Dora Lee 28 December 2016

HKICPA Accounting and Business Management Case Competition

2016-17

2

(Level 2)

bull Doctrine in Business Administration (City University of Hong Kong)

bull Master in Business Administration (Distinction)

bull MSc in Strategic Marketing Management (First Class Worldwide Best Completion Award)

bull The Chartered Marketer (UK) The Chartered Institute of Marketing

bull Certified Professional Marketer (Asia Pacific) The Federation of Marketing Institute

bull Professional Marketer (Hong Kong) Hong Kong Institute of Marketing

3

bull Level 2 Management Consultant (page 3 Question paper and guideline)

bull Target company Bauhaus

4

Prepare a business proposal (商業企劃書) to

bull Part II - Formulate a business plan for Bauhaus Grouprsquos operations in Hong Kong

(b) SWOT analysis of Bauhaus Grouprsquos operations in Hong Kong ndash non financial analysis in terms of favourable (+) or unfavourable (-) factors external amp internal to the organization

(20 marks ndash approximately 3 pages)

5

(c) Business plan

A business plan of $10 million for launching a promotional project to improve Bauhaus Grouprsquos operations in Hong Kong which should be supported by a marketing expenses budget and implementation details

In order to evaluate the effectiveness of your recommendations you are required to analyse the projected impact on store locations sales and average spending per customer for the years ending 31 March 2017 and 2018

(25 marks ndash approximately 4 pages)

6

A Introduction

1 Bauhaus mission

2 Current state of business

B Non financial analysis

1 External environment

2 Product portfolio

3 Competitive positioning in the industry

C Business analysis

1 Information and Communications Technology (ICT) 信息和通信技術

2 Community Involvement 社區參與

3 Environmental Protection 環境保護

4 Operating Practices 營運常規

D Implementation Plan

1 Implementation plan (Part 1)

2 SWOT Analysis (Part 1)

3 Evaluating Strategy (Part 1)

4 Measurement and Control (Part 1) 7

Business Management and Marketing Strategies

1[Think] - SWOT Analysis

2[Do] - Implementation plan

3[Check] - Evaluation measurement and Control

8

Business Management and Marketing Strategies

1[Think] - SWOT Analysis

2[Do] - Implementation plan

3[Check] - Evaluation measurement and Control

9

10

SWOT analysis

Analysis of an organizationrsquos

strengths weaknesses

opportunities amp threats in order

to identify a strategic niche that

the organization can exploit

Strengths (優勢)

bull

bull

Weaknesses (劣勢)

bull

bull

11

12

13

14

Strengths

-domestic market -high profitability and revenue -monetary assistance provided -skilled workforce -barriers of market entry -experienced business units

Weaknesses

-high investments in research and development

15

Opportunities

-growing economy -new acquisitions -new markets -venture capital -growth rates and profitability -new products and services -income level is at a constant increase

Threats

-increase in labor costs -cash flow -external business risks -government regulations -technological problems -increasing costs -price changes

Data on this page may have come in part or

entirely from one or more data providers We

are not responsible for any errors or

omissions on this page This website is for

information purposes only

bull Marketing and advertising capabilities

bull Strong customer connect through strong brand promotion

bull Brand awareness and reputationHigh TOMA (top of mind awareness)

bull Brand loyalty

bull Multi channel strategy by extending online sales

bull Strong and extensive distribution channels in Hong Kong Efficient distribution

bull Strategic location

16

Relevancy

bull Lack of marketing capability

bull Higher costs arising from training personnel

bull Lack of e-commerce

bull Lack of product breath and offerings at different price points

bull Low turnover of product

bull Limited stock

17

Relevancy

bull Brand image

bull Company image and social engagement

bull Mobile payments

bull Growth of fashion market

bull Global market penetration

bull Growing Asian market (good growing market to be in)

bull Online market (expand into internet)

18

Relevancy

bull Fluctuation in exchange rates

bull Market entry barriers

bull Design challenges

bull Global competitors

bull Local competitors

19

Relevancy

Business Management and Marketing Strategies

1[Think] - SWOT Analysis

2[Do] - Implementation plan

3[Check] - Evaluation measurement and Control

20

(c) Business plan

A business plan of $10 million for launching a promotional project to improve Bauhaus Grouprsquos operations in Hong Kong which should be supported by a marketing expenses budget and implementation details In order to evaluate the effectiveness of your recommendations you are required to analyse the projected impact on store locations sales and average spending per customer for the years ending 31 March 2017 and 2018

(25 marks ndash approximately 4 pages)

21

bull Inform

bull Persuade amp

bull Remind customers about the Group andor its products

22

You need to consider

bull The target market

bull The nature of the products

bull The stage of the productrsquos life cycle

bull Money available for the promotion

23

bull Question Bauhaus targets WHO with products as its signature categories

bull ldquoBauhaus is principally engaged in the design manufacture wholesale and

retail sales of apparel bags and sacs and accessories under its own brand names of TOUGH and SALAD as well as retail sales of apparel under other third party

brand names in the fashion industry Bauhausrsquos products as well as those sourced from the third party brand names are adopting a trendy amp casual line targeting young consumers with fashion consciousnessrdquo

(Barits Ho Chong Securities Co Ltd 2006)

24

25

bull Bauhaus manufactures and trades a wide range of apparels (服飾)) and accessories for consumers

bull Its products include jeans shirts denim clothes pants tops t-shirts footwear and other leather accessories

bull It also sells accessories including handbags wallets backpack clutches shoulder bags top handles tote bags and caps

bull The company has brand such as BAUHAUS TOUGH Jeansmith SALAD 8020 and SUPERDR

(GlobalData 2015)

26

Growth stage bull Sold a lot + To sell as much as possible

bull Competitors watch amp decide about joining in with a competitor product

bull Growth continues until too may competitors in the market (market saturation)

bull At the end of the growth stage profits starts to decline amp the Group has to spend more money on promotion to keep sales going

bull Spending money on promotion cuts into the Grouprsquos profit

bull ldquoPersuasive promotionrdquo is in place during this stage

27

Maturity stage bull Many competitors have joined ndash market is saturated

bull The only way to sell is to begin to lower the price amp profits decrease

bull It is difficult to tell the different between products since most have the same FAB ndash Features Advantages amp Benefits [ no obvious product differentiation]

bull ldquoPersuasive promotionrdquo becomes more important during this stage

bull The Group TV commercials (or promotion) almost begging the customers to still buy its products because the Group still makes it just as good

28

HK$10000000

10 million

29

Paid amp non personal mass

communication

30

bull Focus on information amp goodwill of the Group

bull Consumer advertising Rational versus emotional appeals

bull Focus on particular product(s) or brand(s)

bull Stimulate demand for specific brands

31

bull What do you want your ads to do

bull Who are you trying to reach [ Target customers]

bull What promotional message do you want to communicate

bull How much does each medium cost

32

Rate card 廣告收費價目表

33

TVB Prime time 1855-2355 (Mon to Sun)

34

Rate (30 sec)

Air time cost (30 sec)

No of spots

F7 $70500 141 (30 sec)

F15 $215640 46 (30 sec)

35

Run-of-page

(Mon-Thur)

Full page

4C

HK$306000

$10000000 306000 = 32 FP

36

Min booking (4 weeks)

HK$36000 X 4

= $144000

bull Sales promotion (促銷) demand-stimulating activity designed to supplement advertising o Coupons

o Premiums

o Contests

o Sweepstakes

o Specialty advertising ndash places the Grouprsquos name address amp advertising message on useful articles that are then distributed to target customers

37

bull Publicity (公眾信息) a non-paid form of advertising that uses mass communication to stimulate demand

o Structured news release to the media

o Coordinating personal communication with a group customers

38

bull Public relations (公共關係) a planned communication effort by the Group to contribute to generally favourable attitudes amp opinions toward the Group amp its products

o Supporting charitable projects

o Supplying volunteers or other resources

o Participating in community-service events

o Sponsorship

o Providing information to customers through newsletters

39

40

Promotional plan

marketing

expenses budget

and

implementation

details

41

Promotional plan

marketing

expenses budget

and

implementation

details

42

Promotional plan

marketing

expenses budget

and

implementation

details

Business Management and Marketing Strategies

1[Think] - SWOT Analysis

2[Do] - Implementation plan

3[Check] - Evaluation measurement and Control

43

(c) Business plan A business plan of $10 million for launching a promotional project to improve Bauhaus Grouprsquos operations in Hong Kong which should be supported by a marketing expenses budget and implementation details

In order to evaluate the effectiveness of your recommendations you are required to analyse the projected impact on store locations sales and average spending per customer for the years ending 31 March 2017 and 2018

(25 marks ndash approximately 4 pages)

44

bull Bauhaus started in 1991 on Nathan Road Tsim Sha Tsui as a contemporary fashion store bringing the best of international brands to young trend-setters in Hong Kong [28 stores]

45

46

bull Sales data before and after the promotion

bull How many sales are a result of those promotions

bull Timing of promotion [ Hedonic consumption]

bull Customersrsquo preferences

bull Change of average spending per customers [Increaseddecreased]

bull Competitorsrsquo promotional campaigns

47

bull The median monthly domestic household income for 2014 was HK$23500 (vs for 2013 HK$22400)

48

(The Information Services Department HKSAR April 2015)

Company Shares of Apparel Accessories Value (2011-2015)

(Euromonitor 2016)

49

30 companies

50

51

52

53

Strategy Formulation

Evaluation

Implementation and Execution

54

bull Barits Ho Chong Securities Co Ltd (2006) Company Update Bauhaus International Available at httpwwwmegaseccomhkUploadFile5CTaiwanListco0483HK20Bauhaus20Update2004JANpdf [15 October 2016]

bull Euromonitor International (June 2016)

bull GlobalData (2015) Bauhaus International (Holdings) Limited (483) - Financial and Strategic SWOT Analysis Review Available at httpstoreglobaldatacomcompany-reportsretailingbauhaus-international-holdings-limited-483-financial-and-strategic-swot-analysis-reviewWBWilvp97IU [15 October 2015]

bull Headline Daily rate card 2016 Available at httppaperhkheadlinecomhtmlRatecardpdf [5 December 2016]

bull The Information Services Department Hong Kong Special Administrative Region Government (April 2015) GovHK Website Hong Kong The Facts Available httpwwwgovhkenaboutabouthkfactsheetsdocspopulationpdf [30 October 2016]

bull JCDecaux Rate card 2016 Available at httpwwwjcdecauxcomhkmtr_packagehtml [5 Dec 2016]

bull Skypost Rate card 2016 Available at httpskypostulifestylecomhkresourcesadvertisementftlpdf [5 Dec 2016]

bull TVB Rate card 2016 Available at httpwwwtvbcomtvbsalesratecardratecardphpp=hd_jade [5 December 2016]

55

HKICPA Accounting and Business Management Case Competition

2016-17

2

(Level 2)

bull Doctrine in Business Administration (City University of Hong Kong)

bull Master in Business Administration (Distinction)

bull MSc in Strategic Marketing Management (First Class Worldwide Best Completion Award)

bull The Chartered Marketer (UK) The Chartered Institute of Marketing

bull Certified Professional Marketer (Asia Pacific) The Federation of Marketing Institute

bull Professional Marketer (Hong Kong) Hong Kong Institute of Marketing

3

bull Level 2 Management Consultant (page 3 Question paper and guideline)

bull Target company Bauhaus

4

Prepare a business proposal (商業企劃書) to

bull Part II - Formulate a business plan for Bauhaus Grouprsquos operations in Hong Kong

(b) SWOT analysis of Bauhaus Grouprsquos operations in Hong Kong ndash non financial analysis in terms of favourable (+) or unfavourable (-) factors external amp internal to the organization

(20 marks ndash approximately 3 pages)

5

(c) Business plan

A business plan of $10 million for launching a promotional project to improve Bauhaus Grouprsquos operations in Hong Kong which should be supported by a marketing expenses budget and implementation details

In order to evaluate the effectiveness of your recommendations you are required to analyse the projected impact on store locations sales and average spending per customer for the years ending 31 March 2017 and 2018

(25 marks ndash approximately 4 pages)

6

A Introduction

1 Bauhaus mission

2 Current state of business

B Non financial analysis

1 External environment

2 Product portfolio

3 Competitive positioning in the industry

C Business analysis

1 Information and Communications Technology (ICT) 信息和通信技術

2 Community Involvement 社區參與

3 Environmental Protection 環境保護

4 Operating Practices 營運常規

D Implementation Plan

1 Implementation plan (Part 1)

2 SWOT Analysis (Part 1)

3 Evaluating Strategy (Part 1)

4 Measurement and Control (Part 1) 7

Business Management and Marketing Strategies

1[Think] - SWOT Analysis

2[Do] - Implementation plan

3[Check] - Evaluation measurement and Control

8

Business Management and Marketing Strategies

1[Think] - SWOT Analysis

2[Do] - Implementation plan

3[Check] - Evaluation measurement and Control

9

10

SWOT analysis

Analysis of an organizationrsquos

strengths weaknesses

opportunities amp threats in order

to identify a strategic niche that

the organization can exploit

Strengths (優勢)

bull

bull

Weaknesses (劣勢)

bull

bull

11

12

13

14

Strengths

-domestic market -high profitability and revenue -monetary assistance provided -skilled workforce -barriers of market entry -experienced business units

Weaknesses

-high investments in research and development

15

Opportunities

-growing economy -new acquisitions -new markets -venture capital -growth rates and profitability -new products and services -income level is at a constant increase

Threats

-increase in labor costs -cash flow -external business risks -government regulations -technological problems -increasing costs -price changes

Data on this page may have come in part or

entirely from one or more data providers We

are not responsible for any errors or

omissions on this page This website is for

information purposes only

bull Marketing and advertising capabilities

bull Strong customer connect through strong brand promotion

bull Brand awareness and reputationHigh TOMA (top of mind awareness)

bull Brand loyalty

bull Multi channel strategy by extending online sales

bull Strong and extensive distribution channels in Hong Kong Efficient distribution

bull Strategic location

16

Relevancy

bull Lack of marketing capability

bull Higher costs arising from training personnel

bull Lack of e-commerce

bull Lack of product breath and offerings at different price points

bull Low turnover of product

bull Limited stock

17

Relevancy

bull Brand image

bull Company image and social engagement

bull Mobile payments

bull Growth of fashion market

bull Global market penetration

bull Growing Asian market (good growing market to be in)

bull Online market (expand into internet)

18

Relevancy

bull Fluctuation in exchange rates

bull Market entry barriers

bull Design challenges

bull Global competitors

bull Local competitors

19

Relevancy

Business Management and Marketing Strategies

1[Think] - SWOT Analysis

2[Do] - Implementation plan

3[Check] - Evaluation measurement and Control

20

(c) Business plan

A business plan of $10 million for launching a promotional project to improve Bauhaus Grouprsquos operations in Hong Kong which should be supported by a marketing expenses budget and implementation details In order to evaluate the effectiveness of your recommendations you are required to analyse the projected impact on store locations sales and average spending per customer for the years ending 31 March 2017 and 2018

(25 marks ndash approximately 4 pages)

21

bull Inform

bull Persuade amp

bull Remind customers about the Group andor its products

22

You need to consider

bull The target market

bull The nature of the products

bull The stage of the productrsquos life cycle

bull Money available for the promotion

23

bull Question Bauhaus targets WHO with products as its signature categories

bull ldquoBauhaus is principally engaged in the design manufacture wholesale and

retail sales of apparel bags and sacs and accessories under its own brand names of TOUGH and SALAD as well as retail sales of apparel under other third party

brand names in the fashion industry Bauhausrsquos products as well as those sourced from the third party brand names are adopting a trendy amp casual line targeting young consumers with fashion consciousnessrdquo

(Barits Ho Chong Securities Co Ltd 2006)

24

25

bull Bauhaus manufactures and trades a wide range of apparels (服飾)) and accessories for consumers

bull Its products include jeans shirts denim clothes pants tops t-shirts footwear and other leather accessories

bull It also sells accessories including handbags wallets backpack clutches shoulder bags top handles tote bags and caps

bull The company has brand such as BAUHAUS TOUGH Jeansmith SALAD 8020 and SUPERDR

(GlobalData 2015)

26

Growth stage bull Sold a lot + To sell as much as possible

bull Competitors watch amp decide about joining in with a competitor product

bull Growth continues until too may competitors in the market (market saturation)

bull At the end of the growth stage profits starts to decline amp the Group has to spend more money on promotion to keep sales going

bull Spending money on promotion cuts into the Grouprsquos profit

bull ldquoPersuasive promotionrdquo is in place during this stage

27

Maturity stage bull Many competitors have joined ndash market is saturated

bull The only way to sell is to begin to lower the price amp profits decrease

bull It is difficult to tell the different between products since most have the same FAB ndash Features Advantages amp Benefits [ no obvious product differentiation]

bull ldquoPersuasive promotionrdquo becomes more important during this stage

bull The Group TV commercials (or promotion) almost begging the customers to still buy its products because the Group still makes it just as good

28

HK$10000000

10 million

29

Paid amp non personal mass

communication

30

bull Focus on information amp goodwill of the Group

bull Consumer advertising Rational versus emotional appeals

bull Focus on particular product(s) or brand(s)

bull Stimulate demand for specific brands

31

bull What do you want your ads to do

bull Who are you trying to reach [ Target customers]

bull What promotional message do you want to communicate

bull How much does each medium cost

32

Rate card 廣告收費價目表

33

TVB Prime time 1855-2355 (Mon to Sun)

34

Rate (30 sec)

Air time cost (30 sec)

No of spots

F7 $70500 141 (30 sec)

F15 $215640 46 (30 sec)

35

Run-of-page

(Mon-Thur)

Full page

4C

HK$306000

$10000000 306000 = 32 FP

36

Min booking (4 weeks)

HK$36000 X 4

= $144000

bull Sales promotion (促銷) demand-stimulating activity designed to supplement advertising o Coupons

o Premiums

o Contests

o Sweepstakes

o Specialty advertising ndash places the Grouprsquos name address amp advertising message on useful articles that are then distributed to target customers

37

bull Publicity (公眾信息) a non-paid form of advertising that uses mass communication to stimulate demand

o Structured news release to the media

o Coordinating personal communication with a group customers

38

bull Public relations (公共關係) a planned communication effort by the Group to contribute to generally favourable attitudes amp opinions toward the Group amp its products

o Supporting charitable projects

o Supplying volunteers or other resources

o Participating in community-service events

o Sponsorship

o Providing information to customers through newsletters

39

40

Promotional plan

marketing

expenses budget

and

implementation

details

41

Promotional plan

marketing

expenses budget

and

implementation

details

42

Promotional plan

marketing

expenses budget

and

implementation

details

Business Management and Marketing Strategies

1[Think] - SWOT Analysis

2[Do] - Implementation plan

3[Check] - Evaluation measurement and Control

43

(c) Business plan A business plan of $10 million for launching a promotional project to improve Bauhaus Grouprsquos operations in Hong Kong which should be supported by a marketing expenses budget and implementation details

In order to evaluate the effectiveness of your recommendations you are required to analyse the projected impact on store locations sales and average spending per customer for the years ending 31 March 2017 and 2018

(25 marks ndash approximately 4 pages)

44

bull Bauhaus started in 1991 on Nathan Road Tsim Sha Tsui as a contemporary fashion store bringing the best of international brands to young trend-setters in Hong Kong [28 stores]

45

46

bull Sales data before and after the promotion

bull How many sales are a result of those promotions

bull Timing of promotion [ Hedonic consumption]

bull Customersrsquo preferences

bull Change of average spending per customers [Increaseddecreased]

bull Competitorsrsquo promotional campaigns

47

bull The median monthly domestic household income for 2014 was HK$23500 (vs for 2013 HK$22400)

48

(The Information Services Department HKSAR April 2015)

Company Shares of Apparel Accessories Value (2011-2015)

(Euromonitor 2016)

49

30 companies

50

51

52

53

Strategy Formulation

Evaluation

Implementation and Execution

54

bull Barits Ho Chong Securities Co Ltd (2006) Company Update Bauhaus International Available at httpwwwmegaseccomhkUploadFile5CTaiwanListco0483HK20Bauhaus20Update2004JANpdf [15 October 2016]

bull Euromonitor International (June 2016)

bull GlobalData (2015) Bauhaus International (Holdings) Limited (483) - Financial and Strategic SWOT Analysis Review Available at httpstoreglobaldatacomcompany-reportsretailingbauhaus-international-holdings-limited-483-financial-and-strategic-swot-analysis-reviewWBWilvp97IU [15 October 2015]

bull Headline Daily rate card 2016 Available at httppaperhkheadlinecomhtmlRatecardpdf [5 December 2016]

bull The Information Services Department Hong Kong Special Administrative Region Government (April 2015) GovHK Website Hong Kong The Facts Available httpwwwgovhkenaboutabouthkfactsheetsdocspopulationpdf [30 October 2016]

bull JCDecaux Rate card 2016 Available at httpwwwjcdecauxcomhkmtr_packagehtml [5 Dec 2016]

bull Skypost Rate card 2016 Available at httpskypostulifestylecomhkresourcesadvertisementftlpdf [5 Dec 2016]

bull TVB Rate card 2016 Available at httpwwwtvbcomtvbsalesratecardratecardphpp=hd_jade [5 December 2016]

55

bull Doctrine in Business Administration (City University of Hong Kong)

bull Master in Business Administration (Distinction)

bull MSc in Strategic Marketing Management (First Class Worldwide Best Completion Award)

bull The Chartered Marketer (UK) The Chartered Institute of Marketing

bull Certified Professional Marketer (Asia Pacific) The Federation of Marketing Institute

bull Professional Marketer (Hong Kong) Hong Kong Institute of Marketing

3

bull Level 2 Management Consultant (page 3 Question paper and guideline)

bull Target company Bauhaus

4

Prepare a business proposal (商業企劃書) to

bull Part II - Formulate a business plan for Bauhaus Grouprsquos operations in Hong Kong

(b) SWOT analysis of Bauhaus Grouprsquos operations in Hong Kong ndash non financial analysis in terms of favourable (+) or unfavourable (-) factors external amp internal to the organization

(20 marks ndash approximately 3 pages)

5

(c) Business plan

A business plan of $10 million for launching a promotional project to improve Bauhaus Grouprsquos operations in Hong Kong which should be supported by a marketing expenses budget and implementation details

In order to evaluate the effectiveness of your recommendations you are required to analyse the projected impact on store locations sales and average spending per customer for the years ending 31 March 2017 and 2018

(25 marks ndash approximately 4 pages)

6

A Introduction

1 Bauhaus mission

2 Current state of business

B Non financial analysis

1 External environment

2 Product portfolio

3 Competitive positioning in the industry

C Business analysis

1 Information and Communications Technology (ICT) 信息和通信技術

2 Community Involvement 社區參與

3 Environmental Protection 環境保護

4 Operating Practices 營運常規

D Implementation Plan

1 Implementation plan (Part 1)

2 SWOT Analysis (Part 1)

3 Evaluating Strategy (Part 1)

4 Measurement and Control (Part 1) 7

Business Management and Marketing Strategies

1[Think] - SWOT Analysis

2[Do] - Implementation plan

3[Check] - Evaluation measurement and Control

8

Business Management and Marketing Strategies

1[Think] - SWOT Analysis

2[Do] - Implementation plan

3[Check] - Evaluation measurement and Control

9

10

SWOT analysis

Analysis of an organizationrsquos

strengths weaknesses

opportunities amp threats in order

to identify a strategic niche that

the organization can exploit

Strengths (優勢)

bull

bull

Weaknesses (劣勢)

bull

bull

11

12

13

14

Strengths

-domestic market -high profitability and revenue -monetary assistance provided -skilled workforce -barriers of market entry -experienced business units

Weaknesses

-high investments in research and development

15

Opportunities

-growing economy -new acquisitions -new markets -venture capital -growth rates and profitability -new products and services -income level is at a constant increase

Threats

-increase in labor costs -cash flow -external business risks -government regulations -technological problems -increasing costs -price changes

Data on this page may have come in part or

entirely from one or more data providers We

are not responsible for any errors or

omissions on this page This website is for

information purposes only

bull Marketing and advertising capabilities

bull Strong customer connect through strong brand promotion

bull Brand awareness and reputationHigh TOMA (top of mind awareness)

bull Brand loyalty

bull Multi channel strategy by extending online sales

bull Strong and extensive distribution channels in Hong Kong Efficient distribution

bull Strategic location

16

Relevancy

bull Lack of marketing capability

bull Higher costs arising from training personnel

bull Lack of e-commerce

bull Lack of product breath and offerings at different price points

bull Low turnover of product

bull Limited stock

17

Relevancy

bull Brand image

bull Company image and social engagement

bull Mobile payments

bull Growth of fashion market

bull Global market penetration

bull Growing Asian market (good growing market to be in)

bull Online market (expand into internet)

18

Relevancy

bull Fluctuation in exchange rates

bull Market entry barriers

bull Design challenges

bull Global competitors

bull Local competitors

19

Relevancy

Business Management and Marketing Strategies

1[Think] - SWOT Analysis

2[Do] - Implementation plan

3[Check] - Evaluation measurement and Control

20

(c) Business plan

A business plan of $10 million for launching a promotional project to improve Bauhaus Grouprsquos operations in Hong Kong which should be supported by a marketing expenses budget and implementation details In order to evaluate the effectiveness of your recommendations you are required to analyse the projected impact on store locations sales and average spending per customer for the years ending 31 March 2017 and 2018

(25 marks ndash approximately 4 pages)

21

bull Inform

bull Persuade amp

bull Remind customers about the Group andor its products

22

You need to consider

bull The target market

bull The nature of the products

bull The stage of the productrsquos life cycle

bull Money available for the promotion

23

bull Question Bauhaus targets WHO with products as its signature categories

bull ldquoBauhaus is principally engaged in the design manufacture wholesale and

retail sales of apparel bags and sacs and accessories under its own brand names of TOUGH and SALAD as well as retail sales of apparel under other third party

brand names in the fashion industry Bauhausrsquos products as well as those sourced from the third party brand names are adopting a trendy amp casual line targeting young consumers with fashion consciousnessrdquo

(Barits Ho Chong Securities Co Ltd 2006)

24

25

bull Bauhaus manufactures and trades a wide range of apparels (服飾)) and accessories for consumers

bull Its products include jeans shirts denim clothes pants tops t-shirts footwear and other leather accessories

bull It also sells accessories including handbags wallets backpack clutches shoulder bags top handles tote bags and caps

bull The company has brand such as BAUHAUS TOUGH Jeansmith SALAD 8020 and SUPERDR

(GlobalData 2015)

26

Growth stage bull Sold a lot + To sell as much as possible

bull Competitors watch amp decide about joining in with a competitor product

bull Growth continues until too may competitors in the market (market saturation)

bull At the end of the growth stage profits starts to decline amp the Group has to spend more money on promotion to keep sales going

bull Spending money on promotion cuts into the Grouprsquos profit

bull ldquoPersuasive promotionrdquo is in place during this stage

27

Maturity stage bull Many competitors have joined ndash market is saturated

bull The only way to sell is to begin to lower the price amp profits decrease

bull It is difficult to tell the different between products since most have the same FAB ndash Features Advantages amp Benefits [ no obvious product differentiation]

bull ldquoPersuasive promotionrdquo becomes more important during this stage

bull The Group TV commercials (or promotion) almost begging the customers to still buy its products because the Group still makes it just as good

28

HK$10000000

10 million

29

Paid amp non personal mass

communication

30

bull Focus on information amp goodwill of the Group

bull Consumer advertising Rational versus emotional appeals

bull Focus on particular product(s) or brand(s)

bull Stimulate demand for specific brands

31

bull What do you want your ads to do

bull Who are you trying to reach [ Target customers]

bull What promotional message do you want to communicate

bull How much does each medium cost

32

Rate card 廣告收費價目表

33

TVB Prime time 1855-2355 (Mon to Sun)

34

Rate (30 sec)

Air time cost (30 sec)

No of spots

F7 $70500 141 (30 sec)

F15 $215640 46 (30 sec)

35

Run-of-page

(Mon-Thur)

Full page

4C

HK$306000

$10000000 306000 = 32 FP

36

Min booking (4 weeks)

HK$36000 X 4

= $144000

bull Sales promotion (促銷) demand-stimulating activity designed to supplement advertising o Coupons

o Premiums

o Contests

o Sweepstakes

o Specialty advertising ndash places the Grouprsquos name address amp advertising message on useful articles that are then distributed to target customers

37

bull Publicity (公眾信息) a non-paid form of advertising that uses mass communication to stimulate demand

o Structured news release to the media

o Coordinating personal communication with a group customers

38

bull Public relations (公共關係) a planned communication effort by the Group to contribute to generally favourable attitudes amp opinions toward the Group amp its products

o Supporting charitable projects

o Supplying volunteers or other resources

o Participating in community-service events

o Sponsorship

o Providing information to customers through newsletters

39

40

Promotional plan

marketing

expenses budget

and

implementation

details

41

Promotional plan

marketing

expenses budget

and

implementation

details

42

Promotional plan

marketing

expenses budget

and

implementation

details

Business Management and Marketing Strategies

1[Think] - SWOT Analysis

2[Do] - Implementation plan

3[Check] - Evaluation measurement and Control

43

(c) Business plan A business plan of $10 million for launching a promotional project to improve Bauhaus Grouprsquos operations in Hong Kong which should be supported by a marketing expenses budget and implementation details

In order to evaluate the effectiveness of your recommendations you are required to analyse the projected impact on store locations sales and average spending per customer for the years ending 31 March 2017 and 2018

(25 marks ndash approximately 4 pages)

44

bull Bauhaus started in 1991 on Nathan Road Tsim Sha Tsui as a contemporary fashion store bringing the best of international brands to young trend-setters in Hong Kong [28 stores]

45

46

bull Sales data before and after the promotion

bull How many sales are a result of those promotions

bull Timing of promotion [ Hedonic consumption]

bull Customersrsquo preferences

bull Change of average spending per customers [Increaseddecreased]

bull Competitorsrsquo promotional campaigns

47

bull The median monthly domestic household income for 2014 was HK$23500 (vs for 2013 HK$22400)

48

(The Information Services Department HKSAR April 2015)

Company Shares of Apparel Accessories Value (2011-2015)

(Euromonitor 2016)

49

30 companies

50

51

52

53

Strategy Formulation

Evaluation

Implementation and Execution

54

bull Barits Ho Chong Securities Co Ltd (2006) Company Update Bauhaus International Available at httpwwwmegaseccomhkUploadFile5CTaiwanListco0483HK20Bauhaus20Update2004JANpdf [15 October 2016]

bull Euromonitor International (June 2016)

bull GlobalData (2015) Bauhaus International (Holdings) Limited (483) - Financial and Strategic SWOT Analysis Review Available at httpstoreglobaldatacomcompany-reportsretailingbauhaus-international-holdings-limited-483-financial-and-strategic-swot-analysis-reviewWBWilvp97IU [15 October 2015]

bull Headline Daily rate card 2016 Available at httppaperhkheadlinecomhtmlRatecardpdf [5 December 2016]

bull The Information Services Department Hong Kong Special Administrative Region Government (April 2015) GovHK Website Hong Kong The Facts Available httpwwwgovhkenaboutabouthkfactsheetsdocspopulationpdf [30 October 2016]

bull JCDecaux Rate card 2016 Available at httpwwwjcdecauxcomhkmtr_packagehtml [5 Dec 2016]

bull Skypost Rate card 2016 Available at httpskypostulifestylecomhkresourcesadvertisementftlpdf [5 Dec 2016]

bull TVB Rate card 2016 Available at httpwwwtvbcomtvbsalesratecardratecardphpp=hd_jade [5 December 2016]

55

bull Level 2 Management Consultant (page 3 Question paper and guideline)

bull Target company Bauhaus

4

Prepare a business proposal (商業企劃書) to

bull Part II - Formulate a business plan for Bauhaus Grouprsquos operations in Hong Kong

(b) SWOT analysis of Bauhaus Grouprsquos operations in Hong Kong ndash non financial analysis in terms of favourable (+) or unfavourable (-) factors external amp internal to the organization

(20 marks ndash approximately 3 pages)

5

(c) Business plan

A business plan of $10 million for launching a promotional project to improve Bauhaus Grouprsquos operations in Hong Kong which should be supported by a marketing expenses budget and implementation details

In order to evaluate the effectiveness of your recommendations you are required to analyse the projected impact on store locations sales and average spending per customer for the years ending 31 March 2017 and 2018

(25 marks ndash approximately 4 pages)

6

A Introduction

1 Bauhaus mission

2 Current state of business

B Non financial analysis

1 External environment

2 Product portfolio

3 Competitive positioning in the industry

C Business analysis

1 Information and Communications Technology (ICT) 信息和通信技術

2 Community Involvement 社區參與

3 Environmental Protection 環境保護

4 Operating Practices 營運常規

D Implementation Plan

1 Implementation plan (Part 1)

2 SWOT Analysis (Part 1)

3 Evaluating Strategy (Part 1)

4 Measurement and Control (Part 1) 7

Business Management and Marketing Strategies

1[Think] - SWOT Analysis

2[Do] - Implementation plan

3[Check] - Evaluation measurement and Control

8

Business Management and Marketing Strategies

1[Think] - SWOT Analysis

2[Do] - Implementation plan

3[Check] - Evaluation measurement and Control

9

10

SWOT analysis

Analysis of an organizationrsquos

strengths weaknesses

opportunities amp threats in order

to identify a strategic niche that

the organization can exploit

Strengths (優勢)

bull

bull

Weaknesses (劣勢)

bull

bull

11

12

13

14

Strengths

-domestic market -high profitability and revenue -monetary assistance provided -skilled workforce -barriers of market entry -experienced business units

Weaknesses

-high investments in research and development

15

Opportunities

-growing economy -new acquisitions -new markets -venture capital -growth rates and profitability -new products and services -income level is at a constant increase

Threats

-increase in labor costs -cash flow -external business risks -government regulations -technological problems -increasing costs -price changes

Data on this page may have come in part or

entirely from one or more data providers We

are not responsible for any errors or

omissions on this page This website is for

information purposes only

bull Marketing and advertising capabilities

bull Strong customer connect through strong brand promotion

bull Brand awareness and reputationHigh TOMA (top of mind awareness)

bull Brand loyalty

bull Multi channel strategy by extending online sales

bull Strong and extensive distribution channels in Hong Kong Efficient distribution

bull Strategic location

16

Relevancy

bull Lack of marketing capability

bull Higher costs arising from training personnel

bull Lack of e-commerce

bull Lack of product breath and offerings at different price points

bull Low turnover of product

bull Limited stock

17

Relevancy

bull Brand image

bull Company image and social engagement

bull Mobile payments

bull Growth of fashion market

bull Global market penetration

bull Growing Asian market (good growing market to be in)

bull Online market (expand into internet)

18

Relevancy

bull Fluctuation in exchange rates

bull Market entry barriers

bull Design challenges

bull Global competitors

bull Local competitors

19

Relevancy

Business Management and Marketing Strategies

1[Think] - SWOT Analysis

2[Do] - Implementation plan

3[Check] - Evaluation measurement and Control

20

(c) Business plan

A business plan of $10 million for launching a promotional project to improve Bauhaus Grouprsquos operations in Hong Kong which should be supported by a marketing expenses budget and implementation details In order to evaluate the effectiveness of your recommendations you are required to analyse the projected impact on store locations sales and average spending per customer for the years ending 31 March 2017 and 2018

(25 marks ndash approximately 4 pages)

21

bull Inform

bull Persuade amp

bull Remind customers about the Group andor its products

22

You need to consider

bull The target market

bull The nature of the products

bull The stage of the productrsquos life cycle

bull Money available for the promotion

23

bull Question Bauhaus targets WHO with products as its signature categories

bull ldquoBauhaus is principally engaged in the design manufacture wholesale and

retail sales of apparel bags and sacs and accessories under its own brand names of TOUGH and SALAD as well as retail sales of apparel under other third party

brand names in the fashion industry Bauhausrsquos products as well as those sourced from the third party brand names are adopting a trendy amp casual line targeting young consumers with fashion consciousnessrdquo

(Barits Ho Chong Securities Co Ltd 2006)

24

25

bull Bauhaus manufactures and trades a wide range of apparels (服飾)) and accessories for consumers

bull Its products include jeans shirts denim clothes pants tops t-shirts footwear and other leather accessories

bull It also sells accessories including handbags wallets backpack clutches shoulder bags top handles tote bags and caps

bull The company has brand such as BAUHAUS TOUGH Jeansmith SALAD 8020 and SUPERDR

(GlobalData 2015)

26

Growth stage bull Sold a lot + To sell as much as possible

bull Competitors watch amp decide about joining in with a competitor product

bull Growth continues until too may competitors in the market (market saturation)

bull At the end of the growth stage profits starts to decline amp the Group has to spend more money on promotion to keep sales going

bull Spending money on promotion cuts into the Grouprsquos profit

bull ldquoPersuasive promotionrdquo is in place during this stage

27

Maturity stage bull Many competitors have joined ndash market is saturated

bull The only way to sell is to begin to lower the price amp profits decrease

bull It is difficult to tell the different between products since most have the same FAB ndash Features Advantages amp Benefits [ no obvious product differentiation]

bull ldquoPersuasive promotionrdquo becomes more important during this stage

bull The Group TV commercials (or promotion) almost begging the customers to still buy its products because the Group still makes it just as good

28

HK$10000000

10 million

29

Paid amp non personal mass

communication

30

bull Focus on information amp goodwill of the Group

bull Consumer advertising Rational versus emotional appeals

bull Focus on particular product(s) or brand(s)

bull Stimulate demand for specific brands

31

bull What do you want your ads to do

bull Who are you trying to reach [ Target customers]

bull What promotional message do you want to communicate

bull How much does each medium cost

32

Rate card 廣告收費價目表

33

TVB Prime time 1855-2355 (Mon to Sun)

34

Rate (30 sec)

Air time cost (30 sec)

No of spots

F7 $70500 141 (30 sec)

F15 $215640 46 (30 sec)

35

Run-of-page

(Mon-Thur)

Full page

4C

HK$306000

$10000000 306000 = 32 FP

36

Min booking (4 weeks)

HK$36000 X 4

= $144000

bull Sales promotion (促銷) demand-stimulating activity designed to supplement advertising o Coupons

o Premiums

o Contests

o Sweepstakes

o Specialty advertising ndash places the Grouprsquos name address amp advertising message on useful articles that are then distributed to target customers

37

bull Publicity (公眾信息) a non-paid form of advertising that uses mass communication to stimulate demand

o Structured news release to the media

o Coordinating personal communication with a group customers

38

bull Public relations (公共關係) a planned communication effort by the Group to contribute to generally favourable attitudes amp opinions toward the Group amp its products

o Supporting charitable projects

o Supplying volunteers or other resources

o Participating in community-service events

o Sponsorship

o Providing information to customers through newsletters

39

40

Promotional plan

marketing

expenses budget

and

implementation

details

41

Promotional plan

marketing

expenses budget

and

implementation

details

42

Promotional plan

marketing

expenses budget

and

implementation

details

Business Management and Marketing Strategies

1[Think] - SWOT Analysis

2[Do] - Implementation plan

3[Check] - Evaluation measurement and Control

43

(c) Business plan A business plan of $10 million for launching a promotional project to improve Bauhaus Grouprsquos operations in Hong Kong which should be supported by a marketing expenses budget and implementation details

In order to evaluate the effectiveness of your recommendations you are required to analyse the projected impact on store locations sales and average spending per customer for the years ending 31 March 2017 and 2018

(25 marks ndash approximately 4 pages)

44

bull Bauhaus started in 1991 on Nathan Road Tsim Sha Tsui as a contemporary fashion store bringing the best of international brands to young trend-setters in Hong Kong [28 stores]

45

46

bull Sales data before and after the promotion

bull How many sales are a result of those promotions

bull Timing of promotion [ Hedonic consumption]

bull Customersrsquo preferences

bull Change of average spending per customers [Increaseddecreased]

bull Competitorsrsquo promotional campaigns

47

bull The median monthly domestic household income for 2014 was HK$23500 (vs for 2013 HK$22400)

48

(The Information Services Department HKSAR April 2015)

Company Shares of Apparel Accessories Value (2011-2015)

(Euromonitor 2016)

49

30 companies

50

51

52

53

Strategy Formulation

Evaluation

Implementation and Execution

54

bull Barits Ho Chong Securities Co Ltd (2006) Company Update Bauhaus International Available at httpwwwmegaseccomhkUploadFile5CTaiwanListco0483HK20Bauhaus20Update2004JANpdf [15 October 2016]

bull Euromonitor International (June 2016)

bull GlobalData (2015) Bauhaus International (Holdings) Limited (483) - Financial and Strategic SWOT Analysis Review Available at httpstoreglobaldatacomcompany-reportsretailingbauhaus-international-holdings-limited-483-financial-and-strategic-swot-analysis-reviewWBWilvp97IU [15 October 2015]

bull Headline Daily rate card 2016 Available at httppaperhkheadlinecomhtmlRatecardpdf [5 December 2016]

bull The Information Services Department Hong Kong Special Administrative Region Government (April 2015) GovHK Website Hong Kong The Facts Available httpwwwgovhkenaboutabouthkfactsheetsdocspopulationpdf [30 October 2016]

bull JCDecaux Rate card 2016 Available at httpwwwjcdecauxcomhkmtr_packagehtml [5 Dec 2016]

bull Skypost Rate card 2016 Available at httpskypostulifestylecomhkresourcesadvertisementftlpdf [5 Dec 2016]

bull TVB Rate card 2016 Available at httpwwwtvbcomtvbsalesratecardratecardphpp=hd_jade [5 December 2016]

55

Prepare a business proposal (商業企劃書) to

bull Part II - Formulate a business plan for Bauhaus Grouprsquos operations in Hong Kong

(b) SWOT analysis of Bauhaus Grouprsquos operations in Hong Kong ndash non financial analysis in terms of favourable (+) or unfavourable (-) factors external amp internal to the organization

(20 marks ndash approximately 3 pages)

5

(c) Business plan

A business plan of $10 million for launching a promotional project to improve Bauhaus Grouprsquos operations in Hong Kong which should be supported by a marketing expenses budget and implementation details

In order to evaluate the effectiveness of your recommendations you are required to analyse the projected impact on store locations sales and average spending per customer for the years ending 31 March 2017 and 2018

(25 marks ndash approximately 4 pages)

6

A Introduction

1 Bauhaus mission

2 Current state of business

B Non financial analysis

1 External environment

2 Product portfolio

3 Competitive positioning in the industry

C Business analysis

1 Information and Communications Technology (ICT) 信息和通信技術

2 Community Involvement 社區參與

3 Environmental Protection 環境保護

4 Operating Practices 營運常規

D Implementation Plan

1 Implementation plan (Part 1)

2 SWOT Analysis (Part 1)

3 Evaluating Strategy (Part 1)

4 Measurement and Control (Part 1) 7

Business Management and Marketing Strategies

1[Think] - SWOT Analysis

2[Do] - Implementation plan

3[Check] - Evaluation measurement and Control

8

Business Management and Marketing Strategies

1[Think] - SWOT Analysis

2[Do] - Implementation plan

3[Check] - Evaluation measurement and Control

9

10

SWOT analysis

Analysis of an organizationrsquos

strengths weaknesses

opportunities amp threats in order

to identify a strategic niche that

the organization can exploit

Strengths (優勢)

bull

bull

Weaknesses (劣勢)

bull

bull

11

12

13

14

Strengths

-domestic market -high profitability and revenue -monetary assistance provided -skilled workforce -barriers of market entry -experienced business units

Weaknesses

-high investments in research and development

15

Opportunities

-growing economy -new acquisitions -new markets -venture capital -growth rates and profitability -new products and services -income level is at a constant increase

Threats

-increase in labor costs -cash flow -external business risks -government regulations -technological problems -increasing costs -price changes

Data on this page may have come in part or

entirely from one or more data providers We

are not responsible for any errors or

omissions on this page This website is for

information purposes only

bull Marketing and advertising capabilities

bull Strong customer connect through strong brand promotion

bull Brand awareness and reputationHigh TOMA (top of mind awareness)

bull Brand loyalty

bull Multi channel strategy by extending online sales

bull Strong and extensive distribution channels in Hong Kong Efficient distribution

bull Strategic location

16

Relevancy

bull Lack of marketing capability

bull Higher costs arising from training personnel

bull Lack of e-commerce

bull Lack of product breath and offerings at different price points

bull Low turnover of product

bull Limited stock

17

Relevancy

bull Brand image

bull Company image and social engagement

bull Mobile payments

bull Growth of fashion market

bull Global market penetration

bull Growing Asian market (good growing market to be in)

bull Online market (expand into internet)

18

Relevancy

bull Fluctuation in exchange rates

bull Market entry barriers

bull Design challenges

bull Global competitors

bull Local competitors

19

Relevancy

Business Management and Marketing Strategies

1[Think] - SWOT Analysis

2[Do] - Implementation plan

3[Check] - Evaluation measurement and Control

20

(c) Business plan

A business plan of $10 million for launching a promotional project to improve Bauhaus Grouprsquos operations in Hong Kong which should be supported by a marketing expenses budget and implementation details In order to evaluate the effectiveness of your recommendations you are required to analyse the projected impact on store locations sales and average spending per customer for the years ending 31 March 2017 and 2018

(25 marks ndash approximately 4 pages)

21

bull Inform

bull Persuade amp

bull Remind customers about the Group andor its products

22

You need to consider

bull The target market

bull The nature of the products

bull The stage of the productrsquos life cycle

bull Money available for the promotion

23

bull Question Bauhaus targets WHO with products as its signature categories

bull ldquoBauhaus is principally engaged in the design manufacture wholesale and

retail sales of apparel bags and sacs and accessories under its own brand names of TOUGH and SALAD as well as retail sales of apparel under other third party

brand names in the fashion industry Bauhausrsquos products as well as those sourced from the third party brand names are adopting a trendy amp casual line targeting young consumers with fashion consciousnessrdquo

(Barits Ho Chong Securities Co Ltd 2006)

24

25

bull Bauhaus manufactures and trades a wide range of apparels (服飾)) and accessories for consumers

bull Its products include jeans shirts denim clothes pants tops t-shirts footwear and other leather accessories

bull It also sells accessories including handbags wallets backpack clutches shoulder bags top handles tote bags and caps

bull The company has brand such as BAUHAUS TOUGH Jeansmith SALAD 8020 and SUPERDR

(GlobalData 2015)

26

Growth stage bull Sold a lot + To sell as much as possible

bull Competitors watch amp decide about joining in with a competitor product

bull Growth continues until too may competitors in the market (market saturation)

bull At the end of the growth stage profits starts to decline amp the Group has to spend more money on promotion to keep sales going

bull Spending money on promotion cuts into the Grouprsquos profit

bull ldquoPersuasive promotionrdquo is in place during this stage

27

Maturity stage bull Many competitors have joined ndash market is saturated

bull The only way to sell is to begin to lower the price amp profits decrease

bull It is difficult to tell the different between products since most have the same FAB ndash Features Advantages amp Benefits [ no obvious product differentiation]

bull ldquoPersuasive promotionrdquo becomes more important during this stage

bull The Group TV commercials (or promotion) almost begging the customers to still buy its products because the Group still makes it just as good

28

HK$10000000

10 million

29

Paid amp non personal mass

communication

30

bull Focus on information amp goodwill of the Group

bull Consumer advertising Rational versus emotional appeals

bull Focus on particular product(s) or brand(s)

bull Stimulate demand for specific brands

31

bull What do you want your ads to do

bull Who are you trying to reach [ Target customers]

bull What promotional message do you want to communicate

bull How much does each medium cost

32

Rate card 廣告收費價目表

33

TVB Prime time 1855-2355 (Mon to Sun)

34

Rate (30 sec)

Air time cost (30 sec)

No of spots

F7 $70500 141 (30 sec)

F15 $215640 46 (30 sec)

35

Run-of-page

(Mon-Thur)

Full page

4C

HK$306000

$10000000 306000 = 32 FP

36

Min booking (4 weeks)

HK$36000 X 4

= $144000

bull Sales promotion (促銷) demand-stimulating activity designed to supplement advertising o Coupons

o Premiums

o Contests

o Sweepstakes

o Specialty advertising ndash places the Grouprsquos name address amp advertising message on useful articles that are then distributed to target customers

37

bull Publicity (公眾信息) a non-paid form of advertising that uses mass communication to stimulate demand

o Structured news release to the media

o Coordinating personal communication with a group customers

38

bull Public relations (公共關係) a planned communication effort by the Group to contribute to generally favourable attitudes amp opinions toward the Group amp its products

o Supporting charitable projects

o Supplying volunteers or other resources

o Participating in community-service events

o Sponsorship

o Providing information to customers through newsletters

39

40

Promotional plan

marketing

expenses budget

and

implementation

details

41

Promotional plan

marketing

expenses budget

and

implementation

details

42

Promotional plan

marketing

expenses budget

and

implementation

details

Business Management and Marketing Strategies

1[Think] - SWOT Analysis

2[Do] - Implementation plan

3[Check] - Evaluation measurement and Control

43

(c) Business plan A business plan of $10 million for launching a promotional project to improve Bauhaus Grouprsquos operations in Hong Kong which should be supported by a marketing expenses budget and implementation details

In order to evaluate the effectiveness of your recommendations you are required to analyse the projected impact on store locations sales and average spending per customer for the years ending 31 March 2017 and 2018

(25 marks ndash approximately 4 pages)

44

bull Bauhaus started in 1991 on Nathan Road Tsim Sha Tsui as a contemporary fashion store bringing the best of international brands to young trend-setters in Hong Kong [28 stores]

45

46

bull Sales data before and after the promotion

bull How many sales are a result of those promotions

bull Timing of promotion [ Hedonic consumption]

bull Customersrsquo preferences

bull Change of average spending per customers [Increaseddecreased]

bull Competitorsrsquo promotional campaigns

47

bull The median monthly domestic household income for 2014 was HK$23500 (vs for 2013 HK$22400)

48

(The Information Services Department HKSAR April 2015)

Company Shares of Apparel Accessories Value (2011-2015)

(Euromonitor 2016)

49

30 companies

50

51

52

53

Strategy Formulation

Evaluation

Implementation and Execution

54

bull Barits Ho Chong Securities Co Ltd (2006) Company Update Bauhaus International Available at httpwwwmegaseccomhkUploadFile5CTaiwanListco0483HK20Bauhaus20Update2004JANpdf [15 October 2016]

bull Euromonitor International (June 2016)

bull GlobalData (2015) Bauhaus International (Holdings) Limited (483) - Financial and Strategic SWOT Analysis Review Available at httpstoreglobaldatacomcompany-reportsretailingbauhaus-international-holdings-limited-483-financial-and-strategic-swot-analysis-reviewWBWilvp97IU [15 October 2015]

bull Headline Daily rate card 2016 Available at httppaperhkheadlinecomhtmlRatecardpdf [5 December 2016]

bull The Information Services Department Hong Kong Special Administrative Region Government (April 2015) GovHK Website Hong Kong The Facts Available httpwwwgovhkenaboutabouthkfactsheetsdocspopulationpdf [30 October 2016]

bull JCDecaux Rate card 2016 Available at httpwwwjcdecauxcomhkmtr_packagehtml [5 Dec 2016]

bull Skypost Rate card 2016 Available at httpskypostulifestylecomhkresourcesadvertisementftlpdf [5 Dec 2016]

bull TVB Rate card 2016 Available at httpwwwtvbcomtvbsalesratecardratecardphpp=hd_jade [5 December 2016]

55

(c) Business plan

A business plan of $10 million for launching a promotional project to improve Bauhaus Grouprsquos operations in Hong Kong which should be supported by a marketing expenses budget and implementation details

In order to evaluate the effectiveness of your recommendations you are required to analyse the projected impact on store locations sales and average spending per customer for the years ending 31 March 2017 and 2018

(25 marks ndash approximately 4 pages)

6

A Introduction

1 Bauhaus mission

2 Current state of business

B Non financial analysis

1 External environment

2 Product portfolio

3 Competitive positioning in the industry

C Business analysis

1 Information and Communications Technology (ICT) 信息和通信技術

2 Community Involvement 社區參與

3 Environmental Protection 環境保護

4 Operating Practices 營運常規

D Implementation Plan

1 Implementation plan (Part 1)

2 SWOT Analysis (Part 1)

3 Evaluating Strategy (Part 1)

4 Measurement and Control (Part 1) 7

Business Management and Marketing Strategies

1[Think] - SWOT Analysis

2[Do] - Implementation plan

3[Check] - Evaluation measurement and Control

8

Business Management and Marketing Strategies

1[Think] - SWOT Analysis

2[Do] - Implementation plan

3[Check] - Evaluation measurement and Control

9

10

SWOT analysis

Analysis of an organizationrsquos

strengths weaknesses

opportunities amp threats in order

to identify a strategic niche that

the organization can exploit

Strengths (優勢)

bull

bull

Weaknesses (劣勢)

bull

bull

11

12

13

14

Strengths

-domestic market -high profitability and revenue -monetary assistance provided -skilled workforce -barriers of market entry -experienced business units

Weaknesses

-high investments in research and development

15

Opportunities

-growing economy -new acquisitions -new markets -venture capital -growth rates and profitability -new products and services -income level is at a constant increase

Threats

-increase in labor costs -cash flow -external business risks -government regulations -technological problems -increasing costs -price changes

Data on this page may have come in part or

entirely from one or more data providers We

are not responsible for any errors or

omissions on this page This website is for

information purposes only

bull Marketing and advertising capabilities

bull Strong customer connect through strong brand promotion

bull Brand awareness and reputationHigh TOMA (top of mind awareness)

bull Brand loyalty

bull Multi channel strategy by extending online sales

bull Strong and extensive distribution channels in Hong Kong Efficient distribution

bull Strategic location

16

Relevancy

bull Lack of marketing capability

bull Higher costs arising from training personnel

bull Lack of e-commerce

bull Lack of product breath and offerings at different price points

bull Low turnover of product

bull Limited stock

17

Relevancy

bull Brand image

bull Company image and social engagement

bull Mobile payments

bull Growth of fashion market

bull Global market penetration

bull Growing Asian market (good growing market to be in)

bull Online market (expand into internet)

18

Relevancy

bull Fluctuation in exchange rates

bull Market entry barriers

bull Design challenges

bull Global competitors

bull Local competitors

19

Relevancy

Business Management and Marketing Strategies

1[Think] - SWOT Analysis

2[Do] - Implementation plan

3[Check] - Evaluation measurement and Control

20

(c) Business plan

A business plan of $10 million for launching a promotional project to improve Bauhaus Grouprsquos operations in Hong Kong which should be supported by a marketing expenses budget and implementation details In order to evaluate the effectiveness of your recommendations you are required to analyse the projected impact on store locations sales and average spending per customer for the years ending 31 March 2017 and 2018

(25 marks ndash approximately 4 pages)

21

bull Inform

bull Persuade amp

bull Remind customers about the Group andor its products

22

You need to consider

bull The target market

bull The nature of the products

bull The stage of the productrsquos life cycle

bull Money available for the promotion

23

bull Question Bauhaus targets WHO with products as its signature categories

bull ldquoBauhaus is principally engaged in the design manufacture wholesale and

retail sales of apparel bags and sacs and accessories under its own brand names of TOUGH and SALAD as well as retail sales of apparel under other third party

brand names in the fashion industry Bauhausrsquos products as well as those sourced from the third party brand names are adopting a trendy amp casual line targeting young consumers with fashion consciousnessrdquo

(Barits Ho Chong Securities Co Ltd 2006)

24

25

bull Bauhaus manufactures and trades a wide range of apparels (服飾)) and accessories for consumers

bull Its products include jeans shirts denim clothes pants tops t-shirts footwear and other leather accessories

bull It also sells accessories including handbags wallets backpack clutches shoulder bags top handles tote bags and caps

bull The company has brand such as BAUHAUS TOUGH Jeansmith SALAD 8020 and SUPERDR

(GlobalData 2015)

26

Growth stage bull Sold a lot + To sell as much as possible

bull Competitors watch amp decide about joining in with a competitor product

bull Growth continues until too may competitors in the market (market saturation)

bull At the end of the growth stage profits starts to decline amp the Group has to spend more money on promotion to keep sales going

bull Spending money on promotion cuts into the Grouprsquos profit

bull ldquoPersuasive promotionrdquo is in place during this stage

27

Maturity stage bull Many competitors have joined ndash market is saturated

bull The only way to sell is to begin to lower the price amp profits decrease

bull It is difficult to tell the different between products since most have the same FAB ndash Features Advantages amp Benefits [ no obvious product differentiation]

bull ldquoPersuasive promotionrdquo becomes more important during this stage

bull The Group TV commercials (or promotion) almost begging the customers to still buy its products because the Group still makes it just as good

28

HK$10000000

10 million

29

Paid amp non personal mass

communication

30

bull Focus on information amp goodwill of the Group

bull Consumer advertising Rational versus emotional appeals

bull Focus on particular product(s) or brand(s)

bull Stimulate demand for specific brands

31

bull What do you want your ads to do

bull Who are you trying to reach [ Target customers]

bull What promotional message do you want to communicate

bull How much does each medium cost

32

Rate card 廣告收費價目表

33

TVB Prime time 1855-2355 (Mon to Sun)

34

Rate (30 sec)

Air time cost (30 sec)

No of spots

F7 $70500 141 (30 sec)

F15 $215640 46 (30 sec)

35

Run-of-page

(Mon-Thur)

Full page

4C

HK$306000

$10000000 306000 = 32 FP

36

Min booking (4 weeks)

HK$36000 X 4

= $144000

bull Sales promotion (促銷) demand-stimulating activity designed to supplement advertising o Coupons

o Premiums

o Contests

o Sweepstakes

o Specialty advertising ndash places the Grouprsquos name address amp advertising message on useful articles that are then distributed to target customers

37

bull Publicity (公眾信息) a non-paid form of advertising that uses mass communication to stimulate demand

o Structured news release to the media

o Coordinating personal communication with a group customers

38

bull Public relations (公共關係) a planned communication effort by the Group to contribute to generally favourable attitudes amp opinions toward the Group amp its products

o Supporting charitable projects

o Supplying volunteers or other resources

o Participating in community-service events

o Sponsorship

o Providing information to customers through newsletters

39

40

Promotional plan

marketing

expenses budget

and

implementation

details

41

Promotional plan

marketing

expenses budget

and

implementation

details

42

Promotional plan

marketing

expenses budget

and

implementation

details

Business Management and Marketing Strategies

1[Think] - SWOT Analysis

2[Do] - Implementation plan

3[Check] - Evaluation measurement and Control

43

(c) Business plan A business plan of $10 million for launching a promotional project to improve Bauhaus Grouprsquos operations in Hong Kong which should be supported by a marketing expenses budget and implementation details

In order to evaluate the effectiveness of your recommendations you are required to analyse the projected impact on store locations sales and average spending per customer for the years ending 31 March 2017 and 2018

(25 marks ndash approximately 4 pages)

44

bull Bauhaus started in 1991 on Nathan Road Tsim Sha Tsui as a contemporary fashion store bringing the best of international brands to young trend-setters in Hong Kong [28 stores]

45

46

bull Sales data before and after the promotion

bull How many sales are a result of those promotions

bull Timing of promotion [ Hedonic consumption]

bull Customersrsquo preferences

bull Change of average spending per customers [Increaseddecreased]

bull Competitorsrsquo promotional campaigns

47

bull The median monthly domestic household income for 2014 was HK$23500 (vs for 2013 HK$22400)

48

(The Information Services Department HKSAR April 2015)

Company Shares of Apparel Accessories Value (2011-2015)

(Euromonitor 2016)

49

30 companies

50

51

52

53

Strategy Formulation

Evaluation

Implementation and Execution

54

bull Barits Ho Chong Securities Co Ltd (2006) Company Update Bauhaus International Available at httpwwwmegaseccomhkUploadFile5CTaiwanListco0483HK20Bauhaus20Update2004JANpdf [15 October 2016]

bull Euromonitor International (June 2016)

bull GlobalData (2015) Bauhaus International (Holdings) Limited (483) - Financial and Strategic SWOT Analysis Review Available at httpstoreglobaldatacomcompany-reportsretailingbauhaus-international-holdings-limited-483-financial-and-strategic-swot-analysis-reviewWBWilvp97IU [15 October 2015]

bull Headline Daily rate card 2016 Available at httppaperhkheadlinecomhtmlRatecardpdf [5 December 2016]

bull The Information Services Department Hong Kong Special Administrative Region Government (April 2015) GovHK Website Hong Kong The Facts Available httpwwwgovhkenaboutabouthkfactsheetsdocspopulationpdf [30 October 2016]

bull JCDecaux Rate card 2016 Available at httpwwwjcdecauxcomhkmtr_packagehtml [5 Dec 2016]

bull Skypost Rate card 2016 Available at httpskypostulifestylecomhkresourcesadvertisementftlpdf [5 Dec 2016]

bull TVB Rate card 2016 Available at httpwwwtvbcomtvbsalesratecardratecardphpp=hd_jade [5 December 2016]

55

A Introduction

1 Bauhaus mission

2 Current state of business

B Non financial analysis

1 External environment

2 Product portfolio

3 Competitive positioning in the industry

C Business analysis

1 Information and Communications Technology (ICT) 信息和通信技術

2 Community Involvement 社區參與

3 Environmental Protection 環境保護

4 Operating Practices 營運常規

D Implementation Plan

1 Implementation plan (Part 1)

2 SWOT Analysis (Part 1)

3 Evaluating Strategy (Part 1)

4 Measurement and Control (Part 1) 7

Business Management and Marketing Strategies

1[Think] - SWOT Analysis

2[Do] - Implementation plan

3[Check] - Evaluation measurement and Control

8

Business Management and Marketing Strategies

1[Think] - SWOT Analysis

2[Do] - Implementation plan

3[Check] - Evaluation measurement and Control

9

10

SWOT analysis

Analysis of an organizationrsquos

strengths weaknesses

opportunities amp threats in order

to identify a strategic niche that

the organization can exploit

Strengths (優勢)

bull

bull

Weaknesses (劣勢)

bull

bull

11

12

13

14

Strengths

-domestic market -high profitability and revenue -monetary assistance provided -skilled workforce -barriers of market entry -experienced business units

Weaknesses

-high investments in research and development

15

Opportunities

-growing economy -new acquisitions -new markets -venture capital -growth rates and profitability -new products and services -income level is at a constant increase

Threats

-increase in labor costs -cash flow -external business risks -government regulations -technological problems -increasing costs -price changes

Data on this page may have come in part or

entirely from one or more data providers We

are not responsible for any errors or

omissions on this page This website is for

information purposes only

bull Marketing and advertising capabilities

bull Strong customer connect through strong brand promotion

bull Brand awareness and reputationHigh TOMA (top of mind awareness)

bull Brand loyalty

bull Multi channel strategy by extending online sales

bull Strong and extensive distribution channels in Hong Kong Efficient distribution

bull Strategic location

16

Relevancy

bull Lack of marketing capability

bull Higher costs arising from training personnel

bull Lack of e-commerce

bull Lack of product breath and offerings at different price points

bull Low turnover of product

bull Limited stock

17

Relevancy

bull Brand image

bull Company image and social engagement

bull Mobile payments

bull Growth of fashion market

bull Global market penetration

bull Growing Asian market (good growing market to be in)

bull Online market (expand into internet)

18

Relevancy

bull Fluctuation in exchange rates

bull Market entry barriers

bull Design challenges

bull Global competitors

bull Local competitors

19

Relevancy

Business Management and Marketing Strategies

1[Think] - SWOT Analysis

2[Do] - Implementation plan

3[Check] - Evaluation measurement and Control

20

(c) Business plan

A business plan of $10 million for launching a promotional project to improve Bauhaus Grouprsquos operations in Hong Kong which should be supported by a marketing expenses budget and implementation details In order to evaluate the effectiveness of your recommendations you are required to analyse the projected impact on store locations sales and average spending per customer for the years ending 31 March 2017 and 2018

(25 marks ndash approximately 4 pages)

21

bull Inform

bull Persuade amp

bull Remind customers about the Group andor its products

22

You need to consider

bull The target market

bull The nature of the products

bull The stage of the productrsquos life cycle

bull Money available for the promotion

23

bull Question Bauhaus targets WHO with products as its signature categories

bull ldquoBauhaus is principally engaged in the design manufacture wholesale and

retail sales of apparel bags and sacs and accessories under its own brand names of TOUGH and SALAD as well as retail sales of apparel under other third party

brand names in the fashion industry Bauhausrsquos products as well as those sourced from the third party brand names are adopting a trendy amp casual line targeting young consumers with fashion consciousnessrdquo

(Barits Ho Chong Securities Co Ltd 2006)

24

25

bull Bauhaus manufactures and trades a wide range of apparels (服飾)) and accessories for consumers

bull Its products include jeans shirts denim clothes pants tops t-shirts footwear and other leather accessories

bull It also sells accessories including handbags wallets backpack clutches shoulder bags top handles tote bags and caps

bull The company has brand such as BAUHAUS TOUGH Jeansmith SALAD 8020 and SUPERDR

(GlobalData 2015)

26

Growth stage bull Sold a lot + To sell as much as possible

bull Competitors watch amp decide about joining in with a competitor product

bull Growth continues until too may competitors in the market (market saturation)

bull At the end of the growth stage profits starts to decline amp the Group has to spend more money on promotion to keep sales going

bull Spending money on promotion cuts into the Grouprsquos profit

bull ldquoPersuasive promotionrdquo is in place during this stage

27

Maturity stage bull Many competitors have joined ndash market is saturated

bull The only way to sell is to begin to lower the price amp profits decrease

bull It is difficult to tell the different between products since most have the same FAB ndash Features Advantages amp Benefits [ no obvious product differentiation]

bull ldquoPersuasive promotionrdquo becomes more important during this stage

bull The Group TV commercials (or promotion) almost begging the customers to still buy its products because the Group still makes it just as good

28

HK$10000000

10 million

29

Paid amp non personal mass

communication

30

bull Focus on information amp goodwill of the Group

bull Consumer advertising Rational versus emotional appeals

bull Focus on particular product(s) or brand(s)

bull Stimulate demand for specific brands

31

bull What do you want your ads to do

bull Who are you trying to reach [ Target customers]

bull What promotional message do you want to communicate

bull How much does each medium cost

32

Rate card 廣告收費價目表

33

TVB Prime time 1855-2355 (Mon to Sun)

34

Rate (30 sec)

Air time cost (30 sec)

No of spots

F7 $70500 141 (30 sec)

F15 $215640 46 (30 sec)

35

Run-of-page

(Mon-Thur)

Full page

4C

HK$306000

$10000000 306000 = 32 FP

36

Min booking (4 weeks)

HK$36000 X 4

= $144000

bull Sales promotion (促銷) demand-stimulating activity designed to supplement advertising o Coupons

o Premiums

o Contests

o Sweepstakes

o Specialty advertising ndash places the Grouprsquos name address amp advertising message on useful articles that are then distributed to target customers

37

bull Publicity (公眾信息) a non-paid form of advertising that uses mass communication to stimulate demand

o Structured news release to the media

o Coordinating personal communication with a group customers

38

bull Public relations (公共關係) a planned communication effort by the Group to contribute to generally favourable attitudes amp opinions toward the Group amp its products

o Supporting charitable projects

o Supplying volunteers or other resources

o Participating in community-service events

o Sponsorship

o Providing information to customers through newsletters

39

40

Promotional plan

marketing

expenses budget

and

implementation

details

41

Promotional plan

marketing

expenses budget

and

implementation

details

42

Promotional plan

marketing

expenses budget

and

implementation

details

Business Management and Marketing Strategies

1[Think] - SWOT Analysis

2[Do] - Implementation plan

3[Check] - Evaluation measurement and Control

43

(c) Business plan A business plan of $10 million for launching a promotional project to improve Bauhaus Grouprsquos operations in Hong Kong which should be supported by a marketing expenses budget and implementation details

In order to evaluate the effectiveness of your recommendations you are required to analyse the projected impact on store locations sales and average spending per customer for the years ending 31 March 2017 and 2018

(25 marks ndash approximately 4 pages)

44

bull Bauhaus started in 1991 on Nathan Road Tsim Sha Tsui as a contemporary fashion store bringing the best of international brands to young trend-setters in Hong Kong [28 stores]

45

46

bull Sales data before and after the promotion

bull How many sales are a result of those promotions

bull Timing of promotion [ Hedonic consumption]

bull Customersrsquo preferences

bull Change of average spending per customers [Increaseddecreased]

bull Competitorsrsquo promotional campaigns

47

bull The median monthly domestic household income for 2014 was HK$23500 (vs for 2013 HK$22400)

48

(The Information Services Department HKSAR April 2015)

Company Shares of Apparel Accessories Value (2011-2015)

(Euromonitor 2016)

49

30 companies

50

51

52

53

Strategy Formulation

Evaluation

Implementation and Execution

54

bull Barits Ho Chong Securities Co Ltd (2006) Company Update Bauhaus International Available at httpwwwmegaseccomhkUploadFile5CTaiwanListco0483HK20Bauhaus20Update2004JANpdf [15 October 2016]

bull Euromonitor International (June 2016)

bull GlobalData (2015) Bauhaus International (Holdings) Limited (483) - Financial and Strategic SWOT Analysis Review Available at httpstoreglobaldatacomcompany-reportsretailingbauhaus-international-holdings-limited-483-financial-and-strategic-swot-analysis-reviewWBWilvp97IU [15 October 2015]

bull Headline Daily rate card 2016 Available at httppaperhkheadlinecomhtmlRatecardpdf [5 December 2016]

bull The Information Services Department Hong Kong Special Administrative Region Government (April 2015) GovHK Website Hong Kong The Facts Available httpwwwgovhkenaboutabouthkfactsheetsdocspopulationpdf [30 October 2016]

bull JCDecaux Rate card 2016 Available at httpwwwjcdecauxcomhkmtr_packagehtml [5 Dec 2016]

bull Skypost Rate card 2016 Available at httpskypostulifestylecomhkresourcesadvertisementftlpdf [5 Dec 2016]

bull TVB Rate card 2016 Available at httpwwwtvbcomtvbsalesratecardratecardphpp=hd_jade [5 December 2016]

55

Business Management and Marketing Strategies

1[Think] - SWOT Analysis

2[Do] - Implementation plan

3[Check] - Evaluation measurement and Control

8

Business Management and Marketing Strategies

1[Think] - SWOT Analysis

2[Do] - Implementation plan

3[Check] - Evaluation measurement and Control

9

10

SWOT analysis

Analysis of an organizationrsquos

strengths weaknesses

opportunities amp threats in order

to identify a strategic niche that

the organization can exploit

Strengths (優勢)

bull

bull

Weaknesses (劣勢)

bull

bull

11

12

13

14

Strengths

-domestic market -high profitability and revenue -monetary assistance provided -skilled workforce -barriers of market entry -experienced business units

Weaknesses

-high investments in research and development

15

Opportunities

-growing economy -new acquisitions -new markets -venture capital -growth rates and profitability -new products and services -income level is at a constant increase

Threats

-increase in labor costs -cash flow -external business risks -government regulations -technological problems -increasing costs -price changes

Data on this page may have come in part or

entirely from one or more data providers We

are not responsible for any errors or

omissions on this page This website is for

information purposes only

bull Marketing and advertising capabilities

bull Strong customer connect through strong brand promotion

bull Brand awareness and reputationHigh TOMA (top of mind awareness)

bull Brand loyalty

bull Multi channel strategy by extending online sales

bull Strong and extensive distribution channels in Hong Kong Efficient distribution

bull Strategic location

16

Relevancy

bull Lack of marketing capability

bull Higher costs arising from training personnel

bull Lack of e-commerce

bull Lack of product breath and offerings at different price points

bull Low turnover of product

bull Limited stock

17

Relevancy

bull Brand image

bull Company image and social engagement

bull Mobile payments

bull Growth of fashion market

bull Global market penetration

bull Growing Asian market (good growing market to be in)

bull Online market (expand into internet)

18

Relevancy

bull Fluctuation in exchange rates

bull Market entry barriers

bull Design challenges

bull Global competitors

bull Local competitors

19

Relevancy

Business Management and Marketing Strategies

1[Think] - SWOT Analysis

2[Do] - Implementation plan

3[Check] - Evaluation measurement and Control

20

(c) Business plan

A business plan of $10 million for launching a promotional project to improve Bauhaus Grouprsquos operations in Hong Kong which should be supported by a marketing expenses budget and implementation details In order to evaluate the effectiveness of your recommendations you are required to analyse the projected impact on store locations sales and average spending per customer for the years ending 31 March 2017 and 2018

(25 marks ndash approximately 4 pages)

21

bull Inform

bull Persuade amp

bull Remind customers about the Group andor its products

22

You need to consider

bull The target market

bull The nature of the products

bull The stage of the productrsquos life cycle

bull Money available for the promotion

23

bull Question Bauhaus targets WHO with products as its signature categories

bull ldquoBauhaus is principally engaged in the design manufacture wholesale and

retail sales of apparel bags and sacs and accessories under its own brand names of TOUGH and SALAD as well as retail sales of apparel under other third party

brand names in the fashion industry Bauhausrsquos products as well as those sourced from the third party brand names are adopting a trendy amp casual line targeting young consumers with fashion consciousnessrdquo

(Barits Ho Chong Securities Co Ltd 2006)

24

25

bull Bauhaus manufactures and trades a wide range of apparels (服飾)) and accessories for consumers

bull Its products include jeans shirts denim clothes pants tops t-shirts footwear and other leather accessories

bull It also sells accessories including handbags wallets backpack clutches shoulder bags top handles tote bags and caps

bull The company has brand such as BAUHAUS TOUGH Jeansmith SALAD 8020 and SUPERDR

(GlobalData 2015)

26

Growth stage bull Sold a lot + To sell as much as possible

bull Competitors watch amp decide about joining in with a competitor product

bull Growth continues until too may competitors in the market (market saturation)

bull At the end of the growth stage profits starts to decline amp the Group has to spend more money on promotion to keep sales going

bull Spending money on promotion cuts into the Grouprsquos profit

bull ldquoPersuasive promotionrdquo is in place during this stage

27

Maturity stage bull Many competitors have joined ndash market is saturated

bull The only way to sell is to begin to lower the price amp profits decrease

bull It is difficult to tell the different between products since most have the same FAB ndash Features Advantages amp Benefits [ no obvious product differentiation]

bull ldquoPersuasive promotionrdquo becomes more important during this stage

bull The Group TV commercials (or promotion) almost begging the customers to still buy its products because the Group still makes it just as good

28

HK$10000000

10 million

29

Paid amp non personal mass

communication

30

bull Focus on information amp goodwill of the Group

bull Consumer advertising Rational versus emotional appeals

bull Focus on particular product(s) or brand(s)

bull Stimulate demand for specific brands

31

bull What do you want your ads to do

bull Who are you trying to reach [ Target customers]

bull What promotional message do you want to communicate

bull How much does each medium cost

32

Rate card 廣告收費價目表

33

TVB Prime time 1855-2355 (Mon to Sun)

34

Rate (30 sec)

Air time cost (30 sec)

No of spots

F7 $70500 141 (30 sec)

F15 $215640 46 (30 sec)

35

Run-of-page

(Mon-Thur)

Full page

4C

HK$306000

$10000000 306000 = 32 FP

36

Min booking (4 weeks)

HK$36000 X 4

= $144000

bull Sales promotion (促銷) demand-stimulating activity designed to supplement advertising o Coupons

o Premiums

o Contests

o Sweepstakes

o Specialty advertising ndash places the Grouprsquos name address amp advertising message on useful articles that are then distributed to target customers

37

bull Publicity (公眾信息) a non-paid form of advertising that uses mass communication to stimulate demand

o Structured news release to the media

o Coordinating personal communication with a group customers

38

bull Public relations (公共關係) a planned communication effort by the Group to contribute to generally favourable attitudes amp opinions toward the Group amp its products

o Supporting charitable projects

o Supplying volunteers or other resources

o Participating in community-service events

o Sponsorship

o Providing information to customers through newsletters

39

40

Promotional plan

marketing

expenses budget

and

implementation

details

41

Promotional plan

marketing

expenses budget

and

implementation

details

42

Promotional plan

marketing

expenses budget

and

implementation

details

Business Management and Marketing Strategies

1[Think] - SWOT Analysis

2[Do] - Implementation plan

3[Check] - Evaluation measurement and Control

43

(c) Business plan A business plan of $10 million for launching a promotional project to improve Bauhaus Grouprsquos operations in Hong Kong which should be supported by a marketing expenses budget and implementation details

In order to evaluate the effectiveness of your recommendations you are required to analyse the projected impact on store locations sales and average spending per customer for the years ending 31 March 2017 and 2018

(25 marks ndash approximately 4 pages)

44

bull Bauhaus started in 1991 on Nathan Road Tsim Sha Tsui as a contemporary fashion store bringing the best of international brands to young trend-setters in Hong Kong [28 stores]

45

46

bull Sales data before and after the promotion

bull How many sales are a result of those promotions

bull Timing of promotion [ Hedonic consumption]

bull Customersrsquo preferences

bull Change of average spending per customers [Increaseddecreased]

bull Competitorsrsquo promotional campaigns

47

bull The median monthly domestic household income for 2014 was HK$23500 (vs for 2013 HK$22400)

48

(The Information Services Department HKSAR April 2015)

Company Shares of Apparel Accessories Value (2011-2015)

(Euromonitor 2016)

49

30 companies

50

51

52

53

Strategy Formulation

Evaluation

Implementation and Execution

54

bull Barits Ho Chong Securities Co Ltd (2006) Company Update Bauhaus International Available at httpwwwmegaseccomhkUploadFile5CTaiwanListco0483HK20Bauhaus20Update2004JANpdf [15 October 2016]

bull Euromonitor International (June 2016)

bull GlobalData (2015) Bauhaus International (Holdings) Limited (483) - Financial and Strategic SWOT Analysis Review Available at httpstoreglobaldatacomcompany-reportsretailingbauhaus-international-holdings-limited-483-financial-and-strategic-swot-analysis-reviewWBWilvp97IU [15 October 2015]

bull Headline Daily rate card 2016 Available at httppaperhkheadlinecomhtmlRatecardpdf [5 December 2016]

bull The Information Services Department Hong Kong Special Administrative Region Government (April 2015) GovHK Website Hong Kong The Facts Available httpwwwgovhkenaboutabouthkfactsheetsdocspopulationpdf [30 October 2016]

bull JCDecaux Rate card 2016 Available at httpwwwjcdecauxcomhkmtr_packagehtml [5 Dec 2016]

bull Skypost Rate card 2016 Available at httpskypostulifestylecomhkresourcesadvertisementftlpdf [5 Dec 2016]

bull TVB Rate card 2016 Available at httpwwwtvbcomtvbsalesratecardratecardphpp=hd_jade [5 December 2016]

55

Business Management and Marketing Strategies

1[Think] - SWOT Analysis

2[Do] - Implementation plan

3[Check] - Evaluation measurement and Control

9

10

SWOT analysis

Analysis of an organizationrsquos

strengths weaknesses

opportunities amp threats in order

to identify a strategic niche that

the organization can exploit

Strengths (優勢)

bull

bull

Weaknesses (劣勢)

bull

bull

11

12

13

14

Strengths

-domestic market -high profitability and revenue -monetary assistance provided -skilled workforce -barriers of market entry -experienced business units

Weaknesses

-high investments in research and development

15

Opportunities

-growing economy -new acquisitions -new markets -venture capital -growth rates and profitability -new products and services -income level is at a constant increase

Threats

-increase in labor costs -cash flow -external business risks -government regulations -technological problems -increasing costs -price changes

Data on this page may have come in part or

entirely from one or more data providers We

are not responsible for any errors or

omissions on this page This website is for

information purposes only

bull Marketing and advertising capabilities

bull Strong customer connect through strong brand promotion

bull Brand awareness and reputationHigh TOMA (top of mind awareness)

bull Brand loyalty

bull Multi channel strategy by extending online sales

bull Strong and extensive distribution channels in Hong Kong Efficient distribution

bull Strategic location

16

Relevancy

bull Lack of marketing capability

bull Higher costs arising from training personnel

bull Lack of e-commerce

bull Lack of product breath and offerings at different price points

bull Low turnover of product

bull Limited stock

17

Relevancy

bull Brand image

bull Company image and social engagement

bull Mobile payments

bull Growth of fashion market

bull Global market penetration

bull Growing Asian market (good growing market to be in)

bull Online market (expand into internet)

18

Relevancy

bull Fluctuation in exchange rates

bull Market entry barriers

bull Design challenges

bull Global competitors

bull Local competitors

19

Relevancy

Business Management and Marketing Strategies

1[Think] - SWOT Analysis

2[Do] - Implementation plan

3[Check] - Evaluation measurement and Control

20

(c) Business plan

A business plan of $10 million for launching a promotional project to improve Bauhaus Grouprsquos operations in Hong Kong which should be supported by a marketing expenses budget and implementation details In order to evaluate the effectiveness of your recommendations you are required to analyse the projected impact on store locations sales and average spending per customer for the years ending 31 March 2017 and 2018

(25 marks ndash approximately 4 pages)

21

bull Inform

bull Persuade amp

bull Remind customers about the Group andor its products

22

You need to consider

bull The target market

bull The nature of the products

bull The stage of the productrsquos life cycle

bull Money available for the promotion

23

bull Question Bauhaus targets WHO with products as its signature categories

bull ldquoBauhaus is principally engaged in the design manufacture wholesale and

retail sales of apparel bags and sacs and accessories under its own brand names of TOUGH and SALAD as well as retail sales of apparel under other third party

brand names in the fashion industry Bauhausrsquos products as well as those sourced from the third party brand names are adopting a trendy amp casual line targeting young consumers with fashion consciousnessrdquo

(Barits Ho Chong Securities Co Ltd 2006)

24

25

bull Bauhaus manufactures and trades a wide range of apparels (服飾)) and accessories for consumers

bull Its products include jeans shirts denim clothes pants tops t-shirts footwear and other leather accessories

bull It also sells accessories including handbags wallets backpack clutches shoulder bags top handles tote bags and caps

bull The company has brand such as BAUHAUS TOUGH Jeansmith SALAD 8020 and SUPERDR

(GlobalData 2015)

26

Growth stage bull Sold a lot + To sell as much as possible

bull Competitors watch amp decide about joining in with a competitor product

bull Growth continues until too may competitors in the market (market saturation)

bull At the end of the growth stage profits starts to decline amp the Group has to spend more money on promotion to keep sales going

bull Spending money on promotion cuts into the Grouprsquos profit

bull ldquoPersuasive promotionrdquo is in place during this stage

27

Maturity stage bull Many competitors have joined ndash market is saturated

bull The only way to sell is to begin to lower the price amp profits decrease

bull It is difficult to tell the different between products since most have the same FAB ndash Features Advantages amp Benefits [ no obvious product differentiation]

bull ldquoPersuasive promotionrdquo becomes more important during this stage

bull The Group TV commercials (or promotion) almost begging the customers to still buy its products because the Group still makes it just as good

28

HK$10000000

10 million

29

Paid amp non personal mass

communication

30

bull Focus on information amp goodwill of the Group

bull Consumer advertising Rational versus emotional appeals

bull Focus on particular product(s) or brand(s)

bull Stimulate demand for specific brands

31

bull What do you want your ads to do

bull Who are you trying to reach [ Target customers]

bull What promotional message do you want to communicate

bull How much does each medium cost

32

Rate card 廣告收費價目表

33

TVB Prime time 1855-2355 (Mon to Sun)

34

Rate (30 sec)

Air time cost (30 sec)

No of spots

F7 $70500 141 (30 sec)

F15 $215640 46 (30 sec)

35

Run-of-page

(Mon-Thur)

Full page

4C

HK$306000

$10000000 306000 = 32 FP

36

Min booking (4 weeks)

HK$36000 X 4

= $144000

bull Sales promotion (促銷) demand-stimulating activity designed to supplement advertising o Coupons

o Premiums

o Contests

o Sweepstakes

o Specialty advertising ndash places the Grouprsquos name address amp advertising message on useful articles that are then distributed to target customers

37

bull Publicity (公眾信息) a non-paid form of advertising that uses mass communication to stimulate demand

o Structured news release to the media

o Coordinating personal communication with a group customers

38

bull Public relations (公共關係) a planned communication effort by the Group to contribute to generally favourable attitudes amp opinions toward the Group amp its products

o Supporting charitable projects

o Supplying volunteers or other resources

o Participating in community-service events

o Sponsorship

o Providing information to customers through newsletters

39

40

Promotional plan

marketing

expenses budget

and

implementation

details

41

Promotional plan

marketing

expenses budget

and

implementation

details

42

Promotional plan

marketing

expenses budget

and

implementation

details

Business Management and Marketing Strategies

1[Think] - SWOT Analysis

2[Do] - Implementation plan

3[Check] - Evaluation measurement and Control

43

(c) Business plan A business plan of $10 million for launching a promotional project to improve Bauhaus Grouprsquos operations in Hong Kong which should be supported by a marketing expenses budget and implementation details

In order to evaluate the effectiveness of your recommendations you are required to analyse the projected impact on store locations sales and average spending per customer for the years ending 31 March 2017 and 2018

(25 marks ndash approximately 4 pages)

44

bull Bauhaus started in 1991 on Nathan Road Tsim Sha Tsui as a contemporary fashion store bringing the best of international brands to young trend-setters in Hong Kong [28 stores]

45

46

bull Sales data before and after the promotion

bull How many sales are a result of those promotions

bull Timing of promotion [ Hedonic consumption]

bull Customersrsquo preferences

bull Change of average spending per customers [Increaseddecreased]

bull Competitorsrsquo promotional campaigns

47

bull The median monthly domestic household income for 2014 was HK$23500 (vs for 2013 HK$22400)

48

(The Information Services Department HKSAR April 2015)

Company Shares of Apparel Accessories Value (2011-2015)

(Euromonitor 2016)

49

30 companies

50

51

52

53

Strategy Formulation

Evaluation

Implementation and Execution

54

bull Barits Ho Chong Securities Co Ltd (2006) Company Update Bauhaus International Available at httpwwwmegaseccomhkUploadFile5CTaiwanListco0483HK20Bauhaus20Update2004JANpdf [15 October 2016]

bull Euromonitor International (June 2016)

bull GlobalData (2015) Bauhaus International (Holdings) Limited (483) - Financial and Strategic SWOT Analysis Review Available at httpstoreglobaldatacomcompany-reportsretailingbauhaus-international-holdings-limited-483-financial-and-strategic-swot-analysis-reviewWBWilvp97IU [15 October 2015]

bull Headline Daily rate card 2016 Available at httppaperhkheadlinecomhtmlRatecardpdf [5 December 2016]

bull The Information Services Department Hong Kong Special Administrative Region Government (April 2015) GovHK Website Hong Kong The Facts Available httpwwwgovhkenaboutabouthkfactsheetsdocspopulationpdf [30 October 2016]

bull JCDecaux Rate card 2016 Available at httpwwwjcdecauxcomhkmtr_packagehtml [5 Dec 2016]

bull Skypost Rate card 2016 Available at httpskypostulifestylecomhkresourcesadvertisementftlpdf [5 Dec 2016]

bull TVB Rate card 2016 Available at httpwwwtvbcomtvbsalesratecardratecardphpp=hd_jade [5 December 2016]

55

10

SWOT analysis

Analysis of an organizationrsquos

strengths weaknesses

opportunities amp threats in order

to identify a strategic niche that

the organization can exploit

Strengths (優勢)

bull

bull

Weaknesses (劣勢)

bull

bull

11

12

13

14

Strengths

-domestic market -high profitability and revenue -monetary assistance provided -skilled workforce -barriers of market entry -experienced business units

Weaknesses

-high investments in research and development

15

Opportunities

-growing economy -new acquisitions -new markets -venture capital -growth rates and profitability -new products and services -income level is at a constant increase

Threats

-increase in labor costs -cash flow -external business risks -government regulations -technological problems -increasing costs -price changes

Data on this page may have come in part or

entirely from one or more data providers We

are not responsible for any errors or

omissions on this page This website is for

information purposes only

bull Marketing and advertising capabilities

bull Strong customer connect through strong brand promotion

bull Brand awareness and reputationHigh TOMA (top of mind awareness)

bull Brand loyalty

bull Multi channel strategy by extending online sales

bull Strong and extensive distribution channels in Hong Kong Efficient distribution

bull Strategic location

16

Relevancy

bull Lack of marketing capability

bull Higher costs arising from training personnel

bull Lack of e-commerce

bull Lack of product breath and offerings at different price points

bull Low turnover of product

bull Limited stock

17

Relevancy

bull Brand image

bull Company image and social engagement

bull Mobile payments

bull Growth of fashion market

bull Global market penetration

bull Growing Asian market (good growing market to be in)

bull Online market (expand into internet)

18

Relevancy

bull Fluctuation in exchange rates

bull Market entry barriers

bull Design challenges

bull Global competitors

bull Local competitors

19

Relevancy

Business Management and Marketing Strategies

1[Think] - SWOT Analysis

2[Do] - Implementation plan

3[Check] - Evaluation measurement and Control

20

(c) Business plan

A business plan of $10 million for launching a promotional project to improve Bauhaus Grouprsquos operations in Hong Kong which should be supported by a marketing expenses budget and implementation details In order to evaluate the effectiveness of your recommendations you are required to analyse the projected impact on store locations sales and average spending per customer for the years ending 31 March 2017 and 2018

(25 marks ndash approximately 4 pages)

21

bull Inform

bull Persuade amp

bull Remind customers about the Group andor its products

22

You need to consider

bull The target market

bull The nature of the products

bull The stage of the productrsquos life cycle

bull Money available for the promotion

23

bull Question Bauhaus targets WHO with products as its signature categories

bull ldquoBauhaus is principally engaged in the design manufacture wholesale and

retail sales of apparel bags and sacs and accessories under its own brand names of TOUGH and SALAD as well as retail sales of apparel under other third party

brand names in the fashion industry Bauhausrsquos products as well as those sourced from the third party brand names are adopting a trendy amp casual line targeting young consumers with fashion consciousnessrdquo

(Barits Ho Chong Securities Co Ltd 2006)

24

25

bull Bauhaus manufactures and trades a wide range of apparels (服飾)) and accessories for consumers

bull Its products include jeans shirts denim clothes pants tops t-shirts footwear and other leather accessories

bull It also sells accessories including handbags wallets backpack clutches shoulder bags top handles tote bags and caps

bull The company has brand such as BAUHAUS TOUGH Jeansmith SALAD 8020 and SUPERDR

(GlobalData 2015)

26

Growth stage bull Sold a lot + To sell as much as possible

bull Competitors watch amp decide about joining in with a competitor product

bull Growth continues until too may competitors in the market (market saturation)

bull At the end of the growth stage profits starts to decline amp the Group has to spend more money on promotion to keep sales going

bull Spending money on promotion cuts into the Grouprsquos profit

bull ldquoPersuasive promotionrdquo is in place during this stage

27

Maturity stage bull Many competitors have joined ndash market is saturated

bull The only way to sell is to begin to lower the price amp profits decrease

bull It is difficult to tell the different between products since most have the same FAB ndash Features Advantages amp Benefits [ no obvious product differentiation]

bull ldquoPersuasive promotionrdquo becomes more important during this stage

bull The Group TV commercials (or promotion) almost begging the customers to still buy its products because the Group still makes it just as good

28

HK$10000000

10 million

29

Paid amp non personal mass

communication

30

bull Focus on information amp goodwill of the Group

bull Consumer advertising Rational versus emotional appeals

bull Focus on particular product(s) or brand(s)

bull Stimulate demand for specific brands

31

bull What do you want your ads to do

bull Who are you trying to reach [ Target customers]

bull What promotional message do you want to communicate

bull How much does each medium cost

32

Rate card 廣告收費價目表

33

TVB Prime time 1855-2355 (Mon to Sun)

34

Rate (30 sec)

Air time cost (30 sec)

No of spots

F7 $70500 141 (30 sec)

F15 $215640 46 (30 sec)

35

Run-of-page

(Mon-Thur)

Full page

4C

HK$306000

$10000000 306000 = 32 FP

36

Min booking (4 weeks)

HK$36000 X 4

= $144000

bull Sales promotion (促銷) demand-stimulating activity designed to supplement advertising o Coupons

o Premiums

o Contests

o Sweepstakes

o Specialty advertising ndash places the Grouprsquos name address amp advertising message on useful articles that are then distributed to target customers

37

bull Publicity (公眾信息) a non-paid form of advertising that uses mass communication to stimulate demand

o Structured news release to the media

o Coordinating personal communication with a group customers

38

bull Public relations (公共關係) a planned communication effort by the Group to contribute to generally favourable attitudes amp opinions toward the Group amp its products

o Supporting charitable projects

o Supplying volunteers or other resources

o Participating in community-service events

o Sponsorship

o Providing information to customers through newsletters

39

40

Promotional plan

marketing

expenses budget

and

implementation

details

41

Promotional plan

marketing

expenses budget

and

implementation

details

42

Promotional plan

marketing

expenses budget

and

implementation

details

Business Management and Marketing Strategies

1[Think] - SWOT Analysis

2[Do] - Implementation plan

3[Check] - Evaluation measurement and Control

43

(c) Business plan A business plan of $10 million for launching a promotional project to improve Bauhaus Grouprsquos operations in Hong Kong which should be supported by a marketing expenses budget and implementation details

In order to evaluate the effectiveness of your recommendations you are required to analyse the projected impact on store locations sales and average spending per customer for the years ending 31 March 2017 and 2018

(25 marks ndash approximately 4 pages)

44

bull Bauhaus started in 1991 on Nathan Road Tsim Sha Tsui as a contemporary fashion store bringing the best of international brands to young trend-setters in Hong Kong [28 stores]

45

46

bull Sales data before and after the promotion

bull How many sales are a result of those promotions

bull Timing of promotion [ Hedonic consumption]

bull Customersrsquo preferences

bull Change of average spending per customers [Increaseddecreased]

bull Competitorsrsquo promotional campaigns

47

bull The median monthly domestic household income for 2014 was HK$23500 (vs for 2013 HK$22400)

48

(The Information Services Department HKSAR April 2015)

Company Shares of Apparel Accessories Value (2011-2015)

(Euromonitor 2016)

49

30 companies

50

51

52

53

Strategy Formulation

Evaluation

Implementation and Execution

54

bull Barits Ho Chong Securities Co Ltd (2006) Company Update Bauhaus International Available at httpwwwmegaseccomhkUploadFile5CTaiwanListco0483HK20Bauhaus20Update2004JANpdf [15 October 2016]

bull Euromonitor International (June 2016)

bull GlobalData (2015) Bauhaus International (Holdings) Limited (483) - Financial and Strategic SWOT Analysis Review Available at httpstoreglobaldatacomcompany-reportsretailingbauhaus-international-holdings-limited-483-financial-and-strategic-swot-analysis-reviewWBWilvp97IU [15 October 2015]

bull Headline Daily rate card 2016 Available at httppaperhkheadlinecomhtmlRatecardpdf [5 December 2016]

bull The Information Services Department Hong Kong Special Administrative Region Government (April 2015) GovHK Website Hong Kong The Facts Available httpwwwgovhkenaboutabouthkfactsheetsdocspopulationpdf [30 October 2016]

bull JCDecaux Rate card 2016 Available at httpwwwjcdecauxcomhkmtr_packagehtml [5 Dec 2016]

bull Skypost Rate card 2016 Available at httpskypostulifestylecomhkresourcesadvertisementftlpdf [5 Dec 2016]

bull TVB Rate card 2016 Available at httpwwwtvbcomtvbsalesratecardratecardphpp=hd_jade [5 December 2016]

55

Strengths (優勢)

bull

bull

Weaknesses (劣勢)

bull

bull

11

12

13

14

Strengths

-domestic market -high profitability and revenue -monetary assistance provided -skilled workforce -barriers of market entry -experienced business units

Weaknesses

-high investments in research and development

15

Opportunities

-growing economy -new acquisitions -new markets -venture capital -growth rates and profitability -new products and services -income level is at a constant increase

Threats

-increase in labor costs -cash flow -external business risks -government regulations -technological problems -increasing costs -price changes

Data on this page may have come in part or

entirely from one or more data providers We

are not responsible for any errors or

omissions on this page This website is for

information purposes only

bull Marketing and advertising capabilities

bull Strong customer connect through strong brand promotion

bull Brand awareness and reputationHigh TOMA (top of mind awareness)

bull Brand loyalty

bull Multi channel strategy by extending online sales

bull Strong and extensive distribution channels in Hong Kong Efficient distribution

bull Strategic location

16

Relevancy

bull Lack of marketing capability

bull Higher costs arising from training personnel

bull Lack of e-commerce

bull Lack of product breath and offerings at different price points

bull Low turnover of product

bull Limited stock

17

Relevancy

bull Brand image

bull Company image and social engagement

bull Mobile payments

bull Growth of fashion market

bull Global market penetration

bull Growing Asian market (good growing market to be in)

bull Online market (expand into internet)

18

Relevancy

bull Fluctuation in exchange rates

bull Market entry barriers

bull Design challenges

bull Global competitors

bull Local competitors

19

Relevancy

Business Management and Marketing Strategies

1[Think] - SWOT Analysis

2[Do] - Implementation plan

3[Check] - Evaluation measurement and Control

20

(c) Business plan

A business plan of $10 million for launching a promotional project to improve Bauhaus Grouprsquos operations in Hong Kong which should be supported by a marketing expenses budget and implementation details In order to evaluate the effectiveness of your recommendations you are required to analyse the projected impact on store locations sales and average spending per customer for the years ending 31 March 2017 and 2018

(25 marks ndash approximately 4 pages)

21

bull Inform

bull Persuade amp

bull Remind customers about the Group andor its products

22

You need to consider

bull The target market

bull The nature of the products

bull The stage of the productrsquos life cycle

bull Money available for the promotion

23

bull Question Bauhaus targets WHO with products as its signature categories

bull ldquoBauhaus is principally engaged in the design manufacture wholesale and

retail sales of apparel bags and sacs and accessories under its own brand names of TOUGH and SALAD as well as retail sales of apparel under other third party

brand names in the fashion industry Bauhausrsquos products as well as those sourced from the third party brand names are adopting a trendy amp casual line targeting young consumers with fashion consciousnessrdquo

(Barits Ho Chong Securities Co Ltd 2006)

24

25

bull Bauhaus manufactures and trades a wide range of apparels (服飾)) and accessories for consumers

bull Its products include jeans shirts denim clothes pants tops t-shirts footwear and other leather accessories

bull It also sells accessories including handbags wallets backpack clutches shoulder bags top handles tote bags and caps

bull The company has brand such as BAUHAUS TOUGH Jeansmith SALAD 8020 and SUPERDR

(GlobalData 2015)

26

Growth stage bull Sold a lot + To sell as much as possible

bull Competitors watch amp decide about joining in with a competitor product

bull Growth continues until too may competitors in the market (market saturation)

bull At the end of the growth stage profits starts to decline amp the Group has to spend more money on promotion to keep sales going

bull Spending money on promotion cuts into the Grouprsquos profit

bull ldquoPersuasive promotionrdquo is in place during this stage

27

Maturity stage bull Many competitors have joined ndash market is saturated

bull The only way to sell is to begin to lower the price amp profits decrease

bull It is difficult to tell the different between products since most have the same FAB ndash Features Advantages amp Benefits [ no obvious product differentiation]

bull ldquoPersuasive promotionrdquo becomes more important during this stage

bull The Group TV commercials (or promotion) almost begging the customers to still buy its products because the Group still makes it just as good

28

HK$10000000

10 million

29

Paid amp non personal mass

communication

30

bull Focus on information amp goodwill of the Group

bull Consumer advertising Rational versus emotional appeals

bull Focus on particular product(s) or brand(s)

bull Stimulate demand for specific brands

31

bull What do you want your ads to do

bull Who are you trying to reach [ Target customers]

bull What promotional message do you want to communicate

bull How much does each medium cost

32

Rate card 廣告收費價目表

33

TVB Prime time 1855-2355 (Mon to Sun)

34

Rate (30 sec)

Air time cost (30 sec)

No of spots

F7 $70500 141 (30 sec)

F15 $215640 46 (30 sec)

35

Run-of-page

(Mon-Thur)

Full page

4C

HK$306000

$10000000 306000 = 32 FP

36

Min booking (4 weeks)

HK$36000 X 4

= $144000

bull Sales promotion (促銷) demand-stimulating activity designed to supplement advertising o Coupons

o Premiums

o Contests

o Sweepstakes

o Specialty advertising ndash places the Grouprsquos name address amp advertising message on useful articles that are then distributed to target customers

37

bull Publicity (公眾信息) a non-paid form of advertising that uses mass communication to stimulate demand

o Structured news release to the media

o Coordinating personal communication with a group customers

38

bull Public relations (公共關係) a planned communication effort by the Group to contribute to generally favourable attitudes amp opinions toward the Group amp its products

o Supporting charitable projects

o Supplying volunteers or other resources

o Participating in community-service events

o Sponsorship

o Providing information to customers through newsletters

39

40

Promotional plan

marketing

expenses budget

and

implementation

details

41

Promotional plan

marketing

expenses budget

and

implementation

details

42

Promotional plan

marketing

expenses budget

and

implementation

details

Business Management and Marketing Strategies

1[Think] - SWOT Analysis

2[Do] - Implementation plan

3[Check] - Evaluation measurement and Control

43

(c) Business plan A business plan of $10 million for launching a promotional project to improve Bauhaus Grouprsquos operations in Hong Kong which should be supported by a marketing expenses budget and implementation details

In order to evaluate the effectiveness of your recommendations you are required to analyse the projected impact on store locations sales and average spending per customer for the years ending 31 March 2017 and 2018

(25 marks ndash approximately 4 pages)

44

bull Bauhaus started in 1991 on Nathan Road Tsim Sha Tsui as a contemporary fashion store bringing the best of international brands to young trend-setters in Hong Kong [28 stores]

45

46

bull Sales data before and after the promotion

bull How many sales are a result of those promotions

bull Timing of promotion [ Hedonic consumption]

bull Customersrsquo preferences

bull Change of average spending per customers [Increaseddecreased]

bull Competitorsrsquo promotional campaigns

47

bull The median monthly domestic household income for 2014 was HK$23500 (vs for 2013 HK$22400)

48

(The Information Services Department HKSAR April 2015)

Company Shares of Apparel Accessories Value (2011-2015)

(Euromonitor 2016)

49

30 companies

50

51

52

53

Strategy Formulation

Evaluation

Implementation and Execution

54

bull Barits Ho Chong Securities Co Ltd (2006) Company Update Bauhaus International Available at httpwwwmegaseccomhkUploadFile5CTaiwanListco0483HK20Bauhaus20Update2004JANpdf [15 October 2016]

bull Euromonitor International (June 2016)

bull GlobalData (2015) Bauhaus International (Holdings) Limited (483) - Financial and Strategic SWOT Analysis Review Available at httpstoreglobaldatacomcompany-reportsretailingbauhaus-international-holdings-limited-483-financial-and-strategic-swot-analysis-reviewWBWilvp97IU [15 October 2015]

bull Headline Daily rate card 2016 Available at httppaperhkheadlinecomhtmlRatecardpdf [5 December 2016]

bull The Information Services Department Hong Kong Special Administrative Region Government (April 2015) GovHK Website Hong Kong The Facts Available httpwwwgovhkenaboutabouthkfactsheetsdocspopulationpdf [30 October 2016]

bull JCDecaux Rate card 2016 Available at httpwwwjcdecauxcomhkmtr_packagehtml [5 Dec 2016]

bull Skypost Rate card 2016 Available at httpskypostulifestylecomhkresourcesadvertisementftlpdf [5 Dec 2016]

bull TVB Rate card 2016 Available at httpwwwtvbcomtvbsalesratecardratecardphpp=hd_jade [5 December 2016]

55

12

13

14

Strengths

-domestic market -high profitability and revenue -monetary assistance provided -skilled workforce -barriers of market entry -experienced business units

Weaknesses

-high investments in research and development

15

Opportunities

-growing economy -new acquisitions -new markets -venture capital -growth rates and profitability -new products and services -income level is at a constant increase

Threats

-increase in labor costs -cash flow -external business risks -government regulations -technological problems -increasing costs -price changes

Data on this page may have come in part or

entirely from one or more data providers We

are not responsible for any errors or

omissions on this page This website is for

information purposes only

bull Marketing and advertising capabilities

bull Strong customer connect through strong brand promotion

bull Brand awareness and reputationHigh TOMA (top of mind awareness)

bull Brand loyalty

bull Multi channel strategy by extending online sales

bull Strong and extensive distribution channels in Hong Kong Efficient distribution

bull Strategic location

16

Relevancy

bull Lack of marketing capability

bull Higher costs arising from training personnel

bull Lack of e-commerce

bull Lack of product breath and offerings at different price points

bull Low turnover of product

bull Limited stock

17

Relevancy

bull Brand image

bull Company image and social engagement

bull Mobile payments

bull Growth of fashion market

bull Global market penetration

bull Growing Asian market (good growing market to be in)

bull Online market (expand into internet)

18

Relevancy

bull Fluctuation in exchange rates

bull Market entry barriers

bull Design challenges

bull Global competitors

bull Local competitors

19

Relevancy

Business Management and Marketing Strategies

1[Think] - SWOT Analysis

2[Do] - Implementation plan

3[Check] - Evaluation measurement and Control

20

(c) Business plan

A business plan of $10 million for launching a promotional project to improve Bauhaus Grouprsquos operations in Hong Kong which should be supported by a marketing expenses budget and implementation details In order to evaluate the effectiveness of your recommendations you are required to analyse the projected impact on store locations sales and average spending per customer for the years ending 31 March 2017 and 2018

(25 marks ndash approximately 4 pages)

21

bull Inform

bull Persuade amp

bull Remind customers about the Group andor its products

22

You need to consider

bull The target market

bull The nature of the products

bull The stage of the productrsquos life cycle

bull Money available for the promotion

23

bull Question Bauhaus targets WHO with products as its signature categories

bull ldquoBauhaus is principally engaged in the design manufacture wholesale and

retail sales of apparel bags and sacs and accessories under its own brand names of TOUGH and SALAD as well as retail sales of apparel under other third party

brand names in the fashion industry Bauhausrsquos products as well as those sourced from the third party brand names are adopting a trendy amp casual line targeting young consumers with fashion consciousnessrdquo

(Barits Ho Chong Securities Co Ltd 2006)

24

25

bull Bauhaus manufactures and trades a wide range of apparels (服飾)) and accessories for consumers

bull Its products include jeans shirts denim clothes pants tops t-shirts footwear and other leather accessories

bull It also sells accessories including handbags wallets backpack clutches shoulder bags top handles tote bags and caps

bull The company has brand such as BAUHAUS TOUGH Jeansmith SALAD 8020 and SUPERDR

(GlobalData 2015)

26

Growth stage bull Sold a lot + To sell as much as possible

bull Competitors watch amp decide about joining in with a competitor product

bull Growth continues until too may competitors in the market (market saturation)

bull At the end of the growth stage profits starts to decline amp the Group has to spend more money on promotion to keep sales going

bull Spending money on promotion cuts into the Grouprsquos profit

bull ldquoPersuasive promotionrdquo is in place during this stage

27

Maturity stage bull Many competitors have joined ndash market is saturated

bull The only way to sell is to begin to lower the price amp profits decrease

bull It is difficult to tell the different between products since most have the same FAB ndash Features Advantages amp Benefits [ no obvious product differentiation]

bull ldquoPersuasive promotionrdquo becomes more important during this stage

bull The Group TV commercials (or promotion) almost begging the customers to still buy its products because the Group still makes it just as good

28

HK$10000000

10 million

29

Paid amp non personal mass

communication

30

bull Focus on information amp goodwill of the Group

bull Consumer advertising Rational versus emotional appeals

bull Focus on particular product(s) or brand(s)

bull Stimulate demand for specific brands

31

bull What do you want your ads to do

bull Who are you trying to reach [ Target customers]

bull What promotional message do you want to communicate

bull How much does each medium cost

32

Rate card 廣告收費價目表

33

TVB Prime time 1855-2355 (Mon to Sun)

34

Rate (30 sec)

Air time cost (30 sec)

No of spots

F7 $70500 141 (30 sec)

F15 $215640 46 (30 sec)

35

Run-of-page

(Mon-Thur)

Full page

4C

HK$306000

$10000000 306000 = 32 FP

36

Min booking (4 weeks)

HK$36000 X 4

= $144000

bull Sales promotion (促銷) demand-stimulating activity designed to supplement advertising o Coupons

o Premiums

o Contests

o Sweepstakes

o Specialty advertising ndash places the Grouprsquos name address amp advertising message on useful articles that are then distributed to target customers

37

bull Publicity (公眾信息) a non-paid form of advertising that uses mass communication to stimulate demand

o Structured news release to the media

o Coordinating personal communication with a group customers

38

bull Public relations (公共關係) a planned communication effort by the Group to contribute to generally favourable attitudes amp opinions toward the Group amp its products

o Supporting charitable projects

o Supplying volunteers or other resources

o Participating in community-service events

o Sponsorship

o Providing information to customers through newsletters

39

40

Promotional plan

marketing

expenses budget

and

implementation

details

41

Promotional plan

marketing

expenses budget

and

implementation

details

42

Promotional plan

marketing

expenses budget

and

implementation

details

Business Management and Marketing Strategies

1[Think] - SWOT Analysis

2[Do] - Implementation plan

3[Check] - Evaluation measurement and Control

43

(c) Business plan A business plan of $10 million for launching a promotional project to improve Bauhaus Grouprsquos operations in Hong Kong which should be supported by a marketing expenses budget and implementation details

In order to evaluate the effectiveness of your recommendations you are required to analyse the projected impact on store locations sales and average spending per customer for the years ending 31 March 2017 and 2018

(25 marks ndash approximately 4 pages)

44

bull Bauhaus started in 1991 on Nathan Road Tsim Sha Tsui as a contemporary fashion store bringing the best of international brands to young trend-setters in Hong Kong [28 stores]

45

46

bull Sales data before and after the promotion

bull How many sales are a result of those promotions

bull Timing of promotion [ Hedonic consumption]

bull Customersrsquo preferences

bull Change of average spending per customers [Increaseddecreased]

bull Competitorsrsquo promotional campaigns

47

bull The median monthly domestic household income for 2014 was HK$23500 (vs for 2013 HK$22400)

48

(The Information Services Department HKSAR April 2015)

Company Shares of Apparel Accessories Value (2011-2015)

(Euromonitor 2016)

49

30 companies

50

51

52

53

Strategy Formulation

Evaluation

Implementation and Execution

54

bull Barits Ho Chong Securities Co Ltd (2006) Company Update Bauhaus International Available at httpwwwmegaseccomhkUploadFile5CTaiwanListco0483HK20Bauhaus20Update2004JANpdf [15 October 2016]

bull Euromonitor International (June 2016)

bull GlobalData (2015) Bauhaus International (Holdings) Limited (483) - Financial and Strategic SWOT Analysis Review Available at httpstoreglobaldatacomcompany-reportsretailingbauhaus-international-holdings-limited-483-financial-and-strategic-swot-analysis-reviewWBWilvp97IU [15 October 2015]

bull Headline Daily rate card 2016 Available at httppaperhkheadlinecomhtmlRatecardpdf [5 December 2016]

bull The Information Services Department Hong Kong Special Administrative Region Government (April 2015) GovHK Website Hong Kong The Facts Available httpwwwgovhkenaboutabouthkfactsheetsdocspopulationpdf [30 October 2016]

bull JCDecaux Rate card 2016 Available at httpwwwjcdecauxcomhkmtr_packagehtml [5 Dec 2016]

bull Skypost Rate card 2016 Available at httpskypostulifestylecomhkresourcesadvertisementftlpdf [5 Dec 2016]

bull TVB Rate card 2016 Available at httpwwwtvbcomtvbsalesratecardratecardphpp=hd_jade [5 December 2016]

55

13

14

Strengths

-domestic market -high profitability and revenue -monetary assistance provided -skilled workforce -barriers of market entry -experienced business units

Weaknesses

-high investments in research and development

15

Opportunities

-growing economy -new acquisitions -new markets -venture capital -growth rates and profitability -new products and services -income level is at a constant increase

Threats

-increase in labor costs -cash flow -external business risks -government regulations -technological problems -increasing costs -price changes

Data on this page may have come in part or

entirely from one or more data providers We

are not responsible for any errors or

omissions on this page This website is for

information purposes only

bull Marketing and advertising capabilities

bull Strong customer connect through strong brand promotion

bull Brand awareness and reputationHigh TOMA (top of mind awareness)

bull Brand loyalty

bull Multi channel strategy by extending online sales

bull Strong and extensive distribution channels in Hong Kong Efficient distribution

bull Strategic location

16

Relevancy

bull Lack of marketing capability

bull Higher costs arising from training personnel

bull Lack of e-commerce

bull Lack of product breath and offerings at different price points

bull Low turnover of product

bull Limited stock

17

Relevancy

bull Brand image

bull Company image and social engagement

bull Mobile payments

bull Growth of fashion market

bull Global market penetration

bull Growing Asian market (good growing market to be in)

bull Online market (expand into internet)

18

Relevancy

bull Fluctuation in exchange rates

bull Market entry barriers

bull Design challenges

bull Global competitors

bull Local competitors

19

Relevancy

Business Management and Marketing Strategies

1[Think] - SWOT Analysis

2[Do] - Implementation plan

3[Check] - Evaluation measurement and Control

20

(c) Business plan

A business plan of $10 million for launching a promotional project to improve Bauhaus Grouprsquos operations in Hong Kong which should be supported by a marketing expenses budget and implementation details In order to evaluate the effectiveness of your recommendations you are required to analyse the projected impact on store locations sales and average spending per customer for the years ending 31 March 2017 and 2018

(25 marks ndash approximately 4 pages)

21

bull Inform

bull Persuade amp

bull Remind customers about the Group andor its products

22

You need to consider

bull The target market

bull The nature of the products

bull The stage of the productrsquos life cycle

bull Money available for the promotion

23

bull Question Bauhaus targets WHO with products as its signature categories

bull ldquoBauhaus is principally engaged in the design manufacture wholesale and

retail sales of apparel bags and sacs and accessories under its own brand names of TOUGH and SALAD as well as retail sales of apparel under other third party

brand names in the fashion industry Bauhausrsquos products as well as those sourced from the third party brand names are adopting a trendy amp casual line targeting young consumers with fashion consciousnessrdquo

(Barits Ho Chong Securities Co Ltd 2006)

24

25

bull Bauhaus manufactures and trades a wide range of apparels (服飾)) and accessories for consumers

bull Its products include jeans shirts denim clothes pants tops t-shirts footwear and other leather accessories

bull It also sells accessories including handbags wallets backpack clutches shoulder bags top handles tote bags and caps

bull The company has brand such as BAUHAUS TOUGH Jeansmith SALAD 8020 and SUPERDR

(GlobalData 2015)

26

Growth stage bull Sold a lot + To sell as much as possible

bull Competitors watch amp decide about joining in with a competitor product

bull Growth continues until too may competitors in the market (market saturation)

bull At the end of the growth stage profits starts to decline amp the Group has to spend more money on promotion to keep sales going

bull Spending money on promotion cuts into the Grouprsquos profit

bull ldquoPersuasive promotionrdquo is in place during this stage

27

Maturity stage bull Many competitors have joined ndash market is saturated

bull The only way to sell is to begin to lower the price amp profits decrease

bull It is difficult to tell the different between products since most have the same FAB ndash Features Advantages amp Benefits [ no obvious product differentiation]

bull ldquoPersuasive promotionrdquo becomes more important during this stage

bull The Group TV commercials (or promotion) almost begging the customers to still buy its products because the Group still makes it just as good

28

HK$10000000

10 million

29

Paid amp non personal mass

communication

30

bull Focus on information amp goodwill of the Group

bull Consumer advertising Rational versus emotional appeals

bull Focus on particular product(s) or brand(s)

bull Stimulate demand for specific brands

31

bull What do you want your ads to do

bull Who are you trying to reach [ Target customers]

bull What promotional message do you want to communicate

bull How much does each medium cost

32

Rate card 廣告收費價目表

33

TVB Prime time 1855-2355 (Mon to Sun)

34

Rate (30 sec)

Air time cost (30 sec)

No of spots

F7 $70500 141 (30 sec)

F15 $215640 46 (30 sec)

35

Run-of-page

(Mon-Thur)

Full page

4C

HK$306000

$10000000 306000 = 32 FP

36

Min booking (4 weeks)

HK$36000 X 4

= $144000

bull Sales promotion (促銷) demand-stimulating activity designed to supplement advertising o Coupons

o Premiums

o Contests

o Sweepstakes

o Specialty advertising ndash places the Grouprsquos name address amp advertising message on useful articles that are then distributed to target customers

37

bull Publicity (公眾信息) a non-paid form of advertising that uses mass communication to stimulate demand

o Structured news release to the media

o Coordinating personal communication with a group customers

38

bull Public relations (公共關係) a planned communication effort by the Group to contribute to generally favourable attitudes amp opinions toward the Group amp its products

o Supporting charitable projects

o Supplying volunteers or other resources

o Participating in community-service events

o Sponsorship

o Providing information to customers through newsletters

39

40

Promotional plan

marketing

expenses budget

and

implementation

details

41

Promotional plan

marketing

expenses budget

and

implementation

details

42

Promotional plan

marketing

expenses budget

and

implementation

details

Business Management and Marketing Strategies

1[Think] - SWOT Analysis

2[Do] - Implementation plan

3[Check] - Evaluation measurement and Control

43

(c) Business plan A business plan of $10 million for launching a promotional project to improve Bauhaus Grouprsquos operations in Hong Kong which should be supported by a marketing expenses budget and implementation details

In order to evaluate the effectiveness of your recommendations you are required to analyse the projected impact on store locations sales and average spending per customer for the years ending 31 March 2017 and 2018

(25 marks ndash approximately 4 pages)

44

bull Bauhaus started in 1991 on Nathan Road Tsim Sha Tsui as a contemporary fashion store bringing the best of international brands to young trend-setters in Hong Kong [28 stores]

45

46

bull Sales data before and after the promotion

bull How many sales are a result of those promotions

bull Timing of promotion [ Hedonic consumption]

bull Customersrsquo preferences

bull Change of average spending per customers [Increaseddecreased]

bull Competitorsrsquo promotional campaigns

47

bull The median monthly domestic household income for 2014 was HK$23500 (vs for 2013 HK$22400)

48

(The Information Services Department HKSAR April 2015)

Company Shares of Apparel Accessories Value (2011-2015)

(Euromonitor 2016)

49

30 companies

50

51

52

53

Strategy Formulation

Evaluation

Implementation and Execution

54

bull Barits Ho Chong Securities Co Ltd (2006) Company Update Bauhaus International Available at httpwwwmegaseccomhkUploadFile5CTaiwanListco0483HK20Bauhaus20Update2004JANpdf [15 October 2016]

bull Euromonitor International (June 2016)

bull GlobalData (2015) Bauhaus International (Holdings) Limited (483) - Financial and Strategic SWOT Analysis Review Available at httpstoreglobaldatacomcompany-reportsretailingbauhaus-international-holdings-limited-483-financial-and-strategic-swot-analysis-reviewWBWilvp97IU [15 October 2015]

bull Headline Daily rate card 2016 Available at httppaperhkheadlinecomhtmlRatecardpdf [5 December 2016]

bull The Information Services Department Hong Kong Special Administrative Region Government (April 2015) GovHK Website Hong Kong The Facts Available httpwwwgovhkenaboutabouthkfactsheetsdocspopulationpdf [30 October 2016]

bull JCDecaux Rate card 2016 Available at httpwwwjcdecauxcomhkmtr_packagehtml [5 Dec 2016]

bull Skypost Rate card 2016 Available at httpskypostulifestylecomhkresourcesadvertisementftlpdf [5 Dec 2016]

bull TVB Rate card 2016 Available at httpwwwtvbcomtvbsalesratecardratecardphpp=hd_jade [5 December 2016]

55

14

Strengths

-domestic market -high profitability and revenue -monetary assistance provided -skilled workforce -barriers of market entry -experienced business units

Weaknesses

-high investments in research and development

15

Opportunities

-growing economy -new acquisitions -new markets -venture capital -growth rates and profitability -new products and services -income level is at a constant increase

Threats

-increase in labor costs -cash flow -external business risks -government regulations -technological problems -increasing costs -price changes

Data on this page may have come in part or

entirely from one or more data providers We

are not responsible for any errors or

omissions on this page This website is for

information purposes only

bull Marketing and advertising capabilities

bull Strong customer connect through strong brand promotion

bull Brand awareness and reputationHigh TOMA (top of mind awareness)

bull Brand loyalty

bull Multi channel strategy by extending online sales

bull Strong and extensive distribution channels in Hong Kong Efficient distribution

bull Strategic location

16

Relevancy

bull Lack of marketing capability

bull Higher costs arising from training personnel

bull Lack of e-commerce

bull Lack of product breath and offerings at different price points

bull Low turnover of product

bull Limited stock

17

Relevancy

bull Brand image

bull Company image and social engagement

bull Mobile payments

bull Growth of fashion market

bull Global market penetration

bull Growing Asian market (good growing market to be in)

bull Online market (expand into internet)

18

Relevancy

bull Fluctuation in exchange rates

bull Market entry barriers

bull Design challenges

bull Global competitors

bull Local competitors

19

Relevancy

Business Management and Marketing Strategies

1[Think] - SWOT Analysis

2[Do] - Implementation plan

3[Check] - Evaluation measurement and Control

20

(c) Business plan

A business plan of $10 million for launching a promotional project to improve Bauhaus Grouprsquos operations in Hong Kong which should be supported by a marketing expenses budget and implementation details In order to evaluate the effectiveness of your recommendations you are required to analyse the projected impact on store locations sales and average spending per customer for the years ending 31 March 2017 and 2018

(25 marks ndash approximately 4 pages)

21

bull Inform

bull Persuade amp

bull Remind customers about the Group andor its products

22

You need to consider

bull The target market

bull The nature of the products

bull The stage of the productrsquos life cycle

bull Money available for the promotion

23

bull Question Bauhaus targets WHO with products as its signature categories

bull ldquoBauhaus is principally engaged in the design manufacture wholesale and

retail sales of apparel bags and sacs and accessories under its own brand names of TOUGH and SALAD as well as retail sales of apparel under other third party

brand names in the fashion industry Bauhausrsquos products as well as those sourced from the third party brand names are adopting a trendy amp casual line targeting young consumers with fashion consciousnessrdquo

(Barits Ho Chong Securities Co Ltd 2006)

24

25

bull Bauhaus manufactures and trades a wide range of apparels (服飾)) and accessories for consumers

bull Its products include jeans shirts denim clothes pants tops t-shirts footwear and other leather accessories

bull It also sells accessories including handbags wallets backpack clutches shoulder bags top handles tote bags and caps

bull The company has brand such as BAUHAUS TOUGH Jeansmith SALAD 8020 and SUPERDR

(GlobalData 2015)

26

Growth stage bull Sold a lot + To sell as much as possible

bull Competitors watch amp decide about joining in with a competitor product

bull Growth continues until too may competitors in the market (market saturation)

bull At the end of the growth stage profits starts to decline amp the Group has to spend more money on promotion to keep sales going

bull Spending money on promotion cuts into the Grouprsquos profit

bull ldquoPersuasive promotionrdquo is in place during this stage

27

Maturity stage bull Many competitors have joined ndash market is saturated

bull The only way to sell is to begin to lower the price amp profits decrease

bull It is difficult to tell the different between products since most have the same FAB ndash Features Advantages amp Benefits [ no obvious product differentiation]

bull ldquoPersuasive promotionrdquo becomes more important during this stage

bull The Group TV commercials (or promotion) almost begging the customers to still buy its products because the Group still makes it just as good

28

HK$10000000

10 million

29

Paid amp non personal mass

communication

30

bull Focus on information amp goodwill of the Group

bull Consumer advertising Rational versus emotional appeals

bull Focus on particular product(s) or brand(s)

bull Stimulate demand for specific brands

31

bull What do you want your ads to do

bull Who are you trying to reach [ Target customers]

bull What promotional message do you want to communicate

bull How much does each medium cost

32

Rate card 廣告收費價目表

33

TVB Prime time 1855-2355 (Mon to Sun)

34

Rate (30 sec)

Air time cost (30 sec)

No of spots

F7 $70500 141 (30 sec)

F15 $215640 46 (30 sec)

35

Run-of-page

(Mon-Thur)

Full page

4C

HK$306000

$10000000 306000 = 32 FP

36

Min booking (4 weeks)

HK$36000 X 4

= $144000

bull Sales promotion (促銷) demand-stimulating activity designed to supplement advertising o Coupons

o Premiums

o Contests

o Sweepstakes

o Specialty advertising ndash places the Grouprsquos name address amp advertising message on useful articles that are then distributed to target customers

37

bull Publicity (公眾信息) a non-paid form of advertising that uses mass communication to stimulate demand

o Structured news release to the media

o Coordinating personal communication with a group customers

38

bull Public relations (公共關係) a planned communication effort by the Group to contribute to generally favourable attitudes amp opinions toward the Group amp its products

o Supporting charitable projects

o Supplying volunteers or other resources

o Participating in community-service events

o Sponsorship

o Providing information to customers through newsletters

39

40

Promotional plan

marketing

expenses budget

and

implementation

details

41

Promotional plan

marketing

expenses budget

and

implementation

details

42

Promotional plan

marketing

expenses budget

and

implementation

details

Business Management and Marketing Strategies

1[Think] - SWOT Analysis

2[Do] - Implementation plan

3[Check] - Evaluation measurement and Control

43

(c) Business plan A business plan of $10 million for launching a promotional project to improve Bauhaus Grouprsquos operations in Hong Kong which should be supported by a marketing expenses budget and implementation details

In order to evaluate the effectiveness of your recommendations you are required to analyse the projected impact on store locations sales and average spending per customer for the years ending 31 March 2017 and 2018

(25 marks ndash approximately 4 pages)

44

bull Bauhaus started in 1991 on Nathan Road Tsim Sha Tsui as a contemporary fashion store bringing the best of international brands to young trend-setters in Hong Kong [28 stores]

45

46

bull Sales data before and after the promotion

bull How many sales are a result of those promotions

bull Timing of promotion [ Hedonic consumption]

bull Customersrsquo preferences

bull Change of average spending per customers [Increaseddecreased]

bull Competitorsrsquo promotional campaigns

47

bull The median monthly domestic household income for 2014 was HK$23500 (vs for 2013 HK$22400)

48

(The Information Services Department HKSAR April 2015)

Company Shares of Apparel Accessories Value (2011-2015)

(Euromonitor 2016)

49

30 companies

50

51

52

53

Strategy Formulation

Evaluation

Implementation and Execution

54

bull Barits Ho Chong Securities Co Ltd (2006) Company Update Bauhaus International Available at httpwwwmegaseccomhkUploadFile5CTaiwanListco0483HK20Bauhaus20Update2004JANpdf [15 October 2016]

bull Euromonitor International (June 2016)

bull GlobalData (2015) Bauhaus International (Holdings) Limited (483) - Financial and Strategic SWOT Analysis Review Available at httpstoreglobaldatacomcompany-reportsretailingbauhaus-international-holdings-limited-483-financial-and-strategic-swot-analysis-reviewWBWilvp97IU [15 October 2015]

bull Headline Daily rate card 2016 Available at httppaperhkheadlinecomhtmlRatecardpdf [5 December 2016]

bull The Information Services Department Hong Kong Special Administrative Region Government (April 2015) GovHK Website Hong Kong The Facts Available httpwwwgovhkenaboutabouthkfactsheetsdocspopulationpdf [30 October 2016]

bull JCDecaux Rate card 2016 Available at httpwwwjcdecauxcomhkmtr_packagehtml [5 Dec 2016]

bull Skypost Rate card 2016 Available at httpskypostulifestylecomhkresourcesadvertisementftlpdf [5 Dec 2016]

bull TVB Rate card 2016 Available at httpwwwtvbcomtvbsalesratecardratecardphpp=hd_jade [5 December 2016]

55

Strengths

-domestic market -high profitability and revenue -monetary assistance provided -skilled workforce -barriers of market entry -experienced business units

Weaknesses

-high investments in research and development

15

Opportunities

-growing economy -new acquisitions -new markets -venture capital -growth rates and profitability -new products and services -income level is at a constant increase

Threats

-increase in labor costs -cash flow -external business risks -government regulations -technological problems -increasing costs -price changes

Data on this page may have come in part or

entirely from one or more data providers We

are not responsible for any errors or

omissions on this page This website is for

information purposes only

bull Marketing and advertising capabilities

bull Strong customer connect through strong brand promotion

bull Brand awareness and reputationHigh TOMA (top of mind awareness)

bull Brand loyalty

bull Multi channel strategy by extending online sales

bull Strong and extensive distribution channels in Hong Kong Efficient distribution

bull Strategic location

16

Relevancy

bull Lack of marketing capability

bull Higher costs arising from training personnel

bull Lack of e-commerce

bull Lack of product breath and offerings at different price points

bull Low turnover of product

bull Limited stock

17

Relevancy

bull Brand image

bull Company image and social engagement

bull Mobile payments

bull Growth of fashion market

bull Global market penetration

bull Growing Asian market (good growing market to be in)

bull Online market (expand into internet)

18

Relevancy

bull Fluctuation in exchange rates

bull Market entry barriers

bull Design challenges

bull Global competitors

bull Local competitors

19

Relevancy

Business Management and Marketing Strategies

1[Think] - SWOT Analysis

2[Do] - Implementation plan

3[Check] - Evaluation measurement and Control

20

(c) Business plan

A business plan of $10 million for launching a promotional project to improve Bauhaus Grouprsquos operations in Hong Kong which should be supported by a marketing expenses budget and implementation details In order to evaluate the effectiveness of your recommendations you are required to analyse the projected impact on store locations sales and average spending per customer for the years ending 31 March 2017 and 2018

(25 marks ndash approximately 4 pages)

21

bull Inform

bull Persuade amp

bull Remind customers about the Group andor its products

22

You need to consider

bull The target market

bull The nature of the products

bull The stage of the productrsquos life cycle

bull Money available for the promotion

23

bull Question Bauhaus targets WHO with products as its signature categories

bull ldquoBauhaus is principally engaged in the design manufacture wholesale and

retail sales of apparel bags and sacs and accessories under its own brand names of TOUGH and SALAD as well as retail sales of apparel under other third party

brand names in the fashion industry Bauhausrsquos products as well as those sourced from the third party brand names are adopting a trendy amp casual line targeting young consumers with fashion consciousnessrdquo

(Barits Ho Chong Securities Co Ltd 2006)

24

25

bull Bauhaus manufactures and trades a wide range of apparels (服飾)) and accessories for consumers

bull Its products include jeans shirts denim clothes pants tops t-shirts footwear and other leather accessories

bull It also sells accessories including handbags wallets backpack clutches shoulder bags top handles tote bags and caps

bull The company has brand such as BAUHAUS TOUGH Jeansmith SALAD 8020 and SUPERDR

(GlobalData 2015)

26

Growth stage bull Sold a lot + To sell as much as possible

bull Competitors watch amp decide about joining in with a competitor product

bull Growth continues until too may competitors in the market (market saturation)

bull At the end of the growth stage profits starts to decline amp the Group has to spend more money on promotion to keep sales going

bull Spending money on promotion cuts into the Grouprsquos profit

bull ldquoPersuasive promotionrdquo is in place during this stage

27

Maturity stage bull Many competitors have joined ndash market is saturated

bull The only way to sell is to begin to lower the price amp profits decrease

bull It is difficult to tell the different between products since most have the same FAB ndash Features Advantages amp Benefits [ no obvious product differentiation]

bull ldquoPersuasive promotionrdquo becomes more important during this stage

bull The Group TV commercials (or promotion) almost begging the customers to still buy its products because the Group still makes it just as good

28

HK$10000000

10 million

29

Paid amp non personal mass

communication

30

bull Focus on information amp goodwill of the Group

bull Consumer advertising Rational versus emotional appeals

bull Focus on particular product(s) or brand(s)

bull Stimulate demand for specific brands

31

bull What do you want your ads to do

bull Who are you trying to reach [ Target customers]

bull What promotional message do you want to communicate

bull How much does each medium cost

32

Rate card 廣告收費價目表

33

TVB Prime time 1855-2355 (Mon to Sun)

34

Rate (30 sec)

Air time cost (30 sec)

No of spots

F7 $70500 141 (30 sec)

F15 $215640 46 (30 sec)

35

Run-of-page

(Mon-Thur)

Full page

4C

HK$306000

$10000000 306000 = 32 FP

36

Min booking (4 weeks)

HK$36000 X 4

= $144000

bull Sales promotion (促銷) demand-stimulating activity designed to supplement advertising o Coupons

o Premiums

o Contests

o Sweepstakes

o Specialty advertising ndash places the Grouprsquos name address amp advertising message on useful articles that are then distributed to target customers

37

bull Publicity (公眾信息) a non-paid form of advertising that uses mass communication to stimulate demand

o Structured news release to the media

o Coordinating personal communication with a group customers

38

bull Public relations (公共關係) a planned communication effort by the Group to contribute to generally favourable attitudes amp opinions toward the Group amp its products

o Supporting charitable projects

o Supplying volunteers or other resources

o Participating in community-service events

o Sponsorship

o Providing information to customers through newsletters

39

40

Promotional plan

marketing

expenses budget

and

implementation

details

41

Promotional plan

marketing

expenses budget

and

implementation

details

42

Promotional plan

marketing

expenses budget

and

implementation

details

Business Management and Marketing Strategies

1[Think] - SWOT Analysis

2[Do] - Implementation plan

3[Check] - Evaluation measurement and Control

43

(c) Business plan A business plan of $10 million for launching a promotional project to improve Bauhaus Grouprsquos operations in Hong Kong which should be supported by a marketing expenses budget and implementation details

In order to evaluate the effectiveness of your recommendations you are required to analyse the projected impact on store locations sales and average spending per customer for the years ending 31 March 2017 and 2018

(25 marks ndash approximately 4 pages)

44

bull Bauhaus started in 1991 on Nathan Road Tsim Sha Tsui as a contemporary fashion store bringing the best of international brands to young trend-setters in Hong Kong [28 stores]

45

46

bull Sales data before and after the promotion

bull How many sales are a result of those promotions

bull Timing of promotion [ Hedonic consumption]

bull Customersrsquo preferences

bull Change of average spending per customers [Increaseddecreased]

bull Competitorsrsquo promotional campaigns

47

bull The median monthly domestic household income for 2014 was HK$23500 (vs for 2013 HK$22400)

48

(The Information Services Department HKSAR April 2015)

Company Shares of Apparel Accessories Value (2011-2015)

(Euromonitor 2016)

49

30 companies

50

51

52

53

Strategy Formulation

Evaluation

Implementation and Execution

54

bull Barits Ho Chong Securities Co Ltd (2006) Company Update Bauhaus International Available at httpwwwmegaseccomhkUploadFile5CTaiwanListco0483HK20Bauhaus20Update2004JANpdf [15 October 2016]

bull Euromonitor International (June 2016)

bull GlobalData (2015) Bauhaus International (Holdings) Limited (483) - Financial and Strategic SWOT Analysis Review Available at httpstoreglobaldatacomcompany-reportsretailingbauhaus-international-holdings-limited-483-financial-and-strategic-swot-analysis-reviewWBWilvp97IU [15 October 2015]

bull Headline Daily rate card 2016 Available at httppaperhkheadlinecomhtmlRatecardpdf [5 December 2016]

bull The Information Services Department Hong Kong Special Administrative Region Government (April 2015) GovHK Website Hong Kong The Facts Available httpwwwgovhkenaboutabouthkfactsheetsdocspopulationpdf [30 October 2016]

bull JCDecaux Rate card 2016 Available at httpwwwjcdecauxcomhkmtr_packagehtml [5 Dec 2016]

bull Skypost Rate card 2016 Available at httpskypostulifestylecomhkresourcesadvertisementftlpdf [5 Dec 2016]

bull TVB Rate card 2016 Available at httpwwwtvbcomtvbsalesratecardratecardphpp=hd_jade [5 December 2016]

55

bull Marketing and advertising capabilities

bull Strong customer connect through strong brand promotion

bull Brand awareness and reputationHigh TOMA (top of mind awareness)

bull Brand loyalty

bull Multi channel strategy by extending online sales

bull Strong and extensive distribution channels in Hong Kong Efficient distribution

bull Strategic location

16

Relevancy

bull Lack of marketing capability

bull Higher costs arising from training personnel

bull Lack of e-commerce

bull Lack of product breath and offerings at different price points

bull Low turnover of product

bull Limited stock

17

Relevancy

bull Brand image

bull Company image and social engagement

bull Mobile payments

bull Growth of fashion market

bull Global market penetration

bull Growing Asian market (good growing market to be in)

bull Online market (expand into internet)

18

Relevancy

bull Fluctuation in exchange rates

bull Market entry barriers

bull Design challenges

bull Global competitors

bull Local competitors

19

Relevancy

Business Management and Marketing Strategies

1[Think] - SWOT Analysis

2[Do] - Implementation plan

3[Check] - Evaluation measurement and Control

20

(c) Business plan

A business plan of $10 million for launching a promotional project to improve Bauhaus Grouprsquos operations in Hong Kong which should be supported by a marketing expenses budget and implementation details In order to evaluate the effectiveness of your recommendations you are required to analyse the projected impact on store locations sales and average spending per customer for the years ending 31 March 2017 and 2018

(25 marks ndash approximately 4 pages)

21

bull Inform

bull Persuade amp

bull Remind customers about the Group andor its products

22

You need to consider

bull The target market

bull The nature of the products

bull The stage of the productrsquos life cycle

bull Money available for the promotion

23

bull Question Bauhaus targets WHO with products as its signature categories

bull ldquoBauhaus is principally engaged in the design manufacture wholesale and

retail sales of apparel bags and sacs and accessories under its own brand names of TOUGH and SALAD as well as retail sales of apparel under other third party

brand names in the fashion industry Bauhausrsquos products as well as those sourced from the third party brand names are adopting a trendy amp casual line targeting young consumers with fashion consciousnessrdquo

(Barits Ho Chong Securities Co Ltd 2006)

24

25

bull Bauhaus manufactures and trades a wide range of apparels (服飾)) and accessories for consumers

bull Its products include jeans shirts denim clothes pants tops t-shirts footwear and other leather accessories

bull It also sells accessories including handbags wallets backpack clutches shoulder bags top handles tote bags and caps

bull The company has brand such as BAUHAUS TOUGH Jeansmith SALAD 8020 and SUPERDR

(GlobalData 2015)

26

Growth stage bull Sold a lot + To sell as much as possible

bull Competitors watch amp decide about joining in with a competitor product

bull Growth continues until too may competitors in the market (market saturation)

bull At the end of the growth stage profits starts to decline amp the Group has to spend more money on promotion to keep sales going

bull Spending money on promotion cuts into the Grouprsquos profit

bull ldquoPersuasive promotionrdquo is in place during this stage

27

Maturity stage bull Many competitors have joined ndash market is saturated

bull The only way to sell is to begin to lower the price amp profits decrease

bull It is difficult to tell the different between products since most have the same FAB ndash Features Advantages amp Benefits [ no obvious product differentiation]

bull ldquoPersuasive promotionrdquo becomes more important during this stage

bull The Group TV commercials (or promotion) almost begging the customers to still buy its products because the Group still makes it just as good

28

HK$10000000

10 million

29

Paid amp non personal mass

communication

30

bull Focus on information amp goodwill of the Group

bull Consumer advertising Rational versus emotional appeals

bull Focus on particular product(s) or brand(s)

bull Stimulate demand for specific brands

31

bull What do you want your ads to do

bull Who are you trying to reach [ Target customers]

bull What promotional message do you want to communicate

bull How much does each medium cost

32

Rate card 廣告收費價目表

33

TVB Prime time 1855-2355 (Mon to Sun)

34

Rate (30 sec)

Air time cost (30 sec)

No of spots

F7 $70500 141 (30 sec)

F15 $215640 46 (30 sec)

35

Run-of-page

(Mon-Thur)

Full page

4C

HK$306000

$10000000 306000 = 32 FP

36

Min booking (4 weeks)

HK$36000 X 4

= $144000

bull Sales promotion (促銷) demand-stimulating activity designed to supplement advertising o Coupons

o Premiums

o Contests

o Sweepstakes

o Specialty advertising ndash places the Grouprsquos name address amp advertising message on useful articles that are then distributed to target customers

37

bull Publicity (公眾信息) a non-paid form of advertising that uses mass communication to stimulate demand

o Structured news release to the media

o Coordinating personal communication with a group customers

38

bull Public relations (公共關係) a planned communication effort by the Group to contribute to generally favourable attitudes amp opinions toward the Group amp its products

o Supporting charitable projects

o Supplying volunteers or other resources

o Participating in community-service events

o Sponsorship

o Providing information to customers through newsletters

39

40

Promotional plan

marketing

expenses budget

and

implementation

details

41

Promotional plan

marketing

expenses budget

and

implementation

details

42

Promotional plan

marketing

expenses budget

and

implementation

details

Business Management and Marketing Strategies

1[Think] - SWOT Analysis

2[Do] - Implementation plan

3[Check] - Evaluation measurement and Control

43

(c) Business plan A business plan of $10 million for launching a promotional project to improve Bauhaus Grouprsquos operations in Hong Kong which should be supported by a marketing expenses budget and implementation details

In order to evaluate the effectiveness of your recommendations you are required to analyse the projected impact on store locations sales and average spending per customer for the years ending 31 March 2017 and 2018

(25 marks ndash approximately 4 pages)

44

bull Bauhaus started in 1991 on Nathan Road Tsim Sha Tsui as a contemporary fashion store bringing the best of international brands to young trend-setters in Hong Kong [28 stores]

45

46

bull Sales data before and after the promotion

bull How many sales are a result of those promotions

bull Timing of promotion [ Hedonic consumption]

bull Customersrsquo preferences

bull Change of average spending per customers [Increaseddecreased]

bull Competitorsrsquo promotional campaigns

47

bull The median monthly domestic household income for 2014 was HK$23500 (vs for 2013 HK$22400)

48

(The Information Services Department HKSAR April 2015)

Company Shares of Apparel Accessories Value (2011-2015)

(Euromonitor 2016)

49

30 companies

50

51

52

53

Strategy Formulation

Evaluation

Implementation and Execution

54

bull Barits Ho Chong Securities Co Ltd (2006) Company Update Bauhaus International Available at httpwwwmegaseccomhkUploadFile5CTaiwanListco0483HK20Bauhaus20Update2004JANpdf [15 October 2016]

bull Euromonitor International (June 2016)

bull GlobalData (2015) Bauhaus International (Holdings) Limited (483) - Financial and Strategic SWOT Analysis Review Available at httpstoreglobaldatacomcompany-reportsretailingbauhaus-international-holdings-limited-483-financial-and-strategic-swot-analysis-reviewWBWilvp97IU [15 October 2015]

bull Headline Daily rate card 2016 Available at httppaperhkheadlinecomhtmlRatecardpdf [5 December 2016]

bull The Information Services Department Hong Kong Special Administrative Region Government (April 2015) GovHK Website Hong Kong The Facts Available httpwwwgovhkenaboutabouthkfactsheetsdocspopulationpdf [30 October 2016]

bull JCDecaux Rate card 2016 Available at httpwwwjcdecauxcomhkmtr_packagehtml [5 Dec 2016]

bull Skypost Rate card 2016 Available at httpskypostulifestylecomhkresourcesadvertisementftlpdf [5 Dec 2016]

bull TVB Rate card 2016 Available at httpwwwtvbcomtvbsalesratecardratecardphpp=hd_jade [5 December 2016]

55

bull Lack of marketing capability

bull Higher costs arising from training personnel

bull Lack of e-commerce

bull Lack of product breath and offerings at different price points

bull Low turnover of product

bull Limited stock

17

Relevancy

bull Brand image

bull Company image and social engagement

bull Mobile payments

bull Growth of fashion market

bull Global market penetration

bull Growing Asian market (good growing market to be in)

bull Online market (expand into internet)

18

Relevancy

bull Fluctuation in exchange rates

bull Market entry barriers

bull Design challenges

bull Global competitors

bull Local competitors

19

Relevancy

Business Management and Marketing Strategies

1[Think] - SWOT Analysis

2[Do] - Implementation plan

3[Check] - Evaluation measurement and Control

20

(c) Business plan

A business plan of $10 million for launching a promotional project to improve Bauhaus Grouprsquos operations in Hong Kong which should be supported by a marketing expenses budget and implementation details In order to evaluate the effectiveness of your recommendations you are required to analyse the projected impact on store locations sales and average spending per customer for the years ending 31 March 2017 and 2018

(25 marks ndash approximately 4 pages)

21

bull Inform

bull Persuade amp

bull Remind customers about the Group andor its products

22

You need to consider

bull The target market

bull The nature of the products

bull The stage of the productrsquos life cycle

bull Money available for the promotion

23

bull Question Bauhaus targets WHO with products as its signature categories

bull ldquoBauhaus is principally engaged in the design manufacture wholesale and

retail sales of apparel bags and sacs and accessories under its own brand names of TOUGH and SALAD as well as retail sales of apparel under other third party

brand names in the fashion industry Bauhausrsquos products as well as those sourced from the third party brand names are adopting a trendy amp casual line targeting young consumers with fashion consciousnessrdquo

(Barits Ho Chong Securities Co Ltd 2006)

24

25

bull Bauhaus manufactures and trades a wide range of apparels (服飾)) and accessories for consumers

bull Its products include jeans shirts denim clothes pants tops t-shirts footwear and other leather accessories

bull It also sells accessories including handbags wallets backpack clutches shoulder bags top handles tote bags and caps

bull The company has brand such as BAUHAUS TOUGH Jeansmith SALAD 8020 and SUPERDR

(GlobalData 2015)

26

Growth stage bull Sold a lot + To sell as much as possible

bull Competitors watch amp decide about joining in with a competitor product

bull Growth continues until too may competitors in the market (market saturation)

bull At the end of the growth stage profits starts to decline amp the Group has to spend more money on promotion to keep sales going

bull Spending money on promotion cuts into the Grouprsquos profit

bull ldquoPersuasive promotionrdquo is in place during this stage

27

Maturity stage bull Many competitors have joined ndash market is saturated

bull The only way to sell is to begin to lower the price amp profits decrease

bull It is difficult to tell the different between products since most have the same FAB ndash Features Advantages amp Benefits [ no obvious product differentiation]

bull ldquoPersuasive promotionrdquo becomes more important during this stage

bull The Group TV commercials (or promotion) almost begging the customers to still buy its products because the Group still makes it just as good

28

HK$10000000

10 million

29

Paid amp non personal mass

communication

30

bull Focus on information amp goodwill of the Group

bull Consumer advertising Rational versus emotional appeals

bull Focus on particular product(s) or brand(s)

bull Stimulate demand for specific brands

31

bull What do you want your ads to do

bull Who are you trying to reach [ Target customers]

bull What promotional message do you want to communicate

bull How much does each medium cost

32

Rate card 廣告收費價目表

33

TVB Prime time 1855-2355 (Mon to Sun)

34

Rate (30 sec)

Air time cost (30 sec)

No of spots

F7 $70500 141 (30 sec)

F15 $215640 46 (30 sec)

35

Run-of-page

(Mon-Thur)

Full page

4C

HK$306000

$10000000 306000 = 32 FP

36

Min booking (4 weeks)

HK$36000 X 4

= $144000

bull Sales promotion (促銷) demand-stimulating activity designed to supplement advertising o Coupons

o Premiums

o Contests

o Sweepstakes

o Specialty advertising ndash places the Grouprsquos name address amp advertising message on useful articles that are then distributed to target customers

37

bull Publicity (公眾信息) a non-paid form of advertising that uses mass communication to stimulate demand

o Structured news release to the media

o Coordinating personal communication with a group customers

38

bull Public relations (公共關係) a planned communication effort by the Group to contribute to generally favourable attitudes amp opinions toward the Group amp its products

o Supporting charitable projects

o Supplying volunteers or other resources

o Participating in community-service events

o Sponsorship

o Providing information to customers through newsletters

39

40

Promotional plan

marketing

expenses budget

and

implementation

details

41

Promotional plan

marketing

expenses budget

and

implementation

details

42

Promotional plan

marketing

expenses budget

and

implementation

details

Business Management and Marketing Strategies

1[Think] - SWOT Analysis

2[Do] - Implementation plan

3[Check] - Evaluation measurement and Control

43

(c) Business plan A business plan of $10 million for launching a promotional project to improve Bauhaus Grouprsquos operations in Hong Kong which should be supported by a marketing expenses budget and implementation details

In order to evaluate the effectiveness of your recommendations you are required to analyse the projected impact on store locations sales and average spending per customer for the years ending 31 March 2017 and 2018

(25 marks ndash approximately 4 pages)

44

bull Bauhaus started in 1991 on Nathan Road Tsim Sha Tsui as a contemporary fashion store bringing the best of international brands to young trend-setters in Hong Kong [28 stores]

45

46

bull Sales data before and after the promotion

bull How many sales are a result of those promotions

bull Timing of promotion [ Hedonic consumption]

bull Customersrsquo preferences

bull Change of average spending per customers [Increaseddecreased]

bull Competitorsrsquo promotional campaigns

47

bull The median monthly domestic household income for 2014 was HK$23500 (vs for 2013 HK$22400)

48

(The Information Services Department HKSAR April 2015)

Company Shares of Apparel Accessories Value (2011-2015)

(Euromonitor 2016)

49

30 companies

50

51

52

53

Strategy Formulation

Evaluation

Implementation and Execution

54

bull Barits Ho Chong Securities Co Ltd (2006) Company Update Bauhaus International Available at httpwwwmegaseccomhkUploadFile5CTaiwanListco0483HK20Bauhaus20Update2004JANpdf [15 October 2016]

bull Euromonitor International (June 2016)

bull GlobalData (2015) Bauhaus International (Holdings) Limited (483) - Financial and Strategic SWOT Analysis Review Available at httpstoreglobaldatacomcompany-reportsretailingbauhaus-international-holdings-limited-483-financial-and-strategic-swot-analysis-reviewWBWilvp97IU [15 October 2015]

bull Headline Daily rate card 2016 Available at httppaperhkheadlinecomhtmlRatecardpdf [5 December 2016]

bull The Information Services Department Hong Kong Special Administrative Region Government (April 2015) GovHK Website Hong Kong The Facts Available httpwwwgovhkenaboutabouthkfactsheetsdocspopulationpdf [30 October 2016]

bull JCDecaux Rate card 2016 Available at httpwwwjcdecauxcomhkmtr_packagehtml [5 Dec 2016]

bull Skypost Rate card 2016 Available at httpskypostulifestylecomhkresourcesadvertisementftlpdf [5 Dec 2016]

bull TVB Rate card 2016 Available at httpwwwtvbcomtvbsalesratecardratecardphpp=hd_jade [5 December 2016]

55

bull Brand image

bull Company image and social engagement

bull Mobile payments

bull Growth of fashion market

bull Global market penetration

bull Growing Asian market (good growing market to be in)

bull Online market (expand into internet)

18

Relevancy

bull Fluctuation in exchange rates

bull Market entry barriers

bull Design challenges

bull Global competitors

bull Local competitors

19

Relevancy

Business Management and Marketing Strategies

1[Think] - SWOT Analysis

2[Do] - Implementation plan

3[Check] - Evaluation measurement and Control

20

(c) Business plan

A business plan of $10 million for launching a promotional project to improve Bauhaus Grouprsquos operations in Hong Kong which should be supported by a marketing expenses budget and implementation details In order to evaluate the effectiveness of your recommendations you are required to analyse the projected impact on store locations sales and average spending per customer for the years ending 31 March 2017 and 2018

(25 marks ndash approximately 4 pages)

21

bull Inform

bull Persuade amp

bull Remind customers about the Group andor its products

22

You need to consider

bull The target market

bull The nature of the products

bull The stage of the productrsquos life cycle

bull Money available for the promotion

23

bull Question Bauhaus targets WHO with products as its signature categories

bull ldquoBauhaus is principally engaged in the design manufacture wholesale and

retail sales of apparel bags and sacs and accessories under its own brand names of TOUGH and SALAD as well as retail sales of apparel under other third party

brand names in the fashion industry Bauhausrsquos products as well as those sourced from the third party brand names are adopting a trendy amp casual line targeting young consumers with fashion consciousnessrdquo

(Barits Ho Chong Securities Co Ltd 2006)

24

25

bull Bauhaus manufactures and trades a wide range of apparels (服飾)) and accessories for consumers

bull Its products include jeans shirts denim clothes pants tops t-shirts footwear and other leather accessories

bull It also sells accessories including handbags wallets backpack clutches shoulder bags top handles tote bags and caps

bull The company has brand such as BAUHAUS TOUGH Jeansmith SALAD 8020 and SUPERDR

(GlobalData 2015)

26

Growth stage bull Sold a lot + To sell as much as possible

bull Competitors watch amp decide about joining in with a competitor product

bull Growth continues until too may competitors in the market (market saturation)

bull At the end of the growth stage profits starts to decline amp the Group has to spend more money on promotion to keep sales going

bull Spending money on promotion cuts into the Grouprsquos profit

bull ldquoPersuasive promotionrdquo is in place during this stage

27

Maturity stage bull Many competitors have joined ndash market is saturated

bull The only way to sell is to begin to lower the price amp profits decrease

bull It is difficult to tell the different between products since most have the same FAB ndash Features Advantages amp Benefits [ no obvious product differentiation]

bull ldquoPersuasive promotionrdquo becomes more important during this stage

bull The Group TV commercials (or promotion) almost begging the customers to still buy its products because the Group still makes it just as good

28

HK$10000000

10 million

29

Paid amp non personal mass

communication

30

bull Focus on information amp goodwill of the Group

bull Consumer advertising Rational versus emotional appeals

bull Focus on particular product(s) or brand(s)

bull Stimulate demand for specific brands

31

bull What do you want your ads to do

bull Who are you trying to reach [ Target customers]

bull What promotional message do you want to communicate

bull How much does each medium cost

32

Rate card 廣告收費價目表

33

TVB Prime time 1855-2355 (Mon to Sun)

34

Rate (30 sec)

Air time cost (30 sec)

No of spots

F7 $70500 141 (30 sec)

F15 $215640 46 (30 sec)

35

Run-of-page

(Mon-Thur)

Full page

4C

HK$306000

$10000000 306000 = 32 FP

36

Min booking (4 weeks)

HK$36000 X 4

= $144000

bull Sales promotion (促銷) demand-stimulating activity designed to supplement advertising o Coupons

o Premiums

o Contests

o Sweepstakes

o Specialty advertising ndash places the Grouprsquos name address amp advertising message on useful articles that are then distributed to target customers

37

bull Publicity (公眾信息) a non-paid form of advertising that uses mass communication to stimulate demand

o Structured news release to the media

o Coordinating personal communication with a group customers

38

bull Public relations (公共關係) a planned communication effort by the Group to contribute to generally favourable attitudes amp opinions toward the Group amp its products

o Supporting charitable projects

o Supplying volunteers or other resources

o Participating in community-service events

o Sponsorship

o Providing information to customers through newsletters

39

40

Promotional plan

marketing

expenses budget

and

implementation

details

41

Promotional plan

marketing

expenses budget

and

implementation

details

42

Promotional plan

marketing

expenses budget

and

implementation

details

Business Management and Marketing Strategies

1[Think] - SWOT Analysis

2[Do] - Implementation plan

3[Check] - Evaluation measurement and Control

43

(c) Business plan A business plan of $10 million for launching a promotional project to improve Bauhaus Grouprsquos operations in Hong Kong which should be supported by a marketing expenses budget and implementation details

In order to evaluate the effectiveness of your recommendations you are required to analyse the projected impact on store locations sales and average spending per customer for the years ending 31 March 2017 and 2018

(25 marks ndash approximately 4 pages)

44

bull Bauhaus started in 1991 on Nathan Road Tsim Sha Tsui as a contemporary fashion store bringing the best of international brands to young trend-setters in Hong Kong [28 stores]

45

46

bull Sales data before and after the promotion

bull How many sales are a result of those promotions

bull Timing of promotion [ Hedonic consumption]

bull Customersrsquo preferences

bull Change of average spending per customers [Increaseddecreased]

bull Competitorsrsquo promotional campaigns

47

bull The median monthly domestic household income for 2014 was HK$23500 (vs for 2013 HK$22400)

48

(The Information Services Department HKSAR April 2015)

Company Shares of Apparel Accessories Value (2011-2015)

(Euromonitor 2016)

49

30 companies

50

51

52

53

Strategy Formulation

Evaluation

Implementation and Execution

54

bull Barits Ho Chong Securities Co Ltd (2006) Company Update Bauhaus International Available at httpwwwmegaseccomhkUploadFile5CTaiwanListco0483HK20Bauhaus20Update2004JANpdf [15 October 2016]

bull Euromonitor International (June 2016)

bull GlobalData (2015) Bauhaus International (Holdings) Limited (483) - Financial and Strategic SWOT Analysis Review Available at httpstoreglobaldatacomcompany-reportsretailingbauhaus-international-holdings-limited-483-financial-and-strategic-swot-analysis-reviewWBWilvp97IU [15 October 2015]

bull Headline Daily rate card 2016 Available at httppaperhkheadlinecomhtmlRatecardpdf [5 December 2016]

bull The Information Services Department Hong Kong Special Administrative Region Government (April 2015) GovHK Website Hong Kong The Facts Available httpwwwgovhkenaboutabouthkfactsheetsdocspopulationpdf [30 October 2016]

bull JCDecaux Rate card 2016 Available at httpwwwjcdecauxcomhkmtr_packagehtml [5 Dec 2016]

bull Skypost Rate card 2016 Available at httpskypostulifestylecomhkresourcesadvertisementftlpdf [5 Dec 2016]

bull TVB Rate card 2016 Available at httpwwwtvbcomtvbsalesratecardratecardphpp=hd_jade [5 December 2016]

55

bull Fluctuation in exchange rates

bull Market entry barriers

bull Design challenges

bull Global competitors

bull Local competitors

19

Relevancy

Business Management and Marketing Strategies

1[Think] - SWOT Analysis

2[Do] - Implementation plan

3[Check] - Evaluation measurement and Control

20

(c) Business plan

A business plan of $10 million for launching a promotional project to improve Bauhaus Grouprsquos operations in Hong Kong which should be supported by a marketing expenses budget and implementation details In order to evaluate the effectiveness of your recommendations you are required to analyse the projected impact on store locations sales and average spending per customer for the years ending 31 March 2017 and 2018

(25 marks ndash approximately 4 pages)

21

bull Inform

bull Persuade amp

bull Remind customers about the Group andor its products

22

You need to consider

bull The target market

bull The nature of the products

bull The stage of the productrsquos life cycle

bull Money available for the promotion

23

bull Question Bauhaus targets WHO with products as its signature categories

bull ldquoBauhaus is principally engaged in the design manufacture wholesale and

retail sales of apparel bags and sacs and accessories under its own brand names of TOUGH and SALAD as well as retail sales of apparel under other third party

brand names in the fashion industry Bauhausrsquos products as well as those sourced from the third party brand names are adopting a trendy amp casual line targeting young consumers with fashion consciousnessrdquo

(Barits Ho Chong Securities Co Ltd 2006)

24

25

bull Bauhaus manufactures and trades a wide range of apparels (服飾)) and accessories for consumers

bull Its products include jeans shirts denim clothes pants tops t-shirts footwear and other leather accessories

bull It also sells accessories including handbags wallets backpack clutches shoulder bags top handles tote bags and caps

bull The company has brand such as BAUHAUS TOUGH Jeansmith SALAD 8020 and SUPERDR

(GlobalData 2015)

26

Growth stage bull Sold a lot + To sell as much as possible

bull Competitors watch amp decide about joining in with a competitor product

bull Growth continues until too may competitors in the market (market saturation)

bull At the end of the growth stage profits starts to decline amp the Group has to spend more money on promotion to keep sales going

bull Spending money on promotion cuts into the Grouprsquos profit

bull ldquoPersuasive promotionrdquo is in place during this stage

27

Maturity stage bull Many competitors have joined ndash market is saturated

bull The only way to sell is to begin to lower the price amp profits decrease

bull It is difficult to tell the different between products since most have the same FAB ndash Features Advantages amp Benefits [ no obvious product differentiation]

bull ldquoPersuasive promotionrdquo becomes more important during this stage

bull The Group TV commercials (or promotion) almost begging the customers to still buy its products because the Group still makes it just as good

28

HK$10000000

10 million

29

Paid amp non personal mass

communication

30

bull Focus on information amp goodwill of the Group

bull Consumer advertising Rational versus emotional appeals

bull Focus on particular product(s) or brand(s)

bull Stimulate demand for specific brands

31

bull What do you want your ads to do

bull Who are you trying to reach [ Target customers]

bull What promotional message do you want to communicate

bull How much does each medium cost

32

Rate card 廣告收費價目表

33

TVB Prime time 1855-2355 (Mon to Sun)

34

Rate (30 sec)

Air time cost (30 sec)

No of spots

F7 $70500 141 (30 sec)

F15 $215640 46 (30 sec)

35

Run-of-page

(Mon-Thur)

Full page

4C

HK$306000

$10000000 306000 = 32 FP

36

Min booking (4 weeks)

HK$36000 X 4

= $144000

bull Sales promotion (促銷) demand-stimulating activity designed to supplement advertising o Coupons

o Premiums

o Contests

o Sweepstakes

o Specialty advertising ndash places the Grouprsquos name address amp advertising message on useful articles that are then distributed to target customers

37

bull Publicity (公眾信息) a non-paid form of advertising that uses mass communication to stimulate demand

o Structured news release to the media

o Coordinating personal communication with a group customers

38

bull Public relations (公共關係) a planned communication effort by the Group to contribute to generally favourable attitudes amp opinions toward the Group amp its products

o Supporting charitable projects

o Supplying volunteers or other resources

o Participating in community-service events

o Sponsorship

o Providing information to customers through newsletters

39

40

Promotional plan

marketing

expenses budget

and

implementation

details

41

Promotional plan

marketing

expenses budget

and

implementation

details

42

Promotional plan

marketing

expenses budget

and

implementation

details

Business Management and Marketing Strategies

1[Think] - SWOT Analysis

2[Do] - Implementation plan

3[Check] - Evaluation measurement and Control

43

(c) Business plan A business plan of $10 million for launching a promotional project to improve Bauhaus Grouprsquos operations in Hong Kong which should be supported by a marketing expenses budget and implementation details

In order to evaluate the effectiveness of your recommendations you are required to analyse the projected impact on store locations sales and average spending per customer for the years ending 31 March 2017 and 2018

(25 marks ndash approximately 4 pages)

44

bull Bauhaus started in 1991 on Nathan Road Tsim Sha Tsui as a contemporary fashion store bringing the best of international brands to young trend-setters in Hong Kong [28 stores]

45

46

bull Sales data before and after the promotion

bull How many sales are a result of those promotions

bull Timing of promotion [ Hedonic consumption]

bull Customersrsquo preferences

bull Change of average spending per customers [Increaseddecreased]

bull Competitorsrsquo promotional campaigns

47

bull The median monthly domestic household income for 2014 was HK$23500 (vs for 2013 HK$22400)

48

(The Information Services Department HKSAR April 2015)

Company Shares of Apparel Accessories Value (2011-2015)

(Euromonitor 2016)

49

30 companies

50

51

52

53

Strategy Formulation

Evaluation

Implementation and Execution

54

bull Barits Ho Chong Securities Co Ltd (2006) Company Update Bauhaus International Available at httpwwwmegaseccomhkUploadFile5CTaiwanListco0483HK20Bauhaus20Update2004JANpdf [15 October 2016]

bull Euromonitor International (June 2016)

bull GlobalData (2015) Bauhaus International (Holdings) Limited (483) - Financial and Strategic SWOT Analysis Review Available at httpstoreglobaldatacomcompany-reportsretailingbauhaus-international-holdings-limited-483-financial-and-strategic-swot-analysis-reviewWBWilvp97IU [15 October 2015]

bull Headline Daily rate card 2016 Available at httppaperhkheadlinecomhtmlRatecardpdf [5 December 2016]

bull The Information Services Department Hong Kong Special Administrative Region Government (April 2015) GovHK Website Hong Kong The Facts Available httpwwwgovhkenaboutabouthkfactsheetsdocspopulationpdf [30 October 2016]

bull JCDecaux Rate card 2016 Available at httpwwwjcdecauxcomhkmtr_packagehtml [5 Dec 2016]

bull Skypost Rate card 2016 Available at httpskypostulifestylecomhkresourcesadvertisementftlpdf [5 Dec 2016]

bull TVB Rate card 2016 Available at httpwwwtvbcomtvbsalesratecardratecardphpp=hd_jade [5 December 2016]

55

Business Management and Marketing Strategies

1[Think] - SWOT Analysis

2[Do] - Implementation plan

3[Check] - Evaluation measurement and Control

20

(c) Business plan

A business plan of $10 million for launching a promotional project to improve Bauhaus Grouprsquos operations in Hong Kong which should be supported by a marketing expenses budget and implementation details In order to evaluate the effectiveness of your recommendations you are required to analyse the projected impact on store locations sales and average spending per customer for the years ending 31 March 2017 and 2018

(25 marks ndash approximately 4 pages)

21

bull Inform

bull Persuade amp

bull Remind customers about the Group andor its products

22

You need to consider

bull The target market

bull The nature of the products

bull The stage of the productrsquos life cycle

bull Money available for the promotion

23

bull Question Bauhaus targets WHO with products as its signature categories

bull ldquoBauhaus is principally engaged in the design manufacture wholesale and

retail sales of apparel bags and sacs and accessories under its own brand names of TOUGH and SALAD as well as retail sales of apparel under other third party

brand names in the fashion industry Bauhausrsquos products as well as those sourced from the third party brand names are adopting a trendy amp casual line targeting young consumers with fashion consciousnessrdquo

(Barits Ho Chong Securities Co Ltd 2006)

24

25

bull Bauhaus manufactures and trades a wide range of apparels (服飾)) and accessories for consumers

bull Its products include jeans shirts denim clothes pants tops t-shirts footwear and other leather accessories

bull It also sells accessories including handbags wallets backpack clutches shoulder bags top handles tote bags and caps

bull The company has brand such as BAUHAUS TOUGH Jeansmith SALAD 8020 and SUPERDR

(GlobalData 2015)

26

Growth stage bull Sold a lot + To sell as much as possible

bull Competitors watch amp decide about joining in with a competitor product

bull Growth continues until too may competitors in the market (market saturation)

bull At the end of the growth stage profits starts to decline amp the Group has to spend more money on promotion to keep sales going

bull Spending money on promotion cuts into the Grouprsquos profit

bull ldquoPersuasive promotionrdquo is in place during this stage

27

Maturity stage bull Many competitors have joined ndash market is saturated

bull The only way to sell is to begin to lower the price amp profits decrease

bull It is difficult to tell the different between products since most have the same FAB ndash Features Advantages amp Benefits [ no obvious product differentiation]

bull ldquoPersuasive promotionrdquo becomes more important during this stage

bull The Group TV commercials (or promotion) almost begging the customers to still buy its products because the Group still makes it just as good

28

HK$10000000

10 million

29

Paid amp non personal mass

communication

30

bull Focus on information amp goodwill of the Group

bull Consumer advertising Rational versus emotional appeals

bull Focus on particular product(s) or brand(s)

bull Stimulate demand for specific brands

31

bull What do you want your ads to do

bull Who are you trying to reach [ Target customers]

bull What promotional message do you want to communicate

bull How much does each medium cost

32

Rate card 廣告收費價目表

33

TVB Prime time 1855-2355 (Mon to Sun)

34

Rate (30 sec)

Air time cost (30 sec)

No of spots

F7 $70500 141 (30 sec)

F15 $215640 46 (30 sec)

35

Run-of-page

(Mon-Thur)

Full page

4C

HK$306000

$10000000 306000 = 32 FP

36

Min booking (4 weeks)

HK$36000 X 4

= $144000

bull Sales promotion (促銷) demand-stimulating activity designed to supplement advertising o Coupons

o Premiums

o Contests

o Sweepstakes

o Specialty advertising ndash places the Grouprsquos name address amp advertising message on useful articles that are then distributed to target customers

37

bull Publicity (公眾信息) a non-paid form of advertising that uses mass communication to stimulate demand

o Structured news release to the media

o Coordinating personal communication with a group customers

38

bull Public relations (公共關係) a planned communication effort by the Group to contribute to generally favourable attitudes amp opinions toward the Group amp its products

o Supporting charitable projects

o Supplying volunteers or other resources

o Participating in community-service events

o Sponsorship

o Providing information to customers through newsletters

39

40

Promotional plan

marketing

expenses budget

and

implementation

details

41

Promotional plan

marketing

expenses budget

and

implementation

details

42

Promotional plan

marketing

expenses budget

and

implementation

details

Business Management and Marketing Strategies

1[Think] - SWOT Analysis

2[Do] - Implementation plan

3[Check] - Evaluation measurement and Control

43

(c) Business plan A business plan of $10 million for launching a promotional project to improve Bauhaus Grouprsquos operations in Hong Kong which should be supported by a marketing expenses budget and implementation details

In order to evaluate the effectiveness of your recommendations you are required to analyse the projected impact on store locations sales and average spending per customer for the years ending 31 March 2017 and 2018

(25 marks ndash approximately 4 pages)

44

bull Bauhaus started in 1991 on Nathan Road Tsim Sha Tsui as a contemporary fashion store bringing the best of international brands to young trend-setters in Hong Kong [28 stores]

45

46

bull Sales data before and after the promotion

bull How many sales are a result of those promotions

bull Timing of promotion [ Hedonic consumption]

bull Customersrsquo preferences

bull Change of average spending per customers [Increaseddecreased]

bull Competitorsrsquo promotional campaigns

47

bull The median monthly domestic household income for 2014 was HK$23500 (vs for 2013 HK$22400)

48

(The Information Services Department HKSAR April 2015)

Company Shares of Apparel Accessories Value (2011-2015)

(Euromonitor 2016)

49

30 companies

50

51

52

53

Strategy Formulation

Evaluation

Implementation and Execution

54

bull Barits Ho Chong Securities Co Ltd (2006) Company Update Bauhaus International Available at httpwwwmegaseccomhkUploadFile5CTaiwanListco0483HK20Bauhaus20Update2004JANpdf [15 October 2016]

bull Euromonitor International (June 2016)

bull GlobalData (2015) Bauhaus International (Holdings) Limited (483) - Financial and Strategic SWOT Analysis Review Available at httpstoreglobaldatacomcompany-reportsretailingbauhaus-international-holdings-limited-483-financial-and-strategic-swot-analysis-reviewWBWilvp97IU [15 October 2015]

bull Headline Daily rate card 2016 Available at httppaperhkheadlinecomhtmlRatecardpdf [5 December 2016]

bull The Information Services Department Hong Kong Special Administrative Region Government (April 2015) GovHK Website Hong Kong The Facts Available httpwwwgovhkenaboutabouthkfactsheetsdocspopulationpdf [30 October 2016]

bull JCDecaux Rate card 2016 Available at httpwwwjcdecauxcomhkmtr_packagehtml [5 Dec 2016]

bull Skypost Rate card 2016 Available at httpskypostulifestylecomhkresourcesadvertisementftlpdf [5 Dec 2016]

bull TVB Rate card 2016 Available at httpwwwtvbcomtvbsalesratecardratecardphpp=hd_jade [5 December 2016]

55

(c) Business plan

A business plan of $10 million for launching a promotional project to improve Bauhaus Grouprsquos operations in Hong Kong which should be supported by a marketing expenses budget and implementation details In order to evaluate the effectiveness of your recommendations you are required to analyse the projected impact on store locations sales and average spending per customer for the years ending 31 March 2017 and 2018

(25 marks ndash approximately 4 pages)

21

bull Inform

bull Persuade amp

bull Remind customers about the Group andor its products

22

You need to consider

bull The target market

bull The nature of the products

bull The stage of the productrsquos life cycle

bull Money available for the promotion

23

bull Question Bauhaus targets WHO with products as its signature categories

bull ldquoBauhaus is principally engaged in the design manufacture wholesale and

retail sales of apparel bags and sacs and accessories under its own brand names of TOUGH and SALAD as well as retail sales of apparel under other third party

brand names in the fashion industry Bauhausrsquos products as well as those sourced from the third party brand names are adopting a trendy amp casual line targeting young consumers with fashion consciousnessrdquo

(Barits Ho Chong Securities Co Ltd 2006)

24

25

bull Bauhaus manufactures and trades a wide range of apparels (服飾)) and accessories for consumers

bull Its products include jeans shirts denim clothes pants tops t-shirts footwear and other leather accessories

bull It also sells accessories including handbags wallets backpack clutches shoulder bags top handles tote bags and caps

bull The company has brand such as BAUHAUS TOUGH Jeansmith SALAD 8020 and SUPERDR

(GlobalData 2015)

26

Growth stage bull Sold a lot + To sell as much as possible

bull Competitors watch amp decide about joining in with a competitor product

bull Growth continues until too may competitors in the market (market saturation)

bull At the end of the growth stage profits starts to decline amp the Group has to spend more money on promotion to keep sales going

bull Spending money on promotion cuts into the Grouprsquos profit

bull ldquoPersuasive promotionrdquo is in place during this stage

27

Maturity stage bull Many competitors have joined ndash market is saturated

bull The only way to sell is to begin to lower the price amp profits decrease

bull It is difficult to tell the different between products since most have the same FAB ndash Features Advantages amp Benefits [ no obvious product differentiation]

bull ldquoPersuasive promotionrdquo becomes more important during this stage

bull The Group TV commercials (or promotion) almost begging the customers to still buy its products because the Group still makes it just as good

28

HK$10000000

10 million

29

Paid amp non personal mass

communication

30

bull Focus on information amp goodwill of the Group

bull Consumer advertising Rational versus emotional appeals

bull Focus on particular product(s) or brand(s)

bull Stimulate demand for specific brands

31

bull What do you want your ads to do

bull Who are you trying to reach [ Target customers]

bull What promotional message do you want to communicate

bull How much does each medium cost

32

Rate card 廣告收費價目表

33

TVB Prime time 1855-2355 (Mon to Sun)

34

Rate (30 sec)

Air time cost (30 sec)

No of spots

F7 $70500 141 (30 sec)

F15 $215640 46 (30 sec)

35

Run-of-page

(Mon-Thur)

Full page

4C

HK$306000

$10000000 306000 = 32 FP

36

Min booking (4 weeks)

HK$36000 X 4

= $144000

bull Sales promotion (促銷) demand-stimulating activity designed to supplement advertising o Coupons

o Premiums

o Contests

o Sweepstakes

o Specialty advertising ndash places the Grouprsquos name address amp advertising message on useful articles that are then distributed to target customers

37

bull Publicity (公眾信息) a non-paid form of advertising that uses mass communication to stimulate demand

o Structured news release to the media

o Coordinating personal communication with a group customers

38

bull Public relations (公共關係) a planned communication effort by the Group to contribute to generally favourable attitudes amp opinions toward the Group amp its products

o Supporting charitable projects

o Supplying volunteers or other resources

o Participating in community-service events

o Sponsorship

o Providing information to customers through newsletters

39

40

Promotional plan

marketing

expenses budget

and

implementation

details

41

Promotional plan

marketing

expenses budget

and

implementation

details

42

Promotional plan

marketing

expenses budget

and

implementation

details

Business Management and Marketing Strategies

1[Think] - SWOT Analysis

2[Do] - Implementation plan

3[Check] - Evaluation measurement and Control

43

(c) Business plan A business plan of $10 million for launching a promotional project to improve Bauhaus Grouprsquos operations in Hong Kong which should be supported by a marketing expenses budget and implementation details

In order to evaluate the effectiveness of your recommendations you are required to analyse the projected impact on store locations sales and average spending per customer for the years ending 31 March 2017 and 2018

(25 marks ndash approximately 4 pages)

44

bull Bauhaus started in 1991 on Nathan Road Tsim Sha Tsui as a contemporary fashion store bringing the best of international brands to young trend-setters in Hong Kong [28 stores]

45

46

bull Sales data before and after the promotion

bull How many sales are a result of those promotions

bull Timing of promotion [ Hedonic consumption]

bull Customersrsquo preferences

bull Change of average spending per customers [Increaseddecreased]

bull Competitorsrsquo promotional campaigns

47

bull The median monthly domestic household income for 2014 was HK$23500 (vs for 2013 HK$22400)

48

(The Information Services Department HKSAR April 2015)

Company Shares of Apparel Accessories Value (2011-2015)

(Euromonitor 2016)

49

30 companies

50

51

52

53

Strategy Formulation

Evaluation

Implementation and Execution

54

bull Barits Ho Chong Securities Co Ltd (2006) Company Update Bauhaus International Available at httpwwwmegaseccomhkUploadFile5CTaiwanListco0483HK20Bauhaus20Update2004JANpdf [15 October 2016]

bull Euromonitor International (June 2016)

bull GlobalData (2015) Bauhaus International (Holdings) Limited (483) - Financial and Strategic SWOT Analysis Review Available at httpstoreglobaldatacomcompany-reportsretailingbauhaus-international-holdings-limited-483-financial-and-strategic-swot-analysis-reviewWBWilvp97IU [15 October 2015]

bull Headline Daily rate card 2016 Available at httppaperhkheadlinecomhtmlRatecardpdf [5 December 2016]

bull The Information Services Department Hong Kong Special Administrative Region Government (April 2015) GovHK Website Hong Kong The Facts Available httpwwwgovhkenaboutabouthkfactsheetsdocspopulationpdf [30 October 2016]

bull JCDecaux Rate card 2016 Available at httpwwwjcdecauxcomhkmtr_packagehtml [5 Dec 2016]

bull Skypost Rate card 2016 Available at httpskypostulifestylecomhkresourcesadvertisementftlpdf [5 Dec 2016]

bull TVB Rate card 2016 Available at httpwwwtvbcomtvbsalesratecardratecardphpp=hd_jade [5 December 2016]

55

bull Inform

bull Persuade amp

bull Remind customers about the Group andor its products

22

You need to consider

bull The target market

bull The nature of the products

bull The stage of the productrsquos life cycle

bull Money available for the promotion

23

bull Question Bauhaus targets WHO with products as its signature categories

bull ldquoBauhaus is principally engaged in the design manufacture wholesale and

retail sales of apparel bags and sacs and accessories under its own brand names of TOUGH and SALAD as well as retail sales of apparel under other third party

brand names in the fashion industry Bauhausrsquos products as well as those sourced from the third party brand names are adopting a trendy amp casual line targeting young consumers with fashion consciousnessrdquo

(Barits Ho Chong Securities Co Ltd 2006)

24

25

bull Bauhaus manufactures and trades a wide range of apparels (服飾)) and accessories for consumers

bull Its products include jeans shirts denim clothes pants tops t-shirts footwear and other leather accessories

bull It also sells accessories including handbags wallets backpack clutches shoulder bags top handles tote bags and caps

bull The company has brand such as BAUHAUS TOUGH Jeansmith SALAD 8020 and SUPERDR

(GlobalData 2015)

26

Growth stage bull Sold a lot + To sell as much as possible

bull Competitors watch amp decide about joining in with a competitor product

bull Growth continues until too may competitors in the market (market saturation)

bull At the end of the growth stage profits starts to decline amp the Group has to spend more money on promotion to keep sales going

bull Spending money on promotion cuts into the Grouprsquos profit

bull ldquoPersuasive promotionrdquo is in place during this stage

27

Maturity stage bull Many competitors have joined ndash market is saturated

bull The only way to sell is to begin to lower the price amp profits decrease

bull It is difficult to tell the different between products since most have the same FAB ndash Features Advantages amp Benefits [ no obvious product differentiation]

bull ldquoPersuasive promotionrdquo becomes more important during this stage

bull The Group TV commercials (or promotion) almost begging the customers to still buy its products because the Group still makes it just as good

28

HK$10000000

10 million

29

Paid amp non personal mass

communication

30

bull Focus on information amp goodwill of the Group

bull Consumer advertising Rational versus emotional appeals

bull Focus on particular product(s) or brand(s)

bull Stimulate demand for specific brands

31

bull What do you want your ads to do

bull Who are you trying to reach [ Target customers]

bull What promotional message do you want to communicate

bull How much does each medium cost

32

Rate card 廣告收費價目表

33

TVB Prime time 1855-2355 (Mon to Sun)

34

Rate (30 sec)

Air time cost (30 sec)

No of spots

F7 $70500 141 (30 sec)

F15 $215640 46 (30 sec)

35

Run-of-page

(Mon-Thur)

Full page

4C

HK$306000

$10000000 306000 = 32 FP

36

Min booking (4 weeks)

HK$36000 X 4

= $144000

bull Sales promotion (促銷) demand-stimulating activity designed to supplement advertising o Coupons

o Premiums

o Contests

o Sweepstakes

o Specialty advertising ndash places the Grouprsquos name address amp advertising message on useful articles that are then distributed to target customers

37

bull Publicity (公眾信息) a non-paid form of advertising that uses mass communication to stimulate demand

o Structured news release to the media

o Coordinating personal communication with a group customers

38

bull Public relations (公共關係) a planned communication effort by the Group to contribute to generally favourable attitudes amp opinions toward the Group amp its products

o Supporting charitable projects

o Supplying volunteers or other resources

o Participating in community-service events

o Sponsorship

o Providing information to customers through newsletters

39

40

Promotional plan

marketing

expenses budget

and

implementation

details

41

Promotional plan

marketing

expenses budget

and

implementation

details

42

Promotional plan

marketing

expenses budget

and

implementation

details

Business Management and Marketing Strategies

1[Think] - SWOT Analysis

2[Do] - Implementation plan

3[Check] - Evaluation measurement and Control

43

(c) Business plan A business plan of $10 million for launching a promotional project to improve Bauhaus Grouprsquos operations in Hong Kong which should be supported by a marketing expenses budget and implementation details

In order to evaluate the effectiveness of your recommendations you are required to analyse the projected impact on store locations sales and average spending per customer for the years ending 31 March 2017 and 2018

(25 marks ndash approximately 4 pages)

44

bull Bauhaus started in 1991 on Nathan Road Tsim Sha Tsui as a contemporary fashion store bringing the best of international brands to young trend-setters in Hong Kong [28 stores]

45

46

bull Sales data before and after the promotion

bull How many sales are a result of those promotions

bull Timing of promotion [ Hedonic consumption]

bull Customersrsquo preferences

bull Change of average spending per customers [Increaseddecreased]

bull Competitorsrsquo promotional campaigns

47

bull The median monthly domestic household income for 2014 was HK$23500 (vs for 2013 HK$22400)

48

(The Information Services Department HKSAR April 2015)

Company Shares of Apparel Accessories Value (2011-2015)

(Euromonitor 2016)

49

30 companies

50

51

52

53

Strategy Formulation

Evaluation

Implementation and Execution

54

bull Barits Ho Chong Securities Co Ltd (2006) Company Update Bauhaus International Available at httpwwwmegaseccomhkUploadFile5CTaiwanListco0483HK20Bauhaus20Update2004JANpdf [15 October 2016]

bull Euromonitor International (June 2016)

bull GlobalData (2015) Bauhaus International (Holdings) Limited (483) - Financial and Strategic SWOT Analysis Review Available at httpstoreglobaldatacomcompany-reportsretailingbauhaus-international-holdings-limited-483-financial-and-strategic-swot-analysis-reviewWBWilvp97IU [15 October 2015]

bull Headline Daily rate card 2016 Available at httppaperhkheadlinecomhtmlRatecardpdf [5 December 2016]

bull The Information Services Department Hong Kong Special Administrative Region Government (April 2015) GovHK Website Hong Kong The Facts Available httpwwwgovhkenaboutabouthkfactsheetsdocspopulationpdf [30 October 2016]

bull JCDecaux Rate card 2016 Available at httpwwwjcdecauxcomhkmtr_packagehtml [5 Dec 2016]

bull Skypost Rate card 2016 Available at httpskypostulifestylecomhkresourcesadvertisementftlpdf [5 Dec 2016]

bull TVB Rate card 2016 Available at httpwwwtvbcomtvbsalesratecardratecardphpp=hd_jade [5 December 2016]

55

You need to consider

bull The target market

bull The nature of the products

bull The stage of the productrsquos life cycle

bull Money available for the promotion

23

bull Question Bauhaus targets WHO with products as its signature categories

bull ldquoBauhaus is principally engaged in the design manufacture wholesale and

retail sales of apparel bags and sacs and accessories under its own brand names of TOUGH and SALAD as well as retail sales of apparel under other third party

brand names in the fashion industry Bauhausrsquos products as well as those sourced from the third party brand names are adopting a trendy amp casual line targeting young consumers with fashion consciousnessrdquo

(Barits Ho Chong Securities Co Ltd 2006)

24

25

bull Bauhaus manufactures and trades a wide range of apparels (服飾)) and accessories for consumers

bull Its products include jeans shirts denim clothes pants tops t-shirts footwear and other leather accessories

bull It also sells accessories including handbags wallets backpack clutches shoulder bags top handles tote bags and caps

bull The company has brand such as BAUHAUS TOUGH Jeansmith SALAD 8020 and SUPERDR

(GlobalData 2015)

26

Growth stage bull Sold a lot + To sell as much as possible

bull Competitors watch amp decide about joining in with a competitor product

bull Growth continues until too may competitors in the market (market saturation)

bull At the end of the growth stage profits starts to decline amp the Group has to spend more money on promotion to keep sales going

bull Spending money on promotion cuts into the Grouprsquos profit

bull ldquoPersuasive promotionrdquo is in place during this stage

27

Maturity stage bull Many competitors have joined ndash market is saturated

bull The only way to sell is to begin to lower the price amp profits decrease

bull It is difficult to tell the different between products since most have the same FAB ndash Features Advantages amp Benefits [ no obvious product differentiation]

bull ldquoPersuasive promotionrdquo becomes more important during this stage

bull The Group TV commercials (or promotion) almost begging the customers to still buy its products because the Group still makes it just as good

28

HK$10000000

10 million

29

Paid amp non personal mass

communication

30

bull Focus on information amp goodwill of the Group

bull Consumer advertising Rational versus emotional appeals

bull Focus on particular product(s) or brand(s)

bull Stimulate demand for specific brands

31

bull What do you want your ads to do

bull Who are you trying to reach [ Target customers]

bull What promotional message do you want to communicate

bull How much does each medium cost

32

Rate card 廣告收費價目表

33

TVB Prime time 1855-2355 (Mon to Sun)

34

Rate (30 sec)

Air time cost (30 sec)

No of spots

F7 $70500 141 (30 sec)

F15 $215640 46 (30 sec)

35

Run-of-page

(Mon-Thur)

Full page

4C

HK$306000

$10000000 306000 = 32 FP

36

Min booking (4 weeks)

HK$36000 X 4

= $144000

bull Sales promotion (促銷) demand-stimulating activity designed to supplement advertising o Coupons

o Premiums

o Contests

o Sweepstakes

o Specialty advertising ndash places the Grouprsquos name address amp advertising message on useful articles that are then distributed to target customers

37

bull Publicity (公眾信息) a non-paid form of advertising that uses mass communication to stimulate demand

o Structured news release to the media

o Coordinating personal communication with a group customers

38

bull Public relations (公共關係) a planned communication effort by the Group to contribute to generally favourable attitudes amp opinions toward the Group amp its products

o Supporting charitable projects

o Supplying volunteers or other resources

o Participating in community-service events

o Sponsorship

o Providing information to customers through newsletters

39

40

Promotional plan

marketing

expenses budget

and

implementation

details

41

Promotional plan

marketing

expenses budget

and

implementation

details

42

Promotional plan

marketing

expenses budget

and

implementation

details

Business Management and Marketing Strategies

1[Think] - SWOT Analysis

2[Do] - Implementation plan

3[Check] - Evaluation measurement and Control

43

(c) Business plan A business plan of $10 million for launching a promotional project to improve Bauhaus Grouprsquos operations in Hong Kong which should be supported by a marketing expenses budget and implementation details

In order to evaluate the effectiveness of your recommendations you are required to analyse the projected impact on store locations sales and average spending per customer for the years ending 31 March 2017 and 2018

(25 marks ndash approximately 4 pages)

44

bull Bauhaus started in 1991 on Nathan Road Tsim Sha Tsui as a contemporary fashion store bringing the best of international brands to young trend-setters in Hong Kong [28 stores]

45

46

bull Sales data before and after the promotion

bull How many sales are a result of those promotions

bull Timing of promotion [ Hedonic consumption]

bull Customersrsquo preferences

bull Change of average spending per customers [Increaseddecreased]

bull Competitorsrsquo promotional campaigns

47

bull The median monthly domestic household income for 2014 was HK$23500 (vs for 2013 HK$22400)

48

(The Information Services Department HKSAR April 2015)

Company Shares of Apparel Accessories Value (2011-2015)

(Euromonitor 2016)

49

30 companies

50

51

52

53

Strategy Formulation

Evaluation

Implementation and Execution

54

bull Barits Ho Chong Securities Co Ltd (2006) Company Update Bauhaus International Available at httpwwwmegaseccomhkUploadFile5CTaiwanListco0483HK20Bauhaus20Update2004JANpdf [15 October 2016]

bull Euromonitor International (June 2016)

bull GlobalData (2015) Bauhaus International (Holdings) Limited (483) - Financial and Strategic SWOT Analysis Review Available at httpstoreglobaldatacomcompany-reportsretailingbauhaus-international-holdings-limited-483-financial-and-strategic-swot-analysis-reviewWBWilvp97IU [15 October 2015]

bull Headline Daily rate card 2016 Available at httppaperhkheadlinecomhtmlRatecardpdf [5 December 2016]

bull The Information Services Department Hong Kong Special Administrative Region Government (April 2015) GovHK Website Hong Kong The Facts Available httpwwwgovhkenaboutabouthkfactsheetsdocspopulationpdf [30 October 2016]

bull JCDecaux Rate card 2016 Available at httpwwwjcdecauxcomhkmtr_packagehtml [5 Dec 2016]

bull Skypost Rate card 2016 Available at httpskypostulifestylecomhkresourcesadvertisementftlpdf [5 Dec 2016]

bull TVB Rate card 2016 Available at httpwwwtvbcomtvbsalesratecardratecardphpp=hd_jade [5 December 2016]

55

bull Question Bauhaus targets WHO with products as its signature categories

bull ldquoBauhaus is principally engaged in the design manufacture wholesale and

retail sales of apparel bags and sacs and accessories under its own brand names of TOUGH and SALAD as well as retail sales of apparel under other third party

brand names in the fashion industry Bauhausrsquos products as well as those sourced from the third party brand names are adopting a trendy amp casual line targeting young consumers with fashion consciousnessrdquo

(Barits Ho Chong Securities Co Ltd 2006)

24

25

bull Bauhaus manufactures and trades a wide range of apparels (服飾)) and accessories for consumers

bull Its products include jeans shirts denim clothes pants tops t-shirts footwear and other leather accessories

bull It also sells accessories including handbags wallets backpack clutches shoulder bags top handles tote bags and caps

bull The company has brand such as BAUHAUS TOUGH Jeansmith SALAD 8020 and SUPERDR

(GlobalData 2015)

26

Growth stage bull Sold a lot + To sell as much as possible

bull Competitors watch amp decide about joining in with a competitor product

bull Growth continues until too may competitors in the market (market saturation)

bull At the end of the growth stage profits starts to decline amp the Group has to spend more money on promotion to keep sales going

bull Spending money on promotion cuts into the Grouprsquos profit

bull ldquoPersuasive promotionrdquo is in place during this stage

27

Maturity stage bull Many competitors have joined ndash market is saturated

bull The only way to sell is to begin to lower the price amp profits decrease

bull It is difficult to tell the different between products since most have the same FAB ndash Features Advantages amp Benefits [ no obvious product differentiation]

bull ldquoPersuasive promotionrdquo becomes more important during this stage

bull The Group TV commercials (or promotion) almost begging the customers to still buy its products because the Group still makes it just as good

28

HK$10000000

10 million

29

Paid amp non personal mass

communication

30

bull Focus on information amp goodwill of the Group

bull Consumer advertising Rational versus emotional appeals

bull Focus on particular product(s) or brand(s)

bull Stimulate demand for specific brands

31

bull What do you want your ads to do

bull Who are you trying to reach [ Target customers]

bull What promotional message do you want to communicate

bull How much does each medium cost

32

Rate card 廣告收費價目表

33

TVB Prime time 1855-2355 (Mon to Sun)

34

Rate (30 sec)

Air time cost (30 sec)

No of spots

F7 $70500 141 (30 sec)

F15 $215640 46 (30 sec)

35

Run-of-page

(Mon-Thur)

Full page

4C

HK$306000

$10000000 306000 = 32 FP

36

Min booking (4 weeks)

HK$36000 X 4

= $144000

bull Sales promotion (促銷) demand-stimulating activity designed to supplement advertising o Coupons

o Premiums

o Contests

o Sweepstakes

o Specialty advertising ndash places the Grouprsquos name address amp advertising message on useful articles that are then distributed to target customers

37

bull Publicity (公眾信息) a non-paid form of advertising that uses mass communication to stimulate demand

o Structured news release to the media

o Coordinating personal communication with a group customers

38

bull Public relations (公共關係) a planned communication effort by the Group to contribute to generally favourable attitudes amp opinions toward the Group amp its products

o Supporting charitable projects

o Supplying volunteers or other resources

o Participating in community-service events

o Sponsorship

o Providing information to customers through newsletters

39

40

Promotional plan

marketing

expenses budget

and

implementation

details

41

Promotional plan

marketing

expenses budget

and

implementation

details

42

Promotional plan

marketing

expenses budget

and

implementation

details

Business Management and Marketing Strategies

1[Think] - SWOT Analysis

2[Do] - Implementation plan

3[Check] - Evaluation measurement and Control

43

(c) Business plan A business plan of $10 million for launching a promotional project to improve Bauhaus Grouprsquos operations in Hong Kong which should be supported by a marketing expenses budget and implementation details

In order to evaluate the effectiveness of your recommendations you are required to analyse the projected impact on store locations sales and average spending per customer for the years ending 31 March 2017 and 2018

(25 marks ndash approximately 4 pages)

44

bull Bauhaus started in 1991 on Nathan Road Tsim Sha Tsui as a contemporary fashion store bringing the best of international brands to young trend-setters in Hong Kong [28 stores]

45

46

bull Sales data before and after the promotion

bull How many sales are a result of those promotions

bull Timing of promotion [ Hedonic consumption]

bull Customersrsquo preferences

bull Change of average spending per customers [Increaseddecreased]

bull Competitorsrsquo promotional campaigns

47

bull The median monthly domestic household income for 2014 was HK$23500 (vs for 2013 HK$22400)

48

(The Information Services Department HKSAR April 2015)

Company Shares of Apparel Accessories Value (2011-2015)

(Euromonitor 2016)

49

30 companies

50

51

52

53

Strategy Formulation

Evaluation

Implementation and Execution

54

bull Barits Ho Chong Securities Co Ltd (2006) Company Update Bauhaus International Available at httpwwwmegaseccomhkUploadFile5CTaiwanListco0483HK20Bauhaus20Update2004JANpdf [15 October 2016]

bull Euromonitor International (June 2016)

bull GlobalData (2015) Bauhaus International (Holdings) Limited (483) - Financial and Strategic SWOT Analysis Review Available at httpstoreglobaldatacomcompany-reportsretailingbauhaus-international-holdings-limited-483-financial-and-strategic-swot-analysis-reviewWBWilvp97IU [15 October 2015]

bull Headline Daily rate card 2016 Available at httppaperhkheadlinecomhtmlRatecardpdf [5 December 2016]

bull The Information Services Department Hong Kong Special Administrative Region Government (April 2015) GovHK Website Hong Kong The Facts Available httpwwwgovhkenaboutabouthkfactsheetsdocspopulationpdf [30 October 2016]

bull JCDecaux Rate card 2016 Available at httpwwwjcdecauxcomhkmtr_packagehtml [5 Dec 2016]

bull Skypost Rate card 2016 Available at httpskypostulifestylecomhkresourcesadvertisementftlpdf [5 Dec 2016]

bull TVB Rate card 2016 Available at httpwwwtvbcomtvbsalesratecardratecardphpp=hd_jade [5 December 2016]

55

25

bull Bauhaus manufactures and trades a wide range of apparels (服飾)) and accessories for consumers

bull Its products include jeans shirts denim clothes pants tops t-shirts footwear and other leather accessories

bull It also sells accessories including handbags wallets backpack clutches shoulder bags top handles tote bags and caps

bull The company has brand such as BAUHAUS TOUGH Jeansmith SALAD 8020 and SUPERDR

(GlobalData 2015)

26

Growth stage bull Sold a lot + To sell as much as possible

bull Competitors watch amp decide about joining in with a competitor product

bull Growth continues until too may competitors in the market (market saturation)

bull At the end of the growth stage profits starts to decline amp the Group has to spend more money on promotion to keep sales going

bull Spending money on promotion cuts into the Grouprsquos profit

bull ldquoPersuasive promotionrdquo is in place during this stage

27

Maturity stage bull Many competitors have joined ndash market is saturated

bull The only way to sell is to begin to lower the price amp profits decrease

bull It is difficult to tell the different between products since most have the same FAB ndash Features Advantages amp Benefits [ no obvious product differentiation]

bull ldquoPersuasive promotionrdquo becomes more important during this stage

bull The Group TV commercials (or promotion) almost begging the customers to still buy its products because the Group still makes it just as good

28

HK$10000000

10 million

29

Paid amp non personal mass

communication

30

bull Focus on information amp goodwill of the Group

bull Consumer advertising Rational versus emotional appeals

bull Focus on particular product(s) or brand(s)

bull Stimulate demand for specific brands

31

bull What do you want your ads to do

bull Who are you trying to reach [ Target customers]

bull What promotional message do you want to communicate

bull How much does each medium cost

32

Rate card 廣告收費價目表

33

TVB Prime time 1855-2355 (Mon to Sun)

34

Rate (30 sec)

Air time cost (30 sec)

No of spots

F7 $70500 141 (30 sec)

F15 $215640 46 (30 sec)

35

Run-of-page

(Mon-Thur)

Full page

4C

HK$306000

$10000000 306000 = 32 FP

36

Min booking (4 weeks)

HK$36000 X 4

= $144000

bull Sales promotion (促銷) demand-stimulating activity designed to supplement advertising o Coupons

o Premiums

o Contests

o Sweepstakes

o Specialty advertising ndash places the Grouprsquos name address amp advertising message on useful articles that are then distributed to target customers

37

bull Publicity (公眾信息) a non-paid form of advertising that uses mass communication to stimulate demand

o Structured news release to the media

o Coordinating personal communication with a group customers

38

bull Public relations (公共關係) a planned communication effort by the Group to contribute to generally favourable attitudes amp opinions toward the Group amp its products

o Supporting charitable projects

o Supplying volunteers or other resources

o Participating in community-service events

o Sponsorship

o Providing information to customers through newsletters

39

40

Promotional plan

marketing

expenses budget

and

implementation

details

41

Promotional plan

marketing

expenses budget

and

implementation

details

42

Promotional plan

marketing

expenses budget

and

implementation

details

Business Management and Marketing Strategies

1[Think] - SWOT Analysis

2[Do] - Implementation plan

3[Check] - Evaluation measurement and Control

43

(c) Business plan A business plan of $10 million for launching a promotional project to improve Bauhaus Grouprsquos operations in Hong Kong which should be supported by a marketing expenses budget and implementation details

In order to evaluate the effectiveness of your recommendations you are required to analyse the projected impact on store locations sales and average spending per customer for the years ending 31 March 2017 and 2018

(25 marks ndash approximately 4 pages)

44

bull Bauhaus started in 1991 on Nathan Road Tsim Sha Tsui as a contemporary fashion store bringing the best of international brands to young trend-setters in Hong Kong [28 stores]

45

46

bull Sales data before and after the promotion

bull How many sales are a result of those promotions

bull Timing of promotion [ Hedonic consumption]

bull Customersrsquo preferences

bull Change of average spending per customers [Increaseddecreased]

bull Competitorsrsquo promotional campaigns

47

bull The median monthly domestic household income for 2014 was HK$23500 (vs for 2013 HK$22400)

48

(The Information Services Department HKSAR April 2015)

Company Shares of Apparel Accessories Value (2011-2015)

(Euromonitor 2016)

49

30 companies

50

51

52

53

Strategy Formulation

Evaluation

Implementation and Execution

54

bull Barits Ho Chong Securities Co Ltd (2006) Company Update Bauhaus International Available at httpwwwmegaseccomhkUploadFile5CTaiwanListco0483HK20Bauhaus20Update2004JANpdf [15 October 2016]

bull Euromonitor International (June 2016)

bull GlobalData (2015) Bauhaus International (Holdings) Limited (483) - Financial and Strategic SWOT Analysis Review Available at httpstoreglobaldatacomcompany-reportsretailingbauhaus-international-holdings-limited-483-financial-and-strategic-swot-analysis-reviewWBWilvp97IU [15 October 2015]

bull Headline Daily rate card 2016 Available at httppaperhkheadlinecomhtmlRatecardpdf [5 December 2016]

bull The Information Services Department Hong Kong Special Administrative Region Government (April 2015) GovHK Website Hong Kong The Facts Available httpwwwgovhkenaboutabouthkfactsheetsdocspopulationpdf [30 October 2016]

bull JCDecaux Rate card 2016 Available at httpwwwjcdecauxcomhkmtr_packagehtml [5 Dec 2016]

bull Skypost Rate card 2016 Available at httpskypostulifestylecomhkresourcesadvertisementftlpdf [5 Dec 2016]

bull TVB Rate card 2016 Available at httpwwwtvbcomtvbsalesratecardratecardphpp=hd_jade [5 December 2016]

55

26

Growth stage bull Sold a lot + To sell as much as possible

bull Competitors watch amp decide about joining in with a competitor product

bull Growth continues until too may competitors in the market (market saturation)

bull At the end of the growth stage profits starts to decline amp the Group has to spend more money on promotion to keep sales going

bull Spending money on promotion cuts into the Grouprsquos profit

bull ldquoPersuasive promotionrdquo is in place during this stage

27

Maturity stage bull Many competitors have joined ndash market is saturated

bull The only way to sell is to begin to lower the price amp profits decrease

bull It is difficult to tell the different between products since most have the same FAB ndash Features Advantages amp Benefits [ no obvious product differentiation]

bull ldquoPersuasive promotionrdquo becomes more important during this stage

bull The Group TV commercials (or promotion) almost begging the customers to still buy its products because the Group still makes it just as good

28

HK$10000000

10 million

29

Paid amp non personal mass

communication

30

bull Focus on information amp goodwill of the Group

bull Consumer advertising Rational versus emotional appeals

bull Focus on particular product(s) or brand(s)

bull Stimulate demand for specific brands

31

bull What do you want your ads to do

bull Who are you trying to reach [ Target customers]

bull What promotional message do you want to communicate

bull How much does each medium cost

32

Rate card 廣告收費價目表

33

TVB Prime time 1855-2355 (Mon to Sun)

34

Rate (30 sec)

Air time cost (30 sec)

No of spots

F7 $70500 141 (30 sec)

F15 $215640 46 (30 sec)

35

Run-of-page

(Mon-Thur)

Full page

4C

HK$306000

$10000000 306000 = 32 FP

36

Min booking (4 weeks)

HK$36000 X 4

= $144000

bull Sales promotion (促銷) demand-stimulating activity designed to supplement advertising o Coupons

o Premiums

o Contests

o Sweepstakes

o Specialty advertising ndash places the Grouprsquos name address amp advertising message on useful articles that are then distributed to target customers

37

bull Publicity (公眾信息) a non-paid form of advertising that uses mass communication to stimulate demand

o Structured news release to the media

o Coordinating personal communication with a group customers

38

bull Public relations (公共關係) a planned communication effort by the Group to contribute to generally favourable attitudes amp opinions toward the Group amp its products

o Supporting charitable projects

o Supplying volunteers or other resources

o Participating in community-service events

o Sponsorship

o Providing information to customers through newsletters

39

40

Promotional plan

marketing

expenses budget

and

implementation

details

41

Promotional plan

marketing

expenses budget

and

implementation

details

42

Promotional plan

marketing

expenses budget

and

implementation

details

Business Management and Marketing Strategies

1[Think] - SWOT Analysis

2[Do] - Implementation plan

3[Check] - Evaluation measurement and Control

43

(c) Business plan A business plan of $10 million for launching a promotional project to improve Bauhaus Grouprsquos operations in Hong Kong which should be supported by a marketing expenses budget and implementation details

In order to evaluate the effectiveness of your recommendations you are required to analyse the projected impact on store locations sales and average spending per customer for the years ending 31 March 2017 and 2018

(25 marks ndash approximately 4 pages)

44

bull Bauhaus started in 1991 on Nathan Road Tsim Sha Tsui as a contemporary fashion store bringing the best of international brands to young trend-setters in Hong Kong [28 stores]

45

46

bull Sales data before and after the promotion

bull How many sales are a result of those promotions

bull Timing of promotion [ Hedonic consumption]

bull Customersrsquo preferences

bull Change of average spending per customers [Increaseddecreased]

bull Competitorsrsquo promotional campaigns

47

bull The median monthly domestic household income for 2014 was HK$23500 (vs for 2013 HK$22400)

48

(The Information Services Department HKSAR April 2015)

Company Shares of Apparel Accessories Value (2011-2015)

(Euromonitor 2016)

49

30 companies

50

51

52

53

Strategy Formulation

Evaluation

Implementation and Execution

54

bull Barits Ho Chong Securities Co Ltd (2006) Company Update Bauhaus International Available at httpwwwmegaseccomhkUploadFile5CTaiwanListco0483HK20Bauhaus20Update2004JANpdf [15 October 2016]

bull Euromonitor International (June 2016)

bull GlobalData (2015) Bauhaus International (Holdings) Limited (483) - Financial and Strategic SWOT Analysis Review Available at httpstoreglobaldatacomcompany-reportsretailingbauhaus-international-holdings-limited-483-financial-and-strategic-swot-analysis-reviewWBWilvp97IU [15 October 2015]

bull Headline Daily rate card 2016 Available at httppaperhkheadlinecomhtmlRatecardpdf [5 December 2016]

bull The Information Services Department Hong Kong Special Administrative Region Government (April 2015) GovHK Website Hong Kong The Facts Available httpwwwgovhkenaboutabouthkfactsheetsdocspopulationpdf [30 October 2016]

bull JCDecaux Rate card 2016 Available at httpwwwjcdecauxcomhkmtr_packagehtml [5 Dec 2016]

bull Skypost Rate card 2016 Available at httpskypostulifestylecomhkresourcesadvertisementftlpdf [5 Dec 2016]

bull TVB Rate card 2016 Available at httpwwwtvbcomtvbsalesratecardratecardphpp=hd_jade [5 December 2016]

55

Growth stage bull Sold a lot + To sell as much as possible

bull Competitors watch amp decide about joining in with a competitor product

bull Growth continues until too may competitors in the market (market saturation)

bull At the end of the growth stage profits starts to decline amp the Group has to spend more money on promotion to keep sales going

bull Spending money on promotion cuts into the Grouprsquos profit

bull ldquoPersuasive promotionrdquo is in place during this stage

27

Maturity stage bull Many competitors have joined ndash market is saturated

bull The only way to sell is to begin to lower the price amp profits decrease

bull It is difficult to tell the different between products since most have the same FAB ndash Features Advantages amp Benefits [ no obvious product differentiation]

bull ldquoPersuasive promotionrdquo becomes more important during this stage

bull The Group TV commercials (or promotion) almost begging the customers to still buy its products because the Group still makes it just as good

28

HK$10000000

10 million

29

Paid amp non personal mass

communication

30

bull Focus on information amp goodwill of the Group

bull Consumer advertising Rational versus emotional appeals

bull Focus on particular product(s) or brand(s)

bull Stimulate demand for specific brands

31

bull What do you want your ads to do

bull Who are you trying to reach [ Target customers]

bull What promotional message do you want to communicate

bull How much does each medium cost

32

Rate card 廣告收費價目表

33

TVB Prime time 1855-2355 (Mon to Sun)

34

Rate (30 sec)

Air time cost (30 sec)

No of spots

F7 $70500 141 (30 sec)

F15 $215640 46 (30 sec)

35

Run-of-page

(Mon-Thur)

Full page

4C

HK$306000

$10000000 306000 = 32 FP

36

Min booking (4 weeks)

HK$36000 X 4

= $144000

bull Sales promotion (促銷) demand-stimulating activity designed to supplement advertising o Coupons

o Premiums

o Contests

o Sweepstakes

o Specialty advertising ndash places the Grouprsquos name address amp advertising message on useful articles that are then distributed to target customers

37

bull Publicity (公眾信息) a non-paid form of advertising that uses mass communication to stimulate demand

o Structured news release to the media

o Coordinating personal communication with a group customers

38

bull Public relations (公共關係) a planned communication effort by the Group to contribute to generally favourable attitudes amp opinions toward the Group amp its products

o Supporting charitable projects

o Supplying volunteers or other resources

o Participating in community-service events

o Sponsorship

o Providing information to customers through newsletters

39

40

Promotional plan

marketing

expenses budget

and

implementation

details

41

Promotional plan

marketing

expenses budget

and

implementation

details

42

Promotional plan

marketing

expenses budget

and

implementation

details

Business Management and Marketing Strategies

1[Think] - SWOT Analysis

2[Do] - Implementation plan

3[Check] - Evaluation measurement and Control

43

(c) Business plan A business plan of $10 million for launching a promotional project to improve Bauhaus Grouprsquos operations in Hong Kong which should be supported by a marketing expenses budget and implementation details

In order to evaluate the effectiveness of your recommendations you are required to analyse the projected impact on store locations sales and average spending per customer for the years ending 31 March 2017 and 2018

(25 marks ndash approximately 4 pages)

44

bull Bauhaus started in 1991 on Nathan Road Tsim Sha Tsui as a contemporary fashion store bringing the best of international brands to young trend-setters in Hong Kong [28 stores]

45

46

bull Sales data before and after the promotion

bull How many sales are a result of those promotions

bull Timing of promotion [ Hedonic consumption]

bull Customersrsquo preferences

bull Change of average spending per customers [Increaseddecreased]

bull Competitorsrsquo promotional campaigns

47

bull The median monthly domestic household income for 2014 was HK$23500 (vs for 2013 HK$22400)

48

(The Information Services Department HKSAR April 2015)

Company Shares of Apparel Accessories Value (2011-2015)

(Euromonitor 2016)

49

30 companies

50

51

52

53

Strategy Formulation

Evaluation

Implementation and Execution

54

bull Barits Ho Chong Securities Co Ltd (2006) Company Update Bauhaus International Available at httpwwwmegaseccomhkUploadFile5CTaiwanListco0483HK20Bauhaus20Update2004JANpdf [15 October 2016]

bull Euromonitor International (June 2016)

bull GlobalData (2015) Bauhaus International (Holdings) Limited (483) - Financial and Strategic SWOT Analysis Review Available at httpstoreglobaldatacomcompany-reportsretailingbauhaus-international-holdings-limited-483-financial-and-strategic-swot-analysis-reviewWBWilvp97IU [15 October 2015]

bull Headline Daily rate card 2016 Available at httppaperhkheadlinecomhtmlRatecardpdf [5 December 2016]

bull The Information Services Department Hong Kong Special Administrative Region Government (April 2015) GovHK Website Hong Kong The Facts Available httpwwwgovhkenaboutabouthkfactsheetsdocspopulationpdf [30 October 2016]

bull JCDecaux Rate card 2016 Available at httpwwwjcdecauxcomhkmtr_packagehtml [5 Dec 2016]

bull Skypost Rate card 2016 Available at httpskypostulifestylecomhkresourcesadvertisementftlpdf [5 Dec 2016]

bull TVB Rate card 2016 Available at httpwwwtvbcomtvbsalesratecardratecardphpp=hd_jade [5 December 2016]

55

Maturity stage bull Many competitors have joined ndash market is saturated

bull The only way to sell is to begin to lower the price amp profits decrease

bull It is difficult to tell the different between products since most have the same FAB ndash Features Advantages amp Benefits [ no obvious product differentiation]

bull ldquoPersuasive promotionrdquo becomes more important during this stage

bull The Group TV commercials (or promotion) almost begging the customers to still buy its products because the Group still makes it just as good

28

HK$10000000

10 million

29

Paid amp non personal mass

communication

30

bull Focus on information amp goodwill of the Group

bull Consumer advertising Rational versus emotional appeals

bull Focus on particular product(s) or brand(s)

bull Stimulate demand for specific brands

31

bull What do you want your ads to do

bull Who are you trying to reach [ Target customers]

bull What promotional message do you want to communicate

bull How much does each medium cost

32

Rate card 廣告收費價目表

33

TVB Prime time 1855-2355 (Mon to Sun)

34

Rate (30 sec)

Air time cost (30 sec)

No of spots

F7 $70500 141 (30 sec)

F15 $215640 46 (30 sec)

35

Run-of-page

(Mon-Thur)

Full page

4C

HK$306000

$10000000 306000 = 32 FP

36

Min booking (4 weeks)

HK$36000 X 4

= $144000

bull Sales promotion (促銷) demand-stimulating activity designed to supplement advertising o Coupons

o Premiums

o Contests

o Sweepstakes

o Specialty advertising ndash places the Grouprsquos name address amp advertising message on useful articles that are then distributed to target customers

37

bull Publicity (公眾信息) a non-paid form of advertising that uses mass communication to stimulate demand

o Structured news release to the media

o Coordinating personal communication with a group customers

38

bull Public relations (公共關係) a planned communication effort by the Group to contribute to generally favourable attitudes amp opinions toward the Group amp its products

o Supporting charitable projects

o Supplying volunteers or other resources

o Participating in community-service events

o Sponsorship

o Providing information to customers through newsletters

39

40

Promotional plan

marketing

expenses budget

and

implementation

details

41

Promotional plan

marketing

expenses budget

and

implementation

details

42

Promotional plan

marketing

expenses budget

and

implementation

details

Business Management and Marketing Strategies

1[Think] - SWOT Analysis

2[Do] - Implementation plan

3[Check] - Evaluation measurement and Control

43

(c) Business plan A business plan of $10 million for launching a promotional project to improve Bauhaus Grouprsquos operations in Hong Kong which should be supported by a marketing expenses budget and implementation details

In order to evaluate the effectiveness of your recommendations you are required to analyse the projected impact on store locations sales and average spending per customer for the years ending 31 March 2017 and 2018

(25 marks ndash approximately 4 pages)

44

bull Bauhaus started in 1991 on Nathan Road Tsim Sha Tsui as a contemporary fashion store bringing the best of international brands to young trend-setters in Hong Kong [28 stores]

45

46

bull Sales data before and after the promotion

bull How many sales are a result of those promotions

bull Timing of promotion [ Hedonic consumption]

bull Customersrsquo preferences

bull Change of average spending per customers [Increaseddecreased]

bull Competitorsrsquo promotional campaigns

47

bull The median monthly domestic household income for 2014 was HK$23500 (vs for 2013 HK$22400)

48

(The Information Services Department HKSAR April 2015)

Company Shares of Apparel Accessories Value (2011-2015)

(Euromonitor 2016)

49

30 companies

50

51

52

53

Strategy Formulation

Evaluation

Implementation and Execution

54

bull Barits Ho Chong Securities Co Ltd (2006) Company Update Bauhaus International Available at httpwwwmegaseccomhkUploadFile5CTaiwanListco0483HK20Bauhaus20Update2004JANpdf [15 October 2016]

bull Euromonitor International (June 2016)

bull GlobalData (2015) Bauhaus International (Holdings) Limited (483) - Financial and Strategic SWOT Analysis Review Available at httpstoreglobaldatacomcompany-reportsretailingbauhaus-international-holdings-limited-483-financial-and-strategic-swot-analysis-reviewWBWilvp97IU [15 October 2015]

bull Headline Daily rate card 2016 Available at httppaperhkheadlinecomhtmlRatecardpdf [5 December 2016]

bull The Information Services Department Hong Kong Special Administrative Region Government (April 2015) GovHK Website Hong Kong The Facts Available httpwwwgovhkenaboutabouthkfactsheetsdocspopulationpdf [30 October 2016]

bull JCDecaux Rate card 2016 Available at httpwwwjcdecauxcomhkmtr_packagehtml [5 Dec 2016]

bull Skypost Rate card 2016 Available at httpskypostulifestylecomhkresourcesadvertisementftlpdf [5 Dec 2016]

bull TVB Rate card 2016 Available at httpwwwtvbcomtvbsalesratecardratecardphpp=hd_jade [5 December 2016]

55

HK$10000000

10 million

29

Paid amp non personal mass

communication

30

bull Focus on information amp goodwill of the Group

bull Consumer advertising Rational versus emotional appeals

bull Focus on particular product(s) or brand(s)

bull Stimulate demand for specific brands

31

bull What do you want your ads to do

bull Who are you trying to reach [ Target customers]

bull What promotional message do you want to communicate

bull How much does each medium cost

32

Rate card 廣告收費價目表

33

TVB Prime time 1855-2355 (Mon to Sun)

34

Rate (30 sec)

Air time cost (30 sec)

No of spots

F7 $70500 141 (30 sec)

F15 $215640 46 (30 sec)

35

Run-of-page

(Mon-Thur)

Full page

4C

HK$306000

$10000000 306000 = 32 FP

36

Min booking (4 weeks)

HK$36000 X 4

= $144000

bull Sales promotion (促銷) demand-stimulating activity designed to supplement advertising o Coupons

o Premiums

o Contests

o Sweepstakes

o Specialty advertising ndash places the Grouprsquos name address amp advertising message on useful articles that are then distributed to target customers

37

bull Publicity (公眾信息) a non-paid form of advertising that uses mass communication to stimulate demand

o Structured news release to the media

o Coordinating personal communication with a group customers

38

bull Public relations (公共關係) a planned communication effort by the Group to contribute to generally favourable attitudes amp opinions toward the Group amp its products

o Supporting charitable projects

o Supplying volunteers or other resources

o Participating in community-service events

o Sponsorship

o Providing information to customers through newsletters

39

40

Promotional plan

marketing

expenses budget

and

implementation

details

41

Promotional plan

marketing

expenses budget

and

implementation

details

42

Promotional plan

marketing

expenses budget

and

implementation

details

Business Management and Marketing Strategies

1[Think] - SWOT Analysis

2[Do] - Implementation plan

3[Check] - Evaluation measurement and Control

43

(c) Business plan A business plan of $10 million for launching a promotional project to improve Bauhaus Grouprsquos operations in Hong Kong which should be supported by a marketing expenses budget and implementation details

In order to evaluate the effectiveness of your recommendations you are required to analyse the projected impact on store locations sales and average spending per customer for the years ending 31 March 2017 and 2018

(25 marks ndash approximately 4 pages)

44

bull Bauhaus started in 1991 on Nathan Road Tsim Sha Tsui as a contemporary fashion store bringing the best of international brands to young trend-setters in Hong Kong [28 stores]

45

46

bull Sales data before and after the promotion

bull How many sales are a result of those promotions

bull Timing of promotion [ Hedonic consumption]

bull Customersrsquo preferences

bull Change of average spending per customers [Increaseddecreased]

bull Competitorsrsquo promotional campaigns

47

bull The median monthly domestic household income for 2014 was HK$23500 (vs for 2013 HK$22400)

48

(The Information Services Department HKSAR April 2015)

Company Shares of Apparel Accessories Value (2011-2015)

(Euromonitor 2016)

49

30 companies

50

51

52

53

Strategy Formulation

Evaluation

Implementation and Execution

54

bull Barits Ho Chong Securities Co Ltd (2006) Company Update Bauhaus International Available at httpwwwmegaseccomhkUploadFile5CTaiwanListco0483HK20Bauhaus20Update2004JANpdf [15 October 2016]

bull Euromonitor International (June 2016)

bull GlobalData (2015) Bauhaus International (Holdings) Limited (483) - Financial and Strategic SWOT Analysis Review Available at httpstoreglobaldatacomcompany-reportsretailingbauhaus-international-holdings-limited-483-financial-and-strategic-swot-analysis-reviewWBWilvp97IU [15 October 2015]

bull Headline Daily rate card 2016 Available at httppaperhkheadlinecomhtmlRatecardpdf [5 December 2016]

bull The Information Services Department Hong Kong Special Administrative Region Government (April 2015) GovHK Website Hong Kong The Facts Available httpwwwgovhkenaboutabouthkfactsheetsdocspopulationpdf [30 October 2016]

bull JCDecaux Rate card 2016 Available at httpwwwjcdecauxcomhkmtr_packagehtml [5 Dec 2016]

bull Skypost Rate card 2016 Available at httpskypostulifestylecomhkresourcesadvertisementftlpdf [5 Dec 2016]

bull TVB Rate card 2016 Available at httpwwwtvbcomtvbsalesratecardratecardphpp=hd_jade [5 December 2016]

55

Paid amp non personal mass

communication

30

bull Focus on information amp goodwill of the Group

bull Consumer advertising Rational versus emotional appeals

bull Focus on particular product(s) or brand(s)

bull Stimulate demand for specific brands

31

bull What do you want your ads to do

bull Who are you trying to reach [ Target customers]

bull What promotional message do you want to communicate

bull How much does each medium cost

32

Rate card 廣告收費價目表

33

TVB Prime time 1855-2355 (Mon to Sun)

34

Rate (30 sec)

Air time cost (30 sec)

No of spots

F7 $70500 141 (30 sec)

F15 $215640 46 (30 sec)

35

Run-of-page

(Mon-Thur)

Full page

4C

HK$306000

$10000000 306000 = 32 FP

36

Min booking (4 weeks)

HK$36000 X 4

= $144000

bull Sales promotion (促銷) demand-stimulating activity designed to supplement advertising o Coupons

o Premiums

o Contests

o Sweepstakes

o Specialty advertising ndash places the Grouprsquos name address amp advertising message on useful articles that are then distributed to target customers

37

bull Publicity (公眾信息) a non-paid form of advertising that uses mass communication to stimulate demand

o Structured news release to the media

o Coordinating personal communication with a group customers

38

bull Public relations (公共關係) a planned communication effort by the Group to contribute to generally favourable attitudes amp opinions toward the Group amp its products

o Supporting charitable projects

o Supplying volunteers or other resources

o Participating in community-service events

o Sponsorship

o Providing information to customers through newsletters

39

40

Promotional plan

marketing

expenses budget

and

implementation

details

41

Promotional plan

marketing

expenses budget

and

implementation

details

42

Promotional plan

marketing

expenses budget

and

implementation

details

Business Management and Marketing Strategies

1[Think] - SWOT Analysis

2[Do] - Implementation plan

3[Check] - Evaluation measurement and Control

43

(c) Business plan A business plan of $10 million for launching a promotional project to improve Bauhaus Grouprsquos operations in Hong Kong which should be supported by a marketing expenses budget and implementation details

In order to evaluate the effectiveness of your recommendations you are required to analyse the projected impact on store locations sales and average spending per customer for the years ending 31 March 2017 and 2018

(25 marks ndash approximately 4 pages)

44

bull Bauhaus started in 1991 on Nathan Road Tsim Sha Tsui as a contemporary fashion store bringing the best of international brands to young trend-setters in Hong Kong [28 stores]

45

46

bull Sales data before and after the promotion

bull How many sales are a result of those promotions

bull Timing of promotion [ Hedonic consumption]

bull Customersrsquo preferences

bull Change of average spending per customers [Increaseddecreased]

bull Competitorsrsquo promotional campaigns

47

bull The median monthly domestic household income for 2014 was HK$23500 (vs for 2013 HK$22400)

48

(The Information Services Department HKSAR April 2015)

Company Shares of Apparel Accessories Value (2011-2015)

(Euromonitor 2016)

49

30 companies

50

51

52

53

Strategy Formulation

Evaluation

Implementation and Execution

54

bull Barits Ho Chong Securities Co Ltd (2006) Company Update Bauhaus International Available at httpwwwmegaseccomhkUploadFile5CTaiwanListco0483HK20Bauhaus20Update2004JANpdf [15 October 2016]

bull Euromonitor International (June 2016)

bull GlobalData (2015) Bauhaus International (Holdings) Limited (483) - Financial and Strategic SWOT Analysis Review Available at httpstoreglobaldatacomcompany-reportsretailingbauhaus-international-holdings-limited-483-financial-and-strategic-swot-analysis-reviewWBWilvp97IU [15 October 2015]

bull Headline Daily rate card 2016 Available at httppaperhkheadlinecomhtmlRatecardpdf [5 December 2016]

bull The Information Services Department Hong Kong Special Administrative Region Government (April 2015) GovHK Website Hong Kong The Facts Available httpwwwgovhkenaboutabouthkfactsheetsdocspopulationpdf [30 October 2016]

bull JCDecaux Rate card 2016 Available at httpwwwjcdecauxcomhkmtr_packagehtml [5 Dec 2016]

bull Skypost Rate card 2016 Available at httpskypostulifestylecomhkresourcesadvertisementftlpdf [5 Dec 2016]

bull TVB Rate card 2016 Available at httpwwwtvbcomtvbsalesratecardratecardphpp=hd_jade [5 December 2016]

55

bull Focus on information amp goodwill of the Group

bull Consumer advertising Rational versus emotional appeals

bull Focus on particular product(s) or brand(s)

bull Stimulate demand for specific brands

31

bull What do you want your ads to do

bull Who are you trying to reach [ Target customers]

bull What promotional message do you want to communicate

bull How much does each medium cost

32

Rate card 廣告收費價目表

33

TVB Prime time 1855-2355 (Mon to Sun)

34

Rate (30 sec)

Air time cost (30 sec)

No of spots

F7 $70500 141 (30 sec)

F15 $215640 46 (30 sec)

35

Run-of-page

(Mon-Thur)

Full page

4C

HK$306000

$10000000 306000 = 32 FP

36

Min booking (4 weeks)

HK$36000 X 4

= $144000

bull Sales promotion (促銷) demand-stimulating activity designed to supplement advertising o Coupons

o Premiums

o Contests

o Sweepstakes

o Specialty advertising ndash places the Grouprsquos name address amp advertising message on useful articles that are then distributed to target customers

37

bull Publicity (公眾信息) a non-paid form of advertising that uses mass communication to stimulate demand

o Structured news release to the media

o Coordinating personal communication with a group customers

38

bull Public relations (公共關係) a planned communication effort by the Group to contribute to generally favourable attitudes amp opinions toward the Group amp its products

o Supporting charitable projects

o Supplying volunteers or other resources

o Participating in community-service events

o Sponsorship

o Providing information to customers through newsletters

39

40

Promotional plan

marketing

expenses budget

and

implementation

details

41

Promotional plan

marketing

expenses budget

and

implementation

details

42

Promotional plan

marketing

expenses budget

and

implementation

details

Business Management and Marketing Strategies

1[Think] - SWOT Analysis

2[Do] - Implementation plan

3[Check] - Evaluation measurement and Control

43

(c) Business plan A business plan of $10 million for launching a promotional project to improve Bauhaus Grouprsquos operations in Hong Kong which should be supported by a marketing expenses budget and implementation details

In order to evaluate the effectiveness of your recommendations you are required to analyse the projected impact on store locations sales and average spending per customer for the years ending 31 March 2017 and 2018

(25 marks ndash approximately 4 pages)

44

bull Bauhaus started in 1991 on Nathan Road Tsim Sha Tsui as a contemporary fashion store bringing the best of international brands to young trend-setters in Hong Kong [28 stores]

45

46

bull Sales data before and after the promotion

bull How many sales are a result of those promotions

bull Timing of promotion [ Hedonic consumption]

bull Customersrsquo preferences

bull Change of average spending per customers [Increaseddecreased]

bull Competitorsrsquo promotional campaigns

47

bull The median monthly domestic household income for 2014 was HK$23500 (vs for 2013 HK$22400)

48

(The Information Services Department HKSAR April 2015)

Company Shares of Apparel Accessories Value (2011-2015)

(Euromonitor 2016)

49

30 companies

50

51

52

53

Strategy Formulation

Evaluation

Implementation and Execution

54

bull Barits Ho Chong Securities Co Ltd (2006) Company Update Bauhaus International Available at httpwwwmegaseccomhkUploadFile5CTaiwanListco0483HK20Bauhaus20Update2004JANpdf [15 October 2016]

bull Euromonitor International (June 2016)

bull GlobalData (2015) Bauhaus International (Holdings) Limited (483) - Financial and Strategic SWOT Analysis Review Available at httpstoreglobaldatacomcompany-reportsretailingbauhaus-international-holdings-limited-483-financial-and-strategic-swot-analysis-reviewWBWilvp97IU [15 October 2015]

bull Headline Daily rate card 2016 Available at httppaperhkheadlinecomhtmlRatecardpdf [5 December 2016]

bull The Information Services Department Hong Kong Special Administrative Region Government (April 2015) GovHK Website Hong Kong The Facts Available httpwwwgovhkenaboutabouthkfactsheetsdocspopulationpdf [30 October 2016]

bull JCDecaux Rate card 2016 Available at httpwwwjcdecauxcomhkmtr_packagehtml [5 Dec 2016]

bull Skypost Rate card 2016 Available at httpskypostulifestylecomhkresourcesadvertisementftlpdf [5 Dec 2016]

bull TVB Rate card 2016 Available at httpwwwtvbcomtvbsalesratecardratecardphpp=hd_jade [5 December 2016]

55

bull What do you want your ads to do

bull Who are you trying to reach [ Target customers]

bull What promotional message do you want to communicate

bull How much does each medium cost

32

Rate card 廣告收費價目表

33

TVB Prime time 1855-2355 (Mon to Sun)

34

Rate (30 sec)

Air time cost (30 sec)

No of spots

F7 $70500 141 (30 sec)

F15 $215640 46 (30 sec)

35

Run-of-page

(Mon-Thur)

Full page

4C

HK$306000

$10000000 306000 = 32 FP

36

Min booking (4 weeks)

HK$36000 X 4

= $144000

bull Sales promotion (促銷) demand-stimulating activity designed to supplement advertising o Coupons

o Premiums

o Contests

o Sweepstakes

o Specialty advertising ndash places the Grouprsquos name address amp advertising message on useful articles that are then distributed to target customers

37

bull Publicity (公眾信息) a non-paid form of advertising that uses mass communication to stimulate demand

o Structured news release to the media

o Coordinating personal communication with a group customers

38

bull Public relations (公共關係) a planned communication effort by the Group to contribute to generally favourable attitudes amp opinions toward the Group amp its products

o Supporting charitable projects

o Supplying volunteers or other resources

o Participating in community-service events

o Sponsorship

o Providing information to customers through newsletters

39

40

Promotional plan

marketing

expenses budget

and

implementation

details

41

Promotional plan

marketing

expenses budget

and

implementation

details

42

Promotional plan

marketing

expenses budget

and

implementation

details

Business Management and Marketing Strategies

1[Think] - SWOT Analysis

2[Do] - Implementation plan

3[Check] - Evaluation measurement and Control

43

(c) Business plan A business plan of $10 million for launching a promotional project to improve Bauhaus Grouprsquos operations in Hong Kong which should be supported by a marketing expenses budget and implementation details

In order to evaluate the effectiveness of your recommendations you are required to analyse the projected impact on store locations sales and average spending per customer for the years ending 31 March 2017 and 2018

(25 marks ndash approximately 4 pages)

44

bull Bauhaus started in 1991 on Nathan Road Tsim Sha Tsui as a contemporary fashion store bringing the best of international brands to young trend-setters in Hong Kong [28 stores]

45

46

bull Sales data before and after the promotion

bull How many sales are a result of those promotions

bull Timing of promotion [ Hedonic consumption]

bull Customersrsquo preferences

bull Change of average spending per customers [Increaseddecreased]

bull Competitorsrsquo promotional campaigns

47

bull The median monthly domestic household income for 2014 was HK$23500 (vs for 2013 HK$22400)

48

(The Information Services Department HKSAR April 2015)

Company Shares of Apparel Accessories Value (2011-2015)

(Euromonitor 2016)

49

30 companies

50

51

52

53

Strategy Formulation

Evaluation

Implementation and Execution

54

bull Barits Ho Chong Securities Co Ltd (2006) Company Update Bauhaus International Available at httpwwwmegaseccomhkUploadFile5CTaiwanListco0483HK20Bauhaus20Update2004JANpdf [15 October 2016]

bull Euromonitor International (June 2016)

bull GlobalData (2015) Bauhaus International (Holdings) Limited (483) - Financial and Strategic SWOT Analysis Review Available at httpstoreglobaldatacomcompany-reportsretailingbauhaus-international-holdings-limited-483-financial-and-strategic-swot-analysis-reviewWBWilvp97IU [15 October 2015]

bull Headline Daily rate card 2016 Available at httppaperhkheadlinecomhtmlRatecardpdf [5 December 2016]

bull The Information Services Department Hong Kong Special Administrative Region Government (April 2015) GovHK Website Hong Kong The Facts Available httpwwwgovhkenaboutabouthkfactsheetsdocspopulationpdf [30 October 2016]

bull JCDecaux Rate card 2016 Available at httpwwwjcdecauxcomhkmtr_packagehtml [5 Dec 2016]

bull Skypost Rate card 2016 Available at httpskypostulifestylecomhkresourcesadvertisementftlpdf [5 Dec 2016]

bull TVB Rate card 2016 Available at httpwwwtvbcomtvbsalesratecardratecardphpp=hd_jade [5 December 2016]

55

Rate card 廣告收費價目表

33

TVB Prime time 1855-2355 (Mon to Sun)

34

Rate (30 sec)

Air time cost (30 sec)

No of spots

F7 $70500 141 (30 sec)

F15 $215640 46 (30 sec)

35

Run-of-page

(Mon-Thur)

Full page

4C

HK$306000

$10000000 306000 = 32 FP

36

Min booking (4 weeks)

HK$36000 X 4

= $144000

bull Sales promotion (促銷) demand-stimulating activity designed to supplement advertising o Coupons

o Premiums

o Contests

o Sweepstakes

o Specialty advertising ndash places the Grouprsquos name address amp advertising message on useful articles that are then distributed to target customers

37

bull Publicity (公眾信息) a non-paid form of advertising that uses mass communication to stimulate demand

o Structured news release to the media

o Coordinating personal communication with a group customers

38

bull Public relations (公共關係) a planned communication effort by the Group to contribute to generally favourable attitudes amp opinions toward the Group amp its products

o Supporting charitable projects

o Supplying volunteers or other resources

o Participating in community-service events

o Sponsorship

o Providing information to customers through newsletters

39

40

Promotional plan

marketing

expenses budget

and

implementation

details

41

Promotional plan

marketing

expenses budget

and

implementation

details

42

Promotional plan

marketing

expenses budget

and

implementation

details

Business Management and Marketing Strategies

1[Think] - SWOT Analysis

2[Do] - Implementation plan

3[Check] - Evaluation measurement and Control

43

(c) Business plan A business plan of $10 million for launching a promotional project to improve Bauhaus Grouprsquos operations in Hong Kong which should be supported by a marketing expenses budget and implementation details

In order to evaluate the effectiveness of your recommendations you are required to analyse the projected impact on store locations sales and average spending per customer for the years ending 31 March 2017 and 2018

(25 marks ndash approximately 4 pages)

44

bull Bauhaus started in 1991 on Nathan Road Tsim Sha Tsui as a contemporary fashion store bringing the best of international brands to young trend-setters in Hong Kong [28 stores]

45

46

bull Sales data before and after the promotion

bull How many sales are a result of those promotions

bull Timing of promotion [ Hedonic consumption]

bull Customersrsquo preferences

bull Change of average spending per customers [Increaseddecreased]

bull Competitorsrsquo promotional campaigns

47

bull The median monthly domestic household income for 2014 was HK$23500 (vs for 2013 HK$22400)

48

(The Information Services Department HKSAR April 2015)

Company Shares of Apparel Accessories Value (2011-2015)

(Euromonitor 2016)

49

30 companies

50

51

52

53

Strategy Formulation

Evaluation

Implementation and Execution

54

bull Barits Ho Chong Securities Co Ltd (2006) Company Update Bauhaus International Available at httpwwwmegaseccomhkUploadFile5CTaiwanListco0483HK20Bauhaus20Update2004JANpdf [15 October 2016]

bull Euromonitor International (June 2016)

bull GlobalData (2015) Bauhaus International (Holdings) Limited (483) - Financial and Strategic SWOT Analysis Review Available at httpstoreglobaldatacomcompany-reportsretailingbauhaus-international-holdings-limited-483-financial-and-strategic-swot-analysis-reviewWBWilvp97IU [15 October 2015]

bull Headline Daily rate card 2016 Available at httppaperhkheadlinecomhtmlRatecardpdf [5 December 2016]

bull The Information Services Department Hong Kong Special Administrative Region Government (April 2015) GovHK Website Hong Kong The Facts Available httpwwwgovhkenaboutabouthkfactsheetsdocspopulationpdf [30 October 2016]

bull JCDecaux Rate card 2016 Available at httpwwwjcdecauxcomhkmtr_packagehtml [5 Dec 2016]

bull Skypost Rate card 2016 Available at httpskypostulifestylecomhkresourcesadvertisementftlpdf [5 Dec 2016]

bull TVB Rate card 2016 Available at httpwwwtvbcomtvbsalesratecardratecardphpp=hd_jade [5 December 2016]

55

TVB Prime time 1855-2355 (Mon to Sun)

34

Rate (30 sec)

Air time cost (30 sec)

No of spots

F7 $70500 141 (30 sec)

F15 $215640 46 (30 sec)

35

Run-of-page

(Mon-Thur)

Full page

4C

HK$306000

$10000000 306000 = 32 FP

36

Min booking (4 weeks)

HK$36000 X 4

= $144000

bull Sales promotion (促銷) demand-stimulating activity designed to supplement advertising o Coupons

o Premiums

o Contests

o Sweepstakes

o Specialty advertising ndash places the Grouprsquos name address amp advertising message on useful articles that are then distributed to target customers

37

bull Publicity (公眾信息) a non-paid form of advertising that uses mass communication to stimulate demand

o Structured news release to the media

o Coordinating personal communication with a group customers

38

bull Public relations (公共關係) a planned communication effort by the Group to contribute to generally favourable attitudes amp opinions toward the Group amp its products

o Supporting charitable projects

o Supplying volunteers or other resources

o Participating in community-service events

o Sponsorship

o Providing information to customers through newsletters

39

40

Promotional plan

marketing

expenses budget

and

implementation

details

41

Promotional plan

marketing

expenses budget

and

implementation

details

42

Promotional plan

marketing

expenses budget

and

implementation

details

Business Management and Marketing Strategies

1[Think] - SWOT Analysis

2[Do] - Implementation plan

3[Check] - Evaluation measurement and Control

43

(c) Business plan A business plan of $10 million for launching a promotional project to improve Bauhaus Grouprsquos operations in Hong Kong which should be supported by a marketing expenses budget and implementation details

In order to evaluate the effectiveness of your recommendations you are required to analyse the projected impact on store locations sales and average spending per customer for the years ending 31 March 2017 and 2018

(25 marks ndash approximately 4 pages)

44

bull Bauhaus started in 1991 on Nathan Road Tsim Sha Tsui as a contemporary fashion store bringing the best of international brands to young trend-setters in Hong Kong [28 stores]

45

46

bull Sales data before and after the promotion

bull How many sales are a result of those promotions

bull Timing of promotion [ Hedonic consumption]

bull Customersrsquo preferences

bull Change of average spending per customers [Increaseddecreased]

bull Competitorsrsquo promotional campaigns

47

bull The median monthly domestic household income for 2014 was HK$23500 (vs for 2013 HK$22400)

48

(The Information Services Department HKSAR April 2015)

Company Shares of Apparel Accessories Value (2011-2015)

(Euromonitor 2016)

49

30 companies

50

51

52

53

Strategy Formulation

Evaluation

Implementation and Execution

54

bull Barits Ho Chong Securities Co Ltd (2006) Company Update Bauhaus International Available at httpwwwmegaseccomhkUploadFile5CTaiwanListco0483HK20Bauhaus20Update2004JANpdf [15 October 2016]

bull Euromonitor International (June 2016)

bull GlobalData (2015) Bauhaus International (Holdings) Limited (483) - Financial and Strategic SWOT Analysis Review Available at httpstoreglobaldatacomcompany-reportsretailingbauhaus-international-holdings-limited-483-financial-and-strategic-swot-analysis-reviewWBWilvp97IU [15 October 2015]

bull Headline Daily rate card 2016 Available at httppaperhkheadlinecomhtmlRatecardpdf [5 December 2016]

bull The Information Services Department Hong Kong Special Administrative Region Government (April 2015) GovHK Website Hong Kong The Facts Available httpwwwgovhkenaboutabouthkfactsheetsdocspopulationpdf [30 October 2016]

bull JCDecaux Rate card 2016 Available at httpwwwjcdecauxcomhkmtr_packagehtml [5 Dec 2016]

bull Skypost Rate card 2016 Available at httpskypostulifestylecomhkresourcesadvertisementftlpdf [5 Dec 2016]

bull TVB Rate card 2016 Available at httpwwwtvbcomtvbsalesratecardratecardphpp=hd_jade [5 December 2016]

55

35

Run-of-page

(Mon-Thur)

Full page

4C

HK$306000

$10000000 306000 = 32 FP

36

Min booking (4 weeks)

HK$36000 X 4

= $144000

bull Sales promotion (促銷) demand-stimulating activity designed to supplement advertising o Coupons

o Premiums

o Contests

o Sweepstakes

o Specialty advertising ndash places the Grouprsquos name address amp advertising message on useful articles that are then distributed to target customers

37

bull Publicity (公眾信息) a non-paid form of advertising that uses mass communication to stimulate demand

o Structured news release to the media

o Coordinating personal communication with a group customers

38

bull Public relations (公共關係) a planned communication effort by the Group to contribute to generally favourable attitudes amp opinions toward the Group amp its products

o Supporting charitable projects

o Supplying volunteers or other resources

o Participating in community-service events

o Sponsorship

o Providing information to customers through newsletters

39

40

Promotional plan

marketing

expenses budget

and

implementation

details

41

Promotional plan

marketing

expenses budget

and

implementation

details

42

Promotional plan

marketing

expenses budget

and

implementation

details

Business Management and Marketing Strategies

1[Think] - SWOT Analysis

2[Do] - Implementation plan

3[Check] - Evaluation measurement and Control

43

(c) Business plan A business plan of $10 million for launching a promotional project to improve Bauhaus Grouprsquos operations in Hong Kong which should be supported by a marketing expenses budget and implementation details

In order to evaluate the effectiveness of your recommendations you are required to analyse the projected impact on store locations sales and average spending per customer for the years ending 31 March 2017 and 2018

(25 marks ndash approximately 4 pages)

44

bull Bauhaus started in 1991 on Nathan Road Tsim Sha Tsui as a contemporary fashion store bringing the best of international brands to young trend-setters in Hong Kong [28 stores]

45

46

bull Sales data before and after the promotion

bull How many sales are a result of those promotions

bull Timing of promotion [ Hedonic consumption]

bull Customersrsquo preferences

bull Change of average spending per customers [Increaseddecreased]

bull Competitorsrsquo promotional campaigns

47

bull The median monthly domestic household income for 2014 was HK$23500 (vs for 2013 HK$22400)

48

(The Information Services Department HKSAR April 2015)

Company Shares of Apparel Accessories Value (2011-2015)

(Euromonitor 2016)

49

30 companies

50

51

52

53

Strategy Formulation

Evaluation

Implementation and Execution

54

bull Barits Ho Chong Securities Co Ltd (2006) Company Update Bauhaus International Available at httpwwwmegaseccomhkUploadFile5CTaiwanListco0483HK20Bauhaus20Update2004JANpdf [15 October 2016]

bull Euromonitor International (June 2016)

bull GlobalData (2015) Bauhaus International (Holdings) Limited (483) - Financial and Strategic SWOT Analysis Review Available at httpstoreglobaldatacomcompany-reportsretailingbauhaus-international-holdings-limited-483-financial-and-strategic-swot-analysis-reviewWBWilvp97IU [15 October 2015]

bull Headline Daily rate card 2016 Available at httppaperhkheadlinecomhtmlRatecardpdf [5 December 2016]

bull The Information Services Department Hong Kong Special Administrative Region Government (April 2015) GovHK Website Hong Kong The Facts Available httpwwwgovhkenaboutabouthkfactsheetsdocspopulationpdf [30 October 2016]

bull JCDecaux Rate card 2016 Available at httpwwwjcdecauxcomhkmtr_packagehtml [5 Dec 2016]

bull Skypost Rate card 2016 Available at httpskypostulifestylecomhkresourcesadvertisementftlpdf [5 Dec 2016]

bull TVB Rate card 2016 Available at httpwwwtvbcomtvbsalesratecardratecardphpp=hd_jade [5 December 2016]

55

36

Min booking (4 weeks)

HK$36000 X 4

= $144000

bull Sales promotion (促銷) demand-stimulating activity designed to supplement advertising o Coupons

o Premiums

o Contests

o Sweepstakes

o Specialty advertising ndash places the Grouprsquos name address amp advertising message on useful articles that are then distributed to target customers

37

bull Publicity (公眾信息) a non-paid form of advertising that uses mass communication to stimulate demand

o Structured news release to the media

o Coordinating personal communication with a group customers

38

bull Public relations (公共關係) a planned communication effort by the Group to contribute to generally favourable attitudes amp opinions toward the Group amp its products

o Supporting charitable projects

o Supplying volunteers or other resources

o Participating in community-service events

o Sponsorship

o Providing information to customers through newsletters

39

40

Promotional plan

marketing

expenses budget

and

implementation

details

41

Promotional plan

marketing

expenses budget

and

implementation

details

42

Promotional plan

marketing

expenses budget

and

implementation

details

Business Management and Marketing Strategies

1[Think] - SWOT Analysis

2[Do] - Implementation plan

3[Check] - Evaluation measurement and Control

43

(c) Business plan A business plan of $10 million for launching a promotional project to improve Bauhaus Grouprsquos operations in Hong Kong which should be supported by a marketing expenses budget and implementation details

In order to evaluate the effectiveness of your recommendations you are required to analyse the projected impact on store locations sales and average spending per customer for the years ending 31 March 2017 and 2018

(25 marks ndash approximately 4 pages)

44

bull Bauhaus started in 1991 on Nathan Road Tsim Sha Tsui as a contemporary fashion store bringing the best of international brands to young trend-setters in Hong Kong [28 stores]

45

46

bull Sales data before and after the promotion

bull How many sales are a result of those promotions

bull Timing of promotion [ Hedonic consumption]

bull Customersrsquo preferences

bull Change of average spending per customers [Increaseddecreased]

bull Competitorsrsquo promotional campaigns

47

bull The median monthly domestic household income for 2014 was HK$23500 (vs for 2013 HK$22400)

48

(The Information Services Department HKSAR April 2015)

Company Shares of Apparel Accessories Value (2011-2015)

(Euromonitor 2016)

49

30 companies

50

51

52

53

Strategy Formulation

Evaluation

Implementation and Execution

54

bull Barits Ho Chong Securities Co Ltd (2006) Company Update Bauhaus International Available at httpwwwmegaseccomhkUploadFile5CTaiwanListco0483HK20Bauhaus20Update2004JANpdf [15 October 2016]

bull Euromonitor International (June 2016)

bull GlobalData (2015) Bauhaus International (Holdings) Limited (483) - Financial and Strategic SWOT Analysis Review Available at httpstoreglobaldatacomcompany-reportsretailingbauhaus-international-holdings-limited-483-financial-and-strategic-swot-analysis-reviewWBWilvp97IU [15 October 2015]

bull Headline Daily rate card 2016 Available at httppaperhkheadlinecomhtmlRatecardpdf [5 December 2016]

bull The Information Services Department Hong Kong Special Administrative Region Government (April 2015) GovHK Website Hong Kong The Facts Available httpwwwgovhkenaboutabouthkfactsheetsdocspopulationpdf [30 October 2016]

bull JCDecaux Rate card 2016 Available at httpwwwjcdecauxcomhkmtr_packagehtml [5 Dec 2016]

bull Skypost Rate card 2016 Available at httpskypostulifestylecomhkresourcesadvertisementftlpdf [5 Dec 2016]

bull TVB Rate card 2016 Available at httpwwwtvbcomtvbsalesratecardratecardphpp=hd_jade [5 December 2016]

55

bull Sales promotion (促銷) demand-stimulating activity designed to supplement advertising o Coupons

o Premiums

o Contests

o Sweepstakes

o Specialty advertising ndash places the Grouprsquos name address amp advertising message on useful articles that are then distributed to target customers

37

bull Publicity (公眾信息) a non-paid form of advertising that uses mass communication to stimulate demand

o Structured news release to the media

o Coordinating personal communication with a group customers

38

bull Public relations (公共關係) a planned communication effort by the Group to contribute to generally favourable attitudes amp opinions toward the Group amp its products

o Supporting charitable projects

o Supplying volunteers or other resources

o Participating in community-service events

o Sponsorship

o Providing information to customers through newsletters

39

40

Promotional plan

marketing

expenses budget

and

implementation

details

41

Promotional plan

marketing

expenses budget

and

implementation

details

42

Promotional plan

marketing

expenses budget

and

implementation

details

Business Management and Marketing Strategies

1[Think] - SWOT Analysis

2[Do] - Implementation plan

3[Check] - Evaluation measurement and Control

43

(c) Business plan A business plan of $10 million for launching a promotional project to improve Bauhaus Grouprsquos operations in Hong Kong which should be supported by a marketing expenses budget and implementation details

In order to evaluate the effectiveness of your recommendations you are required to analyse the projected impact on store locations sales and average spending per customer for the years ending 31 March 2017 and 2018

(25 marks ndash approximately 4 pages)

44

bull Bauhaus started in 1991 on Nathan Road Tsim Sha Tsui as a contemporary fashion store bringing the best of international brands to young trend-setters in Hong Kong [28 stores]

45

46

bull Sales data before and after the promotion

bull How many sales are a result of those promotions

bull Timing of promotion [ Hedonic consumption]

bull Customersrsquo preferences

bull Change of average spending per customers [Increaseddecreased]

bull Competitorsrsquo promotional campaigns

47

bull The median monthly domestic household income for 2014 was HK$23500 (vs for 2013 HK$22400)

48

(The Information Services Department HKSAR April 2015)

Company Shares of Apparel Accessories Value (2011-2015)

(Euromonitor 2016)

49

30 companies

50

51

52

53

Strategy Formulation

Evaluation

Implementation and Execution

54

bull Barits Ho Chong Securities Co Ltd (2006) Company Update Bauhaus International Available at httpwwwmegaseccomhkUploadFile5CTaiwanListco0483HK20Bauhaus20Update2004JANpdf [15 October 2016]

bull Euromonitor International (June 2016)

bull GlobalData (2015) Bauhaus International (Holdings) Limited (483) - Financial and Strategic SWOT Analysis Review Available at httpstoreglobaldatacomcompany-reportsretailingbauhaus-international-holdings-limited-483-financial-and-strategic-swot-analysis-reviewWBWilvp97IU [15 October 2015]

bull Headline Daily rate card 2016 Available at httppaperhkheadlinecomhtmlRatecardpdf [5 December 2016]

bull The Information Services Department Hong Kong Special Administrative Region Government (April 2015) GovHK Website Hong Kong The Facts Available httpwwwgovhkenaboutabouthkfactsheetsdocspopulationpdf [30 October 2016]

bull JCDecaux Rate card 2016 Available at httpwwwjcdecauxcomhkmtr_packagehtml [5 Dec 2016]

bull Skypost Rate card 2016 Available at httpskypostulifestylecomhkresourcesadvertisementftlpdf [5 Dec 2016]

bull TVB Rate card 2016 Available at httpwwwtvbcomtvbsalesratecardratecardphpp=hd_jade [5 December 2016]

55

bull Publicity (公眾信息) a non-paid form of advertising that uses mass communication to stimulate demand

o Structured news release to the media

o Coordinating personal communication with a group customers

38

bull Public relations (公共關係) a planned communication effort by the Group to contribute to generally favourable attitudes amp opinions toward the Group amp its products

o Supporting charitable projects

o Supplying volunteers or other resources

o Participating in community-service events

o Sponsorship

o Providing information to customers through newsletters

39

40

Promotional plan

marketing

expenses budget

and

implementation

details

41

Promotional plan

marketing

expenses budget

and

implementation

details

42

Promotional plan

marketing

expenses budget

and

implementation

details

Business Management and Marketing Strategies

1[Think] - SWOT Analysis

2[Do] - Implementation plan

3[Check] - Evaluation measurement and Control

43

(c) Business plan A business plan of $10 million for launching a promotional project to improve Bauhaus Grouprsquos operations in Hong Kong which should be supported by a marketing expenses budget and implementation details

In order to evaluate the effectiveness of your recommendations you are required to analyse the projected impact on store locations sales and average spending per customer for the years ending 31 March 2017 and 2018

(25 marks ndash approximately 4 pages)

44

bull Bauhaus started in 1991 on Nathan Road Tsim Sha Tsui as a contemporary fashion store bringing the best of international brands to young trend-setters in Hong Kong [28 stores]

45

46

bull Sales data before and after the promotion

bull How many sales are a result of those promotions

bull Timing of promotion [ Hedonic consumption]

bull Customersrsquo preferences

bull Change of average spending per customers [Increaseddecreased]

bull Competitorsrsquo promotional campaigns

47

bull The median monthly domestic household income for 2014 was HK$23500 (vs for 2013 HK$22400)

48

(The Information Services Department HKSAR April 2015)

Company Shares of Apparel Accessories Value (2011-2015)

(Euromonitor 2016)

49

30 companies

50

51

52

53

Strategy Formulation

Evaluation

Implementation and Execution

54

bull Barits Ho Chong Securities Co Ltd (2006) Company Update Bauhaus International Available at httpwwwmegaseccomhkUploadFile5CTaiwanListco0483HK20Bauhaus20Update2004JANpdf [15 October 2016]

bull Euromonitor International (June 2016)

bull GlobalData (2015) Bauhaus International (Holdings) Limited (483) - Financial and Strategic SWOT Analysis Review Available at httpstoreglobaldatacomcompany-reportsretailingbauhaus-international-holdings-limited-483-financial-and-strategic-swot-analysis-reviewWBWilvp97IU [15 October 2015]

bull Headline Daily rate card 2016 Available at httppaperhkheadlinecomhtmlRatecardpdf [5 December 2016]

bull The Information Services Department Hong Kong Special Administrative Region Government (April 2015) GovHK Website Hong Kong The Facts Available httpwwwgovhkenaboutabouthkfactsheetsdocspopulationpdf [30 October 2016]

bull JCDecaux Rate card 2016 Available at httpwwwjcdecauxcomhkmtr_packagehtml [5 Dec 2016]

bull Skypost Rate card 2016 Available at httpskypostulifestylecomhkresourcesadvertisementftlpdf [5 Dec 2016]

bull TVB Rate card 2016 Available at httpwwwtvbcomtvbsalesratecardratecardphpp=hd_jade [5 December 2016]

55

bull Public relations (公共關係) a planned communication effort by the Group to contribute to generally favourable attitudes amp opinions toward the Group amp its products

o Supporting charitable projects

o Supplying volunteers or other resources

o Participating in community-service events

o Sponsorship

o Providing information to customers through newsletters

39

40

Promotional plan

marketing

expenses budget

and

implementation

details

41

Promotional plan

marketing

expenses budget

and

implementation

details

42

Promotional plan

marketing

expenses budget

and

implementation

details

Business Management and Marketing Strategies

1[Think] - SWOT Analysis

2[Do] - Implementation plan

3[Check] - Evaluation measurement and Control

43

(c) Business plan A business plan of $10 million for launching a promotional project to improve Bauhaus Grouprsquos operations in Hong Kong which should be supported by a marketing expenses budget and implementation details

In order to evaluate the effectiveness of your recommendations you are required to analyse the projected impact on store locations sales and average spending per customer for the years ending 31 March 2017 and 2018

(25 marks ndash approximately 4 pages)

44

bull Bauhaus started in 1991 on Nathan Road Tsim Sha Tsui as a contemporary fashion store bringing the best of international brands to young trend-setters in Hong Kong [28 stores]

45

46

bull Sales data before and after the promotion

bull How many sales are a result of those promotions

bull Timing of promotion [ Hedonic consumption]

bull Customersrsquo preferences

bull Change of average spending per customers [Increaseddecreased]

bull Competitorsrsquo promotional campaigns

47

bull The median monthly domestic household income for 2014 was HK$23500 (vs for 2013 HK$22400)

48

(The Information Services Department HKSAR April 2015)

Company Shares of Apparel Accessories Value (2011-2015)

(Euromonitor 2016)

49

30 companies

50

51

52

53

Strategy Formulation

Evaluation

Implementation and Execution

54

bull Barits Ho Chong Securities Co Ltd (2006) Company Update Bauhaus International Available at httpwwwmegaseccomhkUploadFile5CTaiwanListco0483HK20Bauhaus20Update2004JANpdf [15 October 2016]

bull Euromonitor International (June 2016)

bull GlobalData (2015) Bauhaus International (Holdings) Limited (483) - Financial and Strategic SWOT Analysis Review Available at httpstoreglobaldatacomcompany-reportsretailingbauhaus-international-holdings-limited-483-financial-and-strategic-swot-analysis-reviewWBWilvp97IU [15 October 2015]

bull Headline Daily rate card 2016 Available at httppaperhkheadlinecomhtmlRatecardpdf [5 December 2016]

bull The Information Services Department Hong Kong Special Administrative Region Government (April 2015) GovHK Website Hong Kong The Facts Available httpwwwgovhkenaboutabouthkfactsheetsdocspopulationpdf [30 October 2016]

bull JCDecaux Rate card 2016 Available at httpwwwjcdecauxcomhkmtr_packagehtml [5 Dec 2016]

bull Skypost Rate card 2016 Available at httpskypostulifestylecomhkresourcesadvertisementftlpdf [5 Dec 2016]

bull TVB Rate card 2016 Available at httpwwwtvbcomtvbsalesratecardratecardphpp=hd_jade [5 December 2016]

55

40

Promotional plan

marketing

expenses budget

and

implementation

details

41

Promotional plan

marketing

expenses budget

and

implementation

details

42

Promotional plan

marketing

expenses budget

and

implementation

details

Business Management and Marketing Strategies

1[Think] - SWOT Analysis

2[Do] - Implementation plan

3[Check] - Evaluation measurement and Control

43

(c) Business plan A business plan of $10 million for launching a promotional project to improve Bauhaus Grouprsquos operations in Hong Kong which should be supported by a marketing expenses budget and implementation details

In order to evaluate the effectiveness of your recommendations you are required to analyse the projected impact on store locations sales and average spending per customer for the years ending 31 March 2017 and 2018

(25 marks ndash approximately 4 pages)

44

bull Bauhaus started in 1991 on Nathan Road Tsim Sha Tsui as a contemporary fashion store bringing the best of international brands to young trend-setters in Hong Kong [28 stores]

45

46

bull Sales data before and after the promotion

bull How many sales are a result of those promotions

bull Timing of promotion [ Hedonic consumption]

bull Customersrsquo preferences

bull Change of average spending per customers [Increaseddecreased]

bull Competitorsrsquo promotional campaigns

47

bull The median monthly domestic household income for 2014 was HK$23500 (vs for 2013 HK$22400)

48

(The Information Services Department HKSAR April 2015)

Company Shares of Apparel Accessories Value (2011-2015)

(Euromonitor 2016)

49

30 companies

50

51

52

53

Strategy Formulation

Evaluation

Implementation and Execution

54

bull Barits Ho Chong Securities Co Ltd (2006) Company Update Bauhaus International Available at httpwwwmegaseccomhkUploadFile5CTaiwanListco0483HK20Bauhaus20Update2004JANpdf [15 October 2016]

bull Euromonitor International (June 2016)

bull GlobalData (2015) Bauhaus International (Holdings) Limited (483) - Financial and Strategic SWOT Analysis Review Available at httpstoreglobaldatacomcompany-reportsretailingbauhaus-international-holdings-limited-483-financial-and-strategic-swot-analysis-reviewWBWilvp97IU [15 October 2015]

bull Headline Daily rate card 2016 Available at httppaperhkheadlinecomhtmlRatecardpdf [5 December 2016]

bull The Information Services Department Hong Kong Special Administrative Region Government (April 2015) GovHK Website Hong Kong The Facts Available httpwwwgovhkenaboutabouthkfactsheetsdocspopulationpdf [30 October 2016]

bull JCDecaux Rate card 2016 Available at httpwwwjcdecauxcomhkmtr_packagehtml [5 Dec 2016]

bull Skypost Rate card 2016 Available at httpskypostulifestylecomhkresourcesadvertisementftlpdf [5 Dec 2016]

bull TVB Rate card 2016 Available at httpwwwtvbcomtvbsalesratecardratecardphpp=hd_jade [5 December 2016]

55

41

Promotional plan

marketing

expenses budget

and

implementation

details

42

Promotional plan

marketing

expenses budget

and

implementation

details

Business Management and Marketing Strategies

1[Think] - SWOT Analysis

2[Do] - Implementation plan

3[Check] - Evaluation measurement and Control

43

(c) Business plan A business plan of $10 million for launching a promotional project to improve Bauhaus Grouprsquos operations in Hong Kong which should be supported by a marketing expenses budget and implementation details

In order to evaluate the effectiveness of your recommendations you are required to analyse the projected impact on store locations sales and average spending per customer for the years ending 31 March 2017 and 2018

(25 marks ndash approximately 4 pages)

44

bull Bauhaus started in 1991 on Nathan Road Tsim Sha Tsui as a contemporary fashion store bringing the best of international brands to young trend-setters in Hong Kong [28 stores]

45

46

bull Sales data before and after the promotion

bull How many sales are a result of those promotions

bull Timing of promotion [ Hedonic consumption]

bull Customersrsquo preferences

bull Change of average spending per customers [Increaseddecreased]

bull Competitorsrsquo promotional campaigns

47

bull The median monthly domestic household income for 2014 was HK$23500 (vs for 2013 HK$22400)

48

(The Information Services Department HKSAR April 2015)

Company Shares of Apparel Accessories Value (2011-2015)

(Euromonitor 2016)

49

30 companies

50

51

52

53

Strategy Formulation

Evaluation

Implementation and Execution

54

bull Barits Ho Chong Securities Co Ltd (2006) Company Update Bauhaus International Available at httpwwwmegaseccomhkUploadFile5CTaiwanListco0483HK20Bauhaus20Update2004JANpdf [15 October 2016]

bull Euromonitor International (June 2016)

bull GlobalData (2015) Bauhaus International (Holdings) Limited (483) - Financial and Strategic SWOT Analysis Review Available at httpstoreglobaldatacomcompany-reportsretailingbauhaus-international-holdings-limited-483-financial-and-strategic-swot-analysis-reviewWBWilvp97IU [15 October 2015]

bull Headline Daily rate card 2016 Available at httppaperhkheadlinecomhtmlRatecardpdf [5 December 2016]

bull The Information Services Department Hong Kong Special Administrative Region Government (April 2015) GovHK Website Hong Kong The Facts Available httpwwwgovhkenaboutabouthkfactsheetsdocspopulationpdf [30 October 2016]

bull JCDecaux Rate card 2016 Available at httpwwwjcdecauxcomhkmtr_packagehtml [5 Dec 2016]

bull Skypost Rate card 2016 Available at httpskypostulifestylecomhkresourcesadvertisementftlpdf [5 Dec 2016]

bull TVB Rate card 2016 Available at httpwwwtvbcomtvbsalesratecardratecardphpp=hd_jade [5 December 2016]

55

42

Promotional plan

marketing

expenses budget

and

implementation

details

Business Management and Marketing Strategies

1[Think] - SWOT Analysis

2[Do] - Implementation plan

3[Check] - Evaluation measurement and Control

43

(c) Business plan A business plan of $10 million for launching a promotional project to improve Bauhaus Grouprsquos operations in Hong Kong which should be supported by a marketing expenses budget and implementation details

In order to evaluate the effectiveness of your recommendations you are required to analyse the projected impact on store locations sales and average spending per customer for the years ending 31 March 2017 and 2018

(25 marks ndash approximately 4 pages)

44

bull Bauhaus started in 1991 on Nathan Road Tsim Sha Tsui as a contemporary fashion store bringing the best of international brands to young trend-setters in Hong Kong [28 stores]

45

46

bull Sales data before and after the promotion

bull How many sales are a result of those promotions

bull Timing of promotion [ Hedonic consumption]

bull Customersrsquo preferences

bull Change of average spending per customers [Increaseddecreased]

bull Competitorsrsquo promotional campaigns

47

bull The median monthly domestic household income for 2014 was HK$23500 (vs for 2013 HK$22400)

48

(The Information Services Department HKSAR April 2015)

Company Shares of Apparel Accessories Value (2011-2015)

(Euromonitor 2016)

49

30 companies

50

51

52

53

Strategy Formulation

Evaluation

Implementation and Execution

54

bull Barits Ho Chong Securities Co Ltd (2006) Company Update Bauhaus International Available at httpwwwmegaseccomhkUploadFile5CTaiwanListco0483HK20Bauhaus20Update2004JANpdf [15 October 2016]

bull Euromonitor International (June 2016)

bull GlobalData (2015) Bauhaus International (Holdings) Limited (483) - Financial and Strategic SWOT Analysis Review Available at httpstoreglobaldatacomcompany-reportsretailingbauhaus-international-holdings-limited-483-financial-and-strategic-swot-analysis-reviewWBWilvp97IU [15 October 2015]

bull Headline Daily rate card 2016 Available at httppaperhkheadlinecomhtmlRatecardpdf [5 December 2016]

bull The Information Services Department Hong Kong Special Administrative Region Government (April 2015) GovHK Website Hong Kong The Facts Available httpwwwgovhkenaboutabouthkfactsheetsdocspopulationpdf [30 October 2016]

bull JCDecaux Rate card 2016 Available at httpwwwjcdecauxcomhkmtr_packagehtml [5 Dec 2016]

bull Skypost Rate card 2016 Available at httpskypostulifestylecomhkresourcesadvertisementftlpdf [5 Dec 2016]

bull TVB Rate card 2016 Available at httpwwwtvbcomtvbsalesratecardratecardphpp=hd_jade [5 December 2016]

55

Business Management and Marketing Strategies

1[Think] - SWOT Analysis

2[Do] - Implementation plan

3[Check] - Evaluation measurement and Control

43

(c) Business plan A business plan of $10 million for launching a promotional project to improve Bauhaus Grouprsquos operations in Hong Kong which should be supported by a marketing expenses budget and implementation details

In order to evaluate the effectiveness of your recommendations you are required to analyse the projected impact on store locations sales and average spending per customer for the years ending 31 March 2017 and 2018

(25 marks ndash approximately 4 pages)

44

bull Bauhaus started in 1991 on Nathan Road Tsim Sha Tsui as a contemporary fashion store bringing the best of international brands to young trend-setters in Hong Kong [28 stores]

45

46

bull Sales data before and after the promotion

bull How many sales are a result of those promotions

bull Timing of promotion [ Hedonic consumption]

bull Customersrsquo preferences

bull Change of average spending per customers [Increaseddecreased]

bull Competitorsrsquo promotional campaigns

47

bull The median monthly domestic household income for 2014 was HK$23500 (vs for 2013 HK$22400)

48

(The Information Services Department HKSAR April 2015)

Company Shares of Apparel Accessories Value (2011-2015)

(Euromonitor 2016)

49

30 companies

50

51

52

53

Strategy Formulation

Evaluation

Implementation and Execution

54

bull Barits Ho Chong Securities Co Ltd (2006) Company Update Bauhaus International Available at httpwwwmegaseccomhkUploadFile5CTaiwanListco0483HK20Bauhaus20Update2004JANpdf [15 October 2016]

bull Euromonitor International (June 2016)

bull GlobalData (2015) Bauhaus International (Holdings) Limited (483) - Financial and Strategic SWOT Analysis Review Available at httpstoreglobaldatacomcompany-reportsretailingbauhaus-international-holdings-limited-483-financial-and-strategic-swot-analysis-reviewWBWilvp97IU [15 October 2015]

bull Headline Daily rate card 2016 Available at httppaperhkheadlinecomhtmlRatecardpdf [5 December 2016]

bull The Information Services Department Hong Kong Special Administrative Region Government (April 2015) GovHK Website Hong Kong The Facts Available httpwwwgovhkenaboutabouthkfactsheetsdocspopulationpdf [30 October 2016]

bull JCDecaux Rate card 2016 Available at httpwwwjcdecauxcomhkmtr_packagehtml [5 Dec 2016]

bull Skypost Rate card 2016 Available at httpskypostulifestylecomhkresourcesadvertisementftlpdf [5 Dec 2016]

bull TVB Rate card 2016 Available at httpwwwtvbcomtvbsalesratecardratecardphpp=hd_jade [5 December 2016]

55

(c) Business plan A business plan of $10 million for launching a promotional project to improve Bauhaus Grouprsquos operations in Hong Kong which should be supported by a marketing expenses budget and implementation details

In order to evaluate the effectiveness of your recommendations you are required to analyse the projected impact on store locations sales and average spending per customer for the years ending 31 March 2017 and 2018

(25 marks ndash approximately 4 pages)

44

bull Bauhaus started in 1991 on Nathan Road Tsim Sha Tsui as a contemporary fashion store bringing the best of international brands to young trend-setters in Hong Kong [28 stores]

45

46

bull Sales data before and after the promotion

bull How many sales are a result of those promotions

bull Timing of promotion [ Hedonic consumption]

bull Customersrsquo preferences

bull Change of average spending per customers [Increaseddecreased]

bull Competitorsrsquo promotional campaigns

47

bull The median monthly domestic household income for 2014 was HK$23500 (vs for 2013 HK$22400)

48

(The Information Services Department HKSAR April 2015)

Company Shares of Apparel Accessories Value (2011-2015)

(Euromonitor 2016)

49

30 companies

50

51

52

53

Strategy Formulation

Evaluation

Implementation and Execution

54

bull Barits Ho Chong Securities Co Ltd (2006) Company Update Bauhaus International Available at httpwwwmegaseccomhkUploadFile5CTaiwanListco0483HK20Bauhaus20Update2004JANpdf [15 October 2016]

bull Euromonitor International (June 2016)

bull GlobalData (2015) Bauhaus International (Holdings) Limited (483) - Financial and Strategic SWOT Analysis Review Available at httpstoreglobaldatacomcompany-reportsretailingbauhaus-international-holdings-limited-483-financial-and-strategic-swot-analysis-reviewWBWilvp97IU [15 October 2015]

bull Headline Daily rate card 2016 Available at httppaperhkheadlinecomhtmlRatecardpdf [5 December 2016]

bull The Information Services Department Hong Kong Special Administrative Region Government (April 2015) GovHK Website Hong Kong The Facts Available httpwwwgovhkenaboutabouthkfactsheetsdocspopulationpdf [30 October 2016]

bull JCDecaux Rate card 2016 Available at httpwwwjcdecauxcomhkmtr_packagehtml [5 Dec 2016]

bull Skypost Rate card 2016 Available at httpskypostulifestylecomhkresourcesadvertisementftlpdf [5 Dec 2016]

bull TVB Rate card 2016 Available at httpwwwtvbcomtvbsalesratecardratecardphpp=hd_jade [5 December 2016]

55

bull Bauhaus started in 1991 on Nathan Road Tsim Sha Tsui as a contemporary fashion store bringing the best of international brands to young trend-setters in Hong Kong [28 stores]

45

46

bull Sales data before and after the promotion

bull How many sales are a result of those promotions

bull Timing of promotion [ Hedonic consumption]

bull Customersrsquo preferences

bull Change of average spending per customers [Increaseddecreased]

bull Competitorsrsquo promotional campaigns

47

bull The median monthly domestic household income for 2014 was HK$23500 (vs for 2013 HK$22400)

48

(The Information Services Department HKSAR April 2015)

Company Shares of Apparel Accessories Value (2011-2015)

(Euromonitor 2016)

49

30 companies

50

51

52

53

Strategy Formulation

Evaluation

Implementation and Execution

54

bull Barits Ho Chong Securities Co Ltd (2006) Company Update Bauhaus International Available at httpwwwmegaseccomhkUploadFile5CTaiwanListco0483HK20Bauhaus20Update2004JANpdf [15 October 2016]

bull Euromonitor International (June 2016)

bull GlobalData (2015) Bauhaus International (Holdings) Limited (483) - Financial and Strategic SWOT Analysis Review Available at httpstoreglobaldatacomcompany-reportsretailingbauhaus-international-holdings-limited-483-financial-and-strategic-swot-analysis-reviewWBWilvp97IU [15 October 2015]

bull Headline Daily rate card 2016 Available at httppaperhkheadlinecomhtmlRatecardpdf [5 December 2016]

bull The Information Services Department Hong Kong Special Administrative Region Government (April 2015) GovHK Website Hong Kong The Facts Available httpwwwgovhkenaboutabouthkfactsheetsdocspopulationpdf [30 October 2016]

bull JCDecaux Rate card 2016 Available at httpwwwjcdecauxcomhkmtr_packagehtml [5 Dec 2016]

bull Skypost Rate card 2016 Available at httpskypostulifestylecomhkresourcesadvertisementftlpdf [5 Dec 2016]

bull TVB Rate card 2016 Available at httpwwwtvbcomtvbsalesratecardratecardphpp=hd_jade [5 December 2016]

55

46

bull Sales data before and after the promotion

bull How many sales are a result of those promotions

bull Timing of promotion [ Hedonic consumption]

bull Customersrsquo preferences

bull Change of average spending per customers [Increaseddecreased]

bull Competitorsrsquo promotional campaigns

47

bull The median monthly domestic household income for 2014 was HK$23500 (vs for 2013 HK$22400)

48

(The Information Services Department HKSAR April 2015)

Company Shares of Apparel Accessories Value (2011-2015)

(Euromonitor 2016)

49

30 companies

50

51

52

53

Strategy Formulation

Evaluation

Implementation and Execution

54

bull Barits Ho Chong Securities Co Ltd (2006) Company Update Bauhaus International Available at httpwwwmegaseccomhkUploadFile5CTaiwanListco0483HK20Bauhaus20Update2004JANpdf [15 October 2016]

bull Euromonitor International (June 2016)

bull GlobalData (2015) Bauhaus International (Holdings) Limited (483) - Financial and Strategic SWOT Analysis Review Available at httpstoreglobaldatacomcompany-reportsretailingbauhaus-international-holdings-limited-483-financial-and-strategic-swot-analysis-reviewWBWilvp97IU [15 October 2015]

bull Headline Daily rate card 2016 Available at httppaperhkheadlinecomhtmlRatecardpdf [5 December 2016]

bull The Information Services Department Hong Kong Special Administrative Region Government (April 2015) GovHK Website Hong Kong The Facts Available httpwwwgovhkenaboutabouthkfactsheetsdocspopulationpdf [30 October 2016]

bull JCDecaux Rate card 2016 Available at httpwwwjcdecauxcomhkmtr_packagehtml [5 Dec 2016]

bull Skypost Rate card 2016 Available at httpskypostulifestylecomhkresourcesadvertisementftlpdf [5 Dec 2016]

bull TVB Rate card 2016 Available at httpwwwtvbcomtvbsalesratecardratecardphpp=hd_jade [5 December 2016]

55

bull Sales data before and after the promotion

bull How many sales are a result of those promotions

bull Timing of promotion [ Hedonic consumption]

bull Customersrsquo preferences

bull Change of average spending per customers [Increaseddecreased]

bull Competitorsrsquo promotional campaigns

47

bull The median monthly domestic household income for 2014 was HK$23500 (vs for 2013 HK$22400)

48

(The Information Services Department HKSAR April 2015)

Company Shares of Apparel Accessories Value (2011-2015)

(Euromonitor 2016)

49

30 companies

50

51

52

53

Strategy Formulation

Evaluation

Implementation and Execution

54

bull Barits Ho Chong Securities Co Ltd (2006) Company Update Bauhaus International Available at httpwwwmegaseccomhkUploadFile5CTaiwanListco0483HK20Bauhaus20Update2004JANpdf [15 October 2016]

bull Euromonitor International (June 2016)

bull GlobalData (2015) Bauhaus International (Holdings) Limited (483) - Financial and Strategic SWOT Analysis Review Available at httpstoreglobaldatacomcompany-reportsretailingbauhaus-international-holdings-limited-483-financial-and-strategic-swot-analysis-reviewWBWilvp97IU [15 October 2015]

bull Headline Daily rate card 2016 Available at httppaperhkheadlinecomhtmlRatecardpdf [5 December 2016]

bull The Information Services Department Hong Kong Special Administrative Region Government (April 2015) GovHK Website Hong Kong The Facts Available httpwwwgovhkenaboutabouthkfactsheetsdocspopulationpdf [30 October 2016]

bull JCDecaux Rate card 2016 Available at httpwwwjcdecauxcomhkmtr_packagehtml [5 Dec 2016]

bull Skypost Rate card 2016 Available at httpskypostulifestylecomhkresourcesadvertisementftlpdf [5 Dec 2016]

bull TVB Rate card 2016 Available at httpwwwtvbcomtvbsalesratecardratecardphpp=hd_jade [5 December 2016]

55

bull The median monthly domestic household income for 2014 was HK$23500 (vs for 2013 HK$22400)

48

(The Information Services Department HKSAR April 2015)

Company Shares of Apparel Accessories Value (2011-2015)

(Euromonitor 2016)

49

30 companies

50

51

52

53

Strategy Formulation

Evaluation

Implementation and Execution

54

bull Barits Ho Chong Securities Co Ltd (2006) Company Update Bauhaus International Available at httpwwwmegaseccomhkUploadFile5CTaiwanListco0483HK20Bauhaus20Update2004JANpdf [15 October 2016]

bull Euromonitor International (June 2016)

bull GlobalData (2015) Bauhaus International (Holdings) Limited (483) - Financial and Strategic SWOT Analysis Review Available at httpstoreglobaldatacomcompany-reportsretailingbauhaus-international-holdings-limited-483-financial-and-strategic-swot-analysis-reviewWBWilvp97IU [15 October 2015]

bull Headline Daily rate card 2016 Available at httppaperhkheadlinecomhtmlRatecardpdf [5 December 2016]

bull The Information Services Department Hong Kong Special Administrative Region Government (April 2015) GovHK Website Hong Kong The Facts Available httpwwwgovhkenaboutabouthkfactsheetsdocspopulationpdf [30 October 2016]

bull JCDecaux Rate card 2016 Available at httpwwwjcdecauxcomhkmtr_packagehtml [5 Dec 2016]

bull Skypost Rate card 2016 Available at httpskypostulifestylecomhkresourcesadvertisementftlpdf [5 Dec 2016]

bull TVB Rate card 2016 Available at httpwwwtvbcomtvbsalesratecardratecardphpp=hd_jade [5 December 2016]

55

Company Shares of Apparel Accessories Value (2011-2015)

(Euromonitor 2016)

49

30 companies

50

51

52

53

Strategy Formulation

Evaluation

Implementation and Execution

54

bull Barits Ho Chong Securities Co Ltd (2006) Company Update Bauhaus International Available at httpwwwmegaseccomhkUploadFile5CTaiwanListco0483HK20Bauhaus20Update2004JANpdf [15 October 2016]

bull Euromonitor International (June 2016)

bull GlobalData (2015) Bauhaus International (Holdings) Limited (483) - Financial and Strategic SWOT Analysis Review Available at httpstoreglobaldatacomcompany-reportsretailingbauhaus-international-holdings-limited-483-financial-and-strategic-swot-analysis-reviewWBWilvp97IU [15 October 2015]

bull Headline Daily rate card 2016 Available at httppaperhkheadlinecomhtmlRatecardpdf [5 December 2016]

bull The Information Services Department Hong Kong Special Administrative Region Government (April 2015) GovHK Website Hong Kong The Facts Available httpwwwgovhkenaboutabouthkfactsheetsdocspopulationpdf [30 October 2016]

bull JCDecaux Rate card 2016 Available at httpwwwjcdecauxcomhkmtr_packagehtml [5 Dec 2016]

bull Skypost Rate card 2016 Available at httpskypostulifestylecomhkresourcesadvertisementftlpdf [5 Dec 2016]

bull TVB Rate card 2016 Available at httpwwwtvbcomtvbsalesratecardratecardphpp=hd_jade [5 December 2016]

55

50

51

52

53

Strategy Formulation

Evaluation

Implementation and Execution

54

bull Barits Ho Chong Securities Co Ltd (2006) Company Update Bauhaus International Available at httpwwwmegaseccomhkUploadFile5CTaiwanListco0483HK20Bauhaus20Update2004JANpdf [15 October 2016]

bull Euromonitor International (June 2016)

bull GlobalData (2015) Bauhaus International (Holdings) Limited (483) - Financial and Strategic SWOT Analysis Review Available at httpstoreglobaldatacomcompany-reportsretailingbauhaus-international-holdings-limited-483-financial-and-strategic-swot-analysis-reviewWBWilvp97IU [15 October 2015]

bull Headline Daily rate card 2016 Available at httppaperhkheadlinecomhtmlRatecardpdf [5 December 2016]

bull The Information Services Department Hong Kong Special Administrative Region Government (April 2015) GovHK Website Hong Kong The Facts Available httpwwwgovhkenaboutabouthkfactsheetsdocspopulationpdf [30 October 2016]

bull JCDecaux Rate card 2016 Available at httpwwwjcdecauxcomhkmtr_packagehtml [5 Dec 2016]

bull Skypost Rate card 2016 Available at httpskypostulifestylecomhkresourcesadvertisementftlpdf [5 Dec 2016]

bull TVB Rate card 2016 Available at httpwwwtvbcomtvbsalesratecardratecardphpp=hd_jade [5 December 2016]

55

51

52

53

Strategy Formulation

Evaluation

Implementation and Execution

54

bull Barits Ho Chong Securities Co Ltd (2006) Company Update Bauhaus International Available at httpwwwmegaseccomhkUploadFile5CTaiwanListco0483HK20Bauhaus20Update2004JANpdf [15 October 2016]

bull Euromonitor International (June 2016)

bull GlobalData (2015) Bauhaus International (Holdings) Limited (483) - Financial and Strategic SWOT Analysis Review Available at httpstoreglobaldatacomcompany-reportsretailingbauhaus-international-holdings-limited-483-financial-and-strategic-swot-analysis-reviewWBWilvp97IU [15 October 2015]

bull Headline Daily rate card 2016 Available at httppaperhkheadlinecomhtmlRatecardpdf [5 December 2016]

bull The Information Services Department Hong Kong Special Administrative Region Government (April 2015) GovHK Website Hong Kong The Facts Available httpwwwgovhkenaboutabouthkfactsheetsdocspopulationpdf [30 October 2016]

bull JCDecaux Rate card 2016 Available at httpwwwjcdecauxcomhkmtr_packagehtml [5 Dec 2016]

bull Skypost Rate card 2016 Available at httpskypostulifestylecomhkresourcesadvertisementftlpdf [5 Dec 2016]

bull TVB Rate card 2016 Available at httpwwwtvbcomtvbsalesratecardratecardphpp=hd_jade [5 December 2016]

55

52

53

Strategy Formulation

Evaluation

Implementation and Execution

54

bull Barits Ho Chong Securities Co Ltd (2006) Company Update Bauhaus International Available at httpwwwmegaseccomhkUploadFile5CTaiwanListco0483HK20Bauhaus20Update2004JANpdf [15 October 2016]

bull Euromonitor International (June 2016)

bull GlobalData (2015) Bauhaus International (Holdings) Limited (483) - Financial and Strategic SWOT Analysis Review Available at httpstoreglobaldatacomcompany-reportsretailingbauhaus-international-holdings-limited-483-financial-and-strategic-swot-analysis-reviewWBWilvp97IU [15 October 2015]

bull Headline Daily rate card 2016 Available at httppaperhkheadlinecomhtmlRatecardpdf [5 December 2016]

bull The Information Services Department Hong Kong Special Administrative Region Government (April 2015) GovHK Website Hong Kong The Facts Available httpwwwgovhkenaboutabouthkfactsheetsdocspopulationpdf [30 October 2016]

bull JCDecaux Rate card 2016 Available at httpwwwjcdecauxcomhkmtr_packagehtml [5 Dec 2016]

bull Skypost Rate card 2016 Available at httpskypostulifestylecomhkresourcesadvertisementftlpdf [5 Dec 2016]

bull TVB Rate card 2016 Available at httpwwwtvbcomtvbsalesratecardratecardphpp=hd_jade [5 December 2016]

55

53

Strategy Formulation

Evaluation

Implementation and Execution

54

bull Barits Ho Chong Securities Co Ltd (2006) Company Update Bauhaus International Available at httpwwwmegaseccomhkUploadFile5CTaiwanListco0483HK20Bauhaus20Update2004JANpdf [15 October 2016]

bull Euromonitor International (June 2016)

bull GlobalData (2015) Bauhaus International (Holdings) Limited (483) - Financial and Strategic SWOT Analysis Review Available at httpstoreglobaldatacomcompany-reportsretailingbauhaus-international-holdings-limited-483-financial-and-strategic-swot-analysis-reviewWBWilvp97IU [15 October 2015]

bull Headline Daily rate card 2016 Available at httppaperhkheadlinecomhtmlRatecardpdf [5 December 2016]

bull The Information Services Department Hong Kong Special Administrative Region Government (April 2015) GovHK Website Hong Kong The Facts Available httpwwwgovhkenaboutabouthkfactsheetsdocspopulationpdf [30 October 2016]

bull JCDecaux Rate card 2016 Available at httpwwwjcdecauxcomhkmtr_packagehtml [5 Dec 2016]

bull Skypost Rate card 2016 Available at httpskypostulifestylecomhkresourcesadvertisementftlpdf [5 Dec 2016]

bull TVB Rate card 2016 Available at httpwwwtvbcomtvbsalesratecardratecardphpp=hd_jade [5 December 2016]

55

54

bull Barits Ho Chong Securities Co Ltd (2006) Company Update Bauhaus International Available at httpwwwmegaseccomhkUploadFile5CTaiwanListco0483HK20Bauhaus20Update2004JANpdf [15 October 2016]

bull Euromonitor International (June 2016)

bull GlobalData (2015) Bauhaus International (Holdings) Limited (483) - Financial and Strategic SWOT Analysis Review Available at httpstoreglobaldatacomcompany-reportsretailingbauhaus-international-holdings-limited-483-financial-and-strategic-swot-analysis-reviewWBWilvp97IU [15 October 2015]

bull Headline Daily rate card 2016 Available at httppaperhkheadlinecomhtmlRatecardpdf [5 December 2016]

bull The Information Services Department Hong Kong Special Administrative Region Government (April 2015) GovHK Website Hong Kong The Facts Available httpwwwgovhkenaboutabouthkfactsheetsdocspopulationpdf [30 October 2016]

bull JCDecaux Rate card 2016 Available at httpwwwjcdecauxcomhkmtr_packagehtml [5 Dec 2016]

bull Skypost Rate card 2016 Available at httpskypostulifestylecomhkresourcesadvertisementftlpdf [5 Dec 2016]

bull TVB Rate card 2016 Available at httpwwwtvbcomtvbsalesratecardratecardphpp=hd_jade [5 December 2016]

55

bull Barits Ho Chong Securities Co Ltd (2006) Company Update Bauhaus International Available at httpwwwmegaseccomhkUploadFile5CTaiwanListco0483HK20Bauhaus20Update2004JANpdf [15 October 2016]

bull Euromonitor International (June 2016)

bull GlobalData (2015) Bauhaus International (Holdings) Limited (483) - Financial and Strategic SWOT Analysis Review Available at httpstoreglobaldatacomcompany-reportsretailingbauhaus-international-holdings-limited-483-financial-and-strategic-swot-analysis-reviewWBWilvp97IU [15 October 2015]

bull Headline Daily rate card 2016 Available at httppaperhkheadlinecomhtmlRatecardpdf [5 December 2016]

bull The Information Services Department Hong Kong Special Administrative Region Government (April 2015) GovHK Website Hong Kong The Facts Available httpwwwgovhkenaboutabouthkfactsheetsdocspopulationpdf [30 October 2016]

bull JCDecaux Rate card 2016 Available at httpwwwjcdecauxcomhkmtr_packagehtml [5 Dec 2016]

bull Skypost Rate card 2016 Available at httpskypostulifestylecomhkresourcesadvertisementftlpdf [5 Dec 2016]

bull TVB Rate card 2016 Available at httpwwwtvbcomtvbsalesratecardratecardphpp=hd_jade [5 December 2016]

55

56