1.0 Introduction
For our assignment, we have chosen Papparich Restaurant. Papparich Group was established in 2005 with its 1st outlet in Selayang Mall. Today PappaRich has grown extensively and with a total of 50 outlets nationwide and continuously growing rapidly. They are emerging as a formidable player in the local food and beverage chain.
The popularity of lifestyle Malaysian Delights outlets is attributed largely to the introduction of its high quality food offering such as; Freshly-baked bread and buns, The traditional toast with kaya and butter, Nasi lemak, Nasi kunyit, Fried kuey teow, Curry laksa, Asam laksa, Chicken rice, Prawn mee, Mee goreng, Cendol, Ice kacang and many more!-All items are available at an affordable prices and all prepared with the finest fresh ingredients to retain PappaRich original flavor and taste. PappaRich has experimented extensively and developed recipes that resulted in palatable Malaysian delights that appeal to the mass market.
In addition to the fresh food, they also offer the best choice of excellent gourmet coffees to our patrons. PappaRich coffee is brewed with specially blended local selected gourmet beans.
With PappaRich open concept, you are able to see the Pappa White Coffee, roti bakar etc being prepared on the spot, thus providing a unique eating experience that becomes a reason enough for them to continuously return for more.
They have tastefully decorated outlets in earthy colors to reflect cozy relaxing ambiance, a clean and comfortable environment that fills a niche that satisfies those who are looking for a quick bite or to pass time leisurely.
2.1 List of competitors i) Old Town White Coffee ii) Roti Bakar
iii) Kopitan Classic White Coffee Background of Old Town White Coffee
OldTown white coffee was created in 1958, in Ipoh Town, Malaysia. It still is a classic coffee shop in 1958, until now with more than 10 years of experience in the coffee beverage industry already.
In 1999, Mr Goh, Ching Mun and Mr Tan Say Yap created their own blend of 3-in-1 instant white coffee under Old Town brand name. The began name is White Coffee in Ipoh.
In 31 October 2009, 3-in-1 instant coffee mix was sold 1,348 retail outlets nationwide in Malaysia, 550 retail outlets in Singapore which is first export country in 2006 and the next export country is 2,100 retail outlets in Hong Kong. Until now it has had 224th store already.
In the 2002, they successfully expanded their 3-in-1 instant coffee mix to cover East and West Malaysia.
Background of Roti Bakar
Kafé RotiBakar, founded in 2006, serves a variety of food ranging from toasted bread to a wide range of hot-cooked food.
Kafé RotiBakar opened its first outlet at Plaza Ivory, Off USM, few years back and has expanded with another new outlet, which was opened in April '09, at Penang Times Square.
As the 1st outlet mostly patronize by USM students from all over the world, and surrounding residents from South-East of Penang, the 2nd outlet is mainly to cater the residents and people working around Georgetown.
The slogan for Roti Bakar, which is “So let’s drop by and Makan Roti dan Minum Kopi when you're free!”
Background of Kopitan Classic White Coffee
Kopitan Classic White Coffee is a well-known food and beverages chain business brand in Malaysia. It is also a local successful business model in food and beverages that sells food and drinks widely accepted by various ethnic groups and win public acclaim. The successful food and beverages chain business brand was founded in 2006 in Penang, Malaysia. After years of efforts, we managed to open 12 outlets in northern Malaysia and received wide acclaim.
Kopitan Classic White Coffee is operated in a shop pattern that presents a nostalgic style and concept. Our hygienic environment, tasteful furnishings and wide range of food and drinks with local characteristics earn the support of customers. Kopitan Classic is a brand of food and drinks of great potential for development. It is a brand that is representative of Malaysian multi-ethnic food as well as an eatery that is given public recognition. It is also a representative brand that helps promote Malaysian delicacies.
2.2 Competitors Products Summaries Types of Food PappaRich Competitors Old Town White Coffee
Roti Bakar Kopitan Classic
Nasi Lema k White Coffee Chees e Toast Bread - -Kaya & Butter Toast Bread
Weste rn Deligh t -Penan Curry Mee - -Haina n Chick en Rice - -Penan g Prawn Mee -
-Old Town White Coffee
Old Town White Coffee is more stand out as the true white coffee. They use 3 different types of premium beans to brew their coffee to ensure that their customers enjoy their best white coffee every time. In this case, many customers and coffee lovers will continue visit them as their white coffee is much better than others. They also produce white coffee packs to fulfill their customers’ want which is they can brew a nice cup of white coffee even they’re at home. Besides coffee, they got variety foods for consumers to choose such as Nasi Lemak which is their signature food, Penang local noodles which is Asam Laksa, Hokkien Mee and so on, different kind of toast bread and also light snacks. To attract more customers, their value set is
available for all day. Their value set included all of their main courses and the price is reasonable. Now, they even serve with desserts!
Roti Bakar Kafe
Roti Bakar Kafe is a café that produce different types of new recipe of toast bread. They use the idea of traditional toast bread and investigated new tastes of toast bread which is cheese toast bread. Their cheese toast bread attracted many customers like teenagers and cheese lovers. They got variety types of cheese toast bread with
different type of ingredients such as prawn, potato and ham. Other than this, of course they serve traditional toast bread too. But the cheese toast bread make Roti Bakar Kafe more different with competitors. To attract more teenagers customers and fulfill their food satisfaction, Roti Bakar Kafe also serve pizzas which is Hawaiian Pizza and Chicken Ham + Sausage Pizza. Except toast bread, they serve rice and noodles too but there’s plenty of choices if compare with its competitors.
Kopitan Classic
Kopitan Classic serves multi-ethnic Malaysia food. Their Mama’s special sesame oil chicken and Thai style tomyam seafood are their customers’ favorites. What makes them different with its competitors is their value family set and children set. Their family set included Hainan chicken rice, Supreme Chicken, Lemon chicken and stir fried different flavor of chicken. Besides this, they also serve children set which is their competitors don’t serve. Their children set are quite attractive with colorful plates and children’s favorite foods.
Old Town White Coffee STRENGTH
The profits obtained by Old Town White Coffee are quite high compared to other coffee shops in Malaysia.
It offers other foods, such as ‘Heavy food’ apart from coffee.
Have many branches throughout Malaysia, Singapore, Hong Kong and many other countries.
WEAKNESS
It depends on the coffee and makes them difficult to diversify their product. Innovation is slow because it mostly depends on one product only.
OPPORTUNITIES
Able to expand its operation to global market to be introduced throughout ASEAN.
Able to re-brands and to compete with other company using the same material. THREATS
Product imitation is very high because they are mainly using coffee which is common.
There is a lot of competition both worldwide and locally.
Consequences from increasing the price of materials which they have used will be to make the price product is also increase.
Roti Bakar STRENGTH
Bread fried and can be served with simple Steamed Bun without requiring a lot of time in the presentation.
Availability of complete equipment to support the production process and the fried bread Steamed Bun.
In a given activity on farm capital of Rp. 2.000.000, - which is considered sufficient to meet the needs of production for 2 months on-farm activities. Selection of the appropriate supervisor with the production of bread during the
process of On Farm pretty good.
consumer.
Have their own thinking and tactics in marketing provincial election
Ability to control the amount of bread that must be produced in accordance with the conditions of daily ebb and flow of consumer purchasing power. Fried bread that is served has a taste that is delicious and savory, and the
resulting Steamed Bun has a sweet taste, due to the quality and cleanliness are always preferred.
The relation lot, to network marketing is easy, communication between buyers and consumers both in the campus.
WEAKNESS
Less marketing time in accordance with the conditions.
Not exactly the time under any circumstances, either of the schedules, process time, and time to market.
In short shelf life of the product well and the raw materials used. OPPORTUNITIES
Looking at the number of people who need food in the morning so that the bread can be fried and Steamed Bun alternative breakfast as a meal replacement.
The number of people interested in the savory and salty foods.
Because of this fried bread can be enjoyed by all ages from the young to the old, and then the target market includes all societies.
No competitor in the marketing of fried bread and bakpau.
The material used in the manufacture of fried bread and bakpau readily available.
THREATS
If the service and quality provided to consumers is less satisfactory, then the consumer will feel disappointed that this effort will be threatened decline in the purchasing power of consumers.
Factor of the price increase can also reduce income Easy to saturated consumer products
The lack of marketing in accordance with the conditions
Kopitan Classic STRENGTH
All the stores of Kopitan Classic were located at high traffic, high visibility locations in each market.
Set up 12 outlets located at Taiping in Perak, Penang, Bukit Mertajam, Butterworth and Sungai Patani in Kedah.
It is the largest regional food and beverages chain business brand in northern Malaysia.
Of the 12 outlets, 5 are regular chain shops while the other 7 are alliance shops that are open to others. As regards the business venue, 6 of them are located in shopping malls while the rest are conventional shops. The largest outlet has an area of 4000 sq ft and smaller ones are near 2000 sq ft.
WEAKNESS
Customer behaviour and expectation differs immensely among different cultures and boundaries.
Not much variation in products that are offered. Heat and Light is not bright enough
Insufficient of parking lot OPPORTUNITIES
Increase in the number of applications for franchising. This goodwill of the organization is a great asset in the long run.
Increase in demand for the service oriented sector with increase in population of the consuming class.
Its commitment to provide health conscious diet has attracted customers across the globe.
Innovation in the product range keeps on accumulating the customer base.
THREATS
Increasing costs
Tax charges
Who knows if the market of coffee will grow and stay in favour with customers, or whether another type of beverage or leisure activity will replace coffee in the future
2.4 Marketing strategies used by competitors to achieve their objectives Old Town White Coffee
Product
Core product: The core product of Old Town White coffee is the 3-in-1 instant coffee. These instant beverages are now export to more than 10 countries in the world. The Old Town White Coffee 3-in-1 Blend is a perfect blended white coffee which gives a smooth, aromatic and creamy taste. While the Nanyang 2-in-1 White Coffee “o”is a white coffee that has sugar, roasted with perfection. It has a stronger bittersweet taste compare with the others. The Simply Pure White Coffee is a 100% pure freeze dried coffee, it has a high acidity that is rich and satisfying to the taste of coffee. Now, Old Town White Coffee is also selling canned ready to drink beverage, and it could be found everywhere. Old Town’s product is very famous now and it could be found in the supermarket. Other than beverage, Old Town also offer some classic dishes to the customer, the famous of all is the nasi lemak and ipoh chicken hor fun. A variety of Malaysian foods are served too.
Facilitating product: Old Town has their own facilitating products too, they serve their guest with their own specially made plate and cups that has their own Old Town logo on it.
Supporting product: Besides white coffee, Old Town has also their special coffee to differentiate themselves from the other, such as Xi Mut milk tea, white milk tea, enriched chocolate, and of course! Don’t forget their crunchy baked buns.
Augmented Product: Old Town has a dark environment that gives customer a feeling of relax while having their food and beverage. It also provides free WIFI now so that customer can use their mobile phone or laptop to access the internet. Old Town is not only a restaurant, but it also gives people a place to relax and gathering.
Promotion
Advertising: Old Town often gives out brochure to people. Sometimes, the broucher can be found in the newspaper. They also did their advertising on television to attract
people to have a try on their famous white coffee.
Sales promotion: Old Town is also doing some promotion on their menu. The promotion menu is called “Supreme Set”, which starts on RM9.90 onwards, serves on Monday to Friday, 12.00-3.00PM, and each meal are served with a complimentary beverage and the portioning is bigger. This promotion menu is only having nasi lemak, prawn mee, rendang chicken rice, curry mee, asam laksa, and also Javanese mee. Old Town is also doing promotion on their breakfast, tea, and supper too. The promotion on breakfast is offering customers on toast, and noodles, with a complimentary drink. While the tea promotion is offering a variety of drink, which is hot or cold drinks and toast. Supper is all the same with all above.
Push Strategy: The producer, which is the factory of Old Town, produce the product (instant white coffee) and send it to the retailers and wholesaler, Old Town restaurant or supermarket, the restaurant are then selling it to the consumers.
Pull strategy: The consumers are already known a lot about Old Town white coffee and hence the consumers give the demand to the retailers and wholesalers. The retailers and wholesalers are then ordering the product from the head quarter of Old Town.
Buyer Readiness State: At first, the consumers don’t know anything about Old Town white coffee, so, the company has to do advertising for their products to promote it. When the consumers consume the products, they will know more about the product. Consumers are then going to like or dislike the product. If the consumer likes the product, the name of Old Town will spread their name even faster, and the consumers will prefer Old Town as their choice. At last, the consumers are willing to buy Old Town’s product.
Place
The Old Town White Coffee is usually located at a high traffic and visible locations. It is to attract more customers to have a break at Old Town White coffee. Their outlets are quite developed area with a university and banks. Besides that, sometimes bus station is placed nearby the outlets. Thus, it will become a place for a coffee shop. In Malaysia, their brand loyalty is very strong amongst the customers who always travel. Old Town White Coffee is popular to an extend is being sell in hypermarket,
Jusco, Giant, etc. Price
The definition of price is the amount of money paid for the goods or service; it is also the only mix element that can produce revenue to a company. Setting of the price should be very carefully because charging too much on the goods will chase away potential customers, but if the charging is too little, it will cut down the company’s revenue too.
The price set by Old Town is not so expensive and it is reasonable, that’s why people are able to dine in the outlets frequently. The promotion price and the original price makes people think it is worth to pay for the bill comparing with the original. Old Town use this kind of psychological way to “cheat” the consumers. This is the way that makes Old Town survive in the market, and maximize their profit. Old Town can charge the price is because people know that Old Town is a restaurant that gives a very fast service although it is not a high turnover restaurant. The dark and relaxing environment of Old Town also makes people feels that the restaurant is more “high class” than the others.
Roti Bakar Product
Product is everything (goods or services) offered to the public for attention, acquisition, or consumed to meet the needs and desires of the community. Who does not know the donuts? Food is rounded and there is usually a hole in the middle is quite known to many people, from children to the elderly. Bread is a food that is the current trend. Highly sought after as a food substitute for rice in Indonesia. With special tastes, many people began to make donuts as their favorite food and a fanatical customer donut stalls in Indonesia. And one of them is in Toast. In the meantime we've produced 30 variations of flavor and will continue to innovate with spectacular flavors.
Price is the amount of money that must be paid for consumers to obtain a product or service. Or can also be interpreted as the change to take advantage of the product or service required. Price is one of the marketing mix variable that is flexible, sometimes can be stabilized in some time with a certain price, but can also arrive - arrived rise or fall sharply cartoon-adapted conditions and market demand. Toast the price offered varies according to the kinds of donuts made sense, donuts available with prices ranging from RM 5 to RM 15
Place
Place a business activity to make the product or service offered by the consumer more easily affordable, and can be available at the right target market. Variable spot also covers distribution channels to reach consumers prevalent. As some companies to open branches in the area - the area to facilitate the customers.
Promotion
Promotion is an activity to introduce a product or service on the target market, to build customer perceptions about product or services offered. Promotional concepts that are commonly used among other advertising, public relation, sales promotion, personal selling, and direct marketing. In order to help improve and promote product sales Toast is aided by an ad campaign on the internet, especially on social networking campaign on Facebook and personal selling.
Kopitan Classic Product
Kopitan has serve children set, which is their competitors, don’t serve. Their children set are quite attractive with colorful plates and children’s favorite foods. Kopitan has a dark environment that gives customer a feeling of relax while having their food and beverage. It also provides free WIFI now so that customer can use their mobile phone or laptop to access the Internet. Kopitan is not only a restaurant, but it also gives people a place to relax and gathering.
Price is the amount of money expected, required, or given in payment for something. It also is interpreted as the change to take advantage of the product or service required. The price of food in kopitan classic is flexible, sometimes can be stabilized in some time with a certain price.
Place
The Kopitan is usually located at a high traffic and visible locations. It is to attract more customers to have a break at Kopitan. Their outlets are quite developed area with a university and banks. Thus, it will become a place for a coffee shop.
Promotion
The definition of promotion is to introduce a product or service on the target market, to build customer perceptions about product or services offered. The concept of promotion is used among other advertising, public relation, sales promotion, personal selling, and direct marketing. In order to help improve and promote product sales Toast is aided by an ad campaign on the Internet, especially on social networking campaign on Facebook and personal selling.
3.0 Based on the analysis, please write your suggestions on how you can improve the company current product and marketing strategies
Based on our suggestions, if we are looking to improve the Papparich’s business products, they should more focus on their existing customers and their needs. They should know more about them by talking to them and find out their view on what they are going to buy from PappaRich, what they most value about it, what PappaRich could do to make it more useful and valuable to them, and what would encourage them to buy more PappaRich products.
In additional to that, they should make changes based on feedback. Getting customer feedback will be able to help them to identify ways to improve what they are offering to their current customers. It may also allow them to attract new customers whose needs that they weren’t meet before. Try to ensure those changes that they make will increase their monthly sales and profitability enough to make the
time and money they will need to invest worthwhile. If possible, they should test out prototypes of improved products or services with a few existing customers. By doing this, they can get their feedback and avoid making unpopular changes that could able to harm their business.
An existing product may also be improved by the way it is presented to the public. Advertising is key in letting the existing customer and the prospective customer know about our product. Direct their advertising to their anticipated clientele. It may be a particular age group, people living in a particular area or even people with a certain problem or need. Place adverts in appropriate magazines or newspapers and they can place television advertisements at times when their target clientele is expected to be watching. This way, those who are likely to purchase products of PappaRich will receive the information about the products.
Nowadays, most of the peoples seek for delicious and special food. So if their company wants to be more outstanding, they need to investigate more new food to attract more customers. In this case, they can produce new food base on the consumers’ taste by doing survey. Their targeted customers of now are more on office workers and adults. They can extend their targeted customers to wider such as teenagers. After the new products launched, they can use promotion to attract them for trying their new products. In this case, their company can also build up a whole new image.
Furthermore, they also need to improve their restaurant cleanness. By improving this, their customers will feel more comfortable when they're enjoying their meals. If they can produce good foods and also nice environment, their restaurant will be always the first choice of consumers if compared with others. Besides that, the improvement of cleanness can help them to build up a good relationship with government based on one of the marketing environment, which is political legal environment.
The goal of segmenting consumers is to increase volume and revenue for PappaRich restaurants. By targeting and catering to the largest marketing segment they hope to attract more families into PappaRich and offer them an enjoyable experience. For example, if the new family friendly atmosphere is not attracting families, PappaRich may choose to ramp up there advertising for the kids play area and entertainment consoles at the tables. They will also shift their advertising over to cartoon or kid channels to attract the children’s attention. If their children like the environment, parents will then get attracted by it and bring their children there for dining naturally in order to satisfy their children.
PappaRich’s goal is not only to attract these customers, but to keep them coming back again and again by constantly improving their promotions and atmosphere. They developed out-of-home advertising for the international market features groups of customers enjoying the food and fun of PappaRich Not only this, PappaRich also continue providing new menu items to cater toward their customers with special diets or and life styles. If they have no idea on new menu, they will also redesign their menu in order to make their customers feel fresh anytime. In many cases PappaRich does sale directly to the customer with no intermediaries. This way is the common way a restaurant operates business. PappaRich has done something different over time though and began putting some of their entrees and appetizers in frozen form and selling them in grocery stores like a Meijer’s. This form of reaching the consumer started around the time the recession started because of the noticed trend that the consumers of the fine cuisine dining were no longer eating out at restaurants. This use of an intermediary is not common in the restaurant business but has been very useful, using the mindset that if the customer won’t come to us, we will come to them. This has allowed PappaRich’s meals and different offers to maintain in the minds of their loyal customers. Consumers can continue to eat the PappaRich’s foods they love to eat and company name and products can keep in their mind deeply. When they do decide to once again start eating out, they will have the knowledge that they like many of PappaRich’s products and will continue to eat their foods. PappaRich has penetrated this channel well and since they are the only company of their main competitors using this channel they have full control.
Other than that, within the past couple years PappaRich have remodeled most of their locations, changed their slogan, and has a variety of different menus. They also focus on moderately priced food in order to attract their target market customers. In order to continue to bring traffic into the restaurant, PappaRich has come up with incentive programs, coupons, meal deals and discounts for their customers. PappaRich has focused on keeping retaining their current “loyal” customers as well as bringing in new by offering a series of different promotions.
In conclusion, PappaRich had developed many methods, ways and ideas to fulfill their customers’ needs and wants. They also well did in segmenting their consumers so that they can satisfy their customers and make PappaRich reach a higher level at the same time. They implement their marketing segmentation successfully and they will also continue to satisfy the needs of their target market.
Reference
Azha Mohamad, 13 November 2012
http://mile.mmu.edu.my/orion/azha/2012/11/13/papparich-product-of-malaysia/
Official website, http://mile.mmu.edu.my/orion/baehuey/2013/11/13/introduction-and-history-of-old-town-white-coffee/,
http://www.kopitanclassic.com.my/eng/about_us.html
Product Summaries of Roti Bakar’s images, Available at:
https://www.google.com.my/search?
q=roti+bakar+kopitiam+menu&biw=1366&bih=667&tbm=isch&tbo=u&source=univ &sa=X&ei=omUWVNPJEZeQuASu44GgDQ&sqi=2&ved=0CBsQsAQ [Accessed on 15 Sept 2014]
Product Summaries of Old Town White Coffee’s images, Available at:
https://www.google.com.my/search?
q=old+town+white+coffee&biw=1366&bih=667&source=lnms&tbm=isch&sa=X&ei =wWcWVO7TE5KeugT7ioE4&ved=0CAcQ_AUoAg [Accessed on 15 Sept 2014] Product Summaries of Kopitan Classic White Coffee’s images, Available at:
http://www.kopitanclassic.com.my/eng/menu.php?menu_category_id=3 [Accessed on 15 Sept 2014]
