HTM 2121Marketing Plan about selling

Ko Wing Fung, Andy 11009504DChan Ka Shan, Kathy 11026954D

Yu Ka Wai, Alexa 11190834DWong Wing Lam, Cindy 11034973D

Wong Pui Hei, Parrick 11268750D

By

RundownIntroduction

Analysis on the internal and external environment

Consumer Behavior

Segmentation, Targeting and Positioning

Direction, Objectives & Marketing Support

Marketing strategies and program – 4Ps Market budget plan

Marketing control

Understanding Market and customer

• Many teenagers like to buy chocolates – for own consumption – send to friends as a gift

• Our company is a partnership business

• have experience on making chocolates

• sell hand-made chocolate

Introduction

Internal

External

Business environmen

t

• Resources of the company– Human Resources– Financial Resources

• Supply• Competitors and substitutes– Large-scale chocolatier– Snack shop & chocolate shop in

shopping mall– DIY chocolate shop

Internal Environment

• Human Resources (Partnership)– Bear the risks of the company– Morale is relatively higher– Years of chocolates production

experience– Ensure good quality

• Financial Resources– Insufficient capital– Difficult to expand the scale

Resources of company

• Local chain suppliers– Price are relatively low

• Import from foreign country– More expensive

• Concern the stability of the suppliers and the quality of the materials

• Business relationship

Supply

• Large-scale chocolatier• Sell their products in the supermarkets

and different chain stores like Meiji

• Snack shop in the shopping malls• Attracting teenagers

• Chocolate Shops in the shopping malls• Selling high quality chocolate

• Other DIY chocolate shop

Competitors and substitutes

• Main competitors: DIY handmade chocolatiers

• Affection

• Differentiation with Affection

Focus of the productsSupplier and materials used in the production Selling Price of its products

Main competitor analysis

PoliticalNatural Resourc

es

Economical

Technological

External environment

• Political– Guidelines of the usage of

preservation• Natural resources– Environmental protection acts like

by using organic chocolate is crucial– using synthetic fertilizer or

pesticides

Political and Natural resources

• Income of customers– Affordability and purchasing power

• Spending pattern of customers– Propensity to consume- willingness to

save consume?• Global economic condition– Business cycle, exchange rate

Economical

• Use of machine– Mass production– Control the production cost

• Promotion– Use of internet, Social media

Technological

• Affected by – Culture– Subculture– Class

• Influenced by social connections• Personal factors• Other factors

Understanding Market and Customers

• People are more concern about healthy lifestyle

• More careful to choose the type of snacks

• Government implemented nutritional labeling policy

• School restrict canteen to sell junk food

Cultural, subculture factors

• Customer influenced by social connections– Peer pressure from friends or

classmates– More appreciating to listen the

comments from their friends• Personal factors– Like to try the new product from

different companies

Social connections and personal factors

• Teenagers concern more about the appearance of the packages– Peer influencing power– Positive comment

• Consider the price– Cannot afford expensive products

Other factors

• Survey- “Analysis of chocolate market demand in Hong Kong”– Teenagers buy chocolate from

supermarket & confectionery shop– Contribute over 80% of the total

market share– 58.16% of them will buy chocolate as

gift during festivals– 45.68% will prefer to buy the

handmade chocolate

Consumer behavior

• Segmentation– ‘Income’ and ‘Age’ as our segment

variables– Target customers with teenage and

low to middle income• Targeting– Focus on marketing attention– Aged 13-19– Willing to spend pocket money to buy

snacks– Focus on appearance of the products

Segmentation, Targeting &Positioning

• Positioning– Create an unique image in the

market, – Have the most unique design and

special packing– Buy our products as gifts to send to

others during festivals • Valentine’s Day• Christmas Eve

Segmentation, Targeting &Positioning

• Financial Objectives

Planning direction, objective & marketing support

Planning direction, objective & marketing support

• Marketing Objectives– Chocolate is not only the snack, but a gift

which represents love and caring– Presenting and introducing our

brand/products to our target customers (promotion)

– Develop and introduce three new products in the coming year

– Open a new branch after three year and open 1 branch yearly afterward

– Ultimate goal • To expand distribution to supermarket within

7 years.

Planning direction, objective & marketing support

Marketing strategy and program

Product

Price

PlacePromoti

on

Marketing 4Ps

• Target customer : teenagers (Aged 13-19)

• Handmade chocolates • Raw materials: Dark chocolate

with different % of bitter and milk chocolate

• To create some special collections of chocolates

Product

Product Why?

Milk chocolate Familiar flavor

Dark chocolate Familiar flavor

Low fat & sugar chocolate Healthy & ↓ calories

Fruitful chocolate ,e.g orange ,strawberry

Taste good and familiar

Hazel nuts ,rum wine, truffle popularMilk chocolate with different English letter

Special decoration

Chocolate with different shape ,e.g star, heart ,circle

special

• Buy the handmade chocolate during some special festivals e,g. Valentine’s Day– For gift

• ∵ Concern on the appearance of the whole package– Different packing other than normal one– Customer to pack the chocolate by themselves– Choose different types of chocolate by their own– E,g. Choose the chocolate with words and

combine into a name or any words• Unique • Beautiful• Some beautiful packaging boxes

Product

• Internal factors – Marketing objectives• Set the minimum possible price so as

to attract teenagers

– Cost of production• Considering the total cost involved &

target sales revenue

– Marketing mix variables• Total budgeted promotion expense• Huge cost incurred

Price

• External Factors– Market and Demand– Allocate more resources & cost on the

product which has a higher demand– Questionnaire Milk chocolate flavor– Produce more milk chocolate-related

product to attract more teenagers– Earn more revenue– Becomes the market share leader

Price

• Cost-based pricing– Depending on the production cost

involved• Reasons:– Affordability of teenagers• Limited income• Marketing objectives• Presenting the value of the product

Price

Price list

• Direct selling distribution channel– Produce and sell in our own outlet

• Selling handmade chocolate– Easier to receive feedback from

customer directly + carry out marketing control

• Hard to have mass production– Cannot afford the cost of slotting

allowance if we sell through retailers

Place

• Location : Mongkok CMTA centre• Size of targeted booth: 170 sq ft• Rental cost: $8800 per month

Place

• 7 promotional strategies1.Official website2.Facebook webpages3.Provide coupons4.Booklets5.After-sales service6.Workshops7.Free trying

Promotion

• Providing more information to public -> Products’ ingredient and packaging introduction -> Releasing the latest promotion• Membership -> Sending the latest promotion and events -> Free birthday gift and Birthday cards -> Providing discountsGoal : - To enhance their loyalty- To provide a platform to public who can know more our brands

Official website and facebook

Provide coupons

• Through other websites (Jet So.com) -> People will have willing to try more new products -> Share with friends and more people can try our products -> Know more products when they come and our staff recommend

Goal : - To enhance profit- More customers come and buy

Providing coupons

• Different visions-> E.g. Birthday, Valentine’s Day, Mothers’ Day collection

-> Packaging promotion -> Provide general information

Goal : - People can share the booklets to others and more people can get our messages- To provide the fruitful feeling to customers

Booklets

• To help customers send the gift and card to their love

• Provide convenience -> Unable send the gift will miss a chance to present the love

Goal : - To establish the goodwill- To establish the icon of love sender - To attract more customers - To increase the profit

After sale services

• Experienced tutor-> Customer can produce beautiful and good taste chocolate

• Providing a chance to customer produce their unite product-> Really represent their love-> Unforgettable memory for them

Goal :- Brand can equal to gift and love- The fees can increase the profit

Workshops

• Set up booth nearly the shop-> attract more people pay attentions to our shop

• Promote the special products-> taste and attract them to buy-> know our brand and products directly-> collect the feedback easily

Goal :- More people know our brand - To enhance the profit if they buy our products after they taste- People will focus on our new brand immediately

Free trial

-The Promotion The details The period of the promotion

The person who responsible

Official website Establish and update Keep going Patrick and Kathy

Facebook webpage Establish and manager the membership

Keep going Kathy and Andy

Booklets Design and research Every months Alexa and Cindy

After-sales service Set up the details and select the employees

Keep Going Andy and Patrick

Workshops Be tutor, design the course and control the cost

Every two week (having course)Keep going (design the course)

Cindy, Kathy and Alexa

Booth for free trying Apply from the mall, produce the chocolate and make the promotion materials

The first month of business begin

Andy, Patrick and Cindy

Implementation milestone

• Projected Sales– Stable growth of

sales– Growing trend to put

focus on healthy– Relevant product

would attain highest growth rate

– Provide a new idea and choice for teenagers

Marketing budget plan

Target Sales revenue: $174,000

= 10%

Marketing strategy and program

• Annual plan control• Profitability control• Productivity control• Strategic control• Apply to 4Ps elements

Marketing control

• Product– Interview or survey conducted by

customer– Giving incentive like discounts– Know whether customer satisfied or not– Know how to enhance the quality

• Promotion– Evaluating the volume of sales per

month– Survey on how customer know our shop

Marketing control

• Price– Review pricing strategy regularly– Forecast and review the sales and

cost• Know the change in market demand• Review the profitability

– Make change on pricing strategy if necessary

Marketing control