Gardenia Course Hero PDF

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COLLEGE OF BUSINESSSECOND SEMESTER 2009/2010 SESSIONBPMM 2023MARKETING MANAGEMENTMARKETING PLAN :Gardenia Bakeries (KL) Sdn. Bhd.PREPARED FOR :DR. NURSIHA ALIASPREPARED BY :KONG PEI LING 126800CHEAH KAH WAI 128794NG LAY HONG 128803LIM PEI SIAN 128807SUBMISSION DATE: 15th MARCH 2010NO. TITLES PAGES1 ...

Description

COLLEGE OF BUSINESS SECOND SEMESTER 2009/2010 SESSION BPMM 2023 MARKETING MANAGEMENT

MARKETING PLAN : Gardenia Bakeries (KL) Sdn. Bhd. PREPARED FOR : DR.NURSI HAALI AS

PREPARED BY: KONG PEILI NG

126800

CHEAH KAH WAI

128794

NG LAYHONG

128803

LI M PEISI AN

128807

1

SUBMI SSI ON DATE:15t hMARCH 2010

NO. 1.0 2.0 2.1

2.2

2.3 2.4 2.5 2.6 3.0 3.1 3.2 3.3 3.4 3.5 3.6 3.7

TITLES Executive Summary Situation Analysis Market Summary  Target Markets 2.1.1 Market Demographics  Demographics Environment  Economic Environment  Natural Environment  Technological Environment  Political Environment 2.1.2 Market Needs  Price  Quality 2.1.3 Market Trends 2.1.4 Market Growth SWOT Analysis 2.2.1 Strengths 2.2.2 Weaknessess 2.2.3 Opportunities 2.2.4 Threats Competition Product Offering Keys to Success Critical Issues Marketing Strategy Mission Marketing Objectives Financial Objectives Target Markets Positioning Strategies Marketing Mix 3.7.1 Product

PAGES 4 7 7 8

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12 13 14 14 15 16 18 19 22 23 23 24 25 25 25 26 26 27 28 28

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3.8 4.0 4.1 4.2 4.3 5.0 5.1 5.2 5.3 5.4

3.7.2 Pricing 3.7.3 Promotion 3.7.4 Place Marketing Research Financials Break-Even Analysis Sales Forecast Expenses Forecast Marketing Control Contingency Plan Recommendation Conclusion Appendix and References

30 31 33 35 35 36 38 40 41 43 44 45 46

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1.0 Executive Summary Gardenia is a strong brand in Malaysia. Gardenia has produced a lot of kinds of breads such as the latest one-Butterscotch, Breakthru, Delicia, Twiggies and many others. In order to satisfied different level of customer, every Gardenia product has its own special features. For example, Gardenia Breakthru breads is not only bread, but consumers have the perception that it is a healthy food. It contains 38% less carbohydrates, 7.3x more dietary fibre, 15% less calories, 59% more proteins, low gylcaemic index (42), low gylcaemic load (6.5), prebiotic properties, low fat, no trans fat and no added sugar. The price of Gardenia breads is low and almost the same as others competitors. In fact, the pricing of Gardenia bread is controlled by the government. This is because of the ingredient of the bread, flour, which is one of the products that are under the control of the government in Malaysia. Gardenia makes widespread distribution either in urban or rural area to make sure everyone can have their breads. As all of us know, Gardenia baked products are well known by everyone. Gardenia has over 20000 outlets throughout Peninsular Malaysia. Their wide varieties of products are available in almost all hypermarkets, supermarkets and even neighbourhoods stores. Here, Gardenia seeks for market share through intensive distribution, a strategy in which they stock their products in as many outlets as possible. Their breads and cakes can be 4

conveniently obtained by consumers wherever and whenever consumers want them. Gardenia implements mass promotions. For instance, it uses mass media such as television to promote its products and to introduce new products to the customers while ensuring customers to remember about their existing products. Gardenia has used advertising strategies to promote its products. Among the various alternatives media, television advertising and newspaper are mostly used by Gardenia. In short, major advertisement of Gardenia’s bread have established Gardenia slogans as part of its popular culture, such as “It’s fresh! It’s good! So good…you can even eat it on its own! ”.

Brief History In 1969, an American named Horatio Sye Slocumm was sent by International Executive Service Corporation (IESC) to East Malaysia to start a bakery. Mr. Slocumm brought with him 35 years of baking experience with one of America’s leading chain of bakeries. Gardenia was born. Gardenia Bakeries (KL) Sdn Bhd rolled the first loaf of bread off its line in 1986. Within a short period of four years, it became the bread market leader with an astounding 99 percent brand recall rate and 80 percent top-of-mind recall. Gardenia’s range of products grew and evolved through the years, becoming better and better with each step. Leveraging on its brand strength, Gardenia produces variety of baked products to satisfy consumer’s demands.

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Gardenia has four factories which locate at Shah Alam, Subang, Puchong and another one. The factory at Puchong is specified in producing new products.

Gardenia has over 20,000 outlets throughout Malaysia, excluding Sabah and Sarawak. It does not have any outlets at Sabah and Sarawak. In addition, Gardenia owns more than 500 delivery vans in Peninsular Malaysia. Lastly, these are the details for Gardenia Bakeries. 

Toll-free line: 1800-88-3228.



Address: Lot 3, Jalan Pelabur 23/1, 40300 Shah Alam, Selangor Darul Ehsan, Malaysia.



Phone number: 03-55423228



Fax number: 03-55423213



Email address: [email protected]

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Website: http://www.gardenia.com.my/

Achievement 2001: Best supplier 2001 (Category: Bread), Dairy Farm Giant Retail 2002: Quality Management Systems ISO 9001, SIRIM QAS International Sdn Bhd 2002, 2003/2004, 2005: Superbrands Awards for 3 consecutive terms, Superbrands Malaysia 2006: Superbrands Consumers’Choice Award, Superbrands Malaysia

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2004: National Award for Creativity and Innovative, Malaysian design Technology centre 2005: MS 1480: 1999- Food Safety according to Hazard Analysis and Critical Control Point (HACCP) System, SIRIM QAS International Sdn Bhd 2005: Universal Integrated System- ISI2020, Research Institute of Standards in Islam 2006, 2007: Low Glycaemic Diabetic-Friendly, Diet friendly Seal, Glycemic Research Institute, Washington D.C. 2007: Highly Commended Product Award, Malaysian Institute of Food Technology (MIFT)

2.0 Situation Analysis Gardenia Bakeries (KL) Sdn.Bhd rolled the first loaf of bread off its line in 1986. Within four short year, it become the bread market leader. Gardenia has for many years been at the forefront of producing fresh, tasty and yet nutritious bread. Gardenia’s flagship bread has improved through the years, becoming better and better each step of the way. Today ,it is known as Original Classic and is enriched with 14 vitamins and minerals. To meet the changing expectation of today’s customers, Gardenia is constantly adopting industry innovations, new baking techniques and product development.

2.1 Market Summary 7

Gardenia possesses good information about the market and knows a great deal about the common attributes of the most prized customer. This information will be leveraged to better understand who is served, what is their specific needs are, and how Gardenia can better communicate with them.

Target Market The target markets of Gardenia Bakeries Sdn. Bhd are customer market, reseller market, and also government market. The customer market consists of individual and household while reseller market consists of retailer, supermarket (Carrefour & Tesco), and convenience stores (7-Eleven and stores at petrol station) and finally the government market which includes the hospitals.

2.1.1 Market Demographics The profile of the typical Gardenia customer consists of the following : demographic

environment,

economic

environment,

natural

environment,

technological environment, political environment.

Demographics Environment Demography is the study of human populations in terms of age, density, gender, location, occupation, race,

size

and

other

statistics.

Basically,

demographic environment has major implications for business. This is because the demographic environment involves people, who play an important role in making

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up the markets. Generally, populations are becoming more educated. The rising number of educated people will increase the demand for quality products especially when health is highly concerned nowadays. Therefore, Gardenia has come out with Gardenia Breakthru, a health-conscious product. Gardenia Breakthru is formulated with beta-glucan that can help to lower cholesterol levels and stabilize blood glucose levels.

Economic Environment The economic environment consists of factors that affect consumer purchasing power and spending patterns. Consumers at different income levels will have different spending patterns. For upper-class and middle-class consumers, they have a better standard of living. They are willing to go for the good quality products. Consequently, although food, such as bread, is just daily basic needs, they tend to select more sophisticated products. For instance, consumers with higher income will choose more expensive bread with special features such as Toastem. On the other hand, the underclass consumers usually make further consideration before buying to reduce their expenses when purchasing. So, they may possibly buy normal white bread as their daily meal. Thus, the economic forces will also affect a company’s marketing plans.

Natural Environment The natural environment involves the natural resources that are needed as inputs by marketers or that are affected by marketing activities. Nowadays, the 9

world environmental pollutions have reached an alarming level. Hence, marketers should be aware of several trends in the natural environment especially the deteriorating pollution. For example, manufacturing company like Gardenia commonly produce toxics gases and chemical wastes during their daily production. They also use non-biodegradable plastic bags as packaging materials. All activities leads to the pollution of the environment. So, to be environmentally responsible, the company should develop better solutions to reduce pollutions. However, it needs vast fund to do so causing the company to face financial burdens and indirectly posing threat to the company.

Technological Environment Technological environment consists of the forces that create new technologies, new products and marketing opportunities. The recent technology boom has created a new digital age. For example, the explosive growth in computer, telecommunications and information has had a major impact on the ways companies deliver value to their customers. For Gardenia, they apply computer systems to manage its operation such as tracking inventories, recording accounting transactions, and storing customer’s profiles. The usage of information technology has smoothened and fastens the process of the commercial activities. This enables the company to become more competitive as well. Thus, in this contemporary, if manufacturing company such as Gardenia ignores latest technologies, their business may decline.

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Political Environment The political environment composed of laws, government agencies, and pressure groups that influence or limit various organizations and individuals in a given society. Basically, marketing decisions are strongly affected by the developments in the political and legal environment. The increasing emphasis on ethics and socially responsible actions encourages for-profit organizations to implement their social obligations. For instance, Gardenia has made positive response and they take this responsibility by supplying bread free of charge to old folk homes, disabled people centres and other charitable organizations. By doing so, a better public image of the company can be built. Indirectly, this also help the company to gain exposure to more marketing opportunities.

2.1.2 Market Needs Gardenia has produced a lot of kinds of breads such as the latest oneButterscotch, Breakthru, Delicia, Twiggies and many others. Every product has its own special features.

Price The price of Gardenia breads is low and almost the same as others competitors. One of the examples is the white breads of Gardenia (jumbo size) which have

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more slices but at a cheaper price.

Quality For the company’s designing marketing plans, marketing management takes other company groups into account. For example, Gardenia Bakeries Sdn. Bhd makes Research and Development to be the top of Malaysia’s favourite bread, and also innovators. Gardenia invests heavily in R&D. Its latest product, Gardenia Breakthru, demonstrates its commitment to giving only the very best to their customers. Gardenia Breakthru passed extensive clinical tests at the Glycemic Research Institute in Washington D.C. and are certified Diabetic-Friendly and DietFriendly. This latest result reaffirms Gardenia Breakthru’s extraordinary qualities.

2.1.3 Market Trends Nowadays consumers are generally health conscious and prefer bread with nutrients and less sweet.Gardenia Malaysian believes strongly in ensuring that our consumers enjoy the finest quality and freshest bread daily. We take our Gardenia Assurance very seriously and consumers of Gardenia products are aware of our commitment to the highest quality, food safety and freshness. To cater to Malaysians' changing demands and lifestyle needs,

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Gardenia's marketing and R&D teams are constantly researching and exploring new product innovations. For example, we were the first in Malaysia to identify an unmet demand in the market for low glycemic index bread to meet the special dietary needs of diabetics as well as for weight management. Even though awareness of glycemic index and its correlation to our blood sugar level (low glycemic index foods result in slow release of sugar in the blood and is hence diabetic-friendly) is still in the infancy and as such, low glycemic products are still considered a niche market, figures show that diabetes in Singapore is unfortunately on the upward trend and this is a group of people whose needs are not sufficiently addressed. For example, for Gardenia Breakthru breads, it is not only a bread, but consumers have the perception that it is a healthy food. It is consists with Beta Glucan which helps to lower cholesterol, this has been clinically tested and certified Diet Friendly by the Gylcemic Research Institute, Washington D.C because it has Low Adipose Tissue Fat-Storing Capacity and will assist our body in having better control over obesity. It is also certified as Diabetic Friendly which helps to maintain stable blood sugar level that typically follows a meal. It is also have 38% less carbohydrates, 7.3x more dietary fibre, 15% less calories, 59% more proteins, low gylcaemic index (42), low gylcaemic load (6.5), prebiotic properties, low fat, no trans fat and no added sugar too. The market trend are showing continued growth in all direction of healthy lifestyle.

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2.1.4 Market Growth The increases in the cost of raw materials and energy have been remarkable this year. What strategy did Gardenia International utilize to reduce the impacts of these costs on profitability? How successful have you been in implementing such measures? Have you had to increase the prices of your products this year?

Over the past two years, there have been continual upward price pressures especially for flour and fuel, which we have tried to absorb initially. This has led to a great increase in the costs of operations and therefore a review of the pricing of the products. As the market leader in the bread category however, Gardenia is mindful of the fact that many Malaysian depend on us for their daily bread and as such, we have tried to contain the price increase to so as to minimize the impact of the rising inflationary costs amongst our fellow Malaysian.

2.2 SWOT Analysis The following SWOT analysis captures the key strengths and weaknesses within the company and describes the opportunities and threats facing Gardenia.

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2.2.1 Strengths The strengths of Gardenia in Malaysia are that it has brand strength in marketing. Gardenia has built up a very strong brand in Malaysia, it almost generic to the product categories. Since Malaysian is mind-set, when they think about bread, they think about Gardenia. As we can seen its product is being sell in whole Malaysia, which is nationwide. Everyone can get it easily from grocery shop, minimarket, supermarket and hypermarket. Besides that, Gardenia also has the strength in product innovation, as we can seen that it continuously introducing new product and keep bringing more choices to the customers. Moreover, Gardenia, in their move to develop health bread has teamed up with a group of a researchers attached to a medical faculty from a local university, to formulate bread using special functional ingredients. On the other hand, Gardenia is involved in social work. Every day, it deliver complimentary fresh bread to over 45 charitable organizations like old folks home, orphanages and centers for the disabled, eight of which have been on Gardenia’s delivering list since 1991. To continue maintain this strength, Gardenia should do more promotion through media such as newspaper, radio and television. The advertisement should contain creative and funny element so it could easily attract more customer. To make the product fully nationwide, Gardenia should increase more and more retailer in the future in order to reach its product to every Malaysian.

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2.2.2 Weaknesses The weakness of Gardenia is about its packing. Until now, the baked products that produce by Gardenia are still weak in its packing, which is not enough attractive. Conversely, the packing of High 5 Bread is more attractive if compare with Gardenia. Here are some sample and comparison between Gardenia and High 5 according to the packing.

By looking to the pictures above, it is obviously that the packing of High 5 are more attractive than Gardenia. The packing of High 5 is more attractive with its colorful plastic bag and the vivid design. To overcome this problem, Gardenia should put more effort on the packing. For example, Gardenia can distribute survey form to the public by asking them 16

what kind of packing could more attractive. After that, Gardenia could hire some designer to design the packing that they desired. Why packing is so important? It is because for first buyers who never know about the product, they will buy the product based on the packing. That is why Gardenia should improve its packing in order to gain competitive advantage.

2.2.3 Opportunities

Increase awareness of health and fitness

Nowadays, the number of Malaysian suffer from diabetes are increasing day by day. Gardenia is working closely with the National Diabetes Institute (NADI) on the “Fight Against Diabetes” programme, a major educational drive to bring public awareness on the prevention and management of diabetes. And now Malaysian has more knowledge in nutrient and they are emphasize the nutrient contains in food and the calories of food. Before they going to buy the food in package they will look at the label of contains nutrient in the package to help them choose food which is more wisely. They will watch for these key terms and know what they mean.



"Free" has the least amount of a nutrient.



"Very Low" and "Low" have a little more.

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

"Reduced" or "Less" always means the food has 25 percent less of that nutrient than the reference (or standard) version of the food.

Malaysian people are more concern to the calories, fat, cholesterol and so forth they taking in the food daily. For example, they try to eat food less salt, sugar and oil to keep them healthy. Thus, Gardenia will keep working hard to produce more healthy bread in order ...