CONSUMER BEHAVIOR AND MARKET INTELLIGENCE
(GSRM7344)
WORK-BASED PROJECT
GARDENIA BAKERIES (KL) SDN BHD (GBKL)
COURSE LEADER: DR. KUMARAN A/L KANAPATHIPILLAI
PREPARED BY:
NAME
ID
1)
AHMAD DAMIRI BIN MUSTAFA
MC210413495
2)
AHMAD ABDULLAH BIN MONSHI
MC210614136
3)
ALLASHINY A/P GOPAL KERISNAN
MC210619324
4)
TAN KERR YEE
MC210614122
5)
RAJALAKSHMI
MC210614128
SECTION:
MC-024
2
Contents
1.0.
2.0.
3.0.
4.0.
5.0.
6.0.
7.0.
8.0.
9.0.
Executive Summary..………………………………………………………………………3
1.1. Company Background………………………………………………………………...3
1.2. Brand History…………………………………………………………………………...4
1.3. Vision and Mission……………………………………………………………………..4
Situations Analysis
2.1.
The Marketing Mix 4P Strategy…………………………………………………..5
2.1.1. Product……………………………………………………………………..5
2.1.2. Price………………………………………………………………………...5
2.1.3. Place………………………………………………………………………..5
2.1.4. Promotion…………………………………………………………………..5
2.2. SWOT Analysis
2.2.1. Strength…………………………………………………………………….6
2.2.2. Weakness…………………………………………………………………..6
2.2.3. Opportunity…………………………………………………………………6
2.2.4. Threat……………………………………………………………………….7
External analysis
3.1.
The Microenvironment
3.1.1. Political Factor…………………………………………………………….7
3.1.2. Economical Factor………………………………………………………..8
3.1.3. Social Factor………………………………………………………………8
3.1.4. Technological Factor……………………………………………………..8
3.2.
Competitive Environment
3.2.1. Porter’s Five Force Model………………………………………………...8
3.2.2. Competitor Analysis Table………………………………………………10
3.2.3. Market Size………………………………………………………………..12
3.2.4. Distribution Channel………………………………………………………13
3.3.
Internal Analysis
3.3.1. Corporate Social Responsibility (CSR)………………………………13
3.3.2. Business Growth ………………………………………………………14
Target market
4.1.
Demographic…………………………………………………………………….14
4.2.
Personal………………………………………………………………………….15
4.3.
Social……………………………………………………………………………..15
4.4.
Cultural……………………………………………………………………………15
4.5.
Psychological…………………………………………………………………….16
Marketing objective……………………………………………………………………....16
Strateg
6.1.
Market Penetration Strategy…………………………………………………...16
6.2.
Product Development Strategy………………………………………………..18
6.3.
Market Development Strategy………………………………………………....20
6.4.
Diversification Strategy………………………………………………………….22
Tactic
7.1.
What are the Marketing Tactics ?
7.1.1. Internet Marketing………………………………………………………26
7.1.2. Researched & Healthy Food Concept………………………………..27
7.1.3. Awareness Through Market Penetration…………………………..…27
Tracking and evaluation
8.1.
Performance Monitoring………………………………………………………..28
8.2.
Evaluation………………………………………………………………………..29
References………………………………………………………………………………..30
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1.0 Executive Summary
Gardenia bread is a well-known brand in the bread market and a top-bread producer. Gardenia
offers a wide range of breads, including Butterscotch, Breakthru, Delicia, Twiggies, and many
others. Every Gardenia product has its own distinct features to meet varied levels of consumer
pleasure, with the millennial generation as the target market. For example, Gardenia Breakthru
breads are not only bread, but also have the appearance of being a nutritious food. It has 38%
fewer carbohydrates, 7.3x more dietary fibre, 15% fewer calories, 59 percent more proteins,
a low glycaemic index (42), a low glycaemic load (6.5), prebiotic properties, low fat, no transfat, and no added sugar.
Specific focus given to this millennial group as the company targeting to increase the market
share among this group. Based on Marketingmagazine.com, 30 percent of Malaysian
population is belonging to the millennial group. According to theSundaily.com, millennials are
people who were born between 1981 and 1994. With the focus on producing a product which
attractive for this group might impact positively on the Gardenia business performance.
In conjunction with market research, a concise study of the marketing environment identifies
the strengths, weaknesses, opportunities, and threats in order to define and construct
marketing strategies focusing on millennial group with a high amplitude of efficacy. We believe
that by combining the effectiveness of these tactics, we will be able to meet our marketing
objectives.
1.1.
Company Background
QAF Limited was founded as a sole proprietorship in the 1950s under the name Ben &
Company and incorporated as a private limited company in 1958. The company is in the food
and distribution business, and in the 1970s, it was one of Singapore's and Malaysia's top food
importers and distributors (QAF Limited 2013). Gardenia Bakeries (KL) Sdn. Bhd. (GBKL) is
a wholly owned subsidiary of a publicly traded food company. QAF LTD operates Gardenia
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Singapore, with Gardenia Philippines and a Gardenia Bakery in China on the way. BERNAS
owns GBKL, which is a BERNAS subsidiary.
1.2.
Brand History
In 1969, International Executive Service Corps sent Horatio Sye Slocumm from America to
Sabah to open a bakery. With him, he brought 35 years of baking experience from America's
largest bakery chains. The first time Gardenia Bakeries (KL) Sdn. Bhd. launched bread was
in 1986. Gardenia had raised to the top of the bread industry in four years. The Gardenia
products line has grown and evolved with each step, becoming more and better. Gardenia
bakes a variety of baked goods to meet consumer wants, using its brand strength.
1.3.
Vision and Mission
VISION
To become the largest manufacturer in the food and baking sector, providing high quality
products that consumers enjoy, appreciate and love.
MISSION
To serve consumers with the best quality assortment of great-tasting bakery and related
food and beverage products, with world-class manufacturing facilities and an efficient
nationwide distribution network, thereby providing a fair return on shareholder investments.
2.0 Situation Analysis
Gardenia is a prominent leading bakery brand in Malaysia that caters to mass audience. It has
won numerous prestigious awards and the marketing mix that this brand adopted includes
various aspect which defines the brand itself.
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2.1.
The Marketing Mix 4P Strategy
2.1.1. Product
Gardenia started with just one bread in its line. Within a couple of years, the brand became
the market leader and the range of product they offer started to grew. To accommodate their
product to various market, they have developed different range of breads that offers to different
social demands, such as wholegrain bread, cereal bread, sandwich loafs etc. To attract the
younger audience, they also extend their product range to cake-like bread like Twiggies, Fluffy
Buns, as well as soft rolls.
2.1.2. Price
Gardenia adopted competition-based pricing policy when they are setting the price. In this
policy, they benchmark the pricing based on what their competitors are offering from cost,
marketing and other offerings. To win, they sell their products lower that their competitors.
2.1.3. Place
Gardenia is a Malaysian based company and its product are available in every mini markets,
super markets, standalone markets, and even the hypermarkets that sell all the imported
products. Their products are made fresh and ensure the logistic of distribution is managed
timely to provide fresh product to their consumers. The accessibility to purchase a Gardenia
product is very convenient.
2.1.4. Promotion
Gardenia is one of the high advertisement spender in local market. Their ads can be seen
across most advertising mediums such as television, radio, and print media. On radio, they
developed a jingle and this has been played throughout the day to create top brand reminder.
Gardenia also ventured into the digital world where their ads can be seen on YouTube,
Facebook, and many more. They also engaged online content creators to creatively promote
way of consuming the products and this generated hype and interested among the millennials.
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2.2.
The SWOT Analysis
2.2.1. Strength
Gardenia has been a brand that the market is familiar with for a very long time. It has a solid
brand foundation among the bakery segment, which also have been attested by various
certifications such as ISO, Hazard Analysis Critical Control Point (HACCP), Highly
Commended Award by Malaysian Institute of Food Technologies (MIFT) and many more.
Apart from that, Gardenia also has made a name for itself by winning many awards such as
winning Superbrand Award for three consecutive years and Putra Brand Awards.
Gardenia’s strategy to keep up with consumer demand its focus in product innovation and
development. One of the success factor that its consistency in branding and packaging,
consumers are familiar with the product without much ATL advertisements. The consistency
and wide range of distribution network makes the product very accessible to each consumer
group. They are being very transparent with the information of ingredient used, production
batch and expiry guideline that built consumer confidence.
2.2.2. Weakness
One of the weakness for bakery product, especially its daily consumable, is that its price
elasticity is very low. Movement of price revisions are easily captured by consumers. Price
increase in raw material and logistic constantly impact the cost of product and affect
company’s margin. But due to the product nature itself, it’s difficult for Gardenia to change the
price too drastically to avoid market drop off.
Also, due to the products that the brand carries are mainly focusing on just bakery, it’s is
difficult for the company to diversify their business to other new products, unless it’s a
complimentary or substitute products.
2.2.3. Opportunity
Garden is staying focus to maintain as the lead industry player. To ensure its position, the
brand is focusing in these three pillars (i) innovative in product development that stays on the
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rail (ii) strictly adhering to ensure fresh and quality product and meets the consumer demand
(iii) strong and reliable distribution channels to provide easy accessibility to its consumers. It’s
a commonly known as daily consumable product, hence the price needed to be affordable by
mass audience. At this point of time, the available high end bakery product does not come in
as chain product with mass distribution. There is an opportunity for Gardenia to explore high
end range product to tackle a different group of consumers who have higher household income
and niche.
2.2.4. Threat
Gardenia’s products are facing market saturation as it’s widely distributed. Many key retailers
are starting to offer more varieties of bakery product to cater to different market group. This
can be a threat as there is potential of cannibalizing the product. The penetration of its main
competitor, Massimo, and follow closely on its style and packaging serves as a strong
camouflage to the shoppers.
3.0.
External Analysis
3.1.
The Microenvironment
3.1.1. Political Factor
All industries are one way or another influenced by the political processes and legislation.
They are impacted by government’s stability, taxation policy, and some government’s
regulation to a certain extent. The key ingredients to making bread which are flour, salt and
sugar, fall under the controlled price items. Over the years, the prices of these core products
have increased. It directly affected the margin and forced Gardenia to increase its product
pricing to sustain.
There was a political controversy on Gardenia has impacted the demand for its product.
Gardenia has done an excellent job on managing the PR crisis by setting up a weblog to
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provide transparent information and periodic updates on that issue to rebuild consumers’
confidence.
3.1.2. Economical Factor
A country’s economy is a key drive to have an impact many businesses from all industry and
all aspect. They can impact from raw material suppliers to finished products. However, bakery
falls under the essential needs and due its solid brand foundation and market demand,
Gardenia have a four percent growth during global economic crisis.
3.1.3. Social Factor
Cultural behavior has a direct impact on values, belief and daily lifestyle of a society. For a
long time, Malaysia is at health risk as many of the people are facing concerns like heart
disease, obesity, and diabetes forces Malaysians to relook into healthier lifestyle and nutritious
food intake. Gardenia took the opportunity to form a wellness group to provide counselling to
consumers on healthy diets. Their healthy product range like wholemeal, multi-grain becomes
more well received.
3.1.4. Technologies Factor
Gardenia is one of the leading brand that uses top notch technology that is able to produce
6,000 loafs an hour and approximately 15,000 loafs a day. The machine that they use does
not require human manual handling and all is fully functioned by the machine. It keeps the
current Good Manufacturing Practices (eGMP) and follow the globally accepted food quality
and safety standards through the International Organization for Standardization (ISO) and as
well as Hazard Analysis Critical Point (HACCP).
3.2.
Competitive Environment
3.2.1. Porter's five-Forces Model
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3.2.1.1.
Threats of new entrance
When a brand new competition or a new brand from an established competitor
decides to enter an industry, new entrants pose a threat. Gardenia's profitability may
suffer as a result of this, and as a result consumer loyalty within the same business
may suffer. Gardenia's product selection is improving due to the highly competitive
market, and the company currently manufactures a variety of baked goods to meet
consumer needs. Therefore, the threat of new entrants for Gardenia will be low due
to Gardenia's high brand name awareness and secure position in the bread
manufacturing business
3.2.1.2.
Degree of Rivalry
Industry is essential to measure or determine the intensity of competition between
companies in the same field or industry such as Massimo, Rainbows, Mighty White
and Fresco Grano. Gardenia's competes fiercely in a crowded market. Low-cost
confectionery makers, which are small family-run enterprises, compete by creating
bread for sale in the neighborhood, which is referred to as low-cost production for
the locally market. Besides, a few of major competitors, like Breadstory, Komugi,
and Lavender Bakery also offer reasonably priced breads.
3.2.1.3.
Threats of Substitute
Within the sector, there is a considerable risk of substitutes for Gardenia products.
Customers usually prefer bread with appealing toppings and decorations. For
instance, those bakery shops typically provide filling bread and appealing bread
that fulfil client expectations. Other industries, such as fast food, provide breakfast
options that include bread. It poses a danger to Gardenia.
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3.2.1.4.
Bargaining Power of Buyers
Gardenia's bargaining power is limited because its primary customers are
hypermarkets and merchants. This is also owing to Gardenia's direct product
distribution to distributors, who subsequently sell them to end customers. As a
result, given the abundance of existing substitute items on the market, consumer
loyalty is essential in determining buyers' negotiating power. Gardenia, in
comparison to its competitors, offers a variety of freshly baked products such
as Delicia, Twiggies, Squiggles, and many other unique bread items to fulfil its
customers' wants and needs.
3.2.1.5.
Bargaining Power of Suppliers
Gardenia's suppliers have a lot of negotiating leverage, especially when it comes
to monopoly items. Flour, for example, is the primary basic material used to make
bread. There are just a handful alternatives to their goods.
3.2.2. Competitor Analysis Table
According to a survey that conducted from Hasri and Azmi (2016)19, in Skudai with the
five main brands of breads in Malaysia included Gardenia, Daily’s, Bonanza, Delicia
and Massimo brand.
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Types of brand
Percentage (%)
Daily’s
12.8
Gardenia
68.7
Bonanza
5.6
Delicia
1.7
Massimo
8.4
Others
2.8
(Hasri & Azmi, 2016)
Based on table above, almost 69% of respondents preferred Gardenia than other
brand, this it makes the firmest brand from consumer’s perspective. Besides, Gardenia
has become the bread leader not only as a result of its high-quality product, but also
as a result of the development of the most up-to-date and contemporary manufacturing
equipment, which is continually producing better bread formulations.
3.2.3. Market Size
3.2.3.1.
Total Gardenia Market Size in Worldwide
Gardenia experiences an abnormal high growth of 20-35% in sales last year 2020.
This is because the consumers were on panic purchasing and trying to stocking up
food during the COVID-19 lockdown period. In Philippines, The Gardenia Bakeries
president reported that a 20-35% increase in sales in the second quarter of this
year, up from a 5% increase in the first. Gardenia has responded to the high
demand by making all of their factories open 24 hours a day, seven days a week,
from earlier on 2020 and producing at 90-95 percent of their capacity.
3.2.3.2.
Total Market Size of Manufactured bread, cakes & other
bakery product in Malaysia
Statistic below showed the value of the sales for manufactured bread, cakes and
other bakery products in Malaysia (2012-2019)., (Statista,2021)20.
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From this statistic, we can noticed that the revenue for manufacturing bread
industry is gradually increasing as the demand for bread and bakery products are
rising. In 2019, the sales revenue increased 0.42b from 2.61b to 3.03b.
3.2.3.3.
Total market size of Gardenia Bakeries (KL)
Gardenia Bakeries (KL) Sdn Bhd, a major bread manufacturer, has announced that
its five 24-hour-a-day operations in Malaysia are currently producing 2.2 million
loaves per day. This literally means there will be an increase in production by 5%
compared to before the movement control order (MCO) was enforced. Since the
demand for white bread is increasing, Gardenia assured that they will produce and
deliver their products seven days a week even during MCO period.
However, there have been consistent higher pricing pressures for the last two
years, particularly for flour and fuel, which we have attempted to absorb at first.
This has resulted in a significant increase in operating costs and impacted on the
reassessment of product pricing. Many Malaysian are aware that they solely rely
on Gardenia for their daily bread since they are the current leading market in bread
industries. Therefore, they have sought to keep the price increase as low as
possible to reduce the impact of growing inflationary prices on our Malaysian
citizen.
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3.2.4. Distribution Channel
3.2.4.1.
Wholesaler and retailers
Upstream partners are companies that provide raw materials, components, parts,
information, funds and experience to help develop a product. Wholesalers and
retailers also make up the downstream marketing channels or distribution channel
partners. Gardenia Bakeries collaborates deeply with upstream partners like flour
suppliers to minimize shortages of raw materials, that will give a significant impact
on their daily operations. Normally, a fair situation must be developed or created in
order to sustain a good relationship.
Gardenia, for instance, will always pay its suppliers on schedule. Gardenia also
creates marketing channels, such as megastores, supermarkets, and grocery
stores, to serve as mediators in the distribution of their breads to final consumers.
To recapitulate, no business can deliver value to its customers on its own. Instead,
they must work with other companies as part of a larger value delivery network. Of
course, by doing so, they will be able to achieve their goal by increasing the
consumer value.
3.2.4.2.
Online Platform
They also created official social media accounts for instance Facebook and
Instagram, which are easily accessible for their customers, sponsors, suppliers,
and partners to stay connected with them in real time and provide an open
feedback for enhancing the service to the public and improvise what they have
suggested like adding new product flavours or producing new type of bread..
3.3.
Internal analysis
3.3.1. Corporate Social Responsibility (CSR)
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Gardenia has been involved in a number of humanitarian endeavours. Gardenia serves
complimentary fresh breads to almost 61 charitable organisations each day, including
old folk’s homes, orphanages, and disability facilities, eight of which have been on the
Gardenia distribution list since 1991. Besides, they also play they role as a responsible
human being by distributing free Twiggies via Twiggies Wagon to school children during
any events.
3.3.2. Business Growth
Gardenia has also garnered numerous accolades, most recently receiving the Putra
Brand Awards from the Association of Accredited Advertising Agents. Malaysia’s top
bakery brand honoured with the award because of it’s a continuous product innovation,
fully commitment to build branding via communication and a strong sense of corporate
social responsibility (CSR).
4.0.
Target Market
Gardenia Bakeries Sdn. Bhd. products are basically suitable for all ages, affordable to
all level of income and available to all customer both in rural and urban area. Their marketing
strategies also apply both business to business (B2B) and business to customer (B2C) market.
In this marketing plan, we will focus on the millennial generation as our target market.
4.1.
Demographic
The generation-Y or the millennial are those who were born in the period between
1980 and 200021, which mean there are between 21 to 40 years old by now. In Malaysia,
35.4% of total population are the millennials 22. These generation’s childhood was at the end
of the industrial revolution era and beginning of the technology revolution era where at this
time people start talking about internet, also the changes of world events, social and economic
somehow have developed and accustomed their culture, attitudes and beliefs that affected
their expectation and behavior23.
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4.2.
Personal
Most of the millennials reached adulthood and matured enough to make decision for
themselves. Most of them also already have a career and family while some of the young
millennial are starting to get a job. This means, the millennials are the largest buying power
as the have income and tend to purchase on what they believed is beneficial either to
themselves or their family.
4.3.
Social
The widened coverage of news and information globally with 74% of 28.7 million of
internet users in Malaysia are the millennial24, the demand of quality product increased as the
increase number of educated people. The millennials have been more concern, high social
consciousness and aware about what they consume and what they paid for as they tend to
have a better and good quality of life.
4.4.
Cultural
As 61.3% of Malaysians are muslims25, they tend to have strong belief on consuming
halal food which is obligatory to them. Gardenia Bakeries Sdn. Bhd. have Halal Certification
by Islamic Development Department (JAKIM)26. This means all the products are proven halal
product. Gardenia also have its own Halal Committee to ensure the requirement and
regulation are in order. In addition, they also appointed an Independent Syariah Advisor to
monitor the Halal System developed are running and controlled according to the certification
requirement.
4.5.
Psychological
Psychologically, the factor that contribute to freedom of quality of life is our health.
That’s why the millennial influenced by the idea of consuming a healthy and nutritious food
such as non-oil food, low calories meal, non-sugar drink27 product are the trend that the
millennial are tend to consume rather than the existing product. Also, the perception of some
Malaysians that eating rice will cause of fattiness28 because of the high carbohydrates level in
white rice, causing the trend of taking bread as alternatives and substitute of white rice.
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5.0.
Marketing Objective
5.1.
Digital Marketing Platform
Using the digital marketing platform such as Facebook, YouTube, Instagram, twitter in order
to create awareness about the brand and the product to the millennial as well as using celebrity
influence as an ambassador in promoting the product brand.
5.2.
Increase revenue by 25% in Y2
Through the transformation on packaging strategies, with the vast digital marketing platform
awareness, also health consciousness through the new sugar free product and diversified
product which is pasta, we expect the increase in revenue about 25% in Y2.
6.0.
Strategy
The Ansoff Matrix has been utilized to plan for Gardenia’s growth strategies. The strategies
are planned to evaluate and focus the millennial group as the targeted market segment. With
a modern and busy lifestyle among millennial group, a convenience and easy to purchase and
consume product will be one of the key focus for Gardenia to tackle this group’s demand. For
this reason, Gardenia intends to provide a convenient and healthy meal for these busy groups.
No matter how hectic life is, a desire for good meals is a need. While busy with life, Gardenia
is always ready to serve a quick and healthy meal.
6.1.
Market Penetration Strategy
Currently, Gardenia may already have a strong market penetration strategy with their existing
products in the market. As the target market is for millennial group, hence Gardenia should
explore what is currently popular among them. One great impression for Gardenia is to
enhance the idea of multi usage of Gardenia bread and transforming it into a convenience and
delicious food. Gardenia needs to know if the market or this market segment's behavior has
altered. If this is the case, Gardenia will need to adjust its strategy to match the market. For
example, during this Covid-19 pandemic, many people choose home cooking, learning how
to cook and looking for more convenience and easy to prepare and purchase.
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Gardenia's proposition and messaging must be aligned with these social shifts in this scenario.
Gardenia might start by running an online or telephonic customer survey to see how well
customers understand how to consume their Gardenia bread. Do they realize that Gardenia
bread may be transformed into a variety of delightful meals?
Gardenia able to gain a better understanding of its market study on the products by conducting
this poll, as well as share knowledge with them on how to use Gardenia bread into excellent
food. Gardenia might also print the ingredient and recipe on the cover of their bread packaging
to ensure that people follow the Gardenia survey. Furthermore, Gardenia should print different
ingredients and recipes on a weekly basis to keep it interesting and attractive which directly
make more customers to buy their products every day. Gardenia may educate their customers
on the several ways to use Gardenia bread as a key ingredient in great breakfast, lunch, and
dinner dishes. An eye-catching sentence for example, “There are 24 delicious ways to use
Gardenia Bread!” can attract customers to read and try to use the given recipes. In addition,
enhancement on the point of convenience and easy to prepare also will be an attractive aspect
for millennial group.
For millennial generation, they are really open and active to the usage of social media
approaches. Hence during this pandemic period, Gardenia should use these channels to
penetrate the targeted market segment. There are several social media platforms such as
Facebook, Instagram, Twitter and YouTube for the firm to market their products. As a result,
Gardenia must select the appropriate social media for product marketing and advertising.
According to Derham et al. (2011), Facebook has become a popular platform for endorsing
businesses since it allows for global contact, and Malaysia has 26,009,00 active Facebook
members (Internet World Stats, 2019). Hence, because of their high traffic volumes, Facebook
and Instagram should be considered as the marketing platforms.
Another approach is to advertise on television, particularly on the Food Network channel.
Selecting celebrities among the millennial generation as the ambassador also might attract
the targeted market segment to purchase the products. Most significantly, the commercial
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must promote the usage of Gardenia bread in making delicious food for them. The timing of
such an advertisement is critical in ensuring that the Gardenia message or commercial
reaches the proper and most viewers. The product's sales will eventually increase as a result
of this. Furthermore, many people are working from home (WFH) during the COVID-19
pandemic, thus running the promo during prime time can boost buying interest and brand
recognition.
In addition, during this COVID-19 pandemic Gardenia should also explore on the Corporate
Social Responsibilities (CSR) activities in promoting their brand widely. Collaboration with
NGOs among the millennial group might provide a good impact in penetrating their market.
6.2.
Product Development Strategy
To approach the millennial generation, obviously, a food that is easy to purchase and consume
on the go is a very useful addition to a modern and busy lifestyle. Most importantly, the unique
selling proposition of the use of Gardenia bread in making delicious food for them should be
kept as the key selling point.
Gardenia should introduce a sugar-free black raspberry jam as part of its product development
strategy. Despite the fact that there are several similar products on the market, this should be
the new product manufactured to provide diversity to the current product and ensure consumer
loyalty. This product will be attractive for millennial group as it is easy to prepare for the core
product which is the Gardenia bread to eat together with the jam. According to a survey of
1300 Malaysians on current food trends, 46 percent want less salt and 45 percent prefer less
sugar (Oppotus, 2020). Another study conducted by Herbalife Nutrition questioned 8000 users
in eight countries, including Malaysia, and found that 50% of them had made dietary
adjustments, with 61 percent consuming more fruits, vegetables, and other plant-based
foods16 (New Straits Times, 2021). In fact, the epidemic is impacting Malaysians' diets, with
47 percent reporting that they are eating less meat and 61 percent reporting that they are
eating more fruits and vegetables (The Sun Daily, 2021). Furthermore, the awareness for a
healthy food among millennial generation has been improved in Malaysia since the year 2000
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(Abdullah, Naeem Hayat and Noor Raihani, 2020). Hence, the new product development of a
sugar-free black raspberry jam should attract the demand of this generation.
According to statistic, the leading cause of mortality in Malaysia is Ischaemic Heart Disease
(15%), followed by Pneumonia (12.2%), Cerebrovascular disorders (8.0%), Transport
accidents (3.8%), and Malignant neoplasm of the trachea, bronchus, and lung (2.4%) (New
Straits Times, 2020). As a result, consuming fruits like berries that are high in antioxidants,
fibre, and have a low natural sugar content can help reduce heart disease risk by lowering
blood pressure, improving blood sugar levels, and lowering inflammatory markers20
(Franziska Spritzler, 2019). This product can also be used as a supplement food however it is
less expensive. Berries are also high in minerals like vitamin C, vitamin K1, manganese,
copper, folate, and have a low calorie count (Franziska Spritzler, 2019). This substance,
together with white bread, should provide our bodies with all of the nutrients they require while
also being satisfying. Malaysian consumers have already embraced with healthier and more
natural products. However, they are dissatisfied with the options offered, with only 3%
believing that food and beverage firms provide sufficient healthy eating options (Food Industry
Asia,2019). As far as this is concerned, Gardenia should launch this product in accordance
with the stated trends.
The number of Malaysians suffering from diabetes is steadily increasing. Gardenia is
collaborating with the National Diabetes Institute (NADI) on the "Fight Against Diabetes"
campaign, a large-scale educational initiative aimed at raising public knowledge about
diabetes prevention and control. Malaysians today have a better understanding of nutrition,
and they place a greater emphasis on the nutrients found in food as well as the calories
consumed. They will look at the label of contains nutrient on the packaging before buying the
food in order to help them choose food that is more wisely. To stay healthy, they attempt to
eat foods that are low in salt, sugar, and oil. As a result, Gardenia will continue to work hard
to manufacture healthier product in order to meet consumer demand.
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The price range for this product should be offered between RM 6.80 and RM 10.00 per 200g,
which is still among the most affordable on the market. This is due to the company's late entry
into the market, thus it should aim to compete on price and offered size. Other competitors
include Smuckers22, which costs RM10.28 per 361g, St. Dalfour23, which costs RM12.90 per
284g, Stute24, which costs RM16.40 per 430g, and Golden Tree Fruit25, which costs RM6.80
per 270g (Shopee,2021). Factors affecting consumer purchasing power and spending
patterns make up the economic environment. Consumers with varying levels of income will
have various spending habits. As a result, economic forces will have an impact on Gardenia’s
marketing strategy.
6.3.
Market Development Strategy
Market development plan is a growth strategy used by firms and organizations to promote
their product or solution to target customers who have not yet been reached or served.
Therefore, Gardenia should explore on the new market segment which is the millennial
generation in Malaysia.
One of the reason to target this group who running 30 percent of Malaysian population is the
health conscious and the preferring of bread that is nutrient dense and low in sugar. Gardenia
Malaysia is committed to provide the highest quality and freshest bread to the customers on
a regular basis. Gardenia Quality and Assurance takes the matter very seriously, and
Gardenia customers are aware of the company's commitment to the highest standards of
quality, food safety, and freshness. Gardenia's marketing and R&D teams are always studying
and developing new product developments to meet Malaysians' millennial group shifting
demands and lifestyle needs. For example, we were the first in Malaysia to spot an unmet
market need for low glycemic index bread to satisfy the nutritional needs of diabetics as well
as weight management.
The high conscious on obesity among the millennial generation also will be the aspect that
Gardenia looking to approach this group. Overweight people make up 39% of the world's
population, and obese people make up 13% of the population. Malaysians have the highest
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obesity rate in Southeast Asia, with 48 percent of the population being fat (Abdullah, Naeem
Hayat and Noor Raihani, 2020). Gardenia Breakthru breads, for example, are not only a bread,
but also a nutritious food in the eyes of consumers. It contains Beta Glucan, which helps to
lower cholesterol, and it has been clinically examined and certified Diet Friendly by the
Gylcemic Research Institute in Washington, D.C., since it has Low Adipose Tissue Fat-Storing
Capacity and will help our bodies handle obesity better. It is also Diabetic Friendly, which helps
in the maintenance of a steady blood sugar level after a meal.
The next focus will be how Gardenia will determine their company objectives. They have to
go through the Planning and Implementation procedure. This is where the targeted market
most likely wants to buy Gardenia’s product. Demographics include population number,
growth, age, income, gender, and purchasing preferences. This information helps Gardenia
to decide whether this target market is large enough for their products in the targeted segment.
Comprehensive market analysis for this millennial group should be conducted to see the
profitability and effectiveness to focus on this segment. It's more of a data analysis that leads
to conclusions about Gardenia's product's marketability for this generation. The corporation
should assess the amount of acceptance among Malaysia's millennials. Do customers, for
example, consume the same type of product? Is there a demand for bread or Gardenia's
product among customers? What would people be willing to pay for your product? What other
types of flavors or types of products might people be interested in? Trends in the demographic
of the targeted clients. Is it expanding, contracting, or staying the same? Why is there a
shrinkage if there is one? Some investigation into those topics is required.
In addition, as Gardenia targeting for millennial group hence they also should check on the
geographic location. Decision must be made whether to focus the distribution of the products
mainly for millennial group in urban or rural area. This is important to ensure the supply can
meet the demand in specific area. The target should be in main city for each states in Malaysia
as these are the areas where the millennial group is located for working and studying. The
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modern and busy lifestyle among millennial generation also mostly in reality occurred in urban
area.
Why is this strategy important? It allows a company to grow and reach new customers in a
planned and structured manner. Expanding your customer base opens the door to more leads,
sales, and profits, but comprehensive research is required to ensure that targeting new
customers is valuable. Gardenia must also be able to recognize the needs of their customers.
Gardenia may easily win the market once they understand the needs and preferences of the
millennial generation.
Gardenia should build their goods for the millennial group because it is highly welcome and
promising, based on the above rationales. In addition, through the strategies it’s more
promising they can be successful for this group.
6.4.
Diversification Strategy
The core product of Gardenia is well-known for a bread. And it is Malaysian mentality, when
they think of bread, they think of Gardenia. Nevertheless, a diversification strategy to produce
a product which is not specific to a bread might help Gardenia to penetrate new market among
millennial group. Gardenia also excels at product innovation, as seen by the fact that company
is constantly introducing new products and providing clients with more options. Gardenia's
marketing and R&D teams are always studying and developing new product developments to
meet millennial’s shifting demands and lifestyle needs. Instant pasta is one of the product that
can be considered by Gardenia to diverse their product.
6.4.1. Why pasta is recommended as a diversify product (related
product)?
Pasta is chosen as the main ingredient is flour same as a bread. Hence, it is possible for
Gardenia to keep using their existing flour supplier for production of pasta. For example, with
the strategy to use local suppliers for ensuring the resources received are fresh therefore the
high quality of pasta also can be produced by Gardenia.
23
When we talking about millennial group, pasta can be considered as one of their favorite food.
Pasta is an Italian dish that spread throughout Europe in the early ages and across other
countries throughout the world wars. Pasta first arrived in Asia many years ago, and it is
currently one of the most popular foods in Malaysia, particularly at social gatherings. Pasta is
an affordable product that is popular among Malaysians. In addition to offering it with the same
old tomato basil sauce, it has been improved with our Asian flavors and recipes. Gardenia is
a well-known bread firm with associated diversification synergies between its existing
business and the proposed new product. This concept has the potential to enhance revenue
because it introduces Gardenia to a completely new revenue stream. It also has a lengthy
shelf life, allowing customers to keep it in the freezer until they're ready to prepare a meal.
6.4.2. Who are the target market segment?
The target audience for this diversification strategy is for millennial group. With less time
consuming in preparing pasta produced by Gardenia will be convenience for this target
market. As the workload and working commitment among millennial group in Malaysia grows,
so does the need for ease in all aspects of life. For example, demand for fast food (KFC, Pizza
Hut, and McDonald's), instant beverages (soft drinks, Milo, Soya, and so on), and online
shopping. This is due to the fact that they are overworked. As a result, Gardenia can offer
pasta to these busy groups as a quick and healthy dish. No matter how hectic life is, a desire
for good meals is a need.
Nevertheless, the diversify product also can be taken for all types age categories. Customers
have the most immediate microeconomic impact on Gardenia's revenue stream, and because
pasta is a fast-moving consumer goods (FMCG) product, target customers cover all age
groups and range from low to high income. Plant-based pasta made from spinach for vegans,
kids' little alphabet pasta, high-fiber pasta for elderly customers' easy digestions, and
innovative styles and shapes of pasta in line with current trends are just a few instances of the
attraction factors. In addition, Asian spicy flavour instant pasta, such as Rendang, Thai, Curry,
or even Asam Pedas, is also a convenient type of pasta that only takes 3 minutes to soak in
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hot water before serving, making it ideal for busy working millennial group who do not have
much time to spend in the kitchen. Knowing that pasta is a popular consumer item in every
store because it is one of the most basic, healthy, and filling foods available, raises awareness
of the importance of a well-balanced diet that is low in sodium and cholesterol. As result the
recipes of pasta is now being served in the Asia are blended with Asian’s local sauce recipes
from all Asian countries such as thick curry flavours, Rendang, Thai, and many more.
6.4.3. Where to start?
In Malaysia, instant pasta will be suitable more for millennial group in urban area. This group
staying in urban area is mostly open to varieties of western food likes instant pasta. Gardenia
can also plan to start with the local market, which is already well-established in all of the
neighboring countries. Going global in stages is also a fantastic idea because this product will
undoubtedly compete well in third-world countries.
6.4.4. What is the best way to do it?
Table 1 justifies the strategies to implement the recommendations based on research and
development evidences from micro and macro marketing environmental trends.
Table 1: Strategy Through Marketing Environmental Trends (https://theintactone.com)
Micro environmental
Competitors
This is the first time in Malaysia that a bread company has taken this
step. Even if there are established competitors, product innovation will
definitely develop, ensuring that buyers are not bored with the same
type of product.
Workforces
Because the corporation would simply need to hire the experience or
specialized on pasta products, the cost is little. For line production,
Gardenia can use their existing general workforce team. Perhaps
recruiting should only be increased in phases as the company expands,
as well as when demand volume increases in the market.
25
Stakeholders
As this is a partially start-up concept for a new diverse product,
investors will undoubtedly begin to invest because it will attract at least
70% of Gardenia's current clients and create a new revenue stream.
Investors are critical as a financial source or backup for the first two
years for any expenses incurred during this time, such as spending on
product advertising, innovations, and anything else falls under cost.
Macro environmental
Economic
From a financial standpoint, pasta is a product that everyone can
purchase, costing no more than RM4.50 on average. In a month, every
household will purchase at least two packages of pasta. Pasta is in high
demand, especially during this epidemic season. Because the target
demographic is all ages and the product is well-known, this will
generate a solid revenue stream.
Technology
Since the first movement control order, Malaysia's e-commerce
platforms have grown considerably, and because to the current Covid19 pandemic, this is now the new normal for humanity. Customers
prefer shopping online versus going out since it is safer, saves money
during special promotional hours, saves time, and reduces expenses
such as petrol and parking fees. As a result, Gardenia's selling
platforms might include marketplaces like Pandamart and Shopee.
Social
Culture
and In Asia, trends are influenced by western culture, such as movies,
television shows, and food channels, as well as the popularity of new
improved flavors or blended recipes.
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7.0.
Tactics
What Are Marketing Tactics?
Marketing tactics are the strategic actions that direct the promotion of a product or service to
influence specific marketing goals. Essentially, these are the high-level ideas. The content you
create falls into your tactics. Content types are not tactics. Nor are content types specific to a
single marketing tactic.
For example, a marketing tactic is a case study. The content you create to execute that
marketing tactic may include blog posts, white papers, and videos.
Below are the few tactics used by Gardenia to penetrate their products within the millenarians
7.1.
Internet Marketing
Gardenia's targeting strategy is differentiated marketing, which is also known as mass
marketing. Remember the bread, which is "so wonderful... you can eat it all by itself." People
would think of the convenience of Gardenia bread when they hear the song because it may
be eaten without any side dishes. An earned marketing strategy in which you strategically
supply information to a media outlet in order to get them to generate content that promotes
your brand, product, or service positively.
Gardenia understands that a successful promotion is critical to the company's success. Many
efforts were expended in the early years to promote the bread, but once consumers accepted
it, they became devoted to the product. Advertising, sales promotion, personal selling,
publicity, and public relations are all examples of promotion.
Advertising is defined as paid personal communication through various media with the goal of
promoting items. It is used by marketers to reach target markets with messages that appeal
to business corporations, profit organizations, or final consumers. Gardenia has promoted its
products through advertising tactics. Gardenia like to use radio commercials, television, and
27
newspapers among the different alternative media. But, as the target market for this project
are millennials, Gardenia should seek more options towards digital marketing through
Facebook Ads, Instagram, YouTube and others.
7.2.
Researched and Healthy Food Concept
Marketing Analysis Gardenia takes pride in being a pioneer in the bread sector, having
introduced multiple firsts. Gardenia is the first company in the country to adopt an automated
G-lock to seal its bread goods and keep them fresh. The "Best Before" date and retail price
are printed on this plastic clip, which is attached to the "neck" of the bread packaging. Gardenia
breads are also packaged in colorful and instructive packaging that is exhibited upright rather
than flat.
Gardenia will attain market penetration with this new marketing research. Gardenia also
delivers freshly baked breads to stores the same day they are baked, following to the
international norm of keeping only fresh inventories on store shelves. Gardenia distributes
every day, seven days a week, thanks to its large distribution network. Unsold breads will be
removed from store shelves and replaced with only freshly cooked loaves on every delivery
day.
7.3.
Awareness through new market penetration
In Malaysia, Gardenia is a well-known brand. Gardenia provides a wide range of breads,
including the most recent Butterscotch, Breakthru, Delicia, Twiggies, and many others. Every
Gardenia product has its own unique features in order to satisfy varying levels of consumer
satisfaction.
Gardenia distributes their breads widely, whether in urban or rural areas, to ensure that
everyone has access to them. Everyone is familiar with Gardenia baked goods, as we all
know. Gardenia has more than 20000 stores across Peninsular Malaysia. Almost all
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hypermarkets, supermarkets, and even neighborhood stores carry their large range of
products.
The present generation of millennials expects everything to be quick and easy. They would
prefer to eat breakfast first thing in the morning, perhaps while driving, travelling to school, or
studying. It evolved into a very convenient cuisine that can be consumed anywhere at a cheap
cost.
8.0.
Tracking and Evaluation
8.1.
Performance Monitoring
Step 1 - Set goals and expectations
The foundation you'll need is clearly stated sales targets for your team. These objectives
should not be imposed with the harshness of the Ten Commandments. The easiest method
to create sales team goals is to have your team participate in the process.
You'll have a better chance of discovering problems this way. As a result, your objectives will
be more attainable, and your team will be more motivated and invested in achieving them.
Step 2 - Plan to measure both short- and long-term goals
Short-term task completion and long-term performance are both prioritised in the most
effective performance measures. This combination of objectives and incentives promotes a
positive work ethic.
Step 3 - Develop an up-to-date visual dashboard to consider every stage of the pipeline
More than just closing the business should be on your sales team's mind. Every level of your
pipeline must be filled, which requires sales prospecting to be managed and qualified leads to
be cultivated. However, it is not a sales manager's responsibility to fill your pipeline; rather, it
is your responsibility to educate your team on how to fill it (and to know how to tell when it is
29
properly filled). You'll need up-to-date measurable metrics so you can keep track of each of
your salespeople's progress at a glance.
8.2.
Evaluation
Gardenia's business has been damaged by the Covid-19 epidemic, as customer demand is
low and stores are unable to open in some regions due to state MCO laws. As a result,
Gardenia's Diversification Strategy must be maintained, allowing the company to increase its
footprint while still having room to occupy an altogether new place. Gardenia currently offers
a free guided factory tour to the general public to see how they make premium-grade breads.
Due to a high demand for bread among university students, Gardenia can take advantage of
this chance to enhance its sales volume by launching a product promotion and implementing
the Gardenia Campus Plan. This is a novel approach for attracting more business and support
from students and staff by providing holders with an unique purchasing discount. As a
diversification tactic, the firm may provide "Gradenia baking workshops for the general public."
.
30
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