from paris to hong kong1 geu0411 senior seminar presentation from paris to hong kong agnes fok janet...
TRANSCRIPT
From Paris To Hong Kong 1
GEU0411 Senior Seminar Presentation
From Paris To Hong Kong
Agnes FokJanet ChungKelly Yip
Group 148 Y.Y. Wong
From Paris To Hong Kong2
Content
I. Introduction of our topic
II. Introduction of Paris Café
III. Online survey on “Youngsters’ Favorite Gathering Places”
IV. SWOT analysis of Paris Café
V. Conclusion
VI. Discussion
From Paris To Hong Kong 3
I. Our Topic
From Paris To Hong Kong4
Introduction
Coffee cultureWhat do coffee shops sell?Collective conscience: From Paris Café we look into the trend of coffee in HK
From Paris To Hong Kong5
Video of HK Coffee Shops
From Paris To Hong Kong 6
Timeline of HK Coffee Shops
Activity 1
From Paris To Hong Kong 7
II. Paris Café
From Paris To Hong Kong8
Introduction
A new local coffee shop, since 1999Actually started up by the owner who run a local tea-restaurant before.One of the leaders in operating a coffee shop upstairs.Operation with a unique concept of a leisurely coffee drinking experience.
From Paris To Hong Kong9
Introduction
One of its special characteristics is the relaxing home feeling like shop decoration, friendly services and home-made products The first local chain of coffee shop with a franchised systemSeparated into Paris Café and Paris Zone8
Paris Café: mostly on ground level Paris Zone8: all upstairs
From Paris To Hong Kong10
Locations
Paris Zone8 Jordan Prince Edward Mongkok Tsim Sha Tsui Causeway Bay
Paris Café Mongkok Hung Hom Tsim Sha Tsui Kwai Fong To Kwa Wan Sheung Wan Causeway Bay Central Lan Kwai Fong Wan Chai Fortress Hill
From Paris To Hong Kong11
Video of Paris Café
From Paris To Hong Kong 12
III. Online Survey
From Paris To Hong Kong13
Survey
We did an online survey on “Youngsters’ Favorite Gathering Places”
128 respondents average age: 21.8 about two-third are females
From Paris To Hong Kong14
Features of Youngsters
Income or patty cash: mostly less than $2000Usually spend $81-100 each timeUsually spend 4-8 hours with friends per weekOften spend 3-4 hours with friends in each gatheringThey prefer coffee shops (apart from restaurants, which is the most favorite gathering place)
From Paris To Hong Kong 15
IV. SWOT Analysis
From Paris To Hong Kong16
SWOT Analysis
Analyze Paris Café by its… Strengths Weaknesses Opportunities Threats
From Paris To Hong Kong17
A. Strength - Franchise
From Paris To Hong Kong18
Good Suppliers
Get supplies from well-known suppliersGuaranteed / higher quality of coffee materialsBoth coffee essentials and the equipments
From Paris To Hong Kong19
Good Suppliers
Paris- Tsit Wing: The largest tea and coffee producer in HK Other smaller cafes eg: Small Potato- Coffee beans: grocery- Machine: ???? (let’s make a guess)
From Paris To Hong Kong20
From Paris To Hong Kong21
From Paris To Hong Kong22
From Paris To Hong Kong23
From Paris To Hong Kong24
Bargaining Power
Higher bargaining power towards suppliers- Paris Café as a whole becomes a large buyer
- Can ask for bulk discounts- Cheaper cost of coffee beans and groceries- Lower operating costs
From Paris To Hong Kong26
Lower Cost Better Quality
Lower average costs (Price)
- Cost-leadershipAllows more varieties (Quality)- Longer Menu- Attractive offers: $ 20 tea sets
From Paris To Hong Kong27
Price-Quality Positioning
Competitive prices with high quality of products and services
From Paris To Hong Kong28
Differentiation
Low entry barrier numerous entrants hypercompeitionsInstant name recognition differentiates Paris from the thousands manyEasy market penetration - First mover advantage- Build customer loyalty
From Paris To Hong Kong29
Networking Effect
Higher promotional effectiveness- eg: premium cards / discount cards can be used
in various locationsCustomers being locked in and face higher switching costsCustomers’ retention
From Paris To Hong Kong30
Locations
From Paris To Hong Kong31
Market Information
Widespread of branchesShares demand trends & competitors’ actions in each region Understanding of current market information
From Paris To Hong Kong32
Collective Wisdom
Favors product development and differentiation opportunitiesMore access to new know-how
From Paris To Hong Kong33
Technological & Management Support
How to make coffee AND how to run a businessSkills
Full training to franchisees and their staffs for three weeks before the opening of stores
Machines Recommendations on the purchase Usage and maintenance of coffee machines and accessories
From Paris To Hong Kong34
Technological & Management Support
Management backup Monthly management consultations Management backup whenever needed Higher survival rate in the highly competitive market
From Paris To Hong Kong35
Upstairs Market
First mover in upstairs market- Save rent Residential building- Reconfirms its mission
home feeling more far away from the street
From Paris To Hong Kong36
Locations
Paris Zone8 Jordan
Prince Edward
Mongkok
Tsim Sha Tsui
Causeway Bay
Paris Café Mongkok Hung Hom Tsim Sha Tsui (Austin Ave)
Kwai Fong
Tsim Sha Tsui (Ashley Rd) Sheung Wan Causeway Bay (Jardine Bazaar)
Central
Lan Kwai Fong Wan Chai
Causeway Bay (Gloucester Rd)
From Paris To Hong Kong 37
Matching Games
Activity 2
From Paris To Hong Kong38
Which coffee shop is it?
From Paris To Hong Kong39
Which coffee shop is it?
From Paris To Hong Kong40
Which coffee shop is it?
From Paris To Hong Kong41
B. Weaknesses
From Paris To Hong Kong42
Weaknesses
Lack of uniquenessLack of flexibilityDifficult to maintain standardized qualityChain reaction
From Paris To Hong Kong43
Weaknesses
Lack of uniqueness No creative ideas and innovation No own theme
Magic Eleven Dolly Café
From Paris To Hong Kong44
Weaknesses
Lack of flexibility Standardization leads to slow response to market change• e.g. types of drinks• Decoration stick to the theme about Paris
From Paris To Hong Kong45
Weaknesses
Difficult to maintain standardized quality Services Home-made food• e.g. cakes
From Paris To Hong Kong46
Weaknesses
Chain reaction If standardized provision of services are not carried out strictly Clients may have different experiences in different shops Bad impression
From Paris To Hong Kong47
C. Opportunities
From Paris To Hong Kong48
Opportunities
Emergence of Starbucks in 2001Expanding market
from Dundas Street to Coffee Street
Demand from the online survey
From Paris To Hong Kong49
Opportunities
Where do you usually meet your friends (Q.8)?
0
10
20
30
40
50
60
70
80
90
100
Fastfood
restaurant
Restaurant Cantonese
Restaurant
Taiwanese
Drinks
Restaurant
Chainstore
Coffeeshops
Independent or
Upstairs
coffeeshops
Others
From Paris To Hong Kong50
Opportunities
What concerns you most in deciding where to meet (Q.9)?
Price
Food
Drinks
Environment
location
service
minimun charge
amount of time
recommendation
others
0
10
20
30
40
50
60
70
80
90
100
Price Drinks location minimun charge recommendation
From Paris To Hong Kong51
Opportunities
How much money do you usually spend on gatherings (Q.7)?
0
5
10
15
20
25
30
35
<$21 $21-40 $41-60 $61-80 $81-100 $101-120 >$120
From Paris To Hong Kong52
Opportunities
How much time do you usually spend on your gatherings (Q.6)?
0
10
20
30
40
50
60
70
<1 hr 1-2 hr 3-4 hr 4-6 hr >6 hr
From Paris To Hong Kong53
Opportunities
The most important factor to go to coffee shops: Amount of time Amount of space Not Coffee
From Paris To Hong Kong54
D. Threats
From Paris To Hong Kong55
Threats
Low entry barriersLow switching costStrong competitors (e.g. Starbucks)Unstable market
From Paris To Hong Kong56
Threats
Low entry barriers Easy to get into the coffee shop market Others can follow easily More and more competitors
From Paris To Hong Kong57
Threats
Low switching cost Consumer face low switching cost Can easily switch from one coffee shop to another without any loss
From Paris To Hong Kong58
Threats
Strong competitors Starbucks Pacific Coffee Upstair coffee shops Survey
From Paris To Hong Kong59
Threats
Unstable market Depends on the current market trend Can change anytime
From Paris To Hong Kong 60
V. Conclusion
From Paris To Hong Kong61
Conclusion
SWOT analysis: opportunities (social context) made possible the rise of Paris Café
It’s only a trend of coffee-drinking Coffee culture doesn’t take root in Hong Kong
Do you agree? Do you think coffee culture will take root here? And why?
From Paris To Hong Kong 62
Discussion