Chow Yin wai Marketing Management Assignment 1 Company : Kampery Development Ltd.

Introduction : Kampery was established in Hong Kong in 1993. Originating as specialists of coffee and tea, Kampery has expanded the business to include the manufacturing, wholesales, retail and import/ export of coffee, tea, coffee machines, dairy products, health and organic products etc It is a one-stop business solution, which increases their competitiveness in the market place. Now the company into different restaurants & food retail business. Kampery groups headquarters is located in Hong Kong and have offices in China (Beijing, Shanghai, Guangzhou, Shenzhen, Foshan) and Canada, hiring over 800 staffs. ( source : www.kampery.com.hk ) Micro Environment : Company The company has 8 departments : marketing, logistics, administration, production, sales & customer services, finance & accounting, warehouse and transportation. Kamerys business organization structure are both vertical and horizontal differentiation. From production to warehousing to distribution, each function has specific department to deal with, this total and closely linked business structure enable kambery to achieve the high cost efficiency, and shorten the time for new product development. Kampery management also value the development and training of its staffs, the company organize many company activities and encourage the staff to participate, and plus increase the team spirit among the staffs. ( source : managing markets 2004, the Chinese University Press )

Suppliers organic food from the companys own and operate organic vegetable farm in Sheung Shui. They do not use any pesticides, herbicides or chemical fertilizers to grow the vegetables. With its own tea crop field in China provinces such as Yunnanm, Guanxi and Guanndong, Kampery has stable supply sources for its tea products, and its close monitor of the supplier base ensure high quality of the tea. ( source : www.kampery.com.hk )

Customers Business market : Resellers : ParkN Shop Supermarkets they target the general public, through the good network of Shops, and convenience of locations, it capture the large customer base in the neighborhood and offer them at low price. (since the supermarket procure in large volume and so the price is low). It serve as the major grocery store for the general public. McDonalds China Kampery provide the private label tea bag and coffee, with McDonalds large network of outlets and brand name, kampery capture a large market share in this area in Greater China. The McDonald brand are well accepted by the kids and their parents among the population.

Consumer market : Retail shops a. F.R.E.S.H. Caf a coffee shop and art gallery. Artist can display and sell their art pieces in the caf, while customer can enjoy a fine cup of coffee and at the

same time enjoy watching the performance from artist, and appreciate the art pieces on display. Its unique feature satisfy the sector of artistic customers as a place for high tea and networking among the art lovers b. Coffee Chateau is a well known specialized retailer of coffee beans, tea,

coffee machines. Its wide variety of high quality coffee beans and coffee/ tea equipment from around the world serves as one stop store for the coffee and tea lovers. Even the hard to find coffee are available. c. Dai Pai Dong Restaurants originated as low cost sidewalk food stalls in

the 1950s, Dai Pai Dong Restaurants provide reminiscent flavours of the past with traditional menu and milk tea, coffee, and a mix of milk tea and coffee as the Yuan Yang. Targeting the age group of 20s to 50s, willing to spend more money at a comfortable eating and socializing atmosphere, Dai Pai Dong restaurant appear as a more stylish and uptown feel than the traditional Hong Kong tea restaurant, and their menu with 20% to 30% higher price.

d. Organic Garden Farm

own and operate an organic vegetable farm in

Sheung Shui, the largest organic farm in Hong Kong. Promoting organic agriculture, the products are sold at the farm and major supermarket stores across Hong Kong. Organic Garden also organize educational farm classes to the public, individual or groups. Health-conscious customers like the products which are free of pesticides or chemical fertilizers.

e. Green Dot Dot Shops

engage in the wholesales and retail of its own

brand and overseas branded health and organic products in Hong Kong. Green products are free from pesticides, preservative, artificial coloring and chemical fertilizers.

The shopss theme concept is green environmental, with healthy lifestyle, natural products and environment friendly. The ideas advocate by green environmental groups with idea of environmental protection and sustainable growth. ( source : www.kampery.com.hk ) Competitors The major competitors Pacific Coffee, Starbucks, Tsit Wing Unilever, Pokka Caf, and the numerous local coffee cafes. While Starbucks and Pacific coffee provide a comfortable environment with quality coffee to its higher end white collar customers, Coffee Chateau also provide , Lipton brand own by

comfortable environment with unique high quality coffee at a more affordable price to its customers. Kamperys FRESH caf target another qroup of customers art lovers with unique art pieces at display. Therefore Kampery understand the competitors plus know its own position and needs of targeted customers. While the provide all in one coffee bags and Yuan Yang bags Dai Pai Dong series

HK styled sold at convenient

stores and supermarket, which share the local market with competitors like Tsit Wing Coffee bags , but with more emphasis on the Hong Kong style cultural background.

( source : managing markets 2004, the Chinese University Press )

Macro Environment : Cultural Environment Kamperys brand food products reflect the Hong Kong food culture in the past with a nowadays package :

Dai Pai Dong Products Dong style (sidewalk food stalls)

restaurant serving menu of traditional Dai Pai

Dai Pai Dong products sell at super market and convenient store : 3 in 1 coffee, Yuan Yang a unique Hong Kong style mix of coffee and tea

Milk tea, green tea, roasted rice tea etc

Economy The Hong Kong economy has affected by the global economy, while the earning power decreased in the general public after the 2008 global financial crisis, however there remain a group of high earning white collar class who are willing to spend a bit more on the safer and healthier green organic food. Kampery target the different segment among the different spending power customers. The Dai Pai Dong restaurant provide a economic place to serve the general spending power customers. The organic vegetable and healthy green nutritional products from the Organic Garden Farm and Green Dot Dot Shops targeting the higher spending power of health conscious customers.

Technology Kampery has invested in training their staff as master coffee maker. They have researched different tastes among the different markets such as Hong Kong and China and blended coffee accordingly, plus blended coffee is formulated by Kampery coffee specialists, a private blend can also be created to clients desired taste. Kampery also specializes in the import & export of the highest quality coffee machines from around the world, investigating the latest coffee equipment and send their staff to learn the new

equipments, provide excellent after-sales service to maintain and repair the coffee machines. Locally, the use of Octopus to paid at the Dai Pai Dong restaurants provide the convenience of e-money to their customers, and the use of POS systems to take order from the menu directly to the kitchen increase the efficiency of operation at the restaurants.

Regulation Food safety and health : product line include selling organic vegetable grow in their own organic farm. Low sodium and no preservatives, which can satisfy the nowadays increasing health concern customers. Food free from artificial coloring and chemicals. Since government passed the labeling regulation, Kampery also imposes the ingredient label to all its packaged food product.

Demography Targeting the younger customers, well educated, white collar, especially female group who is health concern, higher spending group who are willing spending 20 30% more in getting high quality food.

Natural Environment The organic farm provide organic farming experience and education to the public and environmental group who advocate green lifestyle. The greendotdot shops are engaging in the wholesales and retail of green items from around the world. It carry brand name of food and non-food items that represent healthy, natural products such as organic and green food.