Professional Documents
Culture Documents
MANAGEMENT - 2
Group 6
Ankita Rajawat – 19069
Apoorva R – 19071
Ayesha Nehla – 19072
Mohith Kumar H N – 19073
Case - COFFEE Gokul Rov J – 19079
Harshith Y M - 19081
PRODUCTS SDN BHD
Coffee Products Sdn Bhd got manufacturing
license on 24 February 1981, under the Industrial
Coordination Act 1975, to produce soluble
(instant) coffee powder
Moccona: Boncafe:
• Premium priced brand • Major brand in imported roast and
• Market share – 3% ground coffee
• Last entrant to Malaysian market • Offers as many as 10 or more types
• Targeted towards upper middle of blends
income consumers • Offered in pack sizes of 100 gm
• Distribution was heavily skewed each
towards the urban centres • Price at $6.20 - $6.40 per pack
• Dented Nescafe’s formidable • Lacked good distribution network
market share
• Came in attractive containers which
could be used as storage jars
Flow chart for
Instant Coffee
plant
Product Attributes
• Product was 100% pure with no adulteration
• Coffee powder appeared in a fine powder form and brown in colour
• No thickness and oily appearance
• The aroma and taste was closer to instant coffee
• Taste of the product could be described as slightly burnt, harsh and bitter
but not sour
• Though the aroma was sweet and fragrant, it lacked the impact of the
freshly ground coffee
FTB Approach
Form
• Coffee making was regarded as skill
• Ground coffee was seen as messy and troublesome
• In order to reduce complexity, Instant coffee was introduced
• It is prepared by adding coffee powder to the hot water with milk
and sugar
Technology
• Rotating drums – Roast green coffee beans
• Mechanical grinder – Grind coffee beans
• Sealed extractor columns – Brew coffee solution
• Spray Dryer – Dry the coffee solution
Benefits
• Ease of use
• Reduction of time
• Similar taste
• Complete pureness
Opportunity Identification
• Introduction of Instant Coffee
Powder
Concept Generation
• To provide new instant coffee
powder or to provide convenience
for ground coffee
Process Development
• Manufacturing Process of Instant
Coffee
• Advertisement
Contents of PRODUCT PROTOCOL
Target market: Consumers of local ground coffee & instant coffee
in Malaysia
Product positioning:
• SSCB Lintas Worldwide’s strategy positioned the product in terms of
the features such as the aroma, taste and also the ease of preparation-
BESKOPI
• Adsell Advertising’s strategy positioned the coffee as ‘instant’ which
means convenience and ‘local coffee’ suggest the unique blend of
coffee in it-COFFEE ROYALE
• Ball Partnership’s strategy was to position the product as real good,
old & much loved taste of Malaysia-GOLDCUP
Product attributes function, features:
• Product was 100% pure with no adulteration
• The product was in a fine powdered form and brown in colour
• The aroma and taste were closer to the instant coffee
Product benefits: Ease of use and also acts as a substitute with a
blend of originality
Competitive comparison: All the instant coffee manufacturing
companies such as Nescafe, MHIC, Moccona and local ground coffee
making companies in Malaysia
Continued..
Augmentation dimensions:
• The coffee was in a fine powdered form and was brown in colour
• Aroma was sweet and fragrant
Marketing requirements:
• The instant local coffee of Malaysia
• The ease of preparation & satisfaction
Financial requirements:
• Distribution network: For the establishment of extensive distribution network i.e., sole distributor of
coffee
• Promotion: Tan decided for introductory trade allowance & display offers such as, one additional
case for every 12 cases ordered
• Advertisement: The instant coffee industry occupied over 58%- TV, 29%- Press and the rest was in
radios & magazines
Production requirements: The production of instant coffee requires cleaning, roasting, grinding,
extraction, concentration, spray-drying & packaging of the coffee beans
Potholes: The prepared coffee was dark in color but lacked the appearance of the local ground
coffee. Though the aroma is sweet and fragrant, it lacked the impact of the local ground coffee
Implementation of Launch Plan-
Beachhead Stage
Also known as pump priming
Heavy expenditures to overcome initial sales inertia
Defensive Addition: Sdn Bhd needed to penetrate the instant
coffee industry and hence used-
Smaller assortments such as the coffee being
unadulterated- 100% pure and having the taste and aroma
as that of the local ground coffee
Sales promotions such as introductory trade allowances,
displaying offers and point-of-sale materials like shelf-
strips
The launch tactics used by Sdn Bhd are-
• Promotions in terms of advertisements and even offers
• Tan wanted to establish a local trading house to act as the
sole distributor
PRODUCT INNOVATION CHARTER
Background Focus
• A Coffee Products company in Johore Bahru, Technological dimension:
was wholly owned by Malaysians with fully • It uses Spray-drying method
paid up capital of $3.5 million and authorized • Selected blend of coffee beans is roasted in rotating drum
capital of $10 million • Beans are then finely ground through a mechanical grinder
• They got license for producing instant coffee • A strong coffee solution is then brewed under high
in 24 February 1981 pressure and temperature in a series of sealed extractor
• Total coffee market was $200 million out of columns
which instant coffee market was 30% i.e. $60 • The evaporated excess liquid is sprayed into a column of
million with a rapid growth hot air in a drying tower
• They acquired required machinery and • The coffee content falls to bottom line in a soluble powder
equipment to produce spray-dried instant form
coffee from raw coffee beans Marketing Dimension:
• The company’s objective was to produce a perfect substitute
for local ground coffee
• They are focusing to give consumers an instant coffee with
the taste and aroma of local ground coffee yet easy to prepare
• Its targeting the both instant and ground coffee users
Goals and objectives Guidelines
• Focus to give the consumers an instant the market which results in market
• Instant coffee
Local Ground Coffee
• Ground coffee Imported Roast and Ground Coffee