Marketing Plan: Royal Bakery Café

HTM2121Tourism and Hospitality

Marketing

Chan Koon Kiu, Kennis 11579948DCheung Wan Yin, Winnie 11557030DKong Ka Wai, Kerry 11514169DWong Hoi Ning, Stephain 11524532D

Background

Royal Bakery Cafe

Operation of the bakery:

1) self-served in take-away bakery and bottled drinks2) full-service in a café style.

Target Customers -Mainland travelers-Business person -visitors of the shopping mall

Opening hour: 8a.m. to 10p.m. Location : Harbor CitySize: 900 sq.ft

Objectives1. To increased 40% sales volume when compared to the first month within a year2. To gain customer’s share of mind by 25% within 12 months3. To acquire customer’s share of heart by 10% within 12 months4. To obtain 30% of customer retention within 12 months especially for the Café area.

Positioning Strategy

Positioning Perceptual Mapping

Organic ingredients ->create a healthy image ->price relatively expensive ->build a deluxe image

Take way service and dine in service

lies in the middle of the perceptual map

Products - Core products

Elegant interior design

Luxury dining experience

Sophisticated atmosphere

Relaxing and romantic environment

Facilitating products

Signature product

Juice (4) Coffee (8)and Tea (4) Others (Soft drinks & Water)

Squeezed Orange ($25)Squeezed Apple ($25)Squeezed Cranberry ($30)Squeezed Grapefruit ($30)

Americano ($38)Caffé Latte ($38)Cappuccino ($40)Expresso ($45)Mocha ($40)Eagle Creek Mocha ($50)Caramel ($35)Lemon Tea ($25)*Organic Earl Grey ($35)*Organic Spring Jasmine ($30) *Organic Peppermint ($30)

Coca Cola ($25)Coke Zero ($25)Sprite ($25)Chocolate ($35)Peppermint Chocolate ($35)Evian ($18)Perrier (Unflavored) ($22)Perrier (Lemon) ($22)Milk ($18)

Fresh-squeezed juices

“Just baked products”

Luxury and relaxing dining

experience

Supporting products

Interior design(white and silver

color)

Augmented products

Classic and soft music

Semi-opened kitchen

with the aroma

Place

2/F, Harbour City, Tsim Sha Tsui

Popular mall for local and tourists

Official website Various Payment methods

Price

Internal

Factors

• Marketing objective• high prices to cover higher quality and guest

service levels• the price is above the average in the market but

little bit cheaper than hotel cake shop

External

Factors

• Competition• The price range set by:

Starbuck food from $16-$38 and drinks from $16- $42

agnès b. CAFÉ L.P.G food from $32 to $35 and coffee from $28- $45

Pricing Strategy

Cost-based PricingThe high-end or luxury brand items typically have a high

markup.

(Alexis W. 2003-2012)

Mark up: 65% Mark up: 75% Mark up: 50%

to cover the high rental cost and the cost of high quality product ingredient

Selling price: $15 to $35

Selling price: $40 to $70

Selling price: $18 to $50

Psychological pricing factor

Selling price can give a signal to customers that our product is high quality especially they do not familiar commencement of business

Costs/(1-desired profit %) = Selling PriceStewart John. Quick Printing (Jun 2007)

Promotion

Sales promotion strategy

Social network

Magazine

Catalogues

> Cooperate with Harbor City> Offer Credit Card Discount> Groupon> Openrice

> Facebook, Twitter>Celebrities ’Blog

Marketing Expense Forecast

Items/Month Jan Feb March April May June July August Sep Oct Nov DecMagazine Advertising   $2,500   $2,500 Catalogues $4,430 Groupon   $4,000  Openrice Advertising $4,000  Openrice Discount Coupon $3,500  

Items/Month Jan Feb Mar April May June July August Sep Oct Nov Dec

Food 185000 198875 208125 217375 231250 240500 265250 275300 249750 259000 268250 281500

Drinks 44130 47439.75 49646.25 51852.75 55162.5 71711.25 64008.5 65201 59575.5 61782 63988.5 65310

Service Charges 22913 24631.48 25777.13 26922.78 28641.25 31221.13 32925.85 34050.1 30932.55 32078.2 33223.85 34681

Total Sales 252043 270946.2 283548.4 296150.5 315053.8 343432.4 362184.4 374551.1 340258.1 352860.2 365462.4 381491

Sales Forecast (2013-2014)

Milestones

ControlPerspective Possible way Desired outcome

Customers’ satisfaction

Distribute questionnaire in the harbor city and Royal Bakery café’s members

Share of mind 25% and share of heart10%

To examine whether our product and service satisfy customers or not

Customers’ retention

Membership database Increase the customers’ retention

Promotional control

Change advertising frequently To refresh customers’ memory

Pricing control

Adjust the price by referencing competitor and market environment

Maintain profitability

Budgetary Control

review performance by referring to the budget

Keep accurate income and expense record

To make consistency between prepared and actual income and expenditure

Contingency plan

Problem RemedyShortage of product -Not relying on only one supplier

-Store some product for back up

Labor absent -Part time staff

Technology lags -Experienced engineer stand by-Machine regular maintenance

Wong, J. (2010). The Opportunities for Hong Kong Organic Market Development. IFOAM2005 Submission for Platform Presentation, 1. The Global Market for Organic Food & Drink (2003). . Retrieved March 5, 2012 from http://www.organicmonitor.com/700140.htm Food: Global Industry Guide, . Retrieved March 5, 2012 from http://www.researchandmarkets.com/search.asp?q=food%20global%20indusHong Kong Organic Resource Certification Company Limit, . Retrieved March 5, 2012 from http://hkorc-cert.org/english/eapply.htmhttp://www.news.gov.hk/tc/categories/finance/html/2011/12/20111221_174049.lin.shtmlhttp://www.tradingeconomics.com/hong-kong/gdp-growthhttp://www.lohasclub.com.hk/

Reference

Hong Kong Consumers Undergoing Major Lifestyle and Attitude Changes Shaped by Rapid Development of Technology (2007). Retrieved March 18, 2012 from http://www.hk.nielsen.com/news/20070628.shtml Understanding Global Consumers’ Attitudes, Behaviors and Lifestyles to Profit from Current and Future Opportunities in the Health and Wellness Space (2009). Retrieved March 18, 2012 from http://datamonitor.com A Statistical Review of Hong Kong Tourism 2010 (2011). Retrieved March 18, 2012 from http://partnernet.hktourismboard.com/pnweb/jsp/doc/listDoc.jsp?doc_id=138859&cat_id=3632&logs=yes&type=FREE Gastro Primo (2009). Retrieved February 18, 2012 from http://gastroprimo.com/services.php Copeland, C. (2007) Organic Food History and Current Trends. Retrieved March 21, 2012 from http://ezinearticles.com/?Organic-Food-History-and-Current-Trends&id=989817 Hector, V. (2003). Organic Food Encyclopedia of Food and Culture. Retrieved March 21, 2012 from http://www.encyclopedia.com/topic/organic_food.aspx http://www.hadilworkshop.com/print05.html http://search.proquest.com.ezproxy.lb.polyu.edu.hk/docview/222775445?accountid=1621(PRICE)