“Soup for Soul”

Providing different kinds of fresh and healthy soup with healthy food

Group 25

Group members:

Anna Ng, Wai Na (2001036109)

Cheung Chun Kit (2001441201)

Ng Tsz Lok Gary (2001048047)

Cheng Wai Yeung Richard (2001047172)

Presentation Run Down

Introduction

Reasons for starting “Soup for Soul”

Rationale

Marketing research and result

Existing market structure and analysis

Key success area

Characteristic and uniqueness

Target customers

Set up procedure

Presentation Run Down

5Ps Strategy: Product, Price, Place, Promotion, Position Staffing Budgeting Daily operation SWOT Analysis Anticipated problem and possible solution Prospect Personal feeling and learning Q & A session

Introduction

Starting a business—”Soup for Soul”

Supplying of a variety of healthy soup and other healthy food in a convenient way

Reasons for starting “Soup for Soul”

We like drinking soup and cooking high quality and long hourly cooked soup and share with othersSoup can be highly healthy, natural, with great varietySoup can make one to be relaxedDrinking soup is a traditional Chinese Culture and a cue to healthy body and mind

Reasons for starting “Soup for Soul”

Hong Kong people like drinking soup and they are becoming health conscious The working pace is fast, together with other reasons, which makes the habit of drinking soup is relatively less popular There is space for setting up “Soup for Soul”

News

News

Rationale

1. To provide a quick and convenient way for people to enjoy different kinds of healthy soup with high nitration

2. To promote the habit of drinking soup regularly so as to have a healthy body and mind

Marketing Research

Aim of marketing research: Aim of marketing research:

CustomersCustomers value and preference value and preference analysisanalysis

Giving relevant information on Giving relevant information on setting setting 5 Ps5 Ps

Existing market structure vs. the Existing market structure vs. the feasibilityfeasibility of “Soup for Soul”

Research methodology

Primary data• Searching in the internet

Secondary data• Questionnaires • By conducting telephone interviews and

survey in the internet• Sample target: Our target customers—

working population, aged range from 18-65

• Sample size: 100

Research result

78% like drinking soup

22 % do not like drinking soup

Factors that like and drink soup:

Staying healthy (84%)

Beneficial to health (87%)

Tasty (40%)

Personal preference (17%)

As a habit when having meal (25%)

Others (16%)

Factors that do not like and drink soup:

Unhealthy (55%)

Avoid being fat (56%)

Inconvenient to cook soup (66%)

Not tasty (43%)

Personal preference (29%)

Others (15%)

Favorite kinds of soup

Vegetable soup (20%)

Seafood soup (12%)

Meat soup (8%)

Soup for vegetarian (15%)

Functional soup (with Chinese medical ingredient)/soup that has specific beneficial effects on bodies (45%)

Ideal soup

Tasty (80%)

Stay healthy and fit (76%)

Beneficial to health (74%)

Stay young and beautiful (80%)

Improve sexual ability (32%)

No MSG (92%)

Others (12%)

Buying pattern

39 % would like to buy soup if their ideal soup is available in the market

61 % still consider other factors and do not sure whether they would buy soup if their ideal soup is available in the market

Factors to be considered to buy take away soup

Price—Reasonable, no huge difference between the price of ingredient and costKinds of soup –A variety kinds to be chosen Taste—DeliciousConvenient level—High and immediately availableFunctions of soup—stay beautiful and young, improve mental state, beneficial to health, improve sexual ability etc. Nutrition level—High Ingredient—Healthy, no MSG

The existing market structure

There 7 restaurants specialize in selling soup in Hong KongThere are 4 existing soup delivery services in Hong Kong since April 2004There are no restaurant specialize in selling take away soupSome restaurants provide soup apart from other food

Source: www.yp.com.hk

Restaurants specialize in selling soup in Hong Kong

1. Ah Yee Leng Tong 阿二靚湯Location: Quarry Bay, Mong Kok, Causeway Bay, Shau Kei Wan

2. Tai Woo Soup Restaurant 太湖靚湯小館Location: Shau Kei Wan

3. Ah Tai Rest 阿大靚湯飯店Location: Tsim Sha Tsui

4. Han Nya Tou Robatayaki 般若湯Location: Quarry Bay

Restaurants specialize in selling soup in Hong Kong

Soup specialized restaurants are less in Hong Kong

Demand is much larger than supply

Limited choices on the types of soup among the customers

Sources:

Result of our marketing research; www.yp.com.hk

Soup delivery services

Day Day Soup 日日老火靚湯Ah Suet Lan Tong 阿 雪 靚 湯 Smart Soup Workshop 靚湯工房 Soupdaily 靚湯日報

Soup delivery services

Order is needed to be made before a day, no immediate order can be made. Need to pre-pay for the package of the soup and the delivery servicescollection of the bowl of soup next dayLimited area for the delivery services

Source: http://www.daydaysoup.comhttp://www.suetsoup.comhttp://www.smartsoup.comhttp://www.soupdaily.com

The feasibilityThe feasibility of “soul and soup”

There is business opportunities…Few restaurants specialize in providing soup in Hong KongNo restaurants specialize in providing a variety kinds of soup in Hong Kong High quality of soup is not easily and immediately available, especially in CBDThere is huge space for starting “soul and soup”—A restaurant in CBD providing different kinds of long-hourly cooked and healthy soup

Key success area

Reasonable price —Price set according to the price ingredient and types of soup Choices —10 different types of soup can be chosen by customers Taste —Delicious with different tastes Convenient level —Relatively high, the take away soup is immediately availableFunctions of soup —different soup has different beneficial functions to health: stay beautiful and young, improve mental state, beneficial to health, improve sexual ability etc. Nutrition level —High, natural and fresh ingredient is used for cooking, no MSG added

Characteristics and Uniqueness

We emphasis on our product—different kinds of high quality, health and functional soup

A shop which specializes in selling take away soup in CBD

Caring both health and soul of our customers and potential customers

All soup being cooked for long hours, using various kinds of natural ingredient with no MSG added

Characteristics and Uniqueness

Conducting marketing research seasonally and make modification of the recipe and menu list accordingly Seasonally change of menu list and recipeProviding a variety kinds of soup, with different themes and functions seasonally Getting abreast of the taste of our customers and potential customers Employing experienced consultants and cooks to involve in our company Special and convenient packages for take away soup

Target customers

White collar office workersBusy, think cooking soup is tedious and inconvenient.

Could afford soup besides regular meal for lunch

A taste of soups with style

Want to stay healthy, pay attention to quality

Target customers

Other auxiliary customersTourists

Shoppers

Willing to spend money for taste and style

5Ps Strategy

5Ps :

Product, Price, Place, Promotion, Position

Position

Primarily: Middle class, bourgeois

(soups of $10 - 30)

Also: Up market

(for lavish soups ~$50)

Place: Address

32, Wellington Street, Central, Hong Kong

Place

Reason of the choiceBranch of the Queen’s Road Central

Near the MTR station exitsFlow of people is large

Lots of commercial centersthere are many white-collars in this area, which are our main target of customers

the shops nearby also provided different kind of customers

Place

Only one sit-in soup restaurant in this district

Not too much competition

Other kind of restaurant nearbyThe working population can enjoy a bowl of soup from our shop after their lunch

Fitness Center nearbyOur soup is a must!!!

Place: Location

Place: Internal Design

Place: Our store

Product

Mainly focus on soup that beneficial to health and fitness

Provide international style and taste to attract variety of customers

Regular modification of the menu list will be made according to the marketing research

Product: Menu list

Product: Menu list

Product and Price

Types of soup and price:

Daily Family Slow-cooked Soup $10

Soup for vegetarian $15

Nourishing Soup $20

Soup with International style and Taste $25

Functional and fitness soup $30

Luxury Soup $50

Product

After purchasing the soup, our customer can enjoy following by pay $2 more:

Noodle

Corn

Cracker

Vegetable

Yam bundles

Logo and Package

Use the name of our shop to create the Chinese word ‘soup 湯’

Promotion

Distributing Leaflet on the street

Human Advertising Plate

Promotion Week

Foretaste

Setup procedures

Rent a shopDecorationApplication for licensesWater, electricity and gasBuy cooking utensilsContact suppliersHire personnelAdvertising

Application for licenses

“Business Registration” from Inland Revenue Department

“Food Factory License” from Food and Environmental Hygiene Department

“Environmental Permit” from Environmental Protection Department

Staffing

6 full times4 full time day shift

2 full time night shift (1 chef, 1 worker)

4 part times

1 consultant oversees recipes

Staff structure

4 part time workers 1 night shift chef1 night shift worker

1 consultant

Owners (4 full time day shift staff)

Budgeting

Startup expenses:Rent (2 months deposit and 1 month prepayment) $225,000

Cooking utensils, installations and utilities $100,000

Equipments (e.g. cash registers, refrigerators) and fittings $100,000

Contracts with suppliers $20,000

Promotion and miscellaneous (e.g. licenses) $55,000

Total $500,000

Monthly projected balanceRevenues Expenses

Sales: Packaging $10,000

Family $10 x 4800 Ingredients $72,000

Luxury $50 x 1200 Utilities $30,000

Nourishing $20 x 2880 Rent $75,000

Functional $30 x 2880 Miscellaneous $5,000

International $25 x 2400 Salaries:

Vegetarian $15 x 1200 Consultant $10,000

Others $2 x 2400 Chef $20,000  Night shift $10,000

Part time $5,000 x 4

Full time $10,000 x 4

Total: $334,800 Total: $292,000

Daily operationsTime Remarks Labour

09:00 – 10:00 Prepare for opening Full time (Ft): 4,

part time (pt): 0

10:00 – 11:00 Open at 10:00 Ft: 4, pt: 0

11:00 – 14:00 Lunch hour Ft: 4, pt: 4

14:00 – 15:00 Prepare for tea time Ft: 4, pt: 4

15:00 – 17:00 Tea Ft: 4, pt: 4

17:00 – 20:00 Off- office hour Ft: 4, pt: 0

20:00 – 21:00 Cleaning and closing Ft: 4, pt: 0

21:00 – 09:00 Overnight duty Ft: 2,pt:0

SWOT Analysis

Strengths:Selling take away soups — innovative

Customers can enjoy tasty, healthy and long hourly cooked soup in a relatively convenient way

Seasonal change of menu list can keep abreast of the current taste of customers and further capture a larger share in the market

SWOT Analysis

Weakness:Selling take away soup and healthy food only—may be difficult to build up customer loyalty

Fluctuate flow of people in CBD--relatively less customers besides lunch time, tea time

Hot soup maybe less popular in summer

SWOT Analysis

Opportunities:People are becoming health conscious

The working pace is fast in Central convenience is the key

Innovative soup and cold soup can be a new trend in HK

SWOT Analysis

Threats:New entrance

Competitions with the existing food services

Anticipated problems & solutions

Hygiene Issue tidy packing, clean everyday

Image promotions, corporate identity

Customer loyalty discounts

Current trend and taste of our customers continues marketing researches

Prospect

Image building popularity

Branches

Chaining stores in CBDs

Personal feeling and learning

Anna Ng, Wai Na:

A simple business is a complicated business

Many practical consideration and problems

Starting a business need to plan from different perspectives

Analysis the environmental factors and having a appropriate business ideology are vital

Learning from planning and discussing

Personal feeling and learning

Cheung Chun Kit :Difficult, but interesting

During the discussion, there will be some quarrels. We learn to solve the problem through rational discussion.

The process of building up a business is much more complicated than imagination.

Personal feeling and learning

Ng Tsz Lok Gary:Starting a business is challenging, but interesting

It’s a valuable experience to combine different opinions together

Personally, I prefer simple and I believe in simple business

Personal feeling and learning

Richard Cheng:Starting business always depends on budget

We could think big but reality dictates after all

Business styles of partners are crucial

Q & A session

Thank you