j.co donut & coffee marketing presentation
TRANSCRIPT
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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