Facing with the changes of political, inexpensive, sociocultural and competitive factors, the KÄki no Hanashi Bakery is convinced that it could solve the risks with its sincere services and differentiated products.
As a new comer in the meals and beverage industry, the KÄki no Hanashi Bakery is daring to own new and various encounters and services for the consumers by producing preference documents member cards and special hands-on classes.
Besides, as a fresh business opened up in the new time, the KÄki no Hanashi Bakery is also put in effort to maintain closest romance with the targeted consumers through internet and company website.
With the sincerity and courageous introducing new and various cake enjoying experience, the KÄki no Hanashi Bakery is excited a dazzling future within a brief period of time and looking forward to 'share more content tales' with the consumers.
II. MISSION STATEMENT
With the quest of 'letting more and more cakes to share happy experiences', the KÄki no Hanashi (ã±ãƒ¼ããè±) Bakery wish to make cakes become a food which could represent the desires from the senders.
Besides, the perspective of the KÄki no Hanashi Bakery is to make cakes as a favorite food which might be consumed on our day to day life, rather than limited for special happenings.
As a social in charge business, the KÄki no Hanashi Bakery promised to keep on serving the more healthy but delightful and quality cakes for the consumers.
III. SITUATION Examination / SWOT ANALYSIS
a. INTERNAL ENVIRONMENT
i. ORGANISATION BACKGROUND
KÄki no Hanashi Bakery is a family owned bakery which is opened on time 2011. 'KÄki no Hanashi' are Japanese words with this is of 'Cakes' Tales'.
Cake is one kind of popular food that normally used in several occurrences, such as birthday get-togethers, wedding ceremonies, celebrations celebrations, and farewell people. Thus, the founders of KÄki no Hanashi Bakery think that every cake is 'revealing to a unique account about the event' and 'representing the best hopes from the sender'.
With this notion, the founders known as the bakery as KÄki no Hanashi to create more and more cakes which may 'tell more and more happy tales' and 'mailing more and more best desires' to the entire world.
The strengths of the KÄki no Hanashi Bakery will be the high quality and scrumptious products it served and the primary weakness of the KÄki no Hanashi Bakery is the founders who are insufficient experience in managing a café.
ii. PRODUCTS
With the objective of 'allowing more and more cakes to tell happy reports', the primary products will be bought from KÄki no Hanashi Bakery is several cakes which may appeal to consumers' appetites.
Besides, KÄki no Hanashi Bakery is also retailing several flower teas, which may properly match the sweetness of the cakes offered in the shop. Nowadays, due to the improvement in standard of living in Malaysia, consumers start thinking about selecting and consuming better foods. Thus, take a flower teas which may reduce the fat and sweetness from cakes is a good choice for the consumers.
The pursuing is one sample menu for KÄki no Hanashi Bakery:
iii. FINANCIAL AND NON-FINANCIAL RESULTS
Facing your competition from several famous bakery and café in Johor, the KÄki no Hanashi Bakery must ensure that it could at least achieve certain level of sales to break even. The following stand shows the financial results need to be achieved by KÄki no Hanashi Bakery atlanta divorce attorneys day:
Start-up Costs
Security Deposit
RM 5, 000
Construction
RM 30, 000
Start-up Inventory
RM 5, 000
Permits
RM 505 - Sign up fees (Suruhanjaya Syarikat Malaysia, 2008)
Total Start-up Costs
RM 40, 505
Monthly Expenses
Rent & Utilities
RM 7, 000 - Rentals RM4, 000 (thinkproperty. my, 2010)+ Electricity, Water, Telecommunication, and Internet Fees
Staffing
RM 5, 000
Inventory
RM 5, 000
Insurance
RM 5, 000 (appendix)
Rough Regular monthly Expenses
RM 22, 000
To chance even, the KÄki no Hanashi Bakery must sell at least 150 pieces of cake per day (let's assume that the cheapest cake, RM 5 per part, sold)
To achieve a much better future, the KÄki no Hanashi Bakery cannot is dependent only on reaching the break even on every day, but also must think about the goodwill for the business. To make it through and success on the market, the founders of KÄki no Hanashi Bakery expect to own at least 20% of the market share in Johor within the first operating season, and expecting to slowly increase the market talk about owning in the next five years.
iv. CHANNELS
In KÄki no Hanashi Bakery, the next two programs will be utilized for marketing the business enterprise to the market:
Traditional Channel
As a tiny and newly opened bakery, KÄki no Hanashi Bakery will target more on providing the walk-in customers who visit and take in in the café. To ensure all walk-in customers are served with the best cakes and teas, the company put the initiative, inviting the clients to apply for the free member card.
These member credit cards will record the preference of each customer, and become the vehicle system to see the waiters about the choice of the customers - after the customer enter into the café, the system establish at the admittance will detect the card's information and automatically transfer the preference information to the waiters on-duty, and so the waiters can provide suggestion to the clients according to the customers' preference and previous bills.
To appeal to the consumers to walk-in the café, the KÄki no Hanashi Bakery will put a special designed banner before the store - the banner will be made with the compare color - red and yellowish. Regarding to Mike Russell (ProQuest Information and Learning Company 2004), 'Feelings will determine your cravings' and the warm colors such as red and yellow will be the food colors which may increase desire for foods. Thus, the bakery use these contras color on the banner design.
Besides, the founders also understand that the importance of advertisements in getting consumers. Therefore, the KÄki no Hanashi Bakery will also spend a budget to send out the flyers at the local housing areas. The reason why for choosing flyers distribution is to build up direct face-to-face relationships with the consumers at the same time reduce the advertising campaign expenses in the last stage of the business life cycle. Inside the coming future, the bakery may also consider on other styles of ad such as advertising in food & drink magazine, television set, and newspapers.
Modern Channel
Understood of the increasing need for internet and the increasing effect power of social network, the KÄki no Hanashi Bakery will also unveiling a website to develop the business enterprise. Through the web site, the bakery encourage order and set up delivery service for the customers who spend minimum RM 70 per order.
Furthermore, the KÄki no Hanashi Bakery will also start accounts in the most popular online cultural network such as Facebook and Twitter. Through these social networks, the KÄki no Hanashi Bakery is anticipating the increasing sales through 'words of oral cavity' by the clients who are content with the products and services provided.
Moreover, E-mail marketing will also be considered by the KÄki no Hanashi Bakery to revise the special offers and newsletters to the customers. However, this marketing method is only going to applicable to those customers who documented as KÄki no Hanashi associates and provided the email address to the bakery.
b. Exterior ENVIRONMENT
i. MARKETS
Johor, one of the Malaysia status which connected with the neighbor country, Singapore, is always a tactical location that getting vacationers for looking of nice foods. Predicated on the matured economic foundation and skilled labor force in Johor, the high above average standard of living of Johoreans spurred the developing of the meals and beverage industry - Johoreans strive for earning at the same time enjoy spending for nice foods. (Johor Express Investment Centre 2010)
According to Nielsen (2009), 67% of Malaysians dine at restaurants once a week, and frequently visit restaurant during weekdays. Thus, it demonstrates Malaysia is a potential market for the meals and beverage industry.
Operating in a state with approximate 3, 385, 000 populace (Wikimedia 2010), the KÄki no Hanashi Bakery is confident with the business enterprise future.
ii. COMPETITIVE ENVIRONMENT
Due to the proper location of the status, restaurants and café are mushrooming in Johor. The primary rivals for the KÄki no Hanashi Bakery includes of:
Secret Formula Cakes & Café Sdn Bhd. Same as the KÄki no hanashi, Magic formula Recipe is portion fine quality cakes for the consumers and thus it is one of the immediate opponents for the KÄki no Hanashi Bakery. Facing such a competition with more than 100 cafes throughout the spot, the KÄki no Hanashi Bakery is currently in the training stage to study from the success story of the Secret Recipe.
Season Wedding cake House and Café. Besides of Hidden knowledge Recipe, Season is another direct rival for the KÄki no hanashi. Season is one of the famous breads, pastries, and cakes companies in the Johor market. Predicated on its reasonable costs and high quality products, Season is getting the consumers with average income. Like a newly started out bakery, the KÄki no Hanashi should produce the merchandise regarding to Season's technique to gain the market share within short time of your energy.
Lavender Bakery & Bistro. While using similar strategies as Season Wedding cake House and Café, Lavender is getting the average income consumers by giving good quality but reasonable price breads, pastries, and cakes. Thus, Lavender is another direct rival for the KÄki no Hanashi to check out with its costs strategies and product strategies.
Besides of the direct competitors mentioned above, the KÄki no Hanashi is also facing indirect competition from Station One Café, Coffee Bean and Tea Leaf, and other junk food restaurants such as McDonald, KFC, and PizzaHut.
iii. ECONOMIC ENVIRONMENT
To success in the market, the founders would like to highlight the following recent monetary changes that are directly influencing the business:
Price Increased for Essential Goods. It was a serious great shock to almost all of the Malaysian that the government was recently released that there will be a subsidy cut off for several essential goods such as sugars, petrol diesel and liquefied petroleum gas. Corresponding to Leading Minister (Traveling in Malaysia 2010), the slightly price increased in these necessary goods won't affect the life span of individuals, but from the KÄki no Hanashi Bakery's viewpoint, these slightly change will still bring quite big danger to the meals and beverage industry, because the price increased in sugar and flour will straight improve the costs of development, and the petrol price increased will also reduce the intention of individuals to eat outdoors.
Increased Average Salary for Malaysian. As guaranteed by Malaysian Federal government, Malaysians are waiting for an increased average salary in the approaching future, which may bring a good chance of the KÄki no Hanashi Bakery, because higher income may reduce the effects from the subsidy cut off for the necessary goods. According for an annual Employment Outlook and Salary Guide (The Sun 2010), you will see a 4% to 5% increase in the Malaysian workforce's average salary in year 2010, which is expected to bring a better standard of living for the benefited group.
Despite the efforts put by Malaysia in the recent years, Malaysia still unable to reach the ranks of the rich nations, and many fundamental sociable changes are still would have to be used by Malaysia (Correspondent 2009). Thus, the KÄki no Hanashi Bakery must consider about the income level of Malaysians while considering the charges strategies. Different from other foreigner traders, KÄki no Hanashi Bakery must provide good quality cakes with acceptable price to receive the customers' loyalty.
iv. DEMOGRAPHIC ENVIRONMENT
The following will be the demographic factors which the founders wish to highlight and concentrate on:
Population of Malaysian. According to the Department of Figures Malaysia (2010), the current Malaysia people is approximate 28. 25 million. This means that the potential future market is very big for the KÄki no Hanashi Bakery, if it's planning to operate more than one store over the region.
Population of Johorean. Matching to Wikimedia (2010), the populace of Johorean is approximate 3, 385, 000. This number shows that the populace of Johorean and also demonstrating the market opportunity for the KÄki no Hanashi Bakery.
Diabetics of Malaysia. Since the KÄki no Hanashi Bakery is mainly serving cakes in the market, the increasing diabetics in Malaysia might be considered a threat for the business. According to the International Diabetes Federation (Laura Hardwood 2010), Malaysia contributed 1. 33 million diabetics, which only 0. 6 million were diagnosed. Thus, to guarantee the products offered may think about this group of consumers, the bakery must put in attempts in its studies and developments to produce healthier and lower sugar products in the arriving future.
Consumer Price Index. According to the Department of Information Malaysia (2010), the buyer Price Index of Malaysia is increasing and there is a 2. 7% upsurge in the index for Food and Non-Alcoholic Drinks. Thus, it shows the nice future for the KÄki no Hanashi Bakery.
v. Sociable AND CULTURAL ENVIRONMENT
Malaysia is a country well-known using its combination of different ethnics and various culture. As being a country that motivates religion freedom, almost all of the Malaysians are strongly respecting each other's culture and religion. Thus, to success in the market, the founders of KÄki no Hanashi Bakery must clear about the culture of different ethnics.
Since Islamic is the major religion in Malaysia, the KÄki no Hanashi Bakery must pay plenty of attention on guaranteeing the products offered in the KÄki no Hanashi Bakery match with the religion requirements of Muslims. To achieve this, the KÄki no Hanashi Bakery may need to apply the Halal Food Certification from JAKIM. Using the qualification, the KÄki no Hanashi Bakery will have better advantages to compete with those competitors with no certification.
Besides, the changing life styles amidst Malaysians, such as preferences for leisure, convenience and eating dinner out (Lee Kum Chee 2008), is another chance of the KÄki no Hanashi Bakery.
As an important part of Malaysian culture and cultural life, eating is extremely important for the Malaysians (Agriculture and Agri-Food Canada 2010), thus the KÄki no Hanashi Bakery is expected to be success in the arriving future if it could catch the needs and desires of the market.
vi. POLITICAL AND LEGAL ENVIRONMENT
The pursuing are the main legal factors need to be considered by the KÄki no Hanashi Bakery:
Import License for importing agricultural products from abroad. The KÄki no Hanashi Bakery needs to consider when there is a need to transfer any agricultural products as the materials for creation. An import permit will be needed from the Team of Vet Services Malaysia, if the KÄki no Hanashi Bakery decides to buy in certain materials from abroad.
Halal certification. The KÄki no Hanashi Bakery must also recognize that the major populace in Malaysia is Malay and therefore to catch the attention of this band of consumers, the KÄki no Hanashi Bakery must receive the Halal qualification from JAKIM. As the Halal authorized business, the KÄki no Hanashi Bakery must follow certain requirements in its producing and operating process.
Safety and Hygiene rules and regulations. Although there is suprisingly low hygiene awareness between Malaysians, the KÄki no Hanashi Bakery is required to firmly follow the protection and hygiene rules and regulations as the duty to the city.
vii. TECHNOLOGICAL ENVIRONMENT
As a recently started out bakery, the KÄki no Hanashi Bakery will try best to use the technology that is available in Malaysia. Besides of the major technology such as computer system, custom-made accounting system, and cashier system, the KÄki no Hanashi Bakery is also have to buy in a number of production equipment to ensure the development may be continue.
The pursuing are the primary suppliers that the bakery must contact with, to obtain the supply of several production equipments:
LMC Superstar Sdn Bhd (Kuala Lumpur). LMC Celebrity is a drink equipment supplier for restaurant, café, food courtroom, and hotel. The KÄki no Hanashi Bakery will contact LMC Superstar to obtain the supply of coffee maker, beans, and tea leaf.
Ikhua Hardware & Equipment Sdn. Bhd. Ikhua is a kitchen equipment company, which providing several bakery equipment, chilling & snow making machine, drinking water boiler and dispenser.
Besides of the gadgets, the following is the key materials distributor will be contact by the KÄki no Hanashi Bakery:
Harvest Bakery Substances Sdn Bhd (Selangor). Harvest is a food decorative items dealer for bakery industry. The KÄki no Hanashi Bakery will contact Harvest to obtain the supply of several attractive items, such as candle, sugars strand, fruits jam, and nuts.
IV. MARKETIG OBJECTIVES
As a recently exposed bakery, the marketing objectives of KÄki no Hanashi Bakery is to get 20% of market show in Johor within first operating calendar year and slowly increasing its market share in the approaching five years.
To achieve these aims, the KÄki no Hanashi Bakery is striving to attract consumers to try the merchandise and build-up customers' loyalty by causing the clients feel respected and different on the market.
V. MARKETING STRATEGIES
a. Focus on MARKETS
As the culture of Asians, Malaysians used to dine out as well as relatives and buddies, thus the main target markets concentrated by the KÄki no Hanashi Bakery is the group customers including family customers or friends gathering customers. Based on this market focus on, the KÄki no Hanashi Bakery must consider how to design its store as a suitable and comfortable place for the family and friends to spend a whole afternoon or night time in the store.
Besides, the KÄki no Hanashi Bakery will also target on portion the teenagers who like hanging out by having group studying time using their classmates. To attract this group of consumers, the KÄki no Hanashi Bakery considers to start student offer to ensure these teens could not find the merchandise too expensive.
Furthermore, the KÄki no Hanashi Bakery will also aim for on portion the elder group who have retired and would like to find a location for hanging out. Since this band of customers may have lots of leisure time and money, the merchandise price will not be an issue however the materials used for creation is a major issue have to be considered because this group of consumers might pay more attention on the meals health issues.
b. PRODUCT STRATEGIES
Based on the objective of the company, the KÄki no Hanashi Bakery's product strategy is to provide best value and unique product for the consumers. Thus, the company is following a concentration but differentiate product strategies in its procedure.
Since the primary targeted market for the KÄki no Hanashi Bakery are family consumers, friends gathering consumers, teenagers, and elder group, the KÄki no Hanashi Bakery needs to have three different types of product strategies as the following:
Family consumers and friend gathering consumers. For these type of group consumers, the KÄki no Hanashi Bakery will encourage the consumers to invest on family package deal - a complete wedding cake with normal price, but free with two pots of blossom teas.
Teenage consumers. For this band of consumers, the KÄki no Hanashi Bakery will introduce student package which serves the products with cheap for these consumers. With this lower price offering, the KÄki no Hanashi Bakery is planning on a higher loyalty and better words of mouth from these consumers.
Elder Groups. Because of this group of consumers, the KÄki no Hanashi Bakery will expose low sugars cakes and healthy rose teas to encourage the consumers to pay more attention on the healthy issues.
c. Prices STRATEGIES
As a new business on the market, the KÄki no Hanashi Bakery will utilize the competition-based costing. To gain the marketplace show in the short period of energy, the KÄki no Hanashi Bakery will analyse the competition' costs strategies and placed the products' price based on the opponents' price.
According to the examination have by the KÄki no Hanashi Bakery, the competitors such as Magic formula Recipe and BEANS & Tea Leaf are setting up the cakes price from RM 5 to RM 7. 90 per part, and RM70 to RM100 per full wedding cake. Whereas the competitors such as Season and Lavender are establishing the purchase price from RM4 to RM 6 per part, and RM 30 to RM 70 per full wedding cake.
Thus, to success on the market, the KÄki no Hanashi Bakery will set its cake price from RM 5. 00 to RM 7. 00 per piece, and RM 70 to RM 90 per full cake.
d. Advertising STRATEGIES
The following are the advertising strategies will be accompanied by the KÄki no Hanashi Bakery:
Launch user-friendly web interface. Today individuals are searching information about the companies from internet after they heard the air advertisement (RadioCentre Ltd 2009). Thus, a success business should maintain a user-friendly web user interface that provide valuable information for the consumers and preferred if it could provide multi-language that satisfies the needs of global consumers.
Based on research (Paynter and Lim 2001), payment option is one of the reason why that reducing the purchase bonuses. A lot of the Asians are not so fascination with e-shopping because feel insecurity to make the payment through bank card. Thus, to be able to entice the consumers from Asian country, today businesses should provide high security system for safeguarding customers' details, or agree to another form of repayment, such as cash transfer through standard bank after purchase.
Improve degree of trust between potential buyers and sellers. To make sure consumers' go back, today companies must enhance the relationship with the consumers and build-up trust between potential buyers and vendors. Provide accurate and open up information is one fashion to build trust with consumers. Besides, companies should also provide just-in-time services through utilise latest technology to get trust from consumers.
Promoting the business with Associates' Card. To ensure the consumers may feel respected by the business, the KÄki no Hanashi Bakery will introduce a free member card to all or any customers, the member card is employed to track record the customers' information and so the customers' choice may be saved and reflected to the waiters once the customers type in the entrance and pass by the info scanning machine which located at the access area.
e. Syndication STRATEGIES
The following will be the distribution strategies will be accompanied by the KÄki no Hanashi Bakery:
Walk in customers. Walk in customers will be offered by the waiters. To reduce the impatient of ready line, the bakery guarantee to serve each customer within quarter-hour after the customers found a couch in the bakery.
Online order and delivery. Consumers may check the menu of the products from the business website and place online order by credit card. However, only the delivery for least expenses RM 70 will be cost-free. The delivery will be completed by the waiters of the store and special packaging will be the strength for this service.
Phone order and delivery. Consumers may contact to place order. However, only the delivery for minimum amount expenditures RM 70 will be free of charge. The delivery will be taken care of by the waiters of the store and special packaging would be the strength because of this service.
Special deal customers. The special deal service is the special services that we provides for pre-booking customers. In certain events, the customers may think about mailing their best desires to their much loved using their personal made cakes, which deal is a 'hands-on class' which allow the customers to be engaged in the wedding cake making process. However, the price for this service will be varied depends on certain requirements of the clients.
VI. RECOMMENDATIONS
With the Talents of strong and clear mission and perspective, and the weaknesses of insufficient experience founders, the KÄki no Hanashi Bakery is facing several opportunities and dangers within the marketplace.
The opportunities faced by the KÄki no Hanashi Bakery includes of the changing lifestyle of Malaysians, increased average salary of Malaysians and increased cost index for food and non-alcoholic beverage industry. The KÄki no Hanashi Bakery should grasp this opportunity to get more consumers to try the merchandise served by the business. To grasp this opportunity, the KÄki no Hanashi Bakery must get the appetites of Muslim by producing Halal products, appealing to teenagers by provide students offer, and offering elders by presenting low glucose cakes. Besides, the starting of website, involve itself in Facebook and Twitter are also the nice practice which might bring in more and more customers.
The threats encountered by the KÄki no Hanashi Bakery includes of the increasing price of sweets and flour, reducing subsidy for necessary goods, and high competition from other bakery and café. To make it through in the hazards, the KÄki no Hanashi Bakery is suggested to avoid immediate compete with the prevailing competitor by making its strategies matching to focus and differentiate strategy. Rather than providing products to everyone in the market, the KÄki no Hanashi Bakery should comprehend its consumers, focus on niches markets and provide the markets with differentiated products and services - the special bundle with hands-on school and the desire records member card are the sample actions considered by the business to differentiate itself from the competitors.
With the special and differentiate products and services provided, the KÄki no Hanashi Bakery is getting excited about serve the market with a new and different cakes enjoying experience, which might bring higher income and better market show for the KÄki no Hanashi Bakery.
