Pierre Herm Dubai EXECUTIVE SUMMARY Pierre Herm is
Pierre Hermé Dubai
EXECUTIVE SUMMARY � Pierre Hermé is established in France, England Japan, where it is renowned as one of the best French pastry � Nowadays there is a high demand for this business in the Middle -East, where people enjoy a luxurious and indulgent lifestyle and where some of Pierre Hermé’s competitors already settled down. � Our store will be in the Dubai Mall, the major shopping center of the city � Our Pierre Hermé franchisee in Dubai will include: v A store v A café v Cooking lessons
OUR TEAM • ALEXANDRA DE LANGLAIS EDHEC Business School, Product manager at Danone, France, from 2007 to 2010 • KLARA KASPERKOVICS EDHEC Business School & Universita Bocconi Junior marketing manager at Kraft Foods, Hungary, from 2000 to 2011 • SARA AL ABDULLA Dubai’s Women College Financial controller at Burj-El-Arab, Dubai from 2008 to 2011 • HORTENSE ROBINET Rouen Business School Apprenticeship at Fauchon and PR at Pierre Hermé, France, from 2009 to 2011 • MARTINA MARCHETTI LUISS Universita Pastry chief of Marriott Hotel, Italy from 2005 to 2010 Our international team has strong knowledge in food industry and reliable connections in Dubai.
MARKET SIZE Market: Ø Coffee market Total coffee volume sales in the UAE are predicted to grow by 80% from 2009 -2014, with a CAGR of more than 12% over that time period, making it the fastest growing coffee market. Ø Restaurant market Set to grow 30 percent to $780 m in the next four years in UAE Ø Expecting a 4% share of the market Trends in UAE: Ø Ø Ø Target: Ø 18 - 40 yrs old who will head to the coffee shop Ø 35 -65 yrs old who will head to the store to gift their F&F Upgrading standards for food and deserts particularly Poshy lifestyle & high purchasing power High sense of taste and willing to pay to indulge themselves Demand for high-quality service and service Arabs usually choose coffee shops for outings
COMPETITION PASTRY SEGMENT q Upscale French chains : Fauchon, Ladurée q National pastries: Bateel… Reaching a larger segment of the market since the population is composed by more internationals than locals CHOCOLATE SEGMENT COFFEE SHOP SEGMENT q International coffee: Fauchon Café, Armani Caffé, Gloria Jeans… Segment with the greatest amount of competition q Local dessert-focused operators: Fuala… Corresponding to the diversifying demand POTENTIAL ENTRANTS q Casual Café concepts q International chocolate chains: Godiva, Hershey’s, Great American Cookies, Patchi… q Beverage-focused concepts (bars) q Arabic chocolate chains: Grahoui… q Restaurant chains companies No French know-how We aim at building brand loyalty by treating our customers with unexpected goodies and uncommon service (cooking lessons)
GO TO MARKET Our strategic marketing tools to create consumer awareness: � Location characteristics: High degree of pedestrian traffic + high concentration of q q the age groups (18 -40) (35 -65) (mainly in Shopping Malls) Pricing : premium pricing strategy with consumers willing to pay for quality. -Prices same as in Paris – after research their prices are considered affordable in the new market. Promotion: reviews in local newspapers, reaching of influential word-of-mouth advocates (concierges, executive assistants), features in magazines read by target customers, Billboards – as the roads are always in traffic -, promote new flavors in special events to see the acceptance in the market. Events: hosting of grand opening events, private parties and special events for companies and target customers (wedding showers, birthday parties…), business dinners, contribute in fashion shows Restaurant & Hotel Alliances : for dessert and conference facilities. Collaboration with elite restaurants to offer PH macaroons as deserts → Low cost and low risk marketing tools with significant benefits!
FINANCIALS � Investment cost to open the store: $550 000 (key money) � Personal contribution: $20 000*5= $ 100 000 (equipment& initial raw material) � Sales : ~ 500, 000 for the 1 st year � Investment payback within 2 years � Gross margins: 65 -85 %. � Cash-on-cash returns: 55 % � Revenue projection after 1 years: $300 000 � Initial investment demand: $550 000 to cover key money
MILESTONES � First round of financing: $550 000 for the first store and related activities. � Approach for this initial round: 30 % equity, 70 % privately placed convertible debt. � Preferred first-round investor: industry insider or business angel. � The First milestone: opening our first store in Dubai Mall. � The Second milestone : reaching 4% share of the market with a differentiated value proposition. � Expected profitability of the investment within 2 years from the opening of the store. � First round of VC financing, then replication/expansion to acquire new key locations.
WHY INVESTING? �An already established firm approaching customers used to the Hermé name and French pastries. �The growing dimension of this market in UAE. �Top quality product and additional services provided to the customers. �Team members’ expertise and experience in the sector.
Thank You And see you soon at Pierre Hermé Dubai !
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