Chan Koon Kiu, Kennis 11579948DCheung Wan Yin, Winnie 11557030DKong Ka Wai, Kerry 11514169DWong Hoi Ning, Stephain 11524532D
Background Opening hour: 8a.m. to 10p.m. Location : Harbor City Size: 900 sq.ftOperation of the 1) self-served in take-away bakery and bottledbakery: drinks 2) full-service in a café style.Target Customers -Mainland travelers -Business person -visitors of the shopping mall
Objectives1. To increased 40% sales volume whencompared to the first month within a year2. To gain customer’s share of mind by 25%within 12 months3. To acquire customer’s share of heart by 10%within 12 months4. To obtain 30% of customer retention within12 months especially for the Café area.
Positioning Strategy Positioning Perceptual MappingOrganic ingredients ->create a healthy image ->price relatively expensive lies in the middle ->build a deluxe image of the perceptual mapTake way service and dine in service
Supporting products Luxury and “Just baked relaxingFresh-squeezed dining juices products” experience Augmented products Interior design Semi-opened (white and silver Classic and soft kitchen color) music with the aroma
Place2/F, Harbour City, Popular mall for Tsim Sha Tsui local and tourists Various Payment Official website methods
Price • Marketing objective • high prices to cover higher quality and guest service levelsInternal • the price is above the average in the market butFactors little bit cheaper than hotel cake shop • Competition • The price range set by: agnès b. CAFÉ L.P.G food from $32 to $35 andExternal coffee from $28- $45Factors Starbuck food from $16-$38 and drinks from $16- $42
Pricing Strategy Cost-based Pricing The high-end or luxury brand items typically have a high markup. (Alexis W. 2003-2012) Mark up: 65% Mark up: 75% Mark up: 50%to cover the high rental cost and the cost of high quality product ingredient
Costs/(1-desired profit %) = Selling Price Stewart John. Quick Printing (Jun 2007) Selling price: Selling price: Selling price: $15 to $35 $40 to $70 $18 to $50 Psychological pricing factorSelling price can give a signal to customers that our product is high quality especially they do notfamiliar commencement of business
Marketing Expense Forecast Items/Month Jan Feb March April May June July August Sep Oct Nov DecMagazineAdvertising $2,500 $2,500Catalogues $4,430Groupon $4,000OpenriceAdvertising $4,000OpenriceDiscountCoupon $3,500 Sales Forecast (2013-2014)Items/Month Jan Feb Mar April May June July August Sep Oct Nov DecFood 185000 198875 208125 217375 231250 240500 265250 275300 249750 259000 268250 281500Drinks 44130 47439.75 49646.25 51852.75 55162.5 71711.25 64008.5 65201 59575.5 61782 63988.5 65310Service Charges 22913 24631.48 25777.13 26922.78 28641.25 31221.13 32925.85 34050.1 30932.55 32078.2 33223.85 34681Total Sales 252043 270946.2 283548.4 296150.5 315053.8 343432.4 362184.4 374551.1 340258.1 352860.2 365462.4 381491
ControlPerspective Possible way Desired outcome Customers’ Distribute questionnaire in the Share of mind 25% and share of heart10% satisfaction harbor city and Royal Bakery café’s members To examine whether our product and service satisfy customers or notCustomers’ Membership database Increase the customers’ retentionretentionPromotional Change advertising frequently To refresh customers’ memorycontrolPricing Adjust the price by referencing Maintain profitabilitycontrol competitor and market environmentBudgetary review performance by To make consistency between prepared andControl referring to the budget actual income and expenditure Keep accurate income and expense record
Contingency plan Problem RemedyShortage of product -Not relying on only one supplier -Store some product for back upLabor absent -Part time staffTechnology lags -Experienced engineer stand by -Machine regular maintenance
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