2011年3月28日星期一

Coffee Bar Marketing Plan
Colloquy Grog Shop


This sample marketing plan was downloaded from the following website and only for class discussion:
http://www.mplans.com/coffee_bar_marketing_plan


Executive Summary
Colloquy Grog Shop is a unique local bar/coffee/tapas house that provides a friendly, effective place where singles can meet. Colloquy Grog Shop is not your typical bar where people go to meet other singles. Colloquy Grog Shop has a unique service called the structure conversation system that is quite effective for allowing singles to meet each other and provide them with valuable insight into the other person through reflective conversation. The structured system provide an atmosphere that lowers inhibitions and breeds confidence allowing singles to meet other singles and gain insight into their personality by way of thoughtful discourse.
Meeting people is one of the largest hurdles 25-45 year old singles face. Colloquy Grog Shop provides this group with an effective solution to this problem.

Situation Analysis
Colloquy Grog Shop has just begun business, and marketing is essential to its success and future profitability. The bar offers a place for people to meet in a comfortable, person-meeting environment. The basic market need is place where singles can meet new similar people. Colloquy Grog Shop uses a sophisticated conversation system to enhance and facilitate singles meeting each other.
Market Summary
Colloquy Grog Shop possess good information about the market and knows a great deal about the common attributes of the prized and loyal customers. Colloquy Grog Shop will leverage this information to better understand who is served, their specific needs, and how the Grog Shop can better communicate with them.
Market Needs
Colloquy Grog Shop is a unique bar/coffee shop/tapas house that is organized to try to facilitate new friendships. The Grog Shop will offer a changing menu of tapas, microbrews, and assorted coffee drinks in conjunction with a structured conversation system. Colloquy Grog Shop seeks to fulfill the following benefits that are important to their customers.
• Selection: a creative choice of food and drink and a well-constructed structured conversation system.
• Accessibility: the patron will gain access to the Grog Shop with minimal waits and long business hours.
• Customer service: the customer is ALWAYS right.
• Competitive pricing: all products will be competitively priced relative to the competition.


Market Analysis
2001 2002 2003 2004 2005
Potential Customers Growth CAGR
Singles 9% 210,987 229,976 250,674 273,235 297,826 9.00%
Non-singles 7% 134,432 143,842 153,911 164,685 176,213 7.00%
Other 0% 0 0 0 0 0 0.00%
Total 8.23% 345,419 373,818 404,585 437,920 474,039 8.23%


Market Trends
The market trend is headed toward a more sophisticated customer. The restaurant/bar patron today is more sophisticated in a number of different ways:
• Food quality: the preference for higher-quality ingredients is being reinforced as customers are being subjected to an increasing number of options.
• Quality conversation: patrons are recognizing intellectual conversations can be had in bar settings and would prefer this over normal bar talk.
• Access to meeting people: people are tired of being single and are looking for ways to meet like-minded individuals.


Market Growth
In 1999, the global bar/restaurant market reached $24 billion dollars. Alcohol sales are estimated to grow by 9% for the next few years. This growth can be attributed to several factors. The first factor is American's reliance on alcohol for socialization. This factor is intuitive as alcohol breaks down social inhibitions.
Another factor is the trend to eat and drink outside of the home. This occurs as Americans work longer and longer hours during the week. Eating and drinking out is a convenience that many are willing to pay for. It also provides contact with more people.
SWOT Analysis
The following SWOT analysis captures key strengths and weaknesses within the company and describes the opportunities and threats facing the Grog Shop.
Strengths
• Strong relationships with third party vendors.
• Excellent staff who are highly trained and customer attentive.
• The structured conversation system.
Weaknesses
• The Grog Shop's limited brand equity.
• The struggle to continually have current and new conversation topics.
• A limited marketing budget to develop brand awareness.
Opportunities
• A growing market with a significant percentage of the of the target market still unaware of the Grog Shop.
• Increasing sales opportunities as people become familiar with the advantages of the structured conversation system.
• The ability to lower variable costs through efficiency gains.
Threats
• Competition from taverns.
• Competition from other sources of singles meeting events.
• A slump in the economy which will decrease discretionary spending.
Competition
The competition comes from several different sources.
Bars
There are many different types of bars or taverns. Some are better than others for meeting people, however, none of them have the business mission to bring together singles.
Coffee Shops
Coffee shops are typically an easy-going social setting that does lend itself for people to meet others. Conversations occur in part because of the historical underpinning of coffee houses, in part by virtue of the fact that the background music is not blaring. Coffee shops rarely have any type of organized activities to bring singles together.
Other Events/Activities Aimed at Bringing Together Singles.
One activity/phenomenon that has started in New York City and moved to a few other larger cities (not including Portland) is an activity that has a long rectangular table that always has one seat opposing the other. People sit down with females on one side and males on the other (this seating arrangement is for heterosexual gatherings) and will have a limited number of minutes (usually 10) to chat. Typically, conversations can be about anything, however you are not to reveal the job/profession that you are involved in, beyond that, anything is fair game. The table rotates and you end up speaking with a lot of different people. You then create a list of the top five that you would like to speak with again and if the matching person also has you on their list, phone numbers are released to the two people. Another activity might be some sort of outdoor activity like hiking or rafting and it is organized as a singles event. There are also other type of singles events, too numerous to mention. Lastly, there are resources like personal sections in local papers where people can post or respond to personal advertisements.
Every person has their own method of meeting people, some more useful than others. Colloquy Grog Shop predicts singles will abandon, or at least supplement, their current method of meeting people with the Grog Shop's activities as they are thoughtfully designed to achieve the goal of introducing like-minded individuals.
Product Offering
Colloquy Grog Shop sells the following:
Eight Microbrews on Draft and Bottled
Alcohol, specifically beer, is served for two reasons. One, alcohol reduces inhibition, making it easier for people to meet and interact with new people. Two, and more importantly, beer, particularly draft beer generates wonderful profits. Microbeers are chosen because microbrews are of higher quality than large production beers and our target segment prefers higher-quality beer.
Espresso, Cappuccino, Coffee, and other Coffee/Espresso drinks.
Coffee and coffee-related drinks are hugely popular, particularly in the Pacific Northwest. Northwesterners expect good coffee/espresso at most food/drink establishments and it is often associated with good conversation.
An Assortment of Tapas
Tapas are chosen because they can be relatively easy to make, the offerings can be changed frequently, and tapas are more community orientated, meaning they are designed for a table/multiple people to share. This reinforces Colloquy Grog Shop mission of bringing new people together.
The service offerings are based on a system for singles to meet new people. This is accomplished through a structured conversation system. The Grog Shop is divided into two sections, one smaller section of tables that is for people meeting people that they already know. The other, larger section is the section of tables for singles to come and meet new people. This section is composed of 4-top tables (table seating for four) where a customer will come and sit down at the table among other people. The table will be marked with a topic of conversation in the center. Throughout the evening as there is turnover of the table or the conversation is exhausted, the server will introduce a new topic. The topics of conversation are far reaching, some are recent news or sports, while others are intellectual, and some are philosophical. The bulk of the topics will be of the latter varieties as people that are interested in meeting people through the conduit of conversation will typically prefer heavier stuff to provide more insight into that person.
If you ask a majority of single 25-45 year olds, most will say they have difficulty meeting new people. Regular bars are not an ideal place to meet people because beyond their visual image, it is quite difficult to learn anything material about the person to determine if there are some commonalities. The typical bar has loud music and is not geared up for serious conversation. Bars are also less than ideal to meet people because of the uncertainty or ambiguity when meeting new people at a bar. Many people feel uncomfortable in situations where they are not sure how to act. The ideal situation to meet someone is during an activity that is mutually enjoyed, whether it is at an art museum or mountain biking in the Cascade Range.
Colloquy Grog Shop creates a setting in a bar/coffee shop that encourages thoughtful conversation, allowing patrons to gain insight into the other singles. The key to the conversation system is structure. The rules are clearly established. Singles sit down at specific tables and discuss the assigned topic of conversation. Everyone at these tables are single and looking to meet new people. The conversation is used to elicit insight into the other person, their values and perspectives as well as implicit and sometimes explicit insight to their background and past.
The structured conversation system is successful because it reduces ambiguity or uncertainty in the singles social scene allowing people to feel more comfortable in the setting and open up more to new people. Additionally, for intellectually minded people, it allows them to find people with similar interests, whether the similarity is based in the topic of conversation or more generally in conversation itself.
Keys to Success
• Attracting customers who find value in the Grog Shops offering and who will frequent the Shop regularly in order to meet like-minded single people.
• Excellent customer service.
• Maintaining a cost of goods on foods at below 50%.
Critical Issues
The Grog Shop is still in the speculative stage as a retail operation. Its critical issues are: to continue to take a moderate fiscal approach to business operations and to build brand awareness which will drive customers to the Grog Shop.

Marketing Strategy
Colloquy Grog Shop's strategy will be based on communicating Grog Shop's value to the targeted segments. This will be done through a variety of methods. The first method will be strategically placed advertisements. One place that will be used for advertisements is the Willamette Weekly, the liberal arts magazine that details all of the entertainment in Portland. This will be the main source of advertisements because the demographics of their readership are fairly similar to Colloquy Grog Shop's demographics.
Another source of marketing will be done with strategic relationships with companies that have similar customer demographics. One prime example is the Multnomah Athletic Club. While the club's patrons are not necessarily overwhelmingly single, the rest of the demographics match up. The MAC is a fairly exclusive downtown athletic club that by virtue of the membership costs, attracts professionals. The strategic relationship with be mutually beneficial where both organizations will develop visibility for each other.
The other form of advertising will be using "grassroots" methods where customers will be given coupons for their friends to try Colloquy Grog Shop for the first time. The coupon will be an economic incentive for the newcomer to try Colloquy Grog Shop. The coupon also has the added force of a referral from a friend.
Mission
Colloquy Grog Shop's mission is to provide a neighborhood bar/coffee shop where single people can meet. We exist to attract and maintain customers. When we adhere to this maxim, everything else will fall into place. Our services will exceed the expectations of our customers.
Marketing Objectives
• Develop brand awareness through a steady, month to month increase of new customers.
• Develop an increase in sales while achieving a status quo state or decrease in marketing expenses.
• Develop awareness of the structured conversation system measured by customers coming to the Grog Shop solely for meeting people.
Financial Objectives
• A double digit growth rate for each future year.
• Reduce the variable costs through efficiency gains.
• Reach profitability within the first year.
Target Markets
Colloquy Grog Shop's customers can be broken down into two groups, singles, and non-singles. The non-singles groups are smaller than the singles groups by virtue of the fact that if you are meeting someone whom you already know, the two of you can come up with the topic of conversation yourself, therefore, Grog Shop offers this group less value. The demographics for the non-singles is similar to the singles, to be listed below. The larger group then is the singles. The demographics of the singles are:
• Single: self evident.
• Professional: this characteristic is intuitive since the underlying element of Colloquy Grog Shop is thoughtful conversation, and most professionals appreciate thought-provoking conversation.
• Income over $40,000: this to a large degree is correlated to the fact that they are professional.
• Age 25-45: the largest group of singles looking for companions.
Positioning
The Colloquy Grog Shop will position itself as a reasonably priced tapas/bar/coffee house that has an innovative, effective system for allowing single to meet each other.
The Colloquy Grog Shop's positioning will leverage their competitive edge:
• A unique approach to getting singles together called the structured conversation system. This system was detailed in the Product and Services section, please refer to that section for more information.
• This system is a competitive edge because most bars/taverns do not have a niche that they are concentrating on. While every bar or coffee shop has a certain "flavor" and that is why someone will choose one bar or another, the flavor is only surface deep. The business model of the establishment is to sell alcohol and provide a social setting. Beyond these two values, there is little other genuine value that the establishments try to provide.
• Colloquy Grog Shop is distinguished by the fact that their business model concentrates on developing value for customers beyond serving drinks. The Grog Shop develops an effective, albeit inherently structured, social setting that encourages meeting like-minded individuals. Providing the drinks is the source of income, an ancillary part of the business model. Generating value for the customers is the main focus, if the customers are happy then the revenue will follow (assuming of course that proper marketing and financial controls are employed). Concentrating on the client's needs beyond serving alcohol is the distinguishing characteristic that will allow Colloquy Grog Shop to rapidly gain market share.
Strategies
The single objective is to position the Colloquy Grog Shop as the premier place for young professional singles to meet like-minded individuals. The marketing strategy will seek to first create customer awareness regarding their services offered, develop that customer base, and work toward building customer loyalty and referrals.
The message Colloquy Grog Shop will seek to communicate is that The Grog Shop is THE place to meet intelligent singles. This message will be communicated through a variety of methods. The first method will be advertisements. The bulk of the advertisements will be in the Willamette Weekly, a weekly entertainment guide in Portland that has impressive readership numbers for the desired target population.
Another method will be through establishing strategic relationships with companies that have similar demographics such as the Multnomah Athletic Club. Establishing a mutually beneficial relationship will allow both organizations to develop visibility for each other.
The other form of advertising will be using "grassroots" methods where customers will be given coupons for their friends to try Colloquy Grog Shop for the first time. The coupon will be an economic incentive for the newcomer to try Colloquy Grog Shop. The coupon also has the added force of a referral from a friend.
Marketing Mix
Colloquy Grog Shop's marketing mix is comprised of these following approaches to pricing, distribution, advertising and promotion, and customer service.
• Pricing: the pricing scheme is based on standard industry practices.
• Distribution: all services and products will be distributed from Colloquy Grog Shop's retail space.
• Advertising and promotion: the most successful advertising will be with Willamette Weekly. Additionally, strategic relationships will be developed with companies such as Multnomah Athletic Club as well as use of a grassroots promotion system.
• Customer service: obsessive customer attention is the mantra. The Grog Shop's philosophy is to do whatever needs to be done to impress the customer. While this could reduce short-term profits, it will strengthen long-term profitability.
Marketing Research
During the initial phases of the marketing plan development, several focus groups were held to gain insight into a variety of likely customers. These focus groups provided useful insight into the decision making process of these consumers.
An additional source of dynamic market research is a feedback system based on a suggestion card system. The suggestion card has several statements that patrons are asked to rate in terms of a given scale. There are also several open ended questions that allow the customer to freely offer constructive criticism or praise. The Grog Shop will work hard to implement reasonable suggestions in order to improve their service offerings as well as show their committment to the customer that their suggestions are valued.
The last source of market research will be competitive analysis. This will be done by regularly visiting competitors and analyzing their service offerings.

Financials
This section will offer a financial overview of the Grog Shop as it relates to the marketing activities. The section will address break-even analysis, sales forecasts, expenses forecasts, and how those link to the marketing strategy.
Break-even Analysis
The Break-even Analysis indicates that $30,237 will be needed in monthly revenue to reach the break-even point.



Break-even Analysis

Monthly Revenue Break-even $20,299

Assumptions:
Average Percent Variable Cost 32%
Estimated Monthly Fixed Cost $19,654


Sales Forecast
The first two months will be used to set up the physical location, hire personnel, establish vendor relationships and obtain an alcohol license. The third month will be the grand opening. Business during the second month will be understandably slow as a steady customer base takes time to build. By month four it is forecasted that sales will steadily grow.




Sales Forecast
2001 2002 2003
Sales
Drinks $105,921 $271,254 $296,874
Food $69,908 $179,028 $195,937
Total Sales $175,829 $450,282 $492,811

Direct Cost of Sales 2001 2002 2003
Drinks $26,480 $67,814 $74,219
Food $29,361 $75,192 $82,293
Subtotal Direct Cost of Sales $55,842 $143,005 $156,512


Expense Forecast
Marketing expenses are budgeted to remain fairly steady throughout the year. There will be an initial ramp up of spending to generate visibility. After this ramp up advertising will be fairly consistent month to month.



Marketing Expense Budget
2001 2002 2003
Advertising $4,800 $2,400 $2,400
Strategic relationships $2,000 $1,200 $1,200
Other $2,400 $1,200 $1,200
------------ ------------ ------------
Total Sales and Marketing Expenses $9,200 $4,800 $4,800
Percent of Sales 5.23% 1.07% 0.97%

Controls
The purpose of The Grog Shop's marketing plan is to serve as a guide for the organization.
Implementation
The following milestones identify key marketing programs. It is important to accomplish each one on time and on budget.
Milestones

Advertising Start Date End Date Budget Manager Department
Marketing plan completion 1/1/2001 2/1/2001 $0 Karen Department
Advertising 1/1/2001 1/1/2004 $9,600 Karen Department
Strategic relationships 1/1/2001 1/1/2004 $4,400 Karen Department
Grassroots promotion 1/1/2001 1/1/2004 $4,800 Karen Department
Name me 1/1/2003 1/15/2003 $0 ABC Department
Name me 1/1/2003 1/15/2003 $0 ABC Department
Name me 1/1/2003 1/15/2003 $0 ABC Department
Name me 1/1/2003 1/15/2003 $0 ABC Department
Name me 1/1/2003 1/15/2003 $0 ABC Department
Other 1/1/2003 1/15/2003 $0 ABC Department
Total Advertising Budget $18,800
PR Start Date End Date Budget Manager Department
Name me 1/1/2006 1/15/2006 $0 ABC Department
Name me 1/1/2006 1/15/2006 $0 ABC Department
Name me 1/1/2006 1/15/2006 $0 ABC Department
Other 1/1/2006 1/15/2006 $0 ABC Department
Total PR Budget $0
Direct Marketing Start Date End Date Budget Manager Department
Name me 1/1/2006 1/15/2006 $0 ABC Department
Name me 1/1/2006 1/15/2006 $0 ABC Department
Name me 1/1/2006 1/15/2006 $0 ABC Department
Other 1/1/2006 1/15/2006 $0 ABC Department
Total Direct Marketing Budget $0
Web Development Start Date End Date Budget Manager Department
Name me 1/1/2006 1/15/2006 $0 ABC Department
Name me 1/1/2006 1/15/2006 $0 ABC Department
Name me 1/1/2006 1/15/2006 $0 ABC Department
Other 1/1/2006 1/15/2006 $0 ABC Department
Total Web Development Budget $0
Other Start Date End Date Budget Manager Department
Name me 1/1/2006 1/15/2006 $0 ABC Department
Name me 1/1/2006 1/15/2006 $0 ABC Department
Name me 1/1/2006 1/15/2006 $0 ABC Department
Other 1/1/2006 1/15/2006 $0 ABC Department
Total Other Budget $0
Totals $18,800


Contingency Planning
Difficulties and risks:
• Problems generating visibility and awareness of the Grog Shop.
• An entry into Portland of the "conversation roundtables" or other single meeting events.
• Lower than forecasted consumption of alcohol.
Worst case risks may include:
• Determining that the business cannot support itself on an ongoing basis.
• Having to liquidate equipment to cover liabilities.

2011年3月27日星期日

MARKETING4

Séance 4 –
Le processus de décision (2) Evaluation et attitude
Plan de la séance
1- L’évaluation a) La catégorisation des produits b) Les modèles de décision
2- Les attitudes
a) Définition b) Formation
1- L’évaluation
Le processus de décision du consommateur
Reconnaissance du désir
Recherche interne (mémoire)
Recherche d’informations
Recherche externe
Évaluation (attitude)
1- L’évaluation a) La catégorisation des produits (1)
L’évaluation d’un produit se fait par rapport aux connaissances existantes sur les produits similaires
Catégorie de produit Catégorisation
1- L’évaluation a) La catégorisation des produits (2)
Les niveaux de catégorisation
Desserts
Desserts non diététiques
Desserts diététiques
Glaces Tartes
Gâteaux
Fruits Yaourts
Glaces allégées
1- L’évaluation a) La catégorisation des produits (3)
Implications marketing
 Positionnement d’un produit  Identification des concurrents  Identification du produit typique  Localisation des produits
1b) Les modèles de décision L’évaluation des possibilités d’achat
Les étapes du processus d’évaluation des possibilités d’achat
Sélection des choix possibles (produits, marques)
Sélection des attributs retenus
Évaluation des performances des choix possibles sur les attributs retenus
Application de la règle de décision
1b) Les modèles de décision La sélection des attributs
Phase d’évaluation Phase de choix
Ensemble des attributs du produit
Attributs connus
Attributs importants
Attributs déterminants
Attributs saillants
« Ce qui a un poids, une conséquence prévisible pour modifier une attitude »
Attributs inconnus
« Ce qui est directement relié au choix » Attribut important et différenciant
« Ce qui est conscient et fortement présent à l’esprit, puis susceptible d’être verbalisé »
1b) Les modèles de décision Sélection des marques prises en compte
« Ensemble des marques ayant une probabilité non nulle d’être achetées »
Ensemble de marques existant pour une classe de produits
Marques connues
Ensemble évoqué
Ensemble en attente
Ensemble rejeté
Marques achetées
Marques inconnues
1b) Les modèles de décision La règle de décision
 Les modèles multi-attributs • Trois principaux éléments :
– – –
Les attributs Les croyances Le poids des attributs
• Trois types de modèles :
a) b)
c)
Les modèles compensatoires Les modèles non-compensatoires
Les modèles mixtes
1b) La règle de décision Les modèles compensatoires
Principe : Le consommateur « compense » les mauvais scores sur certains attributs par des bons scores sur d’autres attributs pour arriver à un score global sur chaque marque
Les modèles compensatoires – Exemple d ’application
 C’est la Twingo qui sera préférée
Attributs
Importance
Smart
Saxo
Twingo
Prix
5
2
5
5
Solidité
3
2
2
3
Consommation
4
5
2
3
Coloris
2
3
2
3
42
43
52
1b) La règle de décision Les modèles non compensatoires
Principe : Le consommateur est capable de se limiter à certains attributs clés pour établir son jugement
Trois types de modèles non compensatoires - Le modèle conjonctif - Le modèle disjonctif - Le modèle lexicographique
1b) Les modèles non compensatoires Le modèle conjonctif
Principe : Le consommateur se fixe à priori des seuils sur les attributs clés en dessous desquels il ne souhaite pas descendre
 Pour qu’une marque soit jugée acceptable il faut qu’elle excède les seuils minimaux requis
Le modèle conjonctif – Exemple d ’application
 C’est la Twingo qui sera préférée
Attributs
Seuil minimal
Smart
Saxo
Twingo
Prix
4
2
5
5
Solidité
3
2
2
3
Consommation
3
5
2
3
Coloris
2
3
2
3
1b) Les modèles non compensatoires Le modèle disjonctif
Principe : Le consommateur privilégie certains attributs sans faire attention aux autres
 Il cherche à obtenir les meilleurs scores possibles sur ces attributs quels que soient les scores sur les autres
1b) Les modèles non compensatoires Le modèle lexicographique
Les attributs sont classés par ordre d’importance
Les marques sont comparées sur le premier attribut (le plus important)
On retient les marques qui dépassent le seuil minimum sur le premier attribut
1b) La règle de décision Les modèles mixtes
• Complexité de la réalité :
Le consommateur peut mêler processus compensatoires et non compensatoires
• Utilisation d’un modèle non compensatoire : Pour éliminer les marques non acceptables
• Utilisation d’un modèle compensatoire :  Pour choisir parmi les marques encore présentes
1b) Les modèles de décision La règle de décision : applications stratégiques
1. Modifier le produit ou la marque 2. Modifier les croyances sur le produit ou la marque 3. Modifier les croyances sur les marques concurrentes 4. Modifier les pondérations des attributs 5. Attirer l’attention sur des attributs non pris en compte

2- Les attitudes a) Définition
L’attitude est « une prédisposition à évaluer d’une certaine manière (positive ou négative) un produit ou une marque ».
3 propriétés
• Définition:
– – –
L’attitude est apprise et stable L’attitude est positive ou négative L’attitude est l’un des meilleurs prédicteurs du comportement
2- Les attitudes a) Définition
3 Composantes
• Cognitive – Connaissances, croyances et associations
• Affective – Jugement global et affectif
• Conative – Intentions et comportements
2- Les attitudes a) Définition
Composantes : Implications
Attention au niveau de mesure des attitudes Ex : On peut aimer une marque, avoir des croyances positives, mais ne
pas vouloir l’acheter
Ex : on peut aimer une marque, vouloir l’acheter mais ne pas avoir des croyances positives
Mesurer les trois types d’attitudes
2- Les attitudes a) Définition
Les fonctions des attitudes
• Fonctioninstrumentaleouutilitaire • Fonction d’expression des valeurs • Fonctiondedéfensedel’ego • Fonction d’organisation des connaissances
2- Les attitudes b) Processus de formation des attitudes
Les modèles de hiérarchie des effets
• Modèles de formation des attitudes – Relient les 3 composantes – Se fondent sur l’implication / objet d’attitude
• 3 principales hiérarchies – La hiérarchie de l’apprentissage – La hiérarchie de faible implication – La hiérarchie expérientielle
2b- Les hiérarchies des effets La hiérarchie de l’apprentissage
Sentiments
Croyances
Attitude Fondée sur un traitement de l’information cognitif
Comportement
Achat impliquant
2b- Les hiérarchies des effets La hiérarchie de faible implication
Sentiments
Croyances
Attitude Fondée sur des processus d’apprentissage comportementaux
Comportement
Achat peu impliquant
2b- Les hiérarchies des effets La hiérarchie expérientielle
Croyances
Sentiments
Attitude Fondée sur la consommation hédonique
Comportement

2011年3月22日星期二

Crise économique et financière Les initiatives des banques envers leurs clients
Dans un contexte économique plus difficile, les banques restent mobilisées pour accompagner les entreprises et les particuliers.
Les initiatives des banques sur le crédit immobilier
Crédit relais : des clients accompagnés : La profession a pris des engagements dès octobre 2008 pour aider ses clients ayant souscrit un crédit relais à faire face à d’éventuelles difficultés : prise de contact, point de situation, recherche des solutions adaptées (révision des conditions de vente du bien, allongement de la durée initiale du crédit relais sans pénalité...). Une liste des "contacts crédits relais" par banque est disponible depuis mai 2009 et accessible sur fbf.fr, ainsi qu’un mini-guide sur le crédit relais immobilier depuis novembre 2008.
Crédit à taux variables : Les engagements pris par la profession en mai 2008 ont permis de régler au cas par cas les problèmes rencontrés par certains clients. L’offre de crédits à taux variable est mieux sécurisée et plus transparente pour les clients qui souhaitent financer ainsi leur résidence principale : présentation d’une alternative de prêt à taux maîtrisable ou à taux fixe pour toute proposition de prêt à taux variable, suppression des taux d’appel, simulations- types systématiquement remises dès la demande de prêt à taux variable, information renforcée sur le passage à taux fixe, et glossaire commun (disponible depuis avril 2009).
Emprunteurs ayant à faire face à une baisse des revenus liée à une perte d’emploi/chômage partiel : Les réseaux recherchent des solutions au cas par cas pour leur permettre de poursuivre le remboursement des prêts immobiliers pour accession à la propriété : ajustement/report des échéances (pas de pénalité en cas d’accord sur un report d’échéances).
Les initiatives des banques pour le financement des entreprises
En octobre 2008, en contrepartie du plan de soutien au financement de l’économie, les banques s’engagent sur une croissance des encours de crédit de 3 à 4 % en 2009. Depuis, la croissance du PIB a été fortement revue à la baisse, d’où aussi une moindre demande. Les banques répercutent la baisse des taux et recherchent des solutions au cas par cas.
Les banques ont aussi signé à l’automne 2008 une convention avec l’Etat garantissant l’utilisation des fonds du LEP au profit des entreprises. Elles s’engagent à informer sur les encours de crédit, renforcer le dialogue banques / PME, adapter l’activité d’affacturage (elles publient un mini-guide pro en novembre 2008), renforcer le partenariat banques/Oseo, et utiliser les ressources LDD, LEP au profit des entreprises.
Médiation du crédit : les banques sont fortement impliquées. La FBF a d’ailleurs signé fin juillet 2009 un accord de place avec l’Etat et la Banque de France pour inscrire dans la durée ce dispositif de médiation. Les banques ont désigné plus de 500 correspondants dans les réseaux bancaires, nationaux et locaux.
Fonds propres : la FBF signe en avril 2009 la convention sur le financement des besoins en fonds propres des entreprises en médiation.
Exportations : en avril 2009, les dirigeants des banques signent une convention avec l’Etat et s’engagent à proposer des financements à l’exportation pour 7 Md€ en 2009 dans le cadre de refinancement auprès de la SFEF.
Direction de la Communication et des Relations extérieures – www.fbf.fr 05/10/2009
Accompagnement. Les réseaux bancaires appuient les PME et leurs organismes d’accompagnements. Plus de 1000 banquiers se sont investis depuis octobre 2008 au sein des Comités FBF et font régulièrement le point sur la situation de chaque département avec les Préfets, les TPG et les directeurs de la Banque de France.
Dialogue. Pour renforcer le dialogue et la proximité envers leurs entreprises, les dirigeants des principales banques françaises se rendent à tour de rôle dans différentes régions françaises pour rencontrer des patrons de PME de tous les secteurs d’activité. Au cours de ces rencontres organisées par les comités FBF dans les régions, chacun des dirigeants écoutera et répondra sur les thèmes qui intéressent les PME (accès au crédit, gestion de trésorerie, haut de bilan, création, transmission, financement de l’innovation ou de l’export etc.
Les chiffres clés
Crédit relais : Les dossiers de clients en difficulté sont peu nombreux : quelques centaines par grand réseau (mars 09).
L’offre à taux variables représente en 2008 moins de 2% de la production de crédits immobiliers (Observatoire Crédit Logement)
La médiation du crédit aux entreprises a permis de trouver des solutions dans 2 cas sur 3. Sur 10 mois, plus de 7 100 entreprises ont été confortées dans leur activité. Plus de 148 000 emplois ont ainsi été préservés en France (rapport du médiateur, 13 septembre 2009)
L’encours des crédits des établissements de crédit français au secteur non financier a augmenté de + 2,3 % à fin août 2009 sur un an (1 727,5 milliards d’euros) (Banque de France)
Selon la Cour des Comptes, le plan français de soutien au financement de l’économie devrait rapporter à l’Etat 1,28 mds € pour fin 2009 en contrepartie des prêts consentis par la SFEF. Au total, avec la rémunération des titres et des actions de préférence émis dans le cadre de la SPPE, les recettes pour le budget de l’Etat pourraient atteindre 2 milliards d’euros.
Les dates clés
27 juillet 2009 : la FBF signe avec le Ministre de l’Economie, le Médiateur du crédit aux entreprises et la Banque de France un accord de place qui inscrit la Médiation du Crédit dans la durée, jusqu’à fin 2010.
15 avril 2009 : Les dirigeants des banques signent une convention avec l’Etat et s’engagent à proposer des financements à l’exportation pour 7 Md€ en 2009 dans le cadre de refinancement auprès de la SFEF.
6 avril 2009 : La FBF signe la convention sur le financement des besoins en fonds propres des entreprises en médiation pour soutenir l'activité économique.
3 mars 2009 : Les banques s’engagent à mettre en place des « contacts crédit relais » dans chacun de leur réseau pour compléter le dispositif d’octobre 2008.
18 février 2009 : Accession à la propriété : les banques se mobilisent pour accompagner leurs clients mis en difficulté par une baisse des revenus liée au chômage et chômage partiel.
21 octobre 2008 : • Les établissements de crédit s’engagent à renforcer l’information et à accompagner leurs
clients rencontrant des difficultés pour dénouer une opération de crédit relais immobilier. Direction de la Communication et des Relations extérieures – www.fbf.fr 05/10/2009
• Les banques signent une convention avec l’Etat garantissant l’utilisation des fonds du LEP au profit des entreprises.
13 octobre 2008 : en contrepartie du plan de soutien au financement de l’économie, les banques s’engagent sur une croissance des encours de crédit de 3 à 4 % en 2009.
22 mai 2008 : Taux variables et accession à la propriété : les professionnels du crédit prennent des engagements pour renforcer l’information et la confiance.
Crise économique et financière Les initiatives des banques envers leurs clients
Dans un contexte économique plus difficile, les banques restent mobilisées pour accompagner les entreprises et les particuliers.
Les initiatives des banques sur le crédit immobilier
Crédit relais : des clients accompagnés : La profession a pris des engagements dès octobre 2008 pour aider ses clients ayant souscrit un crédit relais à faire face à d’éventuelles difficultés : prise de contact, point de situation, recherche des solutions adaptées (révision des conditions de vente du bien, allongement de la durée initiale du crédit relais sans pénalité...). Une liste des "contacts crédits relais" par banque est disponible depuis mai 2009 et accessible sur fbf.fr, ainsi qu’un mini-guide sur le crédit relais immobilier depuis novembre 2008.
Crédit à taux variables : Les engagements pris par la profession en mai 2008 ont permis de régler au cas par cas les problèmes rencontrés par certains clients. L’offre de crédits à taux variable est mieux sécurisée et plus transparente pour les clients qui souhaitent financer ainsi leur résidence principale : présentation d’une alternative de prêt à taux maîtrisable ou à taux fixe pour toute proposition de prêt à taux variable, suppression des taux d’appel, simulations- types systématiquement remises dès la demande de prêt à taux variable, information renforcée sur le passage à taux fixe, et glossaire commun (disponible depuis avril 2009).
Emprunteurs ayant à faire face à une baisse des revenus liée à une perte d’emploi/chômage partiel : Les réseaux recherchent des solutions au cas par cas pour leur permettre de poursuivre le remboursement des prêts immobiliers pour accession à la propriété : ajustement/report des échéances (pas de pénalité en cas d’accord sur un report d’échéances).
Les initiatives des banques pour le financement des entreprises
En octobre 2008, en contrepartie du plan de soutien au financement de l’économie, les banques s’engagent sur une croissance des encours de crédit de 3 à 4 % en 2009. Depuis, la croissance du PIB a été fortement revue à la baisse, d’où aussi une moindre demande. Les banques répercutent la baisse des taux et recherchent des solutions au cas par cas.
Les banques ont aussi signé à l’automne 2008 une convention avec l’Etat garantissant l’utilisation des fonds du LEP au profit des entreprises. Elles s’engagent à informer sur les encours de crédit, renforcer le dialogue banques / PME, adapter l’activité d’affacturage (elles publient un mini-guide pro en novembre 2008), renforcer le partenariat banques/Oseo, et utiliser les ressources LDD, LEP au profit des entreprises.
Médiation du crédit : les banques sont fortement impliquées. La FBF a d’ailleurs signé fin juillet 2009 un accord de place avec l’Etat et la Banque de France pour inscrire dans la durée ce dispositif de médiation. Les banques ont désigné plus de 500 correspondants dans les réseaux bancaires, nationaux et locaux.
Fonds propres : la FBF signe en avril 2009 la convention sur le financement des besoins en fonds propres des entreprises en médiation.
Exportations : en avril 2009, les dirigeants des banques signent une convention avec l’Etat et s’engagent à proposer des financements à l’exportation pour 7 Md€ en 2009 dans le cadre de refinancement auprès de la SFEF.
Direction de la Communication et des Relations extérieures – www.fbf.fr 05/10/2009
Accompagnement. Les réseaux bancaires appuient les PME et leurs organismes d’accompagnements. Plus de 1000 banquiers se sont investis depuis octobre 2008 au sein des Comités FBF et font régulièrement le point sur la situation de chaque département avec les Préfets, les TPG et les directeurs de la Banque de France.
Dialogue. Pour renforcer le dialogue et la proximité envers leurs entreprises, les dirigeants des principales banques françaises se rendent à tour de rôle dans différentes régions françaises pour rencontrer des patrons de PME de tous les secteurs d’activité. Au cours de ces rencontres organisées par les comités FBF dans les régions, chacun des dirigeants écoutera et répondra sur les thèmes qui intéressent les PME (accès au crédit, gestion de trésorerie, haut de bilan, création, transmission, financement de l’innovation ou de l’export etc.
Les chiffres clés
Crédit relais : Les dossiers de clients en difficulté sont peu nombreux : quelques centaines par grand réseau (mars 09).
L’offre à taux variables représente en 2008 moins de 2% de la production de crédits immobiliers (Observatoire Crédit Logement)
La médiation du crédit aux entreprises a permis de trouver des solutions dans 2 cas sur 3. Sur 10 mois, plus de 7 100 entreprises ont été confortées dans leur activité. Plus de 148 000 emplois ont ainsi été préservés en France (rapport du médiateur, 13 septembre 2009)
L’encours des crédits des établissements de crédit français au secteur non financier a augmenté de + 2,3 % à fin août 2009 sur un an (1 727,5 milliards d’euros) (Banque de France)
Selon la Cour des Comptes, le plan français de soutien au financement de l’économie devrait rapporter à l’Etat 1,28 mds € pour fin 2009 en contrepartie des prêts consentis par la SFEF. Au total, avec la rémunération des titres et des actions de préférence émis dans le cadre de la SPPE, les recettes pour le budget de l’Etat pourraient atteindre 2 milliards d’euros.
Les dates clés
27 juillet 2009 : la FBF signe avec le Ministre de l’Economie, le Médiateur du crédit aux entreprises et la Banque de France un accord de place qui inscrit la Médiation du Crédit dans la durée, jusqu’à fin 2010.
15 avril 2009 : Les dirigeants des banques signent une convention avec l’Etat et s’engagent à proposer des financements à l’exportation pour 7 Md€ en 2009 dans le cadre de refinancement auprès de la SFEF.
6 avril 2009 : La FBF signe la convention sur le financement des besoins en fonds propres des entreprises en médiation pour soutenir l'activité économique.
3 mars 2009 : Les banques s’engagent à mettre en place des « contacts crédit relais » dans chacun de leur réseau pour compléter le dispositif d’octobre 2008.
18 février 2009 : Accession à la propriété : les banques se mobilisent pour accompagner leurs clients mis en difficulté par une baisse des revenus liée au chômage et chômage partiel.
21 octobre 2008 : • Les établissements de crédit s’engagent à renforcer l’information et à accompagner leurs
clients rencontrant des difficultés pour dénouer une opération de crédit relais immobilier. Direction de la Communication et des Relations extérieures – www.fbf.fr 05/10/2009
• Les banques signent une convention avec l’Etat garantissant l’utilisation des fonds du LEP au profit des entreprises.
13 octobre 2008 : en contrepartie du plan de soutien au financement de l’économie, les banques s’engagent sur une croissance des encours de crédit de 3 à 4 % en 2009.
22 mai 2008 : Taux variables et accession à la propriété : les professionnels du crédit prennent des engagements pour renforcer l’information et la confiance.

2011年3月6日星期日

club med

The Club Med’s Global Strategy: Can the Club Med’s Holidaymaking Concept Work in Asia?

Magellan Marketing Approach: Any Marketing approach is based on the so-called four “Ps”: Product (the quality of what you want to sell on the market), Price (profitability for the customer), Place (channels of distribution: the small shop around the corner, supermarkets, outlets, etc. ) and Promotion (advertising campaigns, etc.). The Magellan Marketing Approach, named after a famous European navigator and explorer, is targeting the average consumer market, rather than the upscale market.

Upscale Strategy: An upscale Marketing Strategy is based on the segment of the market that can buy higher quality products or services at a higher price.

Institutional Investors: They are government-controlled organizations (for instance, institutions such as banks, insurance companies, etc. owned by government) that invest money in large blocks of shares at a preferential treatment, including lower commissions. They face fewer protective regulations because it is assumed that they are more knowledgeable about the markets the risks, therefore better able to protect themselves, the more so because they are backed by the government.

Fosun Properties: It is a limited investors’ company that went public on the Hong Kong stock exchange in 2007. It is one of the largest Chinese private companies. Its scope of business covers pharmaceutical and property development (real estate projects and new medical products created in research institutes and laboratories).

Segmentation of the Offer: The segmentation of the offer consists for a firm in dividing the market into segments corresponding to the needs and the financial means of the potential customers.

Segmentation of the Product: The segmentation of the product consists for a firm in categorizing the services or the product so as to meet better the customers’ requirements. For instance, in the Club Med’s strategy, single customers (upscale or average) do not have the same needs than those with their families.

Domestic Market (Chinese Domestic Market): A domestic market reaches customers inside a country, as opposed to the international market, which covers markets outside the country. Analyzing the Chinese holidaymaking domestic market, one needs to find out the number of potential customers who can afford to pay for vacations inside China. That implies knowing the income brackets, and spending power of the segment of would-be vacationers on the Chinese domestic market. Perhaps you select the top income and top spending urban population of three of the most well-off provinces in China (Shanghai, Beijing, Zhejiang, Jiangsu provinces).

Out-of-China Market: It is the international market, which involves currency matters, the appeal of the foreign offer to potential customers.

Potential Population Segment Targeted by the Club Med’s Concept: To determine the potential population segment targeted by the Club Med’s holidaymaking concept we need to assess some cultural factors. Is the G.O. idea appealing? Are activities for teenagers likely to seduce their parents? Is the family holidaymaking offer attractive to the Chinese? Are singles likely to be attracted by top notch services allowing them to make new acquaintances at the same time? Is having collective fun an appealing concept in Chinese culture?

kfc

Prologue
On November 12, 1987, KFC opened its first restaurant in China a short walking distance from Tiananmen Square. Nearly nine years later, in June 1996, KFC opened its 100th restaurant in China, also in Beijing. In the subsequent nine years between 1996 and 2005, KFC opened 1,400 more restaurants throughout China, fourteen times the number in the previous nine years.
How did KFC China do it? What are the key factors behind its success?
KFC, Pizza Hut, Taco Bell, Long John Silver’s, and A&W are all brands under the umbrella of YUM! Brands, Inc., which was spun off from PepsiCo, Inc., in 1997. At the end of 1986, China was not even in KFC’s map. By the end of 2005, less than 20 years later, China accounted for 16 percent of YUM! Brands, Inc.’s worldwide corporate earnings and 14 percent of worldwide revenue. In the next few decades these ratios are expected to grow steadily.
At the end of 2005, China’s restaurant service industry generated total revenue of RMB880 billion. KFC accounted for 1 percent of the industry total, making it the single largest chain restaurant enterprise in China.
Elsewhere around the world KFC lags behind McDonald’s in brand equity, market share, and consumer preference. Not in China. Take size, for instance, McDonald’s had over 30,000 restaurants around the world at the end of 2005, outnumbering KFC by more than two to one.
The successful execution of KFC China’s business strategy has since been rewarded with an unlikely industry leadership position in growth, profitability, market share, and brand recognition in one of the world’s fastest growing economies.

KFC- A pioneer in China

From one to one thousand

In the history of KFC, China has the best record of restaurant growth outside its home market of America. No other restaurant company, Chinese or foreign, has achieved such remarkable growth in China to date.
Today KFC is the largest restaurant chain in China, foreign or local, in terms of revenues, profits, and number of outlets. This statement takes into account all restaurant types, not just quick service (QSR), or "fast food", restaurants. What makes this achievement even more amazing is that this leadership position has been achieved, of all the markets around the world, in the People’s Republic of China-with a long history of culinary art known for its flavor, variety, and popularity.
At the end of 2005, nearly 1,500 KFC restaurants could be found in over 350 cities in every province and special administrative region of China except Tibet, outnumbering its archrival, McDonald’s, by a margin of two to one. On average, during 2005 each of these 1,500 restaurants generated US$1 million in revenue and a profit margin of approximately 20 percent.
These impressive numbers came during a challenging year that began with the Sudan I red-dye incident, which resulted in a public backlash following media reports that some KFC products contained a harmful ingredient, Sudan I red dye, and ended with public concerns across the country over avian flu, a bird flu virus that caused dozen of reported deaths in Asia, most of which were blamed on direct and indirect contact with infected poultry. As a result, both average revenue and profit margin per restaurant suffered a decline of up to 20 percent to the previous year.
In many ways, the timing of KFC’s first restaurant opening in China in 1987 was perfect. It was nine years after the official launch of China’s economic reforms, five years ahead of Deng’s historic journey to southern China, and three years ahead of McDonald’s entry. China had recently been reopened to the West after decades of hiding behind its self-imposed "bamboo curtain". China’s citizens, after being cut off from much of the world for decades, now looked to the West-and anything with a Western flavor-with a mixture of curiosity, anxiety, and anticipation.
Along with fried chicken, there were many other reasons why eager customers queued up outside the door during the first few weeks after the grand opening. Customers were attracted to KFC’s Chinese brand name; its American roots; its likeable, grayish, beard-bearing brand spokesperson- Colonel Sanders; the unique restaurant décor; the new way of ordering food; the bright red and blue colors of the brand logo; the American music broadcasted inside the restaurant; and, as an added bonus, a very clean toilet!
From the beginning, eating out at KFC was an expensive but curious, exciting, unique, and brand-new experience never before encountered by a Chinese customer. Although the food was prepared fast, the dining experience itself marked an occasion, a very special event that required savoring with a measured pace. From the beginning, KFC was never a "fast food" experience for the average Chinese consumer. Instead, it was more of a sit-down dining experience. Moreover, dining at a KFC restaurant was like taking a brief tour of America, with all its connotations: political, cultural, time; and space- real or imaginary.
As of early 2008, of four of its brands that have entered China, KFC and Pizza Hut have performed very well, while A &W and Taco Bel! Have not. Many companies have leapt into China with high hopes, only to beat a quiet retreat later on. Why?
In addition to a variety of uncertainties that normally surround entry into a new country market, one factor that makes entry into China an even more difficult challenge is the complexity of China’s population, geography, history, and recent economic development. China is not only the world’s most populous nation, it also possesses a massive land area- roughly the size of the U.S. To complicate matters further, China’s population density, economic development, and wealth distribution vary greatly from east to west and from south to north.
China’s population density is highly uneven. If one drew a straight line between the northernmost point in Heilongjiang Province and the westernmost point of Yunnan Province, approximately 80 percent of China’s total population and 40 percent of the total landmass would be found on the eastern side of this artificial dividing line. In other words, 20 percent of China’s population lives on 60 percent of China’s land west of this artificial line.
Officially, West is defined to include twelve provinces and equivalent administrative units including Chongqing, Sichuan, Yunnan, Guizhou, Shaanxi, Gansu, Qinghai, Ningxia, Xinjiang, Guangxi, Inner Mongolia, and Tibet. Together, they account for 71 percent of China’s total landmass, and 29 percent of the total population.
While vast areas in western China are sparsely populated, China’s eastern seacoast is among the world’s most densely populated. Up until the turn of the last century , economic development and wealth accumulation were largely confined to China’s eastern seacoast, especially in southeastern China, where 20 percent of the country’s population generated half of the nation’s GDP and three-quarters of its total exports at one point in time.
Aside from population density, economic contrasts between China’s eastern and western regions are staggering. Per capita gross domestic product (GDP) in the West is 58 percent of the national average, far below that of the East. For example, the per capita GDP of Chongqing, the most populous city in the West and the nation’s capital during the Japanese invasion of China from the late 1930s through the mid 1940s, is merely one-fifth that of Shanghai. Both belong to an elite group of only four cities (known as municipalities) in China that report directly to the central government (the other two are Beijing and Tianjin).
While the skylines of Shenzhen, Shanghai, and Beijing have long symbolized China’s economic transformation, many of the second tier cities around the country such as Shenyang, Qingdao and Xian had already begun the process of face-lifting by the turn of the century. More recently, even third are fourth-tier cities –some such as Urumqi and Lhasa, which are located in western China-have begun major face-lifting transformations. The magnitude, pervasiveness, and speed of these transformations can be mind-boggling.

Shopping Chinese Style

In parallel to massive infrastructure projects undertaken by the Chinese government to build new cities, roads, airports; or, for that matter, the world’s fastest commercial rapid- transit system- the magnetic levitation (Maglev) train in Shanghai, with a top speed of 430 kilometers, or 270 miles per hour-Chinese consumers have made significant changes to their spending and lifestyle patterns since the beginning of China’s economic reforms.
In 1992, China’s State Council, the country’s highest administrative authority, decided to allow foreign investment in the retail industry. Changes began to take place almost overnight. By the end of 2004, when China was required to fully open its retail sector to foreign investors under the terms of its accession to the World Trade Organization (WTO), China had given the green light to 314 foreign retailers and wholesalers. Bringing a whole new approach to the Chinese retail market, these newcomers from abroad had opened 4,000 retail stores of varying type and size, occupying a total of 9.2 million square meters, in the top few dozen cities in China.
Foreign investment in the retail industry accelerated in 2005. In a single year, China approved another 1,000 foreign retailers and wholesalers, allowing them to open 1,160 stores with an operational area of 4.7 million square meters. Of these new foreign stores, specialized stores representing well-known, high-end brands such as Armani, Hugo Boss, Gucci, and Zegna accounted for 57.2 percent. Hypermarkets made up 22,5 percent, and department stores accounted for 13.1 percent.
Today millions of Chinese consumers flock to foreign retail stores such as B&Q from the U.K., Carrefour from France, Isetan and Jusco from Japan, Lotus from Thailand, Metro from Germany, Parkson from Malaysia, and Wal-Mart from the U.S. on any given day in a growing number of Chinese cities. Relying on their superior knowledge of the local market, local players like Lianhua and NongGongShang are also fighting for a piece of the action with improved quality of service, upgraded techniques, spurred on by their formidable competitors from overseas and rising consumer expectations.
Compared to the late 1980s, the typical shopping experience for the average urban Chinese consumer has undergone a seismic revolution. In many ways, shoppers in the largest Chinese cities have more choice of international brands today than their counter-parts in New York, Paris, or Tokyo. Moreover, while it took decades or even longer for developed economies to evolve their retail distribution channels from mom-and-pop corner shops to department stores, supermarkets, hypermarkets, specialty shops, and convenience stores, the same process of retail evolution took in place in China in less than 15 years. Similar fast-paced, often generation-skipping, industry transformations have taken place across the Chinese economy in telecommunications, transportation, electronics, and manufacturing industries. More recently, similar changes have taken place in service industries such as banking, insurances, and even government services. The net effect of these developments across multiple economic sectors in the co-existence of old and new generations of technologies, products, and channels of distribution in almost every single direction one turns, at a speed of change seldom seen anywhere else around the world.

Economic reforms

Since the beginning of China’s economic reforms in 1978, China’s economic performance has made a dramatic turn for the better. While the standard of living for the average Chinese citizen has clearly improved, China’s economic reforms have created new economic challenges. These include, among others: corruption; unemployment; inadequate social welfare system; environmental pollution; waste and inefficiency of resource utilization; uneven distribution of wealth, education, infrastructure, and public health facilities between different geographical regions, and between urban centers and rural villages.
The gap between rural and urban China is huge in terms of both population density, according to official statistics, China had 668 cities at the beginning of 2004, half of them with populations in excess of 200,000. Thirty-seven of them had a population of over one million, led by Chongqing, with 31 million; Shanghai, 16 million; and Beijing, 14 million. The great majority of these top 37 population centers are in eastern China.
In terms of purchasing power, China’s top ten cities account for 20 percent of national retail sales; the top 30 cities-of which only four are located in western China, account for one-third. Furthermore, based on data from 2004, China’s urban per capita income of US $1,531 is more than three times the rural per capita income of US $488. These statistics contributed to China’s alarmingly high Gini Index, which measures the degree of wealth concentration. Worse yet, income disparity continues to grow at an alarming rate.


China’s restaurant industry

Reflecting the growth of the overall economy and rising consumer prosperity, China’s restaurant industry closed 2005 with total revenue reaching RMB 880 billion, or slightly over US $100 billion based on then-prevalent exchange rate. For the industry as a whole, this represented yet another year of double-digit growth. KFC accounted for approximately 1 percent of this industry total, making it the clear leader in terms of both revenue and profit in a highly fragmented industry.
KFC growth path in China followed the development of the larger economy, beginning with cities, countries, and townships within provinces along the eastern coast throughout the late 1980s and the mid-1990s. In 1995, upon entering Chengdu, the capital city of Sichuan Province, KFC kicked off its westward expansion. Two years later, the brand’s establishment in Chongqing further solidified KFC’s market position in western China. At the same time, market entry into Wuhan and Changsha pushed KFC inland to central China.
Over the years, KFC’s Expansion in China has proven to be well timed. By first entering China in 1987, it was well positioned to take full advantage of the acceleration of China’s economic reforms, which came five years later. KFC’s second big expansion began in 1995 when it expanded into China’s western region, four years before the official kick-off of a major government-led program to develop region’s full economic potential. On both occasions, KFC demonstrated an ability to anticipate emerging market forces and government policies, a unique skill set that is critical to the success of any company doing business in China’s “socialist market economy”.

KFC in Asia

KFC’s foray into Asia began with Japan in 1970. Within Greater China, KFC first entered Hong Kong in 1973 and quickly grew to eleven restaurants in the following year. But KFC misjudged the local market and failed up to develop a suitable business model. All eleven restaurants were closed in early 1975. Ten years later, KFC returned to Hong Kong and persevered this time, eventually franchising its operation to a company called Birdland, which was backed by a group of local investors.
In 1984, KFC entered Taiwan through a franchise agreement with a joint venture company set up by two large Japanese trading companies and a local food company called the UNI-President Group. Later, Birdland took over the KFC franchise in Taiwan from the original joint venture company.
In 1996, the YUM! Brands Greater China headquarters in Shanghai began opening its own KFC restaurants in Taiwan in tandem with Birdland, without an agreement between the two companies to divide up the territory. Until 2001, when Birdland sold its franchise back to KFC, there had been a period of five years during which both companies tried, in good faith, to co-manage the KFC brand in Taiwan. During that period, their business relationship was often cooperative, sometimes competitive, and always challenging, given the nature of a franchiser/franchise relationship.
KFC’s rocky experience in Asia, especially its early failures in Hong Kong and Taiwan during the 1970s and the 1980s, served as valuable and relatively inexpensive lessons in preparation for its 1987 entry into China, which later proved to be the most critical country market for KFC in Asia, or anywhere else outside the U.S.

An American Pioneer in China

There is little doubt that KFC was a pioneer when it entered China in 1987, the significance of which goes far beyond the fact that KFC was the first well-known Western restaurant brand to enter China. At the time of its market entry, KFC introduced at least two new concepts to China: fast-food and restaurant chains.
Prior to KFC’s entry in 1987, some might argue that there were already various forms of Chinese fast food being served. These ranged from the traditional Chinese breakfast items including congee, soy bean milk, and yiu-tiao (fritters of twisted dough), to noodles, various other snacks, and even selections or regular Chinese dishes already cooked-some kept warm, while others were served cold as appetizers-such as bao-zi (Chinese steamed buns), jiao-zi (Chinese water dumplings), sweetened baked goods of various types, and even Cantonese dim sum.
Unlike most Chinese food, which requires elaborate and time-consuming preparation, these Chinese “fast-foods” are usually prepared in advance of purchase, or can be prepared relatively quickly upon placement of an order because of their simplicity. Most of the catering units are small in scale, lacking sufficient financial capital, an attractive physical appearance, a group of properly trained employees, and a clean and well-maintained dining, kitchen, and lavatory environment. While the food may be served fast and its price may be affordable, this is usually because of the simplicity of the food offered and the lack of a desirable restaurant environment.
This type of fast food is very different from KFC’s concept of past food. First, KFC food is prepared quickly because of systemization, process standardization, and equipment automation, none of which is evident in the preparation of traditional Chinese “fast food”. Second, the physical characteristics of KFC restaurants are very different from the traditional Chinese catering units. They are cleaner, brighter, more relaxed, and require more financial investment. Third, food from KFC restaurants is priced at a significant premium compared to Chinese “fast food”. Therefore, it is no exaggeration to conclude that KFC introduced the concept of fast food or, at very least, a much higher standard or fast food, to China.
Before KFC arrived on the scene, these were very few Chinese restaurant groups that operated multiple restaurant units in different parts of China with the same brand name and under the same ownership. Of those, the number of restaurants in each group was very small, usually a handful, located in the same city or province. In less than a decade, KFC succeeded in developing a multi-province, multi-city chain of restaurants covering an ever-expanding territory and, before long, the whole of China. In doing so, KFC successfully transplanted a proven business model from America to China: a restaurant chain.
Prior to KFC, why were there no Western fast-food restaurants in China, and why was there not any sizeable restaurant chain, local and otherwise? On the first question, the short answer is that China lacked broad economic affluence and an emerging middle class prior to the 1990s, conditions often associated with the rise in of popularity of Western fast food. On the second question, the short answer is that Chinese food comes in many different varieties, and Chinese consumers in different parts of the country prefer different styles of Chinese food.
With the wide variety of Chinese dishes, ingredients, and complexity in their preparation, it is not easy to standardize the 3production3 process for one Chinese dish, let alone dozens of hundreds of them. Without process automation, the idea of product duplication with universal adherence to tight standards and consistently high quality, which is a fundamental percept behind a fast-food restaurant chain, would be virtually impossible.
The first appearance of KFC in China in 1987 brought not only American fast food, but also a major foreign restaurant brand. Even more important, it brought a sweeping revolution with a new approach to food preparation, restaurant operation, and business management to the Chinese restaurant industry, underpinned by the dual concepts of fast food and restaurant chains. Both concepts were new to China.