STOLEN REPORT 1.

Executive Summary This is AwfullyChocolates (AC) marketing plan designed for the period starting 1st January 2008 to 31st December 2008 which was founded by Miss Lyn Lee in 1998. The plan began with the introduction of the companys background and mission statement, followed by the situational analysis (SA) of the microenvironment and macroenvironment. The factors identified from SA are extracted to SWOT analysis classified into four different categories, namely strength, weakness, opportunities and threats. Three marketing objectives were established. Marketing researches were conducted to collect the primary and secondary data needed to complete the marketing plan. Primary data were obtained from surveys while secondary data were obtained from the Internet, books and newspaper articles. Marketing strategies were developed and assisted by survey results, comprising of the target segment, positioning and the marketing mix and the activities from these strategies are spread across the twelve months indicated in an action plan. Sales are then forecasted, after-which advertising and promotions budget are computed for 2008. The control and evaluation procedures were establish to ensure the smooth implementation of marketing plan and the successful attainment of the set marketing objectives, with allowance for contingency plan to ensure there is back-up if any unexpected situation arises. 2. Introduction 2.1 Company Background AwfullyChocolate (AC) is a unique and unconventional chain of chocolate cakes and ice cream boutiques founded in Singapore in 1998 by Miss Lyn Lee and Mr. John Yap. It has franchise stores in China, Indonesia and Taiwan and is set to expand in the region. ACs head office is at 81 East Coast Road, #02-01, Singapore 428785. Currently AC has four outlets located at Cluny Court, Katong Mall, Republic Plaza and Sembawang Hills. 2.2 Mission Statement Our philosophy is simple and unique. The focus is not variety but quality. Our product line is deliberately limited even today. We dont display our products.

We dont advertise (if we have to pay to say were good, were not that good). We dont sell our cake in slices. And we dont hard sell. We let you discover AwfullyChocolate your own way. 3. Situational Analysis 3.1 Microenvironment - Internal Factors 3.1.1 Companys Resources AC has their own factory in Johor Bahru which bakes all their cakes. (See appendix A1) ACs own refrigerated vans deliver the finished products daily each morning to ensure the cakes arrived chilled and fresh. (See appendix A2) Other companys resources include freezer for storing ice cream and the chillers for storing cakes at the outlets to ensure their freshness. The main office has about ten staffs and every branch has two sales personnel. 3.1.2 Skills ACs sales personnel are required to undergo a series of training programs, attaining the necessary skills and techniques to handle different customers leaving a good lasting impression. 3.1.3 Existing Marketing Mix Products AC sells All Chocolate cake, Chocolate Banana cake, Chocolate Rum & Cherry cake and Hei ice cream. Each cake is packed in a simple yet elegant square box (See appendix B1). The ice cream is packed in a very unique AmericanChinese takeout style box. (See appendix B2) Price The price of the 500 grams All Chocolate cake is $21.40, making it slightly more expensive than that of their competitors. (See Appendix C1 for complete AC prices and the comparison prices of competitors) However the quality differences enable customers who are seeking better quality cakes recognize the distinctive differences and find ACs price reasonable. Cakes are reshaped at $4.20 per kilogram and 3-dimensional shaping is charged at $5.25 per kilogram. Place ACs four outlets are located at Katong Mall, Cluny Court, Sembawang Hills and Republic Plaza. They are spread out around Singapore namely in East, West, North and Central respectively. (See appendix D1). Each outlet has arranged two

sets of chairs and tables for customers to sit while waiting for their cakes. ACs website is at www.awfullychocolate.com where customers can place their orders online. Promotion Direct Marketing All their online promotions are sent directly to customers who leave contacts on their guestbook. AC uses little promotions, relying mainly through positive word-of-mouth from satisfied customers to spread to new customers. Personal Selling The sales personnel at respective outlets are well trained to sell AC's products to customers while ensuring the smooth running of the cake shop. Sales Promotion AC promotes Christmas Specials annually (Appendix E1 & E2). In addition, AC had a Nurses Day Chocolate Cake Special promotion to thank nurses for their contribution during the Severe Acute Respiratory Syndrome (SARS) period, in which customers are offered discounted flower decoration service at a special price when buying cakes for nurses. (See Appendix E3) Publicity Online blog reviews and forums offer free publicity for AC. AC has appeared on 8 Days magazine (Appendix F1) and Channel 8 variety show - HDB Tai-Tai. 3.2 Microenvironment External Factors

3.2.1 Customers ACs customers are mainly health-conscious young working adults, ranging from age of 20 to 29, with great purchasing power to indulge in better quality chocolate and less sweet and a healthier alternative compared to cream based cakes. The bulk of ACs customer pre-order cakes from ACs website and via telephone calls. (See appendix G1) 3.2.2 Competitors ACs direct competitors include Lana Cake, Room for Dessert and Choc.a.bloc. These competitors, like AC, specialize in selling chocolate fudge cakes. (See appendix H1) Indirect competitors are well-established cafes like Bakerzin and Cedele offering good chocolate cakes with far greater variety of cakes and other products

compared to AC. (See appendix H2) 3.2.3 Suppliers AC cakes are all freshly baked in ACs own factory at Johor Bahru, Malaysia. All cakes ingredients including chocolate, eggs and flour are purchased in Malaysia at lower cost, which is more economically feasible and cost efficient compared to Singapore. 3.2.4 Distributors The cakes are distributed directly by ACs four outlets namely Katong Mall, Cluny Court, Sembawang Hills and Republic Plaza (Appendix J1). If one outlet has a shortage of cakes, cakes will be transferred from any of the other three outlets. All outlets are solely owned by AC, there are no other distributors. 3.2. 5. Public Media Public such as the local and foreign newspapers, magazines and the Internet keep the general public informed on new products and services. These offer businesses a means of advertising their products and services and free publicity, helping them gain recognition from the public. General Public having improved quality living standards and higher expectations for better quality, healthier and yet great tasting cakes. (See appendix K1) 3.3 Macroenvironment 3.3.1 Demographics In 2006, the youth constitute 20 per cent of the entire population i.e. 729,600 of age range of 15 to 29. (See appendix L1). Comparing the statistical data measured in 1996 and 2006, the youth population had drop by 1.1 per cent. Singapore has a growing Muslim youth population of 14 per cent. (See appendix L2) With improved labour market conditions amid sustained economic growth, the average household income grew by 4.3 per cent in 2006, compared to the 4.5 per cent in 2005. (See appendix L3) 3.3.2 Political Entrepreneurship is highly encouraged and recognised by the Singapore government to instil individuals' ability in setting up franchises. The government has been promoting a healthier lifestyle among Singaporean. Due to an increasing number of obesity, especially in school children and teenagers, the government has implemented the healthier choice logo for products. (See appendix M1)

During the bird flu epidemic, Agri-Food and Veterinary Authority (AVA) adopt a strict control over incoming products. (See appendix M2) 3.3.3 Economic Based on 2006, Real GDP grew by 7.9 per cent. This is higher than 6.6 per cent growth in 2005. (See appendix N1) This reflects an increasing rate of growth. Compared with the same month previous year, the consumer price index (CPI) in June 2007 was 1.3 per cent higher. For the first half of 2007, the CPI rose by 0.8 per cent over the same period of 2006. (See appendix N2) This shows that inflation has resulted in a higher standard of living in Singapore. 3.3.4 Cultural-Social Singaporeans have grown affluent while moving towards an increasingly healthconscious lifestyle. In the latest Strait Times survey, personal relationships and health were valued ahead the 5Cs. (See appendix O1) Dark chocolate is researched to be healthier, helping to lower cholesterol levels and aid diabetics by boosting insulin sensitivity. (See appendix O2). Todays young adults are generally technology savvy, utilizing the Internet as their major source of information more frequent than previous time. 3.3.5 Technological In Singapore, the availability of broadband packages and wireless hotspots, online food blogs and food reviews (See appendix P1) are gaining popularity. The Infocomm Development Authority (IDA) 2005 survey reported nearly 75 per cent of households own a computer, of which 66 per cent have internet access and more than 25 per cent of users are doing online shopping. On average every user spends $1,000 a year online. (See appendix P2) 3.3.6 Natural With the Bird Flu experiences, consumers are still worry about the source of eggs supplies and many are avoiding eggs from Malaysia and prefer to buy eggs from other suppliers. (See appendix Q1) Due to the scarcity of land, rental of factory and offices are high in Singapore, leading to higher operational cost for businesses than Malaysia whereas land is more abundant, thus cheaper for setting up a factory. Due to the global shortage of fuel, the escalation of fuel prices has led to higher production costs.

4. SWOT Analysis 4.1 Strength Unique Brand Name -contrasting name using AwfullyChocolate Strategically located in four main areas of Singapore, i.e. North, East, West, Central Own factory in JB with lower operation cost ACs products receive free publicity 4.2 Weakness Lacking in marketing and promotional activities Low awareness of AwfullyChocolate Shops are not visible to general public Shops are located in areas with minimal human traffic Promotions are sent via electronic mail only to customers who leave behind their contact details. This will restrict the number of customers knowing the promotional events Limited products with only three variations of chocolate fudge cakes and one type of ice cream Higher price than competitors AC is unwilling to put in marketing efforts even if there are more profits Over-confident mission statement seemingly lacks marketing orientation 4.3 Opportunities General public are well informed of new products and services Increase in household income Benefits of dark chocolate that are proven to be healthier than that of other types of chocolate Environmental health threat such as bird flu can give rise to new product opportunities (e.g. eggless cake) (See Appendix S3) Government is promoting a Healthy Life Style hence introducing healthier choices of living Increase in Muslim population 4. Threats Increased competition arising from growing numbers of neighbourhood cake shops Environmental Health Threats Such as bird flu epidemic will affect our supply of eggs thus disrupt production Decline in youth population Increasing fuel-pricing leading to higher costs Increasing GDP may lead to higher rental prices Health-conscious people may shun the cake due to its nutrition content Disgruntled customers may post negative reviews online 5. Marketing Objectives ACs marketing objectives for the period starting from 1st January 2008 to 31st December 2008 are as follows:

 To increase ACs awareness from current 32 per cent to 60 per cent To attract 10,000 new members To increase sales to $2,580,000 6. Marketing Research AC uses marketing research to obtain the much needed information to assist in the completion of this marketing plan. 6.1 Secondary Data The secondary data are secured from the following sources: News articles and web reviews Homepage of AwfullyChocolate ACs catalogues Competitor information Various media websites Secondary data help to establish the companys background, the situational analysis, the SWOT analysis and the advertising rates to compute the advertising and promotional budget for the year 2008. 6.2 Primary Data AC uses the followings: Informal interview with the sales personnel at Cluny Court on 4th August 2007 at 1.30pm to uncover more information on AC. A transcript of this interview is in appendix R1. Online survey of 153 respondents to gather feedback to develop strategies based on the current market situation. A copy of the survey questionnaire is attached in appendix R2. The survey findings are compiled into survey result found in appendix R3. Primary data helps AC to develop new and improve marketing strategies for year 2008 7. Marketing Strategies 1. Positioning/ Segmentation 7.1.1 Target Market/Segments AC will target the following segments: Retaining ACs existing customers age ranging between 20 and 29, especially those in ACs database The relatives, friends and peers of existing customers Students age ranging between 13 and 19, who are living, studying or visiting within the vicinity of ACs outlets Health conscious consumers who are willing to pay a premium price for lower calories / healthier choice cakes Vegetarian and consumers who prefer egg-less products Muslim consumers

7.1.2 New Positioning Statement AC will launch a new slogan - Try it-Eat it-Love it! This new slogan will be used on packaging boxes (Appendix S6), membership card (Appendix U1), in ACs website and other communication media (Appendix V1). The use of this catchy phrase will attract peoples attention; arouse their curiosity to try out ACs product. 7.2 Product/ Service Strategies AC will introduce the following new products and services for 2008: Developing new ice cream cakes by integrating Hei ice cream with ACs cakes. (See appendix S1) New range of low calories cakes by replacing sugar with sugar substitute to the current recipe targeting for the health conscious consumers. (See appendix S2) Introduce Egg-less All Chocolate cakes series for consumers who are weary of bird flu epidemic and had been avoiding egg products. (See appendix S3) Cupcakes - the exclusive miniature version of all ACs chocolate cake range available by special order in quantity of 100. These cupcakes are meant as door gift for special occasions such as wedding or house warming. (See appendix S4) Introduce smoothies into ACs bistro with five new flavours, where consumers can choose to mix two flavours together. The five new flavours are avocado, strawberry, kiwi, almond and passion fruit. Provision of fork and plate for customers convenience. (See appendix S5) Currently, a small fee of $10.70 is required for delivery regardless of the purchase amount. We will provide free delivery for orders over $80. New packaging (See appendix S6) to replace the current plain and simple packaging box. (See Appendix B1) Cake slices - each cake will be divided into six slices to generate more sales, for consumers who prefer to buy in slices. (See appendix S7) Monthly electronic newsletter will be sent out to customers and will also be made available on ACs homepage. (See appendix S8) 7.3 Price ACs new prices for 2008 are as follows: Adjust existing product pricing as listed below: - All Chocolate - $22.40 - Banana Chocolate - $24.40 - Chocolate Rum & Cherry - $27.40 - Hei ice cream - $3.50 per scoop New pricing for existing cakes in slices are as follows: - All Chocolate - $5.00 - Banana Chocolate - $5.50 - Chocolate Rum & Cherry - $6.00 The new products are set the below listed prices: - Hei ice cream cake $32 per cake and $7 per slice - Egg-less All Chocolate cake $28 per cake and $6.50 per slice

- Miniature cupcake - $150 for 100 cupcakes - Smoothies - $4.90 (upsize $0.50) AC will be introducing bundled purchases that with every cake purchase, customers can have the option of buying a scoop of ice cream at $1. Members are entitled to 10 per cent discount on their purchases. We will elaborate in details under promotion. 7.4 Place AC will implement the following place strategies as follows: Four new cafes will be setup in Singapore Polytechnic, Ngee Ann Polytechnic, Nanyang Polytechnic and Temasek Polytechnic to cater to students. (Appendix T1) To renovate the existing outlets giving the new look of a bistro for consumers to relax and have smoothies with their cakes. (See appendix T2) To open a new outlet at Changi Airport locating at the passengers waiting area for them to patronize while waiting for their flight. (See appendix T3) Travellers can enjoy AC cakes, brand recognition will improve, especially if they bring the cakes back to their country, which will further boost franchise opportunities. Festive decoration at all ACs outlets during festive seasons to match the atmosphere. Catalogues for special designs of cakes would be added into the existing website. 7.5 Promotions AC will implement a combination of the followings: 7.5.1 Sales Promotions To introduce the Prestige Membership Card given to customers upon spending $100 (single receipt) or $200 (accumulated receipts). Members entitled to 10 per cent off purchases. Membership is valid for a year and renewal at $5 annually. (See appendix U1) Loyalty Rewards - For every $30 spent per purchase, customers are entitled to a rewards sticker. The loyalty card given can then be exchangeable (within six months from date of issue), for a free 500g All Chocolate cake with the accumulation of ten rewards stickers. (See appendix U2) Birthday offer of 20 per cent off for purchases during for members birthday month, while non-members birthday verified by their identification cards are entitled to 5 per cent off aiming to encourage more people to become members. Student privileges enable students who show their student pass at the point of purchase of a slice of cake be entitled to a scoop of ice cream at $2. 7.5.2 Advertising AC will be placing advertisements in the followings: For Him Magazine (FHM), Maxim, Her World, Cosmopolitan, Lime, Seventeen and Friday weekly (Appendix V1) Using Zocards as advertisements (Appendix V2)

 Placing advertisements on buses and taxis (Appendix V3) 7.5.3 Personal Selling AC will send staff for training programs such as Go-the-Extra-Mile (GEM) program, to equip them with the necessary customer service skills. 7.5.4 Publicity AC will implement a cause-related marketing by organizing an annual charity event inviting celebrities to help sell the cakes and donating all profits to specific charity organization nominated by AC. This will gain free publicity. (See appendix W1) 8. Action Plan A Gantt chart has been drawn out across 52 weeks to include the various advertising and promotional activities, person in charge of the respective activities and the cross referencing to appendices that spell out the details of each of the activities from 1st January 2008 to 31st December 2008. (See Appendix X) 9. Financial Information 9.1 Advertising and Promotional Budget ACs advertising and promotional budget for the entire year of 2008 is $339,724. Promotional expenses for official launching of new outlets and introducing of new products will be $5,000. The detailed computation and the specific advertising rates are in appendix Y1. 9.2 Sales Forecasts The total estimated sales forecast for AC for the year 2008 is $2,577,840. The detailed workout and all the stated assumptions are found in appendix Y2. 10. Control and Evaluation 10.1 Monitoring Sales The staff at the respective outlets will monitor the daily sales figure and report the weekly sales figure to the main office accounts department. The accounts department will compile it into monthly sales figure, which will then be compared with the forecast monthly sales figures. A monthly sales meeting will be held with the respective outlets supervisor to check on deviation and report any occurrence. This enable a tighter monitoring to ensure actions be taken as soon as possible instead of waiting till the end of the month. 10.2 Control of Expenses About 13 per cent of the estimated sales forecasted figure mentioned above will be allocated for advertising and promotional activities. The budgeted expenses are well within the allocated budget. (See Appendix Y1 for budgeted expenses and budgeted advertising and promotional expenses) 10.3 Ensuring Activities Adhere to Schedule Various activities are allocated accordingly to the Managing Director (MD), Marketing Manager (MM) and Public Relation Manager (PRM). (See Appendix X)

The marketing department will ensure that the activities are carried out on schedule as planned. 10.4 Maintaining Inventories Level Retail outlet The cakes allocation to each AC outlet, due to different sales volume, may face a shortage of cakes. To solve this issue, surplus cakes will be transferred from other outlets. Factory In view that ingredients required might face a shortage due to unforeseen circumstances, natural or man-made, AC will maintain three months supply of ingredients such as flour and chocolate, to ensure that production will not be disrupted. Perishable supplies such as eggs and milk cannot be stored for three months. Therefore in cases of emergency, AC will source supplies from other supplier. 10.5 Sustain Customer Service ACs sales personnel will be tasked to ensure customer service standards are maintained at their respective outlets. Feedback forms will be available at every outlet to identify areas that requires improvement. Conclusion Marketing issues are important in all areas of the organizationcustomers are the reasons why businesses exist! In the project, we have applied whatever necessary theories learnt from marketing principles into practical application. Without careful considerations in all aspects, there are higher risks of product failure. During the course of the project, we encountered conflicts and disagreements. However through these conflicts, we learnt of the importance of team dynamics and time management to ensure effectiveness of the work done. Disagreements that arise were solved through discussion. Although we have a team leader, our team is able to compromise with each others shortcomings, and to work in a democratic manner, to ensure team effectiveness is fully maximised. Any problems that surfaced like for example, if a teammate had to go off early for his own personal commitments, the whole group will understand him, and the member himself will exercise self-discipline by reading up on what he had missed out that day and come back prepared and informed for the next meeting. Before doing the project, we may have a very carefree attitude towards our marketing project, brushing it off as something that could be easily

accomplished in a matter of weeks. During the course of the project, we started to research more, studied our textbook and notes, and created our own surveys. Through these, we realised how much a marketing plan entails and requires an in depth knowledge and application to market a product successfully. We have cultivated time management skills by striking a balance between schoolwork and project. By setting timelines and meeting targeted deadlines ensure that we have sufficient time allocated In conclusion, we managed to make use of the concepts we have learnt and applied them in our marketing plan.