759 Marketing Plan
Marketing Management Assignment 2
Marketing Plan of 759 Store
- Executive summary
759 Store is a Hong Kong chain store which sells groceries and snacks.
759 Store aims to bring the high-quality lifestyle and the consumption style from Japan to HK, expecting that the people who visit the shop can enjoy the modern Japanese shopping environment and atmosphere. Moreover, so as to bringing in the good service as well as more choices to our Hong Kong customers, 759 Store always searching worldwide for the latest and trendy products to our customers, these products searching team is even reaching Europe area now, and we also called it ‘Direct Import’.
Beside of appreciating the effort that 759 Store have paid on the products, we also know that the founder of company, he does not negotiate to the price collusion which is happening in the current market – many medias and journalists has reported that most of the supermarket they have the similar or the same marked price and discount on almost every products, which is not fair to the customer, and it is not how should a health market work. However, 759 Store they insist not to follow the hidden rules in the market, they have their products directly import from the origins, so they will have a lower cost and selling items with a lower marked price, and customers can get more benefit from it. Moreover, 759 Store has their membership system, people who applied their membership will reserve a lower price for most of the products, it attracts more people to buy and it can affect the current atmosphere in the market, and favour to the buyers. But unluckily, due to the bad culture in Hong Kong, those big supermarkets will not change their selling method, and keep stating the same selling price, to make the most profit from customers, and 759 Store will be the only representative chain store to against with them.
Although 759 is famous in Hong Kong now, we also want it famous in the international and bring the high-quality lifestyle and the consumption model in Japan residential area that the resident can buy the various products from other country such as South Korean or Japan.
Have the ability to compete with large supermarkets, the product of them is always higher that 759 Store but they sell the similar products. So the culture of 759 Store is selling the nominal product from other country for the lower-priced to satisfy the lower purchasing power residents.
- Environment analysis
759 Store in 2009 because of the business operators blocked, then find another way of development, buy snacks saw a good response, so vigorously. The initial sale of goods to Hong Kong and Japan drinks, snacks based, then by expanding too quickly, causing pressure the Hong Kong agent, so the goods directly to the manufacturer, the results of a blessing in disguise, to develop more speed, and toward 300 shops the ultimate goal. Only imported products, a small amount after further processing, packaging, sale immediately after the fare increase. Just expand fast enough, more than enough to goods, the amount will be able to lower the costs of the advantages of fast, the price is low enough, naturally attract consumers to buy, cash flow fast naturally achieve healthy results.
- The Marketing Environment
Competitive forces
Guest higher prices FOUR SEAS (374) snacks Story, Aji Ichiban, etc., small retailers lost to competition than enough money for food at home were forced to turn preferential market sales of its products, Aji Ichiban on the higher price of the main market, as due to lack of capital to small shops close down quietly. By reducing competition, virtually forming new snack hegemony. But this rapid development model to survive, it will always be the bottleneck.
Economic forces
2012 fiscal year, 71 branches, 13 years, 14 years and 15 years increased to 134, 192 and 249. That more and more stores, but do not attempt to eat Haodi. Year 2012, Ashin Uk revenue of 2.4 billion, operating profit of 3.1 million yuan. In 2013, revenue increased to 810 million yuan, profit of 1,162 million, or 100-based business mosquito, before deducting interest and taxes, profit is only 1.43 yuan.
2014 and 2015 annual revenue increasing by 77% and 48%, operating profit growth of 34% and 3.4 times, respectively, in each shop but apart from the actual earn 260,000 and 270,000 per year. Mid-2016, then increased to 281 branches, each shop half earn less than $ 80,000 a month that is only earned 13,000 yuan. (759 Store Annual report)
Political forces
759 Store all bags are required to pay 5 cents, paper and non-woven bags must pay; we do not have any immunity. A plastic bag fee will receive a letter estates donated to voluntary organizations.