SEM009_GroupE_Bakery 4

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BAKERY SHOP

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The Hong Kong Polytechnic University Higher Diploma in Hotel Management HTM 2121 Tourism and Hospitality Marketing SEM 009 Group E Bakery

Transcript of SEM009_GroupE_Bakery 4

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BAKERY SHOP

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External Environment

Analysis

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External Environment Analysis

• Demographic• Economic

• Political-legal• Social-Cultural• Ecological

• Technological

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Demographic

Size of Selected Market• target = Secondary School Students• 449737 secondary students in HK (Education Bureau)

Income of Customer• Monthly income of secondary students = $1120 on

average (Visa Research, 2010)

• 90% of secondary students’ income = pocket money from their families

• 66% students get > $200 per month (Federation of New Territories Youth, 2009)

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Income of Target Customer• Kowloon City districtsecond highest density of millionaire with 16.2%married millionaires spend $14200 on average

per month for taking care their children (Number of millionaire in Hong Kong, Citybank)

We expect students in this area have high purchasing power as their parents are willing to spend money on them

Demographic

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•

Demographic

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Political-legal

1. SME Funding Schemes encourage small and medium enterprises (SMEs) in 2008 4 types of fundings in SMEsSpecial Loan Guarantee SchemeSME Guarantee Loan SchemeSME Development Fund SME Export Marketing Fund

2. Environmental Guide for Smart Business Environmental Guide for Smart Business in 2011 Apply onto daily business operation Tax Deduction on Environmental Facilities if follow the Environmental Guide

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Political-legal

•

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Competitor Analysis

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Competitor Analysis

• 5 current competitors : Maxim’s Cake ShopOrchid Padara BakeryArome BakeryYamazaki Baking Taste’s Bakery

• Major one : Maxim’s & Orchid Padaria

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Maxim’s Cake Shop

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(1) Maxim’s Cake Shop

• chain store ( Over 160 chain outlets)• served over 570,000 customers every day• Products : premade bread ( EG Whole Wheat Walnut

Bread, cakes and tartlets ) • Place : Maxim’s Cake shop in Kowloon Tong MTR

station• Price : $5 - $15• Promotion : Kelly Chan (spokesperson >6 years)• In 2012, Maxim’s use “Angry Bird” as theme to

design cakes

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Competitive Advantages and Sustainability of Maxim’s Cake Shop

• Maxim’s = one of the most popular brand in the hearts of

mainlanders (HKTDC Report, 2009) one of the best Hong Kong Brand (Ming Po Hong Kong

Brand, 2011) obtained “The Best Service Award” in The 8th

International Exhibition of Food & Drink, Restaurant & Foodservice Equipment, and Supplies& Services

The history of Maxim’s has implanted in Hong Kongers will be sustain in the near future

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Orchid Padaria

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(2) Orchid Padaria

• 13 branch in HK• Products : Chinese style buns • Price : $4 - $15• Place : Near the Kowloon Tong MTR station • Promotion : website & leaflets

lower portion in the market share than Maxim’s cake shop

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Competitive Advantages and Sustainability of Orchid Padaria

• Orchid Padaria = Good location attract ↑ customers ( ∵ MTR station = high turnover rate of customers )Lower price than Maxim’s attract low-

income group customersTraditional buns = the flavour is suitable for

Hong Kong people

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OASIS – The greenest bakery

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Mission

Small-scale bakery in green styleselling breakfast and lunchbeing environmentally friendlyNOT just focusing on profit-gaining, but

also fulfilling social responsibility

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OASIS’ Objective

Breakeven within 1 year as a newcomer in bakery market

3% to 5% profits & have branches stores <5 years

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Target Market

Secondary school students in Kowloon Tong aged from 13 to 19

locate near the MTR StationOur bakery location provides a convenience for them

with low price, delicious and healthy bread

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OASIS’ Marketing Mix Strategies

•4PsProductsPricePlacePromotion

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Product

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Product - Bread

Medium-priced breads with high nutrient value and green ingredients

free of preservatives and colouring Providing our target customers fresh and healthy products, breads prepared every day

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Breads

Basic Vitamin International

Pineapple Bun Raspberry with Nuts Bread

Pandan Bread

Sausage Bun Cranberry with Glucose Bread

Japanese Fried Noodle Bread

Soft Dinner Roll Blueberry with Ficus Bread

Croissant

Slided Bread

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Basic Line

Pineapple Bun $7.99 Sausage Bun $7.99

Soft Dinner Roll $7.99

Croissant $9.99

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Basic Line

Sliced Bread $11.99 (4 slice per pack)

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Vitamin Line

Raspberry with Nuts Bread $14.99

Blueberry with Ficus Bread$14.99

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Vitamin Line

Cranberry with Glucose Bread$14.99

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International Line

Pandan Bread $17.99

Japanese Fried Noodle$17.99

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Bread Designing Reasons

3 reasons: (1) lifestyle trend(2) income(3) customers spending pattern

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Bread Designing Reasons – (1) lifestyle trend

• Healthy lifestyle = hot topic in Hong Kong

• 30,000 Secondary students = unhealthy style

• 30% of our target customers have high blood pressure • 40% of students have been on diet for keep fit purpose( Hong Kong Resource Centre )

Our bakery offers natural bread to Secondary students to select and proper way in dieting

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Bread Designing Reasons – (2) income + (3) customers spending pattern

• Secondary school students have average $1120 pocket money per month (research by Visa 2010)

• Students save 32% of it• After calculation $760 for daily spending We offer medium-priced bread to our customer

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Price

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Price – Basic Line Product Name Description Price

Pineapple Bun

Hong Kong Style with healthy pineapple sauce; Oliver oil and canola oil

$ 7.99

Sausage Bun Hong Kong Style; Japanese sausage

$ 7.99

Soft Dinner Roll

Hong Kong Style; Oliver oil and canola oil

$ 7.99

Croissan

Western Style; Oliver oil and canola oil

$ 9.99

Slided Bread

Grain

$ 11.99 (4 slices per

pack)

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Price - Vitamin Line

Product Name Description PriceRaspberry with Nuts Bread

Vitamin E and F, antioxidant, strengthen immune system

$ 14.99

Cranberry with Glucose Bread

Antioxidant (Proanthocyanidins), strengthen memory, stimulate calcium absorption

$ 14.99

Blueberry with Ficus Bread

Vitamin A, C and D, enhance digestion, prevent constipation

$ 14.99

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Price - International Line

Product Name Description Price

Pandan Bread Malaysian Style with Pandan leaf $ 17.99

Japanese Fried Noodle

Japan Style with Japanese Fried Noodle in French Bun

$ 19.99

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Price – Cost ReferenceSoft Dinner Rolls from X bakery (50g for 80 portions)

Cost Calculation50g Soft Dinner Roll (Normal Size): $ 56.42 / 84 = $1 150 g Soft Dinner Roll (Lunch Set Size): $ 56.42 / 84 x 3 = $3

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Place

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Address: KOT 207, Kowloon Tong MTR Station, Kowloon Tong, Kowloon and Hong Kong

Place

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Place

Reasons:> 10 schools around Kowloon Tong MTR Stationmost of schools are band one and well known ensure they have a high understanding of the importance of healthy life

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Place

Reasons:Kowloon Tong is middle- income residential and

high- income residential areastudents can afford the medium-priced products many transportation networks provide a high flow of potential customers

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Promotion

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Promotion

Point card– fashionable & follow the pop trend – learn the promotion method of Taiwanese drinks shops– A note card will be given to customer when they buy

our products at the first time– our shop will give a chop on their cards once

transaction– When they have collected the required number of

chops they can have a discount on bread or a free assigned gift

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Promotion

•

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Promotion

•

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Promotion

Networks and Social Media= low cost methods –Facebook homepage promote our store & products (∵ Facebook = a good platform to attract focus , collect comments & communicate with our customers)–Webpage introduce & advertise our products , provide coupons–Short video promote products on Youtube

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Implementation Milestones

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Implementation Milestones Start Date End Date Budget Who is

responsible?How to evaluate?

Advertising

1/1/2013 31/12/2013

$5270 Junior shop assistant

Number of advertising coupons collected in a month

Point Card System

1/1/2013 31/12/2013

$1840 Cashier Number of point card collected in a month;How many standard size breads sold for free

Facebook Fan Page

1/12/2012 31/2/2013 $0 Assistant manager

Number of customers use check in for discount;Number of ‘likes’

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Marketing Budget

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Marketing expense forecast

Month Jan Feb Mar Apr May Jun

Flyer 510 510 510 340 340 340

Giveaway 0 200 200 200 200 80

Coupons ($2 discount)

300 300 300 200 200 200

% in sales 2.025 2.244 2.02 1.644 0.987 0.827

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Marketing expense forecast

Month Jul Aug Sep Oct Nov Dec

Flyer 340 340 510 510 510 510

Giveaway 80 80 200 200 200 200

Coupons ($2 discount)

200 200 200 300 300 300

% in sales 1.378 1.378 1.011 1 0.962 1.339

Total Flyer Giveaway Coupons ($2 discount)

% in sales

5270 1840 3400 1.327

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Flyers

• Flyers(A4 size): $0.34/unit• Expected printed unit:

1500 per month (Jan – March, Sep – Dec)1000 per month (Apr – Aug) ∵ ↑ flyers distributed during academic period

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Giveaway with Point Card System• Assume every month we have about 20 – 25

customers will have this discount. • In summer vocation there will be about 10

customers using this benefit

• Assume there are about 20% of coupons handlers using the $2 coupon.

• Sales performance target: First year break-even

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Giveaway with Point Card SystemFixed cost of our shop:1. Salary: $9000 monthly per staff. (Totality 5 staff in our shop)2. Rent: $40000 monthly (As MTR is using a auction basis, lessee willing to pay the highest rent can rent the place. We plan to spend $40000 per month)3. Insurance of machinery: $1000 per month4. Utilities (include cost of printing flyers) :$50005.Depreciation expense (Machinery): $2000Total fixed cost= $66000Contribution: Selling price – food costContribution: $129/10 – $29.5/10 = 9.95 per breadBreak-even unit: Monthly total fixed cost/contribution per bread =66000/9.95 =6634 bread per month

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EndThank YOU


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