Old Town White Coffee Marketing Plan

Introduction of Oldtown The OldTown White Coffee, OTWC (Chinese: ) is the largest kopitiam restaurant chain in Malaysia. The headquarters is in Ipoh, Perak, Malaysia,it is a frenchaise company. Established in 1999, OldTown Berhad (OldTown) produce instant beverage mixes and products, in addition to operating over 180 caf outlets in Malaysia OldTown is the proprietary owner of the special formulation of 3-in-1 white coffee blend, which has been permeating Malaysian households and food service industry since 1999.In 2005, OldTown expanded into the food service sector with the opening of a chain of caf outlets based on the traditional Ipoh coffee shop setting and ambience under the brand name Old Town White Coffee.OldTown now exports its instant beverage mixes to more than 10 countries worldwide and plans to expand its caf outlet network in the region. The history can be traced back to the incorporation of white cafe 1999.The core objective of OldTown is to let everyone to have a sip of Malaysian style white coffee. What is a white coffee? White coffee in US and were known as coffee with milk or cream. White coffee can also refer to a cup of instant with a dash of cold milk. But, the white coffee here means seriously under roasted coffee. The advertising that goes with it would agree with this assumption although the people selling this product will not say anything about how it is made. Because unroasted beans are extremely hard a special grinder is required to grind the coffee. White coffee has more caffeine compare with normal coffee. Classic Dishes:Old Town Nasi Lemak Special, Mee Java, Dry Curry Mee, Old Town Ipoh Chicken Hor Fun, Old Town Ipoh Lum Mee, Old Town Curry Mee, Springy Noodle with Chicken Ham and Egg, Old Town Nasi Rendang Ayam, Old Town Nasi Kari Ayam, Springy Noodle Chicken Sausage and Egg, Old Town Assam Laksa, Old New mee hoon Local Favourites and Sweet Delights: Old Town Homemade Sticky Rice ,Kaya and Butter Toast, Garlic Butter Toast Hot and Cold Beverages: Ipoh white coffee, Old Town White Milk Tea, Nanyang Kopi O, Nanyang Kopi C, Old Town Enriched Chocolate, Old Town Cham Micro environment OldTown Suppliers: Suppliers give the resources to a company on a low price to let a company to produce a product or service and let the company to earn profit. A supplier can seriously affect a companys marketing plan because resources are very important to the company. A good supplier can help a company to fight a business for a long run, hence good relationship between supplier and the company is very important. For an example, the coffee bean that OldTown took from the supplier is controlled strictly and they make sure the quality of the coffee beans is the best to make their product before they purchase it. It also makes sure that all the coffee bean is the same as different kind of coffee bean is used in different kinds of coffee. Company: A marketing manager of a company must work with all the other departments as all the departments have their impact on the marketing departments plans and action because it will also affect the smoothness of the company on the buisness. OldTown always thinks about what are the consumers wants and needs before they take their action without changing the objective of the company. People that went to OldTown are normally given a cup of beverage when they order a set or promotion menu. They provide better services to consumers than their competitors to make themselves different. Competitors: A company has to know what does the consumer wants and what they need to exist their competitors and survive in the market .OldTown has a number of competitors such as K3K , Paparich, Hai Nan Kopitiam and others. OldTown offers consumer their own 3-in-1 product, so that consumer can enjoy their white coffee everywhere and this makes them different than their competitors. Marketing intermediaries: Marketing intermediaries plays a very important role in micro environment, they help sell product of the company and helps bring out the label or the brand of the company into the market. OldTown is a franchise company, the head quarter in Ipoh produce the instant beverage

and send it to the other OldTown outlet. The out let will then sell the product to the consumers. Macro environment Competitive force: In the F&B industry, we will never know when and what will our competitor do to fight for their business. The competitors are not only the ones that we can see now, it could be our future competitors as well. These are the unforeseen competitive in the hospitality industry. For an example, K3K, OldTown, and paparich are competiting to each other, but suddenly there comes a new company NewTown, and it gives better service, all the others will lose their business. As the F&B industry encourage more competition when the market grow or if its profitable. OldTown is a place that normally medium income customer will dine in. Demographic force: Demography is the study of human populations such as, density, location, age, gender, race, occupation, and others. Consumers that usually visit to OldTown are usually all ages, which means the generations of baby boomers till generation Z. All the demographics will change over time and he following company must always keep up with them and make sure that they can get the right information on the earliest time. Economic force: The economic environment include the factors that affects the consumers purchasing power and the patterns how they spend their money.It is not enough if we only have consumers, the consumers must have the buying power, or the company will not earn the profit. For an example, an OldTown customer will visit OldTown to have a cup of white coffee before he goes to work. But, if the economic crisis comes, the customer will maybe just visit OldTown 2 times a week even how he love the dining experience in OldTown because his allowance is not enough to visit every day. Technological force: The F&B companies are greatly affected by the changes in technology, such as internet, computerized system and others. Many restaurant have their own website, and OldTown have their own too. From the website, customer can know what kind of food or service do the restaurant have before they make their decision to dine in the restaurant. A computerized system can also make the restaurant service better. OldTown is using a piece of paper to take customers order in the old they. This might happens some human error if the waiter forget to send the order to the kitchen, and end up with the customer cant get their food after waiting more than 30 minutes. Today, Oldtown is using a computerize system instead of using a piece of paper. The waiter will key in the order through the system and the order will automatically send to the kitchen. Cultural force: A cultural environment includes institutions and also other forces that affect a societys basic values, perceptions, preferences, and behaviors too. OldTown has their own cultural as it also follows the cultural of Malaysia. The company of OldTown starts its business in Malaysia, hence the menu of OldTown is more on Malaysian cuisine such as Nasi Lemak, Curry mee and others. All the races among Malaysia can visit to OldTown because it is a halal company and the outlets does not sells any alcoholic beverage or pork. Besides of Malaysian cuisine, OldTown also offers some western cuisine, such as chicken chop. Market Segmentation Geographic segmentation: Malay, Chinese, and Indian are three major ethnicities in Malaysia. The percentage shows that the Chinese caters the market then follow by Malays and Indians. Demographic segmentation: The demographic segmentation shows that the Old Town White Coffee is for all ages people, most easily categorized in to children, students and youth, workers and senior citizens. It can be all ages and everyone can have a try on it because the products are cheap and medium income customers can dine in too. Psychographic segmentation :The needs between these segment groups are different. Sometimes, students are seen as low to high-income earners, so menu items include acceptable and reasonable prices for them. While workers are considered as income earners and come in groups and have limited time to enjoy their meal, this also has to be taken in to account. Local considerations are included in the menu to suite their likings and set menus are provided for families. Every day the cafe is full during breakfast and lunch hours. This is because the Old Town White Coffee provided good and clean environment. Besides that, they offered promotion during their breakfast and lunch. Their promotions prices for breakfast and lunch is set at a low price with a benefit of free WIFI. Targeting Old Town White Coffee caters to almost everyone. People of all sorts of ages can be seen dining in the

cafe. It offers a clean and comfortable environment for famlilies, relaxing and quiet arena for youths to have their tea time, breakfast-y and almost instant services for the middle aged working community, and a selection of classical dishes for the more senior old-schoolers. They offer a wide array of selections, although 80% chinese, they didnt forget to include some classical malay delights such as nasi lemak, nasi kunyit, or the indian roti jala. Positioning Old Town white coffee understands that they are the "second best", and thrives on being the "second best". Of course also offering prices suited for "second best" services and food quality. They position themselves as an icon, (obviously very successful) covering the aspects of offering kopitiam style coffee and delicacies. They were so successful, that today the image of the association of white coffee and old town is permanently hammered in peoples brains. They place themselves as an economical server. Showing customers that they offer the optimal value for money / quality products. Old Town boasts their products in minimal prices for their quality, free WIFI and cool environment, making it the ultimte yamcha place for youngsters (which consists of mostly students). Old Town also market themselves as the quick eat and go outlet. Serving some breakfast-y delicacies such as breads and buns for mostly early birds and city buzzers to grab a quick bite, sip some coffee and read some newspaper before heading straight off to work. Killing multiple birds with one stone, such services benefits also the early exercising elders. Old Town White Coffee sells what every ethnic group has in common, Malaysia. Old Town advertise their product with slogans like Malaysias No.1 confirms best White Coffee. Which hits their targets mind, reminding them that this cafe offers something homey, authentic and traditional. Old Town offers a wide array of selections, although 80% chinese, they didnt forget to include some classical malay delights such as nasi lemak, nasi kunyit, or the indian roti jala. Thus enabling people of almost every ethnic faction to enjoy themselves in the cafe. With effective slogans, promotions and marketing strategies, Old Town is constantly at the back of peoples head, reminding them that they will always be there. Regardless of whom or what you are. Product Core product: The core product of OldTown White coffee is the 3-in-1 instant coffee. These instant beverage are now export to more than 10 countries in the world. The OldTown White Coffee 3-in-1 Blend is a perfect blended white coffee which gives a smooth, aromatic and creamy taste. While the Nanyang 2-in-1 White Coffee ois a white coffee that has sugar, roasted with perfection. It has a stronger bittersweet taste compare with the others. The Simply Pure White Coffee is a 100% pure freeze dried coffee, it has a high acidity that is rich and satisfying to the taste of coffee. Now, OldTown White Coffee is also selling canned ready to drink beverage, and it could be found everywhere.OldTowns product is very famous now and it could be found in the supermarket. Other than beverage, OldTown also offer some classic dishes to the customer, the famous of all is the nasi lemak and ipoh chicken hor fun. A varieties of Malaysian foods are served too. Facilitating product: OldTown has their own facilitating products too,they serve their guest with their own specially made plate and cups that has their own OldTown logo on it. Supporting product: Besides white coffee, OldTown has also their speciality coffee to differentiate themselves from the other, such as Xi Mut milk tea, white milk tea, enriched chocolate, and of course! Dont forget their crunchy baked buns . Augmented Product: OldTown has a dark environment that gives customer a feeling of relax while having their food and beverage. It also provide free WIFI now so that customer can use their mobile phone or laptop to access the internet. OldTown is not only a restaurant, but it also gives people a place to relax and gathering. Promotion Advertising: OldTown often gives out broucher to people. Sometimes, the broucher can be found in the newspaper. They also did their advertising on television to attract people to have a try on their famous white coffee. Sales promotion: OldTown is also doing some promotion on their menu. The promotion menu is called Supreme Set, which starts on RM9.90 onwards, serves on Monday to Friday, 12.00-3.00PM, each

meals are served with a complimentary beverage and the portioning is bigger. This promotion menu is only having nasi lemak, prawn mee, rendang chicken rice, curry mee, asam laksa, and also Javanese mee. OldTown is also doing promotion on their breakfast, tea, and supper too.The promotion on MyBereakfast is offering customers on toast, and noodles, with a complimentary drinkWhile the MyTea promotion is offering a varieties of drink, which is hot or freezy drinks and toast. MySupper is all the same with all above. Push Strategy: The producer, which is the factory of OldTown, produce the product (instant white coffee) and send it to the retailers and wholeseller, OldTown restaurant or supermarket, the restaurant are then selling it to the consumers. Pull strategy: The consumers are already know a lot about OldTown white coffee and hence the consumers give the demand to the retailers and wholesellers. The retailers and wholesellers are then ordering the product from the head quarter of OldTown. Buyer Readiness State: At first, the consumers doesnt know anything about OldTown white coffee, so, the company has to do advertising for their products to promote it. When the consumers consume the products, they will know more about the product. Consumers are then going to like or dislike the product. If the consumer likes the product, the name of OldTown will spread their name even faster, and the consumers will prefer OldTown as their choice. At last, the consumers are willing to buy OldTowns product. Place The Old Town White Coffee are usually located at a high traffic and visible locations. It is to attract more customer to have a break at Old Town White coffee. Their outlets is quite developed area with a university and banks. Besides that, sometimes bus station is placed nearby the outlets. Thus, it will become a place for a coffee shop. In Malaysia, their brand loyalty is very strong amongst the customers who always travel. Old Town White Coffee is popular to an extend is being sell in hypermarket, Jusco, Giant, etc. Price The definition of price is the amount of money paid for the goods or service, It is also the only mix element that can produce a revenue to a company. Setting of the price should be very carefully because charging too much on the goods will chase away potential customers, but if the charging is too little, it will cut down the companys revenue too. The price set by OldTown is not so expensive and it is reasonable, thats why people are able to dine in the outlets frequently. The promotion price and the original price makes people think it is worth to pay for the bill comparing with the original. OldTown use this kind of psychological way to cheat the consumers. This is the way that makes OldTown survive in the market, and maximize their profit. OldTown can charge the price is because people knows that OldTown is a restaurant that gives a very fast service although it is not a high turnover restaurant. The dark and relaxing environment of OldTown also makes people feels that the restaurant is more high class than the others. Conclusion The conclusion for OldTown is, It differentiate itself than its competitors by offering its own product, which is their instant beverage so the consumers can enjoy white coffee everywhere, OldTown dont need to worry about that it will competite with bigger company like Starbucks, The Coffee Bean, because they are not in a same cathogory. Besides that, OldTown has also offered customers Malaysian classic dishes, and everyone can enjoy the dishes in a set with a beverage but paying a reasonable price. Customers can also enjoy the environment of OldTown, it is a nice place to get yourself relax there and the WIFI provided allows people to use their internet with their laptop or mobile phones. Student can also do their assignment in a nice and quiet environment. Words: 2912 Pages: 12 Highlight Text Print Paper Save Paper

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