MMI3313 MEDIA INNOVATION DESIGN PROJECT 1

Situation Analysis

Nurul Huda binti Abd Razak 1102701462 Delta 1 Media Innovation

by

Situation Analysis

ice room

Chapter 1 PROJECT OVERVIEW

Situation Analysis

ice room

1.1 Introduction
Founded by an award-wining Chef and Innovative Leader, Mr Sia Boon Kong, Ice Room is a one of its kind lifestyle cafe that combines the casual and homely ambience of your friendly local coffee shop with the sophistication and modern image of a western style caf. The caf is designed to accommodate any occasion for anyone. Ice Room features a unique brand of ice cream that has the appearance of shaved ice but is really silky smooth in texture.

Ice Room is created by a family enterprise renowned for its expertise and skills in the culinary world spanning across 3 generations. With such a solid background, Ice Room promises a unique dining experience with its signature ice cream and fusion food and beverages.

Ice Room has been in the Malaysian market since 2009. The first outlet is in Nilai, opened on October 2009. Now that Ice Room has already opened up more than 10 outlets within Selangor, Klang Valley and Negeri Sembilan, it is now pretty much well-known among the locals. Ice Room speciality is its unique shaved snow ice creams. With over 10 different original flavors, their shaved snow ice creams are hand made and made to order. Other than just desserts, Ice Room also sells local delights as well as western cuisines.

Ice Rooms official website is available at www.iceroom.com.my. It contains all the information regarding the founder, the menus as well as the contact details.

1.2 Problem Statement and Issues

Malaysians rarely eat dessert at the end of thier meals. They are not prone to dessert eating like western cultures, where most of them most of the time will turn to dessert after having meals. With Ice Room being strongly known for its signature shaved snow ice desserts, people often think that that is only what they are selling, which is not true and more or less affecting their business. Besides desserts, Ice Room also serves signature comfort fusion food and beverages. From our local Malaysian delights such as Nasi Lemak, to special western cuisines like Chicken Chop and pastas.

Situation Analysis

ice room

1.3 Objectives and Aims

1.3.1 Objectives - To promote its signature shaved snow ice cream desserts as well as other nourishments on the menu that they offer. - To expose to public regarding the other items on the menu. - To analyze target audience and redefine the scope. - To find out what is the current market situation and potential. 1.3.2 Aims - To change publics perception on Ice Room and desserts. - To improve and enhance brand identity and awareness.

Situation Analysis

ice room

Chapter 2 PROJECT PROFILE

Situation Analysis

ice room

2.1 Product Name

2.2 Product Classification

Silky smooth and unique brand of ice shaved dessert.

2.3 Product Characteristics

2.3.1 Type Food and beverages. 2.3.2 Pricing Range From RM7.90 RM9.90 (desserts) From RM0.50 RM6.50 (hot & cold beverages)

From RM6.90 RM13.90 (local signature dishes)

From RM5.90 RM21.90 (western signature dishes)

2.4 Product Range

Ice Room Specials 6

Situation Analysis

ice room

Ice Room Specials

Milkshakes & Smoothies

Freshly Squeezed Juices 7

Situation Analysis

ice room

Hot & Cold Beverages

Appetizer & Cakes

Local Delights 8

Situation Analysis

ice room

Westerns & Pastas

2.5 Distribution
The distribution of the products is direct. Ice Room has numbers of outlet within Selangor, Kuala Lumpur and Negeri Sembilan area.

2.6 Product Life Cycle

Situation Analysis

ice room

2.7 The Brand

Ice Room features a unique brand of ice cream that has the appearance of shaved ice but is really silky smooth in texture. Although Ice Room is strongly known for their signature shaved ice desserts, it also serves local and delightful western cuisines. With great menus and ideally affordable price range, Ice Room is an ideal place for family and friends to be together and enjoy the casual and homely ambience.

2.8 Brand Image and Implication

Ice Room is a caf designed with casual and cozy ambience that serves variety choices of tantalizing sweet treats as well as fusion food and beverages. Ice Room has been in the market since 2009 but the market situation and business are highly competitive with other similar competitors.

2.9 Strength and Weakness

2.9.1 Strength

- The desserts are made with real ingredients and no artificial flavors. - High quality product at affordable and ideal prince range. - Lot of choices of food and beverages. - The food all constantly improvised.

- Numbers of outlets within Selangor, Klang Valley and Negeri Sembilan.

- Bad product display.

2.9.2 Weakness

- Lack of promotion and exposure of the product. - Advertising in printing and design are weak. - People thought it is a bit expensive.

- People are unaware of other food on the menu besides the desserts.

2.10 Advantages and Disadvantages

2.10.1 Advantages

- Numbers of outlet within Selangor, Klang Valley and Negeri Sembilan

10

Situation Analysis

ice room

area.

- High quality ingredients. - Variety choices. 2.10.2 Disadvantages

- Hand made and made ready to order. - Some of the competitors have lower product prince range. - Weak advertising and design awareness.

- Strong competition with other similar products.

2.11 Unique Selling Proposition (USP)

With Ice Room, there is always a room with good food and fun.

2.12 Promotional History and Advertising Schedule

Birthday Promotions 11

Situation Analysis

ice room

Birthday Promotions

Anniversary Promotions 12

Situation Analysis

ice room

Meal Promotions

Contest

Ramadhan Promotion 13

Situation Analysis

ice room

8TV Quickie Interview

2.13 Positioning Statement

Has been around in the market since 2009, Ice Room has always been known to its signature delightful shaved ice desserts. It is a caf designed with casual and cozy ambience that serves variety choices of tantalizing sweet treats as well as fusion food and beverages.

14

Situation Analysis

ice room

Chapter 3 THE COMPANY

15

Situation Analysis

ice room

3.1 Company Overview

Backed by the Loon Sing Restaurant Group, Ice Room is created by a family enterprise renowned for its expertise and skills in the culinary world spanning across 3 generations. With such a solid background, Ice Room promises a unique dining experience with its signature shaved snow ice cream desserts and fusion food and beverages.

One of the successor, Mr Sia Boon Kong began his journey into the culinary world at a young age of 20 by following in his fathers footsteps to be a chef. He then sharpened his business acumen by managing the familys restaurant business, Loon Sing, and later exploring other businesses in the culinary world. Being highly passionate about food, Mr Sia quickly excelled and became a star in the culinary world. His expertise and knowledge as a chef received due recognition time and again as he won many prestigious local and international awards in this field. His current position as Vice Chairman of the Malaysian Restaurant Association further affirms his status in the culinary world. He is also a much sought-after judge for international culinary contests.

3.2 Business Description

With such a solid background, Ice Room promises a unique dining experience with its signature shaved snow ice cream desserts and fusion food and beverages. With its one of a kind type of desserts and meals, Ice Room brings together and tighten up relationships among family members and friends. Always been known for its tantalizingly unique sweet treats, Ice Room also serves signature local and western cuisines to suits best all ranges of target market.

3.3 Company History

Ice Room is backed by the Loon Sing Restaurant Group. With a solid background and skills in culinary spanning across 3 generation, Ice Room is created. First Ice Room outlet was opened for business in October 2009. With more than 10 outlets within Selangor, Klang Valley and Negeri Sembilan, Ice Room is now pretty much well-known among the locals.

16

Situation Analysis

ice room

Ice Room

Restaurant & Cafe

Incorporation

Food & Beverage

Market Segmentation of Ice Room

3.4 Key People

3.4.1 Directors / Officers

1. Hew Choong Mun - Director 2. Sia Boon Kong - Director 3. Sia Boon Ming - Director 4. Koh Tuck Ken - Secretary 1. Sia Boon Chin 3. Sia Boon Lan

3.4.2 Shareholders / Members 2. Sia Boon Kong 4. Siew Keow Choo 5. Sia Boon Ming

17

Situation Analysis

ice room

3.5 Location and Subsidiaries

3.5.1 Headquarters Ice Room Sdn Bhd Lot 200-201, Jalan 6, Nilai Square, 71800 Nilai, Negeri Sembilan Malaysia. 3.5.2 Subsidiaries Kuala Lumpur 1. 10K3, Hutong @ Lot 10, Lot 10 Shopping Mall, Jalan Bukit Bintang 55100,Kuala Lumpur. 3. No 1,Lorong 6E/91,Taman Shamelin Perkasa, Off Jalan Cheras 56100, Kuala Lumpur. 1. No 45, Jalan Medan Pusat 2D, 43650 Bandar Baru Bangi, Selangor. 2. No. 30, Jalan Metro Avenue 2, Metro Kajang, 43000 Kajang, Selangor.

2. Lot D/0G/05, Block D, Plaza Mont Kiara, No. 2, Jalan Kiara, 50480 Mont Kiara, Kuala Lumpur. Selangor

3. G-18, Jalan Prima SG 1, Prima Sri Gombak, 68100 Batu Caves, Selangor.

4. No.27, Jalan PJU 5/20E, Pusat Perdagangan Kota Damansara, The Strand, Kota Damansara, PJU 5,47810, Petaling Jaya, Selangor. Negeri Sembilan 1. No 200-201,Dahlia Mall,Jalan Nilai Square 6, Nilai Square 71800 Bandar Baru Nilai, Negeri Sembilan. 2. No 52 ,Jalan Raja Aman Shah, 71000, Port Dickson, Negeri Sembilan.

3.6 Brands, Major Products and Services

Ice Room is a thriving food and beverages brand that is currently in progress to develope further in the market. They are hoping to upbringing the image of dessert
18

Situation Analysis

ice room

especially ice-based dessert to local community of Malaysia.

They focus more on customers to ensure customers satisfactions and loyalty. Through their official website, customers can register as registered user to participate in contests as well as get instant updates of the latest deals. Besides website, customers are kept updated through social networks such as Facebook and Instagram. Feedback from customers are much appreciated by Ice Room and it is important to maintain brand loyalty and customers satisfactions.

3.7 Corporate Vision

To be able to deliver the best customer experience and to create desireable high quality and affordable food.

3.8 Corporate Mission

1. To ensure that each customer receives warm, professional, friendly and courteous services. 3. To provide excellent quality experience to customers.

2. To maintain a clean, comfortable and well maintained premises for our guests and staff.

3.9 Current Promotional Strategy

The latest promotional made by Ice Room is currently on its Facebookk page. Most of the promotions and events are published online on the main official website as well as official Facebook page. Printed media are mostly published in the outlets and local newspapers. They are currently in progress to develop an official Instagram account to keep customers up-to-date with the latest meals promotions and events. Currently, customers are voluntarily upload photos of Ice Room products and share with the realtives and
19

Situation Analysis

ice room

colleagues.

3.10 Current Marketing Objectives

3.10.1 Short term objectives - To ensure that people know about Ice Room not only just for its desserts, but also for its other food. 3.10.2 Long term objectives - To be well-known throughout Malaysia as the best restaurant that serves the best dessert in the country.

3.11 Media Expenditure

Through its official website, Ice Room create contests for customers to participate and win prizes. All these contests also available to access through Ice Rooms official Facebook page. Ice Room is currently using its official Facebook Page to do the current Ramadhan season promotion.

20

Situation Analysis

ice room

Chapter 4 CONSUMERS & STAKEHOLDERS

21

Situation Analysis

ice room

4.1 Current Consumers Characteristics

4.1.1 Demographics Gender: Both

Age: Early twenties early forties. Education: All Occupation: Students to working professionals Income range: RM500 RM3000 Race & Ethnicity: All Geographical location: Urban Perception: Ice Room has its own unique shaved snow ice cream desserts. Learning: Friends and family, Newspapers and online media. Attitude & Personality: Health conscious. Motivation & Needs: Relaxing and comfort with delightful meals. Lifestyle: Standard society who are care about good food with warm and comfortable ambience.

4.1.2 Psychographics

4.2 Stakeholders Characteristics

4.2.1 Primary

STAKEHOLDERS

CRITICALLY to SUCCESS HIGH HIGH HIGH HIGH HIGH

CONCERN Supporting the company

Loon Sing Restaurant Group Shareholders Employees Admin + General Designer

Concerned about the market share Help manufacturing the company

Design website, ads, copy and banners

Manage online promotions and services

22

Situation Analysis

ice room

4.2.2 Secondary
Media

STAKEHOLDERS

CRITICALLY to SUCCESS MEDIUM MEDIUM

CONCERN Pomote products and brand Contribute information through the community (W.O.M)

Communities

23

Situation Analysis

ice room

Chapter 5 INDUSTRY & MARKETPLACE

24

Situation Analysis

ice room

5.1 The Industry

5.1.1 Definition of the Food & Beverages Industry

The food and beverage industry has developed and progressed from just a bunch of family businesses operations to a million-dollar, perhaps billiondollar powerhouse led by huge local and international corporations. This industry is now has expand to into global demands and this sometimes causes rising of food prices. The increase number of consumers in the market industry has resulted in a rapid and sustained increase in food prices, stokings global inflation.

Malaysias food industry nowadays is rich in terms of tropical and agricultural resources reflecting diverse cultures in the society that are Malay, Chinese and Indian. This have resulted in a fascinating range of processed food with an Asian twist.

Increasing consumer awareness in nutrition value and food fortification for healthcare has created the demand for functional/healthy minimally processed fresh food, organic food and natural food flavors from plants and seafood. 5.1.2 Shape of the industry The Malaysian food and beverage market is becoming increasingly sophisticated. The industry is supplied by both local and imported products. Malaysians living in urban areas are relatively brand conscious, and they prefer to shop in stores, which offer them convenience and good product selections. Lifestyle changes have led to an increase in the demand for convenience food and health food. The food processing industry is predominantly Malaysian-owned

In Malaysia, the food industry is dominated by small and medium scale companies.

25

Situation Analysis

ice room

5.1.3 Development The strong economic growth in the late 80s and early 90s contributed to major changes in consumer purchases and consumption patterns. Employment in the processed food and beverages industry decreased in 2009 by 5.1% to 43,080 compared with 45,418 in 2008.

The cost of labor the industry remained competitive, reflecting an efficient utilization and management of resources. Small and medium sized enterprises represent more than 80% of the total number of establishments in the processed food segment.

5.2 The Marketplace

5.2.1 Current condition Type of food like Ice Room is having a tough competition nowadays in Malaysia. Numbers of similar business and outlets had already taken their places in the market. Plus, Malaysians often heavily influenced and tend to choose companies that has been long in the market and well-known. This cause difficulties for companies that are currently trying to set their places in the market.

5.2.2 Changes in the Marketplace As more new brands and products established, Malaysian are now slowly accepting new and less famous companies like Ice Room.

26

Situation Analysis

ice room

Chapter 6 COMPETITIVE SITUATION

27

Situation Analysis

ice room

6.1 Direct Competitors

BRAND Charmy Snow Ice (SIIG) PRODUCTS PRICE RANGE From RM4.90 STRENGTH - Serves shaved ice. WEAKNESS - Only sells desserts.

- Cheaper than Ice Room.

iGlool

From RM5.90

- Various flavors to choose. - Appealing packaging.

- No outlets, only kiosks. - Only sells desserts.

- Lacks promotions.

- Only have one kiosk in Malaysia. (new)

6.1 Direct Competitors

BRAND Snowflake PRODUCTS PRICE RANGE From RM5.90 STRENGTH - The toppings are all handmade. WEAKNESS - Only sells desserts.

- Limited outlets.

Tutti Frutti

From RM5.30 per 100gm

- Customers can choose from various choices of toppings. - Real fruits as topping choices. - Lot of topping choices.

- A bit expensive. - Limited flavors.

Snogurt

From RM4.90 per 1000gm

- Limited outlets. - Limited flavors.

- Real fruits as topping choices. - Cheaper than Tutti Frutti.

28

Situation Analysis

ice room

Chapter 7 SWOT ANALYSIS

29

Situation Analysis

ice room

7.1 Strength
Numbers of outlets within Selangor, Klang Valley and Negeri Sembilan. High quality product at affordable and ideal prince range. Lot of choices of food and beverages. The food all constantly improvised.

7.2 Weakness
People are unaware of other food on the menu besides the desserts. Advertising in printing and design are weak. People thought it is a bit expensive. Bad product display.

Lack of promotion and exposure of the products.

7.3 Opportunity
Affordable and reasonable price range.

7.4 Threats
Too many competitors among local and international leading brand. Other competitors lower their product price range.

30

Situation Analysis

ice room

Chapter 8 STRATEGIC TARGET AUDIENCE

31

Situation Analysis

ice room

8.1 Primary Target Audience

8.1.1 Demographics Age: Early twenties early forties. Gender: Both Education: All Occupation: Students to working professionals Income range: RM500 RM3000 Race & Ethnicity: All 8.1.2 Psychographics Geographical location: Urban

Perception: Ice Room has its own unique shaved snow ice cream desserts. Learning: Friends and family, Newspapers and online media. Attitude & Personality: Health conscious. Motivation & Needs: Relaxing and comfort with delightful meals. Lifestyle: Standard society who are care about good food with warm and comfortable ambience.

32

Situation Analysis

ice room

Chapter 9 RESEARCH DEVELOPMENT

33

Situation Analysis

ice room

9.1 Marketplace Research

Front view (Bandar Baru Bangi outlet)

Main door entrance 34

Situation Analysis

ice room

Sitting area (outside)

Sitting area (inside)

Sitting area (inside) 35

Situation Analysis

ice room

9.2 Market Observation

Most of the customers are family with kids aged between 4 to 12 years olds up to teenagers.

Besides parents with kids, regular customers of Ice Room are young adults as well as adults. Young adults aged between 20 to 25 years old andost of them are students. Adults being in the group age of 26 and above. Most of them already working.

36

Situation Analysis

ice room

Bloggers who visited Ice Room often came up with lot of post about Ice Room on their blogs. They write reviews and comments as well as feedbacks regarding their experiences at Ice Room. This indirectly act as one of unofficial indirect promotion for Ice Room. 37

Situation Analysis

ice room

9.3 Online Survey 1. Age group

< 18 19 - 25 26 - 30 > 31

2. Gender

Female Male

3. Ethnicity

Malay Chinese Indian Others

38

Situation Analysis

ice room

4. Monthly income

Below RM500 RM501 - RM1000 RM1001 - RM1500 Above RM1501

5. Area

Urban Suburban Rural

6. Do you like dessert?

Yes No

39

Situation Analysis

ice room

7. Do you know Ice Room?

Yes No

8. Did you know that Ice Room also serves food other than just dessert?

Yes No

9. How many times have you been to Ice Room?

Once 2 - 3 times More than 5 times Never

40

Situation Analysis

ice room

10. How do you rate your overall experience?

Poor Fair Good Excellent I dont know

11. How did you know about Ice Room?

Newpaper Friend/Family Facebook Magazines

12. How likely would you recommend us to friends/colleagues or family?

Unlikely Somewhat unlikely Maybe Somewhat likely Very likely

41

Situation Analysis

ice room

Chapter 10 PRECEDENT STUDIES

42

Situation Analysis

ice room

10.1 Advertising Strategy

10.1.1 Website

43

Situation Analysis

ice room

10.1.2 Print ads

44

Situation Analysis

ice room

45

Situation Analysis

ice room

46

Situation Analysis

ice room

10.1.3 Wall decorations

47

Situation Analysis

ice room

10.1.3 Video

Online promotion video 48

Situation Analysis

ice room

8TV Quickie Interview

49

Situation Analysis

ice room

Chapter 11 REFERENCES

50

Situation Analysis

ice room

11. References
Ice Rooms website: http://www.iceroom.com.my iGlool Snow Ices website: http://www.iglool.com Snogurts website: http://www.snogurt.com

Ice Rooms official Facebook page: http://www.facebook.com/iceroomcafe

Malaysia Food Industry article: http://www.malaysia.ahk.de/

Food and Beverage in Malaysia: http://www.med.govt.nz/sectorsindustries/food-beverage Companies Commission of Malayisia: http://www.ssm.com.my

51

Situation Analysis

ice room

Chapter 12 APPENDICES

52