PAD 025 Introduction to Business Environment

1. PAD 025Introduction to Business Environment A new product with next year’s promotion plan Chan Kam Chun (PAD08373) Yip Ming Fung (PAD08402) Lau Nga Man (PAD08375)To Ngai Chun (PAD08201) Lo Chun Man (PAD08184) Kwok Ho Sing (PAD08195)

2. Flow • Company Profile • Structure • New Product • Research and Development • Competitive advantage • Marketing research • Business environment • Promotion plan • Customer service • Warehouse • Operation performance • Monitoring and evaluation • Future development prospects

3. Company profile Name : Grace Company Ltd. Headquarters : Hong Kong, China Sector : Retail cosmetics and beauty services Product : Magic Liquid (perfume) Address : Cheung Sha Wan Phone no. : 23232323 Office hour : 10 a.m. – 6 p.m. Email : admin@grace.com Website : http://grace.justoshare.com

4. Nature of business Magic Liquid Production

5. Structure Grace Company Limited CEO (Kwok Ho Sing) Accounting (To Ngai Chun) Warehouseman (Yip Ming Fung) Research and Development (Lo Chun Man) Customer Service (Lau Nga Man) Marketing Department Marketing Research (Chan Kam Chun) Promotion (Kwok Ho Sing) Publish Relations (Lau Nga Man)

6. Product Magic Liquid Female Duration ~5hours Feature Refreshing (提神) Anthelmintic action (驅蟲) Deodorant (防臭) Anti Seasickness (防舟車暈浪) Antipruritic (止癢) Sterilization (滅菌) Smelled of flowers (花香) Male

7. Research and Development • Research • Natural ingredients • Various feature • Smell duration • Development (with Chinese University of Hong Kong) • Find out more useful essence from plants • Refine these essence • Investigate endurance • Government approvable

8. Competitive advantages More feature and portability than other similar product

9. Marketing research The customer can buy the product between $20-140 The average is around $55 About 70% will try our product

10. Promotion Plan • Business Environment (Internal and External) • Segmentation (Hong Kong) • Target customer(18–40 years old) • Positioning (Beauty services) • 4P • Product (Magic Liquid) • Price ($50) • Place (Watsons, Mannings, Drugstore, Personal Care Store) • Promotion (Exhibition, Sales, Advertisement) • Monitoring and evaluation

11. Segmentation Target customer Age: Between 18-40 Income: Higher and middle income group

12. Business environment (Internal) How the “Customers” affects our company : • Customers are powerful • Our income depend on the customers • Trend will raise our company's income • Nowadays, more people pay attention to their appearance. Our product’s functions, such as Refreshing, Antipruritic, Sterilization can help them to be more attractive.

13. Promotion Plan (Exhibition) • Activities • Held exhibition in different location • To sponsor some artists or public welfare activities • Customer can buy the products with preferential price • Give our samples and information of our product at the downtown area • Purpose • Let more people know this new product is existed • Increase their desire to purchase • Build up our brand • Let more people know our product’s features • Activities • Internet questionnaire to take our product sample • Watsons, Mannings, Drugstore can add $5 to exchange our product sample • Purpose • Let more people know this new product is existed • Build up our brand • Explore customers response about our product • Whether our products have the market

14. Promotion Plan (Advertisement) • Advertisement • Advertisement on Headline daily (Quarter Page) • Post our poster at the Watsons, Mannings, Drugstore • Yahoo online advertisement • Advertisement on Road show frequently • Purpose • Attract people • Let more people know our product’s features

15. Promotion Plan (Sales) • Sales • Rent a corner to show our products at Watsons, Mannings, Drugstore, Sasa Beauty, Bonjour • Use pinky and blue color to design the corner because we have woman and man line • Use promoter to introduce and sale our product in supermarket • Purpose • Build up our brand • Develop product awareness • Raise the sales of magic liquid

16. Promotion Plan (Sales) • Drawing • When buy our product, they can have a draw • Join as member and login to our website, enter the • code and location of shop to have a draw • 1st prize (2people) two plane ticket to Tai Wan - 4days • 2nd prize (5people) NDSL • 3rd prize (20 people ) $300 shopping coupon • Purpose • Let more people know our product deeply • Develop product awareness • Raise the sales of magic liquid

17. Action Plan • January • Internet questionnaire and send sample • Contact with SaSa tosend sample • February • Find model, exhibition, contact with people who relevant to the • exhibition, contact the head of the exhibition place • Mid-February • Advertisement, contact with the advertising department • March • Put promoter to the shops • Contact Watsons, Mannings, Drugstore, Personal Care Store and put our products in those shops

18. Customer service • Friendly to our customer • Ways to collect customer opinions • Questionnaire • Phone Call • Deal with complaints • Understand customer’s want • Contact with other departments toresponse the customer’s ideas

19. Warehouse • Receiving, storage, inspection, inventory and distribution of Magic Liquid • Preparation of purchase orders and keep a record of purchases • Management of the goods warehousing and storage, and write down the relevant records • Contact with the shop, to arrange transmission of goods • Stock monitor and ensure stability of the goods • Keep warehouse clean and tidy

20. Operation performance Cash from boss: $3000000 First year: -$557350 We will get profit at second year first quarter

21. Monitoring and evaluation Establish Standards (45000 sales volume) Does match standards? Adjust Standards - Set down the sales volume - Reduce the price - Improve our product Continue Current Activities - Produce more product - Various series

22. Future development prospects • Magic Liquid will still be the base of the product • Reduce the unnecessary • More advertisement strategy • Produce more Smell (eg. fruit) • Produce different volume of product (eg. family use) • Produce different series of product (eg. Analgesia, Hidroschesis)