Strategy Marketing

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Strategic Marketing Management

Project
2011-2012

Topic: Café de Coral

21905F/4B
Cheung Ho Tang
Lau Wing Sze
Leung Wing Kit
Ng Chi Man

Table of content
Cover Page
Content
Executive Summary
Introduction
Analysis of current market situation:
-PEST Analysis
-SWOT Analysis
-Michael’ Porter’s Five Forces Model
Business portfolio Analysis:
-GE Matrix
-Growth Strategies
-Positioning strategies
-Conclusion and recommendation

Executive Summary
We are going to do project in order to figure out problem found in the portfolio of Café De Carol. Since it shown that the growth rate of the sale and revenue in slow slope, so we try to research and plan strategy to help the company, by using the methodology in Strategic Marketing Management to solve. That would be involving GE matrix, Positioning, Growth Strategy. We aim for to find out the business strength level and business attractiveness level, also analyze which position and place is Café De Carol right in. On the other hand, figure out the point of difference with other competitors as well as give solve method to increase the attractiveness is more important. Introduction

Café de Coral Group (0341) is the largest publicly listed Chinese Fast Food restaurant group in the world with over 330 outlets in Asia Pacific region, and over 200 quick service restaurants in North America. Among a total of over 540 outlets, over 120 outlets and 75 outlets are operated under the household name of Café de Coral and New Asia Dabao, whereas over 200 outlets are operating under the leading brand of Manchu Wok and 20 outlets operating under the name of Oliver's Super Sandwiches. Specialty restaurants include Spaghetti House, Bravo le Café, Super Super Congee and Noodles, Bistro M and Ah Yee Leng Tong, as well as the well-established institutional catering business under the tradename of Asia Pacific Catering. PEST Analysis

Political
Import requirements for food are imposed for public health reasons. Certain high risk imported food like milk, milk products, frozen confections, meat and poultry are governed by subsidiary legislation of the Public Health and Municipal Services Ordinance. Import of game requires the prior permission of the Food and Environmental Hygiene Department and import of meat and poultry is confined to sources recognized by the Department. All catering service industry is regulated by the ordinance. Café De Carol would be facing difficulties when they are launching more branches in the future. Economic

Prosperity growth in Hong Kong economy ,the GDP and average income per person increase eventually, lead to increase the demand of catering service, People are more willing to dine out, so that stimulate the catering industry, increase revenue. Since, Hong Kong economy has improved, with inflation expected to shop rents and staff costs will rise sharply, bringing a strong new brand must reduce the "new" revenue, so that the net interest rate Café De Carol the next few years may not be able to eight to ten percent. Second, cost control, I believe there is still much room for improvement Café De Carol, because they operate in a high labour intensity. Also the price index affecting Café De Carol‘s business:

|Latest Statistics |

|Consumer Price Indices (October 2009 - September 2010 = 100) |Index for Oct |% change | | |2011 | | |Composite Consumer Price Index |107.9 |+5.8 | |Consumer Price Index (A) |108.7 |+5.2 | |Consumer Price Index (B) |107.5 |+6.0 |...
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