ORGREENIC BAKERY

Group Members:Shung Chi Tao Jennifer 11523480dCheng Ka Wan 11346388dWu Shan Ting 11343039dMok Yee Sum Eugenia 11256305d

Marketing HTM 2121

Business Concept

Vision Statement

“To provide quality and nutritious bread to all customers”

Mission Statement

“To promote green and healthy brad as the essential diets for everyone, particularly

office ladies”

Business concept

Objectives

1) Breakeven within first five months

2) 10-25% growth of sales every month

3) Costs of our products served can be maintained in 75% of the mark- up prices

4) To become “share of mind” & “share of heart”

External Environment: Demographic Trends

Existing

market

•30% of interviewee eat bakery almost every day (Produce Green Foundation and Hong Kong Vegetarian Society ,2001)

•Bakery market keep in growing

Trend

•From 2005 to 2011

• bakery products business

• employees

• gross output

• Located at Kowloon + Hong Kong

External Environment: Political & Legal Trends

Government intervention on the food concern

Centre for Food Safety impose guidelines on the

operation of food industry (Chow, 2009)

External Environment: Ecological Trends

Steady supplier

91% of the health store customer buy organic

food because they are environmentally friendly

Plastic bag is harmful to the Earth

External Environment: Economic Trends The World This Year (2010)

lose of confidence in the ability of a few countries to pay their debt

Increase in buying power

Environmental analysis: SWOT

Micro Environment: Competitor 1

Hung Fook Tong Holdings-Competitor in product category

Target customers: MTR passengers

Promotions: Advertisement and internet

Environment: Clean and hygienic

Strength: high market share,

CSR, healthy image

Weakness: plastic container and packages

Micro Environment: Competitor 2

Maxim’s Cakes-Competitor in customers category

Target customers: white collars Product & Service: Bakery, Cake, made to order

services Promotions: Advertisement and sales promotion Strength: long history ,reputation Weakness: seldom new products

Micro Environment: Competitor 3Roll – Geographical Competitor

Target customer: teenagers Product: Swiss roll Promotion: coupon, social media Environment: clean and fresh Strength: fresh image,

low cost promotion Weaknesses: limited labor force

Target Market Analysis: Segmentation

•Commercial area

•People who work in offices

Geographic segmentatio

n

•879,790 office ladies aged from 25 to 44 (Census and Statistical Department)

•higher disposable income

Demographic

Segmentation

•Social class segmentation and lifestyle(Jackie L.M. Tam, Susan H.C. Tai, 1998)

•5 segments

Psychological

Segmentation

Target Market Analysis : Target Market

“Traditionalists” “Strivers” “Achievers” “Adapters” “Middle-class hopefuls”

• 7% of the “Achievers” willing to latch new trends (Jackie L.M. Tam, Susan H.C. Tai ,1998)

• Rich with high disposable income (Thompson & Hickey, 2011)

Target Market Analysis: Positioning

The place the product occupies in consumer’s minds relative to competing products

Competitive advantage : organic and healthy

Factors being analyze : Market price, Healthy

4Ps - Price

Critical factor in operation (Myers, M. B., Cavusgil, S. T.,

& Diamantopoulos, A. 2002)

Packaged way-$18-$25

Target market is “ Achievers”

Higher than our competitor

Can achieve physical needs and the social status

Customers need to actively maintain and present their status through buying pattern, brand, tangible and intangible products. (Ehrenreich, 1989)

4Ps – Products

Atmosphere• Café liked environment- sofa and table• Bright light and green plants

Organic food• Bread , cake and health drinks• Quality control by the Hong Kong Organic

Certification Centre

Package• Breakfast -$20-25• Lunch--$30-35

4Ps- Place

Location of Bakery in HK

4Ps- Place

Location of Orgreenic

4Ps- Place

4Ps - Promotion

Communicate benefit to customer

Create demandGoeldner& Brent Ritchie,2009

• Leaflet :background of Ogreenic & product1.Advertisin

g

• Regular discount

• Coupon distribution 2.Sales

promotion

4Ps - Promotion

• Convincing retailer

• Create relationship with customers

3.Personal selling

• Official website

• Specific & updated

4.Public relations

and publicity

Milestones

Date Event Objective Person

Responsible

Budget

2/5-7/5/2012 Design the leaflet supervisor

9/5-11/5/2012 Find the printing company

for leaflet

PR

13/5-17/5/2012 Produce leaflet PR $5000

1/6- 17/6/2012 Plan official website Attract new

customer

supervisor

9/6-15/6-2012 Find website design

company

PR $6000

10/6/2012 Establishing of official

website

Get awareness

12/6-20/2012 Distribution of leaflet Attract new

customer

Assistance

manager

$2000

Before establishment

of company

Milestones1/7/2012 Opening of company

3/7-23/7/2012 Discount period Attract new

customer

24/7-25/7/2012 Produce leaflet Assistance

manager

$10000

26/7-5/8/2102 Distribution of leaflet Attract new

customer

PR $1500

7/8-9/8/2012 Product coupon PR 3500

10/8-20/8/2012 Distribution of coupon Attract new

customer

retailers

25/8-31/8/2012 Offer special discount for

old customers

Keeping the

existing customers

1/9-8/9/2012 Distribution of leaflet Attract new

customer

Establishment of

Orgreenic

Milestones

Christmas promotion- a highlighted event

15/10-

28/10/2012

Distribution of leaflet Attract new

customer

Assistance

manager

$500

11/11-

18/11/2012

Discount period Attract new

customer

11/12-

15/12/2012

Distribution of coupon Attract new

customer

retailers

17/12-

31/12/2012

Christmas discount Attract new and

existing

customers

Milestones

Promotion in next year

5/2-13/2/2012 Discount period Attract new

customer

6/3-10/3/2012 Distribution of leaflet Attract new

customer

Assistance

manager

$1000

12/3-

18/3/2012

Distribution of

coupon

Attract new

customer

retailers

15/4-

20/4/2012

Offer special discount

for old customers

Keeping

the existing

customers

21/4-

30/4/2012

Evaluation Make

adjustment

Supervisor

10/1-

15/10/2012

Distribution of leaflet Attract new

customer

Assistance

manager

$1000

Budgeting Controls-Forecast sales

Budgeting Controls- marketing expense budget

Marketing materials Cost Amount/ days needed

Total

Color Leaflet$2/leaflet 7500 $15000

Labor cost (Past-time employee distributing leaflet)

$133/ day 45 $6000

Website design company

$6000 / $6000

Coupon$0.1/coupon 3500 $3500

Budgeting Controls-Income statement

OrgreenicIncome Statement

July(2012) August September October November December January(2013) February March April May June July

Revenue

Net sales $62,000 $93,000 $105,000 $124,000 $150,000 $217,000 $155,000 $168,000 $217,000 $210,000 $232,500 $225,000 $232,500

Cost of goods sold $45,060 $46,030 $47,310 $48,450 $51,410 $52,131 $47,280 $46,289 $47,389 $47,694 $47,093 $47,500 $47,460

Gross Profit $16,940 $46,970 $57,690 $75,550 $98,590 $164,869 $107,720 $121,711 $169,611 $162,306 $185,407 $177,500 $185,040

Expenses

Variable cost

Water $2,100 $2,000 $1,900 $1,900 $2,100 $2,200 $2,100 $2,100 $2,100 $2,200 $2,000 $1,900 $1,800

Electricity $7,000 $8,000 $8,000 $8,000 $10,000 $10,000 $10,000 $11,000 $12,000 $12,000 $13,000 $10,000 $1,1000

Promotion cost(Shown in table 1)

$10,750 $4,750 $1,250 $1,750 $1,250 $1,250 $1,250 $1,250 $2,250 $1,250 $1,250 $1,250 $1,250

Miscellaneous expense $110 $130 $120 $150 $130 $180 $150 $170 $140 $140 $150 $160 $1,40

Total variable cost $19,960 $14,880 $11,270 $11,800 $13,480 $13,630 $13,500 $14,520 $16,490 $15,590 $16,400 $13,310 $14,190

Fixed Costs

Rent $65,000 $65,000 $65,000 $65,000 $65,000 $65,000 $65,000 $65,000 $65,000 $65,000 $65,000 $65,000 $65,000

Salary $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000

Telephone $110 $110 $110 $110 $110 $110 $110 $110 $110 $110 $110 $110 $1,900

Total fixed cost $85,110 $85,110 $85,110 $85,110 $85,110 $85,110 $85,110 $85,110 $85,110 $85,110 $85,110 $85,110 $85,110

Total Costs $105,070 $99,990 $96,380 $96,910 $98,590 $98,740 $98,610 $99,630 $101,600 $100,700 $101,510 $98,420 $99,300

Net Income ($88,130) ($53,020) ($38,690) ($21,360) $ 0 $66,129 $9,110 $22,081 $68,0111 $61,606 $83,897 $77,080 $85,740

• Break-even: 5 months• High-lighted promotion in

Dec, income increase rapidly

• Increase income steadily after Dec

Marketing Control

1. Statistical report provide precise & specific information

2. Re-assess the pricing & marketing methods

Conclusion

Promote healthy lifestyle to office ladies

identify the potential benefits of consuming organic products

Reference

Bohi, H. (2010). BEHAVIORAL TARGET MARKETING: Virtual stalker or virtual coach?. Alaska Business Monthly, 26 (2), 10-14. 

Canadian Consumers :Are Regio-Centric Standardized Marketing Strategies

Centre for Food Safety. (2012). Food and Environmental Hygiene Department. Trade Guidelines on Safe Production of Buns and Sandwiches. 

Chow. S.M. (2009). Centre for Food Safety. Food Safety Focus. (39). http://www.cfs.gov.hk/english/multimedia/multimedia_pub/multimedia_pub_fsf_39_02.html.

Feasible? Asia Pacific Journal of Marketing and Logistics, 20 ( 4), 433-454.

General Household Survey Section. (2012). Statistical Tables. Census and Statistical Department. http://www.censtatd.gov.hk/hong_kong_statistics/statistical_tables/index.jsp?subjectID=2&tableID=007.

 

Google Map,(2012). Bakery in Hong Kong . Retrieved February 5, 2012, fromhttp://maps.google.com/maps?hl=zh-TW&tab=wl

 Goeldner, C.R., & Brent Ritchie, J.R., (2009). Tourism: Principles, practices, philosophies. Hoboken, NJ: John Wiley& Sons Inc.chapter 19.

Gonzalez, A. M. and Bello, L. (2002).The Construct " Lifestyle" in Market

 Harcar, T. a. and Kaynak, E. (2008). Life-Style Orientation of Rural US and

 

Hong Kong Census and Statistic Department, (2011). Chinese . Retrieved February 11, 2012, from http://www.censtatd.gov.hk/freedownload.jsp?file=stat_table/labour/D5250010C2011QQ03C.xls&title=%E6%8C%89%E9%9B%B6%E5%94%AE%E5%95%86%E9%A1%9E%E5%88%A5%E5%8A%83%E5%88%86%E7%9A%84%E9%9B%B6%E5%94%AE%E6%A5%AD%E6%A9%9F%E6%A7%8B%E5%96%AE%E4%BD%8D%E6%95%B8%E7%9B%AE%E3%80%81%E5%B0%B1%E6%A5%AD%E4%BA%BA%E6%95%B8%E5%8F%8A%E8%81%B7%E4%BD%8D%E7%A9%BA%E7%BC%BA%E6%95%B8%E7%9B%AE%EF%BC%88%E5%85%AC%E5%8B%99%E5%93%A1%E9%99%A4%E5%A4%96%EF%BC%89&issue=2011%E5%B9%B49%E6%9C%88&lang=2.

Hong Kong Census and Statistic Department, (2011). Report on 2003 Annual Survey of Industrial Production. Retrieved February 14, 2012, from http://www.statistics.gov.hk/publication/stat_report/commerce/B10700012003AN03B0100.pdf

Hjelmar, U. (2011). Consumers' purchase of organic food products. A matter of convenience and reflextive practices. Appetite, 56 336-344.

Jackie L.M. Tam, Susan H.C. Tai, (1998) "Research note:The psychographic segmentation of the female market in Greater China", International Marketing Review, Vol. 15 Iss: 1, pp.61 – 77

Kotler, P., Armstron, G., Ang, S. H., Leong, S. M., Tan, C. T. and Hon-Ming, O. Y. (2009). Principle of marketing a Global Perspective. Pearson Eduction South Asia. Singapore.

Kotler, P., Bowen, J. & Makens, J. (2010). Marketing for Hospitality and Langberg, J. (2001). Potential Market for Frozen Dough, Food Industry Score Card.

01(E3) Retrieved February 15, 2012, from http://www.safoodcentre.com.au/_media/pdf/sundry_sites/food_sa/facts/industry_scorecards/e3_frozendoughexports.pdf. 

Maxim’s,(2012).Maxim’ Cake . Retrieved February 14, 2012, from http://www.maxims.com.hk/tc/main.asp 

Myers, M. B., Cavusgil, S. T., & Diamantopoulos, A. (2002). Antecedents and actions of export pricing strategy: A conceptual framework and research propositions. European Journal of Marketing, 36(1), 159-188. doi:10.1108/03090560210412746.

Produce Green Foundation & Hong Kong Vegetarian Society, (2001). ‘香港人吃麵包調查報告’. Retrieved February 11, 2012, from http://www.vegsochk.org/HealthyDiet/BreadReport.htm 

Sari, A., & Huam, H. T. (2011). The role of psychographic for distinguishing main categories of consumers based on lifestyle, personality and value variables.International Journal of Economics and Research, 02(04), 29.

Schifferstein, H. & Ophuis, P. (1998). Health-related determinants of organic food consumption in the neverlands. Food Quality and Preference, 9 (3), 119-133

Segmentation the Behavior of Tourist Consumers. European Journal of Marketing, 36(1/2), 51-85.

Shankar, V., & Bolton, R. N. (2004). An Empirical Analysis of Determinants of Retailer Pricing Strategy. Marketing Science, 23(1), 28-49. 

Tourism (5th ed), Upper Saddled River, NJ: Pearson Prentice Hall.