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A blend of coffee and conversation never seemed to amaze the customers who go to Old Town White Coffee. Famous for its white coffee, the coffee chain started business in 1999 under the name of „White Cafe‟. Rapid developments have seen the business expand into exporting homemade white coffee to neighbouring countries alongside expanding the product line. Not to mention the fact that the coffee chain has shops literally all over Malaysia, more precisely – Kuala Lumpur, Pahang, Perak, Penang, Sabah and Sarawak The level of expansion has been equally matched with anticipating quality required by the customers of the business. From the simple but unique taste of the coffee - to the free WIFI in each store shows promise of delivering to customers graciously. Our assignment is based on an Old Town outlet situated in Taman Connaught, Cheras. Established in 2007, the location for this outlet was seen ideal as there was an educational institution, UCSI, nearby. From the inception the response has been immense from the students, families and workers. With the interior designed to provide a soothing serene atmosphere, the cafe is situated in a small shop lot. We managed to interview the outlet manager to shed light on key areas of the outlet: marketing environment, SWOT, STP, marketing mix and actions and analysis.
Micro environment The factors influencing the business include the suppliers. and publics. marketing intermediaries. All of them are considered as competitors although the menu‟s offered are vastly different from that offered by Old Town White Coffee which comprises mainly of local foods at reasonable prices compared to the menu offered by the previously mentioned chains. Mission “To let everyone enjoy every sip of authentic Malaysian Ipoh White Coffee. competitors. and POS system for the payment. Old Town White Coffee has also welcomed changes in this area.2 .2. anytime. Very good examples would be KFC. These factors directly affect the Old Town White Coffee performances and the decision making. McDonalds and Secret Recipe. with a cup of coffee by their side of course. 2. This is the scenario in this OTWC shop as well. The distinguished uniqueness of the food offered at Old Town White Coffee shops differentiates them with other Food & Beverage chains in Malaysia. The customer base also includes employees from the business community situated around the store. anywhere” Vision 2 . A key example is the touch screen system used for sending orders to the kitchen. At a time where technology is overtaking almost all aspects of business. Nowadays it‟s the trend to see mostly younger generation‟s spending time in coffee shops either conversing with friends or working on school work or even simply browsing the internet with their computers. a whopping 80% consists of Chinese the rest being Malay and Indians [Annex I].1 . The year 2008 saw all outlets of Old Town White Coffee comply with „Halal‟ in order to cater to the largest community – the Malays. customer markets.Macro environment Looking at the customer segmentation for this specific outlet.
we have made a standard that equals excellence. both offer quality coffee but at two different level of prices. Weaknesses Two weaknesses exposed include the lack of customization on the choice of food and the language barriers faced by staff in communicating to customers. Customers deem OTWC delicacies well affordable. The chief strength we uncovered is the undeniable brand loyalty among the customers. together with our core values. 3 . Customers have raised their views on customization of certain menu items as to their preference. we‟ve found out that customers specifically come to the shop for specific dishes. pushing other brands to do the same” “We strive for continuous improvement.Old Town White Coffee vision is mostly highlighted to promote their unique Taste and to deliver their best. we are able to move forward as one responsive team and deliver our best”” SWOT analysis A SWOT analysis helps in analysing a business in regard to decision making. The next biggest strength is the competitive prices offered in terms of the quality of food being offered. Due to the differentiated menu offered in OTWC chains. incorporate innovations and technology in our commitment to create customer value in our both products and services” “Aligned with transparent policies and achievable targets. The most comparable example would be Starbucks Coffee. but due to the fixed computerized system and pricing. By setting precedence. (Old town white coffee) “To promote our unique Malaysian Taste – the authentic Ipoh White Coffee and Continue White Coffee Legacy through continuous improvement and innovation that exceeds customers expectation” “As Market Leader. we take pride in distinguishing ourselves to be ahead of the pack. healthy and delicious. Even though OTWC and Starbucks have differentiated coffee product lines. the shop has been unable to deal with this yet. unoffered in other food chains.
In this step. most of foreign workers hired by OTWC are foreigners and thus lack good communicational skills. students and youth. This has the potential to kill off customer approval ratings for the shop. This could be improved by giving customized language training programs. Company’s STP When marketers want to designs customer-driven marketing strategies. 16% Malays and the rest Indians. Thus potential customers choose to dine at the market rather than at the shop.With regard to the latter issue. 4 . workers and senior citizens. Through market segmentation. Opportunities Opportunities for the company include the expansion of our coffee retailing beyond the current scope and the very obvious fact of expanding the number of OTWC shops locally and regionally. Furthermore. Other threats include the lack of professionalism amongst the staff. segment size and growth. hiring international workers are gathering negative interest from local potential workers looking for jobs. a business can focus on the particular market segment which in turn would help in catering to their specific needs. Market Segmentation & Target Market In Malaysia. The demographic segmentation is most easily categorized in to children. and Indian. a significant threat was uncovered. Market targeting refers to the segment a business decides to cater to. they must first decide who it will serve. The Old Town White Coffee market caters to 80% Chinese. Chinese. marketers will evaluate the market segment‟s attractiveness. Threats Considering the threats to the outlet. and company objective and resources in order to gain advantages over competitors. The outlet is located near a lot where a big night market is held every Wednesday. there are three major ethnicities. Malay.
clean environment the breakfast and lunch promotions along with the low pricing with the additional fringe benefit of WIFI. this also has to be taken in to account. Old Town always advertise their product with slogans like “Malaysia‟s No. Students are seen as low income earners. 5 . while set menu‟s are provided for families. nowadays new customers easily remember Old Town is associated with White Coffee and it has been observed that new customers order classic drinks – white coffee. We will be analysing the four P‟s of the marketing mix in application to the Old Town shop we have chosen.The distinguished needs between these segment groups are diverse. simple pure white coffee ready to drink product. They offer 3 different coffee classes – the OTWC 3 in 1 blend. we have to differentiate our products and position ourselves in the market. Market positioning After target the market. Company’s marketing mix Marketing mix Marketing mix is an important tool in matching the demand anticipated by the business. A few solid advantages Old Town has compared to alternative cafes nearby is the fact that they provide a good. While workers are considered as income earners and come in groups and have limited time to enjoy their meal. Local delicacies are included in the menu to suite the likings of old timers. Product The key product the shop focuses is the coffee product line.1 confirms best White Coffee”. And according to the manager. thus menu items include acceptable prices for them. Nan yang White Coffee „O‟. Every day the cafe is full during breakfast and lunch hours.
The original white coffee is from Ipoh. Price The prices offered in the Cheras outlet is lower compared to OTWC outlets in famous business centres such as Pavilion. Also the bus station is quite nearby this outlet. Giant & Tesco. the placing of the outlet can be said as an ideal location. smoothies and so on. Brand loyalty is strengthened amongst customers who often travel locally. Thus it provides an optimal place for a coffee shop. „Nasi Lemak‟ special and so on. The outlet of OTWC we‟ve chosen. Furthermore the Old Town‟s Coffee packs are available in hypermarkets. An overall placement analysis on the coffee chain shows. They serve the fresh and true product to the customers and make sure customers feel the best taste from the white coffee. Beverages included the series of origin white coffee. it can be said that the outlet is justifying hard in pricing decisions that will benefit customers even more. „Savoury starter‟. the pricing is more cheaper. Local flavors and Sweet delights include „Signature toast‟. Genting Highlands and LCCT. due to the large number of shops scattered across Malaysia – placement is good. The outlet is in a quite developed area with a university and a local Bank (Maybank) so close by. Plus in comparison to other food chain rivals. With the given promotions. classic and sweet delights alongside hot and cold beverages. Place To position the place of a company is an essential element for a business. desserts and others. „Chicken Hor Fun‟. the likes of Jusco. The food line of products has local. Classic dishes are for the customers who need a normal component meal just like „Rendang Chicken Rice. old town iced cold coffee and tea. 6 .
Although we do recommend. Old Town White Coffee‟s pricing is decided taking in to account key competitors such as Madam Kwan. the tea time has light snacks and the 3pm promotions have full meals. Furthermore. New menu items are introduced through promotions at reduced prices to collect feedback. Based on the Manager‟s remarks and our survey. the coffee chain is well advertised on the local media. Actions & strategies Product Old Town offers a wide variety of products to serve its customers. This could be the main reason for the strong and natural flavour for the coffee. Thus it has high demand. the main eye catcher in Old Town at Taman Connaught is their awardwinning “White Coffee”. the serving size of the coffee to be improved as it is compassionately less now.Promotion The purpose of promotions is seen as a way to make customers differentiate the Old Town‟s experience. The coffee originates from Ipoh. 7 . Astro. Thus the pricing is reasonable and acceptable. While the whole day promotions include certain flavours of noodles. perhaps pastries and home made desserts. Malaysia where they are naturally brewed. Nasik Lemak which is the clear next favourite and we recommend it would be good idea to broaden the Nasik Lemak line by offering unique side dishes. 3pm-6pm. Pappa Rich and more. quoted as a coffee chain with Malaysian Pride. Price Price being the key and initial factor customers would consider. at tea time. we have found that many customers who take coffee‟s also take the “Kaya Butter Toast” which is considered a snack. and a promotion for the whole day. It could be a good idea to offer additional snack options. This bun is very crispy and the butter is made from a well recognised bakery in Malaysia. Proudly adding. Three promotions are held daily.
it could be an optimal move to further expand the current shop. A suitable idea is to create membership cards to customers so that customers would feel more at home and this is turn could hold customers off going to rivals. there is relative space for more customers during the evenings. there is always some promotions customers can choose from. 8 . Thus there is little argument against the current placing. In order to deal with the night market situation as previously stated. add 1 more ringgit and the customer can choose a drink from either white coffee or ice lemon tea. We recommend the shop to come up with better promotional offers during the evenings as there is additional capacity to accommodate more customers. Customers have found it most convenient to stop over for a quick lunch or snack after visting the bank or nearby businesses. This could match the high demand further improving the brand loyalty. As said before these promotional strategies should highlight the need to amend the issue of the night market as well. From the promotions offering different flavours of noodles for any day to the most recent one of early bird breakfast promotion. we think there are numerous promotions. Place As said before the location is seen as ideal for business. A very good example is the breakfast set which includes one coffee. we recommend the shop to come up with a new promotion to draw in customers on that particular night.Moreover the promotion packages are economical compared to ordering single items from the menu.50. while other pricing promotions include the „buy one get one free‟ and lower prices being offered to students. the current location is seen as ultimate location. This might attract the local demand a bit more. And lastly we suggest it is a good idea to promote the shop a bit more around town. half boiled egg and toasted wholegrain bread with golden melted butter. it would help to cover the shops fixed costs. Even though high demand is met in peak hours. priced at RM4. With the nearby businesses and the university almost next door. Perhaps matching up to the prices offered by the night market. Although with the anticipated demand through peak hours. The 3pm – 6pm promotions offers 20% discounts on certain items. More pricing strategies were to be seen as we reviewed the promotions. Promotion In terms of promotions being undertaken.
especially the young to middle aged customers. there seems to be lack of customization to suite the customers ever changing desires. the business would find itself in a stronger position than it already is. That would indeed match the desires of the customers. Even though the shop offers the classes along the lines of classic food. the Swot Analysis. It seems almost impregnable to break in to newer customers. with the matching promise of delivering to them truly.Conclusion The areas being stressed on in this assignment are – the company‟s marketing environment. With these things taken care of. Moreover the business has established its performance within the regional market. 9 . This might have to be remedied soon enough to draw in newer customers. The market environment described how external and internal factors within affects the drawing of customers to the restaurant. it has been found that Old Town Coffee in retail shops and hypermarkets does not do too well compared with the other coffee brands such as Nescafe. Additionally. STP. The reason we‟ve highlighted this segment is because this is the segment which raises the issue for the shop to differentiate and customize the menu being offered rather than the aged group. marketing mix and actions & analysis. Accordingly we acknowledge this is a high priority situation that has to be remedied. A bit of professionalism needs to click in to place continue on being on the frontier of the coffee line. and on the spot promotions signifying to the customers clearly the major difference in prices compared to rivals. in the target market. We propose the chain/shop to setup free sampling booths in hypermarkets.
This could be either.Microenvironment The microenvironment concerns the internal factors influencing a business directly. Madam Kwan. Though the product line is difference. Competitors Even though there are well established brands the shope is competing against. promotion strategies have been adopted after strictly reviewing the different demand segments. and SCS supplying butter to the coffee chain. sausage and Omega egg. These help in motivating the employees to work towards the set goals. the general public or the authorities. it‟s relatively safe to say that the main competitor for Old Town is Secret Recipe. Objectives include the set sales targets that the staffs work hard to achieve. 10 . mission and vision statements. McDonalds. These are well established suppliers within the market hence the gaining of trust of our customers. suppliers. customer markets. Suppliers Suppliers are an adamantly important group. and the pricing of Secret Recipe sky high compared to Old Town. marketing intermediaries. Spritzer supplying mineral water. such as KFC. Customer markets There is no specific market segment to which our focus shop wants to deliver to. Consequently the pricing. The company A business has always set objectives. But it is not the case when majority of the customers are students. Nesley supplying ice cream. competitors. The few suppliers of Old Town include Netron Plus sypplying ham. Or simply – to continue serving the unique service and food of the Old Town White Coffee.
5% Family 13% Students 40% Expatriate 0.5% Students Young Adult Officers 17% Workers Officers Family Workers 16% Senior Citizens Young Adult 12% Expatriate 11 .Three Major Nation Percentage Indian 4% Malay 16% Chinese Malay Indian Chinese 80% Market Segmentation Senior Citizens 1.