HTM 2121Tourism and Hospitality

Marketing Bakery-Bread-Volution

LAM Chung Yin, Joyin 11218420D LAU Chui Man, Oliana 11214484D WAN Chun Chi, Curtis 11206596D WAN Cheuk Yan, Patrick 11073707D WONG Hang Han, Katrina 11156490D

• Link: http://www.youtube.com/watch?v=-PCrLa7cgmM

Mission

‘Healthy, Tasty, Variety’• Healthy: healthy products • Tasty: consistent high product quality• Variety: healthy ingredients from 5

countries: China, Taiwan, Korea, Japan, Germany

Objectives

• Minimize the Net Loss for the first year

• Have a positive word of mouth within the Causeway Bay

• Obtain product quality leadership

Positioning

• Pioneer in Healthy Products

• Middle-class

• Outdoor Sitting

Targeted Customers

• People live or work in Causeway Bay

• Mid-class (with relatively high disposable income)

Opportunities and Threats

Opportunities Threats

Rise in technology and media Intense competition of bakery industry

Government support Ever-changing customer's taste and business environment

Growing Health and Environmental Protection Concern

Bakery Cafe trend

4Ps

• Place• Price• Promotion• Products

Place

• First store: WTC Mall in Causeway Bay• Place with many big brand stores and offices

locate at sixth floor and aboveReasons Disadvantages

• One of the landmarks in Hong Kong Island

• Large customer flow (Weekend and with promotional activities)

•Easy Access to target customers

•Land rent: $500,000 per month

•BUT: Avoid resettling the store once find the place is inappropriate

Place

Place

Inside Bakery:• 600 ft and locate at 3rd floor• White as main color Provide warmness to customers

• L-shaped open kitchen• Setting up 3 tables and 6 chairs Customers to dine

Place

Distribution strategy:• Exclusive distribution Reason: setting up one outlet due to high

setting up cost• Direct distribution strategy Reason: Provide customer linkage and save

middlemen fee

Price

• Marketing Objectives: Survival+ Current Profit Maximization+ Product Quality Leadership

• Competition-Based Pricing: (Similar price to our competitors, but$1-2 more

End-Benefit Effect + Unique Value effect +Price Quality Effect)

• Price- Adjustment Strategies• Discount pricing • Last-minute pricing

Price

Product Price Range Average Price

Bread $23-27 $25 (before 7 pm)$20 (after 7 pm)

Cake $330-$375 $350

Beverage $35-$50 $45

Promotion• Sales Promotion• Internet

-Own Website-Openrice

• Magazines• Handout• Apps

•Membership

•Digital Screen

•Taste Test Counter

Promotion

• Sample of leaflet

Product

• Healthy Trend Economic growth + Consciousness+ Big Market e.g. Japan ‘Food is the key to health’

IngredientsValue the benefit and nutrition acquire healthy specialty

e.g. Papaya (China): preventing cancer, lowering the workload of stomach, smartening-up ladies’ body shapes and benefiting lungs’ function

Product

• Pastries Bread and Muffin Cake Toast Pie and Tart

•Scented Tea

Product

• Cooking Guideline ‘Low fat, sugar and salt but High fiber’

• Other Services Free water and Microwave oven

wide range of products to bring customers a varied choice, a tasty try and a healthy life

Budget

For first three months:• Projected 900 breads, 35 slices of cakes and 40

cups of scented tea to be sold everyday

• Continuous promotion and word of mouth: 2% bread sales revenue and 3% cake sales revenue

• Expected to be slow down at the final quarter of

year: 0.8% bread and cake sales revenue, 1% beverage sales revenue

Budget

• Breakeven revenue (Using the first quarter as indicator):

[$1,325,500/ (894,180-275,932)] x894,180 =2.143962x894180 =$1,917,087.6

Expect 1 year and 3 months is able to achieve break-even point

Marketing Control

Based on: • Sale volume• Effective promotion• Product Quality Relationship• Progression with the change in external environment

Achieve revenue generation purposeImportant in tracking the businessEnsure appropriate action to be taken if standard is not madeCan maintain the life span of business

Milestone

1 MAR 2012

31 AUG2012

30 APR 2012

31 MAY 2012

30 JUN 2012

31 JUL 2012

Investment Licensing Signing Contract

Renovation Purchasing equipment

Recruitment Selection

Training

Trial Opening + Promotional scheme: Quality-tasting

Normal OperationPromotional scheme:Promotional Discounts,Membership,Leaflets,QR code & apps for bakery