Marketing (Group F)
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Transcript of Marketing (Group F)
ORGREENIC BAKERY
Group Members:Shung Chi Tao Jennifer 11523480dCheng Ka Wan 11346388dWu Shan Ting 11343039dMok Yee Sum Eugenia 11256305d
Marketing HTM 2121
Business Concept
Vision Statement
“To provide quality and nutritious bread to all customers”
Mission Statement
“To promote green and healthy brad as the essential diets for everyone, particularly
office ladies”
Business concept
Objectives
1) Breakeven within first five months
2) 10-25% growth of sales every month
3) Costs of our products served can be maintained in 75% of the mark- up prices
4) To become “share of mind” & “share of heart”
External Environment: Demographic Trends
Existing
market
•30% of interviewee eat bakery almost every day (Produce Green Foundation and Hong Kong Vegetarian Society ,2001)
•Bakery market keep in growing
Trend
•From 2005 to 2011
• bakery products business
• employees
• gross output
• Located at Kowloon + Hong Kong
External Environment: Political & Legal Trends
Government intervention on the food concern
Centre for Food Safety impose guidelines on the
operation of food industry (Chow, 2009)
External Environment: Ecological Trends
Steady supplier
91% of the health store customer buy organic
food because they are environmentally friendly
Plastic bag is harmful to the Earth
External Environment: Economic Trends The World This Year (2010)
lose of confidence in the ability of a few countries to pay their debt
Increase in buying power
Environmental analysis: SWOT
Micro Environment: Competitor 1
Hung Fook Tong Holdings-Competitor in product category
Target customers: MTR passengers
Promotions: Advertisement and internet
Environment: Clean and hygienic
Strength: high market share,
CSR, healthy image
Weakness: plastic container and packages
Micro Environment: Competitor 2
Maxim’s Cakes-Competitor in customers category
Target customers: white collars Product & Service: Bakery, Cake, made to order
services Promotions: Advertisement and sales promotion Strength: long history ,reputation Weakness: seldom new products
Micro Environment: Competitor 3Roll – Geographical Competitor
Target customer: teenagers Product: Swiss roll Promotion: coupon, social media Environment: clean and fresh Strength: fresh image,
low cost promotion Weaknesses: limited labor force
Target Market Analysis: Segmentation
•Commercial area
•People who work in offices
Geographic segmentatio
n
•879,790 office ladies aged from 25 to 44 (Census and Statistical Department)
•higher disposable income
Demographic
Segmentation
•Social class segmentation and lifestyle(Jackie L.M. Tam, Susan H.C. Tai, 1998)
•5 segments
Psychological
Segmentation
Target Market Analysis : Target Market
“Traditionalists” “Strivers” “Achievers” “Adapters” “Middle-class hopefuls”
• 7% of the “Achievers” willing to latch new trends (Jackie L.M. Tam, Susan H.C. Tai ,1998)
• Rich with high disposable income (Thompson & Hickey, 2011)
Target Market Analysis: Positioning
The place the product occupies in consumer’s minds relative to competing products
Competitive advantage : organic and healthy
Factors being analyze : Market price, Healthy
4Ps - Price
Critical factor in operation (Myers, M. B., Cavusgil, S. T.,
& Diamantopoulos, A. 2002)
Packaged way-$18-$25
Target market is “ Achievers”
Higher than our competitor
Can achieve physical needs and the social status
Customers need to actively maintain and present their status through buying pattern, brand, tangible and intangible products. (Ehrenreich, 1989)
4Ps – Products
Atmosphere• Café liked environment- sofa and table• Bright light and green plants
Organic food• Bread , cake and health drinks• Quality control by the Hong Kong Organic
Certification Centre
Package• Breakfast -$20-25• Lunch--$30-35
4Ps- Place
Location of Bakery in HK
4Ps- Place
Location of Orgreenic
4Ps- Place
4Ps - Promotion
Communicate benefit to customer
Create demandGoeldner& Brent Ritchie,2009
• Leaflet :background of Ogreenic & product1.Advertisin
g
• Regular discount
• Coupon distribution 2.Sales
promotion
4Ps - Promotion
• Convincing retailer
• Create relationship with customers
3.Personal selling
• Official website
• Specific & updated
4.Public relations
and publicity
Milestones
Date Event Objective Person
Responsible
Budget
2/5-7/5/2012 Design the leaflet supervisor
9/5-11/5/2012 Find the printing company
for leaflet
PR
13/5-17/5/2012 Produce leaflet PR $5000
1/6- 17/6/2012 Plan official website Attract new
customer
supervisor
9/6-15/6-2012 Find website design
company
PR $6000
10/6/2012 Establishing of official
website
Get awareness
12/6-20/2012 Distribution of leaflet Attract new
customer
Assistance
manager
$2000
Before establishment
of company
Milestones1/7/2012 Opening of company
3/7-23/7/2012 Discount period Attract new
customer
24/7-25/7/2012 Produce leaflet Assistance
manager
$10000
26/7-5/8/2102 Distribution of leaflet Attract new
customer
PR $1500
7/8-9/8/2012 Product coupon PR 3500
10/8-20/8/2012 Distribution of coupon Attract new
customer
retailers
25/8-31/8/2012 Offer special discount for
old customers
Keeping the
existing customers
1/9-8/9/2012 Distribution of leaflet Attract new
customer
Establishment of
Orgreenic
Milestones
Christmas promotion- a highlighted event
15/10-
28/10/2012
Distribution of leaflet Attract new
customer
Assistance
manager
$500
11/11-
18/11/2012
Discount period Attract new
customer
11/12-
15/12/2012
Distribution of coupon Attract new
customer
retailers
17/12-
31/12/2012
Christmas discount Attract new and
existing
customers
Milestones
Promotion in next year
5/2-13/2/2012 Discount period Attract new
customer
6/3-10/3/2012 Distribution of leaflet Attract new
customer
Assistance
manager
$1000
12/3-
18/3/2012
Distribution of
coupon
Attract new
customer
retailers
15/4-
20/4/2012
Offer special discount
for old customers
Keeping
the existing
customers
21/4-
30/4/2012
Evaluation Make
adjustment
Supervisor
10/1-
15/10/2012
Distribution of leaflet Attract new
customer
Assistance
manager
$1000
Budgeting Controls-Forecast sales
Budgeting Controls- marketing expense budget
Marketing materials Cost Amount/ days needed
Total
Color Leaflet$2/leaflet 7500 $15000
Labor cost (Past-time employee distributing leaflet)
$133/ day 45 $6000
Website design company
$6000 / $6000
Coupon$0.1/coupon 3500 $3500
Budgeting Controls-Income statement
OrgreenicIncome Statement
July(2012) August September October November December January(2013) February March April May June July
Revenue
Net sales $62,000 $93,000 $105,000 $124,000 $150,000 $217,000 $155,000 $168,000 $217,000 $210,000 $232,500 $225,000 $232,500
Cost of goods sold $45,060 $46,030 $47,310 $48,450 $51,410 $52,131 $47,280 $46,289 $47,389 $47,694 $47,093 $47,500 $47,460
Gross Profit $16,940 $46,970 $57,690 $75,550 $98,590 $164,869 $107,720 $121,711 $169,611 $162,306 $185,407 $177,500 $185,040
Expenses
Variable cost
Water $2,100 $2,000 $1,900 $1,900 $2,100 $2,200 $2,100 $2,100 $2,100 $2,200 $2,000 $1,900 $1,800
Electricity $7,000 $8,000 $8,000 $8,000 $10,000 $10,000 $10,000 $11,000 $12,000 $12,000 $13,000 $10,000 $1,1000
Promotion cost(Shown in table 1)
$10,750 $4,750 $1,250 $1,750 $1,250 $1,250 $1,250 $1,250 $2,250 $1,250 $1,250 $1,250 $1,250
Miscellaneous expense $110 $130 $120 $150 $130 $180 $150 $170 $140 $140 $150 $160 $1,40
Total variable cost $19,960 $14,880 $11,270 $11,800 $13,480 $13,630 $13,500 $14,520 $16,490 $15,590 $16,400 $13,310 $14,190
Fixed Costs
Rent $65,000 $65,000 $65,000 $65,000 $65,000 $65,000 $65,000 $65,000 $65,000 $65,000 $65,000 $65,000 $65,000
Salary $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000
Telephone $110 $110 $110 $110 $110 $110 $110 $110 $110 $110 $110 $110 $1,900
Total fixed cost $85,110 $85,110 $85,110 $85,110 $85,110 $85,110 $85,110 $85,110 $85,110 $85,110 $85,110 $85,110 $85,110
Total Costs $105,070 $99,990 $96,380 $96,910 $98,590 $98,740 $98,610 $99,630 $101,600 $100,700 $101,510 $98,420 $99,300
Net Income ($88,130) ($53,020) ($38,690) ($21,360) $ 0 $66,129 $9,110 $22,081 $68,0111 $61,606 $83,897 $77,080 $85,740
• Break-even: 5 months• High-lighted promotion in
Dec, income increase rapidly
• Increase income steadily after Dec
Marketing Control
1. Statistical report provide precise & specific information
2. Re-assess the pricing & marketing methods
Conclusion
Promote healthy lifestyle to office ladies
identify the potential benefits of consuming organic products
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