Marketing Plan: Café de Coral Group
This marketing plan is base on the quick service restaurant in Hong Kong market and the Café de Coral Group is focus in this plan. The Group was incorporated in October 1968, it is principally engaged in the food and catering industry as largest Chinese quick service restaurant group, maintaining a publicly recognized leadership position in the mass-market, quick service restaurant chain business, with vertical and horizontal diversification towards the food services, food processing and distribution, 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 Western food cultural in order to create the fashion of fast casual dining for health and nutritional lifestyle and provide a modern and warm experience for the customers.
2. Current Market Situation
3.1 Market Analysis
Café de Coral is a major Chinese quick service restaurant chain in Hong Kong. Following is an overview of the potential in the catering market and a specific review of the fast food restaurant market.
(a) Overview of the opportunities in the catering market
* Hong Kong probably is the most welcomed tourist attraction in Asia. By the forecast of the World Tourism Organization, Hong Kong is the fifth most frequently visited destination in the world, accounted for 57 million visitors 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 cuisine or catering services. * The persistence of inflation in Hong Kong may induce the demand of fast food instead of ordinary or luxury cuisines.
(b) Specific review of the fast food restaurant market
* There are 15,757 fast food shop establishments in Hong Kong, hiring for 41,319 people (InvestHK, 2012). * According to a survey sponsored by Mingpao and conducted by the Chinese University of Hong Kong(2011), Café de Coral acquired the titles of “most mentioned catering brand” and “most beloved catering brand” among the three major fast food chains (namely Café de Coral, Maxims and Fairwood). * Café de Coral is keeping expanding its market share in both catering market and specifically the fast food market. In year 2010, Café 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 Analysis
The 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 time of listing. In October 2001, it was appointed as one of the top 200 constituents of The Hang Seng Composite Index Series. After 42 years of development, it has become the market leader in the Hong Kong fast food industry with over 24.8% market share in the Quick Service Restaurant segment and 4.6% of the total dining out industry in Hong Kong. Its business operation spans over 2 continents with more 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 terms of market capitalization, turnover, profits, employees and net assets value. The Group’s market cap increased 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 Analysis
(a) Product Diversity
The Group’s menu regularly rotated to maintain a variety of choices and to meet the taste and budgets of customers. Products on menu range from...