Café De Coral Strategic Plan
Background
Café De Coral was established in 1968 and it operates to more than 100 self-service fast food restaurants in the city. It is considered as the largest fast food brand in Hong Kong, with more than 34 years of proven experience in the industry of food service and catering. The restaurants serves to about 300,000 customers everyday, that makes it’s the undeniably leader in the market of the said field (Café De Coral 2005).
Opportunities
There are different opportunities that can be took advantage of Café De Coral, in order to maintain their success, at the same time, consider in the process of strategic planning. First is the growth of the fast-food industry. It is important to consider that the fast-food industry is considered as the fastest-growing business sector in the city. The Hong Kong Department of Census and Statistic reported that the fast-food receipts had increased from HK8 million or equivalent to US million in 1980 to $HJK6, 422 million or US4 million in 1991 (Lan& Khan 1995).
Aside from that, the growing economic aspect of Hong Kong had helped to changed the lifestyle of the Hong Kong residents that helped to increase dining out. In 1990 alone, Hong Kong household is spending total of 56 percent of its food budget on eating out. The said number is twice the level of the Japanese (25%) and thrice that of American (17%) (Lan& Khan 1995). The said growth is also the result of the growing number of women in the labor force, where in mothers; no longer have time to prepare food for her family. In 2007, due to the economic growth of the city, the employment opportunities for women have increased; the rate of their participation had increased from 45% to 49. 7% compare to last year. Aside from that, the rate of female managers and administrators had increased from 19.5% during 2006, to 31% of 2007 (Ip 2007).
It is also important to consider the opportunities that will be given by the growing or developing industry of tourism. The city is considered as one of the most successful region in terms of tourism in the world. In 2006, the city received a total of 25.25 million tourists’ visits. In 2007, there was an increase of 15.9% to the arrivals or a total of 2,120,350 visitors (Business Monitor International 2008).
Thus, it will be important to focus on the changing preferences of the customers towards food products, particularly the health aspect of the menu. At the same time, it is important to consider that majority of the foreign visitors come from the Mainland, China, that’s why it is important to focus on their demand. Chinese customers are considered as price sensitive consumer, because they are spending more in shopping. In 2001, the meal outside hotel is considered as the third highest spending percentage of the tourists in Hong Kong, garnering a total of 13 (Zhang & Pine, 2005, p. 74).
Marketing Objectives
To focus on the different important aspect of the restaurants, pertaining on the people, place, promotion, product and price, in order to cater the demand, perspective and preferences of the local residents and foreign visitors, particularly those from mainland, China, by offering wide variety of products. At the same time, incorporating the rich culture and tradition of Hong Kong in the entire management and marketing activities of the restaurants, in order to give the locals, the familiar and home feeling, at the same time, give those foreigners with different and exceptional experience.
4 P’s Strategies
Product
It is important to consider that more and more consumers today are becoming aware of the health aspect of food. Currently, there are different fast-food chains or brand, particularly in the US, such as McDonald’s and Burger King that are facing difficulties due to the threats of the said trend or change in the preference of the customers. Thus, because of the said situation, it will be important for the restaurant to offer, healthier food. It will also be important to focus on offering local dishes, and continue the process of product innovation in order to maintain the interests and loyalty of the consumers towards the restaurant.
Price
Like what have mentioned in the first part of the paper, it will be important for the company to stay its strategy in offering products or food in their menu with low or reasonable price, this is to target the majority of the foreign visitors from mainland, China. However, it is still important to focus on the quality or taste of the products. On the other hand, it is also important for the restaurants to maintain the balance between their offerings for low-priced foods with the premium products. This is important, because there are some customers who are willing to pay for high price, in exchange for high quality of product and services. This can also help the restaurants to capture the attention of those high-end consumers, particularly those foreigners from Europe and the US. Aside from that, the said strategy is important because of the fact that business travel is one of the most famous reasons in traveling to Hong Kong.
Place
Currently, the locations of the restaurants can be found in mixed use district, business core, shopping centers, industrial areas, and private and public housing estates. The said strategy must be continued in order to enhance the awareness of the customers regarding the brand. In terms of the restaurants, it has an average of 300 sq. m. and is designed with a modern as well as warm ambiance in order to maximize the flow of the customers.
Promotion
Currently, the commitment of the restaurants focuses on Achieving A Hundred Points of Excellence. The said strategy must be continued in order to maintain the competitive advantage of the company. At the same time, because of the fact that Hong Kong had been colonized by British, it will be important for the restaurants to launched different advertisement in two different languages: English and Chinese. This is to ensure that their message can be understood by everyone.
In general, the wide varieties of food offerings, with varieties of prices to cater to those price sensitive and premium customers, together with the place, that can be seen everywhere, and will help to offer comfortable ambience can help the restaurants to launch its promotional activities. At the same time, the quality of the service, particularly the knowledge and skills of the restaurant’s employee and staff; together with the application of Information Technology or IT can help to ensure the success of the restaurants.
Implementation, Evaluation and Control Plan
What
Who
When
How
1. Operational Plan
a. Plans for establishment of organizational size, structure and staffing
Upper Level Management
January 2009
Analyze the different factors and aspects that can be connected to the size, structure and staffing of the organization, pertaining on the overall marketing strategy.
b. Plans for deployment and investment of asset
Upper Level Manager
February 2009
Focus on the overall financial need of the strategy, by analyzing the current asset and investment of the restaurant.
c. Plans for promotion, pricing, and marketing of the products and services
Marketing Manager
March 2009
Analyze the different external factors, particularly the trends in the customers/consumers’ needs and demands towards the food industry. At the same time, analyze the current internal strength of the company, and then integrate, in order to come up with the final strategy.
d. Plans for management development and training
Human Resource Manager
April 2009
Align or match the overall marketing and organizational strategy with the needs or demand for human resource.
e. Plans for raising capital
Financial Manager
April 2009
Focus on the financial needs of the entire strategy. This can be done by the process of analyzing the current financial capability of the restaurants and other organizations or individuals that are connected.
2. Evaluating and Control
a. Evaluation
Marketing Manager
May 2009 – Onwards
This can be done in three methods: monthly, quarterly and yearly. This will include meetings and presentations, together with formal documentation.
b. Budget
Financial Manager
May 2009 – Onwards
Budgets will cover the different functional areas: marketing budget, production budget, technology budget and other related aspects. It must be easy and easy to understand and must be applied in areas that are needed to be monitored.
c. Contingency Plan
Upper Level Management
May 2009 – Onwards
Must be done by the upper level management by providing a direction to the operating personnel in case some unplanned events and scenarios have occurred.
References
Business Monitor International 2008, The Hong Kong Tourism Report 2008, viewed 20 October 2008, <http://www.businessmonitor.com/tourism/ hongkong.html>
Café De Coral 2005, Strategic Business Units, viewed 15 January 2009, < http://www.cafedecoral.com/web/sbu/sbu1_2.htm>
Lan, L & Khan, M A 1995, Hong Kong’s Fast-Food Industry: An Overview, viewed 15 January 2009, <http://www.allbusiness.com/accommodation-food-services/511425-1.html>
Ip 2007, Press Release: Employment Situation of Women in Hong Kong, viewed 15 January 2009, <http://www.info.gov.hk/gia/general/200703/07 /P200703070153.htm>
Zhang, H Q, Pine R & Lam, T 2005, Tourism and Hotel Development in China: From Political to Economic Success, Haworth Press
12Manage 2009, Marketing Mix (4Ps), viewed 15 January 2009, <http://www .12manage.com/methods_marketing_mix.html>
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