1.

0 INTRODUCTION

In Malaysia, Giant is synonymous with everyday low prices, big variety and great
value and recognised for offering the most vibrant, comfortable and complete shopping
environment. Giant, which turned 65 in 2009, pioneered the concept of modern supermarket
shopping – buying everyday groceries, fresh produce and fresh foods under one roof and in a
hygienic environment. As the pioneer, Giant sets the pace and standards for the industry with
innovative marketing, store design and product pricing and variety. The list of accolades for
the Giant brand is growing. Inter-brand ranked Giant as Malaysia's 11th Most Valuable
Brand in 2007, and in 2008, the 12th Most Valuable Brand. Giant was awarded the Top
Retailer in Malaysia and Best of the Best in Asia Pacific Retailers' Award for 2 consecutive
years in 2007 and 2008. Other awards won in 2008 include, The Best Brands in Consumer
(Hypermarkets), The Brand Laureate Award 2007/2008 for Corporate Branding and also
Excellence Service Quality Award in the 7th Asia Pacific International Entrepreneur
Excellence Award.

The vision statement of this company is to be the most value-driven mass market
retail chain in Malaysia that offers Big Savings and Great Value.

The mission statement of this company is to provide the biggest on savings and value
across fresh, groceries and general merchandise along with the right shopping experience to
our customers every time.

At Massimo, we believe not all breads are created equal. Using only the finest
ingredients, we take pride in bringing you wholesome breads, baked with Italian passion -
ensuring every bite, from taste, texture to flavour. Our simple recipes for wholesome breads
have found their way into the hearts and homes of Malaysians across the nation. Whether
served plain or lightly toasted and savoured with butter or kaya, the goodness from a
Massimo loaf is enjoyed daily by all. The name Massimo is well renowned in the world of
Italy fashion and the very name in itself denotes luxury and prestige, synergizing traditional
style with modern design. Similarly, the Massimo bread is in the class of its own superior
quality bread bakes combining the tradition of the Italian human baking passion with modern
days technique to ensure that is always retain that authentic fresh from the oven taste. The
name Massimo is chosen to be the brand name for the entire product with the tag line
“Wholesome Goodness Maximum Satisfaction”.
2.0 Description and evaluation on the segmentation, targeting and positioning strategies

2.1. SEGMENTATION

The process of defining and subdividing a large homogenous market into clearly
identifiable segments having similar needs, wants or demand characteristics. Its objective is
to design a marketing mix that precisely matches the expectations of customers in the
targeted segment.

There are four segmentation variable in segmenting consumer markets. The first one
is geographic segmentation which is a common strategy when you serve customers in a
particular area, or when your broad target audience has different preferences based on where
they are located. As for Massimo, people will buy from supermarket or convenience store
through the week and especially if they are working. More on, these Massimo breads can be
eaten at anytime and anywhere. For example, the Massimo sausages bun will target the
customer in Kuala Lumpur and Klang Valley since the total population in that region is 7.2
Million people (Reporter, F. (2014) and Massimo will target 10% of the population.

The second segmentation is demographic that is a market segmentation according to

age, race, religion, gender, family size, ethnicity, income and education. Demographics can
be segmented into several markets to help an organization target its consumers more
accurately. Massimo breads target market is mainly low to middle income class customers
whose selling point is to the quality of wheat germs ingredients, affordable, worth to buy and
convenience. Meanwhile, the growing number of consumer spending on bread has been
continuously increasing. However, it should be noted to the company that the price sensitivity
of the target market does not allows brand switching offering similar products but also come
out with more variety of bread.
 Psychographic segmentation is the third segmentation variable. It divides your market
based upon consumer personality traits, social class, lifestyle, and market your products
because there will be a more precise match between the product and each segment’s needs
and wants. People who are eating Massimo well are probably concerned with calories but
also understand nutrition. Lifestyle criteria include consumer attitudes and perceptions. For
example, Massimo Sausages bun was made for the customer who believes in the benefit of
wheat loaf, and they believe Massimo sausages bun can fulfil their craving felt with the high
nutrient to increase the energy.

Lastly, behavioural segmentation is a marketing strategy based on actual consumer

buying behaviour. It divides the market into groups of consumers according to their
knowledge, attitudes, uses of a product, or responses to a product. Customers are segmented
on the basis of the benefits sought from purchasing a specific product. Massimo is healthy
and nutritional bread. More on, usage rate divides customers according to the level of usage
they make of the product. We can distinguish heavy, medium or light users. Most of us eat
bread daily but in moderation. People buy Massimo bread regularly and more often if they
have children.
2.2 TARGETING

Massimo is using differentiated marketing which target several market segments and
designs separate offers for each.

Massimo white sandwich is suitable for all all consumer groups. It is perfect for breakfast and
goes perfectly with favourite spreads.

Massimo bread with wheat germ and Massimo 100% whole wheat loaf contain wheat germ
and whole wheat grain which is high in nutrition. These products are targeted to individual
who prefer healthy food especially the elderly.

Massimo fine wholemeal is the combination of wholemeal and white bread which give a fine
texture of taste with healthy whole grains. It is for those individuals who carving for tasty and
healthy food.

Massimo cream rolls and chiffon in a cup are filled with delicious cream filling is introduced
to attract child and adolescent market. These products are easy to eat, a great snack between
meals, and consumers can have it with favourite drink during tea-time.

By offering product and marketing variation to customer, Massimo hopes to achieve higher
sales and a stronger position within each market segment. This allows Massimo to increase
potential customer base, sales, revenues and profits. However, by doing so, it increases costs,
because it needs to use tactics such as creating different marketing messages, using different
distribution channels, setting different prices, modifying the products or offering different
products.
2.3 POSITIONING

A product positioning is the way a product is defined by consumers on important

attributes the place the product occupies in consumers mind in relative to competing
products. Massimo has positioned their product strongly against competitor’s products in the
consumer minds by its statement. The statement of Massimo bread is “To strengthen our
leadership position in our core business in Malaysia, expand regionally for further growth and
invest in related activities for greater synergy and increase shareholders value, in a socially
and environmentally responsible manner through management excellence”. Vision statement
is “To be a market leader in our core business reputed for our sustainable quality products
and service.” Besides, Massimo also positions itself as a healthy, fresh and high quality
product in consumer’s minds. To develop a position within segments, Massimo will be able
to create more sales and attract more business opportunity.
3.0 Product Strategy

3.1 Product Classification

It has been classified as consumer product because usually final consumer bought Massimo
bread for consumption not for business purpose. Consumer products can be classified into
four categories which are convenience products, shopping products, specialty products and
unsought products. Massimo bread is known as convenience product. This is because
Massimo Bread can be bought frequently and immediately by consumers. Massimo bread
was affordable, available in a bottle and or in a big container. Furthermore, Massimo bread
have various type of product such as Massimo Sandwich Loaf with Wheat Germ, Massimo
Fine Wholemeal Loaf, Massimo White Sandwich Loaf, Besides, Massimo 100% Whole
Wheat, Massimo Cream Rolls, Massimo Chiffon In A Cup. there are many purchase location
for Massimo bread as supermarket and chain of convenience store in Malaysia.

3.2 Product and Service Decision

Product attributes – Branding – Packaging – Labelling – Product support services.

Product Attributes

The Massimo concentrates in defining the benefits of their products like Massimo Bread in
the term of quality, features, style and design. Massimo bread benefits consumer by providing
healthy menu which reaches the nutrition of food. Massimo bread is made from carefully
selected flour and wheat and baked to perfection – has no cholesterol, is filled with protein
and polyunsaturated fatty acids (good for the heart) and contains vitamins and minerals.
Massimo bread close competitor is Gardenia bread. Both of the company have bread product
but there are slightly different in the taste. As Massimo bread have more various type of
bread compare to Gardenia. In order to add customer value, product quality which is the
appearance of a product is vital. Massimo bread have contain wheat germ into the bread . In
addition, wheat germ is a storehouse of minerals, loaded with contents of vitamins E, Omega-
3 fatty acids, natural fibre, protein, B1, B2, B6, Magnesium, phosphorus and zinc. Wheat
Germ is indeed a food source with many health and benefits.
Branding

A brand is a name, term sign, symbol or design, or a combination of these, that identifies the
maker or seller of a product. Massimo is well renowned in the world of Italy fashion and the
very name in itself denotes luxury and prestige, synergizing traditional style with modern
design. Similarly, the Massimo bread is in the class of it’s own superior quality bread bakes
combining the tradition of the Italian human baking passion with modern days technique to
ensure that is always retain that authentic fresh from the oven taste.

Packaging

Packaging involves designing and producing the container or wrapper for a product. The
Massimo Sandwich Loaf with Wheat Germ are packaged in two size, 400g and 600g. Halal
policy at The Italian bakers Sdn Bhd, we are committed to provide and produce safe quality
products, which meet consumer needs as well as comply with Halal guidelines consistently.
Product Support Services

Product support services is to enhance customer service and satisfaction, safeguard against
competition. Massimo bread Carelines is 1-800-22-6688. They also provided a contact e-mail
address for any question about their product. E-mail is
customercare@theitalianbaker.com.my . If customer is passionate about delivering the best
things in life, feel free to contact The Italian baker via phone or email. The postal address is
PT 45125, Batu15 ½ Sungai Pelong, 47000 Sungai Buloh, Selangor Darul Ehsan, Malaysia

3.3 Major Brand Strategy Decision

Line extension Strategy

Brand Positioning

The statement of Massimo bread is “To strengthen our leadership position in our core
business in Malaysia, expand regionally for further growth and invest in related activities for
greater synergy and increase shareholders value, in a socially and environmentally
responsible manner through management excellence”. Vision statement is “To be a market
leader in our core business reputed for our sustainable quality products and service.”

Brand Name Selection

Massimo bread, a trusted brand in Malaysia for many years, provides consumers with quality
and superior-tasting products. Massimo is chosen to be the brand name for the entire product
with the tag line “Wholesome Goodness Maximum Satisfaction” Our range of spreads and
dressing is made from the finest ingredients that bring out the best taste of food. Massimo
bread champions the return of families to real food – away from the convenience of instant
and artificial junk food. The goodness of real food comes from fresh wholesome ingredients.
Massimo bread is real food that is carefully prepared for the family.

Brand Sponsorship

Massimo bread has carry out one of the brand sponsorship which is manufacturer’s brand.
The Italian Baker has produces Massimo bread products under the Italian Baker brand.
Brand Development

Massimo Bread is using line extension strategy in brand development. Massimo Bread extend
their product to new forms, colour, sizes, ingredient and flavours to attract more consumers.
Massimo Bread not only existed in one flavours. In fact, Massimo bread is available in many
different flavours. For an example, Massimo Sandwich Loaf with Wheat Germ, Massimo
Fine Wholemeal Loaf, Massimo White Sandwich Loaf, Besides, Massimo 100% Whole
Wheat, Massimo Cream Rolls, Massimo Chiffon in A Cup. Besides, Massimo bread comes
out with different flavors and types in order to fit up with the needs and wants of different
group of market. This strategy helps Massimo Bread increase sales because this gives
customer a lot of choice to choose until customer are delighted and success create customer
value.
4.0 Price Strategy

Oligopoly Competition Market

The Italian Baker, Massimo’s produces company is belongs to Oligopolistic

Competition market. Oligopolistic Competition have a few of characteristics, which are few
seller, goods may be uniform or non-uniform, high barrier to entry and sensitive to
competitors’ price.

Since there few sellers in the Oligopolistic Competition market, Massimo may earn
more profit from the market. Massimo competes aggressively with other major competitors in
the market which is Gardenia and High 5. In Malaysia have 3 main bakeries, which is
Massimo, Gardenia, and High 5 which produce bread product, the consumer will choose the
brand of bread according to the quality they perceive. For example, 3 of the main bakeries
has common product to fight which is the cream roll series, whole wheat bread series, and
Fine wholemeal Loaf series.

Besides, Italian Baker sold non-uniform goods in the market. The Italian Baker not
only produces Massimo Sandwich Leaf, it’s also having Massimo Fine wholemeal Loaf,
Whole Wheat series, cream roll series, and the Chiffon in the market for sale.

Next, there are high barrier to enter oligopolistic competition market which means
new firm is hard to enter the oligopolistic competition market because of high cost or high
technology. The company operates in oligopolistic competition market like The Italian Baker
needs a high cost and high technology to produce its bread product with less time and big
amount of them.

Lastly, the companies or firms operate in oligopolistic competition market are

sensitive to competitors’ price. If The Italian Baker’s competitors slightly decrease their
product price, it may course The Italian Baker’s sales must be influence negatively. To solve
the problems, The Italian Baker has to always take attention to their competitors’ price so that
they may take action immediately.
4.1 New Product Pricing Strategies

The Italian Baker is using market penetration pricing and economy pricing as the new
product pricing strategies. Market penetration pricing is a pricing technique which set a
relatively low initial entry price, regularly lower than the eventual market price. This strategy
only works if the expectation of the customers is going to switch to new brand because of the
lower price. The Italian Baker will have sustain market growth and increase in market share if
the market for bread must be highly sensitive towards the price,

Massimo White Sandwich which produces by The Italian Baker are set the price at
RM3.40, but for Classic White Bread which produces by Gardenia are set the price at
RM3.70. In this case, we can see that The Italian Baker is using market penetration pricing
because the bread produce by The Italian Baker are cheaper than Gardenia. This is because
The Italian Baker wants to attract more customers by selling the product cheaper than its
competitors, and may create some of the long-term customers to support their product.

Massimo is using the economy pricing, which is use by a wide range of businesses
including generic food suppliers and discount retailers. But the technique may be dangerous
for small businesses. This is because the small business is lack of sales volume compare to
larger company. The smaller company may struggle to generate a sufficient profit when price
is too low.

Economy pricing used by The Italian Baker is because it aims to attract the most
price-conscious of consumer. The Italian Baker will minimize the cost of the businesses
associated with marketing and production in order to keep product in the low-price if used the
strategy of economy pricing. In conclusion, The Italian Baker allowed their customers
purchase the products they need without frills.

When a product produce by The Italian Baker is launched in the market, The Italian
Baker will follow economy pricing strategy to set a low price for a brand-new product to
attract most price-conscious of customer. It makes economic revenue layer by layer from the
market. The companies can earn more profit even though few sales.

The products which produces by The Italian Baker is Massimo Sandwich Leaf,
Massimo Fine wholemeal Loaf, Massimo Whole Wheat series, Massimo cream roll series,
and the Massimo Chiffon in the market for sale. These bread products are successfully win
the market with lower price compare to Gardener and High 5 bread product. This is because
there are a lot of price-conscious consumers in the market and the price-conscious consumer
will only purchase the product with lowest price.

Product Price
Massimo Bread with Wheat Germ RM3.69

Massimo White Sandwich RM3.40

Massimo 100% Whole Wheat RM3.50

Massimo Cream Rolls Series RM0.85

Chiffon in A Cup RM1.05

Massimo Fine Wholemeal RM2.80

4.2 Product Mix Pricing Strategies

Product Line Pricing Strategy

Massimo company used the product line pricing strategy in setting its price of the
products. Its mean that Massimo Company has several products such as Massimo Bread with
Wheat Germ, Massimo White Sandwich, Massimo 100% Whole Wheat, Massimo Cream
Rolls Series, Chiffon in A Cup and Massimo Fine Wholemeal. The range of these product
price are range from RM0.85- RM3.69 (Table 1). Each types of bread have different price
because the ingredient of each bread is slightly different. Massimo Bread with Wheat Germ is
sold in highest price while Massimo Cream Rolls Series is sold in the lowest price.
4.3 Price-Adjustment Strategies

The Italian Baker use segmented pricing as its price adjustment strategies. The Italian
Baker will adjust their basic prices to allow for differences in customers, products and
locations. In another term, The Italian Baker adjusting prices to account for different
segments. The Italian Baker sells the bread product at different prices in different segments,
even though the price-difference is not based on differences in costs.

Effective from 4th April 2016, The Italian Baker has adjusted the price of their bread
products. GST (Goods and Service Tax) has been introduced to Malaysian citizen on 4th April
2015 and The Italian Baker was one of the firm that has to provide the tax of 6% to the
government. Due this pricing segments, The Italian Baker could not bear the GST themselves
and forced to readjust their product prices to minimize losses on 4th April 2016, after a year
GST was introduced to the market. After readjusting the price of The Italian Baker breads, a
loaf of Massimo Sandwich with wheat germ will retail at RM2.65 (small) and RM3.70
(long), an increase of 15 cents and 20 cents respectively.

4.4 Public Policy and Pricing

If the market of bread has change because of product price, The Italian Baker has to
fix the price without talking to competitors such as Gardenia and High 5. The Italian Baker
may disclose its company weaknesses and threats to its competitors. Besides, The Italian
Baker has to sell its bread product in lower price in order to attract more customers and
change their brand use from other competitors to The Italian Baker itself. The Italian Baker
may be gaining long-term profit because of putting competitors out of business.
5.0 Placing Strategies

5.1 Marketing Channels/Distribution Channels

Headquartered of Massimo is located. They distribute their products in around

Malaysia. They use indirect sale market for Massimo which is retailer channel. They have
their own personal warehouse and factories around Malaysia. Their products are indirectly
ported to the retailers which will sell them out efficiently.

The role of marketing intermediaries for Massimo is to transform the assortments of

products made by producers into the assortments wanted by consumers. Members of the
marketing channel perform their respective roles. There are some way to help to complete
transactions which are information, promotion, contact, matching and negotiation. There are
also others help to fulfill the completed transaction which are physical distribution, financing
and risk taking. Massimo gathers and distributes marketing research about their products in
order to get feedback from the customers to make changes. Their retailers always try to
please their customers and maintain relationship with them instead of earning profits. By this
way, the customers will loyal to them. After retailer made their orders, they will transport the
products requested through railway roads. Massimo’s financial department acquiring and
using funds to cover the costs of channel work to ensure the profitable revenue. For risk
taking, retailers are responsible for all unexpected things such as accidents, being rob and
fire.

Supply Chain Management

Retailer Customer
Suppliers
Company (7-Eleven,
(Massimo) Jusco Max
Valu,K-Mart
and so on)

Reverse Logistics
6.0 Promotion Strategy

6.1 Integrated Marketing Communication

(i) Advertising

Any paid form of non-individualized presentation and promotion of thoughts, ideas,

goods, or services by an identified sponsor is referring to advertising. Milo as a mature
product has used the reminder advertising as its objective which helps to maintain the
relationships with customer and keeps consumer’s confidence about the product.

Massimo bread uses the mass media like television and radio which is the major and broadly
used media types to advertise their product. It can be defined as the most efficient method for
advertising since the mass media owned quite a few numbers of potential audiences. The
advertisement on television or radio plays during the intervals will help to attract the attention
of the audiences.

Printed media such as newspapers and magazines plays a symbolized long standing
way of advertisement. Massimo bread sponsors many columns in different types of
newspaper and magazine in order to create a strong impression in the mind of the readers.
Newspaper, a reading material published daily occupied an important space in most of the
persons’ daily life and offered a variety of ways to target a particular reader.

Internet is a wide range media for advertising in this modern time. It includes website,
BlogSpot, and social media like Facebook, Twitter and more. This method of advertising had
been strongly preferred by most of the companies as it requires a very low cost. Massimo
owned their website, https://www.theitalianbaker.com.my/ which included the complete
information about its product.

(ii) Sales Promotion

Sales promotion is one of the mix promotions which are short period incentives to stimulate
the purchase or sale of the product. Massimo bread often develops this sales promotion to
attract more consumers to purchase their products. For example, a 400g Massimo Sandwich
with Wheat Germ cost RM2.05 and the 600g size is cost RM3.10 which is more economic
price is a favour for the customers
7.0 RECOMMENDATIONS

There are few ways for Massimo to maximize their profit. With the given competitive
advantages, Massimo could increase its profit with a few simple ways. One of them include
product development. Massimo can modify their existing products by changing current
ingredients of bread to a healthier one. They can produce healthier bread compared to the
current one by focusing on the ingredients of bread other than preservative which is the level
of calories. Massimo can produce bread that is healthy for consumers by reducing the level of
calories in Massimo bread. This allows Massimo to further improve their sales by gaining
more customers that practicing healthy lifestyle and is able to fight against their current
strongest competitor, Gardenia which are having a lower level of calories per slice of their
bread currently than Massimo.

Another way for Massimo to increase profit is that Massimo can expand their
business throughout Malaysia and they can also explore their new market by implementing
market development strategy. Massimo can try to explore their business to countries such
as China and Vietnam that have high population in their country. If the country has high
population, the chances of the citizen of the targeted country will purchase more products
from Massimo is generally higher and if Massimo is able to sell their bread to other countries,
they will generate as much profit as they can. The brand equity of Massimo will also become
better comparing with other bread producer in Malaysia because foreigner knew about
Massimo in their country. When Massimo has successfully developed their market
throughout other countries, their profit will gradually increase as they are targeting more
customers instead of just Malaysians customers and Massimo will be getting easier to
develop their market in other country in the future.
8.0 CONCLUSION

As conclusion, The Italian Baker is a successful Malaysia bakery chain place at

Selangor. The Italian Baker also subsidiary of Federal Flour Mills Berhad. The product
chosen from The Italian Bakers Sdn Bhd is Massimo Bread. It has been classified as
consumer product because usually final consumer bought Massimo bread for consumption
not for business purpose.

The Italian Baker has strong marketing mix strategies, which are product strategy,
promotion strategy, price strategy and place strategy. With contents of product strategy,
Massimo have play well in product classification, product and service decision, and product
support service, and major brand decision, which having the brand position, brand name
selection, sponsorship, and brand development.

Massimo have played well in price strategies, which have new pricing strategies,
product mix pricing strategy, price adjustment strategy and public policy and pricing strategy.
Massimo also have well place strategy which contents the market distribution channel,
retailing and wholesaling. With promotion strategy, Massimo has better advertising and sales
promotion to increase its revenue.

Massimo have two market opportunities to identified need, want, or demand trend that
a firm can exploit because it is not being addressed by the competitors, which is availability
of new segments and expanded their bread business to the whole country and ability to
explore their new markets.

The Massimo may maximize its profit by introducing a new product to the market
which target mainly on elderly customers or customer’s desire for high nutrition, expanded
their business throughout Malaysia, and launched its very own home-grown and locally-
baked sandwich loaf with wheat germ.
9.0 REFERENCES

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http://www.giant.com.my/about-us.aspx

Market segmentation. BusinessDictionary.com. Retrieved October 30, 2017, from

http://www.businessdictionary.com/definition/market-segmentation.html

Reporters, F. (2014) Klang Valley’s future Free Malaysia Today. Retrieved April 9, 2016,
from http://www.freemalaysiatoday.com/category/opinion/2014/02/13/klang-valleys-future/

6-Segmentation Table (2010) Fresh breads. Retrieved November 3, 2017, from

https://www.dlsweb.rmit.edu.au/bus/mk100/html/6-segmentation_table.html

Fardhiyanti, G. (n.d.). Marketing decision making. Retrieved November 06, 2017, from
http://www.academia.edu/26173303/marketing_decision_making

(n.d.). Retrieved November 06, 2017, from

http://www.theitalianbaker.com.my/massimo_bread_with_wheat_germ.php