course presentation

1. MGNT1020G
Group 2
Name Student ID
Li Hubeite, Betty (Leader) 1155046873
Zhang Qier, Vivian 1155046954
Nong Jinning, Jonathan 1155062046
Wang Yifan, Sailing 1155046874
Li Xiaoqiu, Lidy 1155062081
Zhang Changxin, Chancy 1155062013
Xu Haoyuan, David 1155062121

2. Content Presenter
Company Background Betty
PEST Analysis Vivian, Jonathan
SWOT Analysis Sailing
Industry Five Forces Lidy
Competitor Analysis Chancy, David
Top 3 Challenges&Recommendation Betty
Solution-Greenwood Series Jonathan
Solution-Running Fairwood Sailing
Solution-Online Promotion Vivian, David
Solution-CRM Chancy
Conclusion Betty
Agenda

3. Company Summary
• Industries: Hong Kong Fast food chain
• CEO: Dennis Lo Hoi Yeung
• Revenue: $2.0377 billion (2014)
• Gross Profit Margin: 5.28%
• Numbers of Employees: 4,600
• Main Competitors: Cafe de coral, Maxim’s
Enjoy Great Food, Live a Great Life
Company
Background
Situational
Analysis
Competitor
Analysis
Top 3
Challenges
Recommen-
dation
Solutions Conclusion
Betty

4. Company History
1972
Opened the first
restaurant in Tsuen
Wan, Hong Kong
1991
Made its initial public
offering in Hong Kong
Rebranded itself by new
logo and new store concept;
smoking free environment
2003
2010
Continuous expansion;
Opened the 100th
restaurant
2014
More than 140
outlets in Hong Kong
and Mainland China
Betty

5. PEST
• High Inflation
• Exchange Rate
• High Rental Cost
• Labor Shortage
• Internet
• Automation
• Minimum Wage Law
• CEPA
TechnologicalSocial
Political Economical
Eating outside
5-7times a
week
Percentage
Breakfast 26.5
Lunch 43.8
Dinner 5.9
Vivian
Jonathan
• High Rate in Dining Out
• Fast Paced Life in HK
• Green & Healthy Trend
Company
Background
Situational
Analysis
Competitor
Analysis
Top 3
Challenges
Recommen-
dation
Solutions Conclusion

6. Strength
ThreatOpportunity
Weakness
• Special Dishes
• Vigorous & Amiable Social Image
• Operating Efficiency
• Lack of Differentiation
• Ineffective Promotion
• Intensive Similar Competitors
• Decreasing Loyalty for Fast Food
• Mainland China Market
• Demand for Healthy & Quick Service
• No-cook Family
SWOT
Company
Background
Situational
Analysis
Competitor
Analysis
Top 3
Challenges
Recommen-
dation
Solutions Conclusion
Sailing

7. • Olive Oil for Cooking
• Without MSG Added
• Vegetarian Series
• Ah Wood Signature Dishes
• Pot in Korean style
Special Dishes
Popular Green & Healthy
Strength
Sailing

8. Vigorous &
Amiable Image
• $4 Meal Campaign, Give
Warmth Campaign, Breakfast
Give-Out Campaign
• Outstanding Award for Social
Inclusion
Brand Renewal
Social Image
Operational Efficiency
• Central Food Processing Plant
• SAP Enterprise Resources Planning
System
• Flexible Staff scheduling
• Global Sourcing Strategy
Maximize the Return
&
Minimize the Cost
Cost Leadership
Strength
Sailing

9. Lack of Differentiation
• Similar Brand Image, Concept, Dishes, Price, Service.
Weakness
Sailing

10. Ineffective Promotion
Official Site
Sailing
Weakness

11. Ineffective Promotion
Facebook
Sailing
Weakness

12. Mainland
China Market
• 10% increase in
Mainland China
Market in 2013
• Similar Dietary
Habit in Southern
China
• Increasing
Demand for
Healthy Food
• Fast-paced Life
No-cook
Family
Healthy &
Quick Service
• Care More about
Food Quality and
Safety
• More Accustomed
to Home-made
Dishes
Opportunity
Sailing

13. Intensive Similar
Competitors
Decreasing Loyalty of
Fast Food
• Scandal of utilizing recycling
cooking oil in HK food industry
Threat
Sailing

14. Supplier Bargaining Power
HighFive Forces Analysis
Land Agent
Labor
Raw Material
• Higher Rent
• Fewer Cheap Labor
• More Temporary Workers
• Higher Cost
• Low Differentiation
Company
Background
Situational
Analysis
Competitor
Analysis
Top 3
Challenges
Recommen-
dation
Solutions Conclusion
Lidy

15. Customer Bargaining Power
HighFive Forces AnalysisFive Forces Analysis
Plenty of
Similar Choices
for Consumers
Little Switching
Cost
Lidy

16. Competition
KeenFive Forces Analysis
Café de Coral
(The Biggest
Market Sharer)
Maxim’s
(Strong Brand
Image)
Small Cha Chaan
Tang
(Differentiation)
Lidy

17. Threat of New Entrants
MediumFive Forces Analysis
• High Capital Investment
• Large Economic Scale
(High Rental Cost & Large
Investment in Employees)
• Simple and Easily-
Copied Model
Lidy

18. Possible Substitute Products
Limited
Western Fast Food Formal Chinese Food DIY Meal
Five Forces Analysis
• Unhealthy • Expensive
• Slow
• Time-consuming
• Less feasible
Lidy

19. Main Competitors
(Key Players)
Other Competitors
Main Competitors
Chancy
Company
Background
Situational
Analysis
Competitor
Analysis
Top 3
Challenges
Recommen-
dation
Solutions Conclusion

20. Strength
Loyalty Program
More Branches
High Market Share
Lower Labor and Rental Cost
Weakness
Negative News
Strength
Brand Image (Festival Products)
Lower Price
Weakness
Fewer Branches
Less Variety of Dishes
Low Market Share
Food Safety ProblemsA Piece of Plastic Film in Food
Chancy

21. 28
22
24
$25
$30
$35
$40
$45
$50
$55
0
5
10
15
20
25
30
Fairwood Café de
Coral
Maxim's
Analysis of Menu: Price & Diversity
Source: Breakfast & Lunch & Dinner Menus of Café de Coral, Fairwood & Maxim’s 10/2014
1. Breakfast 2. Lunch 3. Supper
Chancy
23
18
16
$10
$15
$20
$25
$30
0
5
10
15
20
25
Fairwood Café de
Coral
Maxim's
23
31
19
$25
$30
$35
$40
$45
$50
$55
$60
$65
$70
0
5
10
15
20
25
30
35
Fairwood Café de
Coral
Maxim's
No. of items Middle 50% of price

22. Fairwood Café de coral Maxim
Factors Weight Rating Score Rating Score Rating Score
Service 0.10 3 0.30 3 0.30 2 0.20
Food Quality 0.20 2 0.40 3 0.60 2 0.40
Price
Competitiveness
0.20 0.60 2 0.40 4 0.80
Promotion 0.10 0.20 4 0.40 3 0.30
Diversity 0.15 3 0.45 4 0.60 2 0.30
Expansion/
Branches
0.15 3 0.45 4 0.60 1 0.15
Market share 0.10 3 0.30 4 0.40 3 0.30
TOTAL 1.00 2.70 2.45
Competitive Profile Matrix
1 = major weakness; 2 = minor weakness; 3 = minor strength; 4 = major strength
3.30
3
2
David

23. 109
154
52
Fair wood Café de coral Maxim's
Number of restaurants(HK)
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
03/2009 03/2010 03/2011 03/2012 03/2013
Café de coral Fairwood
②Source: CEIC South China research (2013)①Source: café de coral Fairwood&Maxim’s official websites(2014)
Comparison: Market Share(HK)
Market Share
David

24. Top 3
Challenges
Ineffective
CRM
Lack of Product
Innovation
Insufficient
Inventive Service
Lack of
Loyalty
Program
+
Little Online
Promotion
Few Strong
Signature
Dishes
+
Inadequate
Emphasis on
Green&Healthy
Trend
Company
Background
Situational
Analysis
Competitor
Analysis
Top 3
Challenges
Recommen-
dation
Solutions Conclusion
Betty
Traditional
Fast food
Service Mode
+
Not Meeting
the Need of
Customers,
e.g. Fast Pace

25. Company
Background
Situational
Analysis
Competitor
Analysis
Top 3
Challenges
Solutions Conclusion
Betty
An Outstanding Fairwood
Convenience of
Sales Channel
Quality of Food & Service
Customer
Experience
Support Differentiation
Recommen-
dation

26. Online
Promotion
Customer
Relationship
Management
Running
Fairwood
Health in
Fairwood
Outcompete
the Rivals and
Take the Lead
Company
Background
Situational
Analysis
Competitor
Analysis
Top 3
Challenges
Solutions Conclusion
Betty
Recommen-
dation

27. Health in Fairwood
• Health in Dessert
• Health in Seasons
Jonathan
Health in Dessert
• Meet Traditional
Chinese Taste
• Light & Healthy
Health in Seasons
• Suit Changing Climate
• Tasty & Fresh

28. Health in Fairwood
• Health in Soup
• Health in Grains
Jonathan
Health in Grains
• Roughage Rice
• Vegetable Rice
Health in Soup
• Nutritious Medicinal
Soup Beneficial for
Different Crowds

29. Target
Customer
Pick-up&
Delivery
Running Fairwood Handy Service within a “Click”
Sailing
White-collar Workers
in CBD, Students, and
Who else Calls for
Quick and Convenient
Service
Ordering
Channel

30. • Online ordering System on Homepage
• Hotline
• Mobile App “Running Fairwood”
• Strengthen
Customer Loyalty
• Provide Handy Service
Ordering
Channel
Pick-up&
Delivery
Running Fairwood Handy Service within a “Click”
Sailing
Target
Customer

31. Pick-up&
Delivery
Running Fairwood Handy Service within a “Click”
Sailing
Target
Customer
Ordering
Channel
Delivery
• Even Quicker Service
Minimizing Waste of
Time
Personal Pickup
• Shortens Waiting Time
• 24-Hours Personal
Pickup Service at
Airport and Railway
Station

32. SNS
Brand
Building
Official
Site
• Timely & Frequent Update
• Discount
• Timely & Diverse Ads on Homepage
• User Evaluation e.g. Feedback From
Customers
• Loyalty Program
• Newsgroups e.g. OpenRice
• E-Newsletters
Vivian
Online Promotion

33. Weekly
New Product
Achievement
Forthcoming Events
Vivian
• Timely & Frequent Update
• DiscountOnline Promotion

34. Vivian
• Newsgroups
• E-NewslettersOnline Promotion
The First,10th,100th,1000th to
Like, Forward or Comment
Special Offer Such as E-Coupons
and Direct Discount
Establish Good Reputation
Share Useful Information &
Discount via E-Newsletters

35. No Diverse Ads/Campaigns
No Sales Promotion
No Feedback System
No Interaction
David
• Official SiteOnline Promotion

36. New Campaigns
Take-out Service Available on Homepage
Online Ordering System (Running Fairwood)
Scan QR Code on the Homepage to
Get Special Discount or E-Coupon
Customers Who Give Valuable
Suggestions Can Join Online Lucky Draw
David
• Different Discounting Campaigns
• Take-out Service on HomepageOnline Promotion

37. Seasonal Dishes&Green Food
eg. Tsui Wah Restaurant
Fresh & Timely Content
eg. Café de coral’s Homepage
Promote Healthy Food on
Official Site
Diverse Advertisements
Motivate Customers to Visit RegularlyHighlight Green&Healthy Concept
David
• Fresh & Timely Content
• Diverse AdvertisementsOnline Promotion

38. Feedback FormMessage Board
David
• Get Feedback & Comments
from CustomersOnline Promotion
Improve
Customer
Experience
According to
Their Feedback

39. Café de Coral
Fairwood：
Campaign
Club
Member
System
Club100
樂賞錢
None
Club
Member
System
Chancy
Customer Relationship Management

40. Club
Member
System
Special
Service
New Fairwood：
• Club Member System
• Personal Service
Chancy
CRM
Keep Old
Customers
Develop New
Customers
Enhance Brand
Image

41. Different Levels of Membership Cards Can Get Different Discounts
Level Up!
Chancy
• Club Member SystemCRM

42. More Personal-Service to Meet Customers’ Special Needs
“Fair-Corner”
for Launching
Campaigns:
Chancy
• Personal-Service
• Book Online
• Group Meals
• Theme Private Room
• Festival Food
• More Profit from
Dinner
CRM

43. Logic Flow
Company
Background
Situational
Analysis
Competitor
Analysis
Top 3
Challenges
Recommen-
dation
Solutions Conclusion
Betty
Health in Fairwood Running Fairwood
Online Promotion
CRM
Ineffective CRMInsufficient Inventive ServiceLack of Product Innovation
Enjoy Great Food
Live a Great Life

44. Company
Background
Situational
Analysis
Competitor
Analysis
Top 3
Challenges
Recommen-
dation
Solutions Conclusion
Betty
Company
Background
Health in Fairwood
Top 3 Challenges
PEST Analysis
SWOT Analysis
Competitor Analysis
Industry Five Forces
Running Fairwood
Online Promotion
CRM
Recommendation
Ineffective CRM
Insufficient Inventive Service
Lack of Product Innovation
Differentiation
Conclusion