HPT20403

ENTERPRISE MANAGEMENT

SEMESTER FEBRUARY
SESSION 2021/2022

INDIVIDUAL ASSIGNMENT

ASSIGNMENT'S TITLE: OLDTOWN WHITE COFFEE

(MARKETING)

STUDENTS NAME : THINOSHA A/P V.KRISHNAN

MATRIX NO. : H20A1845
CLASS GROUP : L3
LECTURER’S NAME : DR NOR SYUHADA ZULKEFLI
SUBMISSION DATE : WEEK 9
Executive summary

OldTown White Coffee is a restaurant that offers dine-in, take-out, and online

delivery options. They also provide all of their menu items for breakfast, lunch,

teatime, dinner, and supper, as well as their signature white coffee. Even though

OldTown White Coffee is a well-known cafe in Malaysia, it faces major marketing

challenges due to an outdated marketing strategy that is overly focused on one thing,

customer satisfaction and the Covid-19 crisis. To resolve these problem, OldTown

White Coffee has to introduce a new product to a new market to keep up with the

current trend, OldTown White also provide and offer a loyalty programme to their

customers, as well as during pandemic OldTown White coffee release Drive-thru

concept. As a result, OldTown White Coffee attracts a large number of customers, and

their marketing efforts rise.

Company Background

In 1958, the company was founded in Ipoh, Perak, Malaysia. Mr. Goh Ching Mun and

Mr. Tan Say Yap, the co-founders and executive directors of Old Town white coffee,

formulated their own blend of 3-in-1 instant white coffee and began manufacturing in

1999 with the intention of providing quality white coffee to Malaysian households

and the food services industry. Under the brand name "OldTown White Coffee," the

company ventured into the food service industry in 2005, creating a chain of café

outlets based on the classic Ipoh coffee shop setting and ambience. In 2013, less than

seven years the OldTown White Coffee had grown to 200 locations in Malaysia.

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Overview of situation

OldTown White Coffee, like other participants in the food-service industry, is dealing

with marketing issues as well as inconsistency, which has a strong influence on

customer satisfaction. The main issue with OldTown White Coffee is that their

uniqueness is based solely on white coffee. The Cafe company only attracted to a

specific group of customers, the majority of whom are Chinese. Many clients avoid

the cafe since there are no discounts for repeat customers. In the food and beverage

section, OldTown white coffee is likewise overly reliant on dine-in. OldTown White

Coffee Cafe also does not adapt to customer expectations. Additionally, during

Covid-19 pandemic the company faced lots of ups and down because the government

do not allow dine-in, to stop spreading the virus. Due to the above-mentioned events

in OldTown White Coffee stores, the marketing management team later realizes and

prevents the company from providing world-class customer service to their market.

Issues to be solved

The primary competitive advantage of OldTown White Coffee is white coffee. It may

make it difficult for them to develop and expand their product. The OldTown White

Coffee only paid attention to their simple and Pure White Coffee. There is no new

coffee on the menu, so customers are only tasting the same thing. For example in this

case, it is difficult to target new markets for white coffee legacy, old Town White

Coffee 3-1-1 Blends, Nan Yang, Ready to Drink Products, and others. Not only that,

despite the fact that their white coffee has a rich flavour, the coffee they use is very

common, and their product imitation is very high. Nobody knows if the OldTown

White Coffee market will develop and remain popular with customers, or whether

another beverage or leisure activity will eventually replace thier coffee.

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Due of low customer satisfaction such as no discounts are given to repeat customers.

Customers are not willing to return because they believe the OldTown White Coffee

service is not worth the money they paid. It's all about finding the proper combination

of pricing and quality, and ensuring that their consumers are constantly satisfied.

Another reason for low customer satisfaction is failure to meet customer expectations.

OldTown White Coffee continues to ignore the issue, and poor customer satisfaction

continue to effect the company and makes zero effort to increase consumer

satisfaction. So, Customers believe that OldTown White Coffee Cafe ignores their

requirements as well. It is important to OldTown White Coffee to investigate the poor

quality and implement concrete measures to improve the service.

The worldwide food sector is being impacted by the COVID-19 pandemic, as

governments close restaurants to slow the virus's spread. Individuals have to practise

social distancing by staying at home, limiting their travel, avoiding crowded areas,

using no-contact greetings, and physically separating themselves from others. Even

though in public places, the use of face masks or coverings has been recommended to

reduce the risk of transmission still the OldTown White Coffee customers are not

allowed to enter the dining rooms. Dining in a restaurant appears to carry a higher risk

of COVID-19 infection than carry-out or delivery services. Due to this OldTown

White Coffee has lost a significant number of customers due to the pandemic Covid-

19 problem, resulting in fewer dine-in customers. One of the most obvious effects of

the COVID-19 pandemic on the restaurant industry is the loss of revenue.

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Recommendations

OldTown White Coffee can introduced new product to the new market to suit current

trend. The market dynamics show that trends and consumer preferences change year

after year. OldTown White Coffee should innovate and improve their products more

frequently than they did a decade ago. The company can developing and creating new

products that allows them to reach new consumers, gain market share, sell more, and

improve revenue streams. Meanwhile, they also can upgrading existing items allows

for cost savings, better margins, and eventually higher profitability. OldTown White

Coffee’s reputation is also enhanced through the introduction of new products and it

is true that a successful product helps in the increase of reputation. OldTown White

Coffee also can produce gourmet-quality white coffee, allowing them to expand their

consumer base to different socioeconomic groups and generate a quick return on

investment.

Due to the low consumer satisfaction, OldTown White Coffee can implement a

loyalty programme, which is the greatest marketing tactic for encouraging customers

to shop again. OldTown White Coffee's loyalty programme can provide rewards,

discounts, or other unique incentives in exchange for a customer's repeated purchases.

So, customers can earn rewards for purchases or money spent at OldTown White

Coffee via point-based systems. They can redeem the points for exclusive offers,

products, or discounts once they've made enough transactions or collected enough

money. The company can gain from loyalty programme not just because they increase

customer loyalty, but also because they provide essential information on how

customers spend and what items or types of offers they prefer. Customer loyalty

boosts profits, improves sales success, and enables long-term growth. A well-planned

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and executed loyalty programme can assist OldTown White Coffee in retaining

existing customers, attracting new customers, reducing turnover, and increasing

profits.

During Covid-19 pandemic, OldTown White Coffee sales dropped significantly after

the government banned in-person dining, to overcome this issue OldTown White

Coffee can bring up drive-thru concept. A drive-thru is a form of take-out service that

allows customers to purchase without having to leave their cars. This concept not only

protects the employees and customers, but it also gives customers an incentive to buy

from the restaurant. Customers like knowing that they can support their favourite food

businesses while preventing the spread of COVID-19. OldTown White Coffee also

can combine drive-thru with mobile order and pay to make things easier for customers

while also protecting them from the covid-19 virus. Customers will find drive-thru far

more convenient, which can mean an increase in customers and an increase in

revenue.

Conclusion

The global market environment has thrown the entire supply chain into confusion.

The covid-19 pandemic has demonstrated that no country or people is immune to the

crisis' effects. With the current issues, OldTown White Coffee must immediately

adapt solutions to an approaching pandemic, analyze the solutions in both pandemic

and non-pandemic scenarios, as indicated above such as introduced new product to

the new market to suit current trend, loyalty programme, and drive-thru concept.

These solutions, when combined with a convincing execution plan, will secure the

long-term viability of the OldTown White Coffee.

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References

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