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Strategic alternatives
1. Heavily market product toward youth aged 5-12 by reaching them through schools, parks, children’s activities etc. because 20% of China’s pop. Is under the age of 15.
Since there are 1.5 million children in China, we think Carvel could reach between 10% and 25% of that population. With 10% of them buying 2 cakes a year, at an average cake cost of 110 Rmb. Carvel could make 3.3 million Rmb. in revenues. With 25%, they could make up to 8.25 million Rmb.
2. Direct Carvel’s marketing at middle-upper class working professionals age 25-45 by opening stores only in high-end locations (ie. restaurants) to build exclusivity. With 1.9 million people in this market, we think Carvel could reach between 5% and 15% of their population. If 5% were to buy 2 cakes a year at an average cost of 110 Rmb. Carvel could make 2.1 million Rmb. in revenues. If 15% were to do the same, they could make 6.27 million Rmb.

3. Begin our marking process in Beijing with a short-term focus on the expatriates. There are not many of them in comparison to the two other markets we could target, which suits our current marketing budget. They will recognize the brand and we will have easier sales. In the future we could expand to reach other markets.

If Carvel were able to reach 20% of this market, with each of these people buying two cakes a year at 110 Rmb. they could have revenues of 4.4 million Rmb. If they were able to reach 30%, their revenues could reach up to 6.6 million

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