MARKETING PLAN OF GARDENIA DELICIA WAFFLE

BUSINESS STUDY (QSA 0294)

GROUP 506
SEMESTER 3 ,2014/2015

1. 142097

MUHAMMAD ASYRAF BIN NORIZAN

2. 141818

MUHAMMAD ZULHAIRI IZAAN BIN ANUAR

3. 140061 MUHAMMAD FARIS BIN MUHAMMAD IDRIS

4. 144806

UMAIR BIN HISHAMUDIN

PRODUCT : GARDENIA DELICIA WAFFLE

COMPANYS NAME : GARDENIA BAKERIES (KL) SDN. BHD.
TYPE OF BUSINESS : FOOD
INDUSTRY : FOOD MANUFACTURING
LECTURERS NAME : SIR ABDUL RAZAK BIN ABU BAKAR

INTRODUCTION

Gardenia Bakeries (KL) Sdn. Bhd. Is one of the company that produces and
manufactures various types of breads which they are also the main source
of food in
Malaysia.It is located in Lot 3 JalanPelabur 23/1 40300 Shah Alam,
Selangor Darul Ehsan
and its contact number is 03-5542 3228. This company also have many
branches in other
countries like Lebanon,Qatar, USA and others as this company applicate
one of the type of
business which is franchise. The history begins when in 1969, an American
named Horatio
SyeSlocumm wassent by the InternationalExecutive Service Corps toEast
Malaysia to start
a bakery.Mr. Slocumm brought with him 35years of baking experiencewith
one of
Americasleading chain of bakeries.The Gardenia brand namewas
conceived in the same
year.

Gardenia achieves its phenomenal growth anddominance through a

distinctive style of
breadmaking.The traditional sponge and doughmethod is used to make
every single loaf of
Gardenia bread. This bread-making techniqueallows the dough to develop
naturally, giving it
the unique Gardenia texture and flavour as wellas lengthen its shelf life.
Gardenias high
factoryhygiene standards further ensure a longer shelf life for its bread
once they leave the
factory. For the recent development of this company, Gardenia Delicia
Waffle was

introduced in 2011 and this is one of their way to fulfil the demand of their
customers by
staying abreast with industryinnovations and baking technologies.They
also opened up yet
another potential segment in themarket place. Gardenia DeliciaWaffles
allow consumers to
enjoy waffles in anyway, anytime of the day and anywhere. Easyaccess of
the product plus a
sound marketingstrategy has contributed to its success,
winningcustomers who never give
the product a chanceto sit on the shelves for long.

EXECUTIVE SUMMARY

The third millennium has introduced to us lifeat a speed of change and

this has fuelled
anever-spiralling need for food designed to meetthe demands for
freshness, convenience,
variety and uncompromising taste. Malaysians are noexception on this
score. In Malaysia,
Gardenia,has successfully found the right recipe to establish itself as a
leader in its class and
so for the Gardenia Delicia Waffle. It have been established in the year of
2011 and they
considered as the greatest development and achievement that they grab
for the sake of the
company as there were no other company that have such their new
product which is waffles.
From this also have been provided with several flavours like banana,
blueberry, tiramisu and
so on.

Gardenia Bakeries, with hits sound financial position and affiliation, would
allow
itto either set up anew plant in Mindanao area to capture the undeserved
area. Not only
would create jobs, , this strategy would also allow Gardenia to minimize
intermediaries,
enabling better inventory and logistics control.Meanwhile, to capture nonusers such as those
who rely on rice, crackers,cereal, corn or anyreadily-available food,
Gardenia should craft
and organize marketing efforts to create adesire for the products.
Dedicated salesmen
should be assigned on this particular project tofacilitate feedback
mechanism.One example
of creating a desire is by engaging the services of celebrities which the
targetmarket can
highly associate themselves with. This also shows that Gardenia company
had their own
plans and strategies to increase their sales revenue and attract more
target markets.

ENVIROMENTAL ANALYSIS
ECONOMIC FORCES :
-

Gardenia supplies different kind of bread to satisfy human needs

and wants and also
the demand of consumers. Demand defines as the consumers
desire and willingness

to pay for a specific goods or service. Law of demand states that

when the price of
goods and services decrease, demand for the goods or services will
increase and vice
versa.
SOCIO-CULTURAL FORCES :
-

At Gardenia, special Halal Committee is formed to implement every

aspect of Halal
regulations and to ensure that all requirements are stringently
adhered to. As an added
measure to control and safeguard their Halal status, they have
appointed an
Independent Syariah Advisor whom Gardenia could refer to in
syariah related matters.

POLITICAL FORCES :
-

Political factors play a vital role for the business prevailing in the
country. Well
governmentis inactive in the company advances at a standard rate
but the other way
round, a drastic fallcan be seen.

COMPETITIVE FORCES :
-

Malaysian breadmaker Gardenia is facing a storm of protests after

citizens called for
the boycott of its products. The citizens claim that the company is
discriminating
against one of its suppliers for "racial reasons".They have also
alleged that the
company is owned by "an Umno crony". Umno is the largest party in
the Barisan

Nasional ruling coalition.To make its side of the story heard,

Gardenia Bakeries (KL)
has taken out full-page advertisements in English dailies, refuting
the claims.
LEGAL AND REGULATORY FORCES :
-

The Government set price ceiling to avoid supplier from setting the
price high above
the price ceiling and so consumers can buy it at an equilibrium
price. A price ceiling
is a regulation that makes it illegal to charge a price higher than a
specific level. When
the price ceiling is set above the equilibrium, it has no effect. The
market works as if
there were no ceiling and it is illegal. But if the price ceiling is set
below the
equilibrium line, it has powerful effect. This will affect the suppliers
as the price has
to remain low. To increase the demand and maximize the profit,
suppliers will
produce less amount of flour.This will cause a shortage and some
consumers are
willing to pay more which is above the equilibrium price to get the
same amount of
flour. Shortage goes serious when flour produces in Malaysia who
export flour to
overseas are taking advantage of the higher price.

TECHNOLOGICAL FORCES :

For the determinants of supply, the technology in Gardenia factory

is very important
to meet the consumers need. The modern the technology of
Gardenia factory, the
more supply can provide to consumers every day. According to the
Gardenia official
website, Gardenia bakeries is producing 2million of bread every day
to fulfill the
demand in 22,000 outlets around all the state in Malaysia. This
makes the supply
curve shift rightward.

The figure shows the machine that help Gardenia Company to produce
Gardenia Delicia Waffle

SWOT ANALYSIS

For the aspect of strengths ,Gardenia Bakeries (KL) Sdn. Bhd. had
perceived
theirsuperior quality products (freshness and taste, awards) and also
widen the coverage and
distribution, and top the line production (extensive territorial distributors;
6,000 loaves per
day).Besides that, they also have an ability to make rapid expansion while
supported by a
conglomerate with proven market success (QAF Group). Growing flank
product lines multiawarded company are also the strengths that owned by the company.

Moreover in their weaknesses, they have limited

availability/penetration to
lower-end market (sachet economy) and no stand-alone stores. For
their aspect of
opportunities, they are facing a growing economy and rising
middle class despite in
their effort to make an improvement on market coverage and
distribution.
Furthermore, they also face a lots of threats such as convergence
of competitors ,
bargaining power of retailers, inflation and tariff and also global
economic crisis.For
the interesting part, Gardenia Bakeries also faced several challenges
from their rival
company, Massimo. As an example, at one time because of the
political disputes,

Massimo promoted their products and at the same time they do

some boycotts over
Gardenia Bakeries. This was happened some of them said that
Gardenia bread is
represent to Malay bread and Massimo bread is Chinese bread.

GARDENIA MARKETING OBJECTIVES :

The group believes that Gardenia Bakeries objectives should be

expansionary, given its
current standing in the market. A market leader can maintain, grow and
protect its position in
the market by employing strategies focused on the following:
-

acquire new customers which are around 10,000 including buyers

encourage more frequent usage from 4% to 8% in order to increase

the target market

find new uses of product to improve our market shares

MARKETING STRATEGIES

9.1 TARGET MARKET

This Gardenia Company has made lots of efforts in doing the way to
search target
markets.One of the target markets especially for the Gardenia
DeliciaWaffle is the

kids.There are variety of sizes and types of packaging for this product.For
example, the big
packet of this product contains two small waffles and each small waffles
were packaged in
individually pack. This kind of packaging eases the users as when
someone wants to eat only
one,the other pack will be kept easily, and this packaging has been
implemented to the other
product like Twiggies.

9.2 MARKETING MIX

# PRODUCT
The product that we want to focus in this assignment is
GardeniaDelicia Waffle. This
product has been classified as convenience product which is frequently
purchased item for
which buyers want to exert only a minimal effort and it also relatively
inexpensive. As an
example, the other bread companies such as Massimo , Mighty White and
High Five do not
produce such as this product (waffles) as the company (Gardenia
Bakeries) interested to
make a unique innitiative to make their product lines different with them .
1. Packaging- divided by two types; which are small and big pack.The
big pack
contains two small waffles and both are packed individually.
2. Branding- manufacturer brand; to show that it is officially owned by
Gardenia
Bakeries (KL) Sdn. Bhd.

3. Labelling- the poduct has been labelled with the ingredients of it and
registered with
trademark symbol R

# PRICE
Gardenia Delicia Waffle is the first ready to eat waffle and it is not the
same like other
bread companies. For this product, it has been sold in the price of RM 1.40
in the Peninsular
of Malaysia while in Sabah and Sarawak it has been sold in the price of RM
2.80.For the mini
packet of waffle it is sold with RM 0.85. For the aspect of the loaf bread,
both Gardenia and
Massimo (the rival of Gardenia) are different with their pricing of the
bread. For example, the
shortloafe bread for Massimo is RM 2.50 while for Gardenia is RM 2.40
(only less ten
cents). This shows that Gardenia loaf bread is more cheaper than Massimo
loaf bread.

# PHYSICAL DISTRIBUTION / MARKETING CHANNEL

The Gardenia Bakeries (KL) Sdn. Bhd. Has done their distribution channels
of

Gardenia Delicia Waffle which known as traditional channel because many

consumer goods
(especially convenience goods) pass through wholesalers to retailers from
the producer.A
wholesaler is a middleman that sells products to the other firm. These
firms may be retailers,
industrial users or other wholesalers. In Singapore, we have a wide
distribution network of
some 3000 distribution points which helps us to reach out to more
consumers on a daily
basis. Our distribution team's dedication and hard work through the wee
hours of the night
and early morning help to ensure only the finest quality breads reach our
consumers by
delivering Gardenia's home-baked bread fresh daily to all our outlets 364
days a year.

The figure shows one of the Gardenia Bakeries (KL) Sdn. Bhd. Transports
for distribution of Gardenia Delicia Waffle

# PROMOTION
Gardenias tagline and endearing signature tune,So good you can even
eat it on its

own, is a hit inevery household. In this brilliantly organised

radiocampaign, more than 20
versions of the jinglehas been played on almost every radio channelacross
Malaysia.
Consequently, Gardenia wonthe Advertising and Marketing Magazines
BestRadio
Campaign Award for creativity.The successful inclusion of the
Bakermanicon in all its
marketing and communicationsmaterials, such as point-of-sales
marketingcollaterals, header
boards and uni-poles, hassucceeded in building an emotive bond withthe
consumer. Today,
theBakerman personifiesGardenias wholesome corporate
identity.Gardenias educational
factory tours offerconsumers a rare glimpse at how fresh bread ismade.
Groups of school
children and adults aregiven a tour from the safe confines of catwalksbuilt
right above the
production floors. Theseeducational tours have to be booked monthsin
advance, due to
overwhelming requests fromthe public.

# MARKETING IMPLEMENTATION
1. Puschart Selling
For those short on starup funds, the company has started offering gigs as
pushcart
salesmen. All that is needed to become a Gardenia pushcart seller is a
barangay or NBI
clearance. The company will provide the pushcart, three sets of uniform,
and even the P1,000

worth of initial inventory.The pushcart seller can get his bread daily either
from the
territorial distributor in his area, or directly from the delivery personnel of
Gardenia. A seller
can earn P7.25 per loaf of bread that they sell.
2. The Gardenia Pedicart
For those who wish to venture in micro-entrepreneurship, marketing
fast selling
Gardenia bread products primarily house-to-house in the mornings
and secondarily
near market centres , churches, community centres, office clusters
and other heavy
commuter traffic areas during peak hours.A franchise area will be
designated by
Gardenia to a Pedicart distributor/franchisee without the need for a
franchise fee,
except for a minimal investment on the cost of the pedicart and
revolving fund to cover
the daily merchandise that will be sold.
Fresh Gardenia breads will be delivered daily to the franchisee and
any unsold
bread will be replaced by the company with fresh stocks to ensure
that only the freshest
breads are sold which is in line with Gardenias freshness guarantee
and high quality
policy. This way, individuals, families, OFWs, housewives, others
wanting to start a
business can have an opportunity venturing in this profitable
project.The pedicart will
also provide the vending crew person or vendor an opportunity to
earn at least P300 for

a half days work, and double the income with a second round in the
afternoon or early
evening. This creates employment opportunities especially for those
looking for work
or are underemployed.

SALES BUDGET FOR GARDENIA DELICIA WAFFLE

Gardenia Delicia Waffle
Sales Budget
December 31 2014
Departme
nt

Second
Quarter(R
M)
25,000

Third
Quarter(R
M)
30,000

Fourth
Quarter(R
M)
45,000

15,000

15,000

12,000

12,000

54,000

School
Canteen

50,000

30,000

45,000

55,000

180,000

Total

85,000

70,000

87,000

112,000

354,000

Kindergart
en
Canteen
Office
kiosk

First
Quarter
(RM)
20,000

From January 1 2014 to

Total(RM)

120,000

CASH BUDGET FOR GARDENIA DELICIA WAFFLE

GARDENIA DELICIA WAFFLE
Cash Budget
December 31 2014
Aspects

Cash sales
and
collections

First
Quarter
(RM)
85,000

From January 1 2014 to

Second
Quarter(R
M)
70,000

Third
Quarter(R
M)
87,000

Fourth
Quarter(R
M)
112,000

Total (RM)

354,000

Less
payments
Purchases
Wages
Rent
Other
expenses
Taxes

120,000
24,000
9,000
3,500

90,000
20,000
9,000
3,500

100,000
25,000
12,000
5,000

60,000
30,000
45,000
5,800

370,000
99,000
75,000
27,000

8,000

8,000

10,000

10,000

36,000

Total
payments

164,500

130,500

152,000

150,800

607,000

Cash gain
or(loss)

79,500

60,500

65,000

38,800

253,000

TABLES OF CONTENTS

No.

Contents

Page

Introduction

Executive Summary

Environmental Analysis

3-5

SWOT Analysis and Marketing Objectives

5-6

7-9

Marketing Strategies
9.1 Target Market
9.2 Marketing Mix
- Product
- Price
- Physical Distribution/ marketing channels
- Promotion
Marketing Implementation

Sales and Cash Budget

11-12

10