1 DorMart DorMart Marketing Management Final Group Report Group 10 Members: 9562525 計弘達 Paul Chi 9562505 陳永昌 Owen Chen 9562536 呂淨君 Caren Lu 9562539 楊雅琳

1

DorMartDorMartMarketing Management

Final Group Report

Group 10 Members:

9562525 計弘達 Paul Chi 9562505 陳永昌 Owen Chen 9562536 呂淨君 Caren Lu 9562539 楊雅琳 Jocelyn Yang 9562540 蔣志銘 Jimmy Jiang 9662509 洪久媄 Laura Hung 911038 李欣怡 Angella Li

Instructor: Dr. Charles Trappey

Marketing Management-Group Report-DorMart 2

AgendaAgenda

• Situation Analysis• Marketing Strategies• Financials, Budgets, and Forecasts• Controls


Situation AnalysisSituation Analysis• DorMart: Leading supermarket brand

for 20 years in Taiwan.• Online shopping is mature in Taiwan.• New strategy: Provide “Door to Door

Service” to customers, but existing stores are still the major force of the revenue.


DorMart ExpressDorMart Express

• Website based supermarket service.• Target Segmentations: busy office

workers, the handicapped, or people who don’t have time to go outside.


Market DemographicsMarket Demographics

• We target busy office workers as our main “DorMart Express” users.

• Ages: Twenty-five to fifty.• Areas: Busy cities such as Taipei and

Hsin-chu.


Market Trends and GrowthMarket Trends and Growth• Present Supermarket Situation:

Traditional non-door-to-door stores, which is extremely competitive.

• Modern lifestyle is busy.• Online shopping is very mature.• Therefore, supermarket door to door

service can be the new trend and creates new profits for DorMart.


SWOT AnalysisSWOT AnalysisStrengths Weaknesses

Leading supermarket positionProduct expertiseAbundant resourcesGood relationship with suppliers

Lack of door to door experienceDifficulty of changing consumer habits

Opportunities Threats

Participation in a new era of purchasing styleIncreased sales volume & profit

Future new entrantsExisting online websitesConvenience stores


ServicesServices

• Door to door service- 24 hours online service (designated time and location).

• B2C business service for daily necessities purchasing.

• Customer can order by DorMart online service, phone calls, and FAX.

• Thousands of products selection. • Easy pay method including credit card,

ATM transferring accounts, or cash payment.


Keys to SuccessKeys to Success• 24 hours procurement service are

convenient to customer. • Door to door service can save

customer’s time for walking around purchasing in stores and goods transportation.


Keys to SuccessKeys to Success• Using procurement information data base,

and data-mining technique, DorMart can analyze the consumers into segments and provide the right advertisements that would minimize the advertising cost.

• We own the advantage of existing operation system. Thus, it will lower the operation cost.


Critical IssuesCritical Issues

• Fast and just-in-time delivery service take more transportation manpower.

• Customer complains cannot be solved immediately, ex ill goods can not swap immediately.


ChannelsChannels• Consumer can drop order trough web

site, phone calls, or by fax. • Pay by credit cards, ATM, or cash . • DorMart’s advertising channel will be

through web Portal sites, TV commercials, newspaper, magazines, radio broadcasting, credit card pamphlets, and handbill.


MacroenvironmenMacroenvironmen

tt • DorMart’s revenue grew 5~1O% each past

years. Due to internet’s prevalence, door to door business increase rapidly.

• Nation’s income growth also increases 5% in daily expenditure of necessities per year in Macroeconomics.

• The busier people are, the more convenient shopping requests there will be.

• Currently, door to door service only occupies about 30% of the procurement business. So, there will be great potential in door to door business.

• From questionnaire investigation, door to door business have 42% potential of whole business which is great inspiration to DorMart.


SStrategy Pyramidtrategy Pyramid

• Build up an easy-to-use internet environment.

• Create a streamlined logistic system.• Create promotion activities and sales

pitch.• Bond specially selected products for

everyday sales or special seasons.


Marketing MixMarketing Mix

• DorMart is not only a retail business, but also provides door to door service.

• DorMart selectively keeps the lowest price for some products, like cola, milk and instant noodles.

• Send E-mail to DorMart members to remind our weekly promotion

• Place advertisements on major Portal sites, like Yahoo, and other channels.


Marketing MixMarketing Mix

• DorMart sends questionnaires to customers to improve service.

• DorMart analyzes customers’ purchasing history to meet and stimulate customer requirements.


Market MissionMarket Mission• Quality• Freshness

• Convenience– Anywhere– Anytime


Market ObjectiveMarket Objective

Customer Growth Forecast (% )

1822 25 28

32

0

10

20

30

40

1 2 3 4 5

Market Share Forecast (% )

30 35 4048

55

0

20

40

60

1 2 3 4 5

Leading the future

63.8% use Internet ---from III31.8% shop online ---from III


Market ObjectiveMarket Objective

Total Growth (%)

5.47.7

1013.44

17.6

0

5

10

15

20

1 2 3 4 5


Finance ObjectiveFinance Objective• 7500 K household ---from RIS

　Y

total household (K)

target percentage (%)

target household (K)

market share (%)

our customer (K)

purchasing power annual (K NTD)

sales annual (K)

1 7,500 18 1,350 30 405 24.0 9,720

2 7,500 22 1,650 35 578 25.2 14,553

3 7,500 25 1,875 40 750 26.5 19,845

4 7,500 28 2,100 48 1,008 27.8 28,005


Target MarketTarget Market• Busyness

– Double Income– One parent Family– Business trap

• Laziness– Rain – Cold – Traffic

• Inconvenience– Old– Baby– Disability


PositioningPositioning• Professional

– traditional supermarket experience

– transportation

• Easy– Order online, Phone calls, FAX– Pre-view e-DM

• Service


Financials, Budgets, and Financials, Budgets, and ForecastsForecasts

Break-even Analysis:Break-even Analysis ：＄： 1,000Sales Break-even ＄ 15,000

Assumptions ：Average Per-Order Gross Margin ％

20 ％

Average Per-Order Variable Cost ％

80 ％

Estimated Fixed cost ＄ 3,000


Sales ForecastSales Forecast Sales forecast

Sales Year 1 Year 2 Year 3 Year 4

Fresh Food $ 4,600 $ 6,420 $ 9,500 $ 13,800

Commodity $ 5,120 $ 8,133 $ 10,345 $ 14,205

Total sales $ 9,720 $ 14,553 $ 19,845 $ 28,005

Direct Cost of Sales

Fresh Food $ 3,680 $ 5,136 $ 7,600 $ 11,040

Commodity $ 4,096 $ 6,506 $ 8,276 $ 11,364

Total Cost of sales $ 7,776 $ 11,642 $ 15,876 $ 22,404


Expense Forecast and Expense Forecast and Contribution MarginContribution Margin

Marketing Expense Budget

Marketing Expense budget

Year 1 Year 2 Year 3 Year 4

Web site $ 300 $ 100 $ 100 $ 100

Advertisements - - - -

Printed Material - - - -

Total marketing Expenses

$ 300 $ 100 $ 100 $ 100

Marketing Expense/sales

3% 1% 1% 1%

Contribution Margin ($1,356) ($189) $ 869 $2,501

Contribution Margin/Sales

-14% -3% 4% 9%


CONTROLSRevenue: monthly and annual

Expenses: monthly and annual

Customer satisfaction

Customer analysis

New product development


Implementation Milestones

Milestones Plan

Milestones StartDate

FinishDate

Budget Man-ager

Dept..

Marketing plan completion

Web site completion Advertising

campaign Marketing activities First batch: Taipei ,Hsin-chu Second batch: Tao-yuan, Chung-li,

Tai-chug, Taiwan, Cashing

1/1/08

1/1/08

2/1/08

4/1/08

9/1/08

9/1/10

2/15/08

3/31/08

6/30/08

12/30/08

$ 0

NT$1,000,000

NT$300,000

NT$300,000

George

George

George

George

George

George

Marketing

Marketing

Marketing

Marketing

Marketing&Relatedmanagers

Marketing&Relatedmanagers


Marketing Organization

The first will be to put T-bar, posters and broadcasting within the supermarkets .

The second marketing method will be advertisements placed in numerous channels.

On line channels: Yahoo, Google, MSN, Yam, etc

Other channels : TV commercials, newspaper, magazines, radio broadcasting, and credit card pamphlets


Contingency Planning

Where: Busy cities such as Taipei and Hsin-chu

How :DorMart has many years of experiences, we have original customer already and would like to enlarge the guest group

Who :who do not have the time to go shopping, who is not convenient to go shopping ( the elder, disabled one), who don’t have transportation vehicle


Thank you for your listening.

Documents

1 DorMart DorMart Marketing Management Final Group Report Group 10 Members: 9562525 計弘達 Paul Chi 9562505 陳永昌 Owen Chen 9562536 呂淨君 Caren Lu 9562539 楊雅琳