Saint Honore Cake Shop: Analysis

With increasing mean allowance of Hong Kong population, mass are having surpassing purchasing dominion on epicurism emanations such as desserts and cakes. There are prefer opponents acid in the Japanese Style Cake Shops: Yamasaki Bakery, Panash Bakery and Arome Bakery. Solid opponents such as Maxim’s Cake Supply has as-well revitalized the infamy and has capaciousr menace on Saint Honore Cake Supply Ltd. (“Saint Honore”). Traditional Chinese cakes supply approve Wing Wah and Kee Wah Bakery are as-well growing which may discuss Saint Honore sales in the neighboring forthcoming. To survive in the bakery toil, Saint Honore must ascertain it way to correct, detain and use the negotiate.

Company Background

Saint Honore Cake Supply ordinary its chief supply in 1972 and is the one of the most lucky cake supplys in Hong Kong. Its begetd own retailing operations to construction, sunder and vend bakery emanations in their own infamy and own proof.

In 1995, Saint Honore set up an ISO accredited factory delay spontaneous document in Shenzhen. In 2000, Saint Honore Holdings Limited luckyly became the chief listed assemblage in Hong Kong’s bakery toil. In 2007, Saint Honore was adventitious and privatized by the Convenience Retail Asia Limited and became a constituent of the Li & Fung Group.

Saint Honore set up the Saint Honore Cake Supply fetters in Hong Kong, Guangzhou and Macau gone 1972. Currently, there are balance 100 supplys and occupying a key situation in these negotiates delay annual sales turnbalance of HK$702 favorite in 2009. And Saint Honore was awarded Hong Kong Top Infamy in 2010.

Saint Honore’s sidearm is to grace the in in bakery toil, vital in emanation newfangledness and produce justifiable influence delay cheerful-tempered-tempered character in serious worth.


In the departed few years, Saint Honore has reuplift the infamy representation and afloat to uplift up their negotiate divide. An update and innovative representation are built by the assemblage and contested delay the conceptech inside contemplation of the supplys and lots.

New emanation directions and utilitys are clarified to produce by Saint Honore to contest delay divergent negotiate segments. New emanations approve Baby Cakes, Principal Cakes and Snowy Mooncakes etc.

The ocean concrete is to expand the negotiate divide in East Asia by new emanation bud and the enhanced utilitys.


The chief target customers are housewife who senile 35-50 delay the excellentest convenience to escheatment meats and cakes frequently for rise expenditure. New target customers are childisher adults who senile 20-34 for their new emanations.

Marketing Strategy

Market-Penetration Strategy

Saint Honore clarified excellent population areas to set up their cake supplys to neighboring the target customers of ages 20-50, who are formal meat and cake supplyper for rise mind. Establish constituentship VIP club to detain the relationship delay the solid customers and get new customers through the referral programs. Saint Honore produced emend boons to the customers than the ocean opponents, Maxim’s Cake Shop.

Product Bud and Diversification

New emanation directions started and contested delay the reanimation contrivance for the cake supplys in 2008 to 2009. Saint Honore upgraded the infamy representation and acid to cheerful-fortune by incessantly correctd sales in which the annual sales turnbalance surges to HKD703 favorite.

Focus on the childisher progeny who are ready to squander prefer principal for emend character of cakes, so Baby Cakes and Principal Cakes are launching gone 2009. Excellent tea manner increasing in Hong Kong and grace a tend, so excellent end emanations end in quick growth of sales.

Saint Honore notified that a quick growth of owning pets, new archearchemark of cakes for pet’s birthday observance are launching as the pet owners are ready to squander principal on their pets rather than having posterity.

Marketing Mix


Saint Honore prefaced prefer than 200 new and correctd emanations to negotiate gone 2008. Baby Cakes and Principal Cakes delay charming and agreeable contemplation, other emanations are clarified cakes, triturate cakes, peculiar assemblage of birthday cakes are detain in cheerful-tempered-tempered qualities and ends in increasing the sales.


Saint Honore noticeable the cakes in low worth. The worth class starts for low end emanations; An clarified cake is HK$4.00, excellent end emanations; Principal cake and Baby Cake is HK$13.00 and triturates cake starts from HK$138.00.

Cash discounts and VIP constituentship tender are used by Saint Honore.

Issuing cake coupons to let customers to rescue cakes are a niggardly way in bakery toil. Customers can get prefer discounts if they are ready to escheatment a capacious magnitude of cake coupons.


Shop subsidences

There are 83 supplys lodge in supplyping malls, residential and commercial areas in Hong Kong.


Customers can assign an classify on Saint honore’s website, hotlines and supplys.


Under Lee Fung Groups,


Saint Honore produces peculiar discounts on new emanations to contest delay advertising.

Offering discounts on principal escheatment and website classifying.

Join elevation delay bank and prefer VIP tender to allegiant customer.

Cartoon characters loose boon is tendered when escheatment connected emanation.

Employ dainty supply assistants to produce emend utility and as-well preface emanations.

Price Competition

In the Bakery Industry, the rivalry is competitive. There are sundry weak secret supplys produced low end emanations. All pricing are elucidation at very low worth at HKD2.00-HKD12.00. And other archearchemark is Japanese Style Cake Supply approve Yamasaki Bakery, Panash Bakery and Arome Bakery, they produced a excellent end emanations and set surpassing worth at HKD12.00-HKD30.00. But the ocean opponent of Saint Honore is Maxim’s Cake Shop, they are having common situations. They are owned by a capacious Assemblage Group, having a capacious reckon of fetter supplys, identical targeting, common emanations directions and situation.

Saint Honore divided all emanations in two emanation directions, one is low end emanations and other is excellent end emanations. The low end emanations, approve meats and clarified cakes, set at a referring-to low enhancement at HK$4.00 and meats in rise lot singly at HK$12.00. Saint Honore uses this emanation direction oceanly abutting the indivisible cake supplys. The excellent end emanations set at surpassing worth at HK$13.00 and use for constitute prefer negotiate divide at the competitive smooths.

Pricing Strategy

Co-operative pricing occurs if worths abide aloft competitive smooths. Saint Honore and her opponents Maxim’s frequently beget some campaigns to encounter each other. For in, the cake coupon, it consume HK$48.00 for one dozen of cake. But if customers escheatment a capacious reckon of cake coupons, they frame get the peculiar discounts. At this spell of dates, Saint Honore frame constitute prefer negotiate divide in this inadequate date of spell. If Maxim’s retaliates, the negotiate divide frame tail to the peculiar smooth and the worth is inferior and this frame fabricate twain firms getting worse.

Tit-for-tat policy is clarified to use by Saint Honore at the low end and excellent end emanations. Tit-for-tat policy is alert to contest whatever qualify in policy a opponent fabricates. Due to the departed proof, Saint Honore stably to set the worth at HK$4.00 for one ingredient of clarified cake and HK$13.00 for a principal cake. As Saint Honore don’t scantiness to be undersold and distinguish that Maxim’s frame prosper the identical worth cut level there is no any avail to constitute in the worth severe.


Saint Honore is one of the capaciousr cake supplys in Hong Kong which has the force to beget estimate and possess a competitive utility balance other firms in the bakery toil.

The target negotiate of Saint Honore is housewife in ages of 35 to 50 and demand to educe a negotiate tendering. The tendering is situationed in the minds of the target buyers as delivering prefer boons and utilitys.

Strategic Positioning

Cost in

Compared delay the opponents Maxim’s and Arome Bakery, Saint Honore squanders hither principal in elevations. Due to inferior advertising consume, Saint Honore detains a unsuppressed representation of the infamy. But Saint Honore tenders choice cake in excellent character delay a referring-toly low worth. Saint Honore has knowledge the housewife does not demand belief advertisements and elevations. So they detain using this situationing policy and luckyly constitute the negotiate divide. Saint Honore situations the two emanation directions in the most consume-effective emanations that a consumer can buy and scantinesss to buy.

Selection of the subsidence, Saint Honore selects cheerful-tempered-tempered subsidences which are preparedly profitable for target negotiate but are in hither rich area. This can prefer subject the consume and listing worth to contest the situationing policy.

Maxim’s squanders prefer principal in elevations. Maxim’s recontemplation the infamy logo and the worth of the emanations directions set surpassing than Saint Honore due to prefer crossovers delay other infamys in new emanations contemplation. The subsidence of Maxim’s frequently at MTR business, surpassing rents due to confrontment surpassing consume. The worth of the low end emanations is the identical delay Saint Honore but the worth of excellent end emanations is a shabby bit surpassing than Saint Honore.

Benefit Leadership

Saint Honore clarified to use consume utility in the low end emanations and use boon utility in the excellent end emanations due to some customers are worth easily-affected and frame not pay prefer principal for enhanced emanation character and performances. Boon In is prefer convenient to use in excellent end emanations to fascinate new target customers and constitute prefer negotiate divides. Childish progeny is very relevant owing they indicate forthcoming fruits if infamy-loyalty is built.


Saint Honore has a unsuppressed and severe infamy representation, chief target customers as housewife and new target customers as childish progeny. To detain the negotiate situation and growth target segments, Saint Honore demands to inspect opportunities and subject menaces. Delay prefer opponents append in the negotiate, re-uplift the infamy representation can aid Saint Honore to be prefer unappropriated.


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