1. DESSERT ICON
Group D
Chau Yuen Ching, Pinky 11324653D
Chu Sing Lung, Michael 11248792D
Wong Wai Yin, Roy 11090628D
Yiu Ka Yee, Artemis 11083736D

2. 1. Business Concept
2. External Environment analysis:
Opportunity and Threats
3. Target Market
4. Positioning and Marketing Mix (4P)
5. Implementation milestone
6. Marketing Budget
7. Marketing Controls

3. Mission
Hong Kong Style Dessert
To provide a place for relaxing and gathering
To promote healthy eating habit

4. Resources
Employees Owners
- Provide quality customer - Is also managers
service - Manage a team
- Enhance the morale of staff
- Finish food production by - Minimize turnover rate
cooperating with their - Control budget
colleagues - Design menu
- Launch promotion
- Trainings will be provided

5. Objectives
 Break even after 6-month operation
 Gain 5% return on investment after 1 year

6. Micro-environment
Opportunity Threat
Supplier
Marketing
Intermediaries
Publics
Customers
Existing
Competitors

7. Macro-environment
Opportunity Threat
Demographic
Political
Economic
Cultural
Technological

8.  Students
 Hong Kong Polytechnic University
• 25000 students
 Hong Kong Community College
• 7000 students
Both HKDSE & A-Level Students

9.  Tourists
 Attractions in Tsim Sha Tsui (TST)
 Avenue of Stars
 The Clock Tower
 Hotels in TST East
 Kowloon Shangri-La
 The Royal Garden
 Regal Kowloon Hotel Hong Kong
 InterContinental Grand Stanford Hong Kong
 Hotel Nikko Hong Kong
 Hotel ICON

10.  The large of variety of desserts
 Relaxing and comfortable environment
 Acceptable food taste and affordable price

11.  Divided into seven categories
 Chinese Style Dessert
 Tofu Pudding
 Black Glutinous
 Small Ball-Crushed
 Chinese Cakes
 Sago
 Grass Jelly
Over Fifty Kinds of Desserts

12.  Target profit pricing
 aims to gain 5% return on capital after 1-year operation
Break-even analysis: Total Revenue = total Costs
Average selling price = $32
When selling price > $32
 return on investment

13. Shop 44B, G/F, Harbour Crystal
Centre, 100 Granville Road, Tsim Sha Tsui
 Was a dessert house before
 near The Hong Kong
Polytechnic University
 many restaurants nearby
 near Hung Hom MTR station

14.  Offer 5% discount off to the students of Poly U
 Distribute fly sheets on the bridge outside the main
entrance of Poly U
 Ask for comments of customers and encourage them
to give ratings on the Internet
 Doing media interviews

15. Milestone Start End Budget Who is How to
responsible?
Time Time evaluate?
1 EatSmart@ 1st April 31st March --- Manager Assessment
restaurant.hk and chef by the
Campaign Department
of Health
2 Quality 1st April 31st March HKD Manager Assessment
Tourism 5000 by the
Services restaurant
itself and
QTSA
3 Festivals Promotion Depends Depends HKD Chef Sales volume
 Chinese New year 1000 and
 Valentine’s Day customers’
 Mid-Autumn Festival feedback
 Halloween
 Christmas

16.  COST ANALYSIS
INITIAL COSTS FOR BUSINESS
1%
1% 3%($5170)
($2450) Decoration
($1000)
39% Equipment and
($70000) 56% Fixture
($100,000) Insurance
Business License
Restaurant License

17.  COST ANALYSIS
FIXED COST ANALYSIS
4% 3% Salaries
1%
($5000) ($3000)
($420) 0%($300)
4% Rent
($5000)
Water rate
52%
36% ($60000)
($41975) Electricity
Gas Bill
Depreciation expense
Sundry expense

18.  COST ANALYSIS
VARIABLE COST ANALYSIS
Items Cost (HKD)
Raw materials 40,000
Total 40,000

19.  COST ANALYSIS
How much is needed to cover the fixed costs,
prepayment and variable costs for the first month?
HK$ 500,000
Because of the budget constrain,
the highest food cost is set to be HK$ 60,000
Cost estimation is based on:
- Websites of service providers
- Personal experience of the owners of dessert houses in
Hung Hom

20.  SALES FORECAST
HKD SALES REVENUE
250000
200000
150000
100000
50000
0
4 5 6 7 8 9 10 11 12 1 2 3
Month

21.  SALES FORECAST
Sales volume of Dessert Icon would be affected by:
 New opening of the business
 Seasonal and festival promotion
 The amount of target customers

22.  MARKETING EXPENSE FORECAST
MARKETING EXPENSES MAKETING EXPENSES
14% 2% Print Ad
4
($2400) ($360)
Flyers 3
Internet 2
% in Sales
84% 1
($15000)
0
1 2 3 4 5 6 7 8 9 10 11 12 13 Month
The marketing expenses must be below 5% of its sales revenue
in each month, in order to minimize the cost because of a
tight budget in the first year.

23.  BREAK-EVEN ANALYSIS
Average price of dessert served: HK$ 32
Average variable cost of dessert served: (HK$ 40000X12)/70260 = HK$ 7
Total fixed cost: HK$1406420
Monthly Break-even point = 1406420/(32-7)= 56257
Daily Break-even point = 56257 / 365 = 155
Sell at least 155 desserts per day

24.  PAYBACK PERIOD ANALYISIS
Total fixed cost : HK$ 178,620
Month 4 5 6 7 8 9 10 11 12 1 2 3 Total
Profit/
11250 14075 16575 32825 51575 45325 36575 29075 43325 22825 19575 27075 350075
(Loss)
Payback period of Dessert Icon: 6.20 months
Capital return in first year : 8.2%

25. Marketing Controls Activity Frequency
Profit Control Sales Analysis Monthly
Efficiency Control Evaluation with Employees Weekly
Service Quality Assessment
Strategic Control Contingency Planning When Necessary

26.  Marketing strategies
 Availability of target customers in the region
A promising business
It is hoped that investments could be
provided to carry out the business