The document outlines a group project for an F&B operation called GreenLife in Tsim Sha Tsui East, including an executive summary, external environmental analysis, objectives, target market, and marketing mix strategies and programs. It provides details on products, pricing, place, and promotion strategies, and analyzes competitors like Starbucks and McCafe. Break-even pricing is proposed based on estimated fixed and variable costs.
1. HTM 2121
TOURISM AND HOSPITALITY MARKETING
GROUP PROEJCT
Project Title :F & B Operation in Tsui Sha Tsui East
Names: LAM KA YEE, Iris, 11225906D
LEE CHO YIN, Kristy, 11025186D
LEE KA YU, Jason, 11370913D
KWOK WING TUNG, Kylie, 11205003D
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3. Name and Logo
GreenLife:
Environment and life cannot be separated
Logo:
Orange - cooperate with Fair Trade
Brown (words) - coffee
Green (leaf) - organic products
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4. Mission
High quality of Food & beverages &
customer services
Promote organic and fair trade‘s concepts
and products
Break-even
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6. Demographic trends
Opportunities:
•Healthy eating trend
Organic product attract customers
•Price sensitive customers
Generally not brand loyal when a discount is offered
Threats:
•Growing trend of Cafe culture
Customers knowledge about coffee products↑
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High quality products
7. Economic Trend
The local economy is started to recover since 2010
Opportunities
A chance for GreenLife to survive
The more the prosperity of economy, the more revenue expected
to earn
Threats
Problem of inflation may arise
Affect the food cost
May affect spending pattern of people
8. Ecological
Opportunities
Eating habit changed organic products
Support sustainable development
Threats
Organic products are high in costs
Trend may vary if new idea pop up
9. TECHNOLOGICAL TRENDS
• Opportunities
Marketing planning and mixes more focused on Internet
Nowadays, global internet users >20 billion
Global use of mobile devices to access internet ↑
accounted for total internet users : 4.3% in January 2011
8.5% in January 2012
Customers : obtain products and services information
online, shopping online
↑ Distribution channel
↑ Promotion channel 9
10. Suppliers and distributors :
(1) provide online service
(e.g. homepage which contains product and services’ categories with
order and delivery services)
(2) ↑ focused on Internet promotion
(e.g. Facebook page and Apps )
F&B operation
computerized system :
( e.g. POS system and Management system run the operation and keep
records such as inventory.)
↑systematic , ↑effective ,↑efficiency 10
11. POLITICAL-LEGAL
According to the Public Health and Municipal Services
Ordinance (Cap. 132) and other relevant legislation
F&B operation : apply corresponding licenses
match numbers of requirements
Two licenses for our operation
1)Restaurant licence (from FEHD)
sell any kind of food for consumption on the premises
2) Liquor licence (from Liquor Licensing Board)
Sell any kinds of Liquor on the premises
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12. POLITICAL-LEGAL
Requirements
fire-fightingequipment (from HK Fire Services Department)
ensure the health and hygiene conditions (form FEHD)
ensure buildings safety (from Buildings Department)
Certified no unauthorized building
+ compliance with Government lease conditions
(from The Land Registry)
Statutory Plan Restrictions (from Town Planning Board)
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13. THREATS
Costs ↑
Application fee and annual fee of the licenses :
Our store : 100-150 sq.m $3140 (annual fee )
maintenance costs match the reqirements
Time costs :
obtain the licences from FEHD
provisional food business licence
maintain these standards for 6 months full licence
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14. Social cultural trends
• Opportunities
E-commerce
Use of smartphone &WIFI-service↑
(According to PayPal, more than 8,000 mobile payments were processed on average
per day in Hong Kong in 2011 & 106 million active PayPal users in 190 markets
worldwide buy products from thousands of Hong Kong-based PayPal merchants)
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15. Social cultural trends
• Opportunities
Coffee and tea culture
strong in Asia
(According to the Synovate survey, among the 501 respondents, about one third of residents now
purchase ready-to-drink coffee from outside)
(coffee is imported from 50 different countries world while in China)
Tea culture customs of China
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16. Social cultural factor
Opportunities
Healthy eating
Sales ↑ in the past few decades
The choice expands to over 2000 items
(Park N’ Shop and Wellcome & CitySuper, and Jusco, have set up separate organic food sections
or allocated retail space to organic products)
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18. COMPETITORS ANALYSIS
Current Competitors :Coffee shops and café in
TST East
46 coffee shops : 13 large chain stores
33 non-chain stores
13 large chain stores : 9 Starbucks
3 Pacific Coffee
1 Mc Cafe
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19. MAJOR COMPETITOR
Starbucks
Products :
beverages (various kinds with hot and iced)
Fresh food & Snacks (e.g. breakfast, lunch, tea, salads
and cakes)
Services:
Computer with web cam
Free Wi-fi services
Sofas and chairs with magazines and newspapers 19
20. SERVICE
Relaxing environment with soft music
Official website and facebook page interact with
customers
(obtain the latest information ,history of starbucks )
Online registration system member receive special
promotion
Delivery services (a minimum of HK$300 per order
,except 12 noon -2pm) 20
21. COMPETITOR’S PRICE RANGE
Price range ( different categories)
Breakfast $8-22
Lunch $19-38
Snacks and Salad $8-38
Beverages (3 different sizes in order)
Tall $22
Grande $34
Venti $42
Overall price range :$8-42
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22. A STARBUCKS’ STORE IN TST EAST
Location
Located at : Avenue of Stars ,Tsim Sha Tsui Promenade
✔facing victoria habour
✔having trees and flowers nearby
✔footpaths in front of the shop no cars
✔sunlight and sea breeze
Environment : ✔ relaxing , peaceful and comfortable
✔ fresh air
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23. STARBUCK’S PROMOTION
Promotion
✔ Press releases
✔ Internet : Official website ,Facebook,Email
Close to the market trends and nowadays’ technology
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24. SWOT ANALYSIS
Starbucks
Strengthens & Opportunities
World’s brand name company
Highest percentage of share of mind
High percentage of market share
Positive Image : ✔ social responsibilities
Enormous amount of capital ↑products and services’
quality
High bargaining powers among suppliers and customers
↑ selling price ↑revenue
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25. SWOT ANALYSIS
Weaknesses & threats
(1) Certain extent of over-expansion
(9 stores in Tst East may weaken its own turnovers)
(2)Only focus on western food (lack of variety)
People don’t like western food culture ✕ consume
E.g. many elder in HK will go tea restaurant rather
than Starbucks
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26. MAJOR COMPETITOR
MC Cafe
Products
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Beverage (Espresso, hot and iced drinks)
Frappes and extras
Services
Free WiFi service
Sofa and chairs
Official website and facebook page interact with customers
27. MAJOR COMPETITOR
MC Cafe
Price ranges
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The overall price ranges are between $8 and $26.
Location
Most of the stores are located at the ground floor convenient
Promotion
Coupons or punch cards
Slogans
Advertisements
Apps
Newspaper
28. SWOT ANALYSIS
MC Cafe
Strengths and opportunities:
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A mid-range quality substitute
McDonald’s reputation
A large amount of capital
30. Supplier
Opportunities
Cooperation with Fair Trade
provide organic food
(According to a recent statistics accounts for 1 to 2% of total food sales worldwide)
Abundant suppliers of certain foods
↑ chance to find out the lowest possible food cost
(420manufacturers supplying sauce and seasoning)
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31. Supplier
Threats
Some food fewer food supplies
Meat dominated by big supplier
(Spaghetti only22and15 manufacturers in Hong Kong)
bargaining power ↓ relatively
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32. Marketing intermediaries
Opportunities:
Newspaper and magazines
e.g. Daily Economics, Times and Asia Finance
Direct mail house
Mail an advertisement to business firms in Tsim Sha
Tsui East (by café’s staff)
(match with the target group of customers)
Threats:
•Increase costs 32
33. Publics
Opportunities
Support from citizen-action publics
Environmental groups may be attracted by our fair trade
products
(For example, the Environmental Working Group which recommending consumers should look for
organically produced products so as to lead a healthy life n be attracted to our business)
Support from media groups
Environmental groups may be attracted by our concept of
healthy eating habits 33
35. Target customers
Business people
B Tsim Sha Tsui is one of the Central Business District
Younger age groups
YMajority of buyers in Hong Kong of Western foods tend to be females, who do
more food shopping than males, with younger age groups
Middle class income group
MDemand for high-value food and beverage is mainly among the 2.3 million
middle class consumers
Behavior: Business customers are willing to pay in purchasing
B price is not the main factor to decide purchasing
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41. PRODUCTS- FOOD
(1)Spaghetti and rice (main dishes)
(Salmon, meat sauce, bacon & mushroom and
vegetable)
(2)Snacks
chicken wings
Sandwiches (egg, cheese, tuna, tomato for mix and match)
fruit salad (fresh organic vegetables and fruit)
(3)Cakes (blueberry cheesecake, chocolate cheese cake
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and cup cakes)
42. EXPLANATION OF FOOD
PRODUCTS
✔From light main dishes
Not only for tea time
✔breakfast , lunch ,dinner (normal meal)
✔healthy and fresh ( use organic products)
good refreshment for business people
Tailor-made for business people
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43. PRODUCTS- BEVERAGES
(1)Coffee
Cappuccino, Mocha, Latte and Espresso
(most of the coffee beans organic and fair trade products)
(2)Alcoholic drinks
Red wine
(e.g. Chateau des Leotins 2008 )
White wine
(e.g. Trebbiano d'Abruzzo Badia Frasca,D.O.C. 1998 )
Champagne
(e.g. (A.O.C.) Brut, Pascal Fleury )
(3) Non-alcoholic drinks
Milk, chocolate, milk tea and lemon tea in terms of hot and iced.
Special drinks :
Tea (both British tea and Chinese tea) 43
Fresh fruit juice (apple ,orange & pineapple)
Fruit punch
44. EXPLANATION OF
BEVERAGES PRODUCTS
✔ variety of beverages different people’s taste
Refresh help to think & brainstorm ideas ↑
Unique beverages among coffee shop and café
★ Alcoholic drinks
Various kinds (red, white wine and champagne)
Red wine for meetings
champagne for celebrations
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45. SERVICES
Customer service:
provision of service to customer before, during and after
a purchase
(1) First stage (before purchasing)
Customer can make reservation ( through reservation
system online or by phone call)
Research information (through company’s homepage
,Facebook page ,email , phone call & Fax)
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46. SERVICE
(2) Consumption phase
Core product : Food and beverages
Facilitating
products :
customer services- taking order of food , handling guests’
requires
Augmented products : (atmosphere) (target customer’s needs)
quiet and relaxing environment
Tables, computers, projector, stationery, free wi-fi
VIP room (private area)
✔ conference table designated for meetings
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47. SERVICE
(3) Detachment phase
ask for feedback satisfied or not
✔ service recovery chance create satisfaction to
unsatisfied guests
create a guests profile (visited ≧5 times)
Records find out preference and spending patterns
Keep paid bottle wine for next visit
Quality of service ↑
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50. Reasons for choosing break-even pricing
1. Predicting the change of sales when price changes
3. Preventing losses
5. When the business starts generating a positive return
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55. Pricing strategy-Market skimming
Reasons for choosing:
1. Target customers are price insensitive towards our products
(According to Journal of Business Research, business customers are willing to spend large amounts
of money in their purchase of goods and services, while keeping loyal business customers can
give greater revenue for a supplier or a service provider)
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56. Pricing strategy-Market skimming
Reasons for choosing:
2. a high quality image of GreenLife can be created
by charging a higher initial price
first cafe selling organic products in TST Easr
high chancegrabbing the early adopters
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58. Place
Shop 44B, G/F, Harbour Crystal Center, 100 Granville
Road, Tsim Sha Tsui East in Kowloon
Near to the Hung Hom and Tsim Sha Tsui MTR Station
Ground floor u
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59. Distribution channel : Internet
Create website and facebook
Upload Coupon
76.4% of all households in Hong Kong have PC at home
and able to access the Internet (according to Thematic Household Survey Report -
Report No. 48)
Facebook is the most influential social networking site
in Hong Kong
Hong Kong users have has grown to 3,700,320 users
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61. Promotion
Promotion policy and advertising
• Promotion cards on tables
• Large poster on the window of café
Public relations and sales promotion
• Products tasting event
• Membership scheme
• Different festivals promotions
• Issue online coupon
• Design an app
• Giving sample
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62. Products tasting event
Knowing which products can be main or are most
popular products
Held periodically
3 to 5 new products or improved products to be tested
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63. A membership scheme
Establish good relationship with customers
E gain support and loyalty
Invite them to join events
I giving them discount and sample, and using special equipment in
café without extra charge
A-one-year membership
spending $400 or above at once or spending $800 within 2 months
Permanent member
meet other standards to get the membership card
i.e. purchase the coupons or to spend more
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65. Issuing online coupon
• Cooperate with online restaurant guide websites
Open rice Facebook
• Rate GreenLife • always catch up with
Customers GreenLife
• Download the coupons
of GreenLife issued
• Easy to know the • Promote GreenLife
GreenLife comments of GreenLife
• Improve our products
and services
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66. Design an app
Trend of using smart phones
Design app for download
make reservations
book the facilities (Projector)
download the code of coupon and use it in GreenLife,
members can have a special chat room or corner
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67. Giving sample
Let others know GreenLife will be launched
soon
How good our products are or our products
do match with their taste
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69. Marketing budget- projected sales
The time period of the sales projection is one year and the figures are
presented in a monthly basis.
We need to have three hundred and thirty-nine thousand dollars in order to
open a cafe in our chosen destination
After half year of operation, we can cover our cost.
Months Expected revenue Expected cost
January 309,210 339,230
February 315,394 342,622
March 321,702 346,048
April 328,136 346,013
May 341,391 342,553
June 348,218 339,128
July 351,700 335,737
August 355,217 332,380
September 358,769 329,057
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October 362,357 325,767
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November 365,980 322,510
December 373,300 328,960
70. Marketing budget- marketing expense
Including fixed costs, variable costs which include the promotional expense and
food costs
Fixed costsi $96,093 per month, Variable costsn $7,225 per month which
includes $9,000/12 = $900 average monthly promotional fees. Here is the list
about the details of our promotional fees.
All food costs are $235,887 in the first month. As we have eight types of
products and thus the food costs for each type product is $982 every day.
Name of promotional programs Date Budget
Pre-promotion Mid May – June $2500
Opening ceremony 1st June $3000
Member recruiting - $200
Product tasting event Mid Nov. $800
Printing cost - $500
Decoration fee Christmas, New Year and $2000 70
Valentine’s date
Total - $9000
72. Marketing control
Program Person Date Budget Explanation Budget
name responsible
1.Sales Accountant Monthly N/A • Find out whether Expected revenue:
evaluation and the actual sales=the
Jan-June: ↑2% monthly
Managers expected sales
target Jul-Nov: ↑1% per month
Dec: ↑2%.
• Adjusting the
strategies to ↑the Expected cost:
sales revenue
Jan-Mar controlling cost:
↑ 1% Apr-Nov t cutting
cost by1%
Dec controlling cost: ↑2%
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73. Marketing control
Program Person Date Budget Explanation Budget
name responsible
2.Progress All Quarterl N/A To evaluate how the Expected Revenue:
check y business goes meet
1) First quarter : evaluate whether the
the objectives
revenue and cost of these 3
i.e. break even and
months=monthly target.
customer retention
the price-adjustment 2) Second quarter: three months
strategies
revenuen
3) Third quarter: three months,
revenueo 4%, cost: -2%
Fourth quarter: three months
revenueq 3%, costt 6%
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74. Marketing control
Program Person Date Budget Explanation Budget
name responsible
3.Annual All 31st N/A To evaluate how the Expected revenue: $4,131,374
evaluation May business goes
Expected Cost: $4,030,005
meet the
objectives Earn $101,369 at the
end of a year
i.e. break even and
customer retention
the price-
adjustment strategies
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