DESSERT ICON

HTM2121TOURISM & HOSPITALITY MARKETING

MARKETING PLAN

Group DChau Yuen Ching, Pinky

11324653DChu Sing Lung, Michael

11248792DWong Wai Yin, Roy 11090628D

Yiu Ka Yee, Artemis 11083736D

1. Business Concept2. External Environment analysis:

Opportunity and Threats3. Target Market4. Positioning and Marketing Mix (4P)5. Implementation milestone6. Marketing Budget7. Marketing Controls

Presentation Flow

To promote healthy eating habit

Business Concept

Hong Kong Style Dessert

Mission

To provide a place for relaxing and gathering

Business Concept

Resources

Employees

- Provide quality customer service

- Finish food production by cooperating with their colleagues

- Trainings will be provided

Owners

- Is also managers- Manage a team- Enhance the morale of

staff- Minimize turnover rate- Control budget- Design menu - Launch promotion

Objectives

Break even after 6-month operation

Gain 5% return on investment after 1 year

Business Concept

Micro-environment

Supplier

Existing Competitors

Marketing Intermediarie

s

Publics

Customers

Opportunity Threat

External environmental analysis: Opportunities & Threats

External environmental analysis: Opportunities & Threats

Macro-environment

Demographic

Technological

Political

Economic

Cultural

Opportunity Threat

Students

Hong Kong Polytechnic University• 25000 students

Hong Kong Community College• 7000 students

Both HKDSE & A-Level Students

Target Market

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

Target Market

The large of variety of desserts

Relaxing and comfortable environment

Acceptable food taste and affordable price

POSITIONING

Divided into seven categories

PRODUCTS

Chinese Style DessertTofu PuddingBlack GlutinousSmall Ball-CrushedChinese CakesSagoGrass Jelly

Over Fifty Kinds of Desserts

Target profit pricing

PRICING

aims to gain 5% return on capital after 1-year operation

Break-even analysis: Total Revenue = total Costs

When selling price > $32 return on investment

Average selling price = $32

Shop 44B, G/F, Harbour Crystal Centre, 100 Granville Road, Tsim Sha Tsui

PLACE

Was a dessert house before

near The Hong KongPolytechnic University

many restaurants nearby

near Hung Hom MTR station

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

PROMOTION

Milestone Start Time

End Time

Budget

Who is responsibl

e?

How to evaluate

?

1 EatSmart@restaurant.hkCampaign

1st April 31st March

--- Manager and chef

Assessment by the

Department of Health

2 QualityTourismServices

1st April 31st March

HKD 5000

Manager Assessment by the

restaurant itself and

QTSA

3 Festivals Promotion Chinese New year Valentine’s Day Mid-Autumn

Festival Halloween Christmas

Depends

Depends

HKD 1000

Chef Sales volume and customers’ feedback

IMPLEMENTATION MILESTONE

COST ANALYSIS

MARKETING BUDGET

56%($100,000

)

39%($70000)

1%($1000)

1%($2450)3%($5170)

INITIAL COSTS FOR BUSINESS

Decoration Equipment and Fixture Insurance Business License Restaurant License

MARKETING BUDGET

52%($60000)36%

($41975)

4%($5000)

4%($5000)3%($3000)1%($420)0%($300)

FIXED COST ANALYSIS Salaries

Rent

Water rate

Electricity

Gas Bill

Depreciation expense

Sundry expense

COST ANALYSIS

Items Cost (HKD)

Raw materials 40,000

Total 40,000

MARKETING BUDGETCOST ANALYSIS

VARIABLE COST ANALYSIS

How much is needed to cover the fixed costs, prepayment and variable costs for the first month?

HK$ 500,000

MARKETING BUDGETCOST ANALYSIS

Cost estimation is based on:- Websites of service providers - Personal experience of the owners of dessert

houses in Hung Hom

Because of the budget constrain,

the highest food cost is set to be HK$ 60,000

4 5 6 7 8 9 10 11 12 1 2 30

50000

100000

150000

200000

250000

SALES REVENUE

MARKETING BUDGET

Month

HKD

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

MARKETING BUDGETSALES FORECAST

MARKETING EXPENSE FORECAST

MARKETING BUDGET

84%($15000)

14%($2400

)

2%($360)

MARKETING EXPENSES

Print Ad

Flyers

Internet

1 4 7 10 130

1

2

3

4

MAKETING EXPENSES

% in Sales

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.

BREAK-EVEN ANALYSIS

MARKETING BUDGET

Average price of dessert served: HK$ 32Average variable cost of dessert served: (HK$ 40000X12)/70260 = HK$ 7Total fixed cost: HK$1406420

Monthly Break-even point = 1406420/(32-7)= 56257Daily Break-even point = 56257 / 365 = 155

Sell at least 155 desserts per day

PAYBACK PERIOD ANALYISIS

MARKETING BUDGET

Total fixed cost : HK$ 178,620Month 4 5 6 7 8 9 10 11 12 1 2 3 Total

Profit/ (Loss)

11250

14075

16575

32825

51575

45325

36575

29075

43325

22825

19575

27075

350075

Payback period of Dessert Icon: 6.20 months

Capital return in first year : 8.2%

Marketing Controls

Activity Frequency

Profit Control Sales Analysis Monthly

Efficiency Control Evaluation with Employees

Service Quality Assessment

Weekly

Strategic Control

Contingency Planning When Necessary

MARKETING CONTROLS

DESSERT ICON

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