ChoColife Marketing Plan for Xmas 2012 Happy New Year 2013

We will conduct a series of marketing and promotional programs in Christmas 2012 and Happy New Year 2013, such as:  Equip new machine, serve new product to serve in this Christmas, crea[r]

II. Situation Analysis

1 Market Summary 1

a. Market Demographics 2

b. Market Needs 2

c. Market Trends 3

d. Market Growth 4

2 SWOT Analysis a. Strengths 4

b. Weaknesses 5

c. Opportunities 5

d. Threats 5

3 Competition 6

Service Offering 6

Keys to Success 6

Critical Issues 6

III. Marketing Strategy 1. Mission 7

2. Marketing and Financial Objectives 7

3. Target Marketing 7

4. Positioning 7

5. Strategy Pyramids 8

6. Marketing Mix 9

7. Marketing Research 10

IV. Financials, Budgets, and Forecasts 1 Break-even Analysis 11

2 Sales Forecast 12

3 Expense Forecast 12

1 Implementation Milestones 13

2 Marketing organization 14

3 Contingency planning 14

However, though there are many modern coffee shops for young people, there is noshop just serving cookies made from chocolate and cocoa in Go Vap district Most ofthem focus only on fruit juice, milk tea, coffee or variations of coffee.

Therefore, in June 22th 2012, ChoColife Take Away was opened by a group of students(Duy Anh – Thuy Quynh – Tien Thinh) in 820 Le Duc Tho, Go Vap District, HCMC.ChoColife provide customers with the most exquisite feeling of Chocolate and Cocoa.ChoColife always aim to bring our customers the sense of physical and spiritual valuesattached to each product We constantly strive to bring to our clients enjoy a moderndynamic part of life along with the unique Italian culture

During the Christmas 2012 and Happy New Year 2013, ChoColife’s marketingobjectives are to expand the market, attract more customers by 3 times and increasesales by 2 times We also plan to invest 10% of estimated sales (7,000,000 VND) formarketing programs to achieve financial and market goals

To achieve profitability and market expansion as set out, we intend to conduct the series

of marketing and promotional activities such as flyers, ads on social networks(Facebook, Twitter…) …We hope that this plan will be a big push for open the 2ndshop in Go Vap District for 2013-2014

II. Situation Analysis

After 6 months of operation, ChoColife has entered the 2nd phase - product quality andcustomer service improvement and stability to increases sales ChoColife realizes thatmarketing is now very critical to increase the number of customers, make a high profit

Especially, Christmas 2012 and Happy New Year 2013 is not only a chance but also anexperimental step in expanding market, accessing to diverse customers and increasingprofits for ChoColife We are offering premium drinks with a suitable price for majority

of the population in Go Vap District and meet the unique tastes, trendy for young peopleaged 12-30

We possess good information about our market and know a great deal about thecommon attributes of our most prized and loyal customers We will leverage thisinformation to better understand who we serve, their specific needs, and how we canbetter communicate with them during Christmas 2012 and Happy New Year 2013

a. Market Demographics

XomMoi Market, Go Vap

District (including 2 parallel

Le DucTho and Thong Nhat

streets which intersect in Xom

Moi market)

There are 19 churches, 5

schools and 2 markets with a

population of 21,000 in a 2 km

radius.(Appendix-p16,17)

55% female, 45% male Like: new tastes and forms,

dynamic and youthful style take away

-143 ha geographic area is in

need of our products

The age from 10 to 30 Interest in health and product

qualityTotal targeted area population

Drink an average of 2-3 cups

of cookies per person perweek

b. Market Needs

- Selection: A wide choice with 7 flavor (Almond, Caramel, Cinnamon, Choco

Milano, Irish cream, Hazelnut, Tiramisu) and 7 taste (Black Current, Blue Berry,Blue Curacao, Kiwi, Mint, Green Apple, Raspberry)

- Accessibility: Customer observes directly the process of making products Time

serving less than 3min/product Opening from 8am to 10pm on weekdays andfrom 9a.m to 24p.m on occasion

- Customer service: Customers will be completely satisfied with the service policy

of the shop

- Competitive pricing: This is ChoColife‘s competitive advantage The price are

suitable for major of population (14 000 - 22 000 VND) All products/serviceswill be competitively priced relative to the Comparable high-end coffee shop

c. Market Trends

Recently, the number of carbonated drinks is declining than the number of productsderived from nature Therefore, it is considered an advantage in proactive andapproaching the trend for ChoColife Besides, young people want to try on new thingsbut they still concern with the value of health ChoColife’s selected varied menu, which

is no gas, less fat and sweet, will be suitable for trend

- Food quality: The preference for high-quality ingredients is increasing as

customers are learning to appreciate the qualitative differences

- Presentation/appearance: As presentation of an element of the culinary

experience becomes more pervasive They like combination with many catching accessories with the criteria: Each product is the work of art

eye Health consciousness: Customers increasingly interested in health and smarter

in consume Therefore, the priority of using natural product is the current trend

- Selection: People are demanding a larger selection; they are no longer accepting

a limited menu

d. Market Growth

Previously Vietnam carbonated beverage market is considered as the most attractiveregion in Southeast Asia with the billions of per year However, since 2010, thebeverage derived from nature and no gas strongly increases This change may be due to

a few different factors Firstly, it can be drinks conscious According torecommendation from nutrient experts, carbonated drinks often related to diseases such

as obesity, impaired nutrition, osteoporosis Therefore, customers have turned intousing the natural origin products Another factor is that foreign culture The youngpeople are influenced to Western style and culture, so they are excited to enjoy theirproducts

Catholic Product:

 Products are new to Xom Moi area  no direct competitors

 Products are natural origin, food safety The raw materials are supplied byprestige supplier

 Diversity with more than 20 new flavors to provide many choices forcustomers

 Flexible price from 14,000-22,000 VND

 Our products are made quickly within 3 minutes with visual processing to customer trust in the quality of the product

- Staffs:

 Being family members, friends, so they are enthusiastic and responsible

 Workforce: young, creative, dynamic and understand customers’ tastes

- ChoColife has a good relationship with suppliers buying cheap raw materials and having stable sources

b Weaknesses

- Small scale operation  the shop has not any branches and reputation in themarketCustomer is limited in this area, revenue is not high

- The shop’s space is small

- Small capital  limit on marketing budget

- There are just 3 blenders  not enough capacity in rush hours

- New product is unfamiliar thing to customers

- Most of staff is students, so their work time is limited and changeable

c Opportunities

- HCM weather has a long dry, hot season demand is high and regular

- The youth always want to try on new products, fashion, trendy

- Customers, nowadays, are interested in their health, food safety  using natural origin product is increasing highly

- Christmas holiday is held gorgeously attract many visitors

- Having many indirect competitors around (coffee, milk tea, fruit juice…)

- In the rainy season, the consumption of product is low

- At the present, the economy is down people tends to reduce spending

- In the future, there will have more competitors who can provide the same productwith same business model

 Competitive advantage

- Place: Xom Moi area is famous for a series of caves and street decorationsbeautifully in Christmas, where attracts a record number of visitors with morethan 30,000 visitors in 2011 (except resident) in the period from 15/12/2010-15/1/2011 This is considered as a huge competitive advantage of ChoColife atChristmas 2012

- Direct competitor: No

- Productivity: The serving ability is up to 180cups/day, with 40 cups in rushhours Equipment: modern blender system, large capacity, and added 2 blendersand 1 Capuchin machine

3 Competition:

At present, ChoColife has no direct competitor However, we must face to many indirectcompetitor who serve drinks such as milk tea, beverage, coffee, sugarcane juice, fruitjuice This is a big issue to have to compete fiercely with their flexibility and low pricefor us

Serving offering:

ChoColife has created fantastic taste with chocolate and Cocoa that are differentiated tocompetitors in local The shop serves fresh and exquisite drinks that customers canenjoy the quality as well as services we provide The following are characteristics of theproduct:

- All ingredients are imported and controlled tightly

- The products have many flavors

- Products presented beautiful, attractive, and creative

Besides, we also have a good service with the staff youthful, enthusiastic, always trying

to satisfy customers and create a welcoming environment

Keys to success:

ChoColife will take advantage of its location in Christmas season

- There are the crowded area with many churches and schools

- Attract more customers by public activities (group dance; giving sample, giftcards…)

- Make customers feel excited and satisfied with our promotion programs

III Marketing strategy

ChoColife evaluate Christmas 2012 and New Year 2013 season is an opportunity toexpand the market and create a reputation for our brand Therefore, we will conduct the

series of marketing and promotional activities during the period of 15/12-15/1/2013.

1 Mission

ChoColife’s mission is to provide the customers the best products, and give them thepleasure when enjoying and involving in Christmas atmosphere We exist to bring thecustomer new experience Product and service quality will exceed the expectations ofour customers

2 Marketing Objectives

a Maintain the existing customers

b Raise the amount of customer by 3 times

c Expanding the reputation of ChoColife to open second shop in 2013-2014

 Financial Objectives

a Revenue: Increase sales by 2 times (equivalent to VND 72,000,000 for theperiod of 15/12/2012 to 15/01/2013)

b Cost: Maintain the variable costs associated with food production

c Promotion: Take up the marketing budget 10% of sales; specially, priority in usenon-cash methods

d Profit: 40% sale

3 Target Marketing

ChoColife define target marketing are:

a Individuals (The youth): students, local office workers: tend to take away

b Groups: a group of people, either friend or family: tend to enjoy at the shop

c Visitors: couples, groups of friends from other areas: tend to take away or at shop

4 Positioning:

ChoColife serve mainly the chocolate and Cocoa products ChoColife will position itself

as an upscale, reasonably priced and trendy style

ChoColife’s positioning will leverage their competitive edge:

- Product: A diversity choices The product will have the freshest ingredients.The product will also be developed to enhance presentation, everything will beaesthetically pleasing

- Customer Service: make sure that customer come the shop with satisfaction bycustomer service

1 Employees are trained to connect with customers and focus on

Strategy: The ChoColife’s goals are to retain existing customers, attract new customers,

and increase double the revenue. The marketing strategy will create customer awarenessregarding their services offered, develop that customer base, and work toward buildingcustomer loyalty and referrals

Tactics: The message of ChoColife is that ChoColife offers the freshest, most creative,

health conscious, reasonably priced, cookies shop in Xom Moi Market and related areas.This message will be communicated through a variety of methods

1 Facebook, Twitter: The information on promotions, new products,and game are conducted through Facebook in order to connect tocustomers effectively Especially during the Christmas season, this

is the least expensive advertising channels to store

2 Word – of – mouth

3 Flyer

Program:

- We will conduct a series of marketing and promotional programs in Christmas

2012 and Happy New Year 2013, such as:

 Equip new machine, serve new product to serve in this Christmas,create Christmas atmosphere in the shop, and give small gifts (souvenirs)for customers…

- When carrying out this program, we planed to spend a budget of 7,000,000VND(6,836,000 VND) in 4 weeks (15/12/2012-15/1/2013)

- Estimated revenue reach 72,000,000VND and an expected customer return afterholiday by 30%

6 Marketing Mix

- Product: In this season, ChoColife will launch:

 4 new products: Macadamia chocolate, Matcha ice blended, Mexican hotchocolate, Pretty – Nutty Cocoa

 4 special products served the Christmas holiday: Couple Cookies, CoupleChocolate IB, Couple Diamond White Chocolate, and CoupleCappuccino

 Added 5 flavor: C’oconut, C’herry, Desert Pear, Hibuscus, and A’cai

- Place: Our locations are extremely conducive for individuals that are on the go or

contemplate the street ChoColife conduct direct channel to control and improveeasily In addition, we also carry out home delivery program to make customerscloser and satisfy their “laziness needs”

Home delivery program:

 In a radius of 500m / free for orders of ≥2

 In a radius of 2000m / take 10 000 VND for orders of ≥2

- Price:

Following the discount program:

 For children (under 10 years): 10%/product

 For Couple products: 10%/bill

 For groups (3-5 persons): 10%/bill

 For groups (6-10 persons): 20%/bill

 Organizing “Ấn tượng cùng ChoColife” contest on Christmas 2012

 Take photos directly for customers on Christmas 2012

 Issuing 4000 leaflets & same price vouchers

 Releasing 1000 loyalty cards for customers

 Giving 200 small gifts in 6 days, 20 small gifts/day for first 20 customers

 Christmas hats for staffs

 Shop decoration

7 Marketing Research

During the initial phases of the marketing plan development, 2 groups (include 6people) were held to gain insight into a variety of patrons of ChoColife These provideduseful insight into the customer’s preferences and tastes on Christmas 2012 and HappyNew Year 2013

An additional source of market research that is ChoColife has a GENIE notebookincluding several open ended questions that allows the customer to freely suggest whatthey expect ChoColife will do on Christmas 2012

Moreover, ChoColife also conduct Customer Survey (Appendix- p18) for who enjoycookies at shop (Appendix) then we statistic the activities that customer interests themost and perform

Beside, through Facebook and Email, ChoColife also post and send the interesting test

to find out the preferences and taste of customers in the Christmas 2012, and attractmore potential customers

The last source of market research is competitive analysis/appreciation ChoColife willcollect information from competitor by continually note nearby coffee shops, pearl milktea shops to get timely information regarding other competitor activities