FASH 763 Professor. Alessandro Cannata Chuhao Zhou. Min Kao. Jie Yuan
Table of Contents
1.0 Executive Summary 2.0 Introduction 3.0 Situational Analysis - Secondary Research 4.0 Primary Research 5.0 Marketing Strategy 6.0 Media Strategy 7.0 The Creative Idea 8.0 Campaign Evaluation 9.0 Closing Recommendations 10.0 Appendix
1.0 Excutive Summary
We aim to open the first H&M Cafe in Seoul, the coffee-obsessed city in South Korea, where drinking coffee and spending time at cafes are seen as status symbol. Although fast fashion foreign brands have been popular among South Korea young consumers, teenagers are still not the customer base of H&M in South Korea. Therefore, by attracting them into H&M Cafe, which is an in-store store just located in H&M retail store, to hang out and drink coffee with friends, we strive to link them closer to H&M and thus pull them into the store and purchase. Under the condition of ecommerce growing bigger in the market and consumers are so used to shopping online, creating unique store environment and enhancing shopping experience will be crucial to expand the traffic in-store and prolong the time-period of consumers’ stay. Consequently, our future plan is to open H&M Cafe to strengthen in-store shopping experience and our value added services to our target markets.
2.0 Introduction
Our IMC plan is to open a cafe as an extension of H&M to attract new, younger segments in South Korea, where the culture of drinking coffee and spending time at coffee shops is strong. Through the attraction of the café to the younger customers, we indirectly pull them into H&M retail stores to become a new customer base of H&M. Since South Koreans are highly addicted to the Internet and the rate of owning smartphones is high, we focus on the use of online media, especially social media. We will put short videos of H&M Café on the Internet to appeal to this new audience. Prints and outdoor billboard advertisements will broadcast the information about our launch of H&M Café. Our new mobile application of H&M Café will be our medium to get more customized connection with our target customers; at the same time, the application will be the convenient ordering and delivery tool for the café. The long-term goal is to open H&M Café globally to provide this value-added service to all H&M customers as an add-on revenue source.
3.0 Situational Analysis 3.1 SWOT Analysis
Weaknesses: Strengths: • • • • •
Strong financial performance Positive for future expansion and group’s business opportunity Strong brand power High worldwide brand awareness Large number of customers
• • •
Lack of e-commerce in South Korea No experience in food & drink market Negative report about supply chain may affect brand image
*The following analysis is based on information from “Consumer Lifestyle” (2015)
Opportunities: • • • • • • • • • • • • • • •
Organic growth initiatives Positive outlook for e-retail market Fast fashion brands, including H&M, are extremely popular in South Korea Coffee remains the stimulant of choice In 2015, the average South Korean local drinks coffee 12.2 times per week Young South Koreans favor foreign retailers Coffee shops are popular with business people, college students, and mothers Malling culture (meeting friends and family at shops to discuss fashion trends and exchange ideas before buying online) is popular Eating out is popular among South Koreans South Koreans have the culture of making time to meet with friends and colleagues South Koreans are open to foods from other countries Seoul leads coffee consumption in city areas Coffee is the most preferred hot drink in South Korea compared to tea Some girls would even skip meals to afford coffee from a cafe Drinking coffee and being seen walking with a cup of coffee in hand are status symbols
• Being spotted at coffee shops is also a status symbol as it showcases the ability to afford the high-priced fare • The pricing of other chained specialist coffee shops is high • All categories of cafés/bars except for specialist coffee shops had negative growth in 2014 • Chained specialist coffee shops recorded high growth in 2014 (11% value sales growth, 15% outlets number growth) • By 2019, value sales of chained specialist coffee shops are expected to reach 26% of total café/bars market • Online and smartphone application delivery services are growing • Internet retailing increases by 7% • Mobile internet shopping grows rapidly
Threats: • •
Competitors of other chained specialist coffee shops Consumers’ changing preferences will affect H&M Coffee business operations. The changes include consumers’ tastes, diet habits, trends, product packaging preferences, etc.
3.2 Competitor Analysis
According to “Consumer Lifestyles in South Korea,” Seoul is the leading city of coffee consumption, with coffee houses on the ground floor of many buildings. It is reported that Seoul has 284 Starbucks locations (“South Korea Country Pulse”). While cafés and bars experienced value sales and outlet numbers declined in 2014, chained specialists had a sharp growth with 11% of value and 15% of volume increase (“CafeBars in South Korea”). The reason that independent specialist coffee shops had negative growth are the lack of strong brand power and low customer loyalty, which shows that these two factors are essential to compete within the South Korean cafés and bars market (“CafeBars in South Korea”). According to “Consumer Foodservice in South Korea,” delivery service on smartphone applications experienced positive growth with the convenience of shopping. Uniqueness of ingredients and frequent variation of menu and products are also important elements within the competitive landscape. Besides coffee shops, instant coffee and hard pod coffee are also growing in the market share, with Nespresso as the leading brand of this category (“Consumer Foodservice in South Korea”). We divided our competitors into direct and indirect, which are specialist coffee shops in South Korea and international fashion brands who also open coffee shops and share similar target consumers.
Specialist Coffee Shops Caffe Bene A Korean-base chained coffee shop which started in 2008. As of September 2014, the company has 1860 stores in 14 counties (Trieu), including 243 stores in Seoul. Caffe Bene offers various coffees, beverages, desserts, sandwiches and other savories to customers. The company’s core value is to keep innovation and trust (Caffe Bene Official Site). According to Forbes, the company reached $180 million in revenue in 2013 and expects to open 10,000 stores across the world by 2020 (Trieu, 2014). • • • •
Stores in Seoul: 243 Company share: 5.2% (2014) (“Cafe/Bars in South Korea”) Average coffee price: KRW 4,300 (USD 3.75) Social media: Facebook (336,579 likes), Twitter (40.5k followers), Instagram (130 posts, 1798 followers)
Starbucks Starbucks Corporation is the premier roaster, marketer and retailer of specialty coffee in the world, operating in 65 countries and with 284 stores in Seoul, South Korea. • • • •
Stores in Seoul: 284 (2014) Company Share: 9.0% (2014) (“Cafe/Bars in South Korea”) Social media: Facebook (705,800 likes), Instagram (248 posts # Starbuckseoul), Twitter (746 followers) Average coffee price: KRW 4,000 (USD 3.48) (Starbuck’s Official Site)
The Coffee Bean & Tea Leaf First opened in South California in 1963, The Coffe Bean & Tea Leaf aims to provide high quality with world’s most vibrant flavor and only selects the top 1% Arabica coffee beans (The Coffee Bean & Tea Leaf’s Official Site). • • • •
Stores in Seoul: 4 Company share: 2.1% (2014) (“Cafe/Bars in South Korea”) Average coffee price: USD 4.5 Social media: Facebook (624,304 likes), Twitter (13.4k posts, 232k followers), Pinterest (19.5k followers), Instagram (370 posts, 24.8k followers)
Angel-in-us Angel-in-us launched in 2000. It has been leading the growth of the espresso coffee market in South Korea. It started its overseas stores in China, Vietnam, Kazakhstan and Indonesia (Angel-in-us’ Official Site). • • • •
Stores in Seoul: 132 (2015) Company share: 4.5% (2014) (“Cafe/Bars in South Korea”) Social media: Facebook (702 likes), Instagram (15,142 posts #angelinus), KakaoTalk, Twitter (183 followers) Average coffee price: KRW 5,500 (USD 4.8)
Ediya Coffee “Korean Starbucks” Founded in 2001 at Chungang University Branch, Ediya Coffee calls itself “the coffee brand represents Korea,” offering high quality coffee at reasonable prices (Ediya Coffee’s Official Site). It’s a home grown coffee chain in South Korea (Lee). Their goal is “everyone should be able to enjoy a cup of quality coffee” (“Is Ediya Coffee”). Unlike other coffee giants within the market such as Starbucks and Caffe Bene, Ediya takes a different strategy to differentiate itself by offering premium coffee at lower prices instead of large-scale stores in prime locations offering high priced coffee (Lee). • • • • • • • • •
Opened 1,500th branch on March 2015 (Ediya’s Official Site) Stores in Seoul: 600+ (2014) Company share: 6.4% (2014) (“Cafe/Bars in South Korea”) 100% Arabica coffee beans (Ediya’s Official Site) Small shops in sub-prime locations (no more than 27 square ft) (Lee) Charges a fixed brand loyalty fee of KRW250,000 ($220) per month, which is lower than other franchises (Lee). Encourages take-out (Lee) Average coffee price: KRW2,800 (USD 2.44) (Official Site) Social Media: Blog, Twitter (8,848 followers), Facebook (78,726 fans, 79,805 likes) (Ediya’s Official Site)
Caffe Pascucci Caffe Pascucci is an Italian based Coffee chain store. The company entered Korea in 2001 and has 112 stores in the Seoul area. Now Caffe Pascucci has entered over 20 countries globally. The company’s products include coffee, beverages, bread, icecream, etc. Caffe Pascucci is famous not only for its unique coffee beans, which are only grown in Italy, and its roasting skills, but also for bringing the original Italian style coffee to its customers (Ediya’s Official Site). • • •
Stores in Seoul: 112 Average coffee price: KRW 4,000 (USD 3.48) Social Media: Instagram Korea (82 posts, 860 followers), Facebook Korea (87501 Like)
Perceptual Map: Stores & Price
Perceptual Map: Flavor & Price
Flavor
Flavor
International Hybrid Brands Who Share Similar Target Consumers
Café&Meal MUJI MUJI is a Japanese store founded in 1980, selling simple, low-cost and good quality products with rationalized manufacturing process. From the package to the products, they chase purity and freshness. It’s not minimalist style but simplicity. They have been credited with “resource-saving,” “low-priced,” “simple,” “anonymous,” and “nature-oriented.” Café&Meal MUJI focuses on the freshness and original taste of food ingredients while providing a comfortable and joyful place for consumers to enjoy food and time with friends and family. The product category of MUJI is broad, including apparel and home merchandise at reasonable prices, which makes it similar to H&M’s market. • Average coffee price: NTD 90 (USD 3) • No social media
Line Friends and Store Café Line is a free message social app, established by the Japanese company, LINE Corporation. They provide many convenient social communicating functions with over 10,000 worldfamous stickers, which even creates a big buzz among the young consumers to buy any relative merchandises. The first Line Friends Store & Café opened in Seoul, which provides coffee and simple food (“Line Friends Store & Café”). Although it’s not a fashion brand and doesn’t sell apparel, their target consumers are also young and those who are easily attracted by foreign brands and social media. • Average coffee price: RMB 30 (USD 5) • Social media: Instagram (224 posts, 24.5k followers), Facebook (15,856 likes)
Agnes b Agnes b is a fashion brand in Pairs, selling high quality product with middle price. It opened its first coffee shop in Hong Kong with modern store design. • Average price: USD 7
Vivienne Westwood Vivienne Westwood is a British punk fashion designer brand, selling apparel, shoes, accessories and so on. It recently opened a coffee shop in Shanghai with fancy store designa and exquisite food and drink. The price is the highest among the other competitors in our perceptual map. • Average price: USD 10
Perceptual Map: Store Interior & Price
3.3 Target Market Identification H&M Cafe aims at securing South Korean teenagers as new target segment for H&M retail stores for the reason that teenagers are still not the main customer base of H&M. While spending time at coffee shops with friends is a mainstream culture in South Korea, H&M Café will be a place to attract these teenagers to connect together before pulling them into H&M retail stores, which are right next to the café. At the same time, South Korean young adults will also be the target for the café since they already are within the customer base of H&M in South Korea. While shopping at the retail store, they may also have some coffee with friends at H&M Café. Furthermore, teenagers in South Korea tend to look up to young adults, wanting to be like them and to be mature. Therefore, if young adults become the consumers of H&M Café, teenagers will also be attracted to the café.
Demographic segmentation • • •
Age: teenagers (13-17) and young adults (18-29) Gender: both female and male Income/ allowance: KRW 22,96 million (USD 20,000)
Attitude • • •
Teens looking to showcase their creativity and stand out from the crowd. They want to follow the newest and fast-changing trends. Koreans think that drinking coffee is not only a beverage; it can show the social status (“Consumer Lifestyle”).
Lifestyle • Food trucks, convenience stores, cafés and small restaurants are very popular among South Korean teenagers. Generally, they tend to eat on a meal plan at school, but they will also get extra money from their parents for snacks. • The teenage group in South Korea is mostly stressed out by academic expectations. According to Euromonitor, in 2014 parents spent KRW 242,000 (USD 210.78) per month on their children’s private education to help them find their own interests and abilities, such as art, music and physical education classes. • Teenagers have consumed brands and fashion icons since their birth. Special retailers, private label brands, and “fast fashion” brands are very popular among teenage groups and are perceived as “youth luxury.” • Most young adults have high education, and the rate of college enrollment is the highest in the OECD. They value education as their competitive capability. • The unemployment rate among young adults has stayed high for over 16 years, at 10.2% in 2015. Many of them gave up to find prestigious jobs but rather to establish their own home and family. They are more cost-conscious and tend to marry late since the cost of marriage is high, about KRW 100 million (USD 87,100). • While young adults tend to live alone, with single people accounting for 25% of household, they keep pets with them as company. Some young adults choose to live with their family for the reason that the cost of buying or renting a house is too high and lots of them have no steady full-time jobs (“Consumer Lifestyle”).
Customer Behavior • Online shopping is very popular among Korean teenage groups. Their shopping choices are influenced by their favorite Korean pop stars (Consumer Lifestyle”).
Technology usage • The rate of mobile usage among these targets is growing. The number of people who choose to purchase through smartphones is growing. • Students and young professionals spend between 1.34-1.8 hours on communication. • Using smartphones is a popular way to pass the time. • Laptops and mobile technology are prominent in schools. • Teenagers aged 12-19 have smartphones in 2014 and 36.6% of them access the Internet on their smartphones more than 15 times daily, mostly browsing between 60 and 90 minutes (“Consumer Lifestyle”).
Social media • •
Nearly 80% of the apps users are Teens Teens spend most of their free time on smartphones and the Internet (“Consumer Lifestyle”)
4.0 Primary Research 4.1 Research Goals The survey is to understand the target segments’ consumer behavior and their consumer insights about H&M as a brand and retailer and about their coffee drinking habits.
4.2 Research Design We started our research with secondary research of the South Korean market, country culture, consumer behaviors and also of H&M’s current market. After we got some fundamental information about South Korea, we sketched our preliminary plan about what we can do to extend H&M’s market in South Korea. Then, in order to have deeper and realistic data of consumer insights, we made a survey focused on Korean consumers. Before we started to design our quantitative survey, we had a little discussion with two Korean teenagers who belong to our target group. We asked them about their thoughts on H&M, whether they shop at H&M and their behaviors of drinking coffee. They also gave us a brief description about young Korean’s consumer behaviors in South Korea. Then based on what we understand and our goal for the business, we designed our quantitative survey to get insight on South Korean’s attitude towards H&M, cafés, and their behaviors with social media.
4.3 Research Analysis Our survey results match the suggestions of the South Koreans we interviewed, and they also match our secondary research of the market insights that South Koreans are obsessed with coffee and that young adults and teenagers prefer lower prices. They use smart devices and access the internet a lot via their smartphones. All in all, the respondents support the information we have.
*Result details see Appendix
5.0 Marketing Strategy 5.1 Positioning strategy According to the Wall Street Journal, since ecommerce is growing fast, fashion stores now are trying to get consumers to step into the stores by providing different store experiences and destinations (Yan). Therefore, we expect that H&M Café will be a new store experience not only to attract new consumers but also to keep consumers in the stores longer. While they stay at the stores longer, they may purchase the items that they didn’t buy at first. Thus H&M Café will be the support for H&M retail stores to extend the shopping experience and the time they stay in stores.
5.2 Communication objectives The goal is to create a buzz among the young consumers in South Korea. We use billboard, prints and social media to build attraction; video will be the main interest builder while social media, prints and billboards also account for part of it. To create desire in consumers’ minds, video will be our driving force with social media being the support to raise the buzz and discussion about the desire among young consumers. During the launch of the café, we will have an event to pull consumers to make trials.
5.3 Communication mix Based on the consumer behaviors and lifestyle in South Korea, we focus our communication mix on the high exposure places where our target markets, young adults and teenagers, can see the most, which are the public transportation and billboards on the buildings near transportation. The bus and subway routes which can travel to H&M Café will be the main exposure locations for the prints and billboards. For social media, Facebook fan pages, Intstagram and KakaoTalk will be our main media to share the information and video to the target customers. Since South Korean young people use mobile apps a lot, it will also be our main force to connect target consumers and the café. • Bus & Bus Station The ads will be put on the side-body of buses and the bus stops to catch the attention of the younger consumers who often take public transportation to work or school. The bus route in Seoul includes: - Bus route 7011 - Bus route 472 - Bus route 7017 - Bus route Number 2 •
Billboard
Our billboard ads will be displayed on the LED screen of buildings at commercial squares in Seoul to attract broader audiences and spread the information about the launch of H&M Cafe. The main location will be the Myeong-dong district. Besides billboards on the buildings, we will also put the ads on the billboards in subway stations in the five popular districts in Seoul which also are the locations of the current H&M retail stores in Seoul. The five districts are: - - - -
Myeong-dong: It’s the popular shopping and commercial district, which attracts lots of young people and visitors. Dongdaemun-gu: It’s the most representative shopping area of both retail and wholesale apparel and other accessories. Apgujeong-dong: It’s the leading fashion district and high-class residential district, which gathers a lot of high-end brands and also numerous cafés and restaurants; it’s also the famous location for shooting South Korean film. Sinsa-yeok: It’s the artistic and romantic district filled with small but delicate and unique boutiques, which also attract lots of traffic, just as Soho in New York City.
- - -
Ihwa Yeoja Daehakgyo: It’s not only the college district but also the most famous and must-go shopping area for young women. This district is characterized with beauty salons, fashion boutiques, cafés and street foods. Myenong-dong Station (Seoul Subway line 4), exit 5,6,7,8 Euljiro Il-ga Station (Seoul Subway line 2), exit 5
•
Video
It will enhance the concept of “connection” as the brand image of H&M Café in consumers’ mind and appeal young targets. The video will be released both on Facebook fan pages and YouTube at the same time to be exposed to broader audiences and attract new customers. We’ll also buy the key words, such as “H&M Café,” on YouTube. And we will buy the leading page advertisement to play our video for 3 days after the launch. It will also be shown on Facebook wall advertising with links to the H&M Café fan page. And there will be shorter version of the video on our Instagram account. •
Mobile application
To strengthen personal connection between H&M Café and the consumers with the customized settings. It also enhances the convenience of the cafe’s services of ordering and delivery. The users will be able to order, pay, gift, find location of the café, mark special days on calendar and receive rewards and coupons on the app. And for the gift part, the users can choose either to give as a surprise “someone bought you a coffee” or as a normal gift card. •
Website
To provide information of H&M Café, such as the introduction of the café, the store location, and menu. We will buy key words such as “H&M Café” for the long-term global goal and “South Korean Café,” “Seoul Café,” “Myeong-dong café” and “Top 10 South Korean Café” for short-term opening of H&M Café in Seoul. • Event We will cooperate with the spokespersons of H&M, Liu Wen and Choi Siwon, to be our one-day managers on our opening day to attract young consumers to the cafe.
5.4 Budget allocation We emphasized in our video since that video costs the most and H&M itself puts a lot of budget on video campaign. The bodywear advertisement endorsed by David Beckham during Super Bowl, which was shot in one of Hollywood Studios, cost $3.5 million per 30 seconds (Lipke). The average costs of billboard, bus and bus station, app and website design are $1,500-30,000/ 4-week for billboard (“Billboard Advertising”), $150-600/ 4-week for bus, $3,000-6,500 for bus stop at high-income area/ 4-week (“Bus Advertising”), $150,000-450,000 for savvy app (“Figuring the Costs”), and $15,000-100,000+ for custom website (Katkin). For this reason, we allocated our budget to 30% for video production, 20% for app, 15% for billboard, 10% for social media, which includes Facebook, Instagram and KakaoTalk, 10% for both prints and website, and 5% for one-time events.
6.0 Media Strategy
Activity Map
Outdoor Advertising Billboard Subway Bus Launch Party Opening Event Digital Advertising Mobile App YouTube Facebook Instagram Official Website
Pre-Launch December
January
February
Launch March
Post-Launch April May
June
7.0 The Creative Idea logo
Final logo
Cup Design
Bag Design
Menu In Hand
Table Menu
Store Design: Floor Map
Store Design: Interior Design
Ads
Event – Opening day Date: 2016.3.14 Time: 9:00am – 11:00am Title: One-day Manager – Choi Siwon & Liu Wen Objective: attract customers and press media to spread the news of the opening of H&M Café Schedule: AM 7:00
The store open
AM 8:00-8:30
Set up for event
AM 8:30-9:00
Press entering
AM 9:00-9:30 They start learn making coffee from manager AM 9:30-10:30 They start serive customers, and introduce products. AM 10:30-11:00 Press interview AM 11:00-11:15 Photography AM 11:15-11:30 Chio Siwon, Liu Wen and Press leaving AM 11:30
Event end
Website Design
Mobile App Design
Facebook Page
Youtube Page
Instagram Page
Billboard
Video
Crew List Director Producers Music Editor Direct Photographer First Assistant Director Stylists Lighting Photographer Technique Support
CAST
Deuk Lee Cici Zhou Elsa Kao Joy Yuan Paul Kim Paul Kim Shuo Si Ayaka Furukawa Cici Zhou Elsa Kao Joy Yuan Shuo Si Junwei Liu Alexandria Wilson Si Shuo Xiaoxiong Guo
Reading Boy First Couple Music Boy Waitress Laptop Girl Talking Girls Drawing Girl Second Couple Passing People
Special Thanks Huiran Zhao Xiaoxiong Guo Yaqiong Qiao SCAD Montgomery Hall BYTE CAFE SCAD Film Department Everyone who helped us for this film
Yuchen Lee Zimo Yan Zitao Huang Yuanheng Liang Ayaka Furukawa ChoiYe Rin Cherry Lim Yangyang Qiu Jack Yeng Suhyun Kim Cici Zhou Paul Kim
8.0 Campaign Evaluation Pre-testing
Continue Campaign Tracking
Take a quantitative survey on 200 people from target market, 12-30 year-olds South Korean who live in or commute to Seoul, to explore brand awareness of H&M and brand consideration as well as purchase intention of H&M Café among current South Korean market. The survey will be executed 3 months prior to the launch of the campaign.
Day-after call: randomly sample 30 people from the target audience per week during the campaign to examine the changes of their perception of H&M Café.
Survey questions • Do you know H&M? • If H&M opens a café, would you consider to try it? • What café would you go whenever you want to hang out with friend? • What brand of coffee do you usually buy? Do a qualitative interview on 100 people from target market to test what do they think about the video and advertisement by inviting these 100 people to a meeting room and show our video to them, then ask them some questions. This will be executed one month before the launch of the campaign. Interview questions • What comes to your mind when you see the video? Why? • If you are going to buy coffee, where would you go? Why? • If you are going to hang out with your friend, where would you go? Why? • Does the video evoke you any kind of emotion? • What message do you think the video is trying to present?
Sampling questions • Have you seen this ads? (show them the print version of our billboard and bus ads) • Do you know what brand is this ads? • Have you seen this video? (show them the video with iPad mini) • What do you think about this video? • Do you feel attracted by the atmosphere of the video? • Would you pay a visit to H&M Café? (before the café open) • Have you visited H&M Café? (after the café open) • Do you feel H&M Café is synchronized with the advertisement of it? (after the café open)
Post-campaign Similar to the day-after call during the campaign. Do quantitative survey on 200 passers-by near the advertisement areas the day before the opening and after the opening of the café to measure the "noted score," "associated score," "read most score," to have the consumer insights in terms of brand awareness, purchase intentions, brand considerations, ad recall, ad recognition, and message take-out and image tracking. Survey questions • Have you seen these ads? (show the ads with covering the logo) • Have you seen this video? (show the video) • Do you think these campaigns are relevant to you? • Do you know what brand it is? • If you’re meeting with your friends, where would you go? • Where would you go drink coffee or buy coffee-to-go? • What brand comes to your mind first when you think of advertisement and video campaign of coffee? • Have you visited H&M Café? • Do you find the advertisement match with what you feel at H&M Café? (if they have visited)
9.0 Closing Recommendations
Although H&M has been spread over the world, there are still a lot of opportunities for H&M in Asian markets. For South Korea, though fast fashion foreign brands have been popular among young consumers, the teenagers aged between 13-19 haven’t been taken by H&M. By leveraging the coffee culture and the addictive usage of mobile devices and the Internet in South Korean, we expect that with the expansion of H&M Café, teenagers will be attracted into H&M retail stores as the side effect of spending time with friends and drinking coffee at H&M Café. Although the competition of chained specialist coffee shops is tough in South Korea, especially in Seoul, there are opportunities for us to sell moderate priced coffee with simple but modern atmosphere for young target markets while most of other chained ones have higher prices. H&M Café may not be as expertise of coffee as some of the international coffee retailers, we aim to be the friend of the community with lower price but good quality and friendly environment to build connection with our customers. With primary and secondary research analysis, we emphasize the digital segment for our media strategy for the reason that young consumers are highly addictive to smartphones and the Internet. In all of our campaign and advertisement, we focus our theme on the connection, both between consumers themselves and between consumers and H&M Café. We want to keep the value of H&M itself, to be a friend to everyone and provide high quality with moderate price to our consumers. In our future plan, after H&M Café become welcomed by the mass market and establishes its own reputation among the world, we will expand the café to other parts in metropolitan cities in the world, to enhance our brand images and value-added services, as well as prolong the stay in brick-n-mortar stores and thus raise the sales of H&M.
10.0 Appendix Works Cited Angel in Us Official Website. 2014. Web. October 5, 2015. https://www.angelinus.com/eng/index.asp. “Billboard Advertising.” Blue Line Media. N.d. Web. October 18, 2015. “Bus Advertising.” Blue Line Media. N.d. Web. October 18, 2015. “Cafés/Bars in South Korea.” Euromonitor International. September, 2015. Web. October 5, 2015. Café&Meal MUJI Official Website (Chinese Version). N.d. Web. October 13, 2015. http://www.muji.com/tw/cafemeal/. Caffe Bene Official Website. 2014. Web. October 5, 2015. http://www.caffebeneusa.com/. Caffe Pascucci Official Website. 2012. Web. October 5, 2015. http://www.caffe-pascucci.co.kr/. “Consumer Foodservice in South Korea.” Euromonitor International. September, 2015. Web. October 5, 2015. “Consumer Lifestyle in South Korea.” Euromonitor International. September, 2015. Web. September 27, 2015. Ediya Coffee Official Website. 2014. Web. October 5, 2015. http://ediya.com/. “Figuring the Costs of Custom Mobile Business App Development.” Formotus. July 7, 2012. Web. October 18, 2015. Katkin, Zach. “What Does a Website Cost?” Atilus. April 7, 2015. Web October 18, 2015. “Is Ediya Coffee the Korean Starbucks?” The Korea Blog. N.d. Web. October 5, 2015. Lee, Hyo-sik. “Ediya Goes after Asian Coffee Drinkers.” The Korea Times. November 18, 2013. Web. October 5, 2015. “Line Friends Store & Café.” U Travel. N.d. Web. October 12, 2015. (Chinese Version). Lipke, David. “H&M Plans Super Bowl Commercial.” Women’s Wear Daily. January 18, 2012. Web. October 17, 2015. “South Korea: Country Pulse.” Euromonitor International. September 16, 2015. Web. September 27, 2015. Starbucks Official Website. 2015. Web. October 5, 2015. http://www.istarbucks.co.kr/index.do. The Coffee Bean & Tea Leaf Official Website. N.d. Web. October 5, 2015. http://www.coffeebean.com/. Trieu, Rosa. “Korean Coffee Chain Caffe Bene Plans Aggressive Growth as Starbucks Alternative.” Forbes. June 5, 2014. Web. October 12, 2015. Yan, Cathy. “Can Shopping Be Fun Again?” The Wall Street Journal. May 6, 2010. Web. October 17.
Moodboard
Web Site Map Design
H&M Store Location Shoot
Behind the Screen
Budget Caculation
$155 million (the revenue of HM South Korea in 2014) * 3.5% (the percentage of marketing budget of HM) = $5.425 million (the total marketing budget of HM South Korea) Based on our budget allocation Video budget = $5.425 million * 30% = $1.627 million Mobile App budget = $5.425 million * 20% = $1.09 million Social media budget =$5.425 million * 10% = $0.54 million Billboard budget = $5.425 million * 15% = 0.81 million Bus body & Bus station budget = $5.425 million * 10% = $0.54 million Website budget = $5.425 million * 10% = $0.54 million Event budget = 5.425 million * 5% = $0.25 million
Gantt Chart
week 1 (Sept week 2 (Sept week 3 (Sept week 4 (Oct 14th -20th) 21st - 27th) 28th - Oct 5th - 11th) 4th) Research Marketing Strategy Story Mood Board Style Frame Storyboard Art Direction Location Props Equipment Talent Shoot Editing Rough Cut Final Edit
week 5 (Oct 12th - 18th)
week 6 (Oct 19th - 25th)
week 7 (Oct 26th - Nov 1st)
week 8 (Nov week 9 (Nov week 10 2rd - 8th) 9th - 15th) (Nov 16th22rd)