EXECUTIVE SUMMARY

A market is a medium that allows buyers and sellers of a specific good or service to interact in
order to facilitate an exchange. This type of market may either be a physical marketplace where
people come together to exchange goods and services in person, as in bazaar or shopping centre,
or a virtual market wherein buyers and seller do not interact, as in an online market.
Warong ABC Kak Darot is a small food stall located at Kota Samarahan. The main business
activity that Warong ABC Kak Darot serves is delicious desserts with big portion and reasonable
price. The stall operates six days a week except Wednesday from 12 pm to 7 pm. Most of the
customers are the local people of Kota Samarahan, the workers that work in that area and also
some university students since the stall is allocated near by the local universities which are
University Malaysia Sarawak (UNIMAS) and University Teknologi MARA Sarawak (UITM).
One of the main and popular desserts that they serve is mixed ice called ABC. ABC can be
made by many people all around the world but what made this ABC from Warong ABC Kak
Darot special is the various of flavour offered with reasonable price. Most of the customers are
fasinated with big portion and the beautiful of the dessert served. The ABC has almost
everything that the customers want, the sweetness, fruity, tasty and colourful dessert. Instead of
cold dessert like ABC, there are many kind of foods that are sold at this stall like banana cheese
and Malaysian fish cracker snack called 'keropok lekor'.
The competitor of this popular dessert stall is Anekarasa Gerai ABC dan Makanan stall. The
competitor is located right next to Warong ABC Kak Darot stall and surprisingly, the sell almost
the same product as Warong ABC Kak Darot. Eventhough the competitor sells the same product,
but Warong ABC Kak Darot have more customers due to the various flavor of desserts and the
stall itself is well-known in Kota Samarahan.
The customers usually assess the affordability and service in term of ability, efficiency,
quality, price and the cleanliness. To reach the customers satisfaction, this business will try to
provide the best services to the customers by focusing on the criteria. Through the good services,
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the business will attract more loyal customers in the future and become one of the success
company.

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SITUATION ANALYSIS
We identify the internal and external factors which influence the business of Warong
ABC Kak Darot Kampung Stakan. We gather information to analyze Warong ABC Kak Darots
marketing environment that affects marketing managements ability to build successful
relationships with target customers.
Microenvironment
1. Suppliers
Warong ABC Kak Darot partners with some companies such as Nestl and Hosen to obtain
the ingredients of their products including ice cream and canned longan. These companies
provide products to Warong ABC Kak Darot for long run cooperation. Suppliers issue may affect
the business activities if any shortage of stocks or delay of delivery occur. It may lead to loses to
the business of Warong ABC Kak Darot. Besides that, assume that the suppliers rise their supply
cost, the owner needs to increase the price of their products in order to maintain the profit.
2. Competitors
Warong ABC Kak Darot has to gain strategic advantages and aware of the competitors.
Similar products offered by competitors will cause the customers to compare the benefits of
different enterprises. Every business possesses their own strength and weakness in the market.
Name

Warong ABC Kak Darot

Price range

RM3 to RM6

Strength
Weakness
Products
Distance between
the two enterprises

Verano Picnic @ Summer

RM4 to RM7
- Strategic location in
- Products are unique and
shopping mall
different from other competitors
- Comfortable and air- Lower price
conditioned environment
- Limited car parks and seats
- Ordinary products
- Hygiene issue
- Higher price
ABC, cendol, fried banana,
ABC, cendol, juice
keropok lekor
12.8 km

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3. Publics
A public is any group of people that may have potential interest in or impact on Warong
ABC Kak Darots ability to achieve its goals. For example, media publics such as Facebook and
Foursquare help the business to spread the information of products to the target customers.
Connecting with people by social media enables the customers to be aware of the business
brand. Warong ABC Kak Darot needs to care about the general publics opinion and perception
towards its products and services. The general publics image of the enterprise will directly affect
the customers buying behavior and their willingness to repurchase the products. Apart from that,
internal publics consist of the employees of Warong ABC Kak Darot. The owner has to educate
and motivate the employees so that they express positive attitudes and serve customers better.
4. Customers
Customers are the most important variable in the business microenvironment. Warong ABC
Kak Darot targets consumer markets as their main customer market. For example, the costumers
buy the products of Warong ABC Kak Darot for self consumption. This is because the
preservation period of products like ice cream ABC and cendol are very short. It is difficult to
resell the products by intermediate.
Macroenvironment
1. Demographic
The major demographic environment of Warong ABC Kak Darot consists of young
generation. Usually the parents bring their children to enjoy food and desserts at the stall. Sweet
foods such as ice cream ABC and cendol are the popular foods for the children. Besides that,
young people like to have gathering at Warong ABC Kak Darot as the food and dessert are at
reasonable price and it relieves summer heat.

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2. Natural environment
The natural environment involves the physical environment such as the weather of Kuching
that will affect the business activities. Malaysia has the climate with high temperature and wet
months throughout the year. Generally, the weather from April to July are dry and the maximum
temperature reaches about 32 C. In this period the sales of War ong ABC Kak Darot will increase
as the customers prefer to have desserts to relieve summer heat. Meanwhile the humidity of
Kuching area on September, October, November and December are high. There will be less
customers visiting Warong ABC Kak Darot as the weather is cold and people prefer to choose
hot food and drinks.

Average minimum and maximum temperature in Kuching over the year

3. Technological environment
Technological environment are forces that create new technologies, creating new product
and market opportunities. Technological process involving high-tech machines will improve the
efficiency of the work. For example, electric ice crusher machine saves time and energy in
crushing the ice cubes. However Warong ABC Kak Darot are still using the manual ice crusher
machine in operation of business activities. Besides that, the customers of Warong ABC Kak
Darot give positive comments to their products on social media such as Facebook. The usage of
internet exposes the enterprise to be well known and helps to attract more customers to visit
there. Thus internet is important for an enterprise as the potential customers can observe the
situation of the business by looking at the photos and feedback of customers.

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4. Political environment
SME Corporation Malaysia (SME Corp. Malaysia) is a Central Coordinating Agency under
the Ministry of International Trade and Industry Malaysia. It formulates overall policies and
strategies for Small and Medium Enterprises (SMEs) and coordinates the implementation of
SME development programs. The soft loan for SME was launched in December 2001 to promote
the development of small and medium enterprises in Malaysia. For example, small and medium
enterprises like Warong ABC Kak Darot may take a loan from bank to start up their business.
They do not have to worry about the working capital to run their enterprises. They can use the
fund to purchase fixed assets, pay rental of premises and hire workers. This policy helps the
entrepreneurs that are lacking of capital to found their enterprises.
5. Economic environment
The economic environment consists of economic factors that affect consumer purchasing
power and spending patterns. From 1 April 2015, a Goods and Services Tax of 6% was
implemented in Malaysia. This causes the cost of materials of food and drinks bought will
increase. Thus Warong ABC Kak Darot has to spend more money to buy materials and they need
to raise the prices of products in order to gain profit. This will cause reduction of sales of their
business as the purchasing power of customers become smaller.

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SWOT ANALYSIS
1. STRENGTH
Warong ABC Kak Darot have many strength compare from others.. The location of
Warong ABC Kak Darot is very strategic because the place can be seen from the route. Price
offer by Warong ABC Kak Darot is very reasonable than others competitor. Such as, the
competitors price of ABC Special is RM4.00 but the price of Warong ABC Kak Darots ABC
Special is only RM3.50. Warong ABC Kak Darot also offer many types of food to all customers.

Figure 1 : Types of food offer at Warong Kak Darot

Warong ABC Kak Darot has many advantages other than competitor. Many of their
customers come to their place because they want to taste the delicious of ABC Special. The
unique of the food they are offering to the customers could be one of their attractions.

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2. WEAKNESS
The seat place in Warong ABC Kak Darot is limited because the place is small.

Figure 2 : The limited space of Warong ABC Kak Darot

There are limited space for any vehicle to parking near Warong ABC Kak Darot. It will be
dangerous for any vehicle to park beside the road route cecause it will cause an accident. Their
services also are poor because lack of staff working at Warong ABC Kak Darot. The
environment of Warong ABC Kak Darot not clean and dusty.

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3. OPPORTUNITY
Warong ABC Kak Darot can expand their business by build-up many branches for Warong
ABC Kak Darot in order to sustain in the period of time. Warong ABC Kak Darot can make a
plan to open the stall at some area in Sarawak. The owner should include new beverage so they
can taste new food and drinks add on in theor list of menu. In addition, Warong ABC Kak Darot
can renovate their stall in order to attract many customer such as, build up a big stall and
comfortable for the customers to sit, scenery view or environment with beautiful landscape and
providing a space for parking vehicles.

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4. THREAT
Every business has different kind of risk they need to confront. The threat for Warong ABC
Kak Darot is competitor. In order to growth successful, Warong ABC Kak Darot need to survive
and compete with other competitor which offering the same product as Warong ABC Kak Darot .
Politic situation in Malaysia with a new policy by the government and the economic crisis could
affect the Warong ABC Kak Darots business such as, increase of oil and gas price plus with
GST. Trend also become part of different risk that need to be overcome by following that trend
such as customers like to come the stall who are offering WI-FI or technology based. Technology
growing much faster day by day, so the owner has to expand their business by matching up their
business with the current technology needs.

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MARKETING MIX ANALYSIS

PRODUCT
Product means the goods and services combination the company offers to the target market.
Product strategies include decisions such as product design, variations, features, packaging,
branding and support services.
Warong ABC Kak Darot specialise in making ABC. There are many types of food on their
menu such as banana cheese and Malaysian fish cracker snack called 'Keropok Lekor', but the
most popular and special dish is ABC as their ABC have various types of flavour offered. Most
of the customers are fascinated with big portion and the beautiful of the dessert served. Many
other places also serve ABC as their main menu, but most of them serve ABC in a small portion
and not suitable with the price. The ABC in Warong ABC Kak Darot has almost everything that
the customers want, the sweetness, fruity, tasty, and colourful dessert.

Figure 3 : Types of food that Warong ABC Kak Darot serves

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PRICE
The customers perception of value is an important determinant of the price changed. A product
is more than a physical item, it also has psychological connotations for the customer. The danger
of using low price as a marketing tool is that the customer may feel that quality is being
compromised. It is important when deciding on price to be fully aware of quality of product, the
cost to make the product, competitive pricing and its integrity.
Warong ABC Kak Darot used this price marketing mix to decide their products price. This
warong have two type of menu which is menu for drink and menu for food. The price range for
drink only between RM2 RM6 and the price range for food between RM2 RM8 only.
Customers can purchase the item (food & drink) because the prices are suitable and affordable
whereas it is balance with the taste and quality.

Figure 4 : List of menu in Warong ABC Kak Darot

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PLACE
Place includes company activities that make the product available to target consumer. Place or
placement has to do with how the product will be provided to the customer.
Warong ABC Kak Darot is a small food stall located at Kota Samarahan. It is very strategic
because it is easy to find as the stall is just by the road side. Although the place is not a luxurious
eating place but many customer with various of ages will come to eat and try the most popular
dish here which is ABC.

Figure 5 : Warong ABC Kak Darot

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PROMOTION
The promotions aspect of the marketing mix covers all types of marketing communications and
techniques. These include sales promotion, advertising, public relations and special offer.
Warong ABC Kak Darot uses various methods to promote its products. Mostly it is through
advertisements that conducted on online through websites, blog, facebook and also poster. This
advertisements makes people aware about the products. Warong ABC Kak Darot also have a
good public relations with the customer whereas most of the customers are from around the
village and nearby with this Warong.

Figure 6 : Warong ABC Kak Darot's official Facebook site

RECOMMENDATION
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In order to meet and able to deliver the superior value to target segment, few
recommendation had been produce through the observation and continuous survey on Warong
ABC Kak Darot. These recommendations are based on the SWOT analysis and the 4Ps. First,
Warong ABC Kak Darot did not provide enough facilities for their food stall. Every time there
are customers coming to the food stall, they have to wait for the other customer to finish their
food and have to reserve the table before others do. Means you must be alert in order to get a
seat. This situation might not be suitable for the new customer and Warong ABC Kak Darot
should reconsider to add more chairs and tables at the stall. Plus, the additional chairs and tables
might not be enough because of the limited space, as a recommendation Warong ABC Kak Darot
can extend the space for their food stall by setting up a temporary tent outside of the stall to
provide a more spacious place for the customer to eat. They might be able to attract the first
timer and create more customer-owner relationship to maintain the sustainability of their
business against their competitors.
Secondly, to make the customers feel more comfortable, they need to cover the drain
near their stall because sometimes in the rainy season the unpleasant smell came from the drain
would make their customers loss their appetite. Since, hygiene is one of the important aspects to
gain customer trust, Warong ABC Kak Darot should reconsider and find an alternative to cover
the surfaces of the drain to make customers feel more safe and comfortable. It is one of the most
crucial aspect when choosing the best place to eat because customers nowadays would choose
the place to eat based on the quality, quantity and the surrounding provided by the food stall.
From our observation, Warong ABC Kak Darot has served their customers with affordable price,
which have a large portion and myriad of selection in theme of their dessert. But, most of their
food selections only suitable during hot weather. To gain more profit, Warong ABC Kak Darot
should consider providing new menu, which are suitable to be serve during rainy seasons. For
example, instead of ABC, they can serve customer with red or green bean porridge, which is
serve warm or hot, based on the customer preferences. By providing differentiation and
understanding customer needs and wants, it is possible for Warong ABC Kak Darot to become
the lead to the food stall businesses in their place.

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Next, to stay long in the business and grow bigger Warong ABC Kak Darot should
seeking helps from government in providing them with the money to improve the condition and
the environment or even their services for their food stall. Highly cost to conduct renovation on
their stall can be done if Warong ABC Kak Darot is willing to seek the helps from the
government. Furthermore, government might give the opportunities for them to learn and to
adapt their business according to our today market. For example, SME corp. is one of the
government plan and strategies in helping small business such as Warong ABC Kak Darot.
Through SME corp., Warong ABC Kak Darot able to have grants and loan to expand their
business and gain more profit, besides if Warong ABC Kak Darot officially register their
business to the government it is more easy for them to seek for the SME corp. helps.
Besides getting the help from government, in order to be success in their business
Warong ABC Kak Darot must be known and gain recognition from the public. To gain
recognition, Warong ABC Kak Darot can organize some event and charity to the society. For
example, they can conduct an open house during Hari Raya Aidilfitri at the orphanage or old
folks home to give moral support for these societies and at the same time gain recognition from
the public for their concern toward the one who needs help. Apart from that, Warong ABC Kak
Darot can join any event which been held by the society by opening their instance food stall
during the event to gain recognition from the society. Example of event that Warong ABC Kak
Darot can join are during convocation of a University, secondary and primary school graduation
day, sport event and marathon that been held by Kuching society to attract the public attention
toward Warong ABC Kak Darot. If most of their customers satisfy with the services and food
that Warong ABC Kak Darot give to them, these people are likely to come again and search for
Warong ABC Kak Darot actual location.
Finally yet importantly, Warong ABC Kak Darot can promote their products and services
to the public through social media such as Whatapps and Facebook or they can provide
intermediaries at certain location to provide their product and service to their customer. Since,
most of the society actively involve with the social media it could be a great channel to give
information about Warong ABC Kak Darot existence to the people around Kota Samarahan and
around Kuching. For the intermediaries, Warong ABC Kak Darot does not need to hire any
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people to serve them, they just need to have a good relationship with their current customers. In
return, these customers are not only loyal but also able to promote Warong ABC Kak Darot food
stall to their family, friends, and people around them. We can say it is a win-win situation. These
customers might mention about Warong ABC Kak Darot in their Whatapps group, Facebook or
even Instagram while posting their picture and these action eventually will help to promote
Warong ABC Kak Darot food stall to the younger generation and able to gain popularity among
these group segment. But to achieve these, Warong ABC Kak Darot must maintain their good
services and performances so no negative rumour goes around these people or else it would kill
Warong ABC Kak Darot business and it might be game over for them.

CONCLUSION
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In a nutshell, market is a medium that allows buyers and sellers of a specific good or service
to interact in order to facilitate an exchange. For instance, Warong ABC Kak Darot is a small
food stall located at Kota Samarahan. This food stall serves delicious foods such as banana
cheese, keropok lekor, and rojak. It also serves dessert such as Ice Cream Gula Apong, ABC
Special, Cendol Pulut Special and others delicious desserts. All of these foods and desserts are
sold with a reasonable and affordable price. We can also identify the external and internal
analysis (SWOT analysis) of Warong ABC Kak Darot . One of the strengths is the stall offers the
customers with a reasonable price. Apart from that, they also located at the strategic place
whereby the place got many people. The weakness of Warong ABC Kak Darot is they prepared
the limited seat place. The opportunity is Warong ABC Kak Darot can expand their business to
many branches of Warong ABC Kak Darot in order to sustain in the period of time. The owner
could plan to open the stall at other strategic place in Sarawak. Warong ABC Kak Darot needs to
compete with their competitors such as Verano that based at Summer. This means their threat is
the competitors. The SWOT Analysis can help the owner of Warong ABC Kak Darot to make
sure that their business always grow well and gain more profits. Last but not least, we would like
to thank the owner for the time that she sacrificed for our group and give the permission for us to
study about Warong ABC Kak Darot.

REFERENCES
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Philip, P. & Armstrong, G. (2016). Principles of marketing (16th ed.). Kendallville,

Noble County, Indiana: Pearson Education 2016.
SME Corporation Malaysia. (2015). Soft loan for SMEs. Kuala Lumpur, Malaysia: SME
Corporation Malaysia.
Kotler, P & Armstrong, G . (2014). Principles of marketing (15th ed.). Kendallville,
United States: Pearson Education Limited.
The Marketing Mix and the 4Ps of Marketing. (2016). Retrieved from
https://www.mindtools.com/pages/article/newSTR_94.htm

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