Mkt for Cafe de Coral free essay sample

This report will discuss the marketing plan of Cafe de Coral. This report will have four major components namely marketing strategy, coordination of the marketing mix, action plan, and control. Under the marketing strategy are the four essential elements of the marketing mix such as product, pricing, place, and promotion, each of which will include a detailed discussion on the relevant strategies. Cafe de Coral is the leading fast food brand in Hong Kong. With its average of 300,000 consumers being served daily, Cafe de Coral is undoubtedly the undisputed leading fast food restaurant in Hong Kong. The company attributes its becoming the most successful fast food brand in Hong Kong to its broad experience from being a part of the food and catering industry for 34 years. Since Cafe de Coral has been in the business for such a long time, its proven experience has made Cafe de Coral one of leading companies in Asia. Cafe de Coral is a fast food enterprise that is becoming more and more global. Since Cafe de Coral is the largest restaurant chain throughout the world, it is not surprising that Cafe de Coral is listed in the Hong Kong stock exchange. Cafe de Coral has various business operations and has even managed global expansion. The major business operations of Cafe de Coral include fast food restaurants, institutional catering, specialty restaurants, food manufacturing and distribution, and other international food and beverage enterprises. Since the loyal consumers of fast food restaurants are developing perceptions of fast food outlets because of communicating with other consumers, being exposed to promotions and advertising campaigns, and personally experiencing fast food service in the past, and other sources, international fast food consumption is increasingly becoming popular in the market. In the food service business, it is recognised that marketing strategies should understand the perceptions and preferences of the consumers for quick service restaurants and how these vary across segments. Marketing Strategy With the wide variety of fast food restaurants, the promotional campaigns of Cafe de Coral must develop a perception among people that Cafe de Coral are the best fast food restaurants in Hong Kong and in other countries. The positioning of Cafe de Coral can be enhanced and changed by means of careful and selective promotional campaigns. Cafe de Coral serves various fast foods, mostly served sizzling on a single-serving iron skillet. Cafe de Coral restaurants are fast food versions of favourite Chinese dishes served mostly in high-end restaurants and luxurious hotels. This seems to be though for a fast food chain like Cafe de Coral. On the other hand, technological developments have provided numerous opportunities for the food retailing industry in Hong Kong and elsewhere. Having said this, there is no reason for Cafe de Coral not to consider technology in its marketing efforts. Since the goal is to commercially diversify the market, Cafe de Coral should integrate social network advertising to increase its web presence. There are many ways by which Cafe de Coral may be able to utilize social media marketing in its operation. This may be a marketing strategy that could be launched in 2013 and beyond. Cafe de Coral has to communicate with the different markets that they operate in, inside and outside Hong Kong. Again, the operation is geographically disseminated that it would be impracticable for the business to do such at the individual level. Social marketing medium can therefore provide consumers with more insight about the business while also engaging them in the contents of the site. Cafe de Coral can easily target large portion of the consumer market through social networking sites. The plan is to create value for the consumers through communicating with them through the social networking medium. Social media is considered as new-age platforms where connecting, sharing, communicating, and building relationships are possible. Social media constantly evolves, and it now includes blog and social networking sites such as Facebook, LinkedIn, and Twitter. Capitalizing on the marketing capabilities of the social media is the current wave. These platforms emerged as the leading and the most cost-effective way of promoting brands, leading to greater brand awareness by means of word-of-mouth marketing among others. There will be two components that will be integrated for social networking marketing namely loyalty programme and coupons and discounts. To illustrate: Product strategy Cafe de Coral offers various food selections. The menu of Cafe de Coral is especially designed in order to meet the tastes and budgets of the onsumers. With its 100 items on the menu, Cafe de Coral indeed has a lot to offer. This wide range of food options is made for consumers looking for best-tasting food at affordable prices that comes with an enjoyable dining experience. The food items included on the menu are rotated on a regular basis so that the consumers would have various choices. The standard menus vary from Western cuisine to traditional Chinese dishe s. Cafe de Coral also introduces new products to their consumers regularly. Through social network marketing, new products will be launched to the public. Information on the new food products will be made public through the different social networking mediums. There are two ways by which the social media presence will be utilized. First is through online advertising and promotion including letting the consumers know of daily specials and meal packages and purchasing them through their loyalty cards. Second is through product value by letting the consumers the access to downloadable coupons and discounts by just visiting, liking, and interacting with others on the social networks. Cafe de Coral shall have a branding strategy that focuses on the emotion. This can be coupled with an exclusive loyalty programme. Issuing of loyalty cards could become a structured marketing initiative for Cafe de Coral which aims are rewarding and encouraging the Hong Kong consumers to do repeat purchases. The loyalty card will function as a credit and debit card as well as. People cannot underestimate the power of loyalty cards especially for the affluent consumers who would want to become ethical shoppers as well. Some consumers are not making a purchase for the sole purpose of purchasing. Sometimes, they purchase because of the advocacy behind such purchase. Cafe de Coral may au am at advocacy programmes including fundraising for a special cause. Pricing strategy At this point in time, the pricing strategy of Cafe de Coral is well-received by the food savvy public in Hong Kong, but of course, coupons and discounts will be welcome. In this way, Cafe de Coral can consider a dynamic pricing strategy which Strauss and Frost (1999) noted as a way of diversifying the prices offered for the consumers. That is, the prices of the products can be offered at a lower price when they are loyalty card holders. The same goes if they have downloaded coupons and present them upon purchasing their order where discounted prices will be offered. Nagle and Holden (2000) said that price sensitivity will move along with the changing value effects of the products. This is more so when substitute to the products are known to the consumers. Cafe de Coral is at an advantage since the food products offered are relatively unique wherein there are little substitute to the wide range of products offered by Cafe de Coral. Basically, Cafe de Coral is currently price inelastic, resulting to not having to change prices due to the fluctuating demand. Prices of the new products will be made public through the social networking sites. Discounts will be offered at a specified period of time so that the Hong Kong consumers will be able to taste the new products at a lower launching price. There will be price- and discount-related campaigns like receiving 20% discount coupons for the first 100 visitors and likers of a Facebook campaign, for instance. Place strategy All of the Cafe de Coral restaurants are strategically located. This is done so in order to be easily accessible for its target markets and attract new consumers. Cafe de Coral restaurants can be found in various mixed use districts, business cores, shopping centres, industrial areas (public and private), and housing estates. The modern design and warm ambiance of the restaurants encourage the consumers to come back and attract new consumers. Thus, Cafe de Coral serves as a favourite meeting place for many people. Basically, Cafe de Coral’s social networking profiles will be the new distribution channel. The Internet will be the place where facilitation of purchase of products will take place. With the use of social networking sites at Cafe de Coral’s disposal, it will have greater capabilities of encouraging the locals to try out new meal offerings and to a wider audience. Promotion strategy Cafe de Coral has been committed to Achieving a Hundred Points of Excellence. This catch phrase is now commonly heard from and used by people. Effective advertising campaigns are launched continuously as a part of the on-going campaign of Cafe de Coral to strengthen the Brand. Through these advertisement campaigns, the brand image of Cafe de Coral has been further improved because the campaigns have resulted in the positioning of Cafe de Coral as not only the place for best tasting and affordable food but as a popular meeting place of different people as well. With respect to social networking marketing, there are specific issues that Cafe de Coral will have to deal with, and these points to creating awareness about the social networking presence, loyalty programme, and downloadable discounts and coupons. There should be offline and online strategies. Offline promotional strategies will include different suggestive navigational tools. Some of these are â€Å"Visit Cafe de Coral’s Facebook/Twitter/Youtube page for more details†¦. † or â€Å"Check out our Facebook/Twitter/Youtube page for more information†¦Ã¢â‚¬  In this way, the consumers will be encouraged to visit and explore the web presence of the firm. Another way of showing potential consumers with the new products at Cafe de Coral is through using direct marketing. Utilisation of virtual portals like train stations, sides of the buses, airport walls and hallways, and leisure parks and gyms must be apparent, announcing the web presence and how to avail the loyalty cards unique to Cafe de Coral as well as coupons and discounts. There are several online promotional strategies that can be utilised in creating consumer awareness. Generating leads and sending potential consumers with direct mails are advisable. Cafe de Coral may easily generate a response through this strategy. The second is through hiring Internet spaces. The third is through online collaborations or by teaming up with the affiliated companies like hotels. Coordination of 4Ps Understanding how the 4Ps interact would be very helpful for fast food restaurants in terms of targeting different segments for promoting fast food and enhancing or changing the perceptions of the consumers. This would result in a higher consumer demand for fast food restaurants. The marketing strategies of Cafe de Coral should reflect a sound understanding of the perceptions of the consumers for fast food restaurants. According to Parry (2004), strategic marketing management is a process that is driven by various fundamental decisions involving the synergism between the product, price, place, and promotion strategies unique to a business like Cafe de Coral. Cafe de Coral must know what matters and what might matter to potential consumers. Perhaps, one of this could be savings considering the very unstable economic conditions. Also, of those things that matter to the potential consumers, which Cafe de Coral should focus? Of course, the locals favour high quality foods and dining at an affordable price, and in accessible places. The social networking marketing strategy therefore can be considered as Cafe de Coral’s way of retaining the market more so because Hong Kong is increasingly becoming a breeding ground for new restaurants and with new concepts and themes. This strategy, including the loyalty programme and downloadable coupons and discounts, will definitely lead to the improvements of the performance and sustenance of the sales and profits. The marketing mix forms part of the relationship building that Cafe de Coral should strive at. Gummeson (2004) said that the strategy will contribute to the return on relationships in the long run wherein the foundation is the establishment and maintenance of consumer relationships at the individual level. The strategy could also mean the changing and complications needs for information, which should come handy. Cafe de Coral invests on its products, processes, and people, offering them at the highest possible quality level. The coordination of these factors is the one delivering value through relation-based sales hence this is the element that will make a difference for Cafe de Coral. The goal is through social media marketing Cafe de Coral would be able to build relationships with the right customers with the right products, with the right prices, at the right places, and through the right channels. Action Plan The action plan for the social marketing strategy will be divided into two phases. The first is through creating the social media presence and second is through promoting the social media presence. Spontaneously, the loyalty programme will be detailed and the downloadable coupons and discounts will be carefully planned. The social media presence will provide information to the consuming locals. It will also have an indirect commercial function since transactions will not be made through the sites, but the sites will have downloadable coupons and discounts that can be directly used when they purchase at any Cafe de Coral store. It would be best for Cafe de Coral to hire an expert on social media marketing. Social media marketing experts will develop highly customized social media marketing campaigns for Cafe de Coral encompassing different social media channels. The experts will devise the social media marketing plan after a thorough business needs assessment of Cafe de Coral. This will be followed by implementing the social media marketing strategies in lieu with the results of the assessment. This can result in highly targeted market that will have retained interest in the brand. In the second phase, word of mouth is the most effective way to promote the social media presence. However, Cafe de Coral will utilise various website promotional strategies as noted above. Budget Since the objective of having a social media presence is long-term, free online social media marketing services must be avoided. While the creation of social media presence is free of charge, hiring an expert to do that for the firm and maintaining the social presence may be costly. However, Cafe de Coral will not spend more than HK$50,000 for such on a yearly basis, so this should be a conservative estimate. Implementation The first phase of the action plan will take about 3 months – 1 month for the actual creation of the social media presence and 2 months for pilot testing, analysing, and implementing it. After the social media presence has been launched, it can now be promoted through the activities discussed.