The Hong Kong Polytechnic University Higher Diploma in Hotel Management HTM 2121 Tourism and Hospitality Marketing SEM 009 Group E Bakery

1. BAKERY SHOP

2. External
Environment
Analysis

3. External Environment Analysis
• Demographic
• Economic
• Political-legal
• Social-Cultural
• Ecological
• Technological

4. Demographic
Size of Selected Market
• target = Secondary School Students
• 449737 secondary students in HK (Education Bureau)
Income of Customer
• Monthly income of secondary students = $1120 on
average
(Visa Research, 2010)
• 90% of secondary students’ income = pocket money
from their families
• 66% students get > $200 per month
(Federation of New Territories Youth, 2009)

5. Demographic
Income of Target Customer
• Kowloon City district
 second highest density of millionaire with 16.2%
 married millionaires spend $14200 on average
per month for taking care their children
(Number of millionaire in Hong Kong, Citybank)
 We expect students in this area have high
purchasing power as their parents are willing to
spend money on them

6. Demographic

7. Political-legal
1. SME Funding Schemes
 encourage small and medium enterprises (SMEs) in
2008
4 types of fundings in SMEs
Special Loan Guarantee Scheme
SME Guarantee Loan Scheme
SME Development Fund
SME Export Marketing Fund
2. Environmental Guide for Smart Business
 Environmental Guide for Smart Business in 2011
 Apply onto daily business operation
 Tax Deduction on Environmental Facilities if follow
the Environmental Guide

8. Political-legal

9. Competitor
Analysis

10. Competitor Analysis
• 5 current competitors :
Maxim’s Cake Shop
Orchid Padara Bakery
Arome Bakery
Yamazaki Baking
Taste’s Bakery
• Major one : Maxim’s & Orchid Padaria

11. Maxim’s Cake Shop

12. (1) Maxim’s Cake Shop
• chain store ( Over 160 chain outlets)
• served over 570,000 customers every day
• Products : premade bread ( EG Whole Wheat
Walnut Bread, cakes and tartlets )
• Place : Maxim’s Cake shop in Kowloon Tong MTR
station
• Price : $5 - $15
• Promotion : Kelly Chan (spokesperson >6 years)
• In 2012, Maxim’s use “Angry Bird” as theme to
design cakes

13. Competitive Advantages and
Sustainability of Maxim’s Cake Shop
• Maxim’s =
 one of the most popular brand in the hearts of
mainlanders (HKTDC Report, 2009)
 one of the best Hong Kong Brand (Ming Po Hong Kong
Brand, 2011)
 obtained “The Best Service Award” in The 8th
International Exhibition of Food & Drink, Restaurant &
Foodservice Equipment, and Supplies& Services
The history of Maxim’s has implanted in Hong Kongers
 will be sustain in the near future

14. Orchid Padaria

15. (2) Orchid Padaria
• 13 branch in HK
• Products : Chinese style buns
• Price : $4 - $15
• Place : Near the Kowloon Tong MTR station
• Promotion : website & leaflets
 lower portion in the market share than
Maxim’s cake shop

16. Competitive Advantages and
Sustainability of Orchid Padaria
• Orchid Padaria =
Good location  attract ↑ customers
( ∵ MTR station = high turnover rate of customers )
Lower price than Maxim’s  attract low-
income group customers
Traditional buns = the flavour is suitable for
Hong Kong people

17. OASIS – The greenest bakery

18. Mission
Small-scale bakery in green style
selling breakfast and lunch
being environmentally friendly
NOT just focusing on profit-gaining, but
also fulfilling social responsibility

19. OASIS’ Objective
Breakeven within 1 year as a
newcomer in bakery market
3% to 5% profits & have branches stores
<5 years

20. Target Market
Secondary school students in Kowloon
Tong aged from 13 to 19
locate near the MTR Station
 Our bakery location provides a convenience for them
with low price, delicious and healthy bread

21. OASIS’ Marketing Mix Strategies
• 4Ps
Products
Price
Place
Promotion

22. Product

23. Product - Bread
Medium-priced breads with high nutrient
value and green ingredients
free of preservatives and colouring
 Providing our target customers fresh and
healthy products, breads prepared every day

24. Breads
Basic Vitamin International
Pineapple Bun Raspberry with Pandan Bread
Nuts Bread
Sausage Bun Cranberry with Japanese Fried
Glucose Bread Noodle Bread
Soft Dinner Roll Blueberry with
Ficus Bread
Croissant
Slided Bread

25. Basic Line
Pineapple Bun $7.99 Sausage Bun $7.99
Soft Dinner Roll $7.99 Croissant $9.99

26. Basic Line
Sliced Bread
$11.99 (4 slice per pack)

27. Vitamin Line
Blueberry with Ficus Bread
$14.99
Raspberry with Nuts Bread
$14.99

28. Vitamin Line
Cranberry with Glucose Bread
$14.99

29. International Line
Pandan Bread
$17.99
Japanese Fried Noodle
$17.99

30. Bread Designing Reasons
3 reasons:
(1) lifestyle trend
(2) income
(3) customers spending pattern

31. Bread Designing Reasons –
(1) lifestyle trend
• Healthy lifestyle = hot topic in Hong Kong
• 30,000 Secondary students = unhealthy style
• 30% of our target customers have high blood
pressure
• 40% of students have been on diet for keep fit
purpose
( Hong Kong Resource Centre )
 Our bakery offers natural bread to Secondary
students to select and proper way in dieting

32. Bread Designing Reasons –
(2) income + (3) customers spending pattern
• Secondary school students have average $1120
pocket money per month
(research by Visa 2010)
• Students  save 32% of it
• After calculation  $760 for daily spending
 We offer medium-priced bread to our customer

33. Price

34. Price – Basic Line
Product Name Description Price
Pineapple Bun Hong Kong Style with healthy $ 7.99
pineapple sauce; Oliver oil and
canola oil
Sausage Bun Hong Kong Style; Japanese $ 7.99
sausage
Soft Dinner Roll Hong Kong Style; Oliver oil and $ 7.99
canola oil
Croissan Western Style; Oliver oil and $ 9.99
canola oil
Slided Bread Grain $ 11.99 (4
slices per
pack)

35. Price - Vitamin Line
Product Name Description Price
Raspberry with Vitamin E and F, antioxidant, $ 14.99
Nuts Bread strengthen immune system
Cranberry with Antioxidant (Proanthocyanidins), $ 14.99
Glucose Bread strengthen memory, stimulate
calcium absorption
Blueberry with Vitamin A, C and D, enhance $ 14.99
Ficus Bread digestion, prevent constipation

36. Price - International Line
Product Name Description Price
Pandan Bread Malaysian Style with Pandan leaf $ 17.99
Japanese Fried Japan Style with Japanese Fried $ 19.99
Noodle Noodle in French Bun

37. Price – Cost Reference
Soft Dinner Rolls from X bakery (50g for 80 portions)
Cost Calculation
50g Soft Dinner Roll (Normal Size): $ 56.42 / 84 = $1
150 g Soft Dinner Roll (Lunch Set Size): $ 56.42 / 84 x 3 = $3

38. Place

39. Place
Address:
KOT 207, Kowloon Tong MTR Station,
Kowloon Tong, Kowloon and Hong Kong

40. Place
Reasons:
 > 10 schools around Kowloon Tong MTR Station
 most of schools are band one and well known
 ensure they have a high understanding of the
importance of healthy life

41. Place
Reasons:
 Kowloon Tong is middle- income residential and
high- income residential area
students can afford the medium-priced products
 many transportation networks
 provide a high flow of potential customers

42. Promotion

43. Promotion
Point card
– fashionable & follow the pop trend
– learn the promotion method of Taiwanese drinks
shops
– A note card will be given to customer when they buy
our products at the first time
– our shop will give a chop on their cards once
transaction
– When they have collected the required number of
chops  they can have a discount on bread or a free
assigned gift

44. Promotion

45. Promotion

46. Promotion
Networks and Social Media
= low cost methods
–Facebook homepage  promote our store &
products
(∵ Facebook = a good platform to attract
focus , collect comments & communicate with our
customers)
–Webpage  introduce & advertise our
products , provide coupons
–Short video  promote products on Youtube

47. Implementation
Milestones

48. Implementation Milestones
Start Date End Date Budget Who is How to evaluate?
responsible?
Advertising 1/1/2013 31/12/2013 $5270 Junior shop Number of
assistant advertising
coupons collected
in a month
Point Card 1/1/2013 31/12/2013 $1840 Cashier Number of point
System card collected in a
month;
How many
standard size
breads sold for
free
Facebook 1/12/2012 31/2/2013 $0 Assistant Number of
Fan Page manager customers use
check in for
discount;
Number of ‘likes’

49. Marketing
Budget

50. Marketing expense forecast
Month Jan Feb Mar Apr May Jun
Flyer 510 510 510 340 340 340
Giveaway 0 200 200 200 200 80
Coupons 300 300 300 200 200 200
($2 discount)
% in sales 2.025 2.244 2.02 1.644 0.987 0.827

51. Marketing expense forecast
Month Jul Aug Sep Oct Nov Dec
Flyer 340 340 510 510 510 510
Giveaway 80 80 200 200 200 200
Coupons 200 200 200 300 300 300
($2 discount)
% in sales 1.378 1.378 1.011 1 0.962 1.339
Total Flyer Giveaway Coupons ($2 % in sales
discount)
5270 1840 3400 1.327

52. Flyers
• Flyers(A4 size): $0.34/unit
• Expected printed unit:
1500 per month (Jan – March, Sep – Dec)
1000 per month (Apr – Aug)
∵ ↑ flyers distributed during academic period

53. Giveaway with Point Card System
• Assume every month we have about 20 – 25
customers will have this discount.
• In summer vocation there will be about 10
customers using this benefit
• Assume there are about 20% of coupons handlers
using the $2 coupon.
• Sales performance target: First year break-even

54. Giveaway with Point Card System
Fixed cost of our shop:
1. Salary: $9000 monthly per staff. (Totality 5 staff in our shop)
2. Rent: $40000 monthly (As MTR is using a auction basis, lessee willing
to pay the highest rent can rent the place. We plan to spend $40000 per month)
3. Insurance of machinery: $1000 per month
4. Utilities (include cost of printing flyers) :$5000
5.Depreciation expense (Machinery): $2000
Total fixed cost= $66000
Contribution: Selling price – food cost
Contribution: $129/10 – $29.5/10
= 9.95 per bread
Break-even unit: Monthly total fixed cost/contribution per bread
=66000/9.95
=6634 bread per month

55. End
Thank YOU 