1. Business Concept:
Souvenir Shop at Hotel X
Group Members:
Chan Ching Wa 11379593D
Chan Yan Ying 11103641D
Chan Yun Tao 11178264D
Cheng Hei Man Maisie 11062007D
Lai Wai Chung 11212018D
Yeung Shuk Fong 11049554D
2. Objectives
To analyze the environmental trends which may
impact the business
To summarize the external opportunities and
threats identified
To analyze current and future competitors
To outline the specific marketing objectives to be
achieved
3. Objectives
To analyze the target market
To describe the marketing mix strategies
To provide an implementation milestone
To prepare a marketing budget
To provide marketing controls
6. Demographic Trends
Hotel in-house guests
Leisure tourists – 51%
Business travellers – 36%
Main purpose of trip
Leisure tourists
Busniess
Travellers
Others
7. Demographic Trends
Gender Percentage
Male
Female
63%
37%
Age Percentage
Above 55 11%
46-55 22%
36-45 29%
26-35 33%
18-25 6%
Below 18 0%
Marital Status Percentage
Single 34%
Married 57%
8. Demographic Trends
Education Level Percentage
College/University 59%
Postgraduate 32%
Middle/High School 8%
Primary or below 1%
Country of Residence:
Top three – Australia, USA, China
Nationality:
Top three – China, USA, Australia
9. Economic Trends
„World Economic Situation and Prospects 2012‟
published by the United Nations
Another major downturn
Companies cut costs (ie: business trips)
Survey conducted by Market Matrix
Comparatively less effect on the spending of luxury
travellers
10. Ecological Trends
environmentally-
Growing concern on being
friendly
Pay more attention to environmental aspect of
products
Article - 'the environmental impact of the fashion
industry'
Fashion industry is detrimental to the environment
Eg: Diesel and Marc Jacobs
Promoting environmental awareness to combat
environmental issues
Increase demand for organic cotton
11. Technological Trends
Most hotels have their own website
Reservation Channel Used in Hotel X:
Channel Used Percentage
Hotel website 41%
Online booking website 40%
Travel agent 11%
Hotel reservation number 8%
Internet: an enormous potential to increase the
success for the souvenir shop
convenient platform
good promotional tool
12. Socio-cultural Trends
Report titled “Signaling Status with Luxury
Goods: The role of Brand Prominence”
consumers would pay a higher price for
materialistic products to show their status
obvious in China
According to Chinadaily
Chinese shoppers who purchase luxury goods
are aged between 18 to 34
Equals to 45% of total Chinese shoppers
14. Current Competitor
Important to understand where the customers
would go to buy a product
If in-house guests want to buy fashion
products, they would consider:
The brand
Where to get the products
Our current competitor would be:
a shop that sells similar products as Vivienne Tam’s
located near Hotel X
15. Current Competitor
Shanghai Tang near Canton Road in TST
Both the style and prices are very comparable
Feature similar sophistication and elegance to its
clothing
Comparison of price between Vivienne Tam and
Shanghai Tang
Items Price in Vivienne Price in Shanghai
Tam (HKD) Tang (HKD)
Tops 1,500-3,000 2,000-2,500
Pants 3,000-5,000 2,000-3,000
Jackets 6,000-25,000 5,000-15,000
Accessories 2,000-10,000 500-8,000
17. Future Competitor
Companies that will likely attract the target market
base to purchase their products in the future
DKNY: possible future competitor
Similarities in style as compared to Vivienne Tam
A DKNY retail shop located in Canton Road
Slightly lower price
Items Price in Vivienne Tam Price in DKNY (HKD)
(HKD)
Tops 1,500-3,000 500-2,500
Pants 3,000-5,000 500-3,000
Jackets 6,000-25,000 3,000-7,000
Accessories 2,000-15,000 100-3,000
19. External Opportunities
Profitable to open souvenir shop at Hotel X:
Increasing trend of purchasing luxury good to show of
the shoppers’ status
General Chinese shopper who purchases these luxury
products are of similar age to those who stay at the hotel
Majority of in-house guests are leisure travellers
Leisure tourists are less affected by economic downturn
Website as promotional tools
20. External Threats
Possible threats:
Counterfeiting of goods, especially among
luxury brands
Unrealistic to say that all leisure travellers are
less affected by economic downturns
Spending patterns of consumers always change
Competitors
22. Marketing Objectives
To create a distinctive souvenir shop that enhances
the overall experience of Hotel X
To create products that will be positioned as special
in the minds of customers
To increase the brand awareness of Hotel X
To increase the overall profitability of the hotel by
attracting more travellers to stay here due to the
unique souvenir shop offered
24. Market Segmentation
Demographic segmentation
Particularly on ethnicity and age
Majority of the in-house guests:
1. Young adults aged between 26 to 35 years
2. Chinese leisure travellers
Research proves that they are potential customers
25. Market Targeting
Target Market: In-house guests in Hotel X
Characteristics:
Luxury travellers
Leisure tourists
As proved in the external environmental trends
previously
26. Market Positioning
Does not focus on products
Focuses on what potential customers think of the
products and their perception towards them
Clothing brands are often unique to customers
For the products in Hotel X:
Apply the unique theme of Hotel X into Vivienne
Tam’s product design
Fresh and stylish image
Customers will find the products distinctive
29. Product
Anything that can be offered to the target market
for consumption
How the features satisfy the needs of the
customers
Proposed souvenir shop aims to sell a variety of
fashion products
Main focus: clothing line
Invite Vivienne Tam to be the main designer
30. Product
Demands and Needs of customers
“the rich are younger and are desperate to prove
their social status." Zhou said.
Fashion products designed by famous designers
such as Vivienne Tam would have a great potential
demand
Make our souvenir shop more distinct
31. Proposed Product
majority of in-house guests being leisure travellers
Casual wear
Keep the style of Vivienne Tam’s clothes
Change the colours and patterns to match with
Hotel‟s theme
1. Green and grey in colour
2. Plant patterns
3. Clothing line named “Unlike Any Others”
4. Organic fabric
32. Price
The amount of money that customers have to
pay for obtaining the product
Highly related to the spending power of the
customers
Value vs Price?
Proposed Price:
Follow the prices of Vivienne Tam’s actual
products
range from HKD 1,000 to HKD 3,000
33. Place
the location that provides products to the customers
should be highly accessible and convenient
Proposed Place:
few steps away from the concierge desk
High traffic area
Guests can physically try the clothes
34. Promotion
All the ways that marketers use to provide product
information and marketing message to potential
buyers
Target audience should be reached thoroughly
Proposed methods:
1. Homepage screen on in-room TV
2. Put an information stand near the actual shop
update information from time to time
3. Promotion from staff, especially Front Desk agents
38. Marketing Expenses
(January to June)
Expenses Jan Feb Mar Apr May Jun
Salaries $25,000 $30,000 $25,000 $25,000 $30,000 $25,000
Expenses
Promotion $5,000 $4,000 $4,000 $2,000 $2,000 $2,150
and
Advertising
Expenses
Delivery $2,000 $2,000 $2,000 $2,000 $2,000 $2,000
Expenses
Other $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
Expenses
Total $33,000 $37,000 $32,000 $30,000 $35,000 $30,150
Expenses
39. (July to December)
Expenses Jul Aug Sept Oct Nov Dec
Salary
Expenses
$35,000 $35,000
$25,000 $25,000 $25,000 $35,000
Promotion $2,150 $2,000 $2,000 $2,000 $3,500 $3,500
and
Advertising
Expenses
Delivery $2,000 $2,000 $2,000 $2,000 $2,000 $2,000
Expenses
Other $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
Expenses
Total $40,150 $40,000 $30,000 $30,000 $31,500 $41,500
Expenses
Marketing expenses for one year: HKD 410,300
40. Sales Forecast
(January to June)
Jan Feb Mar Apr May Jun
Unit Price $2,300 $2,300 $2,300 $2,300 $2,300 $2,300
Sales $100 $150 $120 $120 $130 $130
Volume
(units)
Total $230,000 $345,000 $276,000 $276,000 $299,000 $299,000
Sales
Volume
41. (July to December)
Jul Aug Sept Oct Nov Dec
Unit Price $2,300 $2,300 $2,300 $2,300 $2,300 $2,300
Sales $150 $200 $150 $150 $160 $200
Volume
(units)
Total $345,000 $460,000 $345,000 $345,000 $368,000 $460,000
Sales
Volume
43. Marketing Controls
extremely essential
Help to track the result
Monitor the development
Ensure the objectives are attained from time to time
4 steps in marketing control:
1. Setting goals
2. Measuring performance
3. Evaluating performance
4. Taking corrective measures to adjust performance
44. Marketing Controls
Control measures Performed by Date/frequency
Record sales volume Marketing Manager Monthly
(Measuring
performance)
Measure Financial Marketing Manager/ Quarterly/Annually
results against Accounting
expectations Department
(Measuring
performance)
Feedback from Staff in souvenir shop Monthly
employees
(Measuring
performance)
45. Carry out survey to Marketing Manager / Quarterly/Annually
determine customers‟ internal audit
satisfaction with the
product quality
(Evaluating
performance)
Diagnose any shortfall Internal audit As necessary
to identify the causes
and recommend
corrective measures
(Taking corrective
measures)
Take corrective action Marketing Manager As necessary
to adjust performance
eg. Reviewing the
plans with suppliers
(Taking corrective
measures)
