j.co donut & coffee marketing presentation

ZULFADLI BIN YUSMAR 4151004191

ZULKARNAEN BIN ZAINAL ABIDIN 4151006631MUHAMAD SHAFIQ BIN AMSIR 4151002751NUR LIYANA INSYIRAH BINTI SAAYA 4151006601AKMAL SYAFIQ BIN MOHARMI 4151003831NUR ELYANA ZALINI BINTI AHMAD ZULHILMI 4151006131MUHAMAD AZLIE BIN MOHD AZZHAR 4151003941NIK MUHD HANIF FATHI  4154009731

PRINCIPLES OF MARKETING | JMS1263

• J.CO Donuts & Coffee is a franchise of café restaurant chains best known for their tasty donuts, coffee and frozen yoghurt.

• Owned and managed by the Johnny Andrean Group

• Started in Indonesia over 10 years ago on June 26th, 2005

• Today – 187 stores in Indonesia, 12 in Malaysia, 38 in Philippines, 6 in Singapore

EXECUTIVE SUMMARY

• Chain of J.CO Donuts & Coffee in Malaysia consisting of 11 stores, 4 in Johor Bahru, 3 in Selangor, & 1 each in KL, Melaka, Penang, Seremban

• First store in 2007• Products range from 26

different flavors of donuts, beverages such as coffee and frozen yoghurt

MAIN FOCUS

• Current Marketing Situation of J.CO• SWOT Analysis of J.CO• Objectives and issues faced by J.CO• Marketing entry strategy especially

into the Malaysian market• Action program displayed in a Gantt

Chart• Budget for marketing• Marketing controls done by J.CO

OVERVIEW

MARKET ENVIRONMENT

Market Description

Product Review

Competition

Distribution

•J.CO Donuts & Coffee, Krispy Kreme, Dunkin’ Donuts, Big Apple Donuts and Coffee.

•Local and international • Industry : Café Shop •Product : Donuts, Coffee and yogurt•Through Store and outlet branches

MARKET DESCRIPTION

• Main product : Donut, Coffee and Yogurt• 28 flavors (Variety type and taste) • Hot and cold beverage (Coffee & Frappe)• Price range of Donut

o RM 2 – 4 (ala carte)o RM 14-18 (Set)

• Price range of Beverageo RM 8 – 17

• Using an uniqueness name – ‘Tira Miss U’

PRODUCT REVIEW

•Company that sale Donut and Coffee in Malaysia : Krispy Kreme, Dunkin’ Donuts, Big Apple Donuts and Coffee.

•Different ingredient, quality, and price range.• J.CO Donuts & Coffee price range is the highest

COMPETITION

• Distribution Channel : Store Branches and Outlet

• 260 J.CO Donuts & Coffee outlet around Asia

Malaysia [2007]Singapore [2008]Philippine [2013]

• 11 outlet in Malaysia

DISTRIBUTION

MARKETING ANALYSIS

Market Segment• Geographic• Demographic• Psychographic• Behavioural

Target Market

Positioning

• Urban environment• Mega Mall with positive

background• 11 J.CO Donuts & Coffee

café in Malaysia• Johor Bahru [4] • Selangor [3]• Kuala Lumpur | Seremban|

Penang | Melaka [1]

Johor Bahru36%

Kuala Lumpur9%Melaka

9%

Penang9%

Selangor27%

Seremban9%

Geographic segmentation by state

Johor Bahru Kuala Lumpur Melaka PenangSelangor Seremban

GEOGRAPHIC

Low Income Rate20%

Medium Income

Rate35%

High Income Rate45%

Demography segmentation by customer's income status

Low Income Rate Medium Income Rate High Income Rate

• Price range of J.CO Donut & Coffee product

• Teenagers – Senior Citizen is group of customer that J.CO Donut & Coffee focusing

• Provide variety type of food that suitable for stage of age

DEMOGRAPHIC

• Knowing customer’s personality and life style

• Malaysian people are crazy about foods and dessert

• Life style of having a meal at café

Urban Area70%

Rural Area30%

Psycographic segment based on J.CO Donut & Coffee Background

Urban Area Rural Area

PSYCHOGRAPHIC

• Consumer needs• Provide variety type of foods and

beverage that can satisfy customer • People are love café that have

relaxing ambient and good environment

• High quality of foods that has been prepared with good hygiene level

BEHAVIORAL

• The characteristic of J.CO Donut & Coffee’s customer

a) Age : Teenagers – Senior Citizen Suitable foods and beverageb) Income Status : Medium to high rate of incomePricy but come with high quality

product.c) Peoples that love snack

TARGET MARKET

• To attract customer attention and interest

J.CO Donut & Coffee maintain and ensure that their food are in a high quality.

Giving a great and fast service

Priorities the hygiene level

POSITIONING

SWOT ANALYSIS

Strength Weaknesses Opportunity Threat

STRENGTH

J.CO DONUT & COFFEE

DUNKIN’ DONUT STRATEGY

• Quality donut

• Innovation with their product line

• More to relax and family concept

• Change new donut every 2 hours

• Lower price than competitor

• Selling fast and good coffee at good value

• Price: Price skimming strategy

• Product: All ingredient are import

• Promotion: Attractive offer during festive

• Place: High class

WEAKNESSES

J.CO DONUT & COFFEE

DUNKIN’ DONUT STRATEGY

• Lack of promotion to develop more loyal

• No online ordering or delivering

• Expensive product

• Lack low calories options

• Lack of marketing effort

• Using social media for promote

• Strong marketing strategy/analysis

OPPORTUNITIES

J.CO DONUT & COFFEE

DUNKIN’ DONUT STRATEGY

• Further expansion in new location

• Wide range product more preferred by consumer

• Offer attractive promotion and offer

• Online sale

• Menu diversification

• More strategic place for new outlet

• Changes in social pattern and lifestyle

THREAT

J.CO DONUT & COFFEE

DUNKIN’ DONUT STRATEGY

• Number of competitor

• Changing taste of consumer

• Equipment breakdown

• Number of competitor

• Unhealthy lifestyle

• Maintain product quality

• Produce new flavor

VISION & MISSION

Peacock on J.CO Donut & Coffee logo represents their corporate Vision &

Mission

VISION

To establish J.CO Donuts & Coffee as the foremost International Premium Donuts and Coffee brand.

To be the trend-setting lifestyle in the Donuts & Coffee industry.

To be the right company for the right people who want to achieve their dream.

MISSION

To provide premium quality donuts & coffee

To encourage people to attain their dreams To put customers as our first priority To commit ourselves in giving excellent

service sincerely To provide perfect locations for hanging

out

OBJECTIVES

• J.CO Donuts & Coffee plans to grow the number of customers by 25% by the end of 2015

• They plan to also Increase revenue from existing customers by 30% in 2 years

• To widen their franchise reach by opening 2 more outlets in Kedah and the East Coast by 2016

ISSUES

J.CO Donut & Coffee did have an issue about several thing such as shortage of workforce in Malaysia and the imported ingredient are whether damage during shipping or held by the authority for a long time until the ingredient is unusable

MARKET ENTRY STRATEGIES

FRANCHISING STRATEGY Franchising is when one company supplies another with intangible property and assistance for a set time. Franchising is common in the service sector for example, hotels, car rental companies and restaurant chains. Franchising can be a low-cost, low-risk entry mode that allows for rapid geographic expansion.

MARKETING MIX

Product Price

Promotion Place

PRODUCT

CORE PRODUCT(Benefit)

Core Product: Donut and Coffee

(Food and Beverages)

Augmented Product:• After sales: Call

center & customer service center

• Pricing: Varies (Cash Transaction Only)

• Warranty: None offered

Actual Product:• Brand name: Varies• Styling: Varies• Feature: Light donut

and healthy beverages• Quality: Daily fresh

and high quality ingredient used in JCO Donut Product

• Packaging: A box of 12 pieces, 6 pieces and 3 pieces available while beverages is available by plastic cup and mug.

PRODUCT

PRODUCT28Different

Topping

PRODUCT28Different

Beverages

PRICE

Price skimming STRATEGY Premium price STRATEGY A premium pricing strategy involves setting the price of a product higher than similar products. This strategy is sometimes also called skim pricing because it is an attempt to “skim the cream” off the top of the market.

PROMOTION

Pull strategy (Promotion Mix Strategy)• Use social media network to advertise their

product in order to create a stronger consumer demand.

• Choosing sales promotion strategy and public relations strategy such as corporate social responsibility to promote their products.

PROMOTION

PLACE

PROVIDER CUSTOMER

Direct Distribution To Consumer

PLACE

IDEAL STORE LOCATION FOR J.CO DONUT & COFFEE

Near to the

entrance

Shopping Mall

Ground Floor

PLACE

Johor Bahru36%

Kuala Lumpur9%Melaka

9%

Penang9%

Selangor27%

Seremban9% Johor 4

Kuala Lumpur 1Melaka 1Penang 1Selangor 3Seremban 1

CURRENT NUMBER OF J.CO DONUT & COFFEE STORE BY STATE

STRATEGY ALTERNATIVES

Product Life Cycle (PLC)

BCG Growth-share Matrix

Five Forces Driving

Profitability

Product-Market Expansion Grid

PRODUCT LIFE CYCLE (PLC)

Whenever J.CO Donut & Coffee product reach the some level of their maturity, J.CO Donut will either replace it with new product or withdrawn it from the market.

BCG GROWTH-SHARE MATRIX

Boston Consulting Group (BCG) Growth-share Matrix

FIVE FORCES DRIVING PROFITABILITY

Rivalry among existing

Competitors

Threat of new

entrants

Bargaining Power of

Buyer

Threat of Substitute

Bargaining Power of Supplier

PRODUCT-MARKET EXPANSION GRID

Existing Product New Product

Existing Market

Market

Penetration

Product

Development

New Market

Market

Development

Diversification

The department that responsible for product development in J.CO Donut & Coffee are their Research and Development (R&D) department.

ACTION PROGRAM (GANTT CHART)

Activity JAN FEB MAR APR MAY JUN JUL OGO SEP OCT NOV DEC AMOUNT

Promotion Raya

                       RM 8000

Orphanage and Sponsor

                       RM 12000

International JCO meeting

                       RM 18000

Serivce Equipment

                       RM 15000

Hiring and Training

                       RM 9000

Research and Development

                       RM 12000

JCO Malaysia Meeting

                       RM 4500

12pc x 230 boxes (RM 26.00) = 2760 unit 6pc x 110 boxes (RM13.00) = 660 unitsAla-carte (RM3.00) = 80 units

Unit sold• 2760+660+80 = 3500 units (daily) • 3500 x 30 = 105,000 units (monthly) • 105,000 x 12 = 1260000 units (annually)

PROFIT (DONUT)

Gross Profit• RM26.00 x 230 = RM5980 • RM13.00 x 110 = RM1430 • RM3.00 x 80 = RM240• RM5980+RM1430+RM240 =

RM 7650 (daily)• RM7659 x 30 = RM229500

(monthly)• RM229500 x 12 = RM2754000

(annually)

Venti (RM8.00) = 50 cups Grande (RM7.00)= 30 cups Tall (RM 5.00) = 10 cups

Unit sold• 50 + 30 + 10 = 80 cups (daily)• 80 x 30 = 2400 cups (monthly)• 2400 x 12 = 28800 cups (annually)

PROFIT (COFFEE)

Gross ProfitRM 400+ RM 210+ RM 50 = RM660 (daily) RM 660 x 30 = RM19800 (monthly)RM 19800 x 12 = RM237600 (annually)

Cheesy Rich (RM6) X 15 units Red Velvet (RM6) X 15 units

Unit Sold• 15 + 15 = 30 units (daily)• 30 x 30 = 900 units (monthly)• 900 x 12 = 10800 units (annually)

PROFIT (J.CLUB)

Gross ProfitRM 90 + RM 90 = RM 180 (daily)RM180 x 30 = RM 5440 (monthly)RM 5400 x 12 = RM 64800 (annually)

Unit Sold• 40 boxes sold daily• 40 x 30 = 1200 boxes (monthly)• 1200 x 12 = 14400 boxes (annually)

Gross Profit• RM 18.00 x 40 = RM720 (daily)• RM 720 x 30 = RM21600 (monthly)• RM 21600 x RM259200 (annually)

PROFIT (J.POPS)

J.Cool Yoghurt• (i) J. Cool Single (RM 6.50) = 12cups • (ii) J. Cool Couple (RM 12) = 10 cups • (iii) J. Cool Sharing (RM 13) = 10 cups • (iv) J. Cool To Go (RM 10) = 8 cups

Unit Sold• 12 + 10 + 10 + 8 = 40 cups (daily)• 40 x 30 = 1200 cups ( monthly)• 1200 x 12 = 14400 cups (annually)

PROFIT (J.COOL YOGURT)

Gross ProfitRM 78+ RM 120 + RM 130 = RM 80 = RM408 (daily)RM 408 x 30 = RM 12240 (monthly)RM 12240 x 12 = RM146880 (annually)

PROFIT ( FOR ALL PRODUCT)

• Daily (RM9618): RM 7650 + RM 660 + RM 180 + RM 720 + RM 408

• Monthly (RM288 580): RM 229500 + RM 19800 + RM 5440 + RM 21600 + RM 12240

• Annually (RM3 462 480): RM 2,754,000 + RM 237,600 + RM 64800 + RM 259,200 + 146880

BREAKDOWN

Monthly gross profit: RM 288,580

Cost of raw materials: RM 70,000 (24.25%)

Workmanship: 20 employees ( RM 1,800 each) + 2 store manager (RM 2,200) = RM 40,400 (14%)

Premise rental: RM 20, 000 (7%)

Utility bills: RM 5,000 (1.7%)

Franchise monthly fee: RM 10,000 (3,4%)

Monthly Profit Margin: RM 143,180 (49.61%)

Raw Material24%

Workmanship14%

Premise Rental7%Utility bill

2%Franchise Monthly Fee

3%

Monthly Profit Margin

50%

J.CO Donut & Coffee Pavilion Kuala Lumpur

1) Raya Promotions- include Chinese New Year, Hari Raya Aidilfitri, Deepavali, Christmas ( Digital Advertisement RM2000)

2) Orphanage and Sponsor (CSR)- January, May and December- (RM 4000 each month)

3) J.CO International Meeting- January until June (RM3000 each month)

4) Equipment Service- March, April and May (RM5000 each month)5) Hiring and Training- January, February and March (RM3000 each

month)6) Research and Development for 1 year (RM1000 each month)7) JCO Malaysia Meeting- April, May and June (RM1500 each month)

PROMOTION AND ACTIVITIES

Month Task Objective CostsJanuary 1)CSR

2)J.CO Intl Meeting

3) Hiring and Training

4)Research/Development

Donation for Orphanage Discuss marketing plansEnhance staffs performance

Enhance sales and services

1)RM4000+2)RM3000+3)RM3000+4)1000= RM11,000

February 1)J.CO Intl Meeting

2)Hiring and Training

3)Research/Development

1) Discussing means of effective promotions2) Enhance Staffs3) Enhance sales and services

1)RM3000+2)RM3000+3)RM 1000=RM7,000

March 1)Raya Promotions- Digital Adv.

2)J.CO Intl Meeting

3) Hiring and Training

4) Equipment Servicing

5)Research/Development

1) Chinese New Year Promo

2)Discussing unified agreements

3) Enhance staffs performance

4)Maintain and restore equipments

5) Enhance sales and services

1) RM 20002) RM 30003) RM 30004) RM 50005) RM 1000TOTAL: RM14,000

April 1)J.CO Intl Meeting

2)Equipment Servicing

3)Research/Development

4)J.CO Malaysia Meeting

1) Discussing problems and solutions

2) Maintain equipments

3) Enhance sales and services

4)Discussing local promos

1) RM30002) RM50003) RM10004) RM1500Total: RM10,500

Month Task Objective CostsMay 1) CSR

2) J.CO Intl Meeting

3) Equipment Servicing

4)Research/Development

5)J.CO Malaysia Meeting

1) Old Folks Home

2) Discussing expansion

3) Maintain equipments

4) Enhance sales and services

5) Discussing problems

1) RM4000

2) RM3000

3)RM5000

4)RM1000

5)RM1500

Total:RM12,500June 1)J.CO Intl Meeting

2)Research/Development

3)J.CO Malaysia Meeting

1) Maintaining Efforts

2)Enhance sales and services

3) Discussing Solutions

1)RM 3000

2)RM 1000

3)RM 1500

Total: RM5,500July 1)Raya Promo-Digital Adv

2)Research/Development

1)Hari Raya Aidilfitri Promo

2)Enhance sales and services

1)RM 2000

2)RM 1000

Total:RM3,000August 1)Research/Development 1)Enhance sales and services 1)RM 1000

September 1)Research/Development 1)Enhance sales and services 1)RM 1000

Month Task Objective Costs

October 1)Research/Development 1)Enhance sales and services 1)RM 1000

November 1)Raya Promo-Digital Adv2)Research/Development

1)Deepavali Promo2)Enhance sales and services

1)RM 20002)RM 1000TOTAL: RM3,000

December 1)Raya Promo-Digital Adv2)CSR3)Research/Development

1) Christmas Promo2) Orphanage donation3)Enhance sales and services

1)RM 20002)RM 40003)RM 1000TOTAL: RM7,000

TOTAL:

•RM11,000+RM7,000+RM14,000+RM10,500+RM12,500+RM5,500+RM3,000+RM 1000+RM 1000+ RM 1000+RM ,3000+RM 7,000 = RM76,500 annually

•RM 3,462,480(annual gross profit)- RM76,500 (promotion) = RM 3,385,980 annual nett profit.

CONTROL

Annual Plan Control

Profitability Control

Sales Analysis Daily Sales Goals Daily Actual SalesDONUT DONUT =5000 pieces per day =3,500 pieces per dayJ.COFFEE J.COFFEE = 200 cups per day = 90 cups per dayJ.POPS J.POPS= 100 boxes per day = 40 boxes per dayJ.COOL YOGURT J.COOL YOGURT = 70 cups per day = 40 cups per dayJ.CLUB J.CLUB = 50 units per day = 30 units per day

Annual Plan Control

PRICEThe others competitors has a cheaper price of donut than them. The price of J.CO Donuts & Coffee actually the most reasonable, the company can’t low the prices due to the quality of ingredients that their used.

PROMOTION J.CO Donuts & Coffee just do their promotion in outlet with give information to the customer about the new promotion for increase their sales. Due to this style of promotion J.CO Donuts & Coffee enables to develop and attract the customer. They allocate RM20, 000.00 for each outlet for each promotion that they do.

THE ISSUES J.CO DONUTS & COFFEE CAN’T ACHIEVE TARGET

11

80

12

Jco Big Apple Krispy Kreme

Total outlet of three companies Big Apple

Big Apple already have 80 branches in Malaysia. Big Apple brings the cheaper price of donut compared to the J.CO Donuts & Coffee

Krispy Crème Krispy kreme already have 12 branches around Malaysia. The price of Krispy Crème more pricy compare to J.co and Big Apple.

Most profitable productThe most profitable product is Donut, majority customer craving for it. The customer said glaze donut is the best donut that they have. After that is the J.coffee

MARKET SHARE ANALYSIS

Type of product Gross Profit Monthly

105,000 units donuts RM 229500

2400 cups coffee RM 19800

900 units of Jclub RM 5440

1200 boxes of Jpop RM 21600

1200 cups of yogurt cup RM 12240

Total monthly RM 288,580

When it comes to promotion month the sales will

increase around 40%

RM404,012

=RM 115,432

Budget for promotion each outlet is RM20,000

Marketing activities cost RM20,000Sales revenue Sales Monthly :RM 288,580Promotion Sales :RM 450,185Generated Sales :RM 115,432

MARKETING EXPENSE TO SALES ANALYSIS

PROFITABILITY CONTROL

Internal Factors

Staffing

Salary

Training

External Factor

Promotion

Service

Place

• J.CO Donuts & Coffee all the staff will be divided by three departments • Managers : The manager needs to

monitor the bakers to achieve the target amount of donut every day

(Store manager and assistant manager)• Bakers Department : J.CO Donuts &

Coffee needs to produce every day is about 4000-5000 pieces

(10 employees)• Front Liner Department : the front liner

needs to push the sales of donut and coffee

(10 employees)

Workmanship: Employees salary (Each Outlet)2 store manager (RM 2,200)20 employees each (RM 1,800) = RM 40,400 (14%) from the gross profit

• Every day the manager has to updates the sales report. After that, they needs to analyze and compares the report. From the amount of donut, the cup of coffee and yogurt is the way how they control their profitability every day.

INTERNAL CONTROL

• Staff Training J.CO Donuts & Coffee do their ongoing promotion in the outlets, usually the staff needs to know how communicate and attracts with the customer to increase their sales.

For example, when the customer just want to buy the half dozen of donut the front liner needs to show the customer will save a lot when they buy for a dozen.

• Hiring and Training (January, February and March) (RM3000 each month)

J.CO Donuts & Coffee has their own strategy to control their profit. First with Staffing and push the sales of product by the staff. J.CO Donuts & Coffee also said the most important to fight with their competitors is trust on the quality of what they using.

STAFF TRAINING

PROMOTION • J.CO Donuts & Coffee did the promotion in outlets which is the promotion needs

to be done by the front liner. • J.CO Donuts & Coffee promotions with celebrates the Malaysia feast such as

Hari Raya Aidilfitri, Deepavali, Chinese New Year and Christmas.• Every feast J.CO Donuts & Coffee will change the theme of their outlets and

donut design

SERVICE• They always make sure that the customer will come back to the café to having

their donuts and be a loyal customer. Usually, the loyal customer will select the best of taste and experience that their get. J.CO Donuts & Coffee improve their relation with stakeholder regularly.

EXTERNAL FACTOR

PLACE• J.CO Donuts & Coffee maintain their strategic

place and know the profitability place. Usually, their choose the place that have many crowd such as Pavilion Shopping Centre and IOI Mall Puchong.

• The placing of shop also takes the important role, what we can see J.CO Donuts & Coffee chose their shop that near to the entrance of the mall.

CONTROL

•J.CO should continuously adapt its marketing mix to keep up with the changing times and changing lifestyles of people today

•Conclusion, this report shows a clearer picture of how a business uses marketing mix to identify its target market, attract them & retain their loyalty

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