Technological trends Health-conscious consuming trend New technology to produce reduced-fat & fat-free chocolate items Multi use trend Innovative technology to produce chocolate cocktails chocolate cosmic chocolate hotpots
Political-legal trends Issue: Use of child labor and slaves in cocoa farmse.g.15,000 children were workingin the chocolate farms of Cote dIvoire Establishment of a industry-wide labor standards System for monitoring the industry
Social-cultural trends Double side trends: Criticism: high-fat milk chocolates – threaten healthPopularity :contain antioxidant flavones- associated health benefits Pursuit for ‘healthy chocolates’-Low fat-Nutritious-Organic
Opportunities Satisfaction for ‘diet ’ trend- Low fat and calories Satisfaction for ‘healthy and fit’ trend- Organic materials with rich nutrition Best choice as souvenirs- Hong Kong as an attractive tourism destination- Specialty of Hong Kong-Chinese chocolate brand Cooperation with hotel chains- Special promotional tool- Concentration on target market
Threats Competition from other matured companies (e.g. Godiva) Existing market share Loss of potential Recognizable brand customers Powerful promotion Imitation of brand concept - ‘Organic and Diet chocolate’- Diminishing uniqueness
Competitor analysisA new market Current Competitor Godiva ( similar image and services at similar prices)
Competitor analysisPRODUCT -Two production methods (enrobing and shell- molding ) -Made by fine chocolate and high quality ingredients -Two types of chocolates: Gold collection and Piece by Piece PLACE -15 stores in Hong Kong -Luxury product shopping mall
Competitor analysis PRICE Piece-by-Piece: HK$140 per 100gm. Gold Collection 8/15pcs: HK$150/$280 Gold Collection 25/32pcs: HK$450/$580. PROMOTION Cooperate with Town gas Cooking Centre Chocolates School for making chocolates class.
Competitor analysis Strength High quality product Global brand Leader Complete sales net in the worldwide Weakness Godiva chocolate’s price set on a high level
Competitor analysis Opportunities Luxury image and positive brand name Close interaction between Hong Kong and Mainland China Threats Keen competition E.G: Agnes B operated its own chocolate shop these years.
Our Objectives... To become a famous brand in Hong Kong 5% Market share in Hong Kong market
Market share of choclatiers in China 30% Foreign chocolate brands 70% LocalAccording to Marbury (2009), foreign chocolate brandshave captured 70% of the Chinese chocolate market.
Become a famous brand HOW? A high quality materials Well-planned strategy An environmental friendly way and sustainable development policy High quality
Target customer Mainland traveler in Hong Kong aged 26-45 Financially independent
Target customers analysis Chinese traveler is a big group of potential customers High demand of product and purchasing power Our product can satisfy their wants Healthy Psychology Purchase pattern
Marketing Mix strategies andprograms (4Ps) Positioning Mainland female traveler in Hong Kong aged 26-47 Luxury brand Main competitor - Godiva Trailer made chocolate for Mainland female Hong Kong based company Cater cultural need
Marketing Mix strategies andprograms (4Ps) Products French woman Sophisticated Independent Stylish and modern
Marketing controlsCorrective actions Services Ensuring staff quality meets standard Lessons for improving service attitude Food Consider another cocoa supplier to enhance higher quality Develop more products that can attract different customers
Marketing controls Corrective Actions Promotion Decreasing the budget of the least effective channel. Cut the budget of the most effectiveness promotion channel and uses it to other new channels in order to test the market. Remain one or two highest effective channels instead of multi channels if the promotion cost could not provide expected sales.
ReferenceAustralian Vitamins. (n.d.). Cacao Beans: Raw Organic. In AustralianVitamins.Retrieved Mar 7, 2012, fromhttp://www.australianvitamins.com/products/view/908.Price.China.com. (2006). 中國女性生活狀態報告. In China.com. Retrieved2006, fromhttp://big5.china.com.cn/info/zhuanti/nxsh/node_7003138.htm.Godiva. (n.d.). Godiva Chocolatier. Retrieved March 8, 2012, fromhttp://www.godiva.com.hk/HIGHBEAM BUSINESS. (2011). Chocolate and Cocoa Products market.In HIGHBEAM BUSINESS. Retrieved March 8, 2012, fromhttp://business.highbeam.com/industry-reports/food/chocolate-cocoa-products
ReferenceHKTB. (2010). Visitor arrival statistic. In HKTB . Retrieved 2010, fromhttp://tw.partnernet.hktb.com/pnweb/jsp/comm/index.jsp?pageContent=%2Fjsp%2Frso%2Frso_pub.jsp&charset=b5.In N Marbury (Chair)(2009). Paper presented at Godiva brand brief.H．Smith. (1935). 中國人的性格. In angelfire. Retrieved 2010, fromhttp://www.angelfire.com/hi/hayashi/xinge.html.Karyu Realty Ltd. (n.d). Retrieved March 21,2012, fromhttp://smeitrade.com/showroom/model/T0126/templateCategoryProductList.do?ParentId=1326965323672000479&webId=1318559973524012836&editCurrentLanguage=1318559973556012837.Leanne, M. (2011). Top 10 Luxury Chocolatiers. In The Asia City Network. RetrievedMarch 21,2012, fromhttp://hk.asia-city.com/restaurants/article/top-10-luxury-chocolatiers.
ReferenceNational Bureau of Statistics of China.Retrieved March 8, 2012, fromhttp://www.stats.gov.cn/Net MBA Business knowledge Center. (n.d.). The Marketing Mix (The 4 Ps ofMarketing). In Net MBA.Retrieved Mar 7, 2012, fromhttp://www.netmba.com/marketing/mix/Qunar. (2010).女性旅遊報告趨勢. In Qunar. Retrieved 2010, fromhttp://hot.qunar.com/download/2010womentravelreport.pdf.The Epoch Times. (2005). 中國女性生活質量報告.In The Epoch Times . Retrieved2006, fromhttp://tw.epochtimes.com/b5/6/3/2/n1242531.htm.Ycharts. (2011). Rocky Mountain Chocolate Factory Gross Profit Margin. InYcharts. Retrieved March 21,2012, fromhttp://ycharts.com/companies/RMCF/gross_profit_margin.