1

Table Of Contents
1 Executive Summary P.2 - 3
2 Introduction P. 3
3 Overview Of Financial Performance P.3 - 6
4 Financial Review- Trend Analysis. P.6 - 7
5 SWOT Analysis. P.7 - 9
6 Business Plan P.9-16
7 Conclusion P. 16
8 Appendixes P. 16
9 Questionnaire P.17 - 37

1. Executive Summary
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1. Executive Summary
1.1 Vision
HKTV mall, founded in 1992, is a limited company with its main field in online shopping
operations in Hong Kong. Its aims to include to experience the emotion of competition,
winning, and crushing competitors, the joy of advancing and applying technology for
the benefit of the public, as well as to fulfil the desire of self-actualization and "to
become everything that one is capable of becoming”.
1.2 Current State Of Business
HKTV group is at an asset level of more than 2 trillion. Its current main business is
HKTV mall, an online shopping mall including an OTT platform offering real time and
VOD drama and infotainment programs. Its average order value is up to 537,000 HKD.
They have a decreased in loss value by 160 million.
1.3 Strategic Direction Of Its Online Shopping
HKTV group emphasizes on its HKTV mall online shopping operations, aiming at the
e-commerce development of HK. It explores the limits of HK’s retail market It provides
convenient services, cheap goods so as to beat its competitors.
1.4 Key Findings
1.4.1 Financial Analysis
HKTVmall has improved a lot in profitability margin, management efficiency and the
performance but the Group still have rooms for improvement. The Group is advised to
solve the difficulties regarding its insufficient liquidity and solvency in order to pay the
debts and repay the liabilities in the promised period to mushroom its investors’
confidence. Owing to financial review, the Group has generated less net loss and able
to turn over the inventory and assets with an ideal time.
1.4.2 Non-financial Analysis
As shown in the questionnaire conducted and the findings in shown in SWOT analysis,
the Group is able to provide a wide range of product choice and sell its products in a
reasonable price. Besides, HKTVmall is able to serve its customers with its 24-hour
online shopping platform and well-organized as well as all rounded O2O platform.
Nevertheless, the Group fails to provide sufficient post-purchase services and fails to
retain customers’ loyalty, which are the main reasons for losing potential customers.
1.5 Key Recommendation
Increasing its competitiveness, the group should catch up with customers’ needs and
wants. Our strategies are based on our business model- SMILE (Sustainability,
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Measurability, Integrity, Laughter and Enthusiasm). Thus, HKTV Pay and

enhancement in promotion in various platforms are proposed.

2. Introduction
2.1 Background
HKTVmall’s performance is worse than previous year after analyzing, the business
proposed is proposed with suggestion to improve its performance.
2.2 Objectives And Scope Of The Business Proposal
In this business proposal, HKTVmall’s performance in 2017 and 2016 are reviewed. A
questionnaire is conducted to investigate the public’s impression towards the Group.
Aiming to increase its profit, some suggestions are proposed.

3 Overview Of Financial Performance

3.1 Profitability
Formula Ratio
2017 2016 2017 2016
Gross Profit Margin !"#$!"$$$ %-'&#$$$ 39.42% 25.01%
%&'#('$$$
× 100% !&'$'!$$$
× 100%
Net Profit Margin .#$/'('$$$ .#('$%#$$$ -41.82% -137.4%
%&'#('$$$
× 100% !&'$'!$$$
× 100%
.#$!'%-$$$ .#(-$#($$$
Return on Capital × 100% × 100% -10.45% -12.08%
!"/!###$$$ #!!&("-$$$
Employed (Average)
.#$%&#$$$$ .#('!!-$$$
Return on average × 100% × 100% -8.80% -10.85%
#/#"%#%($$ #/'$-#!$$$
assets (ROAA)
Comments: The profitability of HKTV Mall has been improved and became better
as all the profitability ratios have been increased. For the gross profit margin, it has
been increased by 14.41% due to the rise in gross profit. Besides, for the net profit
margin, it has been increased by 95.58% because of the fall of net loss. Meanwhile,
for the return on capital employed, it has been increased by 2% due to the fall of net
loss before interest and tax.The return on average assets has slightly increased too.
However, even though the profitability has been improved, the group is still
suffering from a net loss which is resulted by the huge amount of operating
expenses. The group is suggested to make a better control on other operating
expenses in order to raise its profit.
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3.2 Management Efficiency

Formula Ratio
2017 2016 2017 2016
Average inventory ##/'#($$ !-("#($$
× 365 × 365 27.66days 50.98days
#"(!'&$$$ !%$#&"$$$
Turnover Period (days)
Average Trade Payables ('&/#($$ !'&(/($$
× 365 × 365 69.38days 45.65days
/$%#('$$$ !%#''$$$$
Repayment Period (days)
Total Assets Turnover 487257000 187071000 0.21times 0.08times
(times) 2329424500 2370621000
Comments: The group’s ability to use its assets to generate income has
improved. Total assets turnover has slightly increased by 0.13 times, which indicates
that the firm is more likely to use its assets more efficiently as more sales revenue is
generated in 2017 than last year despite the little rise in total assets. However, even
though HKTV Mall can slightly improve the times of turnover, the total assets turnover
rate is still very low and it is suggested the group should keep generating more sales
revenue in order to make a better use of its assets. Besides, the average inventory
turnover period has plunged by 23.32 days. This indicates that the firm can sell the
inventories more quickly and thus more revenue and profit was earned which is related
to efficient inventory level management. As a lower level of inventory was kept, some
maintenance costs were lowered. Nonetheless, the lengthened average trade
payables turnover period has shown that the firm’s ability to settle its payables for
credit purchases has declined. Averagely, HKTV Mall needs 23.73 days more to settle
the debts which is tardier. Even though this shows that longer credit period
enjoyed enables more liquid funds for operations, the firm may gradually lose
credence and possibly cause dissatisfaction and the termination of agreements
with its payables and suppliers with this long repayment period.
3.3 Short-term Liquidity
Formula Ratio
2017 2016 2017 2016
Current Ratio 396303000 456837000 0.84:1 1.41:1
471700000 324705000
Quick Ratio /"-/$$$.#-"!#$$$.-/#'-$$$ %(-&/'$$$.!'&//$$$./"#$!$$$
0.65:1 1.23:1
%'!'$$$$$ /#%'$($$$

Cash Ratio 100199000 44391000 0.21:1 0.14:1

471700000 324705000
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Comments: The short-term liquidity has worsened. Despite the slightly rise in cash
ratio, both the current ratio and quick ratio decrease in 2017 by 0.57:1 and 0.58:1,
respectively. This means for current ratio, per $1 of current liabilities, the firm only got
$0.84 current assets to repay the short term liabilities. For quick ratio, per $1 of current
liabilities, the firm only got $0.65 current assets to repay the short term liabilities due
to the fall in current assets and the rise in current liabilities, inventories and
prepayments. It indicates the group faces insufficient current assets to cover each
dollar of short term liabilities, resulting an immediate problem in short-term
debt-repaying.
3.4 Long-term Solvency Ratios
Formula Ratio
2017 2016 2017 2016
Gearing Ratio #!(-$$$ ""/$$$
0.12% 0.05%
(!&-#-/#$$$9#!(-$$$) (!""---/$$$9""/$$$)

× 100% × 100%
Debt to Equity 473856000 325698000 25.44% 16.31%
× 100% × 100%
Ratio 1862632000 1996663000
Time Interest −201746000 −256025000 -100.32 -251.75
Earned (times) 2011000 1017000 times times
Comments: The long-term solvency has worsened. The gearing ratio increased
from 0.05% in 2016 to 0.12% in 2017 due to the fall in shareholders’ fund and the rise
in non-current liabilities. The debt to equity ratio increased for 9.09% due to the
increase in total liabilities and fall in shareholders’ equity. It shows that the group was
more debt-financing, which indicates that the group may need to face more difficulties
in repaying debts from its equity funds. What is also noteworthy is the rise in time
interest earned, which indicates the firm is more capable to pay the interest . As the
group is still suffering from net loss, the firm is still facing difficulties of paying the
interest. Generally, the group is still able to survive for a long period of time as
it is equity-financing despite the disability of paying the interest with its net loss.
3.5 Investment Ratio
Formula Ratio
2017 2016 2017 2016
Earnings Per −204920000 −257116000 $(-0.25)/share $(-0.32)/share
Share(EPS) ($/share) 809016643 809016643
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Price-Earnings Ratio 3.34 1.16 -13.19 times -3.65 times

(P/E Ratio) (times) −204920000 −257116000
809016643 809016643
Comments: The worth of investing in HKTV Mall has decreased. From 2016 to
2017, EPS has increased for $0.07/share due to the fall of the net loss after tax. This
indicates that the amount of money each shareholders would loss has been reduced.
Less loss is generated for each ordinary share in 2017 than last year. Furthermore,
price-earnings ratio decreased even though the EPS has increased and the current
price of the Ordinary share has increased. The decrease in P/E ratio indicates that the
investors’ confidence to the Group has plummeted. Generally, the Group is still not
worth invested as the indicators shows the investors may even need to suffer
from loss. Therefore, the Group should implement effective policies to enhance
its performance and build up the confidence of its investors.
3.5 Overall conclusion
HKTVmall’s overall performance is unsatisfactory. Although the profitability and
management efficiency has improved, they are still at a low level, not to mention the
worsened performance in the ratio of short-term liquidity, long-term liquidity and
investment. The Group should re-organize the distribution of expenses in order to get
a better financial result.

4. Financial Review- Trend Analysis

4.1 Revenue
The revenue of HKTV Mall has increased from $187,071,000 in 2016 to $487,257,000
in 2017, which shows a rise by about 1.61%. It is a result from the gain in direct
merchandise sales ($157,295,000 to $346,173,000), income from concessionaire
sales and other service income ($28,531,000 to $139,056,000) as well as licensing of
programme rights and net advertising income ($1,245,000 to $2,028,000).
4.2 Net Loss Before Tax
The net loss generated by HKTV Mall has reduced by $53,285,000 ($257,042,000 to
$ $203,757,000) due to the rapid increase in revenue and a great rise in valuation
gains on investment properties ($6,700,000 to $80,500,000) and the slightly increase
in other income. The Group will get a continuous reduction in the net loss generated.
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4.3 Net Loss Margin

The net loss margin for the year has increased by 95.58% for the year from -137.4%
in 2016 to -41.82% in 2017. This indicates that the sales have rapidly boosted and the
net loss before taxation has been reduced. This demonstrates that the Group has a
stricter control on expenses as well as better implementation such that the ability of
generating revenue and selling goods has been enhanced.
4.4 Inventory turnover ratio
The inventory turnover ratio has increased by 3.1 times (7.87 times
(140289000/17833000) in 2016 to 10.97 times (295178000/26912000) in 2017)
because the inventories have been increased by $9,079,000 ($17,833,000 in 2016 to
$26,912,000 in 2017), which is 50.91%, despite the rise in the cost of goods sold for
110.41% ($140,289,000 in 2016 to $295,178,000 in 2017). This shows the firm is more
able to sell its products in a high speed and fast pace. It is believed that the Group can
continue this trend in the future with its stable rise in turnover.
4.5 Total asset turnover ratio
The total asset turnover ratio has increased 0.13 times for the year from 0.08 times in
2016 to 0.21 times in 2017 owing to the rise in turnover from $187,071,000 in 2016 to
$487,257,000 in 2017, which shows a rise by about 1.61% despite the slightly
increased average total assets. This indicates that the group’s ability to use its assets
to generate income has generally improved and the firm is more likely to use its assets
more efficiently as more sales revenue is generated in 2017 than last year. However,
even though the ratio has mushroomed, the turnover rate is still very low that the group
can only generate $0.21 income with every $1 asset, therefore the group should
implement a better plan to utilize its assets to generate more revenue.

5 SWOT Analysis
5.1 Strength
1. The group has a wide range of product choice, providing a one-stop shopping
experience for customers. There are more than 174000 product items on a combined
basis of the HKTVmall and the HoKoBuy on supermarket, beauty and health, fashion,
household, music, video and books, mother and baby, outdoor and sports, hot deals,
digital and electronics, pets and toys, games and stationery.
2. The group has a high reputation being Hong Kong’s largest 24-hour online
shopping mall. It ranked 98th on the ranking of the top sites in Hong Kong in the year
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of 2018 with more than 3571000 apps downloaded, 3051000 combined unique users
in December 2017 as well as 896000 Facebook likes.
3. The group has a well-organized and all rounded O2O platform, providing a wide
variety of distribution channels. The implementation of those retail stores increases
the convenience of the customers purchasing through the HKTVmall as well as
increases the accessibility. The customers can easily get the purchased products
either through the retail stores or the delivery services to their homes.
4. The group has implemented the ‘one stop shop’ that can ensure the products have
a competitive pricing and a low operating cost. With the estimated cost-
effectiveness from the order fulfillment and last mile delivery service and the lower cost
of inventories, the products sold in the group have high competitiveness.
5.2 Weakness
1. The group fails to provide sufficient post-purchase services. In case of damage
products, the customers are required to first record the damage by photos, then
contact the group’s customer service representatives through website or app and
retain all the packing materials in good condition. If the claim is confirmed eligible, the
group will return a new item or refund in terms of Mall Dollars instead of real money.
2. The customers cannot touch the products before purchasing especially the fresh
food. When choosing what products to consume, the customers can only compare the
products by the photos and description. For fresh food, the product quality and
condition may not be as satisfied as the photo thus leading to confidence for the
customers to consume in the HKTVmall.
3. The group fails to retain customers’ loyalty. HKTVmall does not have attractive
membership scheme which lowers the re-purchase incentives for customers. The
group fails to capture loyal customers this hinders the group’s profitability.
5.3 Opportunity
1. The group can promote the use of e-voucher. By making use of E-Word-of-Mouth
(EWOM), such low-cost and high-efficiency promotion strategy can capture
customers’ attention and hone their willingness to shop online. Just a simple ‘Click and
Share’ in the smartphone, the discount offers will be spread wisely among customers’
network. This can increase the sales of the Group and enhance shoppers’
experiences, at the same time, capturing customers’ loyalty towards the group.
2. The group can have more in-depth penetration towards the middle-aged
especially the women. Being the major targets of the group, middle-aged women are
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mostly welcome for discounts and special offerings. Thus, the group should catch this
characteristic by putting specific promotions on them so as to boost the sales revenue.
5.4 Threat
1. There is a slow willingness for the middle-aged targets to go shopping online
as they prefer to look at the real products especially for the fresh food. The group may
find it difficult to attract more new customers.
2. There is keen competition in the online purchase platform industry. Major
competitors are expanding their business locally which may affect the group’s
profitability and sustainability.
5.5 Conclusion
A questionnaire (Appendix) was conducted so as to have a better understanding of
the general public’s understanding and impression towards the group as well as its
position in the market.

6 Business Plan
6.1 Strategies Analysis
The short-term goal focuses on increasing the popularity of the HKTV Pay among
the public especially the middle-aged group while in long-term, it focuses on
increasing the total sales and transaction of the HKTVmall to sustain its growth.
Business Model- SMILE
Sustainability- Maintaining sustainable business growth (Strategies 1,6)
Measurability- Creating foreseeable improvement in profit (Strategies 6,7)
Integrity- Ensuring the safety of purchasing in HKTVmall (Strategies 1,5)
Laughter- Offering explicit shopping experiences with special offerings (Strategies 3)
Enthusiasm- Retaining customers and attract potential customers (Strategies 2,4)
6.2 Proposed Strategies
6.2.1 HKTV Pay
Reason
Customers especially the older generation chose not to consume in HKTV Mall as they
believed that the payment method is insecure with reference to our questionnaire.
Currently, HKTV Mall only supports the following payment methods: Credit cards (Visa
and Master Card), Union Pay, Paypal, PayMe (HKTVmall application only) and
Octopus Card (O2O shop only). All of the above payment methods require to fill in
private information. Customers are worried that their private information is stolen by
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the hackers thus undergoing illegal actions. By implementing a new mobile and online
payment method, a safe and familiar payment experience that they are comfortable
with is offered. Customers need not worry about the safety of consuming in HKTVmall.
Features
Registration: For non HKTVmall members, registration in the HKTV Pay is first
required. For current members, only a new password is required to activate.
Payment: Mobile payment through HKTVmall’s app is launched. All the transactions
are settled and paid with Hong Kong dollars remaining in HKTV Pay. The service is
first available in major chain stores and other merchants are future supported.
Afterwards, the services are available in health supplements’ stores.
Top up: In-store top up is provided in the major chain stores and the O2O stores. While
bank account top up is provided online by linking the account with their own bank
account or credit card to activate. The lowest limit top up value is HK$100.
Security: Multiple security mechanisms are provided to make sure that users’ privacy
is ensured. The HKTV Pay requires the users to set up their own payment password.
The account is locked after three times incorrect entries of payment password. To
activate it, the users must contact HKTVmall either online or through O2O shops.
Expected impact
It can increase customers’ confidence towards undergoing transactions in HKTVmall.
The demand and the average daily orders are expected to increase by 8%. Thus, the
number of orders would increase by at least 25% with 80% paid by HKTV Pay.
6.2.2 Hand in Hand, Gift in Hand “舊戶迎新送好禮”
Reason
The coverage and popularity of HKTV Mall is a crucial factor hindering the
development of the group. Many people only heard of it but do not have the motivation
to know more about HKTV Mall. This key measure could raise the popularity of HKTV
Mall among people, by using present users as the medium to spread out information
of HKTV Mall. This can increase number of users and also turn users into consumers
and encourage people to purchase in HKTV Mall.
Features
Firstly, present HKTV Mall users will receive notifications of sharing the HKTV Mall
app to other. The notifications will appear when the users enter the HKTV Mall app,
and also as pop up notification. When they click 'share’, a link will be generated and
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the users can choose to share the link through different ways such as through
WhatsApp or SMS to their friends and relatives.
For the present users who invite others, they will receive 3 mall dollars refund for 2
activated links. This could encourage the present users to invite others to download
this link. Thus, getting mall dollar refund motivates them to consume in HKTV Mall.
Then, those who receive the invitation link need to first download the HKTVmall app.
After the registration as member, they can click the link again. By doing so, newcomer
can get a $10 coupon in buying $50 of daily necessities under the premise of using
HKTV Pay in HKTV Mall. This can motivate them to buy daily necessities that are non-
durable items, and also the most popular item among customers in HKTV Mall. This
would encourage the newcomers to consume the second time.
Expected impact
The popularity of HKTV Mall can be enhanced, also increasing number of users, it is
expected that the demand and average daily order will increase by 15%. It is estimated
that the amount of order would increase by at least 20%.
6.2.3 Rewards Hunting “即 Pay 即儲分”
Reason
Special offerings can stimulate people to consume. By adopting so, customers are
more willing to consume in order to get special offerings. Thus, this could enhance the
popularity of HKTV Pay, maximizing the profits of the group.
Features
Firstly, when HKTV customers consume at HKTV Mall by HKTV Pay, spending per $5
can have 1 point which can be used to redeem special gifts later. The special gifts
offered are coupons or healthcare products. Healthcare products include products like
sphygmomanometer or supplements that are popular among the middle-aged group.
Coupons provided are less valuable than healthcare products so as to promote the
healthcare products which can easily attract the middle-aged to consume. In terms of
the sustainability, same scheme can be adopted to target other groups by changing
the special gifts, helping the group to attract more potential customers.
Expected impact
People’s willingness to purchase is enhanced, raising the popularity of HKTV Mall and
HKTV Pay, increasing number of users. It is expected that the demand and average
daily order will increase by18% while the amount of order will increase by 15%.
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6.2.4 Cooperate with community centers

Reason
Elderly will be attracted to join the workshops due to the coupons given and the novelty
to be taught. They will share their skills to the one who don’t join the programme. With
their broad social circles, the popularity of the HKTVmall is increased.
Features
HKTV Mall can cooperate with community centers by sponsoring them in holding IT
workshops, which will be held once per month. Elderly joining the workshops will be
taught the skills and methods of surfing the Internet by browsing the website of
HKTVmall. HKTV Pay is also introduced in the programme. The participants will be
given a $5 HKTVmall coupons if they come together with 3 or above friends.
Expected impact
More potential consumers are attracted. It is expected that the demand and average
daily order will increase by 12% while the amount of order will increase by 13%.
6.2.5 O2Oshop booth
Reason
The elder generation lacks sufficient knowledge in ordering products and making the
online payment. They choose not to consume daily necessities online. So as to
increase the daily average order of the elder generation, booths are set in the O2O
stores to teach them how to consume daily products online.
Features
Knowledge regarding the use of the HKTVmall and the HKTV Pay are taught by the
staff in the O2O stores. The details of how the HKTV Pay work and how to order
products through HKTVmall are clearly explained to people who find trouble in
ordering products in HKTVmall. It aims at clarifying the misunderstanding of users.
Despite that, regular booths are set, aiming to introduce the online shopping system
to the elder generation. Everyone is welcome to participate. The details steps of how
the HKTVmall work and how to pay with HKTV Pay are explained to the participants
steps by steps, allowing them to fully understand the benefits of using HKTVmall.
Expected impact
It increases the popularity among the elderly, increasing their understanding of online
purchasing. The people visiting the website is expected to have an increase of 20%.
The demand and average daily order are expected to have an increase of 15%.
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6.2.6 Cooperate with local stores

Reason
Since people from 40 to 70, know little about the Group or have no interest in using,
we can reach them by promoting HKTV Pay through shop cooperation. By offering
discount when purchase by HKTV Pay in cooperated stores. The customers can be
more familiarize with HKTVmall. The discount provided will attract them to consume
at HKTVmall, turning into part of customers.
Since the 40-50 years old adults will turn into senior market later. In terms of
sustainability, they will keep using this familiarized platform in the future, maximizing
the customer base in the long term.
Furthermore, by accomplish the cooperation, it can lead to a win-win situation. The
cooperated shops can increase their sales as the discount can attract more customers
to them. At the same time, our sales could also increase as mentioned above.
Features
Our cooperation with shops aims at promoting HKTV pay is divided into two periods.
First of all, we would cooperate with local chain stores with high coverage in the market
for instance convenient stores and cafes. Discounts are offered for customers who
paid with HKTV Pay in the cooperated stores.
Secondly, our target audience in first period is the general public, stressing on the age
group 40-50 which the potential buyers in the market. These people are also the most
probable group out of all to use the online shopping services. When these people go
to purchase in places like Starbucks, convenience store, they will discover there is a
discount by using HKTV Pay. So, they will know the existence of HKTV Pay and also
download the app to enjoy the discount. This could help the group to reach this group
of people who rarely came across online shopping. For the sake of convenience, they
may try our services. This effectively improves the public’s awareness of the Group
and its services, allowing the public to know about HKTV Pay.
Third, in the second period of the cooperation, we will extend our targets to shops
specializes in health care products. As people stepping into elderly may not possess
such a high inflow of information as the teens, HKTVmall’s coverage among them
might be less than average. However, they are the ones that have the ability to spend
and the ones that may require our shipping services due to the inconvenience of going
to supermarket and carrying heavy stuff day in and day out. In order to address this,
HKTV pay should be extended to shops that specializes in health care products that
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takes a large part in Hong Kong people in that age, are popularized among older
adults. Thus, our target group may try to consume in HKTVmall.
Expected impact
By reaching these group of new customers, the demand of our Group will increase.
Thus, the average daily order and sales is estimated to increase by 25% and 15%
respectively. And since these new customers have strong purchasing power, the
average transaction value will increase by 20%.
6.2.7 Enhancement of promotion on diversified social media
Reason
On Instagram and Facebook: The users will keep track on the latest news on the HKTV
Mall’s account as if they want to get the special offerings. Different advantages of using
HKTV Mall through HKTV Pay such as products diversification and lots of promotional
discounts can be found when the people browse the posts. New potential customers
can be easily attracted through these methods.
On YouTube: Since teenagers like to have a taste of the products the KOLs or
YouTubers are trying. In this way, the Group can rise its orders and potential
customers with the discount of the products given when purchasing at the HKTVmall.
Features
It is suggested to enhance HKTV Mall’s promotion about its regular promotional
discounts and featured products, and especially HKTV PAY, on diversified social
media (Facebook, Instagram and YouTube). Aiming at youngsters, the main users in
these tribunes, the Group is advised to use the push-up function in Facebook and
Instagram and pay to promote its business and shove its featured products to users in
different age groups.
On Instagram and Facebook: The firm can use a method of telling a case or a story to
the users and then tell them to comment what will be the ending of the story. If there
are users comment the correct answer and tag their friends , a mall dollar refund will
be given. Meanwhile, the ending of the story will be posted in the other posts.
On YouTube: The group can sponsor YouTubers for filming the products as well as
providing discounting code that can be applied in HKTV Pay for viewers.
Expected impact
On Facebook and Instagram, it is assumed the advertisements can reach 5 users per
day in each platform On YouTube, It is assumed that Smiling Boris has posted a video
introducing the products of HKTV Mall and discounts on HKTV Pay. The average daily
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orders will increase by 18%. the average transaction value will increase by 15%, the
sales will increase by 16%.
6.3 Marketing expenses budget
Measures Details Budget % of
budget
HKTV Pay Inventing the platform+ Testing Fee 1,200,000 12%
Function update and maintenance fee 300,000 3%
Expenses of operating platform in app 400,000 4%
Administrative expense 100,000 1%
Total 2,000,000 20%
Hand in Hand Inventing the function+ Testing fee 500,000 5%
Gift in Hand Administrative expense 100,000 1%
Mall Dollar refund for old users 1,000,000 10%
Promotion expenses 300,000 3%
Total 1,900,000 19%
Rewards Inventing the function+ Testing fee 300,000 3%
Hunting
Coupon redemption 250,000 2.5%
Gift redemption 250,000 2.5%
Administrative expense 100,000 1%
Promotion expenses 300,000 3%
Total 1,200,000 12%
Cooperate with Cooperation fee + Providing equipment 3,000,000 30%
community Promotion expenses 700,000 7%
centre
Total 3,700,000 37%
Cooperate with Cooperation fee 300,000 3%
local stores Coupon given 100,000 1%
Total 400,000 4%
O2O shop booth Set up cost 200,000 2%
Administrative expenses 100,000 1%
Total 300,000 3%
Promotion on Promotion fee used on social network 200,000 2%
Social media
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Total 200,000 2%
Reserve 300,000 3%
Total 10,000,000 100%
6.4 Implementation Details
Year 1 Year 2
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Sales
HKTV Pay
Hand in Hand, Gift in Hand
Rewards Hunting
Transformation
Cooperate with community centres
O2O shop booth
promotion on social media
Differentiation
Cooperate with local stores
6.5 Impact On Average Daily Orders, Average Transaction Value and Sales
Average Daily Orders The average daily orders will be increase by 28% after the
introduction of the HKTV Pay.
Average Transaction Value The average transaction value will be increased by 30%
after the raise in awareness of the HKTVmall among the old-aged group.
Sales The total sales will be increased by 30% after the launching of the HKTV Pay
and its corresponding discounts.

7. Conclusion
Upon identifying the threat and weakness, Strategies are proposed to retain current
customers and attract potential buyers, followed by increase daily average orders in
long run to sustain the business, sales and profit growth of the company.

8. Appendix- Reference
HKTVmall: Annual Report
2016: http://ir.hktv.com.hk/pdf/announcement/EW01137_AR20170418.pdf
2017: http://ir.hktv.com.hk/pdf/announcement/EW01137-AR_17042018.PDF
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9. Questionnaire
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