Cali Café: A Brand Extension of California Fitness

HKU SPACE Community College

Associate Degree / Higher Diploma Program

(1st Semester 2015-2016)

Introduction to Marketing

        CCBS-4008        

Brand Extension Project

Title: Cali Café: A brand extension of California Fitness

To: Terence Li

Group Members: Mohit Morjani Anil Kumar (106-14-776)

                             Ho Kit ying, Eva (2000-1876)

                             Leung Yee Tak, Daisy (2001-0890)

        Ng Ka Wai, Edith (2000-4753)

        Wu Tsz Wai, Esther (2000-3998)

Word count: 2620 words

Executive Summary

California Fitness Centre expands to open a health-oriented café; Cali Café, which is in line with the company’s objective. Moreover it would help the company gain stronger positioning by adding one more element to maintain customer’s healthy lifestyle.

Looking at the present trend and market potential, Cali Café’s target customers are from 30-50 year old age group, which has highest concern for health and such needs and wants can also be backed by their strong purchasing power. More emphasis will be put on differentiated offers based on genders as both males and females have particularly different concern and concept for health. The corresponding segment strikes a medium between segment growth and structural attractiveness for company’s sustainable sales growth.

The buying behaviors of this group of customers are shaped by four major factors; culture, social, personal and psychological respectively. For instance, some points in each factor include ideal figure among Chinese culture, ones’ reference group and health consciousness for people with higher education background. Lastly, their motive is to sustain themselves by maintaining healthy a lifestyle and contented personal life.

For the marketing mix strategies, 7P’s will be applied as to deliver customers the maximum satisfaction and delight. As the prices would set the quality standards customers mind, It is in best interest to offer more for more. Cali Café would be either located inside the fitness center or close proximity to it. Moreover it would be concentrated in prime area to enhance convenience and to maximize sales during peak hours. In addition, with a powerful tool like social media platform, it would be the most quick and efficient way to get the word out