[Date]

SCHOOL OF BUSINESS AND SOCIAL SCIENCES

BBG 2013 CONSUMER BEHAVIOUR

TOPIC: CONSUMER BEHAVIOUR RESEARCH ON GARDENIA

PREPARED BY:
HAMZA HASSAN ABDIRAHMAN (AIU19032013)
FATHMATH JAAHATH SHAREEF (AIU19032020)
MARIYAM RAMSHAU ILYAS (AIU19032033)
FATHMATH HUDHA (AIU19032036)
NADIA WAHIDA (AIU19032039)

PREPARED FOR:
MR. AZNI ABDUL RASHID

SUBMISSION DATE
11TH JUNE 2021
TABLE OF CONTENTS

ACKNOWLEDGEMENT ........................................................................................................... 3

EXECUTIVE SUMMARY ............................................................................................................ 4

1.0 INTRODUCTION ................................................................................................................ 5

1.1 Background ................................................................................................................. 5

1.2 Marketing Strategy ...................................................................................................... 6

1.2.1 Psychographic Factors ............................................................................................ 6

1.2.2 Demographic Factors .............................................................................................. 7

2.0 METHODOLOGY .............................................................................................................. 8

2.1 Survey ........................................................................................................................... 8

2.2 Group Discussion ......................................................................................................... 8

2.3 Research Objective .................................................................................................... 8

3.0 FINDINGS .......................................................................................................................... 9

3.1 Data Analysis ............................................................................................................... 9

4.0 RECOMMENDATION ...................................................................................................... 14

4.1 Quality improvements (taste, freshness, and nutrition value) .............................. 14

4.2 Price standardization ................................................................................................ 14

4.3 Improve in packaging .............................................................................................. 15

4.4 Implementing the Gardenia Campus Plan ........................................................... 15

5.0 CONCLUSION................................................................................................................. 16

6.0 REFERENCES ................................................................................................................... 17

7.0 APPENDECIES ................................................................................................................. 18

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ACKNOWLEDGEMENT

In the name of Allah, the Most Gracious and the Most Merciful.

First and foremost, all praises to Allah and His blessing for the completion of this project.
We thank God for all the opportunities, trials, and strength that have been showered
on us to finish this project.

Secondly, the success and final outcome of this project required a lot of guidance
and assistance from many people and we were extremely fortunate to have this all
along with the completion of our project. We would like to sincerely thank our lecturer
Mr. Azni Abdul Rashid for his guidance, understanding, patience, and most
importantly, he has provided positive encouragement and a warm spirit to finish this
project. It has been a great pleasure and honour to have him as our lecturer. The
team members Hamza Hassan Abdirahman (AIU19032013), Fathmath Jaahath
Shareef (AIU19032020), Mariyam Ramshau Ilyas (AIU19032033), Fathmath Hudha
(AIU19032036), and Nadia Wahida (AIU19032039) who with their help have provided
timely support despite the fact with a busy semester and hurdles of Covid-19, Kudos
to us for our continuous support, and enthusiasm towards the work.

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EXECUTIVE SUMMARY

To build long-term relationships with customers, organisations use marketing as an

organisational function and a collection of procedures that create, communicate,
and deliver value to customers while also maintaining customer relationships in ways
that help the company. The company has an integrated procedure that is aimed at
building client relationships while also contributing to the company's bottom line.
Although consumer behaviour is the study of when, why, how, and where people buy
a product, it is also a topic of interest to businesses. Psychology, sociology, social
anthropology, and economics are blended together in it. It is designed to
comprehend both the individual decision-making process as well as group processes.
In customer behaviour research, consumers assume the roles of customers, payers,
and users to understand customer buying behaviour.

In this research, we surveyed people to discover the demographics and behavioural

aspects of Gardenia consumers, in the hopes of better understanding their demands.
As part of our customer profiling, we tried to figure out which groups have an effect
on the consumer, such as friends, reference groups, and society in general. Trying to
figure out the basics of consumer behaviour and understanding customers is
complicated, to say the least.

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1.0 INTRODUCTION

1.1 Background

Gardenia Bakeries (KL) is a well-known multinational bread manufacturer that

produces 2.2 million loaves of bread per day. Its headquarters are located in Shah
Alam, Malaysia. Gardenia Bakeries was established in East Malaysia in 1969, and it
was founded by an American called Horatio Scy Slocum, who worked with the
International Executive Service Corps. Gardenia produced its first loaf in 1986. Within
four years, Gardenia has grown to the top of the bakery sector, with a remarkable
99% brand recall rate and an 80% top-of-mind recall rate. As a result, Gardenia has
multiplied its product chains throughout the years and has become one of the most
booming industries in Malaysia. (Mohd Hasri, 2016) Gardenia operates in several
subsidiary firms such as Gardenia Singapore, Gardenia Food Brunei, and Gardenia
Philippines. Gardenia presently offers over 55 different types of white wholemeal and
specialty loaves of bread, buns, and wraps, European crusty country pieces of bread,
and fast-frozen par-baked or fully-baked gourmet bread. Gardenia is related to
attributes such as flavour, freshness, trust, and dependability.

Throughout the years, Gardenia has achieved several awards and

achievements. In 2011, Gardenia Bakeries was awarded 3rd Place in Malaysia's Top
Ten Brands, which The Nielson Company conducted. In addition, consecutively, for
three years (2010,2011,2012), Gardenia has won Putra Brand Awards. A specific Halal
Committee was created at Gardenia to examine every part of the Halal standards
and guarantee that all criteria are strictly followed. In addition, Gardenia has
engaged an Independent Syariah Advisor to whom Gardenia can turn in 'syariah'
related concerns as an additional precaution to regulate and preserve their Halal
certification. (Gardenia, 2021) Gardenia has witnessed a significant increase in
expenses over several years, particularly in manufacturing and raw material costs
beyond its control. Gardenia product pricing, on the other hand, stayed unaltered.
As a result, Gardenia will bear the cost increase for these goods (Bernama, 2021).

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 The consumer choice process explains the processes consumers take while
determining whether to buy something. A variety of circumstances can influence
purchasing decisions. Factors influencing consumer decisions are categorized into
four main parts. They are situational factors, personal factors, psychological factors,
and social factors. Situational factors include buying tasks and market offerings.
Moreover, personal factors include demographics, lifestage, lifestyle, and personality.
In addition to this, psychological factors include motivation, learning, and attitude &
beliefs. Social factors include culture, social class, family, and reference groups
(Lumen, 2018).

1.2 Marketing Strategy

The concept of market segmentation involves the use of three broad groupings, each
with distinct characteristics. Marketing mix tailoring is accomplished by dividing
markets into divisions and designating a distinct marketing mix for each group.
Gardenia divided its customers into two primary groups, demographically-focused
and psychographically-oriented.

1.2.1 Psychographic Factors

Known as a dividing factor for customers into different sectors based upon their
personality, motives or lifestyles, their way of living and conduct. To begin with,
Gardenia focuses on the psychographic aspect that serves to separate the markets
served by Gardenia, and this focuses on lifestyle. Gardenia hence focuses on
customers who place a premium on freshness, ease of use, a wide variety of tastes,
and impeccable quality. Customers currently want both convenient bread that they
should consume at a minimal risk factor and that can be obtained easily. To ensure
that the demands are met, Gardenia was doing all possible to supply fresh baked
bread to their clients each day, as well as expanding delivery channels to include
supermarkets, grocery shops, and even street food stalls in the vicinity (Lamb, Hair, &
McDaniel, 2012).

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1.2.2 Demographic Factors

The method through which a marketer divides a market into groups such as
age, gender, income, and ethnicity. Gardenia prioritises age as a consideration. As
consumers become younger, Gardenia separates them into teens, adults, and senior
citizens. Gardenia offers a wide range of products for everyone's various needs.
Intensely energetic teenagers, due to their energy needs, will have to find food, but
they are also more inclined to choose products with a sweet taste. To suit their
requests, Gardenia had introduced their new waffle goods. Gardenia whole wheat
fibre bread and the new Gardenia Breakthru that provides a high level of vitamins
and fibre are launched for adults and older folks who want a healthy diet.

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2.0 METHODOLOGY

2.1 Survey

We have conducted a questionnaire to broaden our knowledge on this field

and it has hugely helped us to deeply comprehend the issue and find more
information from different respondents who responded to our survey questions with
honesty and generosity. After we distributed our questionnaire, we had found
sufficient and reliable information which has led us to carry on our work successfully.
We have reached up to 28 respondents for our survey. The data that we have
received was specific, précised, and obvious.

2.2 Group Discussion

The only and best way to compile essential ideas and information is to discuss
with your group member. Wonderful ideas will be gathered within a short time. The
discussion was one of the great methods that hugely helped us to accumulate our
ideas and dig in and cultivate our minds. We had an open discussion and let
everyone think critically, freely, and deeply to stir up and cultivate his/her mind. This
method led us to share and come up with amazing and outstanding ideas which had
assisted us more. During the discussion, we have gathered to listen and write down all
ideas. Fortunately, every one of us was eager to share his idea whether it is important
or not, and it was our responsibility to carefully listen and jot down everything. The
discussion did not only help us to obtain and gather ideas but also it has shown us a
way that we can think critically, create, develop and share our ideas in a friendly
manner. It opened our hearts and allowed us to overcome every issue that we had.
Discussion played an important role during our task.

2.3 Research Objective

1. Identify the inclination, motivation & consumer behavior of AIU students in
purchasing Gardenia bread.
2. To identify the tactics used by Gardenia to increase customer satisfaction
and boost their business.
3. To recommend marketing techniques for the welfare of the community,
customer and the business.

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3.0 FINDINGS

3.1 Data Analysis

Figure 1

The bar chart above demonstrates the gender of our respondents. A total number of
28 individuals responded to the survey, 75% of them were male and the rest were
female.

Figure 2

Based on the graph above shows the segmentation of the age group that was
surveyed. We can see that 85.7% of the respondents aged between 21 to 25 which
equals 24 individuals of a total of 28.

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 Figure 3

The pie chart above demonstrates how often the respondents buy Gardenia bread.
According to the data acquired from the respondents, more than half of the
respondents (57.1%) buy Gardenia bread 1-2 times a week. 21.4%, which equals to 6
respondents, preferred to buy bread less than once a week. Only 3.6%, which equals
to 1 respondent, liked to buy Gardenia 5-6 times a week.

Figure 4

The graph above demonstrates what type of Gardenia bread their customers
preferred. Nearly 40% of the respondents, which equals to 11 individuals, liked Classic
white bread. 25% of the respondents preferred to buy whole wheat bread while 21.4%
chose Butterscotch bread. Finally, only one respondent preferred Wheatgerm bread.

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 Figure 5

The pie chart above shows the size of Gardenia bread the respondents preferred to
buy most. More than half of the respondents (53.6%) preferred to buy a 600g regular
slice. 35.7% of the respondents preferred the 400g regular slice while only 10.7%, which
equals to 3 individuals, liked to buy the 600g thick slice.

Figure 6

This pie chart displays which of the Gardenia bread respondents would choose to
consume. Almost 90% of the respondents preferred to eat Gardenia bread for
breakfast. Out of the 11 responders, consume it as a dinner, whereas just 2 find it
enjoyable to have during lunch.

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 Figure 7

The pie chart shows respondents' priority while purchasing Gardenia bread.
According to the data acquired from them, more than 40% bought the bread
because of its taste, while 28 percent stated their top priority as freshness. Only one
respondent stated that the nutritional value of Gardenia bread is a top priority when
purchasing it.

Figure 8

The pie chart above indicates the geographical location where the respondents
mostly buy Gardenia bread. According to the survey results, the majority of
respondents (78.6%) prefer to buy bread from PKNK, while 10.7% prefer to buy from 7-
Eleven. Only 1 respondent preferred to buy Gardenia bread from Petronas.

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 Figure 9

The graph above shows the motives behind buying Gardenia bread. Almost 80% of
the respondents stated the taste is what motivates them to buy Gardenia bread.
14.3% of the respondents which equals to 4 individuals reported is the New flavours
whereas the remaining 7.1% said is the Craving treat.

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4.0 RECOMMENDATION

Gardenia has to do things differently than other industries in order to attract

new consumers. They must even go above and above to improve consumer
satisfaction, as this is the most important factor in achieving rapid market penetration
and significant effect. This can also help the bread industry grow its market share.
Therefore, based on the findings of the consumer behaviour research, the following
are some recommendations that Gardenia can implement.

4.1 Quality improvements (taste, freshness, and nutrition value)

Most customers prioritize product quality in terms of taste, freshness, and nutritional
content, especially when it comes to high-quality, and low-cost products. If a
customer has a positive first encounter with a product, they will trust the retailer and
become the next regular customer. Therefore, retailers should always ensure that only
fresh product is kept on retail shelves, and unsold or expired bread should be removed
from store shelves and replaced with newly baked bread every day of delivery. Since
Gardenia will deliver freshly baked bread the same day it is baked to the shop.
Gardenia distributes seven days a week, thanks to its large distribution network.

4.2 Price standardization

According to the findings of the research, the majority of respondents claimed

that they prefer to buy from PKNK shops rather than 7-eleven or Petronas because
retailers sell at different costs, with PKNK selling for less than Petronas or 7-eleven.
Gardenia will have to standardize prices in this scenario. The amount of money
charged for a product or service is referred to as the price. It's the total of all the values
that customers forego in exchange for the benefits of owning or using items and
services. Price has been a major influencing factor in buyer decision-making, and it
continues to be one of the most important factors that influence market share and
corporate profitability. More significantly, it aids in the creation of customer value and
the development of customer relationships. In theory, price competitiveness is the
number one issue that many marketing executives face. Hence, the price of
Gardenia bread must be affordable and reasonable to everyone, and it must also be
consistent across Malaysia, regardless of where the bread is marketed.

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4.3 Improve in packaging

Gardenia's packaging is one of its weaknesses. Gardenia's bread items have

remained unappealing due to their unsightly packaging. When compared to
Gardenia, however, the other bread packaging is more appealing. With colorful
plastic bags and vibrant graphics, High 5 packaging is more appealing. Gardenia will
have to work harder to enhance its packaging in order to solve this problem.
Gardenia, for example, might hand out survey sheets to the general population,
asking for suggestions on how to make packaging more appealing. Gardenia can
then hire a number of designers to create the packaging they like. Packaging is
important because first-time purchasers who are unfamiliar with the goods will
purchase it based on its packaging. Especially at the university where the survey was
undertaken, Albukhary International University, this was crowded with international
students and employees from all over the world who had never had Gardenia
products before. Therefore, Gardenia must improve its packaging in order to obtain
a competitive advantage (Gardenia Marketing Plan Persuasive Essay, 2017).

4.4 Implementing the Gardenia Campus Plan

Gardenia was able to take advantage of this opportunity to increase its sales
volume by conducting product campaigns and implementing the Gardenia Plan
Campus, owing to the high demand for bread among students, particularly in the
area where the research was conducted, namely Albukhary International University.
This is a creative way to get more business and support from students and staff by
offering special discounts on purchases. And also provides a few samples of bread
and other baked products for free for students who have never tried it since most of
the students there are international students and staff, which will encourage new
consumers to buy Gardenia products and indirectly promote Gardenia's new
product. Place For venue, Gardenia is recommended to expand their baked
products market to more places.

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5.0 CONCLUSION

Gardenia divided its customers into two primary groups, demographically-

focused and psychographically-oriented. People's varying personalities, lifestyles,
everyday activities, and behaviours are known as psychographic variables. The
lifestyle segment is of primary importance in distinguishing the Gardenia market.
Gardenia has done everything in its power to meet the requests and offered daily
baked bread to clients while also having more distribution channels such as
supermarkets, grocery stores, and street vendors in place. Gardenia prioritises age as
a consideration. As consumers become younger, Gardenia separates them into
teens, adults, and senior citizens. Gardenia offers a wide range of products for
everyone's various needs. Differentiated marketing or mass marketing was utilised by
Gardenia when targeting customers.

Additionally, the scent of gardenia contributes to making it appear healthy,

fresh, and of good quality to customers. Gardenia will be able to increase its market
share by doing so. There are no fake or preservative-filled breads in Gardenia.
Customers have convenience in mind when they purchase high-quality gardenias.
They ensure good value for customers while maintaining the integrity of their products.
The main customers for Gardenia items are people who require extra conveniences
and also those who are searching for a cost-saving solution. Gardenia guarantees
that the breads are prepared daily and delivered throughout Malaysia within hours.

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6.0 REFERENCES

Mohd Hasri, A. A. (2016). Marketing Environment, Segmentation and Targets in

Peninsular Malaysia: The Case of Gardenia Bakeries SDN. Bhd. International
Journal of Humanities and Social Science Invention, 24-30.
Lumen. (2018). Factors Influencing Consumer Decisions. Retrieved from Lumen:
https://courses.lumenlearning.com/wmopen-
principlesofmarketing/chapter/reading-situational-factors/
Lamb, C. W., Hair, J. F., & McDaniel, C. (2012). Marketing. Independence, KY:
Cengage Learning.
Gardenia Marketing Plan Persuasive Essay. (2017, June 18). Retrieved June 9, 2021,
from PhD Essay: https://phdessay.com/gardenia-marketing-plan/

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7.0 APPENDECIES

FLOW CHART OF OUR WORK

Decide a product or a company

c
v
Choose a target
v market
v
v
c
Develop objectivesv for the report Write the report draft
v
v
v c
c
v
v
Prepare questions for the Date with Mr. Azni
v to review the
v
interview draft and re-check
v
v
v
v
c c
v
Divide the tasksv among group Correct mistakes and submit final
v v
members report
v v
v v
c
Collect data fromv the interviews
v
v
v
c
v
Analyze the collected data
v
v
v

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 Consumer Research Project
This survey is designed to identify and to understand your opinions regarding Gardenia
Bread consumption within AIU students. Please help us by taking a few minutes of your
time to answer this questionnaire about your personal experience with this product.

OBJECTIVES OF THE RESEARCH QUESTIONNAIRE

# Identify the inclination, motivation & consumer behavior of AIU students in
purchasing Gardenia bread.

The respondent's email (null) was recorded on submission of this form.

* Required

1. Email *

2. Gender *

Mark only one oval.

Female

Male

3. Age Group *

Mark only one oval.

16-20 Years

21-25 Years

26 Years and above

4. 1) How often do you buy Gardenia bread? *

Mark only one oval.

a) less than once a week

b) 1-2 times a week

c) 3-4 times a week

d) 5-6 or more times a week

5. 2) Which type of Gardenia bread do you prefer/buy most? *

Mark only one oval.

a) Classic white bread

b) Whole wheat bread

c) Butterscotch bread

d) WheatGerm bread

e) Chocolate chip bread

6. 3) What size of Gardenia bread do you prefer/buy most? *

Mark only one oval.

a) 600g thick slice

b) 600g regular slice

c) 400g regular slice

7. 4) At which meal, do you prefer to eat bread mostly. (Choose more than one if
applicable) *

Check all that apply.

a) Breakfast
b) Lunch
c) Dinner
8. 5) What is your highest priority while purchasing a bread? *

Mark only one oval.

a) Taste

b) Price

c) Freshness

d) Packaging

e) Low in calories

f) Nutritious level

9. 6) Where do you buy Gardenia bread mostly from? *

Mark only one oval.

a) PKNK

b) Petronas

c) Homey Grocer

d) Mydin Aman Central

e) 7-Eleven

10. 7) What motivates you to buy Gardenia bread? *

Mark only one oval.

a) New flavours

b) Taste

c) Craving a treat

d) Promotion offers

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