Group 2- Mahashivalini(1191100153)-coolblog PDF

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BCMCONTEMPORARY MANAGEMENT AND ENTREPRENEURSHIPTrimester 2, 2020/2021 (Tri, 2020) Lecture Section: ​ ​ L Lecturer: ​ Ms. Geeta Krishnasamy GROUP ​: ​ 2 Project Title: ​ COOLBLOGName ID Contribution Signature*1.​ ​Maha Shivalini Vivagaran1191100153-Pages 7,8,9,12,14,22,23,24 and 26 -Editing assignmen...

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BCM2010 CONTEMPORARY MANAGEMENT AND ENTREPRENEURSHIP Trimester 2, 2020/2021 (Tri, 2020) Lecture Section: L3 Lecturer: Ms. Geeta Krishnasamy GROUP: 2  Project Title: COOLBLOG

Name

ID

Contribution*

Signature

-Pages 7,8,9,12,14,22,23,24 and 1. Maha Shivalini

1191100153

Vivagaran

26 -Editing assignment -Pages 3,7,8,13,14,23 and 30

2.Jessica Joyce

1191100387

-Editing assignment

Jayarajah

-Pages 6,7,20,21 and 29 3.Sashvnee Pillay

1191100442

-Editing assignment

Sivapragasam

-Pages 9,10,11,17,18,24,25 and 4. Yasmin Humaira

1181100141

Binti Aszaham

27 -Presentation -Pages 13,14,26 and 28

5.Ilavarasi Annah

1181101556

-Presentation

Dorai

1

TABLE OF CONTENT INTRODUCTION

3

1.0 Visualization part 1.1 Business model canvas

4 4

1.2 Analysis – Current Business Model

1.2.1 9 ELEMENTS CUSTOMER SEGMENTATION VALUE PROPOSITION CHANNELS CUSTOMER RELATIONSHIPS REVENUE KEY RESOURCES KEY ACTIVITIES KEY PARTNERSHIP COST STRUCTURE ANALYSING OF THE CURRENT COOLBLOG CONDITION 1.2.2 1.2.3 1.2.4 1.2.5

6

6 6 7 7 8 8 9 9 12 13 14 14 14 15 17

2. NEW BUSINESS MODEL

19

2.1 Visualization Part

19

2.2 Analysis Part 2.2.1 9 ELEMENTS CUSTOMER SEGMENTATION VALUE PROPOSITION CHANNEL CUSTOMER RELATIONSHIP REVENUE KEY RESOURCES KEY ACTIVITIES KEY PARTNERSHIP COST STRUCTURE ANALYSING OF THE NEW COOLBLOG CONDITION 2.2.2 2.2.3 2.2.4 2.2.5

20 20 20 21 22 23 23 24 25 26 26 27 27 28 29 30

3.0 PROJECT LOGBOOK

35

4.0 REFERENCE

36

2

INTRODUCTION What is Coolblog? Coolblog is a Malaysian kiosk-based café and also a juice bar. They serve various types of delicious beverages such as fruit juices, teas, chocolate drinks, and smoothies. Coolblog was founded in 2005 by Jerrene Pang and was first incorporated in Singapore. Jerrene Pang is the Coolblog group's Executive Director. In Singapore and Malaysia, Coolblog is the first to set new ground with desserts and drinks with 25 flavours and 300 product ranges. Furthermore, Coolblog had also outlined a three-year planned expansion to expand local markets to 150 outlets in Malaysia and Singapore. They had successfully reached that milestone in 2011. After that, they had set another milestone to 400 more outlets in 2 years. There is no doubt that they could successfully execute the plan as Coolblog is becoming quite famous in Malaysia and it is also rising quickly internationally. In 2008, Coolblog moved its headquarters to the Malaysian city of Johor Bahru and opened its first Coolblog outlet in Sutera mall. In the year 2009, they opened their very first Franchisee outlet in Batu Pahat Mall which is also in Johor. Not only that, but they had also opened their very first corporate outlet in Giant Shah Alam in Klang Valley. In 2010, the products of Coolblog were rated 100% Halal by JAKIM agency in Malaysia. In the year 2011, as mentioned earlier, Coolblog had successfully met their vision to reach 150 outlets. Moreover, they had also opened their very first shoplot concept outlet in Taman Sri Andalas, Klang. In 2012, Coolblog had received 3 awards. The first award is by the Golden Bull which is the 2012 100th Outstanding SME. The second is by SME Corp which is the SME Rising Star 2012 reward. The third reward for that year was the Best Booth for HALFEST 2012 (Halal Festival, PWTC). In 2013, Coolblog had successfully reached a number of 300 Coolblog outlets and had also received 2 other awards that year. The first award was the SME Brand Excellence 2013, and the other was the Best Pavilion for HALFEST 2013. In the year 2014, they were awarded as the Best Special Design Booth for FIM (Franchise International Malaysia, June ‘14). Moreover, in 2014, Coolblog was invested by a private equity firm, Ekuiti Nasional Berhad (EKUINAS) on 24th July that year. In addition, Coolblog also had joined the Food & Beverages portfolio which is under the Integrated Food Group Sdn Bhd (IFG). Coolblog was awarded another award which is the Malaysia EY Women Entrepreneur of The Year 2015 in the year 2015. In 2016, they were awarded as the Best Special Booth Design for the Franchise International Malaysia 2015 (FIM, May ‘16). Today, Coolblog has a gross sales volume of RM 70 million and more than 1500 employees.

3

1.0

Visualization part

1.1

Business model canvas

Customer segmentation

Value propositions

Demographic towards the age

Design : colourful drinks, with -Website

of 16 years old to 40 years old.

chocolate

Teenagers who are the

chips,

Channels smoothies, -Facebook

pudding, cheese

-Instagram

ages of 16-19 years old,

-

who normally love to

Price : price range is from

buy cold beverages.

RM3.80 to RM7.30 for per

School

students, drink only.

university students -

-

-Twitter

Purpose of the company : -

Adults between the age

-

To attract as many

of 20-40 years old who

customers

love

creativity in making the

to

have

it

with their

sometimes.

beverages, and to make

Locations : people who

a

are staying in towns or

business.

city,

nearby

profit

for

their

to the

CoolBlog stall or near

Pain relievers : Secondly,

to any shopping malls.

every Coolblog outlet uses the concept of touch and go which

Mass market segmentation

the customer orders the drink

Niche market - Coolblog and goes once the order has companies are referring to the

been served since their outlets

customers which are highly

are very small, located inside

developed with their specific

the shopping malls.

needs. For example, teenagers nowadays prefer drinks which

Gain

are sweet, iced and colourful

companies must also upgrade

with varieties of flavours.

their outlets into a bigger and

creators

:Coolblog

larger space for the customers.

4

Customer relationships

Revenue

Key activities

-Personal assistance

-Service revenue

Price

-Self service

-Transaction revenue

-Bundle Pricing Strategy -Price Skimming Strategy -Promotional Pricing Strategy Marketing -Online Marketing Strategy -Viral Marketing Strategy -Location

Based

Marketing

Strategy Innovation -Product Line Extension Branding -Brand Ambassador -Emotional Branding -Public Relations Campaign Key partners

Key resources

Cost structure

-Ekuinas

-Physical resources

-

Rental

-Archipelago

-Human resources

-

Royalty fees

-Intellectual resources

-

Utilities

-Financial resources

-

Employee salary

-

Raw Material

5

1.2

Analysis – Current Business Model

1.2.1

9 ELEMENTS

1. CUSTOMER SEGMENTATION Coolblog focuses on demographics towards the age of 16 years old to 40 years old. This is because customers at the age range of 16-40 years normally visit this stall. Customers who are the age above 40 years old do not normally visit this stall as we know that this stall normally sells ice blended drinks and other cold drinks which are not their favourite. Besides that, the customers that visit this stall are normally teenage girls and boys. The percentage for teenage girls will be about 60% and for teenage boys who visit this Coolblog stall will be about 40%. In Coolblog stall, it does not differentiate between the types of their customers but they focus well into the wide community of their customers and seek for their needs and concerns. Besides that, is the Niche Market. The niche market refers to a segment of customers with highly developed features and very specific needs. According to this, Coolblog companies are referring to the customers which are highly developed with their specific needs. For example, teenagers nowadays prefer drinks which are sweet, iced and colourful with varieties of flavours. From this segmentation, Coolbog company can build and communicate highly targeted messages that resonate with different customer groups, but not with others. This company can resonate with the specific customer groups, which are mostly teenagers boys and girls who visit Coolblog often. Coolblog can also choose the best communication segment, to advertise their products, especially new releases as well as promotional beverages, through social media, such as Facebook, Instagram and Twitter, since people nowadays usually use these social medias to reach the maximum customers. 2. VALUE PROPOSITION In this Coolblog company, they sell drinks with a variety of designs, but their ingredients are mostly out of stocks. For example, newly released drinks will be out of stock in one or two weeks, depending on the number of the customers. Besides that, the locations of their stall are mostly located inside the malls which helps the customers to visit more often if they are in the mall. On the other hand, is the cost reduction. Under this, CoolBlog companies do not normally have promotions due to the lack of the customers who visit their stall. However, they do sell their beverages under a low price where they sell them from RM3.50 - RM7.50 which is already considered affordable to the

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customers. Besides that, the convenience of the beverages that they had used to serve the customers. The employees normally serve the customers in plastic cups and plastic straw. 3. CHANNELS A distribution channel is a chain of companies or intermediaries that pass through a good or service to the final buyer or the end user. Distribution networks may include wholesalers, distributors and internet users. It is the way to reach the intended consumer by all goods and services. It also describes the route payments from the end user to the original seller. Short or long distribution channels may rely on the number of intermediaries required to deliver a product or service.

● Website Web pages and their related contents are collected (also written as web sites) which are defined by a common domain name and published on at least one web server. First of all coolblog advertises its product by it’s own website which is h ttps://www.coolblog.com.my/about-us. This is where the management advertises coolblog further expresses its vision and mission .Moreover this website advertises the company background, pricing,franchise application , outlet location ,news currently about the company ,and their contact for headquarters address.

● Social media In the use of social media marketing, businesses can allow consumers and Internet users to post content created by users (e.g. online reviews, feedback on products etc.) and so on (also known as "earned media,") instead of using marketers-based advertisement copy. The use of a marketing media may be a means to promote a product or service. social media marketing. Cool blogs use facebook, instagram and twitter because nowadays people are using those platforms more efficiently. Furthermore they post most of their promotion in those social media platforms. The customer services will respond to the customers' complaints through this platform.

4. CUSTOMER RELATIONSHIPS Customer relationships define how a business interacts to enhance the experience of their customers and build a mutually beneficial partnership with the customer after the initial order. Coolblog’s first category of customer relationship is personal assistance where an actual individual will advise and guide the customer during a purchase. For example, when a customer is making a

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purchase from a Coolblog kiosk for the first time, the staff can guide them to choose base, flavours, and toppings of their beverages. Furthermore, these relationships can be maintained by customer service managers through email, social media or call centres. For example, if a customer has any enquiries or feedback, they can directly contact Coolblog through Facebook at their official page as shown in appendix 0.3, email at [email protected] or call their hotline at 1700-81-9066. Next is self-service where the company has no direct interaction with customers and gives them everything they need to help themselves in such a mode of customer relationship. For example, customers can order their beverages from Coolblog by themselves using the Foodpanda app.

5. REVENUE Revenue streams reflect different sources from which a corporation receives money from the selling or supply of goods. The types of profits a company reports depend on the type of business carried on by the company. The sales accounts of retail companies are typically more complex than those of service providers.

● Service revenue So in total the staff are paid from the amount the customers pay for the drink which are made by the staff of the coolblog.As for example Coolblog have also provided their services in FOODPANDA and they charge for RM 4.99 which can be stated as service revenue. ● Transaction based revenue These revenues are based on predictable goods sales. The income is derived from a customer's transaction. For example, the transactions are generated by a customer in a clothing store, who buys a new jacket. This type of revenue is often less attractive than the recurring model, since customers need action. Coolblog uses cash for transaction-based revenue in our business. Cash is an immediate cash payment.

6. KEY RESOURCES There are four key resources that Cool Blog has been applying to the business. It is the most important asset required for a business model to work.

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● Physical Resources Cool Blog owns 256 branches of retail stores in Malaysia. Most of them are placed in shopping malls, kiosk-size, and even collaboration with petrol stations. All the outlets used the same theme and design while renovation, this is to ensure recognition of the public.

● Human resources Cool Blog had emphasis on basic training for all the employees. New employees will be positioned as trainees to learn how to operate the business.

● Intellectual resources Coolblog is a brand. It also has its own partnerships which can be seen in the key partnership, and customer databases which are diverse.

● Financial resources In terms of revenue, Cool Blog will gain walk in sales and food delivery app sales. For example, Food panda is one of the apps that Cool Blog participates in to receive delivery orders from customers. At the same time, Cool Blog also uses Shopee as one of the online platforms to create revenue. Customers purchased from the official Cool Blog in Shopee in terms of vouchers to redeem in the physical store.

7. KEY ACTIVITIES

Key activities are one of the important elements of a business. This is because it represents what the company required to do so the business will be guided in the right path and operate successfully. Key activities are important in a business so it can create and offer a value proposition, reach the markets, maintain the customer relationships as well as to earn a greater revenue.

● Price Bundle Pricing Strategy Coolblog has been applying bundle pricing in their limited time offer series drinks. For example during the month of Ramadan 2020, Coolblog came out with a new limited offer series drink called Tradisi Cool Ramadhan and there has been a bundle pricing which if we bought two drinks we can get RM 10 instead of paying for the actual price. This has been shown in the appendix 0.6. Price Skimming Strategy 9

Whenever Coolblog releases a new drink series, the prices are more likely to be expensive compared to the usual product that they sell. Promotional Pricing Strategy Coolblog also has been applying promotional pricing strategies in their product. For example, during the independence day of 2020, Coolblog sold their new series with the price of RM 8.80 but they reduced the price into RM 7.80 for a limited time as shown in the appendix 0.7. ● Marketing Online Marketing Strategy Coolblog had been using this strategy throughout a few social media platforms to reduce their marketing cost. As of the year 2021, they had accumulated up to 96'133 followers on Facebook, 57.8k of followers on Instagram and 1193 followers on twitter. These platforms allowed them to provide exposure with video graphic and infographic content. Viral Marketing Strategy Coolblog had been using this strategy especially on the Instagram platform. It is used to gain word of mouth via the internet. For example, they used this strategy upon their new product, "UNICOOL", by hosting a "Unicool Makeup Challenge" on instagram as shown in appendix 0.8. They gained a lot of followers as this strategy attracted influencer, models, and public users to have an online interaction about the online-challenge they hosted. Meanwhile, boosting the awareness of the latest product line-up. Location Based Marketing Strategy Coolblog had been using this strategy to actively engage with potential customers. For example, all Cool Blog's stores are accurately located on Google Maps and Waze mobile navigation applications. This enables Coolblog to use this data as an input to be more accurate when referring to future target geographic segmentation. On behalf of consumers, they are easier to access to the availability of the product.

● Innovation Product Line Extension Coolblog has been upgrading their menu and new product from time to time. The purpose of applying such strategy is to show how innovative they are at designing and creating more variants of product to suit different market segments. Festival products are also one of the innovative products to suit local festivals. For example, 16 May 2018

- Cool Kathira launched for Ramadan

19 June 2018

- Cool Float Series launched for selected outlet 10

2 July 2018

- Oppa Cheese Series launched

17 Sept 2018

- Gula-la Melaka Series launched

14 Nov 2018

- White Chocolate Series launched

14 Jan 2019

- Hari Harimau Black Tiger Premium Series

29 May 2020

- Cheesy Pinky Berry Series launched

15 Aug 2020

- Merdeka Kaw Kaw Series launched

2 Nov 2020

- Sawadee Cool Series 2 launched

2 Dec 2020

- Merry COOL XMAS Series launched

2 Jan 2021

- Blue Coral Series launched

● Branding Brand Ambassador Coolblog had been paying few influencers as their Brand Ambassador, such as Heliza Helmi (official facebook page) with 1.8 million of followers, Elfira Loy and Amar Baharin who is a well known-Malaysia actress and actor. They frequently not just get invited to attend public events but also to agree that Coolblog will use th...