Cafe de Coral Marketing Paper Essay

1. IntroductionBackground informationThis marketing plan is base on the bustling work eatery in Hong Kong market and the Caf de Coral convocation is focus in this plan. The Group was compound in October 1968, it is principally engaged in the victuals and cater industry as largest Chinese quick service restaurant sort push through, maintaining a publicly recognized leadership position in the mass-market, quick service restaurant chain short letter, with vertical and horizontal diversification towards the food go, food processing and distri furtherion, catering and hospitality sectors in Hong Kong.It has prospered through the concept of customer oriented by increasing the environmental, product and services qualities. Besides, it combines the Chinese and horse opera food cultural in order to create the fashion of steady occasional(a) dining for wellness and nutritional life sort and reserve a modern and warm nonplus for the customers.2. period Market Situation3.1 Marke t AnalysisCaf de Coral is a major Chinese quick service restaurant chain in Hong Kong. Following is an everywhereview of the potential in the catering market and a specialized review of the fast food restaurant market.(a) Overview of the opportunities in the catering market* Hong Kong probably is the around wel come alongd tourist attraction in Asia. By the forecast of the World Tourism Organization, Hong Kong is the fifth most frequently visited termination in the world, accounted for 57 millionvisitors per year by year 2020 (InvestHK, 2012). * The majority of tourist population is come from the Mainland China (InvestHK, 2012) and this would probably flavors the Chinese style culinary art or catering services. * The persistence of pompousness in Hong Kong may induce the demand of fast food instead of ordinary or prodigality cuisines.(b) circumstantial review of the fast food restaurant market* There atomic number 18 15,757 fast food shop kin establishments in Hong Kon g, hiring for 41,319 people (InvestHK, 2012). * According to a survey sponsored by Mingpao and conducted by the Chinese University of Hong Kong(2011), Caf de Coral acquired the titles of most mentioned catering brand and most beloved catering brand among the three major fast food chains (namely Caf de Coral, Maxims and Fairwood). * Caf de Coral is keeping expanding its market share in both catering market and specifically the fast food market. In year 2010, Caf de Coral has expanded its market share in fast food market successfully to 24.8% and in catering market to 4.6%(Commercial Radio, 2010).3.2 Company AnalysisThe Group was incorporated in October 1968 and went public in July 1986 on the Stock Exchange of Hong Kong, which was the first of its kind at the while of listing. In October 2001, it was appointed as one of the top 200 constituents of The Hang Seng Composite Index Series. by and by 42 years of development, it has become the market leader in the Hong Kong fast food indu stry with over 24.8% market share in the Quick Service Restaurant segment and 4.6% of the total dining verboten industry in Hong Kong. Its business operation spans over 2 continents with more than than 300 operating units in Hong Kong.Over the past years, the Group advanced in strides in profit performance and in its business dimensions. The continuous business growth records over the years speak for itself, recording multiple growths in damage of market capitalization, turnover, profits, employees and sack up assets value. The Groups market cap augmentd by over 20 times, turnover by over 19 times,profit by over 14 times and net assets by over 51 times since listing, with a dedicated workforce of 6,500.3.3 SWOT Analysis2.3.1 Strengths(a) harvest-feast DiversityThe Groups menu regularly rotated to maintain a variety of choices and to assemble the admiration and budgets of customers. Products on menu grasp from western cuisine to traditional Chinese dishes. New and seasonal wo rker worker worker products for each time segment are introduced regularly.(b) Strong AdvertisingA Hundred Points of Excellence has been the load to customers and is now a household catch phrase. As part of on-going campaign to strengthen the Caf de Coral brand, proactive advertising campaigns are launched on a continual basis. Through the campaign, the brand image has been further enhance by positioning Caf de Coral as a place not just for best taste and value meals but also a popular meeting place for all walks of life.2.3.2 Weakness(a) relatively High Selling PriceThe food price of Caf de Coral is high in generally by comparing with the topical anesthetic style cha chaan teng and fast food restaurant in Hong Kong. This make outs a comparative single out for the Group.(b) Bad Public RelationIn 2010, Caf de Coral has offered its staffs that they must forfeit their p support lunch name of approximately 45 minutes a day, a net cut in their pay. Political parties, unions, appar itional groups and students unions of universities, had organized and boycott Caf de Coral. After that, Caf de Coral had label as Too Acrimonious.2.3.3 Opportunities(a) Individual VisitsThe government issue of individual visitor from mainland China keep increasing, and most of the visitors from mainland China flavor the Chinese style cuisine or catering services desire Caf de Corals dishes.(c) Inflation in Hong KongThe persistence of inflation in Hong Kong may induce the demand of fast food instead of ordinary or luxury cuisines. As Caf de Coral maintaining a publicly recognized leadership position in fast food chains which benefits from increasing demand of fast food.2.3.4 Threats(a) High Rental CostThe rent in Hong Kong is most the highest among the world. According to the report of SingTao, about 40% of production cost is rental cost. And the rental cost keeps increase every year by 30% to 50%. Some of the restaurant freighternot afford the high rental cost and go bankrupt i n recent year.(b) Price of Ingredient IncreaseUnder persistence of the appreciation in RMB, the price of food member keeps increasing. According to the report of SingTao, the price of food ingredient increasing by 25% which is 35% to 45% of the production cost.3.4 Competitor AnalysisThere are two major direct competitor in Hong Kong include Maxim and Fairwood. And there are about other indirect competitor including international chain fast food restaurant, Chinese restaurant, local style cha chaan teng, etc.Fairwoods quick service restaurants serve mainly Chinese food. Its menu is frequently changed with seasonal favorites. Despite its Chinese predominance, its menu is enriched by the adoption of Western dishes that have been carefully redesigned to suit local tastes in order to enhance itsattractiveness. Also, Fairwoods philosophy has always been to provide a wide range of beneficial shade Chinese and Western cuisine at affordable prices in a bright, dust and modern ambience.M axims quick service restaurants are bringing to customers a variety of quality dishes, a new interior and contented dining environment. Also, Maxims philosophy is Whole-Hearted Mission that is to surprise, enchant and inspire customers with a unique dining experience.International chain fast food restaurant like McDonald, KFC are indirect competitor of Caf de Coral. These types of fast food restaurant are western style, usually with French fries and hamburger. Their nates customers are general public with contrary nationality and culture. And they are especially focus on two-year-old people market.Chinese restaurants are focus on the middle age and sr. market. They provide traditional Chinese dished like dim sum for customer. They are not position as quick service restaurant and they provide a place for customer eating slowly and chatting with family, friends and co-workers.local anesthetic style cha chaan teng are focus on low-mid income running(a) class market. They are qui ck service restaurant provide affordable dishes for customer. The envirnment of cha chaan teng are crowded and noisy which is not equal for having a relaxing and comfortable dinning experience.3.5 Customer Analysis2.5.1Market Segments(a) Segment A Visitor from China The segment consists of visitors who are Chinese residents and having a Chinese style eating habit.(b) Segment B Family The segment consists of people who usually have dinner party outside and do not cook their dinner at home with small family size.(c) Segment C Teenager and tender adult The segment consists of people who ages are between 15 and 45 and they bang heap uping with friend.2.5.2 Bases or variables of Segmentation used(a) Geographic SegmentationGeographic segmentation divides the market of Hong Kong into group base on the variables of Region. Since the target customer of Caf de Coral are local low-mid income working class and visitor from mainland China, public housing estate and shopping plazas are cu llence in this segment. And the groups which segment out from the market are luxury residential areas and mid-level area.(b) Demographic SegmentationAge and Family Size are the discern variables used in this segment.As Caf de Coral adoption of Western dishes into the menu and have fusion of Chinese and Western food cultural which is suitable for the teenager and young adult, ages are between 15 and 45, and elder people do not prefer in this type of dishes. So Age is selected as a signalise variable.As most of family in Hong Kong are small in size and some of the family do not like to cook due to the con game and bustle city live in Hong Kong. These families prefer having dinner outside and Caf de Coral offer them a moment of leisure, relaxation and warm experience to go with the delicious dishes. So Family Size is selected as a samara variable.(c) Psychographic SegmentationIncome and Lifestyle are the key variables used in this segment.As the consumer behaviors and preferences of food will be affected by income. Local low-mid income working class will choose quick service restaurant withaffordable price due to the hustle and bustle city live in Hong Kong as a place of meeting place with friends and co-workers. So Income is selected as a key variable.As Hong Kong is an international city, people prefer a modern experience with fusion of Chinese and Western food cultural. Caf de Coral creates a fashion, health and nutritional dinning lifestyle for customers to gather with friends with warm and joyful experience. So Lifestyle is selected as a key variable.(d) Behavioral SegmentationBenefits is the key variable used in this segment. As city life in Hong Kong is hustle and bustle, convenient and alert are very important factors for customer to choose a restaurant in order to drive home their time. Also, Caf de Coral prospered through the concept of customer oriented by increasing the product and services qualities which make Caf de Coral publicly recognized le adership position in the mass-market.3. Target Market And Positioning3.1 Recommended target marketTeenager and young adult are recommended as a target market. Since teenager and young adult enjoy conference friends in restaurant and prefer a wide range of good quality dishes at affordable prices and a bright, clean and modern ambience. As Caf de coral adoption of Western dishes into the menu and have fusion of Chinese and Western food cultural with the fashion of fast fooling dining for health and nutritional lifestyle and provide a modern and joyful experience for customers, it is suitable for Caf de Coral to focus on teenager and young adult market.3.2 Recommended positionAs teenager and young adult are selected as target market, Caf de Coral isrecommended to position as a diversify, health and untiring quick services restaurant. Since teenager and young adult are keen on having new experience, diversified dishes can satisfy their wants. Also, teenager and young adult are carin g about their body shape, carriage and style, health and unwearying dishes can satisfy their wants and fulfill their perception.4. Market Objectives5.6 Build up a diversified, health and energetic brand imageIn order to build up a diversified, health and energetic brand image, Caf de Coral can make some advertisement in the internet and invite some young artist and singer to promote the new image. Caf de Coral can have some seasonal theme interior design for different western festival and play some soft but popular songs. This enhances the attractiveness of Caf de Coral as a good choice for young people gathering with friends.4.2 Design more new diversified, health and energetic menuThe menu may have more high fiber and low fat dishes which fits the image of health and energetic. Also the menus can have different seasonal and festival theme in order to satisfy the wants of diversification for young people. Also, Caf de Coral can provide more meal plan for friends instead of only p rovide individual meal plan.ReferencesCaf de Coral, 2012 http//www.cafedecoral.comEastweek, 2011. http//dev.eastweek.com.hk/index.php?aid=19412 InvestHK, 2012.http//www.investhk.gov.hk/wp-content/uploads/2012/07/2012.07-foodservice-en.pdf Mingpao, 2011.http//marketing.mingpao.com/hkbrand/cfm/other.cfm?html=10c Commercial Radio, 2010.http//www.snb.hk/page/zh-tw/snb_report.aspx?ItemId=264449 Min Wage Research,2010. http//minwageresearch.blogspot.hk/2010/11/ongoing-cafe-de-coral-debacle.html