Marketing Plan for Paradise Group

Executive Summary

This report was commissioned to analyse and evaluate Paradise Group's business in the Food and Beverage industry. It is also proposed that Paradise Group should adopt market penetration strategy into the Indonesia's Halal food consumption market.

The research analyses the current situation of Paradise Group in the current market - Indonesia. Indonesia is one of the highest populated countries in the world and 85% of the human population there are Muslims. Paradise Group has already ventured into the Indonesian market recently but not towards the Muslim - HALAL food consumption consumers. The current market trend and growth of Indonesian consumers shows that there are opportunities for Paradise Group to further expand in the market.

Two major competitors identified were the The Duck King and Din Tai Fung which both offers HALAL certified oriental cuisines. These two competitors have gained much more experience and market share in Indonesia as compared to Paradise Group who only recently entered into the Indonesian market on 2011.

Paradise Group currently has three different concept restaurants offering different oriental cuisines to the different social classes in Indonesia - Taste Paradise, Paradise Inn and Paradise Dynasty. Due to the attractive ratio of Indonesian Muslims, increasing needs for variety of food choices and higher consumer spending power in Indonesia, it is recommended for Paradise Group to invest in expanding its market share by opening another different restaurant - Harmoni Paradise that only caters to the HALAL food consumption group in Indonesia. Effective marketing strategies, carefully planned financial goals and analysis is crucial ensure this marketing venture to be successful and sustainable. Controls also have to be taken in order to ensure the implementation and further operations can be carried out effectively and efficiently.

1. Introduction

This marketing plan is meant to take Paradise Group business to the next new level. We will be introducing the most potential market segment that they should be targeting where they already had a presence. We'll capitalise on Paradise Group strength which is the ability to come out with innovative store concepts and menus to achieve their long term goal set by their founder, Mr. Eldwin Chua,

"To be an international diners' paradise for Oriental cuisine where gourmet menus meet with exceptional value, and tradition meets with innovation."

This plan will strengthen their market position through stronger international brand name and eventually improve their financial strength.

2. Situation Analysis

Paradise Group currently has 24 oriental cuisine restaurants spreading all across Singapore Island offering customers different dining experiences with their different restaurants concept. This is stated in their promise to delight customers by "Creating New Dimensions of Dining Pleasure" for its patrons.

However, Singapore market is a very small market because of its population size. For them to grow the business, going out of Singapore is a must. Paradise Group recognised this fact and so they had already started venturing out of Singapore into countries like Malaysia, Indonesia, Thailand and China (Shanghai) markets offering some of their best theme restaurants concept. More focus will be put into expanding the business in these countries now, serving the growing demand for better quality oriental cuisine.

2.1 Market Summary

As mentioned above in the situation analysis, Paradise group is putting more focuses in overseas market expansion. And in this report we will be concentrating in Indonesia due to the vast opportunities that it can offer to Paradise group. But the other markets will not be neglected.

* Target Markets

 Indonesia is a Muslim countries and it is the world's most populous Muslim-majority nation.

 The population in Indonesia is about 248 millions (World Population Review 2012) which is the world 4th most populated country after China, India and USA.

 Being our nearest neighbours, it is logical for Paradise Group to focus their expanding into this country since we have a better understanding on their cultures and business environment.

 To serve the Muslim population, all food and meat (excluding pork) must have HALAL certification.

2.1.1 Market Demographics

 Urban Population : 44% of the population (World Population Review 2012)

 Indonesia most populated cities are Jakarta (Capital) - 9.121 million, Surabaya - 2.509 million, Bandung - 2.412 million, Medan - 2.131 million, Semarang - 1.296 million (CIA 2012)

 The majority of the population in Indonesia, approximately 85 % are Muslim.

Demographics

 49.66% Women, 50.34% Man (BADAN PUSAT STATISTIK 2010)

 About 67 million of the population (Urban) are within the age of 20~59 years of age.

 Higher Income - Rise of the middle class from 50 million people in 2003 to 131 million people in 2010. (The World Bank / Bank Dunia 2011)

 Estimated 30 million people have strong buying power.

 Dynamic and youthful Population (55% < 25 years old)

 Better educated - 1.89% of the population completed Diploma, 3.1% completed undergraduate program and 0.24% completed Master or Doctorate program.

 Young family, Smaller family, working people

2.1.2 Market Needs

 People are no longer satisfied with their local Indonesia food. They need food but they want variety in their selections like Korean, Oriental, Japanese and others ethnic food.

 High demands for more restaurants to meet these insatiable needs for new varieties of food selection which offer nice ambience with good quality of food at a competitive pricing. This is especially so in major cities like Jakarta and Surabaya in Indonesia.

2.1.3 Market