This document outlines the marketing plan for a new café called Cafaholic opening in Tsim Sha Tsui East, Hong Kong. [1] It includes an executive summary, external environmental analysis, SWOT analysis, objectives, target market identification, and marketing mix strategies involving product, price, place, and promotion. [2] The objectives are to create brand recognition among local residents and achieve annual sales and customer growth targets. [3] The target market is identified as customers aged 16-30 based on food preferences.

1. HTM 2121
TOURISM AND HOSPITALITY MARKETING
An F&B outlet in TST East
Lau Yan Yu Yammy 11328194D
Sin Kai Ho Alan 11207071D
Tam Ho Leung Anthony 11027756D
Wong Yuk Fung Sandy 11195185D

2. Our flow
1)Executive summary
2)External environmental analysis
3)Opportunities and threats
4)Objectives
5)Target market
6)Marketing mix strategies and programs
7)Implementation milestone
8)Marketing budget
9)Marketing controls

3. Executive summary
To outline the strategies and programs used in the opening of café in TST East
To analysis External environmental
To analysis our main competitor  CAFFE HABITU
To analysis the promotion channels
To calculate the cost and forecast sales
Estimate to have the payback period within 11months

4. Cafaholic
• Café located in Tsim Sha Tsui East
• theme  display local brand product
e.g self- designed assesories, clothing

5. External Environmental
Analysis

6. 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

7. Economic Trends
Steady growth of Hong Kong local Economy
*GDP of HK keeps
increasing in the
following years
Source from HK Tourism Board statistics review 2010

8. 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 card
Supply
 Active service providers : Standard Chartered,
HSBC
Demand
 majority of Hong Kong people own credit cards
 use their credit card more than once / month

9. Political Trends
licenses and regulations to operate café (required by
law)
• Basic
Office-insurance-Plan
Business Registration Certificate
• Maintaining the business under a legal condition
General Restaurant License
• Selling of general food items
 Frozen Confection Factory License
• Selling of frozen items such as Ice-cream
 Liquor Licensing

10. Political Trends (con’t)
Selling of alcoholic beverages
• Hazard analysis and critical control
points(HACCP)
To ensure food production procedure is
followed in established standard
Fire Safety Ordinance
• Necessary for emergency uses
• takes 8 to 10 weeks to proceed

11. SWOT Analysis
Strength
• Unique theme
• the atmosphere
 Created by displaying lovely, cool and creative
local brands
 Teenagers can be easily attracted

12. SWOT Analysis(con’t)
Weakness
• Financial issue
• A new and immature shop
 difficult to invite considerable numbers of investors
within a short period
 May have insufficient money to have further
investment

13. SWOT Analysis(con’t)
Opportunities
• lower price by comparing to other café
shop in TsimShaTsui East
e.G , CaffeHabitu
the average cost per dish of Caffe Habitu
is$111
 attract more teens
• High purchasing power
Of target customers

14. SWOT Analysis(con’t)
Threats
Relatively large number of competitors
• more than 10 café shops in Tsim Sha Tsui
East
e.G Caffe Habitu
enjoying a first-mover advantage in the
local cyber-cafe market.

15. Objectives
Mission
• To operate a theme and ambience café
• To make it as a small museum
displaying local brand and self-designed fashion
products
• To promote our local brand as well as local culture
(TST East)
• To promote creative industry in Hong Kong by
increasing exposure of the local brand product.

16. Objectives (con’t)
Marketing Objective
First year operation objectives
• Create brand recognition for TST residents
 Maintain a group of loyal customers
• An annual growth of sales for 10%
• An annual growth of customers for 20%

17. Target market
Market Segmentation:
• To differentiate the potential customers
• To figure out the most profitable and feasible market
segment
 rivet the resource on it.
Age Highest Lowest
Demographic (Age)
preference preference
15 fatty and sugary dairy food and
food vegetable
16-24 snack-related
foods
25-34 snack-related
foods and meal-
related
Reference: (Wansink B., Cheney M. M. & Chan N., 2003)
(Census and Statistics Department, 2011)

18. Target market(con’t)
Market Targeting:
• Concentrated marketing
 Target the segment range from customers aged 16-30
• Combination of the age groups 15-24 and 25-34
(share very similar preferences on food)

19. Market Positioning
Specific marketing mix programs
• Product,
• Price,
• Place ,
• Promotion
create the desired perception of the product.
 provides customers with a prescribed image of the product

20. Market Positioning-
Product
Food 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
• Tea

21. Market Positioning-
Product (cont’d)
• Services /Theme
small exhibition  provide a venue for displaying some
local brands for free
• Designers
(1)designers from Hong Kong Polytechnic University
School of Design
Clothing
Accessories
(2) Maya from AVENUES Company
Shoes
Handbags
Accessories
• Ambience atmosphere

22. Market Positioning
-Price
2P Pricing Strategy
• Competition-based pricing as the pricing strategy
• Consideration of pricing method of the competitors
 make sure the price competitiveness of the café towards
its competitors
 set up the maximum price of similar items

23. Market Positioning
-Place
• Direct distribution
No middlemen should be involved
add a high profit margin
 high Cost
Higher price reduces the price
competitiveness

24. Market Positioning-
Promotion
Promotion tools
• Magazine
• Coupon
• Radio
• Homepage
• Facebook
• Showroom
• Discount

25. Budgeting
Sales forecasts
With the direct observation of our major
competitors forecast
Consumer per day  60
Average consumption $ 82.25
Upon calculation,
Cafaholic can balance the revenue and
expenditure within a year
(estimated to be 10.9 months)

26. Marketing Controls
• Maintain the accomplishment of objective
differentiate Cafaholic from other café in TST East
• Ongoing controls
 Maintain the effectiveness of promotion tools
• Adjustment on our strategy on promotion
changing our channel on advertisement
quit from the channel
 In case promotion get out of track

27. -END-