1. 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 ExclusiveSelectiveIntensive

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 Skimming Penetrative Buyer-basedCost-based Competitor- based

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 TargetMeansTiming High Income group Newspaper- Normal income group Television1800- 2000 People with a desire for multinational goods Television2000- 2200

28. Additional component of services marking ProcessPhysical Evidence People MIS orderWooden designExperienced Chief MIS orderSimple interior design Multi- national chief MIS orderDifferent styles of design -

29. Relationship Marketing Rebate Programme: - $5 cash coupon rebated 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

35. THE END