FEASIBILITY

STUDY
Background of case
The NULearning Resource Centre
(LRC)
• 5th floor of the Resource Centre
• 10-15-minute walking distance –
canteen
• rules prohibiting food and beverages in
the library space
• Hindrance factors: lack of convenience,
accessibility and a unique selling point
(USP)
Problem
Statement
Despite spaces allocated in the LRC for self-study and
group discussions, most of these spaces are often
overlooked by students and have undiscovered potential.
• either poorly managed or have dull tasteless settings

Students often make visits to cafes outside of campus-

creates additional costs for students who are trying to live
on a budget.
• sensitive to the ambience and quality of their learning
environments in augmenting their efficiency of studying.
 Entrepreneurial
Opportunity
Imperial College UK.

• a library coffee bar and themed co-working spaces

Library cafes:
International School of Beijing.
• incorporate foodservice elements into a modern library
setting, which creates a more immersive experience for
students looking for a place to engage in researching or
networking activities.
Co-working spaces with designated themes:
• Individual study pods or specially segregated areas
• to discuss assignments and hold meetings, and at the same
time an on-site campus attraction for students.

Komune Co-working, Bangsar.

Market segmentation and targeting
Geographic and Behavioral and
demographic psychographic

Library Users

Student and staff of Nilai

University

Mass market Coffee Enthusiasts

Students from
surrounding universities,
Residents of Nilai Town
(Visitors)

Undifferentiated marketing Niche marketing


STRENGTHS
On-campus
Affordable prices
Moderated environment
Conducive studying environment
Privacy for users and student exclusivity
OPPORTUNITIES
Unfilled niche in campus
Limited threat of new entrants
Rarity of co-working spaces in Nilai area
Engagement with Hospitality students
Trends of minimalistic modern architecture
Emerging urban contemporary lifestyle
Readily available business model
Richiamo, Taylors University Library
WEAKNESSES
Slightly distant from student activity route
Paid service
THREATS
Low consumer switching cost
High bargaining power by buyers
Limited spending power of students
High bargaining power by suppliers
Changing governance and policies by
University management
SWOT
ANALYSIS
PESTE Analysis
Politico-legal
• the rules and policies stipulated by the University management -
influences and limitations on the operating hours, prices, market
availability, etc.
• statutory bodies for food safety and sanitation - compliance with
measures, such as hazard analysis critical control points (HACCP)
and COVID-19 pandemic standard operating procedures
Economic
• purchasing power of the university - width of the potential is
dependent on the consumer spending power and purchasing habits
of students and staff
• the general Malaysian economy- influences the readiness of
youths to enter university and the allowance
PESTE Analysis Sociocultural
• popularity in urban contemporary lifestyles
- lifestyles of younger generations and city
dwellers who are sensitive to the ambience
and experience
• Social media-conscious individuals also
seek opportunities for social media
exposure.
• emergence of modern design-inspired
campuses around the world - demand for
better architecture and design
Technological
• cashless payments - automated billing via
student accounts in universities
• minimal resistance- information technology
(IT) literate
Environmental
• setting and ambience, rather than the natural
environment - popularity of minimalism in
coffee houses can results savings.
• location of the library and its distance from
the main route of the student activity -
marketability
Competitive Analysis – Strength-Weakness analysis
Proposed venture Coffee houses and beverage shops Co-working spaces
Library Coffee Bar and Co- Student Activity Room / Kotak Kita – Coworking
Competitors Canteen Beverage Stall Starbucks, Mesa Mall
working Space Common Room Space and Cube Shop

Location On-campus, library On-campus, canteen 5 minute drive from campus On-campus 10 minute drive from campus

Midscale caffeinated and

Budget caffeinated and Premium quality affeinated and Co-working space,
Product attributes noncaffeinated beverages, co- Public use space for students
noncaffeinated beverages noncaffeinated beverages refreshments
working space, refreshments
Price point Midscale Budget Premium Free Midscale
Nilai University staff and Nilai University staff and Mesa Mall visitors and Freelance and self-employed
Target market Nilai University students
students students residents individuals in Nilai area
 On-campus
 Affordable prices
 Well-known among  Affordable prices
 Moderated environment
 On-campus exisiting markets  On-campus
 Conducive environment
 Conducive studying
 Highly affordable by  Strong brand loyalty  Close proximity to
environment tailored for working and
Strengths students  High quality and wide student acitivity routes
 Privacy for users and studying
 Open-air environment assortment of beverages  Free-of-cost
student exclusivity
 Close to student traffic  Conducive environment  Available 24 hours a day  Set meals and menus
 Similarity with provided
for studying
Starbucks and Borders
model
 Inconsistent product
 High student traffic
 Off-campus
quality  Off-campus
 Slightly distant from  Unmoderated
 Questionable hygiene  Unaffordable for most  Lack of media exposure
Weakenesses student activity routes environment
 Inconducive university students  Lack of exclusive
 Paid service  Poor architecture and
environment for  Lack of privacy privacy
design
studying
Competitive Analysis - Porter’s Five
Forces
Porter’s Five Forces Intensity

Industry rivalry of existing competitors

Threat of new entrants

Threat of substitute

Bargaining power of buyers

Barganing power of suppliers

Strategies – Marketing Mix
7P Strategies Tactics

Offer ample menu options ranging caffeinated and non-caffeinated beverage

Rotate seasonal items or special menus
Product Offer simple and easy-to-eat treats in menu
Ambience and amenities of the working space
Complimentary free-flow simple refreshments
Campus advertising
Social media and intranet advertising
Promotion
Co-branding packages with the library
Collaborative workshops and events with Hospitality and Tourism students
Midscale price positioning
Price
Price-bundling with co-working space
Delivery services and takeaway
Place Food delivery services for external customers
Workshops and events venue for university activities
On-campus delivery and pickup. Complimentary refreshments for Co-working space and coffee Simple but ample menu with
co-working space users. bar as workshop avenues. seasonal rotations.
Strategies – Marketing Mix (cont.)
7P Strategies Tactics

Adapt service model of Starbucks

Offer sophisticated brewing methods
Process
Automated payment and check-in process
Semi-self-service system
Hire competent and skilled staff
People
Hire part-time staff from School of Hospitality and Tourism
Integrate design elements into branding
Physical Evidence Investing in capital expenditure that matches color scheme and theme
Create an environment resembling modern cafés and bookstore
Auto-billing and cashless Rustic and minimal design. Sophisticated brewing experience. Hospitality students as part-time
payment systems. workers.
 Q&A
End of presentation