We realise that it costs 5 times more to attract a customer than to retain one.
To that end, we will operate under the principle that our best marketing is an exceedingly satisfied customer. While the industries we operate in are large, reputations play an important part. We also realise that the main customer will be the students from China and other oriental countries. To make good relationship with them, we are going to contact with the corresponding societies, such as Chinese (Hong Kong, Taiwan) society, Malaysia society, Singapore society etc.We will give their members 10% discount. We will also plan to provide some special food, for instance, Peking duck and mooncake, on special days, such as spring festival and Mid-Autumn day etc. We offer 10% discount when students spend over 10 pounds.
This will encourage they spend more and will not make a big difference on our profit. We will provide some simple cooking instructions and tips leaflets for those who are interested in Chinese cooking. I hope these would increase the number of our customers.We offering the member of Film society, Warwick Raw (University newspaper) and University Radio Station 10% discount and meal vouchers, and they will advertise for us through their brochures, weekly newspapers and radio broadcast. We will advertise for Chinese restaurants, by doing that, our employees will be given free meal vouchers. We will also use words of mouth, posters and societies’ BBS. The commercial website of Cathay YA will be developed at the start of second year, which could be a very good way on helping increasing our product services.
We offer 5% discount when people come up with a ticket from Arts Centre. Due to the large amount of visitors of Arts Centre, offering discounts will help us attract customers outside university. See the appendix 4. In a word, at the first two years, we are not expecting large profits. Instead of that, we offering lots discounts and vouchers. And we believe that will help us conquer a big market share on retail. Most of the goods will be supplied by the importers of food, one of them is “Far Orient Food Ltd Co” who is the professional oriental food importer and located in Birmingham.
It is the main supplier of some big Chinese food supper market, such as “Day in company” in Birmingham, and “Dongxi supermarket” in Coventry. It also provides free delivery if the order is more than 500. To save money and time, free delivery will be great helpful for us, thus we are going to order the goods once per month to ensure the total value exceed 500.
New products will be introduced according to our monthly selling analysis or students demand. We will try to supply everything students want from us.After the business set up, a further research will be made to find out what are the customers really want, especially the demand for some traditional Chinese food. Such as hot pan seasons, tea eggs, and dumplings.
Some of them can be made by ourselves directly such as tea eggs due to the simple making process, and some things need us contact with the importer to talk about the possibility. Wen Gao, I am a undergraduate of Warwick university, study computer science.I have retail experience and undertook training on time management and teamwork.
I am a very creative person and I have designed logo and trade mark for my business. Rachel Pang, has banking and marketing experience. Lei Diao, computer science graduate, will take charge of creating and maintaining a website of Cathay YA and also help on checking-out.
We are three very enthusiastic, motivated hard working persons. The working environment is full of encouragement and we enjoyed working with each other.The majority of the loan will be required to buy stocks to fill up the shelves. 50% of the loan will be spent in the start up year on wages, advertising, electrical ; heating bills and other operational costs. There are not many employees at first quarter, as soon as the business grows; we are looking for employing more people.
They will be paid at 4. 50 hourly and have 20% discounts and meal vouchers. Short term view: we will be able to repay the loan from the last quarter of the start up year.We will pay back 2000 with interests at the end of every month. By the second month of the second year, we will have all loan paid back.
Long term view: Founders are preparing to work very hard and lower down the life standard. At the first two years, we have the advantages of location and competitive products; therefore, I would expect a steady growth at the next following two years. After this, we will have to work harder for the downturn. (see Appendix – 2 years Profit and Lost forecasts)