 200,000 Coca beans from South America

Budget

Tools and Equipment

$ 500,000 All tools and equipments used for making chocolates

Furniture $ 100,000Promotions $ 300,000 Includes all

advertisement cost

Program $ 200,000/program Includes all the expenses of each program, depends on its length and scale

Decoration and Package

$ 100,000 Includes all the decorations and packages for the chocolates

Marketing control

• Marketing control =a process for organization to monitor the proposed marketing plans and adjusting when the actual performance against the expectations

Strategic control

Annual plan control

Profitability control

Efficiency control

• Efficiency control concentrates on evaluating whether marketing activities can accomplish the marketing goals will be used

And three techniqueswill be used

ongoing research

keeping tabs on promotion

ongoing testing

Reference

• Allen, L. (2012). Chocolate Fortunes: The battle for the hearts, minds and wallets of China’s consumers. The World Financial Review. Retrieved March 5, 2012, from

http://www.worldfinancialreview.com/?p=548• Allen, L. (2010, September 30). Fighting For China's Chocolate Palate. Forbes. Retrieved March 5, 2012,

from

http://www.forbes.com/2010/09/30/china-chocolate-market-nestle-ferrero-rocher-mars-hershey-markets-economy-book-excerpt.html• Bromma, H. (2007). How to Invest in Offshore Real Estate and Pay Little Or No Taxes. McGraw-Hill

Professional: United States of America.• Census and Statistics Department. ( 2012). 2011 Population Census. Retrieved February 8, 2012, from

http://www.census2011.gov.hk/tc/census-result.html• City’super. (2012). Corporate Profile. Retrieved March 2, 2012, from

http://www.citysuper.com.hk/corp_profile.php• eHow Money. (2012). Five Major Marketing Control Techniques. Retrieved March 15, 2012, from

http://www.ehow.com/list_5999389_five-major-marketing-control-techniques.html• Godiva Chocolatier Inc. (2010). Godiva Family. Retrieved March 5, 2012, from

http://www.godiva.com.hk/family• Harbour City. (2012). About Harbour City. Retrieved February 20, 2012, from

http://www.harbourcity.com.hk/home• IBS Center for Management Research. (2010). Management Control Systems (2nd Edn). ICMR: India.  • Ingredients Network. (2012, January 11). Cocoa prices rise on supply shortage fears. Retrieved February

12, 2012, from http://www.ingredientsnetwork.com/news-content/full/cocoa-prices-rise-on-supply-shortage-fears

 • International cocoa organization. (2010). Impact of El Niño / La Niña weather events on the world cocoa economy. Retrieved

February 18, 2012, from http://www.icco.org/Attachment.aspx?Id=ok570647 • Jean-Paul Hevin. (2012). Profile- Presentation. Retrieved March 4, 2012, from

http://www.jphevin.com.hk/profile.html • Juneja, R. (2008). The Chocolate Massage-One of natural’s best kept secrets for beauty and anti-aging. Knol. Retrieved

February 23, 2012, from http://knol.google.com/k/the-chocolate-massage# • Leonidas. (2007). Leonidas Today-A century of freshness, generosity and tradition. Retrieved March 4, 2012, from

http://www.leonidas.com/pralines?id=137 • Marketing Teacher. (2012). Marketing Controls-Measuring and monitoring the marketing planning process. Retrieved March

10, 2012, from

http://www.marketingteacher.com/lesson-store/lesson-control.html • Moskvitch, K. (2011, July 5). Printer produces personalized 3D chocolate. BBC. Retrieved February 18, 2012, from

http://www.bbc.co.uk/news/technology-14030720 • Ntiamoah, A & Afrane, G. (2008). Environmental impacts of cocoa production and processing in Ghana: life cycle assessment

approach. Journal of Cleaner Production. 16, 1735-1740. • Organic Consumers Association. (2009, September 8). Another Reason to Buy Organic Fair Trade Chocolate. Retrieved

February 16, 2012, from http://www.organicconsumers.org/articles/article_19089.cfm • Organic-nature-news.com. (2011). Organic Chocolate. Retrieved February 21, 2012, from

http://www.organic-nature-news.com/organic-chocolate.html • Sing Tao Daily. (2011, January 12). 全球最自由經濟體港18連冠 . Retrieved February 26, 2012, from

http://hk.news.yahoo.com/%E5%85%A8%E7%90%83%E6%9C%80%E8%87%AA%E7%94%B1%E7%B6%93%E6%BF%9F%E9%AB%94%E6%B8%AF18%E9%80%A3%E5%86%A0-032000199.html

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2012, from http://www.gusujx.com/news_1.asp?id=30 • Wood, A. (2010, March 7). Cocoa cost bites as chocolate prices rise. Sydney Morning Herald. Retrieved February 16, 2012,

from

http://www.smh.com.au/national/cocoa-cost-bites-as-chocolate-prices-rise-20100306-ppnd.html  • World Cocoa Production. (2011). ICE Market Overview. Retrieved February 10, 2012, from

https://www.theice.com/publicdocs/ICE_Cocoa_Brochure.pdfReference