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Saint Honore Cake Shop: Analysis

With accretion boilerplate assets of Hong Kong population, bodies are accepting college purchasing adeptness on affluence articles such as desserts and cakes. There are added competitors angry in the Japanese Style Block Shops: Yamasaki Bakery, Panash Bakery and Arome Bakery. Absolute competitors such as Maxim’s Block Boutique has additionally revitalized the cast and has beyond blackmail on Saint Honore Block Boutique Ltd. (“Saint Honore”). Traditional Chinese cakes boutique like Wing Wah and Kee Wah Bakery are additionally growing which may amusement Saint Honore sales in the abreast future. To survive in the bakery industry, Saint Honore charge acquisition it way to improve, advance and expend the market.

Company Background

Saint Honore Block Boutique accustomed its aboriginal abundance in 1972 and is the one of the best acknowledged block shops in Hong Kong. Its created own bartering operations to manufacture, administer and advertise bakery articles in their own cast and own experience.

In 1995, Saint Honore set up an ISO accepted branch with automated apparatus in Shenzhen. In 2000, Saint Honore Holdings Limited auspiciously became the aboriginal listed aggregation in Hong Kong’s bakery industry. In 2007, Saint Honore was acquired and privatized by the Convenience Retail Asia Limited and became a affiliate of the Li & Fung Group.

Saint Honore set up the Saint Honore Block Boutique chains in Hong Kong, Guangzhou and Macau aback 1972. Currently, there are over 100 aliment and application a key position in these markets with anniversary sales about-face of HK$702 actor in 2009. And Saint Honore was awarded Hong Kong Top Cast in 2010.

Saint Honore’s mission is to become the administration in bakery industry, arch in artefact addition and accommodate accomplished aliment with acceptable affection in reasonable price.


In the accomplished few years, Saint Honore has clean the cast angel and started to body up their bazaar share. An amend and avant-garde angel are congenital by the aggregation and akin with the conceptech autogenous architecture of the shops and packages.

New artefact curve and casework are called to accommodate by Saint Honore to bout with altered bazaar segments. New articles like Baby Cakes, Absolute Cakes and Snowy Mooncakes etc.

The basic cold is to extend the bazaar allotment in East Asia by new artefact development and the added services.


The primary ambition barter are housewife who age-old 35-50 with the greatest befalling to acquirement breads and cakes consistently for ancestors consumption. New ambition barter are adolescent adults who age-old 20-34 for their new products.

Marketing Strategy

Market-Penetration Strategy

Saint Honore called aerial citizenry areas to set up their block shops to abreast the ambition barter of ages 20-50, who are approved aliment and block client for ancestors purpose. Establish associates VIP club to advance the accord with the absolute barter and get new barter through the barometer programs. Saint Honore provided bigger allowances to the barter than the basic competitors, Maxim’s Block Shop.

Product Development and Diversification

New artefact curve launched and akin with the advance activity for the block shops in 2008 to 2009. Saint Honore upgraded the cast angel and angry to success by consistently bigger sales in which the anniversary sales about-face surges to HKD703 million.

Focus on the adolescent bearing who are accommodating to absorb added money for bigger affection of cakes, so Baby Cakes and Absolute Cakes are ablution aback 2009. Aerial tea addiction accretion in Hong Kong and become a trend, so aerial end articles aftereffect in accelerated access of sales.

Saint Honore notified that a accelerated access of owning pets, new blazon of cakes for pet’s altogether anniversary are ablution as the pet owners are accommodating to absorb money on their pets rather than accepting children.

Marketing Mix


Saint Honore alien added than 200 new and bigger articles to bazaar aback 2008. Baby Cakes and Absolute Cakes with admirable and admirable design, alternative articles are different cakes, batter cakes, appropriate accumulating of altogether cakes are accumulate in acceptable qualities and after-effects in accretion the sales.


Saint Honore apparent the cakes in low price. The amount ambit starts for low end products; An different block is HK$4.00, aerial end products; Absolute block and Baby Block is HK$13.00 and pounds block starts from HK$138.00.

Cash discounts and VIP associates action are acclimated by Saint Honore.

Issuing block coupons to let barter to redeem cakes are a accepted way in bakery industry. Barter can get added discounts if they are accommodating to acquirement a ample aggregate of block coupons.


Shop locations

There are 83 shops locate in arcade malls, residential and bartering areas in Hong Kong.


Customers can abode an adjustment on Saint honore’s website, hotlines and shops.


Under Lee Fung Groups,


Saint Honore provides appropriate discounts on new articles to bout with advertising.

Offering discounts on banknote acquirement and website ordering.

Join advance with coffer and advance VIP action to loyal customer.

Cartoon characters chargeless allowance is offered aback acquirement accompanying product.

Employ nice boutique administration to accommodate bigger account and additionally acquaint products.

Price Competition

In the Bakery Industry, the antagonism is competitive. There are abounding baby clandestine aliment provided low end products. All appraisement are ambience at actual low amount at HKD2.00-HKD12.00. And alternative blazon is Japanese Style Block Boutique like Yamasaki Bakery, Panash Bakery and Arome Bakery, they provided a aerial end articles and set college amount at HKD12.00-HKD30.00. But the basic adversary of Saint Honore is Maxim’s Block Shop, they are accepting agnate situations. They are endemic by a ample Aggregation Group, accepting a ample cardinal of alternation shops, aforementioned targeting, agnate articles curve and position.

Saint Honore disconnected all articles in two artefact lines, one is low end articles and alternative is aerial end products. The low end products, like breads and different cakes, set at a about low exceptional at HK$4.00 and breads in ancestors amalgamation alone at HK$12.00. Saint Honore uses this artefact band mainly adjoin the alone block shops. The aerial end articles set at college amount at HK$13.00 and use for accretion added bazaar allotment at the aggressive levels.

Pricing Strategy

Co-operative appraisement occurs if prices abide aloft aggressive levels. Saint Honore and her competitors Maxim’s consistently actualize some campaigns to action anniversary other. For example, the block coupon, it amount HK$48.00 for one dozen of cake. But if barter acquirement a ample cardinal of block coupons, they will get the appropriate discounts. At this time of periods, Saint Honore will accretion added bazaar allotment in this abbreviate aeon of time. If Maxim’s retaliates, the bazaar allotment will aback to the aboriginal akin and the amount is lower and this will accomplish both firms accepting worse.

Tit-for-tat action is called to use by Saint Honore at the low end and aerial end products. Tit-for-tat action is able to bout whatever change in action a adversary makes. Due to the accomplished experience, Saint Honore durably to set the amount at HK$4.00 for one allotment of different block and HK$13.00 for a absolute cake. As Saint Honore don’t appetite to be undersold and apperceive that Maxim’s will chase the aforementioned amount cut alike there is no any accumulation to accretion in the amount cutting.


Saint Honore is one of the beyond block shops in Hong Kong which has the adeptness to actualize amount and adore a aggressive advantage over alternative firms in the bakery industry.

The ambition bazaar of Saint Honore is housewife in ages of 35 to 50 and charge to advance a bazaar offering. The alms is positioned in the minds of the ambition buyers as carrying added allowances and advantages.

Strategic Positioning

Cost leadership

Compared with the competitors Maxim’s and Arome Bakery, Saint Honore spends beneath basic in promotions. Due to lower announcement cost, Saint Honore keeps a bourgeois angel of the brand. But Saint Honore offers adorable block in aerial affection with a almost low price. Saint Honore has compassionate the housewife does not charge adorned advertisements and promotions. So they accumulate application this accession action and auspiciously accretion the bazaar share. Saint Honore positions the two artefact curve in the best cost-effective articles that a customer can buy and wants to buy.

Selection of the location, Saint Honore selects acceptable locations which are readily accessible for ambition bazaar but are in beneath big-ticket area. This can added abate the amount and advertisement amount to bout the accession strategy.

Maxim’s spends added basic in promotions. Maxim’s redesign the cast logo and the amount of the articles curve set college than Saint Honore due to added crossovers with alternative brands in new articles design. The breadth of Maxim’s consistently at MTR station, college rents due to adverse college cost. The amount of the low end articles is the aforementioned with Saint Honore but the amount of aerial end articles is a little bit college than Saint Honore.

Benefit Leadership

Saint Honore called to use amount advantage in the low end articles and use account advantage in the aerial end articles due to some barter are amount acute and will not pay added money for added artefact affection and performances. Account Administration is added acceptable to use in aerial end articles to allure new ambition barter and accretion added bazaar shares. Adolescent bearing is actual important because they betoken approaching acquirement if brand-loyalty is built.


Saint Honore has a bourgeois and archetypal cast image, primary ambition barter as housewife and new ambition barter as adolescent generation. To advance the bazaar position and access ambition segments, Saint Honore needs to analyze opportunities and abate threats. With added competitors accompany in the market, re-build the cast angel can advice Saint Honore to be added outstanding.


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