Transcript Market Objective

DorMart
Marketing Management
Final Group Report
Instructor: Dr. Charles Trappey
Group 10 Members:
9562525
9562505
9562536
9562539
9562540
9662509
911038
計弘達 Paul Chi
陳永昌 Owen Chen
呂淨君 Caren Lu
楊雅琳 Jocelyn Yang
蔣志銘 Jimmy Jiang
洪久媄 Laura Hung
李欣怡 Angella Li
1
Agenda
• Situation Analysis
• Marketing Strategies
• Financials, Budgets, and Forecasts
• Controls
Marketing Management-Group Report-DorMart
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Situation Analysis
• DorMart: Leading supermarket brand
for 20 years in Taiwan.
• Online shopping is mature in Taiwan.
• New strategy: Provide “Door to Door
Service” to customers, but existing
stores are still the major force of the
revenue.
Marketing Management-Group Report-DorMart
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DorMart Express
• Website based supermarket service.
• Target Segmentations: busy office
workers, the handicapped, or people
who don’t have time to go outside.
Marketing Management-Group Report-DorMart
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Market Demographics
• We target busy office workers as our
main “DorMart Express” users.
• Ages: Twenty-five to fifty.
• Areas: Busy cities such as Taipei and
Hsin-chu.
Marketing Management-Group Report-DorMart
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Market Trends and Growth
• Present Supermarket Situation:
Traditional non-door-to-door stores,
which is extremely competitive.
• Modern lifestyle is busy.
• Online shopping is very mature.
• Therefore, supermarket door to door
service can be the new trend and
creates new profits for DorMart.
Marketing Management-Group Report-DorMart
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SWOT Analysis
Strengths
Leading supermarket position
Product expertise
Abundant resources
Good relationship with
suppliers
Opportunities
Weaknesses
Lack of door to door
experience
Difficulty of changing
consumer habits
Threats
Participation in a new era of
Future new entrants
purchasing style
Existing online websites
Increased sales volume & profit Convenience stores
Marketing Management-Group Report-DorMart
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Services
• Door to door service- 24 hours online
service (designated time and location).
• B2C business service for daily
necessities purchasing.
• Customer can order by DorMart online
service, phone calls, and FAX.
• Thousands of products selection.
• Easy pay method including credit card,
ATM transferring accounts, or cash
payment.
Marketing Management-Group Report-DorMart
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Keys to Success
• 24 hours procurement service are
convenient to customer.
• Door to door service can save
customer’s time for walking around
purchasing in stores and goods
transportation.
Marketing Management-Group Report-DorMart
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Keys to Success
• Using procurement information data
base, and data-mining technique,
DorMart can analyze the consumers
into segments and provide the right
advertisements that would minimize
the advertising cost.
• We own the advantage of existing
operation system. Thus, it will lower
the operation cost.
Marketing Management-Group Report-DorMart
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Critical Issues
• Fast and just-in-time delivery service
take more transportation manpower.
• Customer complains cannot be
solved immediately, ex ill goods can
not swap immediately.
Marketing Management-Group Report-DorMart
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Channels
• Consumer can drop order trough web
site, phone calls, or by fax.
• Pay by credit cards, ATM, or cash .
• DorMart’s advertising channel will be
through web Portal sites, TV
commercials, newspaper, magazines,
radio broadcasting, credit card
pamphlets, and handbill.
Marketing Management-Group Report-DorMart
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Macroenvironment
• DorMart’s revenue grew 5~1O% each past
years. Due to internet’s prevalence, door to
door business increase rapidly.
• Nation’s income growth also increases 5% in
daily expenditure of necessities per year in
Macroeconomics.
• The busier people are, the more convenient
shopping requests there will be.
• Currently, door to door service only occupies
about 30% of the procurement business. So,
there will be great potential in door to door
business.
• From questionnaire investigation, door to door
business have 42% potential of whole business
which is great inspiration to DorMart.
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Strategy Pyramid
• Build up an easy-to-use internet
environment.
• Create a streamlined logistic system.
• Create promotion activities and sales
pitch.
• Bond specially selected products for
everyday sales or special seasons.
Marketing Management-Group Report-DorMart
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Marketing Mix
• DorMart is not only a retail business,
but also provides door to door service.
• DorMart selectively keeps the lowest
price for some products, like cola,
milk and instant noodles.
• Send E-mail to DorMart members to
remind our weekly promotion
• Place advertisements on major Portal
sites, like Yahoo, and other channels.
Marketing Management-Group Report-DorMart
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Marketing Mix
• DorMart sends questionnaires to
customers to improve service.
• DorMart analyzes customers’
purchasing history to meet and
stimulate customer requirements.
Marketing Management-Group Report-DorMart
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Market Mission
• Quality
• Freshness
• Convenience
– Anywhere
– Anytime
Marketing Management-Group Report-DorMart
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Market Objective
63.8% use Internet
31.8% shop online
---from III
---from III
Customer Growth Forecast (%)
40
30
20
18
22
25
28
2
3
4
32
10
0
1
5
Market Share Forecast (%)
60
40
30
35
40
48
55
20
0
1
2
3
4
5
Marketing Management-Group Report-DorMart
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Market Objective
Total Growth (%)
17.6
20
13.44
15
10
5
5.4
7.7
10
0
1
2
3
4
Marketing Management-Group Report-DorMart
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19
Finance Objective
• 7500 K household
Y
target
total
percen
househ
tage
old (K)
(%)
---from RIS
target
market
househ share
old (K) (%)
purcha
our
sing
sales
custom power
annual
er (K)
annual (K)
(K NTD)
1
7,500
18
1,350
30
405
24.0
9,720
2
7,500
22
1,650
35
578
25.2
14,553
3
7,500
25
1,875
40
750
26.5
19,845
4
7,500
28
2,100
48
1,008
27.8
28,005
Marketing Management-Group Report-DorMart
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Target Market
• Busyness
– Double Income
– One parent Family
– Business trap
• Inconvenience
– Old
– Baby
– Disability
• Laziness
– Rain
– Cold
– Traffic
Marketing Management-Group Report-DorMart
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Positioning
• Professional
– traditional supermarket
experience
– transportation
• Easy
– Order online, Phone
calls, FAX
– Pre-view e-DM
• Service
Marketing Management-Group Report-DorMart
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Financials, Budgets, and
Forecasts
Break-even Analysis:
Break-even Analysis：
＄：1,000
Sales Break-even
＄15,000
Assumptions：
Average Per-Order Gross
Margin ％
Average Per-Order Variable
Cost ％
Estimated Fixed cost
Marketing Management-Group Report-DorMart
20％
80％
＄3,000
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Sales Forecast
Sales forecast
Sales
Year 1
Fresh Food
$
Year 2
4,600 $
6,420
Year 3
Year 4
$ 9,500 $ 13,800
Commodity
$ 5,120
$ 8,133 $ 10,345 $ 14,205
Total sales
$ 9,720 $ 14,553 $ 19,845 $ 28,005
Direct Cost of Sales
Fresh Food
$
3,680 $
Commodity
$
4,096
Total Cost of sales
5,136 $
$ 6,506
7,600 $ 11,040
$ 8,276 $ 11,364
$ 7,776 $ 11,642 $ 15,876 $ 22,404
Marketing Management-Group Report-DorMart
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Expense Forecast and
Contribution Margin
Marketing Expense Budget
Marketing Expense
budget
Year 1
Web site
$
Year 2
Year 3
Year 4
300 $
100 $
100 $
Advertisements
-
-
-
-
Printed Material
Total marketing
Expenses
Marketing
Expense/sales
-
-
-
-
300 $
100 $
100 $
100
3%
1%
1%
1%
($189) $
869
$2,501
-3%
4%
9%
Contribution Margin
Contribution
Margin/Sales
$
($1,356)
-14%
Marketing Management-Group Report-DorMart
100
25
CONTROLS
Revenue: monthly and annual
Expenses: monthly and annual
Customer satisfaction
Customer analysis
New product development
Marketing Management-Group Report-DorMart
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Implementation Milestones
Milestones
Milestones






Marketing plan
completion
Web site completion
Advertising
campaign
Marketing activities
First batch:
Taipei ,Hsin-chu
Second batch:
Tao-yuan, Chung-li,
Tai-chug, Taiwan,
Cashing
Plan
Start
Date
Finish
Date
1/1/08
2/15/08
1/1/08
Budget
Manager
Dept..
$0
George
Marketing
3/31/08
NT$1,000,000
George
Marketing
2/1/08
6/30/08
NT$300,000
George
Marketing
4/1/08
12/30/08
NT$300,000
George
Marketing
9/1/08
George
9/1/10
George
Marketing&
Related
managers
Marketing&
Related
managers
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Marketing Organization
 The first will be to put T-bar, posters and
broadcasting within the supermarkets .
 The second marketing method will be
advertisements placed in numerous channels.
On line channels: Yahoo, Google, MSN, Yam, etc
Other channels : TV commercials, newspaper,
magazines, radio broadcasting, and
credit card pamphlets
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Contingency Planning
Where: Busy cities such as Taipei and Hsin-chu
How :DorMart has many years of experiences, we
have original customer already and would
like to enlarge the guest group
Who :who do not have the time to go shopping,
who is not convenient to go shopping
( the elder, disabled one),
who don’t have transportation vehicle
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Thank you for your listening.
Marketing Management-Group Report-DorMart
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