M arketing Project - Supermarket

1. Marketing Project - Supermarket Group Member: Alan Hsu Arthur Lam David Lai Louis Wong Wei Chung Ma

2. Content Introduction Market Research SWOT Analysis Market Segmentation, Targeting, Positioning Implementation of the marketing plan Product, Pricing, Place, Promotion Additional components of services marketing Relationship Marketing Contingency plan

4. Market Research • Competitors • Target customers • Multi-branding • Use of information technology

5. Market Research: Target customers • Target customer of the competitors: • High-income group • Not exist • Multinational • Taste, Citysuper, Log-on • General public • Parknshop, Welcome, China Resources Vanguard

6. Market Research: Multi-branding • Competitors with multi-brands • Taste + Parknshop • Log-on + Citysuper

7. Market Research: Use of I.T. • Supermarket exists in the market have their own homepages • Implementation of the element of relationship marketing • Allow different kinds of payment • Provide customers with an online-shopping platform

8. SWOT Analysis: Strength • Strengths • Clear market segmentation • e.g. Multinational/ General/ High Income • Multinational • bulk purchase/ specific/ convenience • Using of IT enhances efficiency • No competitor highly specialized in the market of multinational / high-income group market

9. SWOT Analysis: Weaknesses • Weaknesses: • Supermarket target in multinational / high income may not be popular • Cost maybe higher (e.g. explore fee) • Lower degree of specialization

10. SWOT Analysis: Opportunities • Opportunities: • Huge profits from exploring a new market • Freshness to customers with our entry to this oligopoly market

11. SWOT Analysis: Threats • Threats: • Market saturated (General market) • Financial crisis will have destructive impact on “Sky”

12. Market Segmentation • Demographic segmentation • Income • Psychographic Segmentation • Lifestyle

13. Targeting market • WE WANT TO TARGET AT EACH AND EVERY SINGLE MARKET!!!!!!

14. Positioning: Objectives • Be attending to each and every customers • Be a multi-branded supermarket • Be keeping abreast with the trend of E-commerce

15. SKY: Positioning • Be a peerless high-classed supermarket • Be excelled in terms of product quality

16. Earth: Positioning • Be a supermarket specialized in selling diversified, multinational products • Be able to let foreigners in Hong Kong buy products from their hometowns

17. Human: Positioning • Be a conventional supermarket • Be an complement for“SKY” and “Earth”

18. Implementation of the marketing plan: Product • For physical product: • Convenience goods • Shopping goods • SKY selling high-quality products • For example, Wagyu beef • Earth selling multinational products

19. Implementation of the marketing plan: Product • For augmented products: • Implementation of information technology • Online-shopping • Self-servicing payment • Cooking service • Restaurant stick to each supermarket outlet • Some dishes are not offered • High degree of customized service

20. Implementation of the marketing plan: Place

21. Implementation of the marketing plan: Place • SKY: • Districts where high-income groups are gathered • E.g, IFC, Elements

22. Implementation of the marketing plan: Place • Earth: • Districts where foreigners are gathered • E.g. Tsimshatsui, Causeway bay, Admiralty • Human: • Wide coverage

23. Implementation of the marketing plan: Pricing

24. Implementation of the marketing plan: Pricing • Sky: Buyer-based pricing • Reason: • No close substitute. • Buyers’ price sensitivity is low. • Benefit: • High mark-up.

25. Implementation of the marketing plan: Pricing • Earth: Cost-based pricing • Reason: • No strong competitor existing in the market. • Hard to define the income level of target customers. • Benefit: • Price reasonable to buyers.

26. Implementation of the marketing plan: Pricing • Human: Competitor-based • Reason: • Intense competition. • Customers are price-sensitive. • Benefit: • Easier to get into the market.

27. Promotion Advertising

28. Additional component of services marking

29. Relationship Marketing • Rebate Programme: - $5 cash couponrebated on every $100 purchase - Retain customers in a long run • Delivery service: - guaranteed delivery within 24 hours to door

30. Relationship Marketing • Discount programme (joint with credit card) - offer 10% / 5% discount for certain credit card holders e.g. i) A.E. Platinum & Centurion card holders in SKY ii) HSBC, Hang Seng Bank for Human & Earth

31. Relationship Marketing • Feedback System: - install a machine with buttons of “Satisfaction” and “Dissatisfaction” in front of each cashier - fill out questionnaire, and get cash coupons as complements

32. Recommendations • Jan 10’ - launch of Earth and Human - enough time to prepare - to make sure all I.T. system is workable - to see any possible modification can be applied to SKY.

33. Recommendations • Sept 10’ - launch of SKY - to allow time for economic recovery - to allow time for resources allocation

34. Contingency Plan • Cooked food outlet to restaurants • Shut down some outlets of Earth and SKY, and turn the remaining outlets to Human. • Sell the whole business to potential buyers

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