Marketing Plan for Korean Dessert Cafe

Business Proposal
University of Technology, Sydney

Business Project – Marketing 24790
Unit 1521 / 702-720 Harris Street, Ultimo NSW 2007

0450 462 088
Eunjeong.kim@student.uts.edu.au
Eun Jeong Kim 11270954
Executive Summary
Red Bean Snowflakes is a Korean business specializing in Korean dessert Patbingsu, and
has plans on launching a shop in Korea-Town Sydney. Patbingsu is a traditional Korean
desert that is popular and enjoyed by many Koreans. Similar varieties exist within
Chinese and Japanese desserts. It is mainly made of Azuki red beans and shaved milk ice.
Consequently, the purpose of this report is to have a clear understanding of the
surrounding business environment and gain awareness by meeting the consumers’
wants and needs. This is necessary in order to be able to successfully launch within
Australia, but in order to reduce the risks, research and analysis is needed. With regards
to methodology of this report, both primary and secondary research was undertaken.
The main primary research was a survey conducted, which was done through a
quantitative research with a focus group of a group of twelve people, and a in-depth
interview with a Korean owner of a Patbingsu store in South Korea through Skype.
Qualitative research was formed form the quantitative and enable the survey to be
completed, with the main finding presenting the majority of the respondents out of 110,
that price, location and taste is important for a product such as Patbingsu.
Secondary research was seen necessary, as it was able to complete a picture of the
industry, bot internal and external, which assisted in creating the SWOT. With this in
place strategies was created through the marketing mix. The external analysis was done
using a PEST analysis and main findings displayed opportunities for Red Bean
Snowflakes as Australians desire for sweets are still strong and expected to increase.
The ice cream and dessert industry is described as being very dominated and expected
to further increase. Australians are considered to be amongst the largest consumers of ice
cream in the world, consuming approximately eighteen liters of ice cream each year. Even
with a growing health-conscious population, the products found within this industry are
actually following this trend, which is why the industry is has done so well. With Patbingsu
being a healthy dessert, it is likely that it will succeed in such a health conscious market. With
the main target being Asian demographics in Australia, opportunity was also found to be
with non-Asians, as Australians was found to be a pragmatic culture not afraid to try
new food and dessert products. Also, a large increase of Asian tourists presents a huge
opportunity. Assistance from Austrade was a possibility. Factors that pose as a threat is
that well-established competitors had taken prime locations in the city, and competition
is expected to increase further. Bargaining power of suppliers was medium to high, and
price fluctuations for products occur. Substitute also exists within the market, and
consumer spending has currently dropped.
As Patbingsu is new to the market, strategies and tactics had to be balanced with this
“new to the world product”. Advertising through media, social media and promotional
events and cross-promotional events are needed. If all fall in place accordingly, the
profitability of this business is considered to be very positive; best case scenario for
2013 at $1,464,950, while worst case scenario for 2013 at $292,990. To analyze the
consumer decision making process the linkage and association between the proposed
strategies and buyer behavior theories will be applied. This process was conducted through
motivating the customers to eventually and voluntarily wanting to purchase Patbingsu. Also,
utilizing various learning approaches through repeating various promotion methods was taken.
To induce customers to remember the RBS brand through constant learning methods and
repetition of a certain pattern was considered. Creating the brand attitude by engaging in
promoting and supporting events in addition to the regular advertisements was ventured.
24790 Business Project Eun-Jeong Kim 11270954 1

Table of Contents
Executive Summary ............................................................................................................................. 1
1. Introduction ....................................................................................................................................... 4
2. Development Process ....................................................................................................................... 5
2.1 Primary Research ..................................................................................................................................... 5
2.2 Secondary Research ................................................................................................................................. 5
3.Survey Details ...........................................................................................Error! Bookmark not defined.
The survey was generated based on the focus group, and was created on 12st of October 2012. A
total of 130 surveys were given out. Out of the 130 surveys, fifty was sent through email and eighty
was given out as a hardcopy. A total of 128 participants answered the survey; however, only 110
were found qualified. In order for the surveys to be more useful, the surveys were given out in front
of the direct competitors’ store; Meet Fresh in Chinatown and ZenQ in George Street. As the main
target market for RBS are the Asian demographics, it is important to note that 120 respondents were
from an Asian background and fifty-nine participants were females. ....................................................... 5
2. Situational Analysis ......................................................................................................................... 6
2.1 External Preliminary Analysis of Australia ....................................................................................... 6
2.1.1 Political and Legal............................................................................................................................................ 6
2.1.2 Economic ............................................................................................................................................................ 8
2.1.3 Social and Culture ............................................................................................................................................ 8
2.1.4 Technology ...................................................................................................................................................... 10
2.2 Analyzing Environment ....................................................................................................................... 10
2.2.1 Threat of New Entrants................................................................................................................................ 10
2.2.2 Bargaining Power of Suppliers ................................................................................................................. 10
2.2.3 Bargaining Power of Buyers ...................................................................................................................... 11
2.2.4 Threat of Substitute products ..................................................................................................................... 11
2.2.5 Competitive Rivalry Within the Industry............................................................................................... 11
2.3 Key Competitors Analysis ................................................................................................................... 11
2.3.1 Direct Competitors ........................................................................................................................................ 13
2.4 SWOT ....................................................................................................................................................... 15
3. Marketing Mix Strategies ............................................................................................................ 16
3.1 Product ..................................................................................................................................................... 16
3.2 Price .......................................................................................................................................................... 16
3.3 Place .......................................................................................................................................................... 16
3.3.1 Distribution Strategy .................................................................................................................................... 16
3.3.2 Distribution Process ...................................................................................................................................... 17
3.3.3 Place................................................................................................................................................................... 17
3.4 Promotion ................................................................................................................................................ 18
3.4.1 Strategy ............................................................................................................................................................. 18
3.4.2 Advertisement Through Media ................................................................................................................. 18
3.4.3 Advertisement Through Social Media .................................................................................................... 19
3.4.4 Advertisement Through Promotional Events ....................................................................................... 19
3.4.5 Cross Promotion ............................................................................................................................................ 19
4.Consumer Decision Making Process .......................................................................................... 19
4.1 Motivation ............................................................................................................................................... 19
4.2 Learning ................................................................................................................................................... 20
4.3 Attitude..................................................................................................................................................... 21
4.4 Personality Theory ................................................................................................................................ 22

4.5 Adaption................................................................................................................................................... 22
5. Profit................................................................................................................................................. 22
6. Conclusion ....................................................................................................................................... 23
X. References ...................................................................................................................................... 24
X. Appendices ................................................................................... Error! Bookmark not defined.
X.1 Appendix A – Environmental Influences ........................................................................................ 29
X.1.1 Appendix A1 – Political ............................................................................................................................. 29
3.1.2 Appendix A2 – Economic........................................................................................................................... 29
X.1.3 Appendix A3 – Legal .................................................................................................................................. 30
X.1 Appendix B – Levels of Competition for RBS ............................................................................... 31
X.2 Appendix C............................................................................................................................................. 33
X.1 Appendix D – Meet Fresh Menu ....................................................................................................... 34
X.1 Appendix E – ZenQ Menu .................................................................................................................. 35
X. Appendix X – Development Process ................................................................................................... 36
X. Appendix X – A Survey of “Red Bean Snowflakes” (Patbingsu) ................................................ 37
X. Appendix X – Survey Analysis............................................................................................................. 42
X. Appendix X – Survey Results ............................................................................................................... 43
X.X Appendix X ............................................................................................................................................. 50
X.X.1 Financial Analysis and Scenarios ............................................................................................................ 50

1. Introduction
The purpose of this project is to understand the surrounding business environment and to gain
awareness through meeting the customers’ wants and needs, in order to launch a successful
business. With this in mind, it has come to the attention of the business company Red Bean
Snowflakes that such wants and needs are missing while planning to open in Sydney. Red
Bean Snowflakes [from here on referred to as RBS] is a new company that will open its first
store in 2013 in Sydney, Australia. The product is from South Korea and it is called
Patbingsu. It offers good quality taste, as well as health benefits. It has been popular in Korea
for many years. It mainly consists of azuki red beans and shaved milk ice. Main target
markets are Asians living in Sydney. An identical product currently does not exist in
Australia; however direct competition exists as product form, as some Taiwanese desserts
shops are selling similar products and they have already established franchise shops in several
areas in Sydney. As obesity has become one of Australia’s most crucial health concerns,
customers have adopted healthier eating habits and they are more cautious regarding to what
they consume (Connell 2012). This made more health-conscious consumers look for healthier
food and desserts. The dessert industry, such as ice cream and other desserts products have
followed this trend and consequently the industry has done quite well (IBISworld 2012).
With the objective to successfully launch Red Bean Snowflakes into the Australian market,
many researches and analysis seem to be required. This report therefore consists of a
situational analysis with an outlook on the macro factors within PEST in order to have a
better understanding of the opportunities and threats. It was also important to get an insight to
the strengths and weaknesses, analysing the surrounding environment using Porter’s Five
Forces. By defining the SWOT, it is possible to create marketing mix strategies accordingly.
A profit analysis was also taken into account in order to fully evaluate the level of
profitability within this market so as to see whether it is an attractive market, covering the
best and worst case scenario. With regards to the target market, a qualitative approach was
conducted and it gave a better insight about into how to adopt Patbingsu to the consumer and
the market. This is also complemented using consumer decision making process theories;
Maslow’s hierarchy of needs, tricomponent attitude model and Neo-Freudian theory.

2. Development Process
2.1 Primary Research
The use of primary research was collected through a structured survey to test assumptions,
which were pointed out from the use of secondary research. First, a focus group of twelve
respondents was invited to answer a qualitative questionnaire [see 9.6 Appendix F]. Then a
random sampling from customers that were near the direct competitor shops was employed
and emails were sent out to get an answer regarding the survey gaining a representative
number of the respondents. The results was analysed through a statistical method. This
process was done using the component analysis and factor analysis, which can bring about
better insights [see 9.10 Appendix K].
2.2 Secondary Research

Industrial reports, magazines and reliable online sources will be the most reliable sources to
obtain information and to find out background information relating to the RBS and its market.
Other secondary research will be taken to gain more information regarding the individual
information and what segment of consumers will be considered as beneficial to target the
segments. With a cross analysis, detailed information will be used to assist the company and
identify the potential customers for the product are. The segmental factors include
information in accordance with demographic, behavioural, geographic and psychographic
factors. The integrated information would be used as a process to form a questionnaire for the
primary research to examine the potential acceptance of the product by the consumers. The
chosen target segments of RBS are the Asian demographics. This target segment was chosen
according to the behavioural and psychographic variables, such as their values, activity
patterns and lifestyles that can induce them to consume Patbingsu.
2.3 Survey Details

The survey was generated based on the focus group, and was created on 12th of October
2012. A total of 130 surveys were given out. Out of the 130 surveys, fifty was sent through
email and eighty was given out as a hardcopy. A total of 128 participants answered the
survey; however, only 110 were found qualified. In order for the surveys to be more useful,
the surveys were given out in front of the direct competitors’ store; Meet Fresh in Chinatown
and ZenQ in George Street. As the main target market for RBS are the Asian demographics, it

is important to note that 110 respondents were from an Asian background and fifty-nine
participants were females.
The limitation was that most of the respondents were from Chinatown, which limits the
opinions of the actual target groups. Conceivably, more surveys should be conducted in order
to fully represent the actual Asian Demographics. Additional surveys should be conducted
towards other ethnicity to get a better understanding of other possible target markets.
3. Situational Analysis
3.1 External Preliminary Analysis of Australia
In order to understand the macro environmental factors that will affect the RBS, a PEST
analysis will be used. This process will allow giving a better understanding of the
opportunities and threats within the political, legal, economic, social, culture, and technology
factors (Mind Tools 2012).
3.1.1 Political and Legal

3.1.1.1 Political
The government of Australia and its political situation is considered quite stable. It has been
displayed by acknowledged international third parties and index monitoring that the risk is
low, consequently considered as a safe investment destination. The political system is highly
dedicated in creating economic stability and growth [see 9.1.1 Appendix A1]. Australia
belongs to major international and economic trade bodies such as: World Trade Organization,
Asia-Pacific Economic Cooperation and Organization for Economic Cooperation and
Development (CIA 2012). The government has a very laissez-faire policy in regards to
foreign investment into the country (PwC 2012).
Currently, since 2009, negotiations are still ongoing in regards to the Australia-Korea Free
Trade Agreements, which has aims to remove trade barriers and tariffs. The negotiations are
expected to come to an agreement in the near future, and will certainly have some kind of
effect on businesses between the two, as imports and exports will be more efficient and
profitable for businesses of both countries (Department of Foreign Affairs and Trade 2012).

The relationship between the two economic powers of South Korea and Australia can be best
described as friendly and having a strong collaboration, in which both nations wants to further
improve on. This is evident according to the 1992 Australia-Korea Foundation, AKF, founded
to promote and foster the bilateral relationship (Australian Embassy 2012). Consequently,
businesses from both nations can seek assistance from their respective governments. Austrade
is a governmental agency specializing in assisting and promoting businesses to and out of
Australia, offering reports, internal information, contacts and other kind of assistance
(Austrade 2012a).
3.1.1.2 Legal
The Australia’s legal system is built on an English model known as the common law;
however it has a modern open legal system that is liberal towards the business regulation [see
9.1.2 Appendix A2] (CIA 2012). Accordingly, any businesses must be coherent with laws and
procedures. The following sub-sectors present the most relevant laws for RBS.
3.1.1.2.1 NSW Legislations

Occupational Health and Safety Act 2000, or OH&S, exists to promote and ensure safety,
health and welfare at the workplace for the workers, in which responsibility is placed on the
employers. Risks to any related injuries, accidents or even death will be reduced through
ensuring and applying training for workers with standards in place, such as codes of practice
(Legislation NSW 2011)
Anti-Discrimination Act 1977 requires that all employees have equal rights; subsequently,
the employer must certify that the workplace is free of any form of discrimination
(Legislation NSW 2012a)
Fair Work Act 2009 ensures that the employer follow industry standards towards staff,
which functions as a protection for the employees, such as minimum wage, dispute resolution
and prohibition of any unfair dismissal (Fair Work Act 2012)
Smoke-Free-Environment Act 2000 ensures that both the workplace and consumer areas are
smoke-free zones, in which no smoking signs should be displayed (Legislation NSW 2012b).

Food Act 2003 has objective to guarantee that all food that is sold and kept on the premise is
safe and suitable for human consumption (Legislation NSW 2012c). This can be done using
procedures such as First-in-First-out, ‘FIFO’, and following the Hazard Analysis Critical
Control Points program, “HACCP” (HACCP 2012). With regards to dairy milk products; ice
cream, the following must be adhered to:
- Standard Code – Standard 2.5.6 (2011) – Ice cream must not exceed above 100g/kg of
milk fat and 168 g/litre of food solids (ComLaw 2012).
3.1.2 Economic
Australia’s economy is considered to be strong and likely to grow continually [see 9.1.3
Appendix A3]. It has survived the global economic financial crisis, which started from the fall
of 2008, very well, and grew with 1.4 per cent in 2009, 2.7 per cent in 2010, and 1.8 per cent
in 2011 resulting in the budget deficit to be predicted to be below 4.2 per cent below the
GDP. (CIA 2012). Currently, consumer spending has dipped according to business sales
indicator released with 0.4 per cent resulting in consumers likely holding on to their money
(ABC News 2012). With such pessimist times about the current economy, the Reserve Bank
of Australia cut the interest rate by 0.25 per cent, making it now 3.25 per cent (Reserve Bank
of Australia 2012). It is expected that this is temporary and that spending will increase by the
end of this year (ABC News 2012).
Tourism in Australia is a major economic resource, in which the government put much effort
and investment in promoting. While western tourists declined, Asian tourist increased being
worth staggering AU$10 billion (McCarthy 2012). The total of South Korean tourist is
seventeen per cent, and Japanese tourist of sixteen per cent; however the most important
travelers to focus on are Chinese tourists(Packham 2012). They make up the largest tourist
group compared to other nations, and also have the highest spending patterns. The numbers of
tourists increased twenty-six per cent totaling up to 547,000 Chinese tourists and are expected
to rise again for 2012. In fact, Chinese tourists have increased significantly over the last ten
years, with an average of 16.5 per cent per year (Department of Resources, Energy and
Tourism 2012)
3.1.3 Social and Culture

The Australian population of 22,015,576 consists of ninety-two per cent Caucasian, seven per
cent Asian, and one per cent aboriginal and others. The demographical situation of the

population is like that of many developed nations [see 9.1.4 Appendix A4] (CIA 2012).
Australian culture and South Korean culture is very different [see 9.2 Appendix B]. The
psychic distance, between the two countries, which is the perceived cultural differences
between a two countries, is a score of 20.3 (Fletcher & Crawford 2011). Hofstede’s Five
Dimensions of Culture was utilized to analyze the Australian culture (Hofstede 2012):
- Power distance is scored at thirty-six presenting that Australians see hierarchy simply
as a convenience by which communication is informal, direct and participative. This
means that lower rank people have almost equal rights to their superiors.
- Individualism is scored at ninety, which indicates that the culture is very
individualized and people will look only after themselves and their close families. For
businesses, people are expected to demonstrate imitativeness, as well as independence.
- Masculinity is scored at sixty-one. This explains that Australians strives to do their
best at an individual level. They can be proud of their own achievements and success.
- Uncertainty avoidance scores fifty-one, which means that a pragmatic culture exists
in Australia. Australins are at ease and generally do not oppose to taking risks. Thus,
acceptance of new ideas is welcomed enough. People do not mind trying new and
different ideas, innovative products, practices and even food.
- Long-Term Orientation has a score thirty-one, deeming Australians as short-term
orientation, which means that a traditions and social obligations is a norm. It also
portrays that quick results are important.
3.1.3.1 Australian Ice Cream and Dessert Market

The current and future outlook for the ice cream and dessert industry in Australia is bright
(IBISworld 2012). Australians are considered to be amongst the largest consumers of ice
cream in the world, consuming approximately eighteen liters of ice cream each year, and is
behind the USA consuming twenty-three liters, and New Zealand eating consuming twenty
liters each year. With regards to other dairy desserts, such as mousses, crème caramels and the
likes are experiencing steady growth, while other sweet desserts are growing steadily (Daily
Australia 2012). Although sweet products are popular in Australians, a consideration of health
issues has grown stronger over the past years. This trend has caused restrictions over
consuming sweet products and driven a large demand for healthier desserts (IBISworld 2012).

3.1.4 Technology
Australia is considered as a technologically advanced country for businesses [see 9.1.5
Appendix A2] (CIA 2012). Government invests approximately AU$35.6 billion on online
internet connections, reliability and speed in their national broadband network program,
which is expected to be completed in 2021. Increasing the speed of internet significantly will
be completed in 2015 (NBN 2012). The current infrastructure is well established and
developed (Nations of Encyclopedia 2012). Yet when congestions occurs, the government
will invest heavily on its improvement (Austrade 2012b)
3.2 Analyzing Environment

To be able to analyze the micro factors within the industry relevant to RBS, Porter’s Five
Forces will be applied, which will be able to create appropriate strategies and to reduce the
risks from various industry threats (Hill, Jones, Galvin & Haidar, 2007).
3.2.1 Threat of New Entrants

The threats of new entrants are considered to be low to as opening an ice cream or a dessert
store is relatively easy. However many prime locations are already taken in Sydney, and many
ice cream and other sweet stores have established themselves strongly with recognizable
brand names. To be successful in opening such a business preparing time for investment
should be appropriate. Acquisition of capital is also an important factor; however, getting
loans from banks are not an easy task, which has made it hard to set up a business in Australia
(The Society 2012). Yet, in Australia even during the recession, the ice cream industry was
highly profitable and new companies have knocked to the markets and will continue to try to
enter, resulting in more intense competition (IBISworld 2010).
3.2.2 Bargaining Power of Suppliers

This is regarded as medium to high. The ingredients used to create RBS’s products are not
hard to find and exists in plenty around the world, but due to the reasons that RBS is not a
major company and price fluctuations exists, bargaining power of suppliers are strong.
Domestic prices of milk have tendency to fluctuate, as well as price for sugar, which are both
main key ingredients for producing ice cream, which will determine the price for it. Also, the
manufacturers are major players that do not give any serious negotiations for price to small
businesses. This means that the prices are given. Even so, buyers are able to switch amongst a

number of suppliers (IBISworld 2012). Other commodities, such as red azuki beans and other
toppings are easy to find and have many suppliers available to choose from (Alibaba 2012).
3.2.3 Bargaining Power of Buyers

This is found to be low to medium. People have become price sensitive, even when
surrounded amongst well-known brand names, and can easily switch to cheaper substitutes
products accordingly to their preference. This is especially true with the current economic
climate [see section 2.1.2]. Even so, with regards to direct competition of RBS, there are not
many such products offerings available except from a few brand stores in Sydney. Therefore,
price, tastes, service and quality will determine the price consumers are willing to pay
(IBISworld 2012)
3.2.4 Threat of Substitute products

This is considered medium. A large number of substitutes exist in dairy and sweet products,
which can indulge the consumers with sweetness. Examples of such substitute products are
frozen yoghurt, milkshakes, smoothies, sorbets and sherbets, popsicles and the likes. Further,
due to the social trends of living and being healthy, potential consumers have the choice of
choosing healthier alternatives to ice cream and other sweets, which increases the threat of
substitute products (Healthy Ice Cream Substitutes 2010).
3.2.5 Competitive Rivalry Within the Industry

Recognized as low to medium. Although many sweet product stores exists in Sydney, such as
ice creams, chocolate and patisserie, only a few competes with RBS with regards to same
“product form competition” (Winer & Dhar 2011). Patbingsu is very popular in China,
Taiwan, South Korea and Japan, resulting in a high competitiveness. But Patbingsu is a new
product in Australia, opening up the market’s potential for RBS (Jones 2011). Not many
competitors exist, but two stands out as very strong, Meet Fresh and ZenQ, as they have been
established some time ago and have gained their brand loyalty quite well.
3.3 Key Competitors Analysis

Although Patbingsu is a “new to the world product”, meaning products that create a whole
new market, there are many competitors that have similar features (Crawford & Benedetto
2011). The competitors are divided into four levels according to the ‘Product-Industry

Hierarchy’ circle [see 9.3 Appendix C]. This method assists in defining where the product
stands in the industry according to the customer’s perspective. The brands that are categorized
into the first level of the ring are the direct competitors of RBS. This level is called the
‘Product Form Competition.’ In this level of competition products or services of the same
product type are considered as the competitor brand. The focused features in this category are
products that provide the same items to our target segments (Winer & Dhar 2011). The brands
chosen for this category are Meet Fresh and ZenQ [see section 2.3.1 Direct Competitors].
The second level is the product Class and Category. This level focuses on brands that show
similar or same functions (Winer & Dhar 2011). The main focus is on brands that sell similar
products such as ice cream or yogurt ice cream. The brands chosen for this category are
Moochi and Baskin Robbins.
The third level is the generic competition. At this level all products or services are fulfilling
the need of customer’s required satisfaction on a particular purchase or for a usage. The
chosen category is the supermarket where they offer a wide variety of food including ice
cream products and various other household products (Winer & Dhar 2011). The brands
chosen for this category are Woolworth and Coles.
The fourth level is the budget competition. Any products related or unrelated with RBS can
be viewed as a substitutable product in this level (Winer & Dhar 2011). The chosen brands
are linked to the provision of any type of desserts. The brands chosen for this category are
Max Brenner and San Churro.

3.3.1 Direct Competitors
3.3.1.1 Meet Fresh
Meet Fresh is originally from Taiwan and is considered to be
one of the largest and successful franchised Taiwanese dessert
company. It has expanded its market in a short period (Meet
Fresh 2012b). They have quickly become a favorite dessert
amongst Asians and other ethnic groups in Sydney. This is
highly indicated through various blogs and online review sites. It
received eighty-two per cent approval ratings from 164 people
(UrbanSpoon n.d.a). To date, they have 1,338 ‘likes’ on
Facebook (Facebook 2012). Their menu is large and offers many
(Meet Fresh 2012a) choices in different categories; seven versions of taro balls
desserts, eight herbal jelly desserts, ten Tofu pudding versions,
three winter melon tea desserts and another eight other tea
dessert versions, as well as four whipped cream tea desserts, and
six cold desserts [see 9.4 Appendix D] (Meet Fresh 2012c).
There are nine stores in Australia, with seven in Sydney located
in prime locations, such as Chinatown, George Street and
Chatswood (Meet Fresh 2012d).
3.3.1.2 ZenQ
ZenQ is another Taiwanese company that newly opened a store
in George street; other locations are Chatswood and North Ryde
(ZenQ 2012a). Mixed opinions from consumers exist with an
overall sixty-eight per cent by twenty-two reviewers so far
(UrbanSpoon n.d.b). Even so, they have around 582 ‘likes’ on
Facebook (Facebook 2012b). It offers similar products as Meet
Fresh; however they have products standing out. The menu
offers choices, consumers can create their own sweet base of
(ZenQ 2012a) five flavors with fifteen different topics. Further, other desserts
available are six honey toast, five grass jelly, five red bean and
five barley and five black glutinous rice soups, four
pudding ,four sago/black pearl soups, four shaved ice cream and

five snow ice [see 9.4 Appendix E] (ZenQ 2012b).

3.4 SWOT
Strengths Weaknesses
 Renowned product amongst Koreans  Relatively unknown product to non-
 Offers familiar tastes to Asians Asian Australians
 First mover advantage  Seasonal product
 Healthy products  First mover risks
 Located in Korea-Town of Sydney  Easy to copy products
CBD location  Un-existing contracts with suppliers
 Premium quality  Bargaining power of consumers
 Business starts during summer  Unfamiliar Brand
holiday season of 2013
Opportunities Threats
 Australia-Korea Free Trade  Consumer spending has currently
Agreement dropped
 Assistance from Austrade  Many prime locations are taken by
 Strong growing economy other dessert shops
 Consumer spending expected to  Banks are reluctant to borrow to small
increase by end of 2012 businesses
 Increase of Asian tourists  Competition is expected to increase
 Australian’s desire for sweets are  Price fluctuations for products
expected to increase  Bargaining power of suppliers is
 Many potential suppliers medium to high
 Pragmatic culture  Substitute products exists in market
 A large base of Asians resides in  Well established competitors
Sydney

4. Marketing Mix Strategies
4.1 Product
Patbingsu is a popular shaved ice dessert in South Korea enjoyed by many Koreans of all ages
especially during summer seasons, as well as other warm days (Koo 2008). The basic
ingredients for Patbingsu are shaved ice topped with ice cream, sweetened condensed milk
and sweetened azuki beans called ‘Pat’. Along with Asians, Australians are becoming more
health conscious and are becoming very interested in food with added health benefits for a
way to control and mange health issues such as weight (Queensland Government 2012).
Understandably, health is a highly important issue, and as RBS have ingredients on the menu
that is healthy. Through the healthy benefits that Patbinsu provides, positive emotions
towards the brand will most likely be achieved. As this product is suitable for warm seasons;
Sydney has a long a summer season that would be fitting to launch the product in.
4.2 Price
Based on observation, the average price of main competitors in the marketplace is $7.00
dollars. Consumers tend to buy a new product with less resistance when it has a similar price
with the existing products (Jabir, Kapoor & Moorthy 2010). The price of Patbingsu will be set
at $8.00 dollars, which has been developed based on the profit for the business [see 9.11
Appendix L] and also being similar to the average price of the competitor market. Even so, it
will be regarded as premium quality product since it has a benefit of being first to the market,
as well as additional health benefits. The survey also indicates with a majority of the
respondents indicating that they are willing to pay between $6.00 – $10.00 dollars [see 9.10
appendix K].
4.3 Place
4.3.1 Distribution Strategy
To accomplish a good flow of the channel it is imperative to consider the relationship across
the channel system and their distributors (Ruekert & Churchill 1984). To create satisfaction
among the distribution channel partners, behaviours and attitudes are important factors to
consider. The two elements to consider are coordination and cooperation; the willingness of
the channel members to work with each other, and the joint activities performed within these
members (Payan 2007). A satisfied channel will lead to the establishment of high levels of
commitment among its channel partners (Dowling, Gray, Hill & Liesch 2009). As Patbingsu

utilizes many ingredients, it is imperative for RBS to form positive relationship among its
distribution channel members.
4.3.2 Distribution Process

RBS will use the following distribution process
Retailer
Manufacturer Customer
(RBSF)
In this channel, the manufacturer produces the products required by the RBS retail shop
through a store ordering process and then sends it out to the RBS retail outlet. RBS
subsequently receives the products, merchandises the stock according to standards and then
sells the product directly to the consumer.
This existing Channel is the biggest revenue raiser and allows RBS the tightest reigns of
control over the distribution channel. It allows RBS to best control pricing, distribution,
ranging and stock weights to ensure better rates of efficiency and objective of effectiveness.
4.3.3 Place
(Google Map 2012)

Patbingsu is also very popular as a dessert at cafés located in the many “Korea-Towns” of
New York, Los Angeles, and Atlanta (Amter 2008). As displayed on the map RBS will also
be located in Pitt Street of Korea-Town located in the Sydney CBD area. The target market
for RBS are the Asian demographics. Koreans are one of the mainly focused target segment.
For Koreans Patbingsu is a renowned item, which is in other words, the location for RBS can
attract many potential target segments.
4.4 Promotion
4.4.1 Strategy
The product is new to the Australian market, therefore amongst the Australian consumers it
can be regarded as a “new to the world product”. RBS offers great premium benefits such as
great taste, health and price, which were also highlighted in the survey response, as very
important [see Appendix SURVEY]. These beneficial features will make rational and
emotional appeals by focusing mainly on the consumer's practical, functional and utilitarian
needs. The most efficient promotion method is strategic advertisement, which will be
designed specifically to directly target the customer segments. The effect of an advertisement
is powerful in terms of making a brand image or forming a consumer’s attitude towards the
brand (Stanton & Herbst 2006). As processing the new to the world product would be risky
and costly, it is important to adopt the efficient and effective launching tactics (Bergstein &
Estelami 2002).
4.4.2 Advertisement Through Media

The staple proposed of the promotional strategies is to effectively utilise the Informational
communication strategy because it helps create an image that is long-lasting (Holm 2006).
RBS will promote through multiple marketing strategies. The elaboration likelihood model
of persuasion will be used, in which a central route of persuasion can be utilized by adopting
audio-visual presentations (Yuan 2011). The first visual media method is the television
advertisement. The second method is the radio advertisement. For the practical and effective
promotion, the radio program targeting the main segment group will be chosen. The third
method is print media, such as newspapers and magazines.
These various advertising methods will target the Asian demographics. To easily reach the
target group individually, RBS will effectively utilize specific channels, such as SBS Korea,
Asian TV programmes and SBS Korea, Japan and China radio stations for promotion. In

order to effectively reach the target market and other potential consumers the advertisements
will be allocated strategically and proportionally.
4.4.3 Advertisement Through Social Media

Utilization of the social media will help proliferate positive word-of-mouth about the product
and easily provide information on the functional merits (Wright, Nile, Harrington & Lee
2010). To stimulate the purchase facilitation motive, directing links to the relevant website
through YouTube and various social networking sites (SNS) methods like Facebook and
Twitter will be taken. Further, using the SNS, RBS will be able to reach consumers more
easily and be able to promote directly to them, as well as consumers being able to give
feedback easily.
4.4.4 Advertisement Through Promotional Events

This will occur mainly in front of the RBS shop, where a kiosk will attract consumers and
offer free tasting or free samples of the product. This process will be an important element to
educate the customers of the features and benefits of the product. To target the segmented
audiences, promotional events will also be held at various events.
4.4.5 Cross Promotion

This will be taken through collaboration with renowned Korean and Chinese restaurants to
promote RBS products. Posters will be attached in the restaurants and discount vouchers will
be handed out to the customers who visit the restaurants.
5.Consumer Decision Making Process

In this part the linkage and association between the proposed strategies and buyer behavior
theories will be applied to analyze the consumer decision making process.
5.1 Motivation
As Patbingsu is something new within Australia; researching the type of motivation that
coaxes customers to try eating food that they are not familiar with and the needs to consume
such products is an essential procedure. Australians are very conscious about their health
issues (IBISworld 2012). As some of the ingredients used in Patbingsu are azuki red beans
and milk, which are considered as healthy products, RBS will apply the positive motivation

approach and will through marketing inform and emphasize towards consumers having them
able to anticipate their healthy lifestyle (Bhaskaran& Hardley2002). This is possible by
having RBS emphasize on the healthy features of the ingredients used in the product to make
the customers acknowledge the benefits they can get.
According to Maslow's hierarchy of needs, the first and basic levels of needs are
physiological needs, such as food and water. These are very essential elements and eventually
people need them for various reasons (Maslow 1954). RBS will appeal to the customers that
the provision of Patbingsu will fulfill and satisfy the consumer’s cravings by making aware of
benefits, such as good taste and satisfaction. People have more motivation to change their
behavior if the outcome received by a new pattern of behavior is positive (Lachowetz, Clark,
Irwin & Cornwell 2002). According to the cognitive arousal method, out of an awareness of
needs to be healthy and also to fulfill their cravings, customers will likely eventually and
voluntarily want to purchase Patbingsu (Bhaskaran & Hardley 2002).
5.2 Learning
RBS will take an approach to make the consumers accustomed to Patbingsu through
repetition, cognitive learning and instrumental conditioning. Additionally RBS will try to
apply the reinforcement schedule approach by differentiating the slogan from the direct
competitor brands, which is used in psychology to refer to anything stimulus that strengthens
or increases the probability of a specific response (Miller, Atkins & Van Nes 2005). This goal
will be accomplished by constantly repeating the new slogan “Healthy and Delicious”. This
slogan should be repeated through various promotion methods to make customers memorize
it easily, reinforcing the brand equity and maintaining RBS as a strong brand (Micael &
Rosengren 2005). Another approach is an instrumental conditioning approach where learning
is created by pairing positive experience with reinforcements through health benefits from the
product (Maia 2009). Motivation through emphasizing health benefits to customers will help
them enjoy good appearance through health improvements. If customers are satisfied with
what they have learned through purchasing RBS products, the probability of repeating the
patterned behavior is very high (Bhaskaran & Hardley 2002). In the next step RBS will utilize
the memory of the awareness in collaboration with renowned Korean and Chinese restaurants
for cross promotion. A repetition of a certain pattern through constant learning method will
mitigate the degree of forgetfulness (Moschis 1981).

5.3 Attitude
Although the short-term goal for RBS is to target the Asian demographics, the long-term goal
is to become a nationwide franchise shop. To accomplish this goal creating awareness for
Patbingsu to the Australian population is essential by making the product familiar.
Conation
Cognition Affect
(ReferenceBB text)
One of the reasons why Australians hesitate to try Asian desserts is the cognitive components
of attitude that they have for unfamiliar products (Stafford 2007). For many years, Australians
have had perceptions that Asian desserts utilizing ingredients, such as azuki beans are
developed mainly for Asians (McLaughlin 2003). Australian’s prejudice about Asian style
dessert has prevented them from making the choice of behavior to eat this type of dessert
(Jalalkamali & Nikbin 2010). RBS will make their efforts to change the attitudes towards
Patbingsu by applying the tricomponent attitude model. RBS will escape this pitfall by
providing customized and innovative benefits, which can be acquired through elaborate items.
The promotional strategy recommends that RBS utilize booth stands where it will attract
consumers and offer free samples of the product. People's attitudes become stronger when
people are frequently exposed or are highly involved with certain objects. Strong attitudes are
highly embedded into people's internal and external structure (Tenbült, Vries, Dreezens &
Martijn 2008). In order to change the prejudice and hesitating attitude towards the product
RBS needs to constantly emphasize the product’s merits through various other promotional
methods, creating positive awareness and making the product renowned.

5.4 Personality Theory
According to Neo-Freudian theory development of a personality, social relationships and
community belongings is fundamental to the formation of cognitive perception (Frosh 2009).
By promoting the product through various events the brand would harness a sense of
belongingness to the community. Customers would recognize the brand not only as a dessert
shop, but also as a social place, which will form an image of social bonding and togetherness
laying foundation for better response in the future. Horney’s characterization model also
explains that by associating with well-known Korean and Chinese restaurants, it can influence
consumer behavior creating a brands personality through these methods (Rendon 2008).
5.5 Adaption
Advertisements will be promoted repeatedly through different media channels. Absolute
threshold level naturally increases through this process. This will require intensifying the
level of advertisement influence to continuously grab attention (Schiffman, Bednall, O'Cass,
Paladino, Ward & Kanuk 2008). Thus if RBS engages in promoting and supporting events in
addition to the regular advertisements, it will result in a higher level of stimulus than their
absolute threshold level, hence bringing greater awareness and interest to the product.
6. Profit
To assess the profitability of this business, a calculation was created using both best and worst
case scenario profit, which was then further calculated for three years with a growth of three
per cent each year; 2013, 2014 and 2015 [see Appendix]. Most importantly was that it was
found that there will be profit, even for worst case scenario for each of the three years
calculated.
Table 6A
(357 days (minus public holidays) x (one serve of Patbingsu x (estimated profit
percentage3))) x (number of target market living in Sydney x percentage of potential
best/worst case scenario5) = profit (x number of year(s))
Red Bean Snow Flakes

Best case scenario: (357 x (8.00 x 0.015)) x (683,917 x 0.05) = $1,464,950

Worst case scenario: (357 x (8.00 x 0.015)) x (683,917 x 0.01) = $292,990
The table presents the calculation and the best and worst profit case scenario for RBS. An
explanation of how this has been created is explained in 9.11 Appendix L
Best case scenario for each of the following years gave the following: $1,464,950 for 2013,
$1,508,899 for 2014, and $1,554,166 for 2015. For worst case scenario, each of the following
years gave the following: $292,990 for 2013, $301,780 for 2014, and $310,833 for 2015
7. Conclusion
Having conducted this report, it is clear that Patbingsu has a potential for success in Sydney
with the target market and could very well establish itself to open other stores around Sydney,
as well as the potential to target other target segments. With regards to limitations, more
surveys should be conducted before launching Red Bean Snowflakes within the market. The
primary and secondary research, as well as other theoretical analysis predicts a very strong
market potential for RBS. Patbingsu offers premium features such as healthy benefits as well
as a low calorie contents. It can successfully fill the high quality-healthy dessert gap in the
consumer market. As a first mover being the first entrant it also gives an advantage to
Patbingsu to create a standard for this product. A strong image build-up throughout to
constantly gain market share will fight off future competition. With a prediction of a growth
of three per cent each year, Patbingsu can be considered a very viable product. As a premium
product, priced very attractively at AUD $8.00 Patbingsu has the potential to be a runaway
success when supported by this dynamic business plan.

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9. References
9.1 Appendix A – Environmental Influences
9.1.1 Appendix A1 – Political
Political factor Current situation
Official Name Commonwealth of Australia
Government Type Capitalism and democracy
Government Structure Chief of state (Queen of Australia; UK;
Elisabeth II); represented by Governor
General. Prime Minister and deputy Prime
Minster are elected through elections;
governor is appointed by the monarch
(recommendation of PM), then legislative
elections resulting in the majority party or
leader of the coalition is made Prime Minister.
Political Parties  Liberal Party of Australia
 National Party of Australia
 Australian Labor Party
 Australian Greens
 Katter’s Australian Party
 Democratic Labor Party
Political Stability1 Score of 3.6
Note:
Score of 10 most risky
Political Risk2 Score 15
Very Low (Country Risk Tier rated 1 out of 5)
Note:
Score of 100 most risky
Country Risk Tier 5 most risky
Administrative Divisions 43 local governments
(CIA 2012)
9.1.2 Appendix A2 – Economic

Economic factor Current situation
GDP US$926.2 billion
GDP in real growth rate 2%
Inflation Rate 3.4%
Budget:
 Revenue US$473.2 billion
 Expenditures US$521.8 billion
External Debt US$1.376 billion
Inflation Rate:
 2011 3.4%
 2012 2.8%
Total Population 22,015,576
Employment 94.7%
Unemployment 5.3%

Labor force by occupation 3.6% agriculture
21.1% industry
75% services
GDP World Ranking 19
(CIA 2012)
9.1.3 Appendix A3 – Legal

Legal factor Current situation
Legal System Common law, which is based on the English
model
Legislative Branch Federal Parliament
 Senate with 76 seats
 House of Representatives with 150
seats
Judicial Branch High court
World Ranking
Intellectual Property Protection3 12 (world ranking) (13)
Corruption Perception Index3 8 (16)
(CIA 2012)
9.1.4 Appendix A4 – Social and Culture

Cultural Factor Current situation
Official Language Australian
Population Growth Rate 3.78%
Age structure:
 0 to 4 years 6.6%
 5 to 17 years 17%
 18 to 64 years 59.9%
 60 to 84 years 15.1%
 85 years and over 1.6%
Income distribution:
 Median individual AU$518
 Median household AU$1,154
 Median Family AU$1,350
Main languages speaking: 3.9%
Arabic 3.0%
Cantonese  2.4%
Mandarin 2.0%
Greek 1.8%
Vietnamese Italian  1.7%
Spanish  1.1%
Filipino 1.1%
Hindi 0.9%
Korean 0.9%
Aesthetics – Colours
Meaning4:
 White Peace, Angel, Good
 Black Mourning, Death, Bad

 Red Love, Passion, Danger
 Yellow Joy, Cowardliness, Caution
 Blue Sadness, Cold, Water
 Green Spring, Money
Majority Religion:
Catholic 29.1%
Anglican 17.9%
Orthodox  4.3%
Islam  3.9%
Buddhism  3.7%
Uniting Church 3.3%
Presbyterian 2.6%
Reformed 2.1%
Other Christian 1.7%
Hinduism 1.5%
(CIA 2012)
9.1.5 Appendix A5 – Technology

Technology Factor Current situation
Investment in R&D:
Primary Industries 16.6%
Manufacturing  25.5%
Services 41.5%
Electricity, gas, water and waste services 26%
Wholesale trade  39.8%
Professional, scientific and technical services 30.6%
(New South Wales Government 2012)
Note
1. AMB Country Risk 2012
2. Economist Intelligence Unit 2012
3. NSW Government 2012
4. Tektronic 1998

9.2 Appendix B – Levels of Competition for RBS
(Hofstede 2012)

9.3 Appendix C – Level of Competition
Budget
Generic
Compeition
Product Class
Product Form
(Winer & Dhar 2011)

9.4 Appendix D – Meet Fresh Menu
(Flickr 2012)

9.5 Appendix E – ZenQ Menu
(ZenQ 2012b)

9.6 Appendix F – Development Process
Research Objectives
 Identify opportunities within the Australian ice cream related dessert market.
 Explore consumers’ perceptions and reactions about Patbingsu.
 Track potential areas of satisfaction and dissatisfaction with Patbingsu product.
 Define customers’ needs for Patbingsu.
 Prioritize market segments regarding their needs and the market opportunities.
 Evaluate consumer attitude and behavior toward Patbingsu.
 Measure market potential size and growth as well as purchase intention.
 Select a strategy that will create brand awareness and brand equity around the new
product to the target customer.
Project Timing Plan

Stage Timeframe Research Type
One Development Process Qualitative Research:
- In-depth interview
- Focus group
Two Development Process Quantitative Research:
- Face-to-face surveys
- Email surveys
Three Launch Quantitative Research:
(Will be done after RBS - Email surveys
have been established some
time)
Sampling Frame and Rationale

 Stage 1 – In-depth interviews are essential to start the research process. In-depth
interview through Skype with the owner of the renowned Patbingsu shop called “Meal
Top” company in South Korea was done. The Direct interview process assisted in
acquiring necessary information and also helped clarify relevant issues. The focus
group was needed to ensure an efficient and effective survey could be created; 2
groups of six respondents each were conducted. This process allowed getting some
basic ideas of the market and how to approach the Australian dessert market,
consequently it resulted in creating the survey.
 Stage 2 – Face-to-face survey have high responding rate. In this process, 115
respondents from proportional range of age 18 to 65 years old and over responded it is
important to use this approach, but in a limited proportion. Email surveys are speed
collection of data
 Stage 3 – This stage will have feedbacks from consumers who tried Patbingsu.
 Research should be undertaken in Sydney.
(Zikmund & Babin 2010)

9.7 Appendix G – Qualitative Questionnaire for Focus Group
QUESTIONS FOR RED BEAN SNOW FLAKE FOCUS

GROUP
Q1: What is your favorite dessert?
Q2: How often do you eat it?
Q3: Does calories effect your choice of dessert?
Q4: How often do you eat ice cream?
Q5: What is you favorite ice cream brand?
Q6: Are you aware of Patbingsu?
IF YES:
Where and when did you last try it?
How often do you consume it?
Q6A: Did you like it?
IF NO:
Q6B: Would you like to try it? Why or Why not?
Q7: What kind of recommendations do you have for Patbingsu?

9.8 Appendix H – A Survey of “Red Bean Snowflakes” (Patbingsu)
Dear Sir/Madam,
I am a student undertaking a postgraduate subject called Business, Project University of

Technology of Sydney. The aim of this survey is to better understand the market for iced
desserts/sweets in Sydney. This is not intended as a commercial research but as an academic
purpose. Any information provided in this questionnaire will be kept confidential and will not
be made available to third parties. Your cooperation is highly appreciated.
Section One –Habits

Questions from this section will ask about your ice cream purchase habits from an ice cream
shop.
Question 1: Do you eat ice cream form a specialist ice cream store? Please tick the
appropriate box. (Note: not from convenient stores, such a 7-eleven)
 Yes  No
If you have chosen ‘no’, then thank you for your time, if you have chosen ‘yes’, then please go
to question 2.
Question 2: What is your favourite ice cream store? Please tick the appropriate box.
 Passion Flower  Baskin Robbins
 Ben and Jerry’s  Wowcow
 Cold Rock  Gelatomassi
Other - Please Specify _________________________________________________
Questions 3: How frequently do you eat ice Cream from an ice cream shop? Please tick
the appropriate box.
 Every Day  Once every two weeks
 Several times a week  Once a month
 Once a week  Several times a year
Question 4: How much would you spend for yourself when buying ice cream from an ice
cream shop? Please tick the appropriate box.
 $1-$5  $16-20
 $6-$10  $21-25
 $11-$15  $26 and more

Question 5: What is the main reason you eat ice cream? Please rank from 1 most
preferred to 5 least preferred
To fulfill cravings _______

To feel happiness _______
As a dessert after a meal _______
When the weather is hot _______
Enjoy the taste _______
If other-please specify
___________________ _______
___________________ _______
Section Two – Opinion about the ‘Patbingsu’ dessert

Questions from this section will ask your opinion on the Patbingsu dessert. Patbingsu is a
popular shaved ice dessert in South Korea, which is enjoyed by many Koreans of all ages.
The basic ingredients for Patbingsu are shaved ice topped with ice cream, sweetened
condensed milk and sweetened azuki beans called ‘Pat’.
Question 6: Have you ever tried an Asian style shaved ice dessert from the following
shops? Please tick the appropriate box.
 Meet Fresh  ZenQ
 Both Meet Fresh and Zen Q  No

Please go to question 9
If you have chosen a brand could you kindly indicate and specify the name of the
Product?
___________________________________________________________________________
_________________________________________
Question 7: Please indicate your level of satisfaction of your overall experience of the
dessert. Please circle the appropriate number.
Scale
Completely 1 2 3 4 5 6 7 Completely
unsatisfied satisfied
Question 8: Would you purchase the dessert again? Please tick the appropriate box.
 Yes  No

Question 9: If you had to walk to an ice cream store to buy ice cream, how far would
you go?
 1-5min  21-30 min
 6-10 min  31-60 min
 11-20 min  61 min or more
Question 10: Would you consider trying Patbingsu?

 Yes  No
Please go to question 15
If no please specify Why?

___________________________________________________________________________
___________________________________________________________________________
________________________
Question 11: How much would spend for Patbingsu (800 grams per serving)? Please tick
 $1-$5  $16-20
 $6-$10  $21-25
 $11-$15  $26 and more
Question 12: What extra ingredients would you consider adding? Please tick the
appropriate box. (Note: you may choose more than one. (The basic ingredients for Patbingsu
are shaved ice topped with ice cream, sweetened condensed milk and sweetened azuki beans
called ‘Pat’)
 Fruit Syrups  Jelly
 Nuts  Fruits
 Cereal Flakes  Rice cakes
 No extra ingredients
Question 13: What flavour would you when eating Patbingsu? Please tick the
appropriate box.
 Vanilla Milk  Coffee
 Green Tea  Strawberry
 Mango  Various Fruits
Question 14: Please select the most important factor that you will consider if you were
purchasing Patbingsu. Please tick the appropriate box.
 Price  Size
 Low Calories  Taste
 Weather  Location of shop

Section three – Personal Questions

Questions from this section will ask about your personal details.
This will only be used for statistical purposes and are confidential.
Question 15? Please tick the appropriate box.

 19-25  46-55
 26-35  56-65
 36-45  Over 65
Question 16: What is your gender? Please tick the appropriate box.
 Male  Female
Question 17: Where do you live? Please indicate your postcode?

__________________________________________________________________
Question 18: What is your present occupation? Please indicate if applicable.

___________________________________________________________________
Question 19: What is your annual individual income? Please tick the appropriate box.
 Under $30,000  $90,000 - $119,999
 $30,000 - $59,999  $120,000 - $149,99
 $60,000 - $89,999  Over $150,000
Thank you for you time, the survey is now complete.

Your feedback is greatly appreciated!

9.9 Appendix J – Survey Analysis
The survey was generated based on the focus group, and was created on 12th of October
2012.
Survey Key Results

The 110 respondents were found to be living mostly in Sydney and others in Ultimo. The age
of RBS targets segments are divided into two age-cohort groups; fifteen to twenty-five years
old and twenty-six to thirty-five years old. Seventy-four of the respondent’s age range were
within a range from twenty-six to thirty-five years old and twenty-six respondents were
within twenty-six to twenty-five years old. The participants had the following ice cream
consumption pattern from a shop; fifty-six eats it once every two weeks, twenty-five several
time a week, while twenty responded once a month. It was a split decision in regards to their
favourite ice cream store, highest being Gelatomassi with twenty-three, while lowest was both
Ben and Jerry’s and Cold Rock with fifteen responses. The primarily amount they will spend
on ice cream was between $6.00 to $10.00, with the main reason being that they simply enjoy
the taste, and others chose that they consume ice cream as a dessert after a meal.
Relating to questions regards to Asian desserts, forty-three had an experience with the most
popular Asian dessert shop in Sydney, Meet Fresh and ZenQ, while sixty-seven did not have
any experience. Based on their level of satisfaction with the Asian dessert, a scale of one
being completely unsatisfied and seven as completely satisfied, twelve participants choose
three, followed by eleven participants choosing four. The result was mainly towards being
between unsatisfied and neutral. Even so, thirty-two responded that they would still purchase
the dessert again. Walking distance was found to be an important factor. The majority of
forty-six responded they would walk for six to ten minutes, while thirty-four would only walk
for a maximum of five minutes.
When asked about Patbingsu, 105 answered that they would consider trying the product. It
was found that low calorie, price and taste were important in choosing to consume Patbingsu.
Consequently, sixty-four were willing to pay around $6.00 to $10.00 and forty-one around
$11.00 to $15.00. Patbingsu appears to be very versatile, as many indicated that extra
ingredients would be considered. The most popular extra ingredients were fruits, in which
forty participants responded. It is important to note that only a few respondents chose rice
cakes and no extra ingredients. As with choosing flavour, the most preferred was vanilla milk,
as thirty-one responded, while the least favourite was with strawberry, as only five responded.

9.10 Appendix K – Survey Results
Section One – Habits
Question 1: Do you eat ice cream from a specialist ice cream store? Please tick the
appropriate box (Note: not from convenient shops, such a 7-eleven).
No 18
Yes 110
Question 2: What is your favorite Ice cream store? Please tick the appropriate box.
22 23
17 18
15 15
Questions 3: How frequently do you eat Ice Cream from an ice cream shop? Please tick
60 56
50
40
30 25
20
20
9
10
0
Every Day Once a week Several Once every Once a Several
times a two weeks month times a year
week

Question 4: How much would you spend for yourself when buying ice cream from an ice
cream shop? Please tick the appropriate box.
53
30
19
7
1
$1-$5 $6-$10 $11-$15 $16-20 $21-25 $26 and more
Question 5: What is the main reason you eat ice cream? Please rank from 1 most
preferred to 5 least preferred
52
39
10
4 5
To fulfil To feel As a desert after When the Enjoy the taste

cravings happiness a meal weather is hot

Section Two – Opinion about the ‘Patbingsu’ dessert
Question 6: Have you ever tried an Asian style shaved ice dessert from the following
shops? Please tick the appropriate box.
67
22
8 8
Meet Fresh ZenQ Both Meet Fresh and No, Please go to

Zen Q question 9
If you have chosen a brand could you kindly indicate and specify the name of the
Product?
Ice cream 4
Shaved ice with toppings 8
Question 7: Please indicate your level of satisfaction of your overall experience of the
dessert. Please circle the appropriate number.
Scale
12
11
6
5 5
3
1
1 (completely 2 3 4 (neutral) 5 6 7 (completely

unsatisfied) satisfied)

Question 8: Would you purchase the dessert again? Please tick the appropriate box.
No 11
Yes 32
Question 9: If you had to walk to an ice cream store to buy ice cream, how far would
you go?
46
34
15 14
1-5 min 6-10 min 11-20 min 21-30 min 31-60 min 61 min or
more
Question 10: Would you consider trying Patbingsu?
No, go to question 15 5
Yes 105

Question 11: How much would spend for Patbingsu (800 grams per serving)? Please tick
64
41
$1-$5 $6-$10 $11-$15 $16-20 $21-25 $26 and more
Question 12: What extra ingredients would you consider adding? Please tick the
appropriate box. (Note: you may choose more than one. (The basic ingredients for Patbingsu
are shaved ice topped with ice cream, sweetened condensed milk and sweetened azuki beans
called ‘Pat’)
40
20
13 15
12
3 2
Question 13: What flavor would you consider when eating Patbingsu? Please tick the
appropriate box.
31
19 18 18
14
Vanilla Milk Green Tea Mango Coffee Strawberry Various Other -

Fruits Please
Specify

Question 14: Please select the most important factor that you will consider if you were
purchasing Patbingsu. Please tick the appropriate box.
41
33
24
6
4
2
Price Low Calories Weather Size Taste Location of Other -

shop Please
Specify
Section three – Personal Questions

Question 15? Please tick the appropriate box.
74
26
8
2
19-25 26-35 36-45 46-55 56-65 Over 65

Question 16: What is your gender? Please tick the appropriate box.
Female 59
Male 51
Question 17: Where do you live? Please indicate your postcode.
2007 (Ultimo) 15
2000 (Sydney) 55
Question 18: What is your present occupation? Please indicate if applicable.
Part time student 44
Student 37
Question 19: What is your annual individual income? Please tick the appropriate box.
55
37
15
Under $30,000 - $60,000 - $90,000 - $120,000 - Over

$30,000 $59,999 $89,999 $119,999 $149,99 $150,000

9.11 Appendix L – Profitability
9.11.1 L1 – Financial Analysis and Scenarios
In order to evaluate financial profitability for Red Bean Snowflakes, a calculation will assist
to providing a projected best and worst case scenario for three years; 2013, 2014 and 2015.
Table L1 is a formula created and used to find the best and worst case scenarios for the profit.
Table L1
(357 days (minus public holidays)1 x (one serve of Patbingsu2 x (estimated profit
percentage3))) x (number of target market living in Sydney4 x percentage of potential
best/worst case scenario5) = profit (x number of year(s)6)
Red Bean Snow Flakes

Best case scenario: (357 x (8.00 x 0.015)) x (683,917 x 0.05) = $1,464,950
Worst case scenario: (357 x (8.00 x 0.015)) x (683,917 x 0.01) = $292,990
Notes
1. Red Bean Snowflakes will be open everyday, except during eight days of
public holidays, which is as following: New Year’s Day, Australia Day, Good
Friday, Easter Monday, Anzac Day, Queen’s Birthday, Christmas Day and
Boxing Day (Australian Government 2012).
2. One serve of Patbingsu sold at Red Bean Snowflake to consumers is priced at
$8.00 dollars.
3. Costs and other expenses must be included in order to have the revenue, which
is therefore assumed that each Patbingsu sold generates profit of 1.5 per cent
for the business (although very low, it displays a very realistic percentage)
4. Target market is considered mainly to be of Asian demographics, and it was
found that approximately 16.6 per cent were living in Sydney, a figure of
683,917; however, it should be added that the census available on this is from
2006 (ABS 2006)
5. To be realistic, the target market in Sydney will be calculated based on best
case scenario of ten per cent and worst case scenario of three per cent.
6. It will be assumed that each year has a growth of three per cent for the
business, as word-of-mouth spreads, efficient and effective marketing, social
media and popularity growth amongst consumers for Red Bean Snowflakes
Limitations:
Although the assumptions made were presented to be as realistic as possible, it must be stated
that it is not perfect, and more research and calculations should be followed in order to
minimize the risk of uncertainty within this calculation. Even so, it does assist in creating a
likely profit for the business.

Best Case Scenario
Year Profit
2013 $1,464,950
2014 $1,508,899
2015 $1,554,166
Best Case Scenario

1580000
1560000
1540000
1520000
Profit
1500000
1480000
1460000
1440000
1420000
1 2 3
Year
The formula used displays that there is profit for the first, second and third year; 2013, 2014
and 2015 respectively.
Best Case Scenario

Year Profit
2013 $292,990
2014 $301,780
2015 $310,833
Worst Case Scenario

315000
310000
305000
300000
Profit
295000
290000
285000
280000
1 2 3
Year
Even with a worst case scenario profit, the formula used displays that there is profit for the
first, second and third year; 2013, 2014 and 2015 respectively. Most importantly is that the
figures are not negative; however, simply means that return on investment will take some
time.

Marketing Plan for Korean Dessert Cafe

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Business Proposal

University of Technology, Sydney

Unit 1521 / 702-720 Harris Street, Ultimo NSW 2007

24790 Business Project Eun-Jeong Kim 11270954 1

24790 Business Project Eun-Jeong Kim 11270954 2

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2.2 Secondary Research

2.3 Survey Details

24790 Business Project Eun-Jeong Kim 11270954 5

3.1.1 Political and Legal

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3.1.1.2.1 NSW Legislations

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3.1.3 Social and Culture

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3.1.3.1 Australian Ice Cream and Dessert Market

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3.2 Analyzing Environment

3.2.1 Threat of New Entrants

3.2.2 Bargaining Power of Suppliers

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3.2.3 Bargaining Power of Buyers

3.2.4 Threat of Substitute products

3.2.5 Competitive Rivalry Within the Industry

3.3 Key Competitors Analysis

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4.3.2 Distribution Process

(Google Map 2012)

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4.4.2 Advertisement Through Media

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4.4.3 Advertisement Through Social Media

4.4.4 Advertisement Through Promotional Events

4.4.5 Cross Promotion

5.Consumer Decision Making Process

24790 Business Project Eun-Jeong Kim 11270954 19

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Red Bean Snow Flakes

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24790 Business Project Eun-Jeong Kim 11270954 23

Alibaba 2012, Red Azuki Beans, viewed 2 October 2012,

AMB Country Risk 2012, Australia, viewed 20 September 2012,

Austrade 2012a, Exporters, Buyers, Investors, viewed 27 September 2012,

Austrade 2012a, Exporters, Buyers, Investors, viewed 27 September 2012,

Australian Embassy 2012, AKF – About us, viewed 19 September 2012,

CIA 2012, Australia, viewed 25 September 2012,

Daily Australia 2012, fresh products, viewed 22 October 2012,

24790 Business Project Eun-Jeong Kim 11270954 24

Facebook 2012a, Meet Fresh Australia, viewed 12 October 2012,

Facebook 2012b, ZenQ Australia, viewed 12 October 2012,

Flickr 2012, Meet Fresh menu picture, viewed 22 October 2012,

Google Map 2012, Pitt Street, viewed 23 October 2012,

HACCP 2012, HACCP Australia Services, viewed 30 September 2012,

Healthy Ice Cream Substitutes 2010, viewed 2 October 2012, <http://www.3fatchicks.com/7-

Hofstede, G. 2012, Australia, viewed 29 September 2012, <http://geert-