CHAPTER 1

Project Overview

CHAPTER 2
Project Profile

CHAPTER 3
The Company

CHAPTER 4
Consumers and Stakeholders

CHAPTER 5
The Industry and Marketplace

CHAPTER 6
Competitive Situation

CHAPTER 7
SWOT Analysis

CHAPTER 8
Strategic Target Audience

CHAPTER 9
Research Development

CHAPTER 10
Precedent Studies

CHAPTER 11
References

CHAPTER 12
Appendices

MEDIA INNOVATION
Design Project 1 (MMI3213)

SITUATION ANALYSIS
Brand: Cupcake Chic

Name: Amira Fateha bt Tambi ID: 1092700093

Chapter 1: Project Overview __________________________________________________

1.1 Introduction

Figure 1: Cupcakes by Cupcake Chic

Cucpakes are more versatile than ice-cream, donuts, traditional cakes or any other form of dessert. Cucpakes can be a form of dessert to cater to the impulsive craving of the individual much like ice-cream, ice kacang or a slice of cake. Yet, it can also be a personal gift to someone special. Cupcake Chic is a premier cupcake specialist bakery (known as a cupcakery) offering 24 cupcake flavors with a combination of 12 flavors that changes daily. The wide assortment ranges from the classic best selling duo of the chocolate Fatal Attraction and the unique cream cheese frosted Red Velvet to the local favourite, Onde Onde cupcake and every other flavor in between. At Cupcake Chic, they bake everything from scratch, every single day. The apples are lovingly peeled and cored. The pecans are caramelized in a pan. The bananas are mashed when they are at their sweetest and ripest. The lemons and limes are hand-zested. They mix and bake them just as you would in your own kitchen. They were introduced to the market in Malaysia in January 2008 and already have 3 outlets located in Selangor area. Cupcake Chic has slowly grown to become a familiar and popular name in urban Kuala Lumpur.

1.2

Problem Statement and Issue

The problem faced by Cupcake Chic is peoples perception when it comes to trying out new cake inventions like the large size cupcake produced by Cupcake Chic. In terms of pricing, the extra large cupcake named Livin Large Cupcake are a bit pricey than ordinary cakes sold by other brands. This leads consumers to buy cheaper sold cakes instead. They are also lack of advertisement and promotion of their products. 1.3 Objectives and Aim

Objectives: To inform the public about the advantages of the cupcakes by emphasizing the fresh ingredients used in making the cupcakes. To change peoples perception by perceiving the quality and value of the products. To create brand awareness to those who are unfamiliar with the special cupcakes produced. To renew the brands positioning statement.

Aim:

The aim of this project is to collect and gather useful information to create an effective advertising approach to improve the brand image of Cupcake Chic and thus, guiding consumers to enjoy the cupcakes as well as knowing the benefits of its products.

Chapter 2: Project Profile __________________________________________________

2.1. Product Name Cupcake Chic 2.2. Product Classification Cupcake Chic is a consumer product because their products function are to satisfy an individuals need and desire. It is categorized as a non-durable product due to its food/edible goods that will fit humans consumption and will eventually be finished. Cupcake Chic is also a shopping good as consumers get the chance to choose their desirable products/flavours that matches their interest. 2.3. Product Characteristics Category: Cupcakes, macarons, large size cupcakes, biscottis Type: Food dessert Packaging: The products are normally served in a designed box with the brands logo sticker on it.

Figure 2: Cupcake Chics packaging design

Flavour Range: 24 international and local flavours. New flavours are also available for a limited time during festive seasons. Unit of sale: Per cup/ dozen / 1 dozen

Price Range: RM 4.90 RM 51.00 (for cupcakes serving depending on quantity from one cupcake to dozen and 1 dozen cupcakes) RM 3.90 RM39.60 (for macaron packs depending on quantity from single macaron to dozen and 1 dozem macarons) RM 75.00 RM 150.00 (for Livin Large cupcake depending on toppings and optional add ons such as birthday candles and fondant letters)

RANGE Cupcake

SELECTION Single dozen 1 dozen Single

PRICE (RM) 4.90 27.00 51.00 3.90 22.20 39.60 75.00 85.00 80.00 85.00 5.00 2.00 5.00 2.00

Macaron

dozen 1 dozen Cake Flavours Back to Basics Fatal Attraction Red Velvet

Livin Large Cupcake

Othello Add a filling Add a topping Optional Add Ons Birthday candles Fondant letters

Figure 3: Cupcake Chics product price range

Figure 4: Cupcakes and macarons by Cupcake Chic

Figure 5: Livin Large cupcakes by Cupcake Chic

2.4. Product Range Cupcake Chic serves a wide variety of selection of cupcakes, macarons and also large-sized cupcakes. They contain only the finest and best quality ingredients and are made with fresh dairy products from halal suppliers.The flavours offered for cupcake includes 24 different flavours which are categorized into 4 categories called Classics, Lites, Love Em and Chocoholics. They offer a combination of 12 different cupcakes daily so each day is a new experience for consumers. As for macarons, each of them are Dainty French cream-filled sandwich cookies. They are available in 12 different and unique flavours daily. As for the product of Livin Large cupcakes, they are available in four of Cupcake Chics top flavours. Customers can also customize their own frosting design, colour, add-on fillings, toppings and other additional add-ons as well.

Cupcakes: Classics Flavours

Fatal Attraction Belgian chocolate cake with chocolate frosting

Back to Basics Vanilla cake with vanilla frosting

Red Velvet Red velvet cake with cream cheese frosting

Naughty n Nice Vanilla cake with chocolate frosting

Chocofee Coffee cake with chocolate frosting (mocha)

Figure 6: Classics category

Othello Belgian chocolate cake with vanilla frosting

Lites Flavours Description

Strawberries n Cream Strawberry filled cake with vanilla frosting

Peaches n Cream Peach cake with cream chantilly and almond flakes

Hello Sunshine! Orange poppyseed cake with citrus frosting

Blueberry Crumble Blueberry oats cake with oats crumble

Adams Apple Custard filled cake with apple cinammon slices

Lemon Meringue Lemon cake with meringue topping

Figure 7: Lites category

Love Em Flavours/ Description

Arabian Nights Dates cake with toffee frosting

Utter Peanut Butter Peanut butter chocolate chip cake with peanut butter frosting

24 Karat Carrot walnut cake with lime cheese frosting

Tiramisu Coffee infused cake with cream cheese frosting

Cookies n Cream Cookies and cream cake with vanilla frosting

Onde onde Pandan gula melaka cake with coconut frosting

Figure 8: Love Em category

Chocoholics Flavours Description

Nutters Gone Bananas Banana cake with chocolate hazelnut frosting

Rich & Cool Belgian chocolate cake with peppermint frosting

Blackforest Chocolate cherry cake with whipped cream frosting

Jaffa Chocolate orange cake with chocolate frosting

Rocky Road Devils food cake with rocky road topping

On Cloud 9 Chocolate marshmallow cake with chocolate frosting

Figure 9: Chocoholics category

Macarons Flavours

Black sesame

Fatal Attraction

Earl Grey

Green Tea

Peanut Butter & Jelly

Raspberry

Coconut Ginger

Coffee

Lavender

Lemon

Red Velvet

Salted Caramel

Figure 10: Macarons by Cupcake Chic

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Livin Large Cupcakes Flavours

Back to Basics

Fatal Attraction

Red Velvet

Othello

Figure 11: Livin Large cupcakes by Cupcake Chic

2.5. Distribution Cupcake Chic products are directly distributed to their specific outlets where consumers get to buy them without involvements of any intermediaries. Based on the product life cycle graph, it is shown that Cupcake Chics sales are currently at its growth stage as they are still focusing on improving their promotion and advertising strategies to reach its target audience. Cupcake Chic is considered an emerging products that are growing in the food industry.

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2.6. Product Life Cycle

Figure 12: Product life cycle of Cupcake Chic

2.7. The Brand

Cupcake Chic is Malaysias first and premiere cupcakery which has its own core business of producing cupcakes. They commit to making sure that their cupcakes are fresh baked and delivered to outlets daily, keeping their quality consistent by using quality ingredients and fresh dairy products. They offer products, which include cupcakes, macarons, biscottis and also large-sized cupcakes. Cupcake Chic differs themselves from a sea of smaller, home-based competitors by relentlessly focusing on innovation to develop the best-tasting and most memorable products across multiple platforms to maximize more revenues. They offer a wide variety of products, which include cupcakes, macarons, biscottis, beverages and large-sized cupcakes. Their products also cater to larger groups of people especially those who are doing event ocassions such as weddings, birthdays, corporate events, parties, engagements which incorporate cupcakes as their centerpiece of attraction.

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2.8. Brand Image and Implication Cupcake Chic is well known for its cupcakes that are high quality and offers a wide variety of flavours. According to the founder, Joanne Ho, Cupcake Chic is bringing the popularity of the retail cupcake industry (worth US$6 billion in the US and growing at +35% year on year) from the USA to Malaysia. Customers enjoy buying products from Cupcake Chic relentlessly because of their commitment to innovation in the areas of creative menu, store design and also customer engagement. Not to mention, they serve as a delicious food dessert for costumers too. Cupcake Chic is currently a growing brand in terms of expansion of its cupcake business and popularity among consumers. They are expanding through franchise outlets in Malaysia and may expand widely through other countries too in the future. Cupcake Chics loyal customers love the brand for their range of flavours and frequent discount promotions offered in special events and festives. 2.9. Strengths and Weaknesses Strengths: Offers 24 cupcake flavors. New flavors invented during special holiday festives. First cupcake bakery also knows as cupcakery in Malaysia Uses fresh fruits and ingredients First to produce large sized cupcake

Weaknesses: Outlets are not available in many states. Only focuses in Selangor area. Consumers perception in terms of pricing (expensive) Limited advertising and promotion of the cupcakes

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2.10.

Advantages and Disadvantges

Advantages: Varieties in flavours to be choosen by customers Unique designs for each products differs from different flavours. Fresh dairy products used for baking. All ingredients are taken from halal suppliers. Caters for special ocassions (wedding, birthday party, corporate events etc.) Customers can make online ordering and products will be delivered.

Disadvantages: Outlets are only available in Selangor area. Competition from other brands Delivery of products made through online ordering are limited only to Selangor, Wilayah Persekutuan, Penang and Johor. 2.11. Unique Selling Proposition (USP)

Cupcake Chic offers the best-tasting cupcakes from small to large sizes in variety of flavours. 2.12. Promotional History and Advertising Schedule

Promotions for Cupcake Chic are actively done in Cupcake Chics fan page through social networks such as Facebook and Twitter. Below are some of the promotions offered:

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Events and Activities 2009: 1. 22nd January - Chinese New Year Celebration, The Curve 2. 4th May - TimeOut Birthday Bash,Time Out Kuala Lumpur 3. 26th August McDonalds Malaysia anniversary,Kuala Lumpur 4. 30th August Asia Wedding Shoot, Colmar Tropicale, Bukit Tinggi 5. 4th September Cupcake Chics Appreciation Dinner,C.Club, Pavillion KL 2010: 1. 31st January Pavillion Kuala Lumpur 2nd Anniversary, Pavillion KL 2. 21st April Garden Wedding Theme , Grand Dorsett Subang 3. 9th May Mothers Day Celebration, Sunway Pyramid 4. 12th May La Senzas Roadshow, KLCC 5. 16th May - Her World Mothers & Daughters Cupcake Decorating Session, Pavillion KL 6. 17th June Wong Sze Zens wedding (former Miss Malaysia) , Kuala Lumpur 7. 16th September Cupcake Chic New Flavours, Pavillion KL 8. 8th October Blackberry Bold Launch, Cupcake Chic The Curve 9. 14th October Digi Rocks! Campaign, Pavillion KL 2011: 1. 11th February Valentines Day Celebration, The Curve 2. 15th April Masterchef Malaysias Audition Launch,Kuala Lumpur 3. 18th April Kingdom Women Conference, Kingdom City Church, PJ 4. 22nd April Time dotcom Astro B.yond Launch, Petaling Jaya 5. 23rd July - Daily Muscle Transformation Camp, Taman Tun Dr Ismail 2012: 1. 26th May Disney Pixars Brave Cupcake Decorating Class, Sunway Pyramid 2. 13th June Cupcake Camp 2012, Cupcake Chic The Curv

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Promotions and Coupon Deals 1. Zalora Voucher Buy 5 free 1 cupcake with Zalora shopping voucher worth RM30 Buy 9 and above, free 3 cupcakes with Zalora shopping voucher worth RM60 Valid from 20 July 30 August 2012

2. Cupcake Chic collaboration with Espresso Lab 1 set of espressoLAB coffee and 2 cupcakes for only RM10 Valid from 26 May 10 June 2012

3. Cupcake Chic Online Coupon Free cupcake with 1 purchase of cupcake Valid only with original email after free Cupcake Chic newsletter subscription Valid until 31 December 2011

4. Ramadhan Special 2011 Buy 9 free 3 cupcakes Valid from 1 29 August 2011

5. We Japan Every box of I Japan red velvet cupcakes purchased, 50% will go to the World Vision Japan Quake & Tsunami Fund Valid from 22 31 March 2011

6. Groupon 50% off for 1/2 dozen cupcakes at RM13.50 instead of RM27. Available at Sunway Pyramid and The Curve Valid from 27 30 September 2010 127 coupons sold

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7. Fabulous Food Month of November 15% off for 1 dozen of cupcakes and above Valid from 1 30 November 2009

8. Merdeka Weekend Special Durian Chocolate Cupcake Valid from 28 31 August 2009

9. Ramadhan Special 2009 25% off for 1 dozen cupcakes Discount from RM48 to RM 36 per 1 dozen Valid from 21 August 19 September 2009

10. Valentines Dolce Box 6 Valentines themed cupcakes for RM35 Valid on 13 & 14 February 2009

11. Christmas with Cupcake Chic White Christmas Cupcake and Choco Mint cupcake Available from 1 31 December 2009

12. Follow @thecupcakechic on Twitter Free Fatal Attraction cupcake when you follow @thecupcakechic on Twitter Valid on 14 September 2009 with given password for cupcake pick-up.

13. Christmas Promo 1 Fatal Attraction cupcake to be picked up at Centre Court,The Curve Valid from 30 November 2007 6 January 2008

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Newspaper and Magazine 1. MT.(January 2012).Cupcake Chic life in the cupcake world.Malaysia Tatler Magazine 2. Pillars. (November 2011). Princess of cupcakes. SME Malaysia 3. Tania Wee. (April 2011). How do you work with someone close to you? Her World Magazine 4. Carolyn Hong. (September 2009). Twitters reach growing in Malaysia. Singapore Straits Times 5. MW. (September 2009).Cupcake Chic beri kegembiraan.Mingguan Wanita Magazine 6. Khadijah Mohamad Nor. (December 2009).Populariti Cupcake Chic.Kosmo! TV and Radio 1. Astro Awani Interview with Joanne Ho (Ch 501) 11th October 2009, 9.30 pm 2. Cupcake Chic Interview with BFM 89.9 (Open for Business segment) 21st January 2010

2.13.

Positioning Statement

Cupcake Chic offers the best-tasting cupcakes from small to large sizes in variety of flavours suitable for consumers aged 18 25 years old who is outgoing and loves to spend time with friends and families while having a dessert treat.

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Chapter 3 The Company __________________________________________________

3.1. Company Overview

Cupcake Chic first opened its door in Janauary 2008. They have grown to become more familiar and a popular name in Kuala Lumpur since then. They are considered Malaysias first cupcakery that has established themselves in the food and beverages industry categorized under food dessert. The company produces iconic cupcakes that are available in many flavours to provide customers with something they can enjoy everyday whether impulsively or planned. They are planning to open up more outlets in the future. The outlets of Cupcake Chic up to this date can be found in Selangor area which are located at Sunway Pyramid,Ampang Point and The Curve. 3.2. Business Description Cupcake Chic products are focusing mainly on food dessert retail with cupcakes as their main profit in the bussiness. They are not just about cupcakes alone. They are constantly innovating their menu to include macarons, giant-sized cupcakes, biscottis, gourmet espresso coffee as well as cookies, brownies and a breakfast/lunch/dinner menu soon to be launched. Their brand attracts consumers who enjoys having some dessert treat for themselves. Since Cupcake Chic has received their Franchisor status from the Franchise Ministry, they also provide 3 franchise investment packages, for people who are interested in joining their business. The packages are Compatto, Medio and Famiglia (each meaning Compact size, Medium size and Family size). Compatto is a compactstyle kiosk format between 125-175 square feet. The Compatto is a take-away model and ideal in corporate office buildings,shopping malls,high-end condos and transport hubs. Medio is a store format between 400-600 square feet with limited seating space.It is also considered as an island kiosk formats with seating which combines the best of a take-away and dine-in model.Small functions i.e parties may be held at the Medio store. They are ideal in shopping malls and shop front lots.

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Famiglia is a caf outlet between 750-900 square feet,that builds a revenue stream dot easy take-away,dine-in and event functions. This type allows dine-in customers to find their personal space for a group of people to connect.The important feature is that it caters to children- a zone for kids to play and be safe while the parents socialize.They are ideal in shopping malls and shop front lots. Cupcake Chic has an established business system that franchisees can leverage on with a strong leadership marketing support by the founder. Cupcake Chic has relentless commitment to innovation in the areas of menu, store design and customer engagement. 3.3 Company History

Cupcake Chic is Malaysia's first cupcake specialist bakery, also known as a cupcakery, established in January 2008. The company was founded by a husband and wife team namely Joanne Ho and Ben Foo. They are bringing the popularity of the retail cupcake in the food and beverage industry. Their products are not just a dessert to be enjoyed impulsively but perfect also for celebrations large or small such as weddings, corporate events, birthday parties, baby full moon, etc. They have 3 outlets in Selangor area. Their main store is located at The Curve,Damansara. Another 2 outlets are owned by their franchisees - Tengku Soraya Tengku Nerang Putra and Ramachandran A/L Muniandy. They realized that the key to successful business is to provide customers with something they can enjoy everyday whether planned or unexpected. Cupcake Chic specializes in making variety of flavours for their cupcakes. They also uses fresh dairy products and ingredients which are taken from halal suppliers in order to meet their high quality specifications in every product. The signature product of Cupcake Chic is their iconic cupcakes.Furthermore, they also produce macarons, biscottis, cookies and also giant-sized cupcakes. Their company does not only depend on the franchised retail outlet but also from Cupcake Chic Occasions (i.e. weddings, birthdays, corporate events, etc.) and online sales.

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3.4

Key People Founder / Managing Director Joanne Ho Co-Founder/ Marketing Director - Ben Foo Assistant Manager - Nadia Sofea Ocassions Architect - Chen Qian Product Innovation Chief - Swee San Franchisee (Ampang Point) - Tengku Soraya Tengku Nerang Putra Franchisee (Sunway Pyramid) - Ramachandran A/L Muniandy Location and Subsidaries

3.5

Cupcake Chics Headquarters Office Cupcake Chic Sdn Bhd 46M, Jalan SS2/67 Sunway Mas Commercial Center, 47301 Petaling Jaya, Selangor Cupcake Chic outlets can be located at the following areas: Cupcake Chic @ The Curve

Lot GZF-4, Ground Floor No. 6, Jalan PJU 7/3, Mutiara Damansara, 47810, Petaling Jaya, Selangor Tel: 03 7726 9075 Fax: 03 7726 9058 Cupcake Chic @ Sunway Pyramid

Lot F1.87, 1st Floor, Sunway Pyramid Shopping Mall, No. 3, Jalan PJS 11/15, Bandar Sunway, Subang Jaya,Selangor Tel/Fax: 03 5638 9989

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Cupcake Chic @ Ampang Point Shopping Mall

Lot FM 26-27, Ground Floor, Ampang Point Shopping Mall Jalan Mamanda 3, Taman Dato Ahmad Razali 68000 Ampang, Selangor Tel: 010 247 7545 3.6. Brand, Major Products and Services

Cupcake Chics meticulous attention to excellent quality and careful choice of ingredients makes their products special. Cupcake Chic products contain only the finest and best quality ingredients which are fresh dairy products from halal suppliers. The signature cupcakes of Cupcake Chic consists of 24 flavours, whereby each one differs in its unique taste and appearance. They offer a combination of 12 different cupcakes daily so each day is anew experience for the customers. The cupcake menu is made up of 4 categories: 1. Classics consist of the popular flavours like Vanilla, Belgian Chocolate, Coffee and Red Velvet. 2. Lites are considered lighter cupcakes that are not too rich and heavy catered for the weight conscious customers. 3. Love Em are their specialty range where each cupcake flavour has its own twist to it. 4. Chocoholics are more aimed towards chocolate lovers as the cupcakes have a good variety of chocolate inspired flavours and richer in taste. Other products of Cupcake Chic includes macarons, biscottis and giant-sized cupcakes called the Livin Large cupcakes. The services that Cupcake Chic offers include online ordering and also Cupcake Chic Occasions, which is fully customized cupcakes for large orders and ocassions such as weddings and corporate events. Cupcake Chic Ocassions provide other stream of revenue to franchisees so that they have more potential to earn and not only confined to the retail outlet only. Other services that Cupcake Chic offers are training skills for employees and ocassion architect that are assigned to help for special themed events.

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3.7. 3.8.

Corporate Vision To satisfy each costumer by providing the best-tasting treats To enhance customer engagement service to meet customers expectations. Corporate Mission

To provide a strong leadership marketing with the best management services that clients can depend on in terms of the pricing, efficiency, and product design. 3.9. Companys Current Promotional Strategy

The promotions made by Cupcake Chic are mostly active during festive months where celebrations are held quite often. These promotions usually last for a period ranging from one week to one month. 2012: Support & Sponsoring Events Disney Pixars Brave Cupcake Decorating Class Cupcake Camp 2012

2008-2012 Festive Season Moms Pink Dolce Box for Mothers Day Valentines Day Dolce Box Christmas Dolce Box Raya Dolce Box Ramadhan Special Merdeka Weekend Special Fortune Cupcakes for Chinese New Year

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3.10.

Product Sales History

According to the founder of Cupcake Chic, Joanne Ho said that the outlets have shown strong double digit growth since 2008 and it is largely due to the versatility of cupcakes that they provide. 3.11. Current Marketing Objective

Short Term Objective: To provide the best-tasting cupcake products and come up with new inventions of cupcake flavours to maintain their uniqueness and high quality of products offered. Long Term Objective: To expand their brand to be well known nationally or internationally by their target market and to develop more outlets and be an innovative leader in the cupcake market industry.

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3.12.

Media Expenditure Cupcake Chic has an established system through media for their promotional

activities. They depend more on online advertising and social media to promote their brand. The online deals offered not only helps customers get the best deal but also engage them with a closer interaction to Cupcake Chic. Other than that, Cupcake Chic also uses print media such as magazines and newspapers to promote their brand. There are also articles that can be found through online blog reviews by food blogs and even customers who have been to Cupcake Chic sharing their experience in their daily blog. In addition, Cupcake Chic also produce brochures and flyers for customers to get to know about their latest products. There are also events which Cupcake Chic are involved in especially the ones such as launching of an event or campaign where they uses cupcakes as the centerpiece of attraction. By this way, Cupcake Chic tremendously get the attention of other people around to be more familiar with their brand. Latest news, events and promotions can also be found in Cupcake Chics official website and also their Facebook fanpage which is actively updated regularly. Their customer database has over 5,000 on email and alo 75,000 on Facebook acurately up to this date.

Figure 13: Cupcake Chics official website

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Chapter 4 Consumers and Stakeholders __________________________________________________

4.1. Current Consumers Characteristics 4.1.1 Demographics

a) Age 18-29 years old b) Gender Male and female c) Education High school, colleges and universities d) Occupation Students, white collar workers. e) Income Range -Students allowance (RM 100-RM500) -White collar workers income (RM1500- RM3000) f) Race & Ethnicity All races and ethnicity g) Geographical Location Urban and sub-urban areas

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4.1.2

Psychographics

a) Perception Enjoys spending time with families and friends. Loves having a dessert treat for themselves.

b) Learning Influences from both digital and social media such as Facebook, Twitter, online blog reviews, online promotion deals and websites. Recommendation by families and friends.

c) Motivation & Needs Exploring unique and attractive dessert options to try out to enjoy with families and friends. Loves to experiment different type of flavours.

d) Attitude & Personality Outgoing and loves to socialize with others. Jovial, adventurous, love trying out new things.

e) Lifestyle Active life routine and may experienced stressful study/working life but knows how to take a break from it. Enjoys going out for gathering, events and celebrations.

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4.2 Stakeholders Characteristics 4.2.1 Primary

The primary stakeholder is the franchisor, Cupcake Chic which is owned by a husband and wife team namely Joanne Ho and Ben Foo. In a franchise system, the franchisor is the entity that develops the bussiness model,brand and the whole franchise system that franchisees can leverage on.This includes the following: Development of product design Branding and innovation in areas of menu,store design and customer engagement Design of the outlet (compact-style kiosk,store format and caf outlet) Research and development of the product Central Kitchen that bakes and delivers to franchised outlets daily Customer database Strong leadership markerting support Simple operation to manage Secondary

4.2.2

Franchisees

Franchisees determine the package that they would like to invest in. Franchisees will select the location of the outlet and comply to the franchise system that has been developed by the franchisor.They are responsible for the management of their outlet and provide the best customer service to grow their business. Local Authorities

The local authorities will consider and give approval to the proposed premise or location of the outlet submitted by the franchisor/franchisee before they can start their bussiness operations. Banks

The bank helps to provide loans and funds needed by the franchisor and franchisees.

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Suppliers

Suppliers will help in terms of supplying fresh ingredients and dairy products to the Central Kitchen of Cupcake Chic for product baking process. Media

The media acts as a medium for Cupcake Chic to advertise their products and help in terms of creating brand awareness of the company.

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Chapter 5 The Industry and Marketplace __________________________________________________

5.1. The Industry

5.1.1. Definition of the Industry In general, the food and beverage industry is widely expanding year after year. The industry specializes in the conceptualization, the making of, and delivery of foods. The largest section of food and beverage employees are in restaurants and bars, including hotels and resorts. In order to satisfy consumers needs and expectations, food and beverage industry helps to assure that the products are in high quality guaranteed production whereby companies aim for the best products according to consumer demands. The competitive environment of the industry is constantly changing and entrepreneurs have the greatest influence on this matter. The food and beverage industry changes so regularly because there is a massive variety of businesses, great and small, that hold stake in it. This types of variety creates many different sectors in which innovation can bloom through the industry, which leads to more opportunities for entrepreneurs. 5.1.2 Shape of the Industry

Internationally, the food and beverage industry development growth has been consistent each year. The industry is expected to increase 3.5% by the year of 2014. The largest share in the food and beverage industry is currently ranked by Europe followed by US. As for China and India, they are the major contributor of raw materials to the industry. Malaysias food industry is rich in terms of agricultural and tropical resources reflecting diverse cultures in Malaysian society Malay, Chinese and Indian, have resulted in a fascinating range of processed food with an Asian twist.The Malaysian food and beverage market is becoming highly sophisticated and is supplied by both local and imported products. The strong economic growth in the late 80's and early 90's contributed to major changes in consumer purchases and consumption patterns.

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Malaysians living in urban areas are relatively brand conscious, and they prefer to shop in stores, which offer them convenience and good product selections. Other than that, the halal industry in Malaysia also provides immense opportunities for Malaysian manufacturers. It was estimated that the potential value of the halal food industry range between USD600 billion and USD2.1 trillion. The concept of halal is associated with food products which are of high quality in terms of cleanliness, sanitation and compliance with religious requirements. 5.1.3 Development of the Industry

The issues that rises when talking about the food and beverage industry will definitely not go further away.Some of the issues that are currently happening includes; oil price which is unlikely to fall, pressures to be environmentally friendly will grow, health and nutrition remain as a priority, low cost economies offering cheaper production opportunities will dissapear, and consumers will not lose their taste nor variety and also great value. The growing usage of alternative channels such as the Internet helps in leading the growth in direct to consumer sales by food suppliers. Even better, we shall see a greater regulation to control salt,sugar and fat content by governments obsessed with the long-term economic consequences of the current public health issues. Malaysias food industry is as diverse as the multi-cultures of Malaysia, with a wide range of processed food with Asian tastes.It is estimated that the present global retail sales in food products are worth around US$3.5 trillion, and are expected to grow at an annual rate of 4.8 per cent to US$6.4 trillion by 2020. Lifestyle changes have led to an increase in the demand for convenience food and health food. In Malaysia, the food industry is dominated by small and medium scale companies. The major sub-sectors are the fish and fish products, livestock and livestock products, fruits, vegetables and cocoa.In line with the emphasis on the agriculture sector, the processed food and beverages industry had become an important component of the agro-based industry.Employment in the processed food and beverages industry decreased in 2009 by 5.1% to 43,080 compared with 45,418 in 2008. Labor cost for the industry remained competitive, as its Unit Labor Cost

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decreased by 8.2%, reflecting an efficient utilization and management of resources. Small and medium sized enterprises represent more than 80% of the total number of establishments in the processed food segment. Malaysia is also one of the world major producers of spices. It is clear that the next 5 years will present an increasingly complex set of issues and challenges for the food and beverage industry to resolve.The ability of individual businesses to identify relevant challenges and opportunities, develop and appropriate responses to execute effectively will be critical to their short term and long term success. Doing the right thing, and being seen to do the right thing will be considered core to brand relevance, and ultimately business success across the industry. 5.2 The Marketplace 5.2.1 Current Condition of the Marketplace

The marketplace for cupcake products are categorized under the dessert market which is one of the subdivisions of the food and beverage industry. In cultures around the world, dessert is a course that typically comes at the end of a meal, usually consisting of sweet food.Cupcakes are the same category as cakes except that cupcake is a small cake designed to serve one person, frequently baked in a small, thin paper or aluminum cup. As with larger cakes, frosting and other cake decorations, such as sprinkles, are common on cupcakes. Internationally,there are a handful of big-name players within the cupcake industry .Their cupcake obsession will continue as they embark upon ambitious expansion plans. Growth within the cake decoration stores industry is expected to slow to 3.7 percent annually over the next five years, according to an October 2011 report from research firm IBISWorld. This forecast represents a dip from the 4.9 percent growth that the industry was predicted to have enjoyed during the past five years. In Malaysia, the dessert market has risen in significance to the overall food market, rising from 0.9% in 1994, to 1.4% by 1999 and continued to grow in 2000.

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5.2.2

Changes in Marketplace

The dessert market for cupcake products are growing progressively in Malaysia. Cupcake cafes are considered a trend nowadays to the consumers. Given the strong growth potential in the cupcake industry, the valuation of profit seemed reasonable. The sales of cupcake products may face a number of challenges as well. In recent years, volatile commodity prices for flour, sugar and milk have dented bakery profits. This year, egg prices are expected to increase 2.9%, while sugar prices are expected to increase 6.4 % and milk 1.6%, the USDA forecasts. Consumers are also becoming more health conscious, moving away from sweets while bakeries are experiencing stiffer competition from grocery stores and mass merchandisers that sell baked goods at a lower price. But the biggest challenge for the cupcake may also be the key to its current success. It depends on the trend of cupcakes and if it will remain popular with consumers because it is unpredictable as the trend could easily change.Food trends change often in the food and beverage industry.

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Chapter 6 Competitive Situation __________________________________________________

6.1. 6.1.1 Direct Competitors Wondermilk Cuppacakes

Wondermilk Cuppcakes was established in May 2006 by 6 cupcake lovers who came together to devote their time and attention to the art of cupcake making and decorating. They are the sister company to Wondermilk. They have 3 outlets located at Publika, Citta Mall and Damansara Uptown. Cuppacakes are known for their fine and exquisite cupcake creations. They are defined by their attention to details of cupcakes including the colours,flavours,ingredients and their cupcake design. Their outlet is a caf-style concept with urban and young aesthetics in mind. Their products include cupcakes, cookies and cakes, which are suitable for special celebrations and equally delectable for any other ocassions. Type: Cake Price Range: RM 4.50 (per cupcake), RM25.00 ( dozen cupcakes) Strengths: Very detailed in terms of cupcake design Cupcakes can be customized by consumers according to their desired preference.

Product Range: cupcakes, cakes, cookies Positioning: Cuppacakes produces fine & exquisite cupcake creations with a creative approach to cupcake design.

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6.1.2

Bisou Bake Shop

Bisou Bake Shop was founded in June, 2007. The companys sister eateries include Bijou and Bianco. Their outlets are located at Bangsar Village and KLCC. Bisou Bake Shop is pretty in its decor, primarily white with dark chocolate and pink accents that echo the rich chocolate in the cakes they serve. Taking up the space formerly occupied by Vanilla Box, Bisou Bake Shops caf has several good things going for it: a varied menu, a well-thought-out design scheme and the enviable status of being the only caf on the street. At Bisou Bake Shop, their objective is putting a sophisticated swirl on a nostalgic favourites. Sporting a selection of homestyle cupcakes, cakes and cookies, there is something to suit every plate. With 13 cupcake flavours everyday, cupcake lovers are spoilt for choice at Bisou Bake Shop. Type: Cake Price Range: RM 5.00 (per cupcake), RM30.00 ( dozen cupcakes) Strengths: Varieties in menu; cupcakes, cakes, cookies, healthy salads, daily soups, freshly cut sandwiches made from homemade bread. Strong concept of the outlet Product Range: cupcakes, cakes, cookies, healthy salads, daily soups, freshly cut sandwiches made from homemade bread. Positioning: Bisou Bake Shop Bisou looks set to claim its place as Asian Heritage Row's hot spot with the best tasting treats.

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6.2 Indirect Competitors 6.2.1 Famous Amos

Famous Amos was established in Malaysia as a private limited company under the Companies Act, 1965 on 9 November 1983. They are the franchise holder of "THE FAMOUS AMOS C.C.C.C.(M) SDN BHD" in Malaysia. The first Hot-baked store of Famous Amos was opened in Sungei Wang Plaza and was officiated by the founder himself, Wally Amos on November 30, 1984. Today, it operates over 60 successful Hot-baked stores in shopping malls and airports in Malaysia. Currently, there are nine varieties of chocolate chip cookies which are freshly baked throughout the day in each of their store. By using the best ingredients, like semi-sweet chocolate chips and flavorful nuts, their homemade tasting cookies became famous just by word of mouth. The "Free Smell" from their baked store has been an irresistible aroma of their freshly baked cookies to be enjoyed by true cookie lovers everywhere. Other than cookies, they also introduced freshly baked soft cookies,muffins, brownies, chococolate and also confectionery pick and mix which are complimentary products commonly found in Famous Amos outlets. Readily packed and customized gifts hampers are also available at their outlets. Type: Confectionary

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6.2.2

Secret Recipe

Secret Recipe, founded in 1997, made its mark,renowned for its extensive range of fine quality gourmet cakes and fusion foods. Their outlet concept is a lifestyle caf chain. Secret Recipe has successfully established its brand name in Malaysia, Singapore, Indonesia, Thailand, China and Philippines by virtue of their quality cakes, and fusion food. Secret Recipe is one of the leading and largest caf chain in Malaysia, with Halal certification awarded by Jabatan Kemajuan Islam Malaysia (JAKIM). There are more than 20 types of fusion food, 40 cake creations and pastries, with a flavourful range of ice cream and beverages offered in all Secret Recipe outlets. Type: Snacks

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Chapter 7 SWOT Analysis

__________________________________________________
7.1 Strengths Offers 24 cupcake flavors,custom cupcakes and assorted arrangements. New cupcake flavours are invented during special holiday festives/season. First cupcake bakery (cupcakery) in Malaysia High quality cupcakes by using fresh dairy products and ingredients. Central Kitchen bakes and delivers to franchised outlets, keeping quality consistent. Commitment in innovation in the areas of menu,store design and customer engagement. First to produce large-sized cupcakes Available through online ordering and Cupcake Chic Ocassions (weddings, birthdays, corporate events etc.) 7.2 Weaknesses Outlets are not available in many states. Only focuses in Selangor area. Consumers perception in terms of pricing (expensive) Lack of advertising and promotion Only delivers to Penang, Johor, Wilayah Persekutuan and Selangor for online orders.

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7.3 Opportunities Demands from other areas that will help the brand expand

nationally/internationally. Birthdays, weddings, corporate event etc. celebrations Sponsoring campaigns to increase brand awareness.

7.4 Threats Competition from other brands. Maintaining the taste and originality of cupcakes requires fresh and costly ingredients. Peoples perception that cupcakes are bad for health and contain a lot amount of sugar. Food trend changes often.

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Chapter 8 Strategic Target Audience __________________________________________________

8.1 8.1.1 Proposed Target Audience (Primary) Demographics

a) Age 18-25 years old b) Gender Female c) Education College and universities d) Occupation Students, white collar workers. e) Income Range -Students allowance (RM 100-RM500) -White collar workers income (RM1500- RM3000) f) Race & Ethnicity All races and ethnicity g) Geographical Location Urban and sub-urban areas

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8.1.2

Psychographics

a) Perception Loves spending time with friends and families while enjoying a dessert that is delicious. b) Learning Influences from both digital and social media such as Facebook, Twitter, online blog reviews, online promotion deals and websites. Recommendation by families and friends.

c) Motivation & Needs Loves to experiment different new types of food/flavour. Follows the food trend.

d) Attitude & Personality Hardworking, Focused. Outgoing, Sociable

e) Lifestyle Enjoys having quality time with friends/colleagues, families. Active life routine and may experience a stressful study/work life but knows how to deal with it. Loves attending various type of events (birthdays, small gathering, celebrations etc.)

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8.2 8.2.1

Proposed Target Audience (Secondary) Demographics

a) Age 30-40 years old b) Gender Male and female c) Occupation White collar workers, professionals d) Income Range -White collar workers income (RM1500- RM3000) -Professionals income (RM4000- RM7000) e) Race & Ethnicity All races and ethnicity f) Geographical Location Urban areas and sub-urban

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8.2.2

Psychographics

a) Perception Enjoy having dessert treat by themselves or accompanied by others.

b) Learning Influences from both digital and social media such as Facebook, Twitter, online blog reviews, online promotion deals and websites. Reviews from print ads in magazine,newspaper etc. Recommendation by colleagues,friends.

c) Motivation & Needs Ways of releasing stress from hard work. Trying new types of flavours/food for owns satisfaction.

d) Attitude & Personality Outgoing,Sociable Hardworking,Focused

e) Lifestyle Active life routine and may experienced stressful moments due to working life but knows how to deal with it. Attend various events such as weddings, corporate events, birthdays etc. Enjoy having quality time with friends and families.

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Chapter 9 Market Observation __________________________________________________

9.1 Marketplace Research 9.1.1 Outlet Visit

I took the opportunity of visiting Cupcake Chics outlet at The Curve, Damansara to collect more information about their company. The information such as type of cupcakes, variety of flavours, packaging and servings, the surrounding feeling and ambience of the outlet environment has been observed attentively to study the concept that Cupcake Chic potrayed to their consumers.

Figure 14: Cupcake Chic, The Curve

9.1.2

Outlet Concept

The outlet of Cupcake Chic at The Curve, Damansara is the main outlet owned by the franchisor/founder of the company, Joanne Ho. The outlet is located at a strategic location which is one of the shops front lots at the Ground Floor of The Curve. Their caf outlet is 750 900 square feet, that builds a suitable place for customers to dinein,take-away and also do event functions. From what Ive observed, Cupcake Chic s customers buy their products when they are in the situation of going back home, and also about to go shopping inside the shopping mall. There are also customers who

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prefers finding their personal space at the outlet and also groups of people connecting with each other while having their own quality time at the outlet. 9.1.3 Product Observation behind a transparent glass in a

The products of Cupcake Chic were displayed

horizontal position. The cupcakes each has their flavours labelled in front of them as well as the description of the flavour which makes it easy for customers to choose. According to the menu, there are a total of 24 cupcake flavours with a combination of 12 cupcake flavours that changes daily.

Figure 15: The cupcakes display

Figure 16: Cupcake serving/packaging

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The cupcake serving depends on the quantity of how much cupcake that you are buying. As for dine-in, the cupcake will be served on a plate together with a tissue and a teaspoon. For takeaways, the cupcakes will be placed in a box package according to the suitable size for the total cupcakes quantity. The packaging design of the box includes Cupcake Chics logo and also their brands sticker. 9.2 Market Observation A market observation was done at the outlet in order to find out the number of customers that purchase Cupcake Chics products in a day between 11am to 7pm. There are many categories of customers including children, teenagers, families and also professional workers. Time No. of Customers visited 11am 1 pm 10 1pm 3pm 21 3pm 5pm 16 5pm 7pm 24

9.3 Online Survey An online survey was conducted between 17th July 2012 22nd July 2012 with a set of 20 questions which were put to a survey panel with four categories altogether. The survey received a total of 150 respondents.

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9.3.1

Survey Results

Part 1: Consumer Profile

Question 1: What is your gender?

Male Female

39%

61%

Question 2: What is your age group?

4% 14%
Malay Chinese

22%

60%

Indian Other

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Question 3: What is your race?

4% 14% Malay Chinese 22% Indian 60% Other

Question 4: What is your income/salary?

RM3000 and above

9%

RM1500 - RM 3000

22%

RM 500 - RM1500

28%

RM100 - RM500

38%

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Question 5: Where do you live?

15% Outside Selangor & Kuala Lumpur Within Selangor & Kuala Lumpur 85%

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Part 2: General understanding of cupcakes

Question 6: Are you a fan of cupcake?

36% Yes No 64%

Question 7: How often do you eat cupcake(s)?

Once every few months 25% 31%

Several times in a month

Once a month 11%

25%

Several times in a week 5%

Once a week

Question 7 studies the total percentage of how often consumers eat cupcakes. 31% respondents eat cupcakes once every few months. 25% each for consumers who eat cupcakes several times in a month and once a month. 11% and 5% consumes it several times in a week and once a week respectively.

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Question 8: What is your favourite cupcake brand?

12% Cupcake Chic 10% 3% 6% 40% Wondermilk Bisou Bake Shop A Taste Boutique Cupcake Dazzle Other 29%

Question 8 studies the percentage of which cupcake brand does consumers prefer to eat. The most favourite brand among the respondents is Cupcake Chic with 40% - this shows that the brand is quite well known. The second most favoured brand is Wondermilk with 29%. Other brands which is not stated received 10% whereby 10% and 6% is Cupcake Dazzle and Biso Bake Shop respectively.

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Question 9: What will be the factors that will make you by certain cupcakes?
2% 11% 11% 26% Other Flavours Price range Ingredients used 20% 20% 10% Cupcake design Attractiveness of packaging Brand

Question 9 investigates the factors that consumers take into consideration before buying certain cupcakes.Flavours received the highest percentage with 26%.Price range and cupcake design both received 20% each as one of the factors that makes consumers buy cupcakes. Other factors include attractiveness of packaging (11%), brand (11%), ingredients used(10%) and 2% for factors that are not included in the answer selections.

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Question 10: What occasions do you buy cupcakes for?

2%

15%

22%

Birthday present Wedding gifts For myself

18%

10%

Party snacks Suprise for special person Other

33%

Question 10 shows the percentage of ocassions that consumers buy cupcakes for. The highest ocassion received 33% which is for consumers themselves. This explains that they like to treat themselves with a dessert treat once in a while. Another ocassion received the second highest percentage (22%) which is the ocassion for birthdays. Other ocassions include party snacks (18%), surprise for a special person(15%),wedding gifts(10%) and another 2% for ocassions that are not stated in the list.

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Question 11: What is your favourite cupcake Klavour?

Vanilla 49%

Coffee

13%

Red velvet

35%

Fruit-based

27%

Chocolate

55%

Other

5%

Question 11 studies the cupcake flavours most favoured by consumers. The total percentage is more than 100% due to the selection of favoured flavours varied by consumers themselves. It is shown that chocolate flavour received the highest percentage of 55%, followed by 49% for vanilla and 35% for red velvet. Other flavours include fruit-based flavours (27%), coffee(13%) and other flavours that are not listed (5%).

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Part 3: Cupcake Chic Brands Awareness

Question 12: Have you heard of Cupcake Chic?

40%

Yes 60% No

Question 13: If so, how did you hear about it?

Print media (magazines,newspapers etc.) 6% 15% Digital media ( social network, online ads, blog reviews etc.) Recommendation from friends/family 30% Never heard of it

24%

25% Other

Based on Question 12 and 13, 60% respondents have heard of Cupcake Chic and 40% do not know about the brand. According to the percentage, 30% have heard it through digital media which shows Cupcake Chics efforts of online promotions. 25% respondents have heard of Cupcake Chic through recommendation from friends/family and 24% have never heard of the brand. Other than that, 15% and 6% have heard of Cupcake Chic through print media and other sources respectively.

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Question 14: How would you describe the products of Cupcake Chic?
Expensive I have no clue Popular Nice design Cheap Attractive packaging Delicious Other 2% 2% 23% 30% 15% 21% 27% 28%

Question 14 shows the percentage of description for Cupcake Chics products by consumers. The percentage is more than 100% due to consumers choosing more than 1 selection for the answer. It is stated that consumers perception of the products are delicious (30%),expensive(28%)and also having nice design (27%). Other descriptions include the attractive packaging of the products(23%), popular brand (21%), cheap (2%),and 15% have no clue about the products. Another 2% is for the descriptions that are not listed in the answer selections.

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Question 15: What are your main dissatisfactions of Cupcake Chic?

Price range Nutrition Promotion Cupcake design Flavours / Taste Packaging Other 8% 8% 14% 15% 18% 41% 48%

Question 15 analyzes the percentage of dissatisfactions for Cupcake Chics products by consumers. The percentage is more than 100% due to consumers choosing more than 1 selection for the answer. It is shown that majorites of consumers are not satisfies with the price range (48%) and also the promotion of Cupcake Chic (41%). Other than that, the dissatisfactions faced by consumers are, less nutrition (18%),flavours/taste (15%), and cupcake design (14%). As for packaging design and other dissatisfactions that are not stated in the answers both received 8% each.

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Question 16: Have you heard of Livin' Large Cupcakes by Cupcake Chic?

32%

Yes No

68%

Question 17: If given opportunity, which part of Cupcake Chic do you want to see improvement on?
65%

46%

27% 13%

Advertisement & Promotion

More `lavours

No. of outlets

Packaging design

Question 16 investigates whether consumers have heard of Cupcake Chics latest products, the Livin Large Cupcake. Majorities of consumers answered No(68%) and only 32% answered Yes. Based on Question 17, it is shown that the improvements that consumers want to see are advertising and promotion of Cupcake Chic (65%) and also the expand the number of outlets (46%). Other than that, consumers would like to see improvement on cupcake flavours (27%) and the packaging design (13%).

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Question 18: From your experience, will you return for more Cupcake Chic products? (Familiar customers)

30% Yes 70% No

Question 19: Based from this, would you try Cupcake Chic products? (Unfamiliar customers)

19% Yes No 81%

Question 18 and 19 analyzes the percentage of familiar and unfamiliar customers of Cupcake Chic. 70% familiar customers answered Yes(70%) to return for more Cupcake Chic products while 30% said No. As for unfamiliar customers, 81% said that they would like to try Cupcake Chic products and only 19% said no. This shows that Cupcake Chic is considered as a trusted brand by consumers that will still want to buy or try out their products.

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Part 4: Lifestyle Review

Question 20: Does the choice of cupcake brand reKlects your lifestyle?

No

70%

Yes

30%

According to Question 20, 70% consumers disagreed that the choice of cupcake brand reflects their lifestyle whereby 30% agreed for the statement. This explains that majorities of consumers lifestyle when it comes to eating dessert does not depend on the brand itself but also to their choice of flavours and taste of the products. 9.3.2 Survey Conclusion

From the results of the survey, it is shown that the brand awareness of Cupcake Chic is still not up to the high level of expectation. Majorities of consumers have dissatisfation with the price range of the products. Other than that, consumers prefer Cupcake Chic to improve more on advertising and promotion as well as expand the number of outlets to other areas outside Selangor. On the good side, a lot of consumers chooses flavours as the highest factor of whay they buy cupcakes. This gives Cupcake Chic an opportunity to draw customers attention through their unfailing promise of varities through cupcake flavours. Promotion for their products have to be enhanced in order to expand Cupcake Chic as the leading cupcake products in the future.

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9.4

Interview

The interview was done through in person dialogue. I had the opportunity to interview the Product Innovation Chief, Swee San at Cupcake Chics booth during the Franchise International Malaysia Exhibition on the 8th July 2012. I also did an informational interviewing with Cupcake Chics founder, Joanne Ho through e-mail.

Franchise franchise@cupcakechic.com.my to me Dear Amira Fateha,

Jul 26 (6 days ago)

Thank you for dropping by the Cupcake Chic booth during the Franchise International Malaysia expo a couple weekends ago. Listed below is our company history as you have requested. Cupcake Chic is Malaysia's first premier cupcake specialist bakery, also known as a cupcakery, established in January 2008.We are bringing the popularity of the retail cupcake industry (worth US$6 billion in the US and growing at +35% year on year) from the USA to Malaysia and other parts of Asia Pacific. Our outlets have shown strong double digit growth since 2008 and it is largely due to the versatility of cupcakes. It's not just a dessert like ice cream and donuts to be enjoyed impulsively or with friends/family but perfect also for celebrations large or small such as weddings, corporate events, birthday parties, baby full moon, etc. (we call this Cupcake Chic Occasions). A franchisee profits not only from their retail outlet but from special occasions as well as online sales. This is what makes our franchise opportunity unique. We are not just about cupcakes alone. We are constantly innovating our menu to include macarons, giant-sized cupcakes, biscottis, gourmet espresso coffee as well as cookies, brownies and a breakfast/lunch/dinner menu soon to be launched - all to clearly position the brand as the place and way to celebrate life.We have 3 franchise investment packages. They are Compatto, Medio and Famiglia (each meaning Compact size, Medium size and Family size). The attachment gives a brief explanation of each store type. All a franchisee does is open shop and provide the best customer service to grow your business. Thank you for your interest in our company for your final year project. Best regards, Joanne Ho Managing Director Cupcake Chic Sdn Bhd Email: joanne@cupcakechic.com.my
www.cupcakechic.com.my No. 5-1, Jalan PJU 1/3B, Sunwaymas Commercial Centre, 47301, Petaling Jaya, Selangor, Malaysia Tel: +6 03 7886 3006 Fax: +6 03 7880 0962

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Chapter 10 Precedent Studies __________________________________________________

10.1 Advertising Strategy The advertising strategy by Cupcake Chic involved a lot of offers through online deals and promotion. They often included their latest news, upcoming events and latest promotion which can be found in their official website and also their Facebook fanpage which is updated regularly. Their customer database has over 5,000 on email and also 75,000 on Facebook accurately up to this date.

Figure 17: Promotions for new limited edition flavours

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Figure 18: Promotions related to events and activities / online deals

63

Figure 19: Promotions for new products

64

Figure 20: Promotions during charity and festive seasons

65

Figure 21: Online news and articles about Cupcake Chic in magazines

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Figure 22: Newspaper articles about Cupcake Chic

67

Figure 23: Cupcake Chics radio and TV interview

68

10.2

Precedent Studies

Wondermilk Cuppacakes

Figure 24: Wondermilk Cuppacakes online promotion

69

Bisou Bake Shop

Figure 25: Bisou Bake Shops promotions

70

Famous Amos

Figure 26: Famous Amoss online promotions

71

Secret Recipe

Figure 27: Promotions for Secret Recipes products

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Chapter 11 References __________________________________________________

1. Cupcake Chic. (2010). Cupcake Chic. Retrieved from http://www.cupcakechic.com.my/new/ 2. Cupcake Chic Facebook fanpage. (2009) Retrieved from http://www.facebook.com/CupcakeChic 3. Cupcake Chic Twitter page. (2009) Retrieved from http://twitter.com/thecupcakechic 4. The Star Online. (2009) Food banks - How it works?. Retrieved from http://thestar.com.my/lifestyle/story.asp?file=%2F2009%2F12%2F20%2Flifef ocus%2F5321812&sec=lifefocus 5. Trip Advisor. (ND). Cupcake Chic review. Retrieved from http://www.tripadvisor.com.my/Restaurant_Review-g298313-d1082725Reviews-Cupcake_Chic-Petaling_Jaya_Petaling_District_Selangor.html 6. Red Card. (2012). Red Card promotion (Cupcake Chic). Retrieved from http://redcard.my/restaurant/Cupcake-Chic.php 7. Freda Liu. (2010). Cupcake Chic Interview with BFM89.9. Retrieved from http://bfm.my/assets/files/Open%20For%20Business/2010_01_21_OpenForB usiness_CupcakeChic.mp3 8. Nazirah Ashari. (2011). Bernama Interview - CEO Trivia with Joanne Ho of Cupcake Chic. Retrieved from http://www.youtube.com/watch?v=l8mUjLzfZdI 9. Ezreena Yahya. (2010). Wedding Guide Asia - Themed Cupcakes from Cupcake Chic! . Retrieved from http://www.weddingguideasia.com/wed/themed-cupcakes-from-cupcake-chic/ 10. Dorothy Fong. (2010). Cupcake Chic New Website. Retrieved from http://www.idotyou.com/news/cupcake-chic-new-website/ 11. S. Nearby. (2012). Demographics of the cupcake bakery. Retrieved from http://sg.shownearby.com/place/The-Cupcake-Bakery/322654/demographics

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12. Katie Utken. (2012). Movement from cakes to cupcakes. Retrieved from http://hilite.org/archives/22130 13. Paula Pant. (2012). The Icing on the Cupcake. Retrieved from http://beta.fool.com/paulapant/2012/03/26/icing-cupcake/3115/ 14. PRWEB. (2011). Sugar Rush. Retrieved from http://www.prweb.com/releases/2011/10/prweb8885470.htm 15. MIDA. (2012). Industries in Malaysia. Retrieved from http://www.mida.gov.my/env3/index.php?page=food-industries 16. Emma Gem. (2008). Malaysias Cupcakes Directory. Retrieved from http://www2.emmagem.com/2008/04/08/malaysias-online-cupcake-storedirectory/ 17. Market Watch 2012. Retrieved from http://www.malaysia.ahk.de/fileadmin/ahk_malaysia/Market_reports/The_Mal aysian_Food_Industry.pdf 18. Famous Amos. Retrieved from http://www.famousamos.com.my/ 19. Wondermilk Cuppcakes. Retrieved from http://www.ilovecuppacakes.com/ 20. Bisou Bake Shop. Retrieved from http://www.bisou.com.my/ 21. Secret Recipe. Retrieved from http://www.secretrecipe.com.my/ 22. Food Promotions. (2010). Cupcake Chic Buy 5 free 1. Retrieved from http://www.foodpromotions.com.my/2010/03/cupcake-chic-buy-5-free-1-buy9-free-3.html 23. Groupsmore. (2010). 50% off Share 1/2 dozen. Retrieved from http://www.groupsmore.com/cities/selangor/deals/cupcake-chic 24. Groupon. . (2010). 50% off Share 1/2 dozen. Retrieved from http://www.groupon.my/deals/klang-valley-selangor/groupon-my/715890337

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Chapter 12 Appendices __________________________________________________

12.1 Survey Questions

Part 1: Consumer Profile 1. What is your gender? Female Male 2. What is your age group? 12-17 18-23 24-29 30 and above 3. What is your race? Malay Chinese Indian Other: _____________ 4. What is your income/salary? RM100 - RM500 RM 500 - RM1500 RM1500 - RM 3000 RM3000 and above 5. Where do you live? Within Selangor & Kuala Lumpur Outside Selangor & Kuala Lumpur

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Part 2: General understanding of cupcakes 6. Are you a fan of cupcake? Yes No 7. How often do you eat cupcake? Once in a week Several times in a week Once a month Several times in a month Once every few months 8. What is your favourite cupcake brand? (You can select more than 1 answer) Cupcake Chic Wondermilk Bisou Bake Shop A Taste Boutique Cupcake Dazzle Other: _____________ 9. What would be the factors that will make you buy certain cupcakes? (You can select more than 1 answer) Brand Flavours Price range Ingredients used Cupcake design Attractiveness of packaging Other: _____________ 10. What ocassions do you buy cupcakes for? (You can select more than 1 answer) Birthday present Wedding gifts For myself Party snacks Suprise for boyfriend / girlfriend Other: _____________

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11. What is your favourite cupcake flavour? (You can select more than 1 answer) Vanilla Chocolate Fruit-based Red velvet Coffee Other: _____________ Part 3: Cupcake Chic Brands Awareness 12. Have you heard of Cupcake Chic before? Yes No 13. How did you hear about it? (You can select more than 1 answer) Print media (magazines,newspapers etc.) Digital media ( social network, online ads, blog reviews etc.) Recommendation from friends/family Never heard of it Other: _____________

14. How would you describe products by Cupcake Chic? (You can select more than 1 answer) Expensive Delicious Attractive packaging Cheap Nice design Popular I have no clue Other: _____________

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15. What are your main dissatisfactions about Cupcake Chic? (You can select more than 1 answer) Price range Packaging Flavours / Taste Cupcake design Promotion Nutrition Other: _____________

16. Have you heard of Livin' Large Cupcakes by Cupcake Chic? Yes No

17. If given opportunity, which part of Cupcake Chic do you want to see improvement on? (You can select more than 1 answer) Advertisement & Promotion More flavours No. of outlets Packaging design 18. From your experience, will you return for more Cupcake Chic products? (Familiar customers) Yes No 19. Based from this, would you try Cupcake Chic products? (unfamiliar customers) Yes No Part 4: Lifestyle Review 20. Does the choice of cupcake reflects your lifestyle? Yes No

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No. 1 1.1 1.2 1.3 2 2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8 2.9 2.10 2.11 2.12 2.13 3 3.1 3.2 3.3 3.4 3.5 3.6 3.7 3.8 3.9 3.10 3.11 3.12 4 4.1 4.1.1 4.1.2 4.2 4.2.1 4.2.2

TABLE OF CONTENTS Title Chapter 1: Project Overview Introduction Problem Statement and Issue Objectives and Aim Chapter 2: Project Profile Product Name Product Classification Product Characteristics Product Range Distribution Product Life Cycle The Brand Brand Image and Implication Strength and Weakness Advantages and Disadvantges Unique Selling Proposition (USP) Promotional History and Advertising Schedule Positioning Statement Chapter 3: The Company Company Overview Business Description Company History Key People Location and Subsidaries Brand, Major Products and Services Corporate Vision Corporate Mission Companys Current Promotional Strategy Product Sales History Current Marketing Objectiv Media Expenditure Chapter 4: Consumers and Stakeholders Current Consumers Characteristics Demographics Psychographics Stakeholders Characteristics Primary Secondary

Page 1 1 2 2 3 3 3 3 5 11 12 12 13 13 14 14 14 18 19 19 19 20 21 21 22 23 23 23 24 24 25 26 26 26 27 28 28 28

No. 5 5.1 5.1.1 5.1.2 5.1.3 5.2 5.2.1 5.2.2 6 6.1 6.1.1 6.1.2 6.2 6.2.1 6.2.2 7 7.1 7.2 7.3 7.4 8 8.1 8.1.1 8.1.2 8.2 8.2.1 8.2.2 9 9.1 9.1.1 9.1.2 9.1.3 9.2 9.3 9.3.1 9.3.2 9.4

Title Chapter 5: The Industry and Marketplace The Industry Definition of the Industry Shape of the Industry Development of the Industry The Marketplace Current Condition of the Marketplace Changes in Marketplace Chapter 6: Competitive Situation Direct Competitors Wondermilk Cuppacakes Bisou Bake Shop Indirect Competitors Famous Amos Secret Recipe Chapter 7: SWOT Analysis Strengths Weaknesses Opportunities Threats Chapter 8: Strategic Target Audience Proposed Target Audience (Primary) Demographics Psychographics Proposed Target Audience (Secondary) Demographics Psychographics Chapter 9: Market Observation Marketplace Research Outlet Visit Outlet Concept Product Observation Market Observation Online Survey Survey Results Survey Conclusion Interview

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No. 10 10.1 10.2 11 12 12.1

Title Chapter 10: Precedent Studies Advertising Strategy Precedent Studies Chapter 11: References Chapter 12: Appendices Survey Questions

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