View stunning SlideShares in full-screen with the new iOS app!Introducing SlideShare for AndroidExplore all your favorite topics in the SlideShare appGet the SlideShare app to Save for Later — even offline
View stunning SlideShares in full-screen with the new Android app!View stunning SlideShares in full-screen with the new iOS app!
Demographic trends(TST East) • Size of population 320,600 • Median age 40.8 More than 70% ranges within 15-64 • Gender Female 53.4% > 46.6% Male (2010) • Changes of population size raised by 12.5% by 2019 (highest population growth rate) take up 4% of population in HK
Economic TrendsSteady growth of Hong Kong local Economy *GDP of HK keeps increasing in the following yearsSource from HK Tourism Board statistics review 2010
Economic Trends (cont’d)Steady growth in local tourism economy *Increasing number of tourists to HK *Increasing revenue earned in tourism industry in HK Willing to spend
Economic Trends (cont’d)Willingness to spend on meals outside hotelHKTB statistic result 2010* Significant increase in tourist spending on dinning
Economic Trends (cont’d) High purchasing power of target customers• As indicated by income level median monthly domestic household income of Hong Kong (2010) :$18000• As indicated by usage of credit cardSupply Active service providers : Standard Chartered,HSBCDemand majority of Hong Kong people own credit cards use their credit card more than once / month
PoliticalSeveral licenses and regulations under the shop’s operation under the law:• Office-insurance-Plan• Business Registration CertificateFor maintaining the business under a legal condition• General Restaurant LicenseFor selling of general food items such as• Frozen Confection Factory LicenseFor selling of frozen items such as Ice-cream• Liquor Licensing
Political(con’t)For selling of alcoholic beverages• Hazard analysis and critical control points(HACCP)• To ensure food production procedure is followed in established standardFire Safety (Commercial Premises) Ordinance• Necessary for emergency uses such as smoke doors• The licenses and regulations takes 8 to 10 weeks due to the departmental checking and staffs referrals.
SWOT AnalysisStrength• has a special theme.• not providing foods and beverages but mainly selling the atmosphere by displaying lovely, cool and creative local brands.• Teenagers can be easily attracted by our theme because teens like fashionable products.
SWOT Analysis(con’t)Weakness:• Financial issue should be our biggest challenge• We are a new and immature shop very difficult to invite many investorsfor our shop in a short period in order tocollect sufficient money
SWOT Analysis(con’t)Opportunities:• lower price by comparing to other café shop in TsimShaTsui East. attract more teens• Take CaffeHabitu for example; according to the menu of CaffeHabitu from the website, the average cost per dish of CaffeHabitu is$111
SWOT Analysis(con’t)Threats:• There are more than the café shops in Tsim Sha Tsui East.• Take Caffe Habitu for example, is enjoying a first-mover advantage in the local cyber-cafe market.• There are also some additional competitors are on the horizon, and we need to prepare a lot before entering into the market.
Objectives Mission • To operate a theme and ambience café. Considering the theme of our café • To make it be a small museum, displaying local brand and self-designed fashion products • To bring our local brand as well as local culture to our foreign tourists • To promote creative industry in Hong Kong by increasing exposure of the local brand product.
Objectives(con’t) Marketing Objective: The café’s marketing objectives for the first year of operation include: • An annual growth of sales for 10%. • Create brand recognition for TST residents. • Maintain a group of loyal customers. • An annual growth of customers for 20%.
Target marketMarket Segmentation:• To differentiate the potential customers• To figure out the most profitable and feasible market segment, so as to rivet the resource on it.Demographic (Age)
Market PositioningThe process of positioning provides customerswith a prescribed image of the product.It involves specific marketing mix programs• Product,• Price,• Place ,• Promotionto create the desired perception of the product.
Market Positioning---ProductFood and Beverage• Cheese Cake,• Lemon Cake,• Baked Soufflé (Chocolate, Lemon, Rose)• Caesar Salad,• Wild Mushroom Soup,• Spring Chicken,• Smoked Salmon,• Four Cheeses pizza,• Marguerite pizza,• Coffee or Tea or Wine.
Market Positioning---ProductServices /Themesmall exhibition : provide a venue with free ofcharge for displaying some local brands.Designers:(1)designers from Hong Kong PolytechnicUniversity School of Design which is very famousin Hong Kong• Clothing• Accessories(2) Maya from AVENUES Company• Shoes• Handbags• AccessoriesOur café shop sales the atmosphere by showinglovely, cool and creative local brands.
Market Positioning( Price) Competition-based pricing will be the pricing strategy for the café.
Market Positioning(Promotion) Our shop will use • Magazine • Coupon • Radio • Homepage • Facebook • Showroom • Discount
Budgeting Food cost Fixed cost Coffee Labor Cost Cheese Cake Rental Cost Soufflé Utilities Example of fixed and food cost Smoked Salmon Promotion cost Spring Chicken
Marketing Controls• objective of the café is accomplished: create an unique, trendy, relaxing atmosphere that will differentiate us from other local coffee shops in Tsim Sha Tsui East.• Ongoing controls have to be taken on the effectiveness of promotion tools.• If promotion out of track, adjust our strategy on promotion -changing our channel on advertisement -quit from the channel.