HTM 2121TOURISM AND MARKETING SEM002Group C LAU Ellen 11302520D Mak Ka Tik, Roy 11317559D Ng Wing Chung, Witty 11367431D Wang Huihan, Freda 10834481D Zhang Xi yue, Everlyn 10813412D

Chocolatier

Today’s presentationExternal environmental analysis

Opportunities and threats

Competitor analysis

Objective

Target marketMarketing Mix strategies and programs (4Ps)

Implementation Milestone

Marketing Budget

Marketing controls

External environment analysis

Demographic trends Chinese females travel consumption

amount

Growth rate of household consumption in China

Sales of premium chocolate 129% in past 5 years

Ecological tendsSustainable chocolate production trend Utilize organic cocoas

-little pollution-Ensured qualities

Technological trends Health-conscious consuming trend New technology to produce reduced-fat & fat-free chocolate items

Multi use trend Innovative technology to produce chocolate cocktails chocolate cosmic chocolate hotpots

Political-legal trends Issue: Use of child labor and slaves in cocoa

farms e.g.15,000 children were working in the chocolate farms of Cote d'Ivoire

Establishment of a industry-wide labor standards

System for monitoring the industry

Social-cultural trends Double side trends: Criticism: high-fat milk chocolates – threaten health

Popularity : contain antioxidant flavones- associated health benefits

Pursuit for ‘healthy chocolates’ -Low fat -Nutritious-Organic 

Opportunities and Threats

Opportunities Satisfaction for ‘diet ’ trend- Low fat and calories

Satisfaction for ‘healthy and fit’ trend-  Organic materials with rich nutrition

Best choice as souvenirs- Hong Kong as an attractive tourism destination- Specialty of Hong Kong-Chinese chocolate brand

Cooperation with hotel chains- Special promotional tool- Concentration on target market

Threats Competition from other matured

companies (e.g. Godiva) Existing market share Recognizable brand Powerful promotion Imitation of brand concept - ‘Organic and Diet chocolate’- Diminishing uniqueness

Loss of potential customers

Competitor analysisA new marketCurrent CompetitorGodiva ( similar image and

services at similar prices)

Competitor analysis PRODUCT -Two production methods (enrobing and shell-

molding ) -Made by fine chocolate and high quality

ingredients -Two types of chocolates: Gold collection and

Piece by Piece PLACE -15 stores in Hong Kong -Luxury product shopping mall

Competitor analysis PRICE Piece-by-Piece: HK$140 per 100gm. Gold Collection 8/15pcs: HK$150/$280 Gold Collection 25/32pcs: HK$450/$580.

PROMOTION Cooperate with Town gas Cooking Centre

Chocolates School for making chocolates class.

Competitor analysis Strength High quality product Global brand Leader Complete sales net in the worldwide

Weakness Godiva chocolate’s price set on a high level

Competitor analysis Opportunities Luxury image and positive brand name Close interaction between Hong Kong and

Mainland China

Threats Keen competition E.G: Agnes B operated its own chocolate

shop these years.

Our Objectives...

To become a famous brand in Hong Kong

5% Market share in Hong Kong market

According to Marbury (2009), foreign chocolate brands have captured 70% of the Chinese chocolate market.

70%

30%

Market share of choclatiers in China

Foreign chocolate brandsLocal

Our target:5% out of this 30%

Become a famous brandHOW?

A high quality materials

Well-planned strategy An environmental

friendly way and sustainable development policy

High quality

Target customer Mainland traveler in Hong Kong aged 26-45 Financially independent

Target customers analysis Chinese traveler is a big group of

potential customers High demand of product and purchasing

power Our product can satisfy their wants

Healthy Psychology Purchase pattern

Marketing Mix strategies and programs (4Ps) Positioning Mainland female traveler in Hong Kong

aged 26-47 Luxury brand Main competitor - Godiva Trailer made chocolate for Mainland female Hong Kong based company Cater cultural need

Marketing Mix strategies and programs (4Ps) Products French woman Sophisticated Independent Stylish and modern

Femme Moderne

Marketing Mix strategies and programs (4Ps) Products AUSTRALIAN VITAMINS CSR Organic cocoa bean

low-fat ingredient

Marketing Mix strategies and programs (4Ps)

Chocolate bar

Marketing Mix strategies and programs (4Ps) Seasonal design

Marketing Mix strategies and programs (4Ps) Price

Godiva Femme Moderne

WinSpecial price for

the hotel guests Seasonal

discount

Marketing Mix strategies and programs (4Ps) Place Business and leisure 5 stars chain hotels

ISLAND SHANGRI-LA Kowloon Shangri-

la Traders hotels

Marketing Mix strategies and programs (4Ps) Promotion Free chocolate desert for the hotel

restaurant Hotel staff promote our chocolate Free chocolate gifts for hotel guests on

their birthday

Milestones

Budget (Unit=1,000 HKD)Budget

Sales forecast(Unit=1,000 HKD)

Cost will exceed sales in the first yearProfitable in long term

Marketing expense(Unit=1 HKD)

Marketing controls

Questionnaire

Marketing controlsCorrective actions Services Ensuring staff quality meets standard Lessons for improving service attitude

Food Consider another cocoa supplier to enhance

higher quality Develop more products that can attract different

customers

Marketing controls Corrective Actions

Promotion Decreasing the budget of the least effective channel.

Cut the budget of the most effectiveness promotion channel and uses it to other new channels in order to test the market.

Remain one or two highest effective channels instead of multi channels if the promotion cost could not provide expected sales.

ReferenceAustralian Vitamins. (n.d.). Cacao Beans: Raw Organic. In Australian Vitamins.Retrieved Mar 7, 2012, from http://www.australianvitamins.com/products/view/908.Price. China.com. (2006). 中國女性生活狀態報告 . In China.com. Retrieved 2006, from http://big5.china.com.cn/info/zhuanti/nxsh/node_7003138.htm. Godiva. (n.d.). Godiva Chocolatier. Retrieved March 8, 2012, from http://www.godiva.com.hk/  HIGHBEAM BUSINESS. (2011). Chocolate and Cocoa Products market. In HIGHBEAM BUSINESS. Retrieved March 8, 2012, from http://business.highbeam.com/industry-reports/food/chocolate-cocoa-products

ReferenceHKTB. (2010). Visitor arrival statistic. In HKTB . Retrieved 2010, from http://tw.partnernet.hktb.com/pnweb/jsp/comm/index.jsp?pageContent=%2Fjsp%2Frso%2Frso_pub.jsp&charset=b5. In N Marbury (Chair)(2009). Paper presented at Godiva brand brief. H．Smith. (1935). 中國人的性格 . In angelfire. Retrieved 2010, fromhttp://www.angelfire.com/hi/hayashi/xinge.html. Karyu Realty Ltd. (n.d). Retrieved March 21,2012, from http://smeitrade.com/showroom/model/T0126/templateCategoryProductList.do?ParentId=1326965323672000479&webId=1318559973524012836&editCurrentLanguage=1318559973556012837.  Leanne, M. (2011). Top 10 Luxury Chocolatiers. In The Asia City Network. Retrieved March 21,2012, fromhttp://hk.asia-city.com/restaurants/article/top-10-luxury-chocolatiers.

ReferenceNational Bureau of Statistics of China.Retrieved March 8, 2012, from http://www.stats.gov.cn/ Net MBA Business knowledge Center. (n.d.). The Marketing Mix (The 4 P's of Marketing). In Net MBA.Retrieved Mar 7, 2012, from http://www.netmba.com/marketing/mix/ 

Qunar. (2010).女性旅遊報告趨勢 . In Qunar. Retrieved 2010, from http://hot.qunar.com/download/2010womentravelreport.pdf.

The Epoch Times. (2005). 中國女性生活質量報告 .In The Epoch Times . Retrieved 2006, fromhttp://tw.epochtimes.com/b5/6/3/2/n1242531.htm.

 Ycharts. (2011). Rocky Mountain Chocolate Factory Gross Profit Margin. In Ycharts. Retrieved March 21,2012, from http://ycharts.com/companies/RMCF/gross_profit_margin.

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