FACULTY BUSSINESS AND ENTREPRENEURSHIP

AFT 1053 MARKETING

GROUP ASSIGNMENT – MARKETING PLAN

GROUP TUTORIAL : L8T4

LECTURER NAME : MISS NURUL HASLIANA BT HAMSANI

GROUP MEMBER :

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1. WINNIE OOI YE SIM

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TABLE OF CONTENTS

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Acknowledgement

First and foremost, we would like to thank our lecturer, Miss Nurul Hasliana for

advising and supporting all of us continuously during development on studies in

marketing plan. Without her supervision and constant help in this assignment would not

have been possible.

Apart from that, we also would like to thank to our team members by committing

in discussion, analysis, searching to produce the paper work and cooperating in

presenting the marketing plan assignment in the subject AFT 1053 Marketing.

Last but not least, we thank to out university Malaysia Kelantan provided

resources in library to easier our way to research and convince us to complete this

assignment with complete facilities in school .

1. EXECUTIVE SUMMARY

The history of Oldtown White Coffee (OTWC) began in 1999, the co-founders and

Executive Director are Mr Goh Ching Mun and Mr Tan Say Yap. Nowadays, Oldtown

White Coffee is the largest kopitiam restaurant chain and classic coffee shop in

Malaysia. Its main headquarters is in Ipoh, Perak, Malaysia.

With the love and passion to make and serve good coffee to household and food

& beverage service industry line, they success created their own blend of Oldtown 3-in-

1 instant white coffee. Oldtown White Coffee have also expanded and export their 3 in 1

White Coffee into 13 oversea counties which included Hong Kong, Singapore, China,

India and Indonesia. In 2005, Oldtown expanded into the food service sector with the

opening of a chain of café outlets based on the traditional Ipoh coffee shop setting and

ambience under the brand name "Oldtown White Coffee". In late 2009, the first oversea

Oldtown White Coffee café was set up in Singapore.

After the initial oversea market, they also commercialized products in United

States, Canada, UK and other countries as shown in Figure 1.0. Now United Kingdom,

United States and Australia are selected as the potential markets for the company’s

expansion plan to start up new overseas chain shops.

Figure 1.0

Currently, Oldtown White Coffee outlets in the peninsula of Malaysia have

achieved 100% Jakim Halal recognition and certification in their products to make futher

into the halal market. In a particular Oldtown White Coffee café outlet, they not only sell

the coffee but also provide Malaysia’s local traditional food such as Nasi Lemak, Hor

Fun that would not found in western style coffee shop like Starbucks and Coffee Bean.

2.1 MARKET DESCRIPTIONS

Oldtown White Coffee café is a famous chilling place for younger, business

partner and family. This is because the places provide good taste of white coffee and

customer will also able to taste the pure and oldest white coffee, toast, curry mee, Nasi

Lemak and also Ipoh chicken mee( Hor Fun). For people that used to have breakfast,

usually they will drop by to the shop and have a taste with the coffee. This is because

the shop has a good environment and good serving as well, importantly the drink and

food are really in good.

In Malaysia, the target segmentation is categorized into 30% of students, 40%

worker and 10% of senior citizens and 20% of family. The needs between these

segment groups are diverse. Students are seen as low income people, thus menu items

include affordable prices for them and the free Wifi is also one of the factor that

encourage them to visit Oldtown White Coffee café. This is because they can surf the

internet to do their assignment. While workers are considered as income earners and

come in groups and have limited time to enjoy their meal. On the other hand, senior

citizens come in for the purpose to spend their leisure time and enjoy the taste of coffee

and the traditional food. While the set menu are provided for family which provide them

the variety food with acceptable price.

2.2 PRODUCT REVIEW

Oldtown White Coffee café is very convenience to consumer who can taste the

variety of local traditional food in a place. Consumer also can take a break from their

everyday hustle and bustle with a relaxing time at Oldtown White Coffee café. It is also

a relax and savor good times with the beloved ones with all the favourite drinks.

The key product of the Oldtown White Coffee café is the coffee product line.

They offer 3 different coffee classes which is Oldtown White Coffee, Oldtown White

Coffee Hazelnut and Oldtown Nan Yang Coffee O. The original white coffee is come

from Ipoh. They serve the fresh and true product to the customers and make sure

customers feel the best taste from the white coffee and bring out great memories and

set the atmosphere for joyful moments and happy times.

Besides that, the Oldtown White Coffee café also sell the Malaysia’s food such

as ‘Rendang Chicken Rice, ‘Chicken Hor Fun’, ‘Nasi Lemak’ and so on. While the local

flavors and sweet delights include ‘Signature toast’, ‘Savoury starter’, desserts and

others. Beverages included the series of origin white coffee, old town iced cold coffee

and tea, smoothies and so on.

Target Segmentation

Students

Workers

Family

Students 30 %

Workers40%

Family20 %

Senior Citizens 10%

Last but not least, in their café chain also provided set menu, from opening to

11am have Mybreakfast set, 11am – 3pm have Mylunch Set, 3-6pm MyTea set, 6-9pm

Mydinner set and 9pm to clossing time have Mysupper set.

The below pictures are famous food and beverage that customer prefer to order.

Oldtown White Coffee is the signature café that customer’s favorite drinks.

Nasi Lemak is the local traditional food in Malaysia.

Hor Fun is the Ipoh famous noodle that prefer in the Chinese segmentation.

2.3 COMPETITIVE REVIEW

Even though there are many well established brand shops in the current market

such as KFC, McDonalds, The Coffee Bean, it’s relatively to say that the main

competitor for Oldtown White Coffee café is Hometown Hainan Coffee. Hometown

Hainan Coffee product line almost same with Oldtown White Coffee café but the only

one not same is idea of selling.

Old Town White Coffee have pricing advantages over his rival in the market with

it international standard. Compare to Hometown Hainan Coffee, OTWC have

established their outlet not only at Malaysia but oversea like Hong Kong, Indonesia and

Singapore and so on, this means that their product standard is in accordance with

international standard and acceptable by oversea country. Other than that OTWC also

stronger reputation than Hometown Hainan Coffee, OTWC have been invited to EXPO

Shanghai at 2010 to representative Malaysia to promote their product, it will be

promoted to be whole world and make their business success than Hometown Hainan

Coffee that just only having their business in Malaysia.

Old Town White Coffee also have competitive advantages over their outlet place,

OTWC they aim to establish their café at high people traffic location and it consists of

many outlet in many country other than Malaysia. OTWC customer is more convince

and easy to get to their outlet than Hometown Hainan coffee café. OTWC branches

often establish at more strategic places such as shopping mall, food and beverage shop

let area, peak working and student area so it take over the HHC which is at far-off area.

OTWC establish their branches not only in Malaysia but also oversea such as Hong

Kong, United State , United Kingdom and so on it means that when some Malaysian

that staying at oversea want to try or eat Malaysian food they can visit to branches at

oversea.

Old Town White Coffee have some special set menu that didn’t provide by their

rival Hometown Hainan Coffee, Although OTWC café ala carte item will have higher

price than their rival but OTWC café have release Set Menu meal to their customer.

This set menu is from time to time, it consists of four section: My Breakfast, My Lunch,

My Tea and My Supper. This set menu is to help customer easy to choose their food

and beverage during that time and provide cheaper price if order in set, it gain higher

competitive advantages over Hometown Hainan Coffee which just contain of normal

and original menu.

Old Town White Coffee also consists of difference type of strategic in selling their

business, they not only selling their coffee on their café but they also sold the instant

pack of coffee so that they can let their supporter not only can enjoy their coffee at their

café but also can enjoy at their house. This may gain more market share compare with

those café do not have instant pack of coffee, because when the customer buy the

instant pack of coffee they will have it at home and other competitor business will

reduce.

3.0 SWOT ANALYSIS

Strengths

Oldtown White Coffee maintain their company growing by having high profit

compare to other coffee café in Malaysia, This show that they have higher market share

value than their rival.OTWC café Offer variety of food such as Asia food and Western

Breakfast, it shows is speciality and provided many choices for their customer. OTWC

launch their business way by having franchise, so that it help their company more easy

to expand not only in Malaysia but also oversea, other than that it has graters coffee

café outlet throughout Malaysia, Singapore and Hong Kong.

WEAKNESS

Oldtown White Coffee is too narrow their production line, OTWC are just only

depends on their coffee product but does not develop or diversify their product. OTWC

lack of innovation in their product and they carrying slow development in their product. It

may cause their business grow stop on the stages because of no innovative idea. Other

than that OTWC have too many branches so that may cause their food control quality a

problems, it is also hard for them to train their employee to cook the exactly same taste

food in certain outlet so It will bring down their quality of café.

OPPORTUNITIES

Oldtown White Coffee take the opportunities as Malaysia is a part of ASEAN

country, It help their product to develop into global market by introduction through

ASEAN. In contract of ASEAN country reduce the limitation of OTWC to develop in

oversea country so that it easier their business to establish to global compare with

business organization which is not from member of ASEAN country. OTWC is able to

rebrands and compete with other company using the same material, they can sell huge

quantity of their coffee bean to smaller scope of company, it will help their sale increase

by having this business modal.

TREATS

OTWC face the limitation for them expend to market such as US and Europe

country because have too strong rival such as Starbucks, Starbucks having higher

reputation in world and higher amount of capital to expand than OTWC. OTWC facing a

treat which is having very high product imitation this is because they are using coffee

which is very common, so it may cause them to have many competitor and reduce their

market share in the global.

4.0 OBJECTIVE & ISSUES

Goal

• Is to let everyone to enjoy every sip authentic Malaysian Ipoh White Coffee anytime

and anywhere.

Vision

• To be Asian Pacific’s Leading White Coffee producer providing high quality

products to customers globally.

• Old Town White Coffee vision is mostly highlighted to promote their unique Taste and

to deliver their best. To promote our unique Malaysian Taste – the authentic Ipoh White

Coffee and Continue White Coffee Legacy through continuous improvement and

innovation that exceeds customers expectation”

• “As Market Leader, we take pride in distinguishing ourselves to be ahead

of the pack. By setting precedence, we have made a standard that equals

excellence, pushing other brands to do the same”

• “We strive for continuous improvement, incorporate innovations and

technology in our commitment to create customer value in our both products and

services”

• “Aligned with transparent policies and achievable targets, together with

our core values, we are able to move forward as one responsive team and deliver

our best””

Mission

• To promote the unique Malaysian taste the authentic Ipoh White Coffee.

• Standard that equals excellence

Issues

• Oldtown White Coffee does not serve any non-halal food products or alcohol. All their

supplies are provided by suppliers with Jakim recognized certification, who are required

to produce valid halal certificates for every item supplied .

5.0 MARKETING STRATEGY

Old Town’s marketing strategy is based on the distinguished needs between

segment groups are diverse. Students are seen as low income earners, thus menu

items include acceptable prices for them. While workers are considered as income

earners and come in groups and have limited time to enjoy their meal, this also has to

be taken in to account. Local delicacies are included in the menu to suite the likings of

old timers, while set menu’s are provided for families.

Positioning

Old Town always advertise their product with slogans like “Malaysia’s No.1

confirms best White Coffee”. They also expanded from small spaces and only selling

few selection of foods by serve more variety in food and beverage , upgrading services ,

and creating nostalgia as well as being chic and contemporary to enhance experience .

nowadays new customers easily remember Old Town is associated with White Coffee

and it has been observed that new customers order classic drinks ,white coffee.

Product strategy

Old Town serve the original coffee from Ipoh . They serve the fresh and the true

product for customers and make sure customers feel the best taste from white coffee .

The food line of products has local , classic and sweet delights alongside hot and

cold beverages . Old Town offer wide variety of products , food , and beverages for their

customers .

Examples of their product is OTWC 3 in 1 blend , Nan yang White Coffee ‘O’ ,

simple pure white coffee easy to drink product . Examples of food line product for

classic dishes for the customers who need a normal component meal just like “Rendang

chicken rice “ , “chicken hor fun “ , “NasiLemak “ special and so on . Local flavor and

sweet delights include “Signature toast “ , “savoury starter “ , desserts and others .

Beverages include the series of origin with coffee , old town iced cold coffee and tea ,

smoothies and so on .

Old Town also established as a brand itself and have attractive packaging as their

product strategy .

Pricing strategy

Price does affect customers’ choice on products or services . Customers are

willing today more because they price means higher quality one brand offer . In brand

competition , the best price any brand can offer is important yet they have to create bad

consequences for long-term . The higher price means the higher quality one brand

offers .

Price being key and initial factor for customers would consider .Old Town pricing

is reasonable and acceptable .The example price that Old Town offered for customers

is White Coffee is RM2.00 , Prawn Mee RM6.90 and Noodle Set is RM4.90 .

Moreover the promotion packages are economical compared to ordering single

items from the menu . A very good example is the breakfast set which includes one

coffee , half boiled egg and toasted wholegrain bread with golden melted butter, priced

at RM4.50 add one more ringgit and the customer can choose a drink either white

coffee or ice lemon tea .

More pricing strategy was to be seen as reviewed the promotions . The 3pm-6pm

promotions offers 20% discounts on certain items , while other pricing promotions

include the “buy one get one free” and lower price being offered to student .

Distribution strategy

Distribution could be defined as the process of getting products and services from

the firm into the hands of customers (Griffin & Pustay 2010, p500). Distribution is

another issue that need to be taken into consideration as the new company is trying the

expand in a national wide scale in the largest coffee market in the world. For many

products such as the authentic white coffee which are produced in the Malaysian

manufacturing center could to be transported to the US by airplane to reduce the

international order cycle time. They regularly exporting quality white coffee to worldwide

and ensure the products are widely available .

Marketing Communication Strategy

The marketing communication strategy for Old Town White Coffee is raising

awareness of the product in target market is where sales begin, and this is where

marketing communications activities begin the selling process. With today’s multiple

channels for content to reach potential customers, the art and science of marketing

communications has become increasingly important. However, no company can be sure

they are using the most efficient media mix without creating a macro strategy that is

aligned with their overall strategic marketing direction .

Old Town make an advertising such as Old White Coffee 3 in 1 and Old Town

White Coffee-Marathon . By integrating all message in media , Old Town will reinforce

brand name and points of product differentiation . Research about media consumption

pattern will help advertising agency to choose appropriate media and timing to reach

prospects before and duration product introduction .