Professional Documents
Culture Documents
ASSESSMENT CRITERIA:
Assessment Criteria Excellent Good Average Poor Very
poor
Product (8.0) 8.0 6.0 4.0 2.0 0
Place (8.0) 8.0 6.0 4.0 2.0 0
Price (8.0) 8.0 6.0 4.0 2.0 0
Promotion (8.0) 8.0 6.0 4.0 2.0 0
Introduction and recommendations (8.0) 8.0 6.0 4.0 2.0 0
References and citations (5.0) 5.0 4.0 3.0 2.0 1.0
Appendices and assignment format and layout 5.0 4.0 3.0 2.0 1.0
(5.0)
TOTAL /50
FACULTY OF ACCOUNTANCY, FINANCE AND BUSINESS
Academic Year 2019/2020
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Turnitin Report
Contents
Introduction...........................................................................................................................................1
1.0 Product............................................................................................................................................3
1.1 Introduction.................................................................................................................................3
1.2 Product line and Variety..............................................................................................................3
1.3 Quality.........................................................................................................................................3
1.4 Packaging....................................................................................................................................4
1.5 Labeling.......................................................................................................................................5
2.0 Place................................................................................................................................................5
2.1 Introduction.................................................................................................................................5
2.2 Address of headquaeters and number of outlet............................................................................5
2.3 Type of ownership.......................................................................................................................6
2.4 Retail strategy and Site characteristic..........................................................................................6
2.5 Marketing system and distribution channel..................................................................................6
2.6 Online Store.................................................................................................................................7
3.0 Price.................................................................................................................................................7
3.1 Introduction.................................................................................................................................7
3.2 Value-based pricing (Good Value Pricing)..................................................................................7
3.3 Promotional Pricing.....................................................................................................................8
3.4 Product Mix Pricing (Product Bundle Pricing)............................................................................8
3.5 Product Form Pricing...................................................................................................................8
4.0 Promotion........................................................................................................................................9
4.1 Introduction.................................................................................................................................9
4.2 Direct Marketing Tools................................................................................................................9
4.3 Sales Promotion.........................................................................................................................10
4.4 Advertising................................................................................................................................10
4.5 Personal Selling.........................................................................................................................11
Recommendation.................................................................................................................................11
Reference............................................................................................................................................13
Appendix.............................................................................................................................................15
Introduction
Wally Amos, the owner of Famous Amos, was born on 1 July 1936 in Tallahassee,
Florida. He was living apart with his parents in 1948 and sent to New York City and lived
with his Aunt Della, who often baked homemade chocolate chips and pecan cookies (Wally
Amos Biography 2014). Amos has a strong passion in cuisine and it led him to study in food
trade professional high school for two years. Over the years, Wally Amos had been the first
successful black talent agent in the history of William Morris Agency in New York City. In
1967, Amos left William Morris Agency as he resolved to establish his own talent
management firm in Los Angeles (Wally Amos Biography 2014). In 1974, Wally Amos was
bored of show business so he returned to his love of baking. He is always comfortable in the
kitchen due to his mother and grandmother taught him baking and cooking when he was a
teenager. He improved his Aunt Della’s recipe and resolved to bake cookies professionally.
Therefore, he rented a small storefront to sell his cookies. In 1975, with financial support
from celebrity friends and former customers, he established the Famous Amos Chocolate
Chip Cookie Company eventually (Famous Amos Chocolate Chip Cookie Company 2020).
Famous Amos cookie store was first opened on Sunset Boulevard in Los Angeles. He
modified the old-fashioned recipe to bake the rich chewy taste chocolate chip cookies. The
cookies were new and unique in the goods bake market, Amos earned $300,000 sales in the
first year (Famous Amos Chocolate Chip Cookie Company 2020). Afterwards, Famous
Amos started to wholesale in packaged cookies stocked to the certain supermarkets and sale
on grocery store shelves (Nur Shazlynn 2015). In 1977, new baking and packing plants are
opened in California and New Jersey whereas Famous Amos stores were opened in Los
Angeles and Hawaii due to the demand of the markets. In 1982, the sales reached $12 million
then Amos published The Famous Amos Story. In 1985, although Amos earned millions of
profit; he did not manage well with the serious financial problems and sell his company to the
Fort Worth-based Bass Brothers in 1985. Amos sold his remaining shares for 1.1million and
left the company.
However, Bass Brothers were not better equipped to continue the struggling cookie
company then resold the shares to an investment group. The new owners of Famous Amos
had good strategy to broaden the company, and to give its rivals a run for their money.
Unfortunately, Famous Amos was sold again and bought by many owners who have no
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direction. In 1988, Shansby Group purchased Famous Amos Cookies and successfully
repositioned the brand image and changed the cookies company into a profitable firm (Wally
Amos Biography 2014).
After Shansby Group was in charging, Wally Amos cut all ties with the former
company and signed a two-year agreement in 1989 to not build a competitive business. As
Wally Amos stood out, CEO lively received a green light to develop the brand. He
transformed Famous Amos by changing packaging, dramatically reducing prices, and even
closing its retail stores, which are expensive to operate and maintain. Instead, the famous
Amos cookie is served to a wider audience through vending machines (the fastest growing
area) in large company cafeterias, warehouse food clubs, nearby convenience stores, and
some grocery stores. It also formed an alliance with Burger King, which in 1991 stored
cookies in its 200 fast-food restaurants (Wally Amos Biography 2014).
When fall in 1992, Famous Amos was again increasing the sale. The Shansby Group
which had turned back into a profitable enterprise, they sold their interest in Famous Amos to
President Baking Company for $61 million. Headquartered in Atlanta, Georgia, President
Baking was no stranger to Famous Amos, since the two had been in business together for
some time. President packaged and shipped about a third of the Famous Amos cookies, and
was also well known as the nation's largest producer of Girl Scout cookies. President was the
United States's fourth largest cookie distributor and more than had the assets to help make
Famous Amos a nationally available brand with sales of over $450 million in 1992(Wally
Amos Biography 2014).
Famous Amos is a private limited company under the Companies Act, 1965 on 9
November 1983. It was incorporated as the franchise holder of "THE FAMOUS AMOS
C.C.C.C. (M) SDN BHD '' in Malaysia. It was acquired by DKSH Holdings (Malaysia)
Berhad in January 1997. Famous Amos has the first Hot-baked store was opened in Sungei
Wang Plaza and officiated by the founder himself, Wally Amos on November 30, 1984.
Today, Famous Amos successfully operates over 60 Hot-Baker stores in shopping malls and
airports in Malaysia. There are nine various chocolate chip cookies which are freshly baked
throughout the day in each of this Hot-baked store. Famous Amos also sells muffins, drinks,
ice cream and a variety of candy. Famous Amos’s mission statement is to focus on
sustainable growth and achieve sustainable growth through their expansion of its operations.
(prezi.com, 2020)
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1.0 Product
1.1 Introduction
Product is an item or a service that is offered to sell to the market. Famous Amos also
have their own company product that sells in the market.
Famous Amos is a company that mainly sells cookies. So, the product line and variety
for Famous Amos is cookies. Besides selling cookies, Famous Amos also sells some dolls,
cups, chocolate and so on with their own packing design in their store for the customer that
can buy as a gift for birthday, Christmas, graduation and so on. Famous Amos Malaysia have
eight types of fresh bakes cookies that sell at stores. The eight types of cookies are Original
Chocolate Chip, Chocolate Chip Pecan, Oatmeal Raisin Cinnamon, Chocolate Chip
Macadamia, Double Chocolate Chip Pecan, Butterscotch Chip Pecan, Macadamia Red Velvet
and Caffe Macchiato [Famous Amos, n.d]. These chocolate chip cookies are using the best
ingredients like semi-sweet chocolate chips and flavorful nuts. Famous Amos are using the
"Free Smell" in our Hot-baked store to an irresistible fragrance of their freshly baked cookies
to be enjoyed by true cookie lovers everywhere. Famous Amos have also introduced "Soft &
Chewy Cookies' ' with a variety of flavor for cookie lovers who indulge in freshly baked soft
cookies. Muffins, Brownies, Chocolate, Confectionery pick and mix are complementary
products commonly found in Famous Amos outlets. Readily packed and customized gifts
hampers are also ever available [Famous Amos, n.d].
1.3 Quality
Famous Amos has the best cookies brand for many years. Many Famous Amos
customers were satisfied with the product that they bought. Famous Amos also will make
sure their cookies fresh bake every day. This is the reason why Famous Amos has got many
awards for its store in Malaysia. For examples, Brand Leadership Award 2018-2019
Consumer Cookies and Confectionery category from The BrandLaureate Best Brands
Awards, Awarded by Malaysia Airports Sdn. Bhd – Best product category (Leisure &
Others) from Concessionaires Awards 2018 and Awarded by Malaysia Social Media Week
2017 – Cookies and Confectionery category from Social Media Excellence Award[Famous
Amos, n.d]. The BrandLaureate Best Brands Awards was founded in 2005 by World
President, Dr, KKJohan, the purpose of this organisation is to develop brands myriad in the
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business backdrops[The BrandLaureate, n.d]. For the Concessionaires Awards 2018, this
reward is recognised by Malaysia Airports Holding BHD(MAHB) on 27 September 2012 as
the purpose to encourage and reward the concessionaires for the excellent service
annually[TheStar, 2012]. The Social Media Excellence Award is nominated based on brand
engagement, social media growth, post creativity and effectiveness. Based on the above
reward that Famous amos gets all can become the proof for this brand product is trusted by
many peoples.
1.4 Packaging
Besides the branding has got many rewards, the packaging is also important to attract
more customers to buy it. Famous Amos also have their own packaging to attract their
customers. Famous Amos Malaysia stores have many types of packaging that follow the
season or festival in Malaysia. For example, cookies in bags,cookies in containers, cookies in
gift boxes, cookies in gift mugs and also cookies in gift tins. The cookie in bags (appendix 1)
is to pack all the fresh baked cookies when the customer needs by counting grams and the
difference favour of cookies. The packaging has the period that has the best taste of the
cookies, because the packet is closed with a tape or a clip (appendix 2), normally is for short
term use and cannot keep the freshness for the cookies. Besides that, cookies in containers
(appendix 3) is the packaging that buys the cookies and has a container provided as a set.
This packaging usually sells at their online store and also physical store. This packaging is
more useful than the cookies in the bag, because the container can keep the cookies quality
and also is for long term uses. For the cookies gift box (appendix 4) is the cookies pack in the
exquisite boxes. This packaging is usually for the person to give the gift to their loved one.
For the cookie in tins is a box that can bring out the compliment from Famous Amos to their
customers. Besides the gift boxes packaging Famous Amos also have gift tins packaging for
example the packaging for Valentine’s Days pack (appendix 5) that Famous Amos sells in
their online store with the Red Heart Tin and also with 90grams of Famous Amos cookies.
Famous Amos also has many types of packaging for different situations, for examples gifts
for graduation, valentine days, Christmas and many more. Famous Amos products have great
packaging that proves the packaging is important to attract more customers.
1.5 Labeling
Under the Food Regulation 1985 by the Malaysia Ministry of Healthy show to a food
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producer it is important to have a label on their product to assist their customer when buying.
Those items that must have in the label of the food product are product name, quantity of
food, ingredients, nutrition facts, manufacturer or importer, expiration date, bar code or prices
and many more. With the above items that must include in the product label, Famous Amos
also has those items in its product label. Famous Amos cookies in bags, cookies in boxes,
cookies in containers, cookies in mugs or cookies in tins also have followed the regulation
that have been set by the Ministry of Health Malaysia. For example, every pack of Famous
Amos cookies will be labeled with the product name and quantity of food in front of the
packaging (appendix 6). The back face of the product also will provide ingredients, nutrition
facts, manufacturer or importer, expiration date and bar code or prices (appendix 7) that is the
most important information.
2.0 Place
2.1 Introduction
Place decisions are those associated with channels of distribution or the methods and
location a company uses for the products or services to be easily accessible to the target
customers. The type of product or service dictates how it should be distributed. The
distribution system performs transactional, logistical, and facilitating functions (Famous
Amos Cookies Overview and Analysis 2012).
Paradigm Mall and Sunway pyramid are the largest outlets in Malaysia, as they bake
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generous of fresh cookies daily in their hot-baked store to deal with the numerous direct
sales. Today, it operates over 60 successful Hot-baked stores in shopping malls and airports
in Malaysia (Famous Amos Cookies Overview and Analysis 2012). The retail shops will
mostly be situated at the shopping mall and airport as where are the most crowded place and
customers easily purchase it. It is rare that Hot-baked stores situate on street in Malaysia due
to the overall price of cookies are slightly higher compare to other cookies shops.
Famous Amos has its Hot-baked stores, so it does not rely on other retailers like a
convenience store, supermarket or department store. The visibility of Hot-baked stores is high
in Malaysia, consumers can aware that most of them are situated at the popular shopping
malls such as Sunway Pyramid Mall, KLCC Suria Mall, Mid Valley Mall and so on. There
are two sizes of Hot-baked stores which are kiosks and shopping centre stores. The size of the
kiosk is smaller than shopping centre store, which seems like a stall. The concept of the Hot-
baked stores is based on a vintage design. This kind of design is giving customers a friendly
nice impression.
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In addition, they are using indirect marketing channels as well to explore more
business opportunities for sales growth. It packs the cookies into small packaging and sells
them to the selected hypermarket. This is why Famous Amos’s cookies are available in
selected hypermarkets like Cold Storage, Tesco, and Jusco. Therefore, the customers can
easily buy the cookies in the common hypermarket or grocery store.
3.0 Price
3.1 Introduction
Price is the amount of money charged for a product or service (Bruce Kaplan,
Marketing an Introduction, 2002, page353). Every product has their own price amount, the
price amount can let customers know the product’s quality. Of course, some of the sellers
may increase the price value to earn more profit, it is improper. Famous Amos is a brand of
cookies. Famous Amos’ product has a high price. The price is high because we always use
good quality material to make our product, not to earn more profit.
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3.3 Promotional Pricing
Promotional Pricing is one of the marketing skills to reduce the price of product and
services to attract cost sensitive customers. This marketing skill is used to increase their sales
in special events such as membership day, Chinese New Year and so on. Famous Amos are
using this skill to attract their customers. For example, in International Women’s days
(Syioknya.com 2020), Famous Amos are doing promotional pricing for those who purchase
RM20 and above in a single transaction will get the RM3.80 discount. This is only for those
who are purchasing from an online store and valid from 1-10 Mar 2020. On the other hand,
refer to appendix 8, when Famous Amos have an opening event, they also give some
promotion to their customer which is that the customer can get another 100grams of their
product for free when they buy 200grams. All of the promotion they make is to attract more
customers to buy their product to increase sales.
In the first part, which is a product part, we have shown that Famous Amos have 8
types of products they made. Customers can choose the product they like the most likely and
buy it. However, for those who have more than one product or cookies they want to buy, it
will be troublesome for them. This is because they can only choose one of the products to
buy. If they buy both, they must give more cost to buy it. But do not worry, Famous Amos
are using Product Bundle Pricing. In this marketing strategy, Famous Amos have already
bundled other types of cookies together at a special price. This made them have another
product to sell. For example, refer to appendix 10, Famous Amos mix their product which is
Original Chocolate Chip and Chocolate Chip Pecan together and become another product and
sell it. So, for those who have more than one product or cookies they want to buy, they can
buy the product that already mixes together.
Famous Amos has a lot of products which are 8 types of different taste cookies and
the products that already mix together. Other than that, they also have many products with
different weight and packaging. Famous Amos using Product Form Pricing because different
products have different prices needed to set by them. Refer to appendix 11, it is two packs of
Famous Amos cookies with the same packaging. However, the difference is the gram of the
cookies. The first pack is 400grams but the second pack is 500grams. So, Famous Amos will
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charge a different price which is the first pack is RM40.90 and the second pack is RM50.90.
Again, refer to appendix 12, the cookies are inside of the container. The name of the product
is Famous Amos La Rosa Tin 4 Flavors 340g. We can see that this product has only 340
grams. But the price is RM54.90. It is higher than cookies in a bag. Why is the price
difference? So simple, it is because they use different types of packaging, and they use
containers to make their packaging more expensive. That’s why the container packaging is
more expansive with bag packaging. Therefore, Famous Amos charges different prices for
difference size and packaging products.
4.0 Promotion
4.1 Introduction
Direct marketing involves promoting directly to the target customers about company,
product or service. The examples of direct marketing tools are kiosk (appendix 14), direct-
mail, social media, email and mobile media. The direct mail can direct post information of
products to the customers through letters, flyers or postcards. To promote the product, the
promotional team of Famous Amos gave the flyers to the customers during the season
especially every Tuesday as Cookies Day but except public holidays. This movement can
attract more customers to purchase and increase the sales of the day. When the customers had
registered the member, Famous Amos has sent the postcards to them as a reminder of what
the promotion is doing. Nowadays, social media is the most popular Internet activity among
the world. As the examples, Facebook, Instagram and YouTube. The customers can see the
information of Famous Amos through social media. When there is a promotion, Famous
Amos will put the promotion on Facebook page, Instagram or other media social to let the
customers know about it. Customers also can online purchase the product and delivery to
their house within five to seven days. For example, Famous Amos put information
on celebrating December with buying 400g cookies in a bag and getting one free 400g bag. It
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means buy one free one in the whole month of December. E-mail is an electronic mail that
contains text, images or files by computers or mobile phone. Famous Amos uses it to replace
letters because it can let customers know about the information faster than letters. The letters
need to be written and received within five days but email only needs to type and the
customers can receive immediately. In addition, the images can attract customers to read and
understand about the information.
4.4 Advertising
Advertising is a market communication that is used to promote and sell the product or
service such as television, radio, signboard and newspapers. Advertising can be categorized
into above the line, below the line, and through the line advertising and Famous Amos
usually uses above the line advertising. Above the line advertising includes activities that are
largely non-targeted and have a wide reach [Pahwa, A., 2020]. Radio is the technology of
10
communicating through radio waves and hearing the sounds from it all over the place. While
the consumers are driving to work or doing the housework, they can listen to the radio. With
the radio, they can know about the brand and the promotion that Famous Amos has. To
attract new customers, Famous Amos has television advertising. Television was the most
popular about a decade ago. I believe that everyone has a television at home. Everyone uses
television to watch the programs, news or others. When the advertisement appeared halfway
through the programs, it showed the promotion of Famous Amos. If the advertisement is
interesting, there may be many people who want to try it. The printing advertising is the slow
and backward form because it may take a few days to prepare such as newspapers and
magazines. Nowadays, Famous Amos only focus the advertisement during the season like
Anniversary Day, Christmas Day and Valentine’s Day with printing advertising. But in the
early 20th century, Famous Amos chose newspapers to promote because they were extremely
popular at that time.
Recommendation
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Station, Mrt station and Bus Station. Public transport stations are the suitable place to sell
cookies because it is always centralized and crowded. The company can get more sales by
posting the advertisement on the common online social media such as Youtube , Instagram
and Facebook. Social media is the good platform to promote the products to the customers
and communicate with them.
Famous Amos Company can improve their product packaging in the more long-term
use. Famous Amos used the packaging that just having a tape or a clip to close the pack will
cause the cookies did not have the freshness taste for the consumer. Famous Amos can have
the new packaging with the zip packet. This can help Famous Amos to keep the freshness to
the consumer. Famous Amos also can have a promotion that when customers carry the zip
packet to purchase Famous Amos cookies, they will get a 10% discount. This not only can
reduce the use of plastic but also can reuse the zip packet.
In promotional pricing, Famous Amos should offer promotion in both stores, not only
online stores, so it can attract those who are going to shopping centres to buy things or date in
the periods 1-10 Mar 2020.
Famous Amos should have their product available in other retail stores such as 99
Speedmart, 7 Eleven, and so on. It can set the period in cookies and be sold in there. So
customers who want to eat their cookies in a small country then no need go to hypermarkets
and shopping malls.
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Reference
1. Bruce Kaplan, 2002, Marketing an Introduction, Pricing Product: Pricing
Considerations and Strategies, United States of America.
2. Eric, D 2010, The Difference Between Conventional & Vertical Marketing Channels,
viewed 25 March 2020, <https://smallbusiness.chron.com/difference-between-
conventional-vertical-marketing-channels-67357.html >.
3. Executive, Outlet Oprations, Famous Amos 2014, viewed 2 April 2020,
<https://www.famousamos.com.my/career/ >.
4. Famous Amos Chocolate Chip Cookie Company, Reference for Business 2020,
viewed 10 March 2020, <https://www.referenceforbusiness.com/businesses/A-
F/Famous-Amos-Chocolate-Chip-Cookie-Company.html >.
5. Famous Amos Malaysia, Famous Amos 2014, viewed 2 April,
<https://www.famousamos.com.my/about-us/ >.
6. Famous Amos, N.D, 400g Cookies in Bag, viewed 28 March 2020,
<https://www.famousamos.com.my/product/400g-cookies-in-bag/>
7. Famous Amos, N.D, Award, viewed 28 March 2020,
<https://www.famousamos.com.my/awards/>.
8. Nur Shazlynn Shamshol Bahari 2015, Famous Amos, viewed 10 March 2020,
<https://prezi.com/cupdclwluuoa/famous-amos/>.
9. Pahwa, A., 2020, What Is Advertising? - Examples, Objectives, & Importance |
Feedough, viewed 14 March 2020, < https://www.feedough.com/what-is-advertising-
advertising-objectives-examples-importance/ >.
10. Smallbusiness.chron.com, 2020, Marketing Strategies For Personal Selling, viewed
14 March 2020 <https://smallbusiness.chron.com/marketing-strategies-personal-
selling-46563.html>.
11. Syioknya.com 2020, Famous Amos International Women’S Day Promotion (1 March
2020 - 10 March 2020), viewed 27 March 2020,
<https://www.syioknya.com/DealDetail/24402-famous-amos-international-womens-
day-promotion>.
12. The BrandLaureate, N.D, viewed 28 March 2020,
<https://www.thebrandlaureate.com/bestbrands/bestbrands-award-2018-2019/>.
13. TheStar, 27 September 2012, MAHB award to top concessionaires, viewed 28 March
2020, <https://www.thestar.com.my/business/business-news/2012/09/27/mahb-
awards-for-top-concessionaires/>.
14. UK Essays, Famous Amos Cookies Overview and Analysis 2012, viewed 25 March
2020, <https://www.ukessays.com/essays/marketing/history-of-famous-amos-
cookies-marketing-essay.php >.
15. UKEssay, 2 June 2017, Famous Amos Cookies | Overview and analysis, viewed 28
March 2020, <https://www.ukessays.com/essays/marketing/history-of-famous-amos-
cookies-marketing-essay.php>.
16. Wally Amos Biography, A&E Television Networks 2014, viewed 10 March 2020
<https://www.biography.com/personality/wally-amos >.
Appendix
Appendix 1
Appendix 2
Appendix 3
Appendix 4
Appendix 5
Appendix 6
Appendix 7
Appendix 8, Famous Amos Menu, 28 March 2020
Appendix 12,
Famous Amos La Rosa Tin 4 Flavors 340g, 28 March 2020,
https://www.famousamos.com.my/product-category/products/
Appendix 13
Appendix 14