Product Development and Marketing Laboratory 04

Marketing Plan
Section Purpose
1. Executive Summary       We are a famous "Cafe Chain Shop" in Hong Kong, while the market saturation, so we expects to develop our market to China mainland. According to our planning, we have two location to develop our chain shop, they are Guangzhou and Shenzhen. Because we are the first time develop market in mainland, so we choose the location where nearby Hong Kong, that may be easier to control and inspection our business. 

      About the business of "Cafe Chain Shop", we expects to introduce the "Internet Cafe" Style and the "Traditional Cafe" Style to China mainland market. About the Cafe Shop style, we divide to two main categories, one of style is for young citizens, we know that the internet service is not enough in market, so decide to focus on this points to develop our market. Other hands, refer to the results in market research, we know the sales feel there is haven't got enough place for their business, so we divide a section of cafe shop for traditional business style use.
2. Current Marketing Situation
Market: According to existing market culture in China, much of business meeting haven't got enough location for them. Other hands, Internet cafe is popular in global environment, but many citizen can not effort much money to buy a computer, so we propose to provide some location for these two needs. Product: About the product, we although sell our internet service by hour-renting. And the varies types of coffee,   snacks, cookies and some set-lunch is our products

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Competition: About the competition, we have some major categories competition to solve, at first know we can not mark up the price is too high, because we must concern the consumer's effort. Our same style competitor is other factors to disturb our planning. But the major factors is how to teach people to know the style of our cafe chain shop's culture and service.  Distribution: In our planning, we want to rent some point which near by the central commercial district and building. For our research, we know Shenzhen will be establish a MTR system, so we plan some location near the MTR station and shopping mall.

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3. Threats and Opportunity Analysis
Strengths: Our advantages is base on our good knowledge of difference coffee, so we presents our good skills in making a best coffee. About the supply chain, we have a long-term partnership to support us, so we are not to concern the leak of support. Weakness: About the tradition culture, we haven't got any paths to collect the suitable taste for citizens. On the other hands, while we never try to develop our business mainland, so we must increase our effort to manage daily operation.  
Opportunity: Because our partner of material suppliers promise they can supply more lower price materials for us, that can decrease our budgets for our business planning. About the lower cost of renting, so we can establish our renting overheads in a lower level. The major point, we know that China will apply to W.T.O. later, so the commercial and business meeting must increase, many other countries culture are similar to our styles, so these points is our opportunities for our business planning. Threats: About the threats, some larger chain shop are is business competitor. Fast Food, Cafe Chain Shop are the bigger challenge for us. We concern our some style competitor will be establish some ideas and culture will be affect our development planning. About the renting, we must concern the renting price will be increase in coming years, so we must clearly to make decision for our business planning.

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4. Objectives and Issues   According to our company's objectives, we expect to introduce the "Coffee-business culture" to China mainland. Our focus customers will be the business man, we provides the leisure place separate with an are for business meeting. After their meeting, we provide world-class taste coffee to our premier customers. Others, our opposite customers is youth citizen, our company provide internet broadband service and 24-hours opening for them.

   Refer to our market plan, we expect the target can obtain about 20% in the couple of years, after our business increase, we forecast the market share will be increase to 35%. According to our financial plan, we forecast to sell 500 cups of coffee per day that can be balance our investment. About the profit income, we prepare use the "Internet-Zone" to gain our profit, in first year, we forecast that can make about 30% profit for our whole business. 
5. Marketing Strategies
Product:    About the product, our company sells our two major categories. The first selling plan called "Business-Cafe Meeting", our selling points are provide a broadband internet service, individual area for business meeting, and some world-class coffee, we expects to provide a good area to customer. Other hands, the "Youth-Internet Zone" provides a broadband internet service and some snacks to proof company's income. Price:  Product's price is a main decision for our business plan, we prefer the coffee will be R.M.B. $13 to $ 25 per cup for "Business-Cafe", certainly we have some set lunch and snacks to customers which price will be set R.M.B. $ 25 to $50. "Youth-Internet Zone" price is base on hourly renting, we forecast the price about $12 per hour and we provide some soft-drink and snacks, the prices about set to R.M.B. $6 to $18.   
Place:    After our research and meeting, we set our first 10 locations nearby some business districts, and next 3 shops will be open at some shopping mall, because that can easily to meet our target customer, the business results is more effectible.   Promotion:    About promotion, we plan by two style. We send some fax to companies to introduce our shops, about the updating promotion, many telecommunication company can send SMS message to youth-customer like a advertising. 
6. Action Programs ¡@Refer to our application, we must found some location for a first priority, and then we apply the license for business and internet broadband supplier. Second, we require to recruit some senior staff in mainland, because they have more experiences for maintain the business. Shop decoration and preparation will be held on 2 months later. After 3 months later, our company will be provide a larger promotion to introduce our cafe, so our business will be official start.
7. Budgets ¡@After consult our financial consultant, we prepare to investment 2 million for our first planning. About the 50% of investment, we allocate to spend the hardware (license application and shop renting) investment. 25% use for promotion,  because this trial is the first time of our company, so we use more resources to introduce our cafe. And the last 15%, that we use to our normally capital, because we must give some backup for our maintain, and that can be proof our vendor's trust.
8. Controls ¡@About the business control, we recruit senior staff in mainland for first level management, because they have experience to manage and maintain company's business. Other hands, our Hong Kong senior manager will attend meeting frequently in first year, because we must control and supervisory more details.

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