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
Competitors

Old Town Roti Bakar Kopitan Classic

Types PappaRich
White Coffee
of
Food

Nasi
Lema
k

White
Coffee

Chees
e - -
Toast
Bread
Kaya
&
Butter
Toast
Bread
Weste
rn
Deligh -
t

Penan
Curry
Mee
- -

Haina
n
Chicke
n 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.
2.3 Competitors Strengths, Weaknesses, Opportunities and Threats.
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.
  The price of bread is cheap enough to be affordable by all community /
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
 Growing competition and lower profitability
 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
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
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.

Conclusion
 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]