Research report

SCHOOL OF ARCHITECTURE, BUILDING AND DESIGN

FOUNDATION IN NATURAL BUILD ENVIRONMENT

PRESENTATION TITLE: A Comparative Analysis of 2 Businesses of Similar Industry in Different Geographical Locations

GROUP MEMBERS:

Names Presentation Roles

William Goh Ming Hann (0317949) Description of the history of the trade/business

Tan Ken Ric (0318631) Brief description of the business

Ong Chia Hong (0318459) Number of competitor and strategy used

Lim Jie Qi (0318313) Obstacle, nature of market and comparative table

Jeffrey Liew Jun Yi (0317951) Conclusion and recommendation

ENGLISH 2 (ELG 30605)

LECTURER: CASSANDRA WIJESURIA

SUBMISSION & PRESENTATION DATE: 2 DECEMBER 2014

1| P a g e F N B E A U G U S T 2 0 1 4 - E N G L I S H 2 ( E L G 3 0 6 0 5 ) W i l l i a m G o h M i n g H a n n ( 0 3 1 7 9 4 9 ) Tan Ken Ric (0318631) Ong Chia Hong (0318459) Lim Jie Qi (0318313) Jeffrey Liea Jun Yi (0317951)

TABLE OF CONTENT

NO TITTLE PAGES

1 Artistic cover -

2 Cover page 1

3 Table of content 2

4 Key summary 3

5 Description of the history of the trade/business 4

6 Brief description of the business 5-6

7 Comparative Analysis of the Businesses’ Competitive Traits 7-10

8 Recommendation 11

9 Bibliography 12

10 Appendices 13-26

11 References 27


KEY SUMMARY

So, we were given an assignment which is to compare 2 businesses of similar industry in

different geographical locations. After our group discussion, we chose bakery as our target. We

decided to compare 2 bakery shops which are located at Seremban and Klang Valley. After

doing some research, we decided to interview ‘Wonderbread Bakery and Café’ and ‘The

Carpenter’s Daughter’, which are located at Seremban and Subang. Before that, we did contact

the owners or the shops to ask for permissions for the meeting appointments. After completing

the analysis report, we found that ‘The Carpenters Daughter’ is more commercially successful

than ‘Wonderbread Bakery and Café’. At last, we would like to express our gratitude to Ms Jin

from ‘The Carpenter’s Daughter’ and Dato ‘ Azizah from ‘Wonderbread Bakery and Café’ for

their cooperation.


DESCRIPTION OF THE HISTORY OF THE TRADE/BUSINESS

TRADE: BAKERY

Bakery is the trade chosen for this research report. The bakery industry usually refers to grain-

based food industry. For example, grain-based foods include breads, cakes, pies, pastries, baked

pet treats, and other similar foods. Besides that, bakery also produces food to pets not only

human. (Coleman, 2003). Starting your own bakery is not that easy. There are many aspects

that we should consider. Before someone decide to operate a bakery. First, they will need to

perform some market research, locate a source of financing, and obtain the proper license.

Without a lincence, they won’t be able to open their own bakery shop. Meanwhile, if they do

not possess any knowledge of baking, you may want to retain the services of a experienced

baker or pastry chef. Besides that, they need to decide whether they want to offer a wide range

of products or focus on bread, pastries, cupcakes, or other specialties. (Jeremy Laukkonen,

2003). After that, they need to think about the advertising channel that they may use to get

their names out. For example, through the opinions, promotes and suggests from customers or

mass media like creating their own website. (Admin, 2011). Other than that, ingredients like

flour, eggs, and other baked items to produce baked food and equipment like oven, scale,

mixers and others are also an important factor to open a bakery shop. Their quality and price

should be taken into consideration. (Coleman, 2003) . In this research report, we are

comparing Wonderbread bakery and café and the carpenter’s Daughter in terms of business

style, strategies and also challenges they faced. However, business is evolving evryday. For

example, the bakery shop that we are comparing consist concepts of both bakery and café.

Also, they are the only bakery shop which has both concepts in their area which make them

very unique.


BRIEF BIO OF THE BUSINESSES

(A) WONDERBREAD BAKERY AND CAFÉ

The bakery shop that we interviewed in Seremban is ‘Wonderbread Bakery and Café’. This

‘Wonderbread Bakery and Café’ shop is located at No.84, Jalan S2 D33, City Centre, Seremban

2, 70300 Seremban. For ‘Wonderbread Bakery and Café’, they have no branches and they

currently have 4 workers. All of them are Malaysian and also housewives. The products that the

bakery is currently selling breads, cakes like birthday and wedding cakes. Besides that, they also

provide services like buffet area, meeting room and seminar room with audio visual facilities for

party, function and business meeting. The estimated number of customers that the bakery shop

has is around 24 people. The business was founded in July 2011 by Dato’ Hjh Azizah Idris.

Actually Dato’ Hjh Azizah Idris was retired in December 2010, so far before she retired she have

to plan for what to do next. So with some retirement benefit, she bought a shop and started

thinking what to do in the shop. So when she went around the world, she saw lots of beautiful

bakeries around the world, especially in Japan, Europe. She also loves beautiful cakes, breads

she wanted to be part of the society. Besides that, Baking is also her interest. Dato Azizah

started this business with capital around 600,000. Of course, business is slow. She believes that

the customer will see for itself that they have better environment, food and services. Recently,

She bought a small TV showing what is THEIR products our cakes. Because normally when

customers come, they wanted to see the cakes they have. So instead of showing them the

album, She put it in the USB and show them on the TV.


(B) THE CARPENTER’S DAUGHTER

The bakery shop that we interviewed in Klang Valley is ‘The Carpenter’s Daughter’. This ‘The

Cappenter’s Daughter’ shop is located at No.46G, Jalan USJ 10/1E, Taipan, Subang. Selangor,

Malaysia. For ‘The Cappenter’s Daughter’, they have no branches and they currently have 10

full time and 12-15 working part time. The products that the bakery is currently selling are

cakes and breads like sourdough, speciality bread, pastry, pie, tart, scone, soft bun and others.

Besides that, they also provide services like takes bookings, good for groups or parties, catering

and table service. The estimated number of customers that the bakery has is around 26 people.

The business was founded in 2011 August 01 by Ms Jin Ling. Before that, Ms Jin owns an

organic shop in Ampand. Due to some licencing problem, she had no choice but to change

locations. She managed to found this place in Subang and saw that there is a potential for this

kind of business to do so she did it. Ms JIn started the business with around 300,000 capitals.

After developing her baking skills and creative on making differences on her products, she

managed to renew the menu in her bakery shop from only 1 page to 9 pages nowadays. So, as

you can see, her business is growing and slowly making money.


Comparative Analysis of the Businesses’ Competitive Traits

(A)Number of competitor and market share of the businesses

In Seremban, even though there a few bakery shops in the area, Dato Azizah never see them as

a competitor. She just do business as usual, if people prefer to go to her place then they will go

toher place. Because her bakery shop have 4 in 1 in 1 building. Her bakery shop have meeting

room, café, bakery and buffet area. Nobody in the area has all this besides her. The market

share of ‘Wonderbread Bakery and Café’ is small as it is still a small and slow business as Dato

Azizah claimed. Meanwhile, in Subang, there are 8 bakeries within the area. Most of them are

still running the typical kind of bakery which only sells bread while Ms Jin’s bakery shop is the

only one that have both bakery and café. Their product has the wide range of European bread

and soft bread while most of the other bakery are still selling Taiwanese and Japanese bread. So

in that sense, they are quite unique. So, she doesn’t really see them as competitor as she is the

only one that have both bakery and café. The market share of ‘The Carpenter’s Daughter’ is

small as it is still considered in early stages as they only starts for three and a half year. The

business is still growing slowly.

(B) STRATEGIES USED TO COMPETE WITH THE COMPETITOR

For ‘Wonderbread bakery and café’, the shop is small. Dato Azizah believes in words of mouth

for good food and good services. She can only cater for around 24 people. She also believes

that her strategy works on the customers. She is confident that her products and services will

convince customers to feel the foods are tasty and the services and environment makes them

comfortable. Because her business is small, her business runs and makes money in a very low

rate, however she is not ready to receive large group of people so she feels satisfies with the

result of her bakery shop right now. Once in a while, she would advertise through the Metro

Magazine. She also has her own website on Facebook. Besides that, Dato Azizah set her product

price base on her costings. She never sees others as competitor as they sell their own

differentiated products. Meanwhile, for ‘The Carpenter’s Daughter’, when Ms Jin started off


prior to all this, she was actually doing bread as a homebased supply to organic shops, selling

their organic breads. So organic baked items are always been her strong area. She didn’t come

out with this idea to compete with the rest. It’s just something that they have been carrying out

all this while. When they started at this location, She saw that there is a market for this kind of

organic bread, because of the capacity of this whole Subang area, it have a very large

percentage of population are very health conscious and willing to spend more something is

healthier. Besides that, Ms Jin does not really do much of advertising. A lot of it is actually

promoted and suggested by customers to their friends and people around them. She has a

website and a Facebook page to get her names out. Other than that, ‘The Carpenter’s Daughter

has their specific TCD membership privilege card. The card gives customers certain discount

when they come back and also allow them to collects point. Also their products are quite

different from the others. By using organic flour to make their products, the products will taste

different as the others, and this is why Ms Jin feels confident to persuade her customers to

come back to them or promotes for her.

(C) OBSTACLE FACED WHILE ENTERING THE MARKET

For ‘Wonderbread bakery and café’, the obstacle they face is the marketing stuff. Besides that,

the business for wonderbread bakery shop is slow. Their scale is also small. Meanwhile, for ‘The

Carpenter’s Daughter’, there is less customer when she first started as nobody knows her shop.

Ms Jin finds that it will easily take 8 months, a year or more to attract customer. But what she

finds is really challenging even up to now is the resources issue. Also, Ms Jin have no F&B

experience at all, it is very challenging because she is starting everything from scratch zero.

Even going down to very small detail like packaging, you don’t which source to take. It is very

challenging, but she struggle through. Even till now, as the business is growing, the challenges

she face would be different.


(D) NATURE OF THEIR MARKET

The bakery market for ‘Wonderbread bakery and café’ and ‘The Carpenter’s Daughter’ is that

they are both monopoly. In a monopoly market, it is hard to enter, people sell somewhat

differentiated or standardized product, so it causes them to have strong pricing power. For

‘Wonderbread bakery and café’, even though there are a few bakery shop in the area, but

‘Wonderbread bakery’ is the only one that has the concept of both bakery and café. They even

provide services like buffet, food catering and also cooking class. For ‘The Carpenter’s

Daughter’, it is the only bakery shop that has both bakery and café as well. Besides that, they

are the only bakery shop who sells European bread and they use organic flour to produce the

breads. Other than that, they also sell deserts.

(E) COMPARATIVE ANALYSIS SUMMARY TABLE

Wonderbread Bakery and Cafe (Seremban-Based)

The Carpenter’s Daughter (Klang Valley-Based)

Similarities0 Number of competitor 0

1 Number of founder 1

0 Number of branches/outlet 0

Bakery with cafe Type of business Bakery with cafe

DifferencesJuly 2011 When was it founded August 2011

4 Number of workers 10 full time , 12-15 part time

Children with parents Customers Adults aged around 30-40

Once a month New products for sale 4-5 products every 2 months

600,000, owns the Capital required 300,000, does not own the


building building (rent)

(F) CONCLUSION

Based on my analysis, I think that ‘The Carpenter’s Daughter’ bakery is more commercially

successful than ‘Wonderbread bakery and café’, even though they are similar as they are the

only bakery shop with both bakery and café in the different areas. ‘The Carpenter’s Daughter’

bakery provides more variety of products such as breads, cakes, desserts, drinks and cakes as

Ms Jin mentioned that they always updates their menu to allow their customers have more

choices in their shop. Besides that, the Carpenter’s Daughter comes out with 4-5 new product

every 2 months while Wonderbread bakery and café only once a month. Besides that, they also

sell different type of breads such as sourdough, specialty, scone, pastry & pie and others. Other

than that, ‘The Carpenter’s Daughter’ has more customers than ‘Wonderbread bakery and

café’. The Carpenter’s Daughter also has more workers than Wonderbread bakery and café.

RECOMMENDATION


For ‘Wonderbread bakery and café’ I think that they should do more promotion as well as

advertisement to get their names out not only rely to their customers to promote for them.

This will definitely increase the pace of their business since there is more people know about

their shop. Besides that, they should produce new products regularly so that the customers

won’t get bored. New products mean more choices to their customers so they can satisfy more

different customers with different taste, it will helps their business a lot. If the customers like it,

they will advertise for the shop, recommend it to their friends and family. For Wonderbread

bakery and café, they should hire more workers or chef. There are only 4 workers in their shop,

the efficiency is not there. They should cooperate and divide the number of workers to be

responsible on their own specific works. It will make the business to run more efficiency. For

example, some workers responsible on creating new products, the others can responsible on

serving customers, cleaning job, cashier and baking works. Since the works are divided

averagely, they can work more efficiently, more products can be created, quality and quantity

of the products will be raised so It will keep the customers fresh as they can try new things

constantly. Other than that, they could do a membership card for people to sign up as they can

get discount and collect point, this will attract them to return to their shop and become their

constant customers. Meanwhile, for ‘The Carpenter’s Daughter’, they should expand the bakery

shop so that more customers can dine in. Besides that, they should do more advertisement to

increase the familiarity of the bakery shop.

BIBLOGRAPHY


Admin. (2011 January 3). What you need to open a bakery. Retrieved from Start a Baking Business:

http:www. baking-business.com/what-you-need-to-open-a-bakery/

Coleman,P. (2003). What is the bakery industry. Retrieved from WiseGEEK: www.wisegeek.com/what-is-the-bakery-industry.htm

Jeremy Laukkonen. (2003). How do I start a bakery business.. Retrived from WiseGEEK: http://www.wisegeek.com/how-do-i-start-a-bakery-business.htm

APPENDICES


Interview notes

Wonderbread bakery and café


Contact details

Owner: Dato Hjh Azizah Idris

Address: No.84, Jalan S2 D33, City Centre, Seremban 2, 70300 Seremban

Contact no: 06 6017141

010 226 6420

Email: [email protected]

Website: www.wonderbread.com.my

Facebook page: facebook.com/WonderBreadBakeryCafe

Website

Facebook page

WONDERBREAD BAKERY & CAFÉ


mailto:[email protected]

http://www.wonderbread.com.my/

1) When did you start your business?

July 2011

2) Can you briefly tell us what triggered the idea for running the business?

Actually I was retired in December 2010 , so far before I retired I have to plan for what to do next. So with some retirement benefit, I bought a shop and I start thinking what to do in the shop. So when I went around the world, I saw beautiful bakeries around the world, especially in Japan, Europe. I love beautiful cakes, breads. I was thinking to be part of the society. Also take this as an interest.

3) What are your main products and services?

I aim more on cakes, bread. I have a buffet area upstairs with audio visual facilities. So, when anybody wants to celebrate or have a meeting and function, we have a beautiful place for them.

4) Who are your main competitors?

Even though there a few bakery shops in the area, I never see them as a competitor. I just do business as usual, if people like to come to my place then they come to my place. Because I have 4 in 1 in 1 building. I have meeting room, café, bakery and buffet area. Nobody in this area has all this.

5) What is the most effective way to advertise your products?

Once in a while, I advertise through the Metro Magazine. I have my own website on my Facebook.

6) What strategy are you using to compete with your competitors?

My place is small. I believe in words of mouth for good food and good services. I can only cater for around 24 people. I believe my strategy works on the customers. It’s only thing my business takes more time to process and I’m not quite ready to receive large group of people.

7) Who are your customers?

Normally are children with their parent. Because 2 doors away is a Yamaha music center, their parents will dine here for tea, pack some bread or cakes for their children. Less adults unless some businessman want to have business talk.

8) Is your pricing decision strongly affected by your competitors? Why or why not?

No, I set my price base on my costings. I never see them as competitor. We sell our own products.

9) How many branches and employee do you have?

0. Currently I have 4 employee. All of them are Malaysians. They are housewives.

10) How much capital is required to start this business?


Around 600,000

11) What obstacle do you face when you started the business?

Marketting stuff and of course the business is slow.

12) How often do you release new products?

Once a month.

13) What is your business’s most recent development?

We have a small TV showing what is our products our cakes. Because normally when customers come, they wanted to see the cakes that I have done. So instead of showing them the album, I put it in the USB and show them on the TV.

14) Generally, do you think it is easy or hard to enter this market? Why?

I think in Seremban especially our shop is quite out of the stream. The business is very slow.

Business premises

The outlook of the shop


The environment inside the shop

Products shown in the shop

Chocolate pancakes


Homemade wholebread


Cakes and desserts


The Carpenter’s Daughter

Contact details

Owner: Ms Jin Ling

Address: No.46G, Jalan USJ 10/1E, Taipan, Subang

Contact no: +6(03)8081 1218

016 2762811

Email: jin@ovenrun

Website: www.tcdartisanbakerycafe.com;

tcdbakerycafe.blogspot.com

Facebook page: facebook.com/thecarpentersdaughter.artisanbakerycafe

Website


http://www.tcdartisanbakerycafe.com/

Facebook page


THE CARPENTERS DAUGHTER

1) When did you start your business?

2011, before that I have an organic bakery in Ampang.

2) Can you briefly tell us what triggered the idea for running the business?

Baking is my passion. I always like to bake. My background is computer science. I was working as IT consultant prior to this. I was in many public agencies in my last job. It is an 180 degree change in my career.

3) What are your main products and services?

We have both bakery as well as café. When we first started in 2011, there is not many this kind of concept having both bakery and café together. After that, in the last two years this kind of similar concepts of business and services seem to be much over Klang valley. Before this is like the the traditional classic like BERRY’S either just bakery or café.

4) Who are your main competitors?

Within this area, there are 8 of us. Most of them are still running the typical kind of bakery, ours is the only one that have both bakery and café. Our product has the wide range of European bread and soft bread while most of the other bakery are still selling Taiwanese and Japanese bread. So in that sense, we are quite unique.

5) What is the most effective way to advertise your products?

I don’t really do much of advertising. A lot of it is actually word of mouth. I do have a website and a Facebook page to get my names out.

6) What strategy are you using to compete with your competitors?

I started off prior to all this, I was actually doing bread as a homebased supply to organic shops, selling our organic breads. So organic baked items have always been my strong area. We didn’t coming out this idea to compete with the rest. It’s just something that we have been carrying out all this while. When we started at this location, there is a market for this kind of organic bread, because of the capacity of this whole Subang area, we have a very large percentage of population are very health conscious and willing to spend more something is healthier.

7) How do motivate your customers to repurchase your products?

We have our TCD membership privilege card. The card gives customers certain discount when they come back and also for them to collects point. That is one way. Other than that, because our products are quite different from the others. We use organic flour and nobody else uses it. We let the product speak for itself.


8) Who are your customers?

Normally are people who aged 30-40.

9) How many branches and employee do you have?

0. I have 10 full time and 12-15 part time.

10) How much capital is required to start this business?

Around 300,000.

11) What obstacle do you face when you started the business?

It is normal there is less customer when we first started as nobody knows you. You will take easily 8 months, a year or more to attract customer. What I find is really challenging even up to now is the resources issue.

12) How often do you release new products?

We are quite slow in our R&D. One thing is of course of our resources we are quite of small group and we do have a lots of thing that we are doing right now. R&D right now is myself and one other chef. We have not been as aggressive as many other bakery. Around 4-5 products every 2 months.

13) What is your business’s most recent development?

I only run this business for 3 and a half year. It is natural that we start to do for the possibility of expanding the business. There is a lot potential for this business and for us to expand. But for us to do that, we need a bigger place.

14) Generally, do you think it is easy or hard to enter this market? Why?

Being a person who have no F&B experience at all, it is very challenging because we are starting everything from scratch zero. Even going down to very small detail like packaging, you don’t which source to take. It is very challenging, but I struggle through. As your business is progressing, is a total new challenges now. For initial, I only have one page but now I have three pages. So when your business is growing, your challenges is also different.


Business premises

The outlook of the shop

Customers and environment of the

shop


Products

Cakes and desserts

European breads ( made by

organic floor)


MINUTES OF THE MEETING

DATE: 10-11-2014 (Monday)TIME: 12pm-3pmVENUE: Library (level 5)

NAMES OF GROUP MEMBERS

TUTORIAL GROUP ROLE

William Goh Ming Hann Friday (10-12) am LeaderTan Ken Ric Friday (10-12) am SecretaryOng Chia Hong Friday (10-12) am Person to

contactLim Jie Qi Friday (10-12) am TransporterJeffrey Liew Wednesday (10-

12)amTime keeper

NO. ACTIVITY

1. Discussion

-Role of each group member and decide what business to do.-Search internet for potential interviewees (shop and location).-Questions for interview.

2.

Conclusion

-Chose bakery in Seremban and Subang as target.-Manage to find potential interviewees in Seremban and Subang.-Contacted Wonderbread bakery and café in Seremban and The Carpenter’s Daughter in Subang.-Manage to get permission and made appointment to interview Ms Jin from The Carpenter’s Daughter and Dato Azizah from Wonderbread bakery and café.


REFERENCES

https://www.facebook.com/WonderBreadBakeryCafe/timeline

http://wonderbread.com.my/index.html

https://www.facebook.com/thecarpentersdaughter.artisanbakerycafe/timeline

http://tcdbakerycafe.blogspot.com/p/blog-page_3.html


http://tcdbakerycafe.blogspot.com/p/blog-page_3.html

https://www.facebook.com/thecarpentersdaughter.artisanbakerycafe/timeline

http://wonderbread.com.my/index.html

https://www.facebook.com/WonderBreadBakeryCafe/timeline

Research report

Business

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