Beruflich Dokumente
Kultur Dokumente
PREPARED BY
ZULFADLI BIN YUSMAR
4151004191
4151006631
4151002751
4151006601
4151003831
4151006131
4151003941
4154009731
LECTURER
MR. ROSLEE BIN ALI
SUBMISSION DATE
3 DECEMBER 2015
CONTENT
1.0
EXECUTIVE SUMMARY
2.0
2.2
Environment
2.1.1
Market Desciption
2.1.2
Product Review
Competition
Distribution
Market Analysis
2.2.1
3.0
4.0
5.0
1-3
Market Segmentation
2.2.1.1
Geography
2.2.1.2
Demography
2.2.1.3
Psychographic
2.2.1.4
Behavioral
10
2.2.2
Target Market
11
2.2.3
Positioning
11
12
3.1
Strength
13 14
3.2
Weakness
15 - 16
3.3
Oppurtunity
17 18
3.4
Threat
19 - 20
Vision
4.2
Mission
4.3
Award
4.4
Objective
4.5
Issue
5.2
21
22
Marketing Mix
5.1.1
Product
23 - 26
5.1.2
Price
27
5.1.3
Promotion
28
5.1.4
Place
28
Strategy Alternatives
5.2.1
29
5.2.2
30
5.2.3
5.2.4
5.3
6.0
8.0
Supplier Power
31
5.2.3.2
Buyer Power
31
5.2.3.3
32
5.2.3.4
Threat of Substitute
32
5.2.3.5
Competitive Rivalry
32
33
34
ACTION PROGRAM
6.1
7.0
5.2.3.1
Gantt Chart
35 - 36
BUDGET
7.1
Products
37
7.2
Calculations
38
7.3
Profits
39
7.4
Breakdown
39
7.5
Budgeting Method
40
7.6
41 - 42
CONTROL
8.1
Sales Analysis
8.1.1.1
43
8.1.1.2
44
Target
8.2
Big Apple
45
8.2.2
Krispy Kreme
45
8.2.3
46
8.2.4
46
8.2.5
Profitability Control
8.2.5.1
Internal Control
46 - 47
8.2.5.2
External Control
48
9.0
APPENDIX
49
10.0
REFERENCES
50
This brand has successfully penetrated into the local market in Malaysia going against
Dunkin Donuts and Big Apple as their main competition. With each having their own identity and
strategies to attract their customers, J.CO stands out by using the caf concept and does not only
focus on donuts like the other competitors. They also have their own trained barista and baker to
serve the foods and drinks.
J.CO Donuts started in Indonesia, and with the positive feedback from customers they
spread their chain to Malaysia in 2007, Philippines in 2013 and Singapore in 2008. The location of
J.CO outlets are also easily reachable with it usually being in major shopping malls in the cities.
J.CO market segmentation focuses on locations with a high population that leads to a variety of
consumers from different backgrounds, buying behavior and needs. Geographically, J.CO targeted
Johor Bahru as the location that is most profitable after they had done their research.They focus
on groups of people that love to eat and have a sweet tooth which is why Asian countries are
chosen as the base of the marketing scope because they believe that most Asians love to eat.
For J.CO, a strategic location is crucial as it can affect the profits of the company causing
them to choose urban shopping malls as their top priorities. They aim people with a medium to
high rate of income as their product may be considered pricey by those with a lower income.
According to their researches, they concluded that people nowadays are attracted to cafes with a
classy theme, great ambience and music causing J.CO to maintain these elements in their caf
design. The main selling point of J.CO is their premium quality products that comes with great taste
that is suitable for all types of people. J.CO believes that their brand strength is enough to help
position themselves in the market.
The strength, weakness, threat and opportunity (SWOT) analysis helps J.CO Donuts in
developing a strong business strategy as they have made known all the factors that will help them
stay as the best against their competitors. The strength of J.CO is in their quality products that
taste better than their competitors, high quality raw materials and still being sold at a medium price.
Their product innovation brings fresh air to the market. J.CO Donut also prides itself for creating a
life caf concept that is vibrant and energetic, stylish yet interactive, customer friendly, and more
to a family concept.
Their weaknesses are from the lack of promotion and activity to develop more loyal
customers as well as to retain the customers. The external weaknesses that J.CO Donut & Coffee
face is they do not provide any online ordering or deliveries to their customers. For opportunities,
J.CO have planned to further expand their franchise to new locations. For J.CO, they know that
their products are considered pricey to some and this is their opportunity to offer attractive
promotions, offers and discounts to their loyal customers.
As a large company, there are bound to be threats from the competition. As a newcomer
in the food industry, J.CO had to compete with other companies to ensure that they can survive in
the donut industry. Therefore, before the company opened their first store, the founder of J.CO
Donut & Coffee, Johnny Andrean, had done extensive research on the making of donuts and flavor
to generate donuts that are unique to beat the current competitors in the industry. The main vision
of J.CO is to establish itself as a trend-setting lifestyle and the foremost international premium
donuts and coffee brand in the industry. Its missions revolve around putting the customers as the
utmost priority.
In J.CO Donuts marketing entry strategy into the Malaysian market, they have done a
franchising strategy as it is works well for a company that have a strong brand name. The first
element of marketing mix is product. J.CO products include donuts, coffee, chocolate and yoghurt.
Pricing is the second element in the mix and is the most important as this generates a turnover for
the company. J.CO underwent several pricing strategies when it entered the Malaysian market.
The pricing strategy they used was penetration pricing to attract new customers. Currently the
price is set using competition pricing strategy where they set a price in comparison with competitors
such as Big Apple Donut and Dunkin Donut. The third element is promotion which to J.CO is the
business of communicating with customers. J.CO uses the pull strategy to attract customers using
social media. The last element is place. For J.CO Donut & Coffee, they prefer to sell the product
directly to their customer which also known as direct distribution to consumer.
For their strategy alternatives, J.CO uses the Product Life Cycle to ensure that they do not
lose their customer, profit and to delay the decline of a well-established product which has the
potential of generating further revenue. J.CO also uses the BCG Growth-share matrix and the
identification of the five forces driving profitability. For J.CO Donuts & Coffees market
communication mix, it is their policy that they rarely advertise on television and radio. They usually
rely on sales promotion during the festive season and public relations to promote their products or
services. They also do a lot of corporate social responsibility (CSR) program.
The action program of J.CO is shown in the form of a Gantt chart in the report. It is shown
that J.CO does promotion during the celebrations of each religion in Malaysia. Besides that, they
have CSR activities three times a year and occasional management meetings. The budget section
of this report aims to analyses the overall budget of J.CO in terms of how they spend their income
on the promotion and activities or the company. The last part of this report is the marketing control
to compare the results to the marketing plan. J.CO uses an annual plan control and profitability
control for their business. It is recommended that J.CO continuously adapts its marketing mix to
keep up with the changing times. In conclusion, this report has shown a clearer picture of how a
business uses marketing mix to identify its target market, attract them and retain their loyalty.
2.1.3 Competition
In Malaysia, there are several companies that produce the same product like J.CO Donut & Coffee.
For example of company that sell donut as their main product in Malaysia is Dunkin Donut and Big
Apple. Even though they all sell the same products which is donut and coffee, each of them have
their own identity and strategies to attract their customer. For J.CO Donut & Coffee, they are
different from their competition in few aspects such as their ingredient, their caf concept, their
donut name and many more.
First of all, J.CO Donut & Coffee are using caf concept that not only focusing on their
donut just like others competitor. They also emphasize their beverages, coffee and frozen yogurt
to customer. They claimed that their beverages especially their coffee taste better because they
use Brazil coffee bean. Other than that, J.CO Donut & Coffee said that they are different from their
competitors because Jco Donut is using high quality of material and ingredient to make their donut.
Their flour is originally imported from Indonesia and they not only use machine to produce the
donut, they also use baker skill to produce light as an air donut. Most of their material was
imported from other country such as their coffee beans are imported from Brazil and some of their
chocolates are from Belgium.
They also only choose the best quality and healthy material to produce their product. Every
three hour, they will replace their unsold donut with the fresh donut in order to maintain a high
quality taste. They said that its important for them to give their customer the best, great service
and food because they believed that by provide a great customer service it will help them to ensure
that their customer will come back again. In addition of that, they also have their own well trained
barista and baker to serve the foods and drinks. By hired the high skilled barista and baker, it will
help Jco Donut to ensure that all of their customer satisfy with these foods and drinks. From the
interview, J.CO Donut & Coffee claimed that by using a unique and easily remembered name for
their product, it will attract their customer and create an unique identity which will help the customer
to differentiate J.CO Donut & Coffee from other competitors. Some example of their product that
have unique name is Tira Miss U which is a donut with tiramisu toping. Other than donut, they
also have unique flavor of beverages such as Oreo Frappe.
2.1.4 Distribution
J.CO Donut & Coffee is one of the great caf that serve fresh and tasty foods and drinks out there.
They all started from Indonesia then growth to other Asia country. Due to positive feedbacks that
J.CO Donut & Coffee received from consumers, they open up their outlet and build a network to
other country such as Malaysia, Singapore, Thailand, Philippines and many more.
By doing this, J.CO Donut & Coffee can distribute their product to other country and ensure
outsider consumer can grab J.CO Donut & Coffee goods. Urban location and mega mall is one of
the places that J.CO Donut & Coffee usually choose to open their new outlet. By choose these
types of location, J.CO Donut & Coffee caf can be easily founded by consumer and have a high
rate of visitor or buyer per days. There is about 11 J.CO Donut & Coffee outlet in Malaysia and
260 outlets around Asia. On 2007, J.CO Donut & Coffee launch their first branch in Malaysia. After
that, they expand their business to Singapore on 2008 and Philippine on 2013. Currently J.CO
Donut & Coffee only sold their product through their restaurant and they not did provide any
delivery or online ordering services.
Selangor
27%
Penang
9% Melaka
9%
Johor Bahru
37%
Kuala Lumpur
9%
For geographic segment, Jco Donut is usually choosing any location that have high rate of
population of people that come with a good rate of income. In Malaysia, there are about 11 J.CO
Donut & Coffees franchise has been opened at different state that have high percentage of
working people. There are 4 franchises at Johor Bahru, 3 at Selangor, and 1 franchise for Kuala
Lumpur, Melaka, Penang and Seremban.
Each of the J.CO Donut & Coffee are specifically located in mega mall that have a good reputation,
high rate of visitor per day and good popularity for each of the state. They believe that by doing
this, they can easily spread and promote their product to the locals. J.CO Donut & Coffee exposed
that they choose to open their store near to the mall entrance so it can be easily spotted by their
target customer. From the chart above, J.CO Donut & Coffee said that they open most of their
store at Johor Bahru than other state because of the geography factor. Its because majority of
Johor Bahru people have high rate of salary.
This is because Johor Bahru is one of the national trading center. Other than that, Johor
Bahru also known as one of the biggest tourism center in Malaysia because in Johor Bahru they
got attractive places such as Legoland and many more. Hence it may affect the total customer of
J.CO Donut & Coffee, profit and many more. A similar situation also occurred in Selangor which
is one of the advanced states in industrial plants so, it indirectly have a positive effect on the income
of resident of Selangor.
7
2.2.1.2 Demography
Low Income
Rate
20%
High Income
Rate
45%
Medium
Income Rate
35%
For demographic segment, J.CO Donut & Coffee target customer are those who are come from
medium and high rate income customer. This is because they set any their price a little bit higher
than their competitor as they are using price skimming strategy. Due to the price rate of Jco Donut
product, customers that come with medium to high rate of income are suitable and most likely
would buy Jco Donut product. Regardless of their gender, Jco Donut is emphasizing their customer
who is teenagers, adult and senior citizen. With the variety product that come with different taste
and form which is hot and cold, it cause the Jco Donut customer scope become larger.
2.2.1.3 Psychographic
Rural Area
30%
Urban Area
70%
During our interview, J.CO Donut & Coffee claimed that Malaysian are having one common things
that can help their businesses growth up rapidly which is majority of Malaysian are love to eat fast
food. During the first week after the launch of JCO Donut & Coffee at Pavillion, Kuala Lumpur, it
was reported that people were having a long queues just to buy their donut. During our interview,
JCO Donut & Coffee claimed that knowing your customer is one of the important elements that
they must practicing in order to have a good outcome for their business. One of these elements is
by knowing the customers personality and life style.
Besides that, J.CO Donut & Coffee stated that Malaysia is one of the great market place
due to their citizen that known for their eating habit. Majority of Malaysian are love to eat fast food
and dessert. This has been proved through research that has been done on 2014 by British medical
journal, The Lancet, showed that 49% of women and 44% of men in this country were found to be
obese. They said that Malaysians obesity rate is the highest in Asia. Another element that plays
an important role is the customer life style. As we know there are rural and urban place in Malaysia.
Different environment can lead to different life style of certain population. Since J.CO Donut &
Coffee choose urban place or environment to open their store, lets take a look with peoples that
live in that area.
From the situation that has been observed, peoples that live at urban and city area are
usually like to eat at the restaurant and caf especially for those who are single. Unlike for those
who are live at rural area, they prefer to cook by them self. This situation is occurred because most
of the people that live at urban area are too busy with their daily life and work until some of them
could not cook a meal because of time matter or too tired after through a stressful day at workplace.
Through this problem, they take another alternative way by go to caf or restaurant. From this
situation, J.CO Donut & Coffee conclude that they are more profitable and high potential customer
in urban place such as downtown or city area.
2.2.1.4 Behavioral
Besides knowing the customer life style and personality, J.CO Donut & Coffee also said that they
must identify the shortage and needs of the customer. By doing this, J.CO Donut & Coffee can
improve and makes their business suitable with the customers needs.
From what has been observed by JCO Donut & Coffee Company, they said Malaysia is
lack of caf that sell variety of foods and beverage in the same times in order to fulfill people needs.
Even though they are so many caf and food company has doing their business in Malaysia, most
of them especially for company that sell donut or coffee are usually focusing in one type of the food
or drink. Through this situation, consumers are served with limited menu and choose.
Due to this situation, JCO Donut & Coffee come with few solutions by providing much more
option and choice of foods and beverage to the customer that has different needs and want. For
example, J.CO Donut & Coffee is selling donut that has various flavor consist of fruit, creamy,
chocolate and nuts ingredient. For example of people that have an allergic with nuts still can enjoy
and eat the J.CO Donut & Coffee foods cause of the various type of donuts flavor or ingredient.
A good, healthy and high quality food is one of the common things or needs that people
usually seeking for. With these need, J.CO Donut & Coffee has accomplish them by provide a
foods or beverages that has made from high quality ingredient. By using a great quality of
ingredient that has been imported, it will make the customer feel pleasure to eat J.CO Donut &
Coffees foods and beverages. Even though most of the J.CO Donut & Coffee product are pricy,
its still worth it for the customer to invest their money for having a great experience with J.CO
Donut & Coffee foods. By this, J.CO Donut & Coffee believe most of the consumer around Malaysia
will be happy with the concept and menu that provided at JCO Donut & Coffee.
10
11
ANALYSIS
Strength
COFFEE STRATEGY
Quality donut
Innovation with their
product line
More to relax and family
concept
Price: Premium
Pricing Strategy
Product: All
ingredient are
value
import
Promotion:
Attractive offer
every 2 hours
during festive
Place: High
income location
Weaknesses
Lack of promotion to
develop more loyal
No online ordering or
delivering
Opportunity
Expensive product
Further expansion in
Online sale
new location
Menu diversification
more preferred by
pattern and
consumer
Offer attractive
lifestyle
Number of competitor
Changing taste of
consumer
Equipment breakdown
Number of
competitor
Unhealthy lifestyle
Maintain product
quality
Produce new
flavor
12
3.1 Strengths
J.CO Donut & Coffee and Dunkin Donuts are two biggest donut companies in the world. These
two companies provide same product which is donut and beverage to their customers. The
different from quality and facility become the strength for the J.CO Donut & Coffee. J.CO Donut &
Coffee offer a quality donut to their customer meanwhile Dunkin Donuts offer a lower price to their
product. Its means that they only uses the best ingredients from all over the world such as Belgian
Chocolates, Californian Almonds, Japanese Matcha Green Tea and Italian Roasted Coffee in their
products. J.CO positions itself to be that Elegant donut with a medium price. It serves the market
to be satisfied with a quality donut that tastes even better than its competitor who has been in the
market for a much longer time. Dunkin Donuts attract their customer by offer lower price among
donut companies in the world. That a main reason why Dunkin Donut become a first choice to
people. People are preferred a product with more affordable price even they also complaint about
the product quality.
Beside, J.CO Donut & Coffee also become innovation with their product lines and Dunkin
Donut selling a fast and good coffee at good value. Dunkin donuts as a market leader was already
in their comfort zone make them uncompetitive to the innovation, consumer as the market didnt
have their ability to choose another product, since Dunkin is the only one at that moment. J.CO
Donut & Coffee as the new player bring the fresh air to market, by make donuts as a trend setting
lifestyle. Marketing mix between Sakura strategy and open-kitchen in every outlet seems attract
customer curiosity to tried and tastes the new J.CO Donut & Coffee experience. J.CO Donut &
Coffee comes out with new idea and environment to attract the target people for their products.
They do not only focus on their products but also the environment of their outlet because one of
the ways to attract people is from the decoration of their outlet.
J.CO Donut & Coffee also prides itself for creating a life caf concept that is vibrant and
energetic, stylish yet interactive, customer friendly, and more to family concept. This not only
means customers can bring home food to the house, but they can also relax with friends or family.
The modern concept that created by the J.CO Donut & Coffee has made their customers enjoy
when dine in at the caf. J.CO. Donuts & Coffee seem to be different from other products in the
country because the product is positioned as a lifestyle and targeted to consumers of the middle
and upper segment with a dynamic lifestyle, young and modern. For the modern technology now,
people looking for the innovative caf that can cheer up their day or moments. As well as the basic
materials, more than 50% is imported from abroad. Like the chocolates imported from Belgium and
milk from New Zealand. Also, to drink, the ingredients mostly imported anyway. Most coffee
powder imported from Italy and Costa Rica. All the donuts also changes every two hours to make
sure the quality of the donuts. Because when the donuts left for too long, it will make the donuts
become hard and cold. That why they change to new donut every two hours.
13
So, to make J.CO Donut & Coffee become well than their competitor, they use 4P as their
strategy to involve in market which is product, price, promotion and place. For the product, J.CO
Donut & Coffee only use a best product to make sure their quality is maintained. All ingredients
are import to make sure that all the donuts that they sell in a great quality. For them, quality is more
important than a quantity of the products. The consumer will judge their products by the quality,
that why J.CO Donut & Coffee take this seriously. People nowadays are looking for foods that are
something new that can satisfy their cravings without being conscious on their health. J.CO Donut
& Coffee is currently serving its customers a less sweet donut with soft, thin and chewy bread. The
size of each doughnut is perfectly enough. Its worth the pay since its delicious, not too oily and
its taste is not as sweet as other donuts.
For the price, J.CO Donut & Coffee use a price skimming strategy which means their price
are expensive due to their product quality. They know that their price are expensive to the market,
but they promised that consumer will get the satisfaction after buy their products. J.CO Donut &
Coffee will not produce a product if their quality is bad. J.CO & Donut also believe that their
customer will always stick with them even their price are expensive because they get a customer
capability from the beginning of their outlet in Malaysia.
For the promotion, they already know that their product is expensive and this is their
opportunity to offer an attractive promotion, offers and discount to their loyal customers. This is
how they manage their marketing strategy. Usually J.CO Donut & Coffee will make offer during the
festival or celebration such as New Year, Independence Day and Hari Malaysia. Every festival
they will come out with new donuts that only offer for the limited time. For example, the promotion
is buy 1 dozen will get free 1 drinks of coffee and only offer during the festival celebrated. J.CO
Donut & Coffee will never decrease or reduce their price, but they only make a promotions or offer
for a certain time only.
Last, for the place J.CO Donut & Coffee choose a high class place to open their outlet such
as in a shopping mall. Therefore they are only open outlets in shopping malls that have many
visitors. J.CO Donut & Coffee choose a high class places because from there people will see their
outlet and easy for their customer to get their product after they have spend a long time during
shopping. For example, J.CO Donut & Coffee open their outlet in Pavilion Kuala Lumpur because
the place is famous and most the visitor is come from a high profile background.
14
3.2 Weaknesses
Every company has their own weaknesses behind of their successful. The weaknesses can be
defined from the internal or external factor. For the J.CO Donut & Coffee, their weaknesses are
from the lack of promotion and activity to develop more loyal customers as well as to retain the
customers and for the Dunkin Donuts their weakness is lack low calories options for the consumer.
J.CO Donut are rarely use advertisement in newspaper or television. The reason is because they
believe on their product capability in the market even they do not do a big promotion of their
products. Meanwhile Dunkin Donuts do a lot of promotion of their product to make people become
more alert to their product. That why Dunkin Donut is more positioning in people mind. Dunkin
Donut also lack low calories options to their customer which means their customer didnt have a
choice for the donut if some of them are not eat sweeter donut.
Other than that, the external weaknesses that J.CO Donut & Coffee faced is they do not
provide any online ordering or delivering capability to their customers. To be a good and different
donut company J.CO Donut & Coffee should come out with the new strategy which is makes a
delivery of their products. Not to all outlets make a delivery, but only a few outlets that get a higher
demand. From the interview, they have no plan to make a delivery of their products since they
believe that their customers will stick with them even they do not provide any delivery. This is
because they believe on their product capability. For their competitor, Dunkin Donut weakness is
lack of marketing effort to increase their product quality. That the reason why J.CO Donut & Coffee
is more strong than their competitor. Dunkin Donut did not do any effort in order to increase their
quality even they receive a lot of complaint from their loyal customer.
From the interview, one of the weaknesses of J.CO Donut & Coffee is their product are
expensive. J.CO Donuts & Coffee is too expensive maybe because the quality and taste made by
J.CO Donuts & Coffee itself is different from other donuts it would cost a fortune. For J.CO Donut
& Coffee, they will not put the price if their quality products are bad. It means that the price is
suitable for the quality of donuts and coffee because all the ingredients are imported. J.CO Donut
& Coffee will never decrease their price even their customer complaint because for them, even
their customer always complaint about their price, but they will buy because they only serving good
food and delicious. J.CO Donut & Coffee know that their weaknesses will make their competitor
take a chance to become more better from them. So J.CO Donut & Coffee using a social media
as their strategy to make their advertisement or promotion become wide. This strategy is realized
in the form of sampling around the store, making a twitter account, webpage and Facebook fan
page in the virtual world. For J.CO Donut & Coffee, endorsement visitor, long queues snaking
through at the outlets and media who write a story about the delights and distinctiveness J.CO
Donut & Coffee more important than advertising. This branding strategy succeeded in creating
word of mouth and reap the publicity.
15
Beside, J.co has a website www.jcodonuts.com that provides a variety the menus inside
the complete content to answer the curiosity of enthusiasts J.co and web design is very appealing.
J.CO Donut & Coffee will also have a twitter account for the media promotion of highly innovative
in addition to facilitate the costumer to find out the latest products from J.CO Donut & Coffee. They
do not do advertising in newspapers or television, but only using social media and their own
websites. Ineffective advertising would limit the user's knowledge about J.CO Donut & Coffee or
products sold by them. This is because there are certain groups who do not use social space as a
source of reference even those still using print media or on television advertising to influence them.
Without extensive advertising, this certainly would limit the promotion of their products.
Furthermore, J.CO Donut & Coffee also use strong marketing analysis in order to
overcome their weaknesses such as market segment, target market and positioning. For market
segment, J.CO Donut & Coffee are usually choose any location that have high rate of population.
They believe that by doing this, they can easily spread and promote their product to the locals.
Another benefit of choosing this kind of place, they can have variety of consumer that come from
different background, buying behavior and needs. For demographic, most of the J.CO Donut &
Coffee consumer are come from group of people that love to eat, especially for food that have
sweet taste regardless of their genders and ages. This is why J.CO Donut & Coffee choose Asia
country as their base or center of marketing scope because they believe that most of the Asian
love to eat something that not to heavy but tasty.
Beside, for target market J.CO Donut & Coffee choose an urban and mega mall as their
top priorities. For them, a strategic place or location is everything because it can affect the result
and profits of a company. By selecting these type of location, they can easily having and attract
consumer that suitable for their product. J.CO Donut & Coffee set an aim for people that come with
medium to high rate of income as their costumer because most of their product quite pricy. Even
though its a bit pricy, its still worth because of the quality that J.CO Donut & Coffee provide for
their consumer. Last for the positioning, J.CO Donut & Coffee come with the great taste that
suitable for all type people, its help them to make their costumer attracted and will buying J.CO
Donut & Coffee product for the second times. J.CO Donut & Coffee believe that their product quality
is the best. Even though, they are rarely advertising their product through medium such as
television, radio or printed media, people still come to them cause of their great service and goods.
This is how they ensure that their costumer will think automatically when they talk about donuts,
coffee or yogurt.
16
3.3 Opportunities
As we all know, Malaysian people love to eat snacks and most of people make a donut as their
side dishes. So, J.CO Donut & Coffee takes this opportunity to further expansion in new location.
Different for Dunkin Donut, they take an opportunity due to Malaysian people love a sale by do an
online sale for their loyal customer. In Malaysia, J.CO Donut & Coffee has opened a total of 11
branches throughout the country. In Johor, J.CO Donut & Coffee has opened 4 outlets, followed
by Selangor at 3 outlets. Others such as Kuala Lumpur, Negeri Sembilan, Malacca and Penang is
one outlet only. Since J.CO Donut & Coffee already known by Malaysians, especially, so J.CO
Donut & Coffee has plans to open two new branches in Kedah and the East Coast. This is an
excellent opportunity because this will helps to increase sales and expand J.CO Donut & Coffee
empire and continues to be recognized in the eyes of the world.
Beside, wide range of products is much preferred by consumers. This is good opportunity
for J.CO Donut & Coffee to attract their loyal customer to keep stick with them. Because of J.CO
Donut & Coffee introduce various types of donuts, it became a magnet for strong attraction by the
customer. Buyers have a huge selection of donuts and coffee to choose. Each donut is served with
different flavors that are sure to make their customers really love it, especially young people. Coffee
is also on special import from Costa Rica and it smells delicious. Each donut creatively named
based toppings and flavors. This creates a unique and easy to remember, for example, Cheese
Me Up is the name for a donut with melted cheese on top layer. Tira Miss U is the name for a donut
topped with tiramisu. Its different with other donut company. While other companies compete to
increase promotion for their products, J.CO Donut & Coffee just to make sure that their products
is always in good quality. For Dunkin Donuts, this is time for them to make menu diversification.
The company has more than just entertained the idea of breaking into lunch and dinner day parts
over the past few years. Dunkin has added new sandwiches and drink options to its menu to meet
this growing demand.
Furthermore, for J.CO Donut & Coffee, they already know that their product are expensive
and this is their opportunity to offer an attractive promotions, offers and discount to their loyal
customers. This is how they manage their marketing strategy. Usually J.CO Donut & Coffee will
make offer during the festival or celebration such as New Year, Independence Day and Hari
Malaysia. Every festival they will come out with new donuts that only offer for the limited time. For
example, the promotion is buy 1 dozen will get free 1 drinks of coffee and only offer during the
festival celebrated. J.CO Donut & Coffee will never decrease or reduce their price, but they only
make a promotions or offer for a certain time only. The offer also will be in two or three days, not
more than five days so that they do not incur significant losses.
17
In order to compete with their competitor, J.CO Donut & Coffee make a strategy that their
new outlet will be open in more strategic place. The opening of a new outlet is from the survey that
was conducted among visitors to the mall involved. Based on survey was done, mall visitors in
Kedah and the East Coast are welcomed the opening of their donut empire since J.CO Donut &
Coffee there is no longer any open branches there. Most of them are very interested donut
produced by J.CO Donut & Coffee and can only be bought donuts and coffee if they travel to Kuala
Lumpur or Penang. This has restricted their desire to buy donuts from J.CO Donut & Coffee. So
by opening their branches in two states was selected will make the public more familiar with what
J.CO Donut & Coffee generate for consumer who likes to eat a donut. J.CO Donut & Coffee can
also meet the high demand in the region. By choosing a strategic places, J.CO Donut & Coffee
can expand their business and make all the Malaysian people know about their products.
Everyone knows that Malaysian people love to eat. Even they said the price are expensive,
they will still buy it. From this J.CO Donut & Coffee take this opportunity to change the way people
live by change in social patterns and lifestyle. When J.CO Donut & Coffee managed to persuade
Malaysians to be interested in all the food and drinks they provide, this will change people life style
especially for donut lover. If before this many people prefer to eat Korean food like sushi, they can
try all kinds of donut and no sense of doubt because the company has received approval from
Jakim and has the Halal logo that have been recognized.
With each outlet themed family concept, so this will be of interest primarily with families to
come and relax in their outlets. Without having to queue and caf imaginable user-friendly, it will
delight everyone who came. For young teenagers especially, they can having time with their friends
at any J.CO Donut & Coffee outlet and enjoy with some donut and cups of coffee. This is how J.CO
Donut & Coffee attracts young people to become half of their loyal customer and can change a
teenagers lifestyle from hangout at mall for nothing to have some enjoy at their donut caf.
18
3.4 Threats
As large companies that produce the best donut in the region asia, certainly behind the success
there must be some great competition on a par with them. It cannot be denied since before the
existence J.CO Donut & Coffee, there are other companies that produce similar products such as
Dunkin Donut and they also has a same threat like J.CO Donut & Coffee. As a newcomer in the
food industry, J.CO Donut & Coffee had to compete with other companies to ensure that they can
live a long time in the making donut industry. This is definitely a big challenge for them because
they have to be more innovative in making donuts from being seen together with other donut
company. Therefore, before the company opened a donut their first empire in Indonesia, the
founder of J.CO Donut & Coffee, Johnny Andrean, has done extensive research on the making of
donuts and flavor to suit every donut produced. This study is important because it needs to
generate donut with the uniqueness that beats the existing donut.
Beside, changing taste of the consumer is also one of the challenges or opposition to be
encountered by J.CO Donut & Coffee. What we can seen now, a variety of "hipster" foods which
became popular especially among a young people. Among the latest is the preferred choice of
homemade donuts. Homemade donuts produced similar with the donut that produced by all
companies in the country's. Homemade donuts are produced with some new flavor that will appeal
to donut lover. Prices were much cheaper than J.CO Donut & Coffee or other companies. This
becomes a great challenge for J.CO Donut & Coffee especially because of changing consumer
taste will affect the sales of their donut but J.CO Donut & Coffee will not overreact by this issues.
They take this positively because they strongly believe that their products are the best. Even
everyday their competitors will produce a new donut with new flavor it still cant be same with their
donut that has been produce by the best ingredients. Same goes to the coffee.
Now, many of homemade coffee people can get with a cheapest price. But J.CO Donut &
Coffee still become the best choice among the coffee lover. For Dunkin Donuts, unhealthy lifestyle
become their threat because their customer complaint that their product are too sweeter especially
for old man. Too many people have a problem with a lot of sugar intake. This can lead to many
diseases such as, Diabetes. Dunkin Donuts uses a lot of sugar in their products could be
threatened by this issue.
Based on the interview, equipment breakdown also become one of the threat in their
management. Machinery breakdowns are always costly and it will take a long time before they get
a new machine. This becomes a major problem because they had to borrow a machine in another
outlet nearby. This damage has slowed their service and suffered losses due to a donut that has
been damaged. This needs to be faced by J.CO Donut & Coffee when their machine is damaged.
They had to close the shop for a few hours while waiting for the machine to be borrowed. There
19
are times when they had to close up shop earlier than usual to avoid any problems arising from an
interrupted process. They also faced a problem that sort of workers in every outlets. When asked
if the salary is making it a shortage of workers. J.CO Donut & Coffee answered salary offered is
among the highest in the food industry in Malaysia. The reasons given by the J.CO Donut & Coffee
is the average Malaysians lazy to work and it become problem when having a full house, due to
sort of workers, their service become slow and make a customer waiting in long queue.
To overcome the threats, J.CO Donut & Coffee need to maintain their product quality to
make sure that their product still in first choice of Malaysian people. J.CO Donuts & Coffees donut
are made using machines, both when mixing the ingredients, cooking and making donuts topping.
All machines are used entirely imported from the USA. In order to maintain high quality product for
their customer, J.CO Donut & Coffee imported more than 70% of their ingredients from abroad.
The chocolate used for donut topping are specially imported from Belgium and the milk from New
Zealand. Most of their coffee products are imported from Italy and Costa Rica. Based on all this,
J.CO Donuts & Coffee positioned their self as a premium quality products in the donut market in
Malaysia. Most of the raw material for making donuts J.CO Donuts & Coffee use goods imported
directly from the USA.
J.CO Donut & Coffee also will produce a new flavor for donut that will meet their loyal
customer next year. Their new flavor is fresh and no other competitor has produced the flavor in
the market. They promised that their new flavor will full their customer satisfaction and as a sign of
appreciation for the loyalty of their customers. J.CO Donut & Coffee will keep improve their quality
in the future so that their customer will always remember their products. To overcome the problem
sort of workers, they had to bring in workers from J.CO Donut & Coffee Jakarta to fill a vacancy in
any of their outlets. This is also one of the obstacles for J.CO Donut & Coffee because when they
lack workers, they had to draw workers to a longer time. The strategy that J.CO Donut & Coffee
do to overcome their threats will help them in future and become strong company that produces
good products in the world.
20
To establish J.CO Donuts & Coffee as the foremost International Premium Donuts and
Coffee brand
To be the right company for the right people who want to achieve their dream
4.2 Mission
4.3 Awards
In its first year of operation, J.CO Donuts & Coffee was awarded "Marketing Award" as the brand
with the best product innovation. Following this award, J.CO won "Best Donut 2006" by FREE
Magazine at the end of 2006. In early 2008, J.CO Donuts & Coffee received the award "The
Integrated Marketing Strategy Champion 2008" by SWA business magazine and MarkPlus Co.
Since its establishment, J.CO has already won many awards.
4.4 Objective
J.CO Donuts & Coffee are international premium Donuts and Coffee brand, and they offer unique
flavours of donuts and beverages to their customer like they've never tasted before. J.CO Donuts
and Coffee only uses the best ingredients from all over the world - such as Belgian Chocolates,
Californian Almonds, Japanese Matcha Green Tea and Italian Roasted Coffee in their products.
The first outlet opened in Indonesia on June 26th, 2005 at Supermall Karawaci. After founded on
June 2005, within less than 6 years of operation, J.CO has succeeded in opening more than 120
outlets throughout Asia with its expansion in Indonesia, Singapore, China and Malaysia.
4.5 Issue
J.CO Donut & Coffee did have an issue about several thing such as shortage of workforce in
Malaysia and the imported ingredient are whether damage during shipping or held by the authority
for a long time until the ingredient is unusable.
21
22
23
Berry Spears
Al Capone
Avocado DiCaprio
Black Jack
Blueberry More
Candycane
Cheese Cakelicious
Choconutzzy
Coco Loco
Copa Banana
24
Crunchy
Don Monchino
Forestglam
Glazzy
Heaven Berry
Jacky Chunk
JCoccino
Mesisipi
MrGreen Tea
Oreologi
Snowwhite
Strawberry Fondue
25
Sugarrice
TiraMissU
White Desert
Why Nut
26
27
28
J.CO Donut always monitored their annual sales volume based on product to keep their
time on PLC in maturity mode. Whenever J.CO Donut & Coffee product reach the some level of
their maturity, J.CO Donut will either replace it with new product or withdrawn it from the market.
This is to ensure that they didnt lose their customer, profit and to delay the decline of a wellestablished product which has the potential of generating further revenue.
29
Growth Rate
High
QUESTION MARK
STAR
COW
Low
High
DOG
Low
Market Share
According to BCG Matrix, J.CO Donut & Coffee can be considered as the question mark
in the Malaysian donut industry. The reason for this is its high market growth and their low market
share in the Malaysia market. These happened due to the several reason such as J.CO Donut &
Coffee are the younger competitor in donut industry. In Indonesia market however, J.CO Donut is
the star because they have high market share and high market growth. J.CO Donut & Coffee are
aiming to become the star in Malaysia donut industry by planning to open several dozen caf in
the coming year.
By having a high market share and high market growth, Big Apple Donut & Coffee are the
star because they have 85 outlet and caf selling their product and some of the public are already
being customer with Big Apple Donut for a long time as Big Apple is Malaysian company and its
the pioneer in Malaysian donut caf concept. The cow in Malaysian donut industry is Dunkin Donut
as Dunkin Donut although have high market share, it have a low growth rate. Currently, Dunkin
Donut are having 81 caf in Malaysia including Sabah and Serawak. Dunkin Donut have low
growth rate may be due to their same menu with new product being introduced since their opening.
Lastly, Krispy Kreme are considered as the due to its low market share and low market growth.
Krispy Kreme currently have 12 store in Malaysia and it is assume that it the dog because the
brand is from United State of America and it is not widely known by public.
30
31
32
New Product
Market
Product
Penetration
Development
Market
Diversification
Existing
Market
New
Market
Development
In the Product-Market expansion grid, J.CO Donut & Coffee are located in the product
development strategy. They claimed that this strategy suit the business that they are in. Product
develop can be define as developing new products and offering to the existing current markets.
These strategies often try to sell new products to regular customer. Product development is used
when there is a new product which has to be introduced in an existing market. In J.CO Donut &
Coffee, they regularly introduced new donut topping and beverages flavour. When they introduced
new product, they sometimes removed the less profit product. The department that responsible
for product development in J.CO Donut & Coffee are their Research and Development (R&D)
department.
33
34
JAN
FEB
MAR
APR
MAY
JUN
JUL
OGO
SEP
OCT
NOV
DEC
AMOUNT
BUDJET
Promotion
RM 8000
Raya
Orphanage
RM
and Sponsor
12000
International
RM
JCO meeting
18000
Serivce
RM
Equipment
15000
Hiring
RM 9000
and
Training
Research
RM
and
12000
Development
JCO
RM 4500
Malaysia
Meeting
Based on the Gantt Chart stated above, JCO Donut and Coffee had a promotion during each
festival that celebrate in every religion. At each year, they will do a promotion include the Chinnesse
New Year, Hari Raya Aidilfitri, Deepavali and Christmas. Besides on the promotion, at every three
times a year, they will do a sponsor towards the orphanage withthin January, May and December.
Meeting with the international JCO meeting had always done total of six months in a year
which is straight from the January untill June. On top of that, on the grey scale above stated that
JCO had their service equipment at every three times a year that is on March, April and May.
Therefore, their equipment is always in a good condition. On the black scale above, the JCO Donut
and Coffee hiring and training the employees at every three months in a year which on January,
February and March. Throughout the training, the company served a good technique and skill for
their work. Most of the time, research and development had the longest period compare to the
other activities. The Gantt chart above shows that, the company done it at every twelve times in a
year that from the January and December which they always making an improvement on the taste
of their drink and food to satistfied their customers. Before the development been made, they
always done a research by having a survey and online survey giving out towards the customers to
know exactly what is less on their foods and drink or even their services.
35
Last but not least, At every three times in a year JCO held a meeting between the CEOs
of the JCO in every state in Malaysia that are on April, May and June. Throughout the meeting,
most of the time, they are disscussed about the finacial problem or to solve the problem that their
company faces. The problem that the company faced in targeting the time that had been set, there
are several problem that they face especially because of the employees itself. Less numbers of
workers caused the company severe a problem. As what that we had earned from the interview
that we had made, Malaysian people are not giving their interested towards the jobs and
demanding for a better job.
Other than that, from what we have known based on the interviewed that we had done, the
problem that cause the problem is the equipment. Less of equipment that are provided for the
company. The JCO Donut and Coffee divided the task towards their employees in order to
achieved their time that have been set, the company find a solution to acheive it by creating a
timetable toward each of the employee. The time working for each of the employee for the JCO
donut and coffee is eight hour a day. The period of time for the work hour is long due to the lack of
worker for the JCO. On the other hand, if the worker didnt perform well for the JCO they will attend
for the couching and counseling and they will have 2 months notice before they been terminated
for the job.
36
7.0 BUDGET
This section aims to analyse the overall budget of J.CO Donuts & Coffee Malaysia (Pavillion
Branch) in terms of their target sales and the actual generation of income which consists of 3
phases; daily, monthly and yearly projection.
7.1 Products
To understand how J.CO Donuts budget works within its business operation, we must first take a
look at the range of product they deliver to understand the dispersal of prices. J.CO Donuts offers
5 different varieties of food products, which are:
1) Donuts: The donuts that comes in 24 different flavours are sold in 3 different
quantities which are a dozen per box, half a dozen per box and ala-carte. The
amount of donuts produced in J.CO donuts (Pavillion) is 5000 pieces daily. The
actual projection they managed to sell is at the capacity of 3,500 pieces daily
average, which amounts to 105,000 pieces monthly.
2) J.Coffee: J.Coffee managed to sell at an average of 90 cups per day, which
comprised of 3 different sizes; tall, grande, venti. For an extra RM1.00, you can
upgrade from medium to large. This coffee comes in 26 different varieties.
3) J.Club- J.Club are sold at an average of 30 units per day, they come in 2 different
flavours. They are one of the least within the product to generate sales throughout
their daily operation.
4) J.Pops- J.Pops or Baby Donuts is also popular among its customers, with a box of
24 pieces, they are selling at an estimated 40 boxes per day.
5) J.Cool Yogurt- The J.Cool Yogurt is also apparently selling 40 cups average per
day which comes in 4 different sets.
37
7.2 Calculations
The breakdowns for the calculation of unit sold are as follows:
1) Donuts- (i) 12pc x 230 boxes (RM 26.00)= 2760 units
(ii) 6pc x 110 boxes (RM13.00) = 660 units
(iii) Ala-carte (RM3.00) = 80 units
2760+660+80 = 3500 units (daily)
3500 x 30 = 105,000 units (monthly)
105,000 x 12 = 1260000 units (annually)
RM26.00 x 230 = RM5980
RM13.00 x 110 = RM1430
RM3.00 x 80 = RM240
RM5980+RM1430+RM240 = RM 7650 (daily)
RM7659 x 30 = RM229500 (monthly)
RM229500 x 12 = RM2754000 (annually)
2) J.Coffee- (i) venti (rm 8.00) = 50 cups
(ii) grande (rm7.00)= 30 cups
(iii) tall (rm 5.00) = 10 cups
50 + 30 + 10 = 80 cups (daily)
80 x 30 = 2400 cups (monthly)
2400 x 12 = 28800 cups (annually)
RM 400+ RM 210+ RM 50 = RM660 (daily)
RM 660 x 30 = RM19800 (monthly)
RM 19800 x 12 = RM237600 (annually)
3) J. Club- (i) Cheezy Rich (RM6)- 15 units
(ii) Red Velvet (RM6)- 15 units
15 + 15 = 30 units (daily)
30 x 30 = 900 units (monthly)
900 x 12 = 10800 units (annually)
RM 90 + RM 90 = RM180 (daily)
RM180 x 30 = RM5440 (monthly)
RM 5400 x 12 = 64800 (annually)
38
(ii)
(iii)
7.4 Breakdowns
Monthly gross profit = RM 288,580
1. Cost of raw materials: RM 70,000 (24.25%)
2. Workmanship: 20 employees ( RM 1,800 each) + 2 store manager (RM 2,200) = RM
40,400 (14%)
3. Premis rental: RM 20, 000 (7%)
4. Utility bills: RM 5,000 (1.7%)
5. Franchise monthly fee: RM 10,000 (3,4%)
6. Monthly Profit Margin: RM 143,180 (49.61%)
39
Raya Promotions include Chinese New Year, Hari Raya Aidilfitri, Deepavali, Christmas
(Digital Advertisement RM2000)
Orphanage and Sponsor (CSR)- January, May and December (RM 4000 each month)
Hiring and Training- January, February and March (RM3000 each month)
JCO Malaysia Meeting- April, May and June (RM1500 each month)
40
MONTH
TASK
OBJECTIVE
CALCULATION AND
COST
JANUARY
CSR
Donation for
Orphanage
Discuss marketing
plans
Research/Development
Enhance staffs
RM 4000
RM 3000
RM 3000
RM 1000
TOTAL: RM 11,000
performance
FEBRUARY
Discussing means of
RM3000
effective promotions
RM3000
Enhance Staffs
RM 1000
TOTAL: RM 7,000
services
MARCH
RM 2000
RM 3000
RM 3000
agreements
RM 5000
Equipment Servicing
Enhance Staffs
RM 1000
Research/Development
TOTAL: RM14,000
equipments
Enhance sales and
services
APRIL
Discussing problems
and solutions
RM3000
RM5000
Research/Development
Maintain equipment
RM1000
RM1500
services
TOTAL: RM 10,500
CSR
RM4000
Discussing expansion
RM3000
Equipment Servicing
Maintain equipment
RM5000
Research/Development
RM1000
services
Discussing problems
RM1500
TOTAL: RM 12,500
41
JUNE
Maintaining Efforts
RM 3000
Research/Development
RM 1000
services
RM 1500
Discussing Solutions
TOTAL: RM 5,500.
RM 2000
Promo
Enhance sales and
RM 1000
TOTAL: RM 3,000
services
AUGUST
Research/Development
RM 1000
services
SEPTEMBER
Research/Development
RM 1000
services
OCTOBER
Research/Development
RM 1000
services
NOVEMBER
DECEMBER
Deepavali Promo
RM 2000
RM 1000
services
TOTAL: RM3,000
Christmas Promo
RM 2000
Orphanage donation
RM 4000
RM 1000
services
TOTAL: RM7,000
TOTAL:
RM11, 000 + RM7, 000 + RM14, 000 + RM10, 500 + RM12, 500 + RM5, 500 + RM3, 000 +
RM1000 + RM 1000 + RM 1000 + RM 3000 + RM 7,000
= RM76, 500 annually
RM 3,462,480 - RM76, 500 = RM 3,385,980 annual nett profit.
42
8.0 CONTROL
Marketing control is the way to compare your actual results to your marketing plan. To confirms
that your company already in the right track. The control step will help the company to improve the
performance. There is four tools of control in marketing which is Annual-plan control, Profitability
control, Efficiency control, Strategic control. J.CO Donuts & Coffee is using an Annual plan control
and profitability control for their business purposes. Annual plan control is the process to aim and
achieve sales volume and all objectives which already have been set up by the company. After
that, profitability control is how the company controls the sales made, profit earned and
expenditures incurred by them. Usually it relates with profit earning capacity of firms product by
the company. J.CO Donuts & Coffee will look back all the process get to know what they achieve.
Even though J.CO Donuts & Coffee already plans their strategy smoothly but theres no guaranty
profit for it.
MARKETING
CONTROL
ANNUAL PLAN
CONTROL
PROFITABILITY
CONTROL
43
Actual sales
3,500 pieces X 30 days =105,000 pieces of (donuts a month)
J.Coffee = 90 cups per day
J.pops = 40 boxes per day
J.cool yogurt = 40 cups per day
J.club = 30 units per day
Eventually, J.CO Donuts & Coffee not achieve their target every month, their just achieve around
3,500 pieces of donut a day. This show has some issue of what they already planned. .
8.1.1.2 The Issues Why J.CO Donuts & Coffee Cant Achieve Target
Price
The most important part that the company needs to consider is price. Before J.CO Donuts & Coffee
enter Malaysia market their already has their plan for price. For instance, J.CO Donuts & Coffee
used penetration pricing which is the pricing technique of setting a relatively low initial entry price,
usually lower than the intended established price, to attract the customer.
J.CO Donuts & Coffee was not achieve their target sales because of the others competitors has a
cheaper price of donut than them, their gives the best quality of donut to the customer. The price
of J.CO Donuts & Coffee actually the most reasonable, the company cant low the prices due to
the quality of ingredients that their used. For instance, J.CO Donuts & Coffee used the chocolate
that import from oversea such as from Belgium.
Style
J.CO Donuts & Coffee actually not seem the others ordinary donut company. J.CO Donuts &
Coffee ideas actually selling lifestyle, which is all type of people, can enjoy their donut and coffee
with happiness in the outlet. They most competitors are Big Apple and Crispy Crme because
these company also selling donut, but J.CO Donuts & Coffee also takes the caf such as Starbuck
and coffee Bean as their competitors too. That the reason they one of the pricy Donut among the
competitor.
Promotion
Promotion is the one of the strategy to makes the company popular in market. J.CO Donuts &
Coffee is the company just do the promotion in the outlet with give information to the customer
about their new promotion and to increase their sales. Due to this style of promotion J.CO Donuts
& Coffee enables to develop and build up a succession of massages like the others competitors
did.
44
Total of outlets
12
11
Jco
Big Apple
Krispy Kreme
80
Market share is the amount of consumer sales dominated that same product in particular industry.
The market share analysis of J.CO Donuts & Coffee, this Cafe has two close competitors which
are Big Apple and Krispy Kreme. These brands were selling the same product with them which is
Donut and coffee. Big Apple leading the market followed by J.CO Donuts & Coffee and next is
Krispy Crme.
8.2.1 Big Apple
This is because Big Apple already has over 80 branches in Malaysia. Big Apple brings the cheaper
price of donut compared to the J.CO Donuts & Coffee. They also creates makes the topping of
donut to the maximum compared to them. The fact is J.CO Donuts & Coffee actually brings the
truly taste of donut not just about the feeling and topping.
8.2.2 Krispy Kreme
Krispy Kreme already has 12 branches around Malaysia. The price of Krispy Crme more pricy
compare to this two brands. Besides doughnuts, Krispy Kreme also offers high-quality brewed
coffee, roasted by Krispy Kremes own roast master and a variety of other delicious beverages.
45
RM 229500
RM 19800
RM 5440
RM 21600
RM 12240
Total monthly
When
it
promotion
sales
will
RM 288,580
comes
to
RM404,012
month
the
increase
around 40%
RM 115,432
Budget for promotion each
outlet is RM20,000
46
The manager needs to monitor the bakers to achieve the target amount of donut every day
and the front liner needs to push the sales of donut and coffee. J.CO Donuts & Coffee needs to
produce every day is about 4000-5000 pieces. Every day the manager has to updates the sales
report. After that, they needs to analyze and compares the report. From the amount of donut, the
cup of coffee and yogurt is the way how they control their profitability every day.
Staff Training
J.CO Donuts & Coffee do their ongoing promotion in the outlets, usually the staff needs to know
how communicate and attracts with the customer to increase their sales. For example, when the
customer just want to buy the half dozen of donut the front liner needs to show the customer will
save a lot when they buy for a dozen.
Hiring and Training - January, February and March (RM3000 each month)
J.CO Donuts & Coffee has their own strategy to control their profit. First with Staffing and
push the sales of product by the staff. J.CO Donuts & Coffee also said the most important to fight
with their competitors is trust on the quality of what they using. Even though their donut is one of
the pricy but the most important the quality of ingredient that their using. Quality and price actually
are come together.
47
MARCH
JULY
NOVEMBER
DECEMBER
Next, J.CO Donuts & Coffee also makes their customer satisfied with their service. They needs to
make sure that the customer will come back to the caf to having their donuts and be a loyal
customer. Usually, the loyal customer will select the best of taste and experience that their get.
J.CO Donuts & Coffee improve their relation with stakeholder regularly. Lastly, J.CO Donuts &
Coffee maintain their strategic place and know the profitability place. Usually, they choose the
place that have many crowd such as Pavilion Shopping Centre and IOI Mall Puchong. The placing
of shop also takes the important role, what we can see J.CO Donuts & Coffee chose their shop
that near to the entrance of the mall.
48
9.0 APPENDIX
CONTACT NUMBER
J.CO Donut & Coffee Malaysia
(Pavillion Kuala Lumpur)
Marketing Department
+60127313391
49
10.0 REFERENCES
-
Armstrong, G., & Kotler, P. (2000). Marketing. Upper Saddle River, NJ: Prentice Hall.
Zeithaml, V. A., Bitner, M. J., & Gremler, D. D. (2006). Services marketing: Integrating
customer focus across the firm.
Kotler, P. (1999). Marketing management. Upper Saddle River, N.J.: Prentice Hall.
Vargo, S. L., & Lusch, R. F. (2004). Evolving to a new dominant logic for marketing. Journal
of marketing, 68(1), 1-17.
Grnroos, C. (1990). Service management and marketing: managing the moments of truth
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