A New Marketing Plan For

A New Marketing Plan for The Spaghetti House

• Strategic Plan • Marketing Plan

We sell attitude, not dishes alone. Spaghetti House is a house full of Italian culture. It represents a pure and localized Italian thinking. We respect you, welcome you and serve you with the finest pasta dishes.

Strategic Plan ------Mission Objective Situation Analysis : • • • •

Market Scale Market Attractiveness Drive and Trend Key Successful Factor

Mission & Objectives • For financial related objective: • Increase 10% sales

• For non-financial related objectives: • Increase brand awareness with new strong positioning in terms of mind share from lower-than-10-per-cent to a rate over 30 per cent by 2010

• Increase market share from 0.7 per cent at the beginning of 2009 to 1 per cent by 2010 (1% market

Situation Analysis • Market Scale

From Food and Environmental Hygiene Department - General competitor : 10994 - 1.1 % Growth rate from 2006

Market Scale (Cont.)

- Increase of 13.1%

- Non-Chinese Rest. = The Spaghetti House

Private consumption expenditure

Industry Attractiveness • Fierce competition with attractive profit (HK$7.9 billion per year) is concluded. • Hong Kong food industry enjoys unrivaled industry aggregation as Hong Kong Paradise. • Target market spends a high proportion of their expenditure on food compared to the rest.

Drive and trend of catering industry in Hong Kong (Cont.) • • • •

Cut their spending on daily basis Bargaining power of buyers: High Bargaining power of suppliers: Strong Food price is unstable, risky

Drive and trend of catering industry in Hong Kong • Customization • Brain-drain of frontline staff • Word-of-mouth plays a cement role than ever.

Key successful factor • Differentiation of core products – food and service – is vital to every restaurant to survive. • Location is then an important consideration of consumers to purchase. • Word of mouth among peers and internet would put consumer into thrill to purchase. That means media exposure is critical.

Marketing Plan SWOT Analysis Strength • Romantic Décor

Weakness • The Expensive Price • The Single Distribution Channels • The Lack of Awareness and Confused Positioning

Opportunity • The Westernization Image Become Strong • Increasing in Customers • The Stimuli From Financial Tsunami Threat • Any Mistake in Financial Tsunami • The Competitive Catering Industry

• Segmentation and Target market • young lover, financially capable middle class who favor Italian romance atmosphere.

Positioning Enhancement

Positioning Enhancement • We sell attitude, not dishes alone. • Spaghetti House is a house full of Italian culture. It represents a pure and localized Italian thinking. • We respect you, welcome you and serve you with the finest pasta dishes.

Marketing Objectives Marketing Objectives • For non-financial related objectives: • Over 60 per cent of seat is occupied in normal hours • Over 90 per cent of seat is occupied in festivals period. • Certainly, we aim to achieve organizational objectives aforementioned as well

Marketing Strategies Product • product development strategy. Research and Development (R&D) Promotion • Advertising and direct marketing. Price • Skimming pricing Place • package of pasta

Marketing Tactics • •

In the first stage – Indirect promotion ’Taste Pasta’’,

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In the second stage – Public Relations ‘’Pasta Fest’’.

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In the third stage – Direct Marketing Special VIP program for SME

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In the final stage – Sales promotion Fun-loving and extrovert Foreign Chefs make fine pasta dishes in store when customer orders.

Budgeting HKD as the unit

Contingency Plan •

We would continue present operational strategy if suggested tactics do not work.

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On the contrary, it is wise for board of director of The Spaghetti House to prepare Recruitment of more staff Better supply chain efficiency Stronger management skill to remain service standard Closer look into customer’s feedback

Evaluation, Monitor and Control • Supervisor team • Completed report to top management per month • Re-analyze catering market per year

Thank You