situation analysis
TRANSCRIPT
MEDIA INNOVATION Design Project 1
(MMI3213)
SITUATION ANALYSIS Brand: Cupcake Chic
Name: Amira Fateha bt Tambi ID: 1092700093
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Chapter 1: Project Overview __________________________________________________
1.1 Introduction
Figure 1: Cupcakes by Cupcake Chic
Cucpakes are more versatile than ice-cream, donuts, traditional cakes or any
other form of dessert. Cucpakes can be a form of dessert to cater to the impulsive
craving of the individual much like ice-cream, ice kacang or a slice of cake. Yet, it
can also be a personal gift to someone special. Cupcake Chic is a premier cupcake
specialist bakery (known as a cupcakery) offering 24 cupcake flavors with a
combination of 12 flavors that changes daily. The wide assortment ranges from the
classic best selling duo of the chocolate Fatal Attraction and the unique cream cheese
frosted Red Velvet to the local favourite, Onde Onde cupcake and every other flavor
in between.
At Cupcake Chic, they bake everything from scratch, every single day. The
apples are lovingly peeled and cored. The pecans are caramelized in a pan. The
bananas are mashed when they are at their sweetest and ripest. The lemons and limes
are hand-zested. They mix and bake them just as you would in your own kitchen.
They were introduced to the market in Malaysia in January 2008 and already have 3
outlets located in Selangor area. Cupcake Chic has slowly grown to become a familiar
and popular name in urban Kuala Lumpur.
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1.2 Problem Statement and Issue
The problem faced by Cupcake Chic is people’s perception when it comes to trying
out new cake inventions like the large size cupcake produced by Cupcake Chic. In
terms of pricing, the extra large cupcake named “Livin’ Large Cupcake” are a bit
pricey than ordinary cakes sold by other brands. This leads consumers to buy cheaper
sold cakes instead. They are also lack of advertisement and promotion of their
products.
1.3 Objectives and Aim
Objectives:
• To inform the public about the advantages of the cupcakes by emphasizing the fresh ingredients used in making the cupcakes.
• To change people’s perception by perceiving the quality and value of the
products.
• To create brand awareness to those who are unfamiliar with the special cupcakes produced.
• To renew the brand’s positioning statement.
Aim:
The aim of this project is to collect and gather useful information to create an
effective advertising approach to improve the brand image of Cupcake Chic and thus,
guiding consumers to enjoy the cupcakes as well as knowing the benefits of its
products.
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Chapter 2: Project Profile __________________________________________________
2.1. Product Name
Cupcake Chic
2.2. Product Classification
Cupcake Chic is a consumer product because their products function are to satisfy an
individual’s need and desire. It is categorized as a non-durable product due to its
food/edible goods that will fit human’s consumption and will eventually be finished.
Cupcake Chic is also a shopping good as consumers get the chance to choose their
desirable products/flavours that matches their interest.
2.3. Product Characteristics
Category: Cupcakes, macarons, large size cupcakes, biscottis
Type: Food dessert
Packaging: The products are normally served in a designed box with the brand’s logo
sticker on it.
Figure 2: Cupcake Chic’s packaging design
Flavour Range: 24 international and local flavours. New flavours are also available
for a limited time during festive seasons.
Unit of sale: Per cup/ ½ dozen / 1 dozen
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Price Range:
• RM 4.90 – RM 51.00 (for cupcakes serving depending on quantity from one
cupcake to ½ dozen and 1 dozen cupcakes)
• RM 3.90 – RM39.60 (for macaron packs depending on quantity from single
macaron to ½ dozen and 1 dozem macarons)
• RM 75.00 – RM 150.00 (for Livin’ Large cupcake depending on toppings and
optional add ons such as birthday candles and fondant letters)
Figure 3: Cupcake Chic’s product price range
RANGE SELECTION PRICE (RM)
Cupcake
Single 4.90
½ dozen 27.00
1 dozen 51.00
Macaron
Single 3.90
½ dozen 22.20
1 dozen 39.60
Livin’ Large Cupcake
Cake Flavours
Back to Basics
Fatal Attraction
Red Velvet
Othello
75.00
85.00
80.00
85.00
Add a filling 5.00
Add a topping 2.00
Optional Add Ons
Birthday candles
Fondant letters
5.00
2.00
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Figure 4: Cupcakes and macarons by Cupcake Chic
Figure 5: Livin’ Large cupcakes by Cupcake Chic
2.4. Product Range
Cupcake Chic serves a wide variety of selection of cupcakes, macarons and also
large-sized cupcakes. They contain only the finest and best quality ingredients and are
made with fresh dairy products from halal suppliers.The flavours offered for cupcake
includes 24 different flavours which are categorized into 4 categories called Classics,
Lites, Love ‘Em and Chocoholics. They offer a combination of 12 different cupcakes
daily so each day is a new experience for consumers. As for macarons, each of them
are Dainty French cream-filled sandwich cookies. They are available in 12 different
and unique flavours daily. As for the product of Livin’ Large cupcakes, they are
available in four of Cupcake Chic’s top flavours. Customers can also customize their
own frosting design, colour, add-on fillings, toppings and other additional add-ons as
well.
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Cupcakes:
Classics
Flavours
Fatal Attraction
Belgian chocolate cake with chocolate
frosting
Back to Basics
Vanilla cake with vanilla frosting
Red Velvet
Red velvet cake with cream cheese
frosting
Naughty ‘n Nice
Vanilla cake with chocolate frosting
Chocofee
Coffee cake with chocolate frosting
(mocha)
Othello
Belgian chocolate cake with vanilla
frosting
Figure 6: Classics category
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Lites
Flavours Description
Strawberries ‘n Cream
Strawberry filled cake with vanilla frosting
Peaches ‘n Cream
Peach cake with cream chantilly and almond flakes
Hello Sunshine!
Orange poppyseed cake with citrus frosting
Blueberry Crumble
Blueberry oats cake with oats crumble
Adam’s Apple
Custard filled cake with apple cinammon slices
Lemon Meringue
Lemon cake with meringue topping
Figure 7: Lites category
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Love ‘Em
Flavours/ Description
Arabian Nights
Dates cake with toffee frosting
Utter Peanut Butter
Peanut butter chocolate chip cake with peanut butter frosting
24 Karat
Carrot walnut cake with lime cheese frosting
Tiramisu
Coffee infused cake with cream cheese frosting
Cookies ‘n Cream
Cookies and cream cake with vanilla frosting
Onde onde
Pandan gula melaka cake with coconut frosting
Figure 8: Love ‘Em category
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Chocoholics
Flavours Description
Nutters Gone Bananas
Banana cake with chocolate hazelnut frosting
Rich & Cool
Belgian chocolate cake with peppermint frosting
Blackforest
Chocolate cherry cake with whipped cream frosting
Jaffa
Chocolate orange cake with chocolate frosting
Rocky Road
Devil’s food cake with rocky road topping
On Cloud 9
Chocolate marshmallow cake with chocolate frosting
Figure 9: Chocoholics category
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Macarons
Flavours
Black sesame
Fatal Attraction
Earl Grey
Green Tea
Peanut Butter & Jelly
Raspberry
Coconut Ginger
Coffee
Lavender
Lemon
Red Velvet
Salted Caramel
Figure 10: Macarons by Cupcake Chic
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Livin’ Large Cupcakes
Flavours
Back to Basics
Fatal Attraction
Red Velvet
Othello
Figure 11: Livin’ Large cupcakes by Cupcake Chic
2.5. Distribution
Cupcake Chic products are directly distributed to their specific outlets where
consumers get to buy them without involvements of any intermediaries. Based on the
product life cycle graph, it is shown that Cupcake Chic’s sales are currently at its
growth stage as they are still focusing on improving their promotion and advertising
strategies to reach its target audience. Cupcake Chic is considered an emerging
products that are growing in the food industry.
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2.6. Product Life Cycle
Figure 12: Product life cycle of Cupcake Chic
2.7. The Brand
Cupcake Chic is Malaysia’s first and premiere cupcakery which has its own
core business of producing cupcakes. They commit to making sure that their cupcakes
are fresh baked and delivered to outlets daily, keeping their quality consistent by
using quality ingredients and fresh dairy products. They offer products, which include
cupcakes, macarons, biscottis and also large-sized cupcakes. Cupcake Chic differs
themselves from a sea of smaller, home-based competitors by relentlessly focusing on
innovation to develop the best-tasting and most memorable products across multiple
platforms to maximize more revenues. They offer a wide variety of products, which
include cupcakes, macarons, biscottis, beverages and large-sized cupcakes. Their
products also cater to larger groups of people especially those who are doing event
ocassions such as weddings, birthdays, corporate events, parties, engagements which
incorporate cupcakes as their centerpiece of attraction.
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2.8. Brand Image and Implication
Cupcake Chic is well known for its cupcakes that are high quality and offers a wide
variety of flavours. According to the founder, Joanne Ho, Cupcake Chic is bringing
the popularity of the retail cupcake industry (worth US$6 billion in the US and
growing at +35% year on year) from the USA to Malaysia. Customers enjoy buying
products from Cupcake Chic relentlessly because of their commitment to innovation
in the areas of creative menu, store design and also customer engagement. Not to
mention, they serve as a delicious food dessert for costumers too. Cupcake Chic is
currently a growing brand in terms of expansion of its cupcake business and
popularity among consumers. They are expanding through franchise outlets in
Malaysia and may expand widely through other countries too in the future. Cupcake
Chic’s loyal customers love the brand for their range of flavours and frequent
discount promotions offered in special events and festives.
2.9. Strengths and Weaknesses
Strengths:
• Offers 24 cupcake flavors.
• New flavors invented during special holiday festives.
• First cupcake bakery also knows as cupcakery in Malaysia
• Uses fresh fruits and ingredients
• First to produce large sized cupcake
Weaknesses:
• Outlets are not available in many states. Only focuses in Selangor area.
• Consumers perception in terms of pricing (expensive)
• Limited advertising and promotion of the cupcakes
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2.10. Advantages and Disadvantges
Advantages:
• Varieties in flavours to be choosen by customers
• Unique designs for each products differs from different flavours.
• Fresh dairy products used for baking.
• All ingredients are taken from halal suppliers.
• Caters for special ocassions (wedding, birthday party, corporate events etc.)
• Customers can make online ordering and products will be delivered.
Disadvantages:
• Outlets are only available in Selangor area.
• Competition from other brands
• Delivery of products made through online ordering are limited only to
Selangor, Wilayah Persekutuan, Penang and Johor.
2.11. Unique Selling Proposition (USP)
Cupcake Chic offers the best-tasting cupcakes from small to large sizes in variety of
flavours.
2.12. Promotional History and Advertising Schedule
Promotions for Cupcake Chic are actively done in Cupcake Chic’s fan page through
social networks such as Facebook and Twitter. Below are some of the promotions
offered:
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Events and Activities
2009:
1. 22nd January - Chinese New Year Celebration, The Curve
2. 4th May - TimeOut Birthday Bash,Time Out Kuala Lumpur
3. 26th August – McDonald’s Malaysia anniversary,Kuala Lumpur
4. 30th August – Asia Wedding Shoot, Colmar Tropicale, Bukit Tinggi
5. 4th September – Cupcake Chic’s Appreciation Dinner,C.Club, Pavillion KL
2010:
1. 31st January – Pavillion Kuala Lumpur 2nd Anniversary, Pavillion KL
2. 21st April – Garden Wedding Theme , Grand Dorsett Subang
3. 9th May – Mother’s Day Celebration, Sunway Pyramid
4. 12th May – La Senza’s Roadshow, KLCC
5. 16th May - “Her World” Mothers & Daughters Cupcake Decorating Session,
Pavillion KL
6. 17th June – Wong Sze Zen’s wedding (former Miss Malaysia) , Kuala Lumpur
7. 16th September – Cupcake Chic New Flavours, Pavillion KL
8. 8th October – Blackberry Bold Launch, Cupcake Chic The Curve
9. 14th October – Digi Rocks! Campaign, Pavillion KL
2011:
1. 11th February – Valentine’s Day Celebration, The Curve
2. 15th April – Masterchef Malaysia’s Audition Launch,Kuala Lumpur
3. 18th April – Kingdom Women Conference, Kingdom City Church, PJ
4. 22nd April – Time dotcom Astro B.yond Launch, Petaling Jaya
5. 23rd July - Daily Muscle Transformation Camp, Taman Tun Dr Ismail
2012:
1. 26th May – Disney Pixar’s Brave Cupcake Decorating Class, Sunway Pyramid
2. 13th June – Cupcake Camp 2012, Cupcake Chic The Curv
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Promotions and Coupon Deals
1. Zalora Voucher
• Buy 5 free 1 cupcake with Zalora shopping voucher worth RM30
• Buy 9 and above, free 3 cupcakes with Zalora shopping voucher worth RM60
• Valid from 20 July – 30 August 2012
2. Cupcake Chic collaboration with Espresso Lab
• 1 set of espressoLAB coffee and 2 cupcakes for only RM10
• Valid from 26 May – 10 June 2012
3. Cupcake Chic Online Coupon
• Free cupcake with 1 purchase of cupcake
• Valid only with original email after free Cupcake Chic newsletter subscription
• Valid until 31 December 2011
4. Ramadhan Special 2011
• Buy 9 free 3 cupcakes
• Valid from 1 – 29 August 2011
5. We ♥ Japan
• Every box of “I ♥ Japan” red velvet cupcakes purchased, 50% will go to the
World Vision Japan Quake & Tsunami Fund
• Valid from 22 – 31 March 2011
6. Groupon
• 50% off for 1/2 dozen cupcakes at RM13.50 instead of RM27.
• Available at Sunway Pyramid and The Curve
• Valid from 27 – 30 September 2010
• 127 coupons sold
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7. Fabulous Food Month of November
• 15% off for 1 dozen of cupcakes and above
• Valid from 1 – 30 November 2009
8. Merdeka Weekend Special
• Durian Chocolate Cupcake
• Valid from 28 – 31 August 2009
9. Ramadhan Special 2009
• 25% off for 1 dozen cupcakes
• Discount from RM48 to RM 36 per 1 dozen
• Valid from 21 August – 19 September 2009
10. Valentine’s Dolce Box
• 6 Valentine’s themed cupcakes for RM35
• Valid on 13 & 14 February 2009
11. Christmas with Cupcake Chic
• White Christmas Cupcake and Choco Mint cupcake
• Available from 1 – 31 December 2009
12. Follow @thecupcakechic on Twitter
• Free “Fatal Attraction” cupcake when you follow @thecupcakechic on Twitter
• Valid on 14 September 2009 with given password for cupcake pick-up.
13. Christmas Promo
• 1 “Fatal Attraction” cupcake to be picked up at Centre Court,The Curve
• Valid from 30 November 2007 – 6 January 2008
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Newspaper and Magazine
1. MT.(January 2012).Cupcake Chic – life in the cupcake world.Malaysia Tatler
Magazine
2. Pillars. (November 2011). Princess of cupcakes. SME Malaysia
3. Tania Wee. (April 2011). How do you work with someone close to you? Her
World Magazine
4. Carolyn Hong. (September 2009). Twitter’s reach growing in Malaysia.
Singapore Straits Times
5. MW. (September 2009).Cupcake Chic beri kegembiraan.Mingguan Wanita
Magazine
6. Khadijah Mohamad Nor. (December 2009).Populariti Cupcake Chic.Kosmo!
TV and Radio
1. Astro Awani Interview with Joanne Ho (Ch 501) 11th October 2009, 9.30 pm
2. Cupcake Chic Interview with BFM 89.9 (Open for Business segment)
21st January 2010
2.13. Positioning Statement
Cupcake Chic offers the best-tasting cupcakes from small to large sizes in variety of
flavours suitable for consumers aged 18 – 25 years old who is outgoing and loves to
spend time with friends and families while having a dessert treat.
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Chapter 3 – The Company
__________________________________________________
3.1. Company Overview
Cupcake Chic first opened its door in Janauary 2008. They have grown to become
more familiar and a popular name in Kuala Lumpur since then. They are considered
Malaysia’s first cupcakery that has established themselves in the food and beverages
industry categorized under food dessert. The company produces iconic cupcakes that
are available in many flavours to provide customers with something they can enjoy
everyday whether impulsively or planned. They are planning to open up more outlets
in the future. The outlets of Cupcake Chic up to this date can be found in Selangor
area which are located at Sunway Pyramid,Ampang Point and The Curve.
3.2. Business Description
Cupcake Chic products are focusing mainly on food dessert retail with
cupcakes as their main profit in the bussiness. They are not just about cupcakes alone.
They are constantly innovating their menu to include macarons, giant-sized cupcakes,
biscottis, gourmet espresso coffee as well as cookies, brownies and a
breakfast/lunch/dinner menu soon to be launched. Their brand attracts consumers
who enjoys having some dessert treat for themselves.
Since Cupcake Chic has received their Franchisor status from the Franchise
Ministry, they also provide 3 franchise investment packages, for people who are
interested in joining their business. The packages are Compatto, Medio and Famiglia
(each meaning Compact size, Medium size and Family size). Compatto is a compact-
style kiosk format between 125-175 square feet. The Compatto is a take-away model
and ideal in corporate office buildings,shopping malls,high-end condos and transport
hubs. Medio is a store format between 400-600 square feet with limited seating
space.It is also considered as an island kiosk formats with seating which combines the
best of a take-away and dine-in model.Small functions i.e parties may be held at the
Medio store. They are ideal in shopping malls and shop front lots.
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Famiglia is a café outlet between 750-900 square feet,that builds a revenue stream dot
easy take-away,dine-in and event functions. This type allows dine-in customers to
find their personal space for a group of people to connect.The important feature is that
it caters to children- a zone for kids to play and be safe while the parents
socialize.They are ideal in shopping malls and shop front lots.
Cupcake Chic has an established business system that franchisees can leverage
on with a strong leadership marketing support by the founder. Cupcake Chic has
relentless commitment to innovation in the areas of menu, store design and customer
engagement.
3.3 Company History
Cupcake Chic is Malaysia's first cupcake specialist bakery, also known as a
cupcakery, established in January 2008. The company was founded by a husband and
wife team namely Joanne Ho and Ben Foo. They are bringing the popularity of the
retail cupcake in the food and beverage industry. Their products are not just a dessert
to be enjoyed impulsively but perfect also for celebrations large or small such as
weddings, corporate events, birthday parties, baby full moon, etc. They have 3 outlets
in Selangor area. Their main store is located at The Curve,Damansara. Another 2
outlets are owned by their franchisees - Tengku Soraya Tengku Nerang Putra and
Ramachandran A/L Muniandy. They realized that the key to successful business is to
provide customers with something they can enjoy everyday whether planned or
unexpected. Cupcake Chic specializes in making variety of flavours for their
cupcakes. They also uses fresh dairy products and ingredients which are taken from
halal suppliers in order to meet their high quality specifications in every product. The
signature product of Cupcake Chic is their iconic cupcakes.Furthermore, they also
produce macarons, biscottis, cookies and also giant-sized cupcakes. Their company
does not only depend on the franchised retail outlet but also from Cupcake Chic
Occasions (i.e. weddings, birthdays, corporate events, etc.) and online sales.
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3.4 Key People
• Founder / Managing Director – Joanne Ho
• Co-Founder/ Marketing Director - Ben Foo
• Assistant Manager - Nadia Sofea
• Ocassions Architect - Chen Qian
• Product Innovation Chief - Swee San
• Franchisee (Ampang Point) - Tengku Soraya Tengku Nerang Putra
• Franchisee (Sunway Pyramid) - Ramachandran A/L Muniandy
3.5 Location and Subsidaries
Cupcake Chic’s Headquarters Office
Cupcake Chic Sdn Bhd
46M, Jalan SS2/67
Sunway Mas Commercial Center,
47301 Petaling Jaya, Selangor
Cupcake Chic outlets can be located at the following areas:
• Cupcake Chic @ The Curve
Lot GZF-4, Ground Floor
No. 6, Jalan PJU 7/3, Mutiara Damansara,
47810, Petaling Jaya, Selangor
Tel: 03 7726 9075
Fax: 03 7726 9058
• Cupcake Chic @ Sunway Pyramid
Lot F1.87, 1st Floor,
Sunway Pyramid Shopping Mall,
No. 3, Jalan PJS 11/15,
Bandar Sunway, Subang Jaya,Selangor
Tel/Fax: 03 5638 9989
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• Cupcake Chic @ Ampang Point Shopping Mall
Lot FM 26-27, Ground Floor, Ampang Point Shopping Mall
Jalan Mamanda 3, Taman Dato’ Ahmad Razali
68000 Ampang, Selangor
Tel: 010 247 7545
3.6. Brand, Major Products and Services
Cupcake Chic’s meticulous attention to excellent quality and careful choice of
ingredients makes their products special. Cupcake Chic products contain only the
finest and best quality ingredients which are fresh dairy products from halal
suppliers. The signature cupcakes of Cupcake Chic consists of 24 flavours, whereby
each one differs in its unique taste and appearance. They offer a combination of 12
different cupcakes daily so each day is anew experience for the customers. The
cupcake menu is made up of 4 categories:
1. Classics consist of the popular flavours like Vanilla, Belgian Chocolate, Coffee
and Red Velvet.
2. Lites are considered “lighter” cupcakes that are not too rich and heavy catered for
the weight conscious customers.
3. Love ‘Em are their specialty range where each cupcake flavour has its own twist
to it.
4. Chocoholics are more aimed towards chocolate lovers as the cupcakes have a
good variety of chocolate inspired flavours and richer in taste.
Other products of Cupcake Chic includes macarons, biscottis and giant-sized
cupcakes called the Livin’ Large cupcakes. The services that Cupcake Chic offers
include online ordering and also Cupcake Chic Occasions, which is fully customized
cupcakes for large orders and ocassions such as weddings and corporate events.
Cupcake Chic Ocassions provide other stream of revenue to franchisees so that they
have more potential to earn and not only confined to the retail outlet only. Other
services that Cupcake Chic offers are training skills for employees and ocassion
architect that are assigned to help for special themed events.
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3.7. Corporate Vision
• To satisfy each costumer by providing the best-tasting treats
• To enhance customer engagement service to meet customers expectations.
3.8. Corporate Mission
To provide a strong leadership marketing with the best management services that
clients can depend on in terms of the pricing, efficiency, and product design.
3.9. Company’s Current Promotional Strategy
The promotions made by Cupcake Chic are mostly active during festive months
where celebrations are held quite often. These promotions usually last for a period
ranging from one week to one month.
2012: Support & Sponsoring Events
• Disney Pixar’s Brave Cupcake Decorating Class
• Cupcake Camp 2012
2008-2012 Festive Season
• Mom’s Pink Dolce Box for Mother’s Day
• Valentine’s Day Dolce Box
• Christmas Dolce Box
• Raya Dolce Box
• Ramadhan Special
• Merdeka Weekend Special
• Fortune Cupcakes for Chinese New Year
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3.10. Product Sales History
According to the founder of Cupcake Chic, Joanne Ho said that the outlets have
shown strong double digit growth since 2008 and it is largely due to the versatility of
cupcakes that they provide.
3.11. Current Marketing Objective
Short Term Objective:
To provide the best-tasting cupcake products and come up with new inventions of
cupcake flavours to maintain their uniqueness and high quality of products offered.
Long Term Objective:
To expand their brand to be well known nationally or internationally by their target
market and to develop more outlets and be an innovative leader in the cupcake market
industry.
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3.12. Media Expenditure
Cupcake Chic has an established system through media for their promotional
activities. They depend more on online advertising and social media to promote their
brand. The online deals offered not only helps customers get the best deal but also
engage them with a closer interaction to Cupcake Chic.
Other than that, Cupcake Chic also uses print media such as magazines and
newspapers to promote their brand. There are also articles that can be found through
online blog reviews by food blogs and even customers who have been to Cupcake
Chic sharing their experience in their daily blog. In addition, Cupcake Chic also
produce brochures and flyers for customers to get to know about their latest products.
There are also events which Cupcake Chic are involved in especially the ones such as
launching of an event or campaign where they uses cupcakes as the centerpiece of
attraction. By this way, Cupcake Chic tremendously get the attention of other people
around to be more familiar with their brand. Latest news, events and promotions can
also be found in Cupcake Chic’s official website and also their Facebook fanpage
which is actively updated regularly. Their customer database has over 5,000 on email
and alo 75,000 on Facebook acurately up to this date.
Figure 13: Cupcake Chic’s official website
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Chapter 4 – Consumers and Stakeholders
__________________________________________________
4.1. Current Consumer’s Characteristics
4.1.1 Demographics
a) Age
18-29 years old
b) Gender
Male and female
c) Education
High school, colleges and universities
d) Occupation
Students, white collar workers.
e) Income Range
-Student’s allowance (RM 100-RM500)
-White collar workers income (RM1500- RM3000)
f) Race & Ethnicity
All races and ethnicity
g) Geographical Location
Urban and sub-urban areas
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4.1.2 Psychographics
a) Perception
• Enjoys spending time with families and friends.
• Loves having a dessert treat for themselves.
b) Learning
• Influences from both digital and social media such as Facebook, Twitter, online
blog reviews, online promotion deals and websites.
• Recommendation by families and friends.
c) Motivation & Needs
• Exploring unique and attractive dessert options to try out to enjoy with families
and friends.
• Loves to experiment different type of flavours.
d) Attitude & Personality
• Outgoing and loves to socialize with others.
• Jovial, adventurous, love trying out new things.
e) Lifestyle
• Active life routine and may experienced stressful study/working life but knows
how to take a break from it.
• Enjoys going out for gathering, events and celebrations.
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4.2 Stakeholder’s Characteristics
4.2.1 Primary
The primary stakeholder is the franchisor, Cupcake Chic which is owned by a
husband and wife team namely Joanne Ho and Ben Foo. In a franchise system, the
franchisor is the entity that develops the bussiness model,brand and the whole
franchise system that franchisees can leverage on.This includes the following:
• Development of product design
• Branding and innovation in areas of menu,store design and customer engagement
• Design of the outlet (compact-style kiosk,store format and café outlet)
• Research and development of the product
• Central Kitchen that bakes and delivers to franchised outlets daily
• Customer database
• Strong leadership markerting support
• Simple operation to manage
4.2.2 Secondary
• Franchisees
Franchisees determine the package that they would like to invest in. Franchisees will
select the location of the outlet and comply to the franchise system that has been
developed by the franchisor.They are responsible for the management of their outlet
and provide the best customer service to grow their business.
• Local Authorities
The local authorities will consider and give approval to the proposed premise or
location of the outlet submitted by the franchisor/franchisee before they can start their
bussiness operations.
• Banks
The bank helps to provide loans and funds needed by the franchisor and franchisees.
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• Suppliers
Suppliers will help in terms of supplying fresh ingredients and dairy products to the
Central Kitchen of Cupcake Chic for product baking process.
• Media
The media acts as a medium for Cupcake Chic to advertise their products and help in
terms of creating brand awareness of the company.
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Chapter 5 – The Industry and Marketplace
__________________________________________________
5.1. The Industry
5.1.1. Definition of the Industry
In general, the food and beverage industry is widely expanding year after year. The
industry specializes in the conceptualization, the making of, and delivery of foods.
The largest section of food and beverage employees are in restaurants and bars,
including hotels and resorts. In order to satisfy consumers needs and expectations,
food and beverage industry helps to assure that the products are in high quality
guaranteed production whereby companies aim for the best products according to
consumer demands. The competitive environment of the industry is constantly
changing and entrepreneurs have the greatest influence on this matter. The food and
beverage industry changes so regularly because there is a massive variety of
businesses, great and small, that hold stake in it. This types of variety creates many
different sectors in which innovation can bloom through the industry, which leads to
more opportunities for entrepreneurs.
5.1.2 Shape of the Industry
Internationally, the food and beverage industry development growth has been
consistent each year. The industry is expected to increase 3.5% by the year of 2014.
The largest share in the food and beverage industry is currently ranked by Europe
followed by US. As for China and India, they are the major contributor of raw
materials to the industry.
Malaysia’s food industry is rich in terms of agricultural and tropical resources
reflecting diverse cultures in Malaysian society — Malay, Chinese and Indian, have
resulted in a fascinating range of processed food with an Asian twist.The Malaysian
food and beverage market is becoming highly sophisticated and is supplied by both
local and imported products. The strong economic growth in the late 80's and early
90's contributed to major changes in consumer purchases and consumption patterns.
31
Malaysians living in urban areas are relatively brand conscious, and they prefer to
shop in stores, which offer them convenience and good product selections.
Other than that, the halal industry in Malaysia also provides immense opportunities
for Malaysian manufacturers. It was estimated that the potential value of the halal
food industry range between USD600 billion and USD2.1 trillion. The concept of
halal is associated with food products which are of high quality in terms of
cleanliness, sanitation and compliance with religious requirements.
5.1.3 Development of the Industry
The issues that rises when talking about the food and beverage industry will definitely
not go further away.Some of the issues that are currently happening includes; oil price
which is unlikely to fall, pressures to be environmentally friendly will grow, health
and nutrition remain as a priority, low cost economies offering cheaper production
opportunities will dissapear, and consumers will not lose their taste nor variety and
also great value. The growing usage of alternative channels such as the Internet helps
in leading the growth in direct to consumer sales by food suppliers. Even better, we
shall see a greater regulation to control salt,sugar and fat content by governments
obsessed with the long-term economic consequences of the current public health
issues.
Malaysia’s food industry is as diverse as the multi-cultures of Malaysia, with a wide
range of processed food with Asian tastes.It is estimated that the present global retail
sales in food products are worth around US$3.5 trillion, and are expected to grow at
an annual rate of 4.8 per cent to US$6.4 trillion by 2020.
Lifestyle changes have led to an increase in the demand for convenience food and
health food. In Malaysia, the food industry is dominated by small and medium scale
companies. The major sub-sectors are the fish and fish products, livestock and
livestock products, fruits, vegetables and cocoa.In line with the emphasis on the
agriculture sector, the processed food and beverages industry had become an
important component of the agro-based industry.Employment in the processed food
and beverages industry decreased in 2009 by 5.1% to 43,080 compared with 45,418 in
2008. Labor cost for the industry remained competitive, as its Unit Labor Cost
32
decreased by 8.2%, reflecting an efficient utilization and management of resources.
Small and medium sized enterprises represent more than 80% of the total number of
establishments in the processed food segment. Malaysia is also one of the world
major producers of spices.
It is clear that the next 5 years will present an increasingly complex set of issues and
challenges for the food and beverage industry to resolve.The ability of individual
businesses to identify relevant challenges and opportunities, develop and appropriate
responses to execute effectively will be critical to their short term and long term
success. Doing the right thing, and being seen to do the right thing will be considered
core to brand relevance, and ultimately business success across the industry.
5.2 The Marketplace
5.2.1 Current Condition of the Marketplace
The marketplace for cupcake products are categorized under the dessert market which
is one of the subdivisions of the food and beverage industry. In cultures around the
world, dessert is a course that typically comes at the end of a meal, usually consisting
of sweet food.Cupcakes are the same category as cakes except that cupcake is a small
cake designed to serve one person, frequently baked in a small, thin paper or
aluminum cup. As with larger cakes, frosting and other cake decorations, such as
sprinkles, are common on cupcakes.
Internationally,there are a handful of big-name players within the cupcake industry
.Their cupcake obsession will continue as they embark upon ambitious expansion
plans. Growth within the cake decoration stores industry is expected to slow to 3.7
percent annually over the next five years, according to an October 2011 report from
research firm IBISWorld. This forecast represents a dip from the 4.9 percent growth
that the industry was predicted to have enjoyed during the past five years. In
Malaysia, the dessert market has risen in significance to the overall food market,
rising from 0.9% in 1994, to 1.4% by 1999 and continued to
grow in 2000.
33
5.2.2 Changes in Marketplace
The dessert market for cupcake products are growing progressively in Malaysia.
Cupcake cafes are considered a trend nowadays to the consumers. Given the strong
growth potential in the cupcake industry, the valuation of profit seemed reasonable.
The sales of cupcake products may face a number of challenges as well.
In recent years, volatile commodity prices for flour, sugar and milk have dented
bakery profits. This year, egg prices are expected to increase 2.9%, while sugar prices
are expected to increase 6.4 % and milk 1.6%, the USDA forecasts.
Consumers are also becoming more health conscious, moving away from sweets
while bakeries are experiencing stiffer competition from grocery stores and mass
merchandisers that sell baked goods at a lower price. But the biggest challenge for the
cupcake may also be the key to its current success. It depends on the trend of
cupcakes and if it will remain popular with consumers because it is unpredictable as
the trend could easily change.Food trends change often in the food and beverage
industry.
34
Chapter 6 – Competitive Situation
__________________________________________________
6.1. Direct Competitors
6.1.1 Wondermilk Cuppacakes
Wondermilk Cuppcakes was established in May 2006 by 6 cupcake lovers who came
together to devote their time and attention to the art of cupcake making and
decorating. They are the sister company to Wondermilk. They have 3 outlets located
at Publika, Citta Mall and Damansara Uptown. Cuppacakes are known for their fine
and exquisite cupcake creations. They are defined by their attention to details of
cupcakes including the colours,flavours,ingredients and their cupcake design. Their
outlet is a café-style concept with urban and young aesthetics in mind. Their products
include cupcakes, cookies and cakes, which are suitable for special celebrations and
equally delectable for any other ocassions.
Type: Cake
Price Range: RM 4.50 (per cupcake), RM25.00 (½ dozen cupcakes)
Strengths:
• Very detailed in terms of cupcake design
• Cupcakes can be customized by consumers according to their desired preference.
Product Range: cupcakes, cakes, cookies
Positioning: Cuppacakes produces fine & exquisite cupcake creations with a creative
approach to cupcake design.
35
6.1.2 Bisou Bake Shop
Bisou Bake Shop was founded in June, 2007. The company’s sister eateries include
Bijou and Bianco. Their outlets are located at Bangsar Village and KLCC.
Bisou Bake Shop is pretty in its decor, primarily white with dark chocolate and pink
accents that echo the rich chocolate in the cakes they serve. Taking up the space
formerly occupied by Vanilla Box, Bisou Bake Shop’s café has several good things
going for it: a varied menu, a well-thought-out design scheme and the enviable status
of being the only café on the street. At Bisou Bake Shop, their objective is putting a
sophisticated swirl on a nostalgic favourites. Sporting a selection of homestyle
cupcakes, cakes and cookies, there is something to suit every plate. With 13 cupcake
flavours everyday, cupcake lovers are spoilt for choice at Bisou Bake Shop.
Type: Cake
Price Range: RM 5.00 (per cupcake), RM30.00 (½ dozen cupcakes)
Strengths:
• Varieties in menu; cupcakes, cakes, cookies, healthy salads, daily soups, freshly
cut sandwiches made from homemade bread.
• Strong concept of the outlet
Product Range: cupcakes, cakes, cookies, healthy salads, daily soups, freshly cut
sandwiches made from homemade bread.
Positioning: Bisou Bake Shop Bisou looks set to claim its place as Asian Heritage
Row's hot spot with the best tasting treats.
36
6.2 Indirect Competitors
6.2.1 Famous Amos
Famous Amos was established in Malaysia as a private limited company under the
Companies Act, 1965 on 9 November 1983. They are the franchise holder of "THE
FAMOUS AMOS C.C.C.C.(M) SDN BHD" in Malaysia. The first Hot-baked store of
Famous Amos was opened in Sungei Wang Plaza and was officiated by the founder
himself, Wally Amos on November 30, 1984. Today, it operates over 60 successful
Hot-baked stores in shopping malls and airports in Malaysia. Currently, there are nine
varieties of chocolate chip cookies which are freshly baked throughout the day in each
of their store. By using the best ingredients, like semi-sweet chocolate chips and
flavorful nuts, their homemade tasting cookies became famous just by word of mouth.
The "Free Smell" from their baked store has been an irresistible aroma of their freshly
baked cookies to be enjoyed by true cookie lovers everywhere. Other than cookies,
they also introduced freshly baked soft cookies,muffins, brownies, chococolate and
also confectionery pick and mix which are complimentary products commonly found
in Famous Amos outlets. Readily packed and customized gifts hampers are also
available at their outlets.
Type: Confectionary
37
6.2.2 Secret Recipe
Secret Recipe, founded in 1997, made its mark,renowned for its extensive range of
fine quality gourmet cakes and fusion foods. Their outlet concept is a lifestyle café
chain. Secret Recipe has successfully established its brand name in Malaysia,
Singapore, Indonesia, Thailand, China and Philippines by virtue of their quality cakes,
and fusion food. Secret Recipe is one of the leading and largest café chain in
Malaysia, with Halal certification awarded by Jabatan Kemajuan Islam Malaysia
(JAKIM). There are more than 20 types of fusion food, 40 cake creations and pastries,
with a flavourful range of ice cream and beverages offered in all Secret Recipe
outlets.
Type: Snacks
38
Chapter 7 – SWOT Analysis
__________________________________________________
7.1 Strengths
• Offers 24 cupcake flavors,custom cupcakes and assorted arrangements.
• New cupcake flavours are invented during special holiday festives/season.
• First cupcake bakery (cupcakery) in Malaysia
• High quality cupcakes by using fresh dairy products and ingredients.
• Central Kitchen bakes and delivers to franchised outlets, keeping quality
consistent.
• Commitment in innovation in the areas of menu,store design and customer
engagement.
• First to produce large-sized cupcakes
• Available through online ordering and Cupcake Chic Ocassions (weddings,
birthdays, corporate events etc.)
7.2 Weaknesses
• Outlets are not available in many states. Only focuses in Selangor area.
• Consumers perception in terms of pricing (expensive)
• Lack of advertising and promotion
• Only delivers to Penang, Johor, Wilayah Persekutuan and Selangor for online
orders.
39
7.3 Opportunities
• Demands from other areas that will help the brand expand
nationally/internationally.
• Birthdays, weddings, corporate event etc. celebrations
• Sponsoring campaigns to increase brand awareness.
7.4 Threats
• Competition from other brands.
• Maintaining the taste and originality of cupcakes requires fresh and costly
ingredients.
• People’s perception that cupcakes are bad for health and contain a lot amount
of sugar.
• Food trend changes often.
40
Chapter 8 – Strategic Target Audience
__________________________________________________
8.1 Proposed Target Audience (Primary)
8.1.1 Demographics
a) Age
18-25 years old
b) Gender
Female
c) Education
College and universities
d) Occupation
Students, white collar workers.
e) Income Range
-Student’s allowance (RM 100-RM500)
-White collar workers income (RM1500- RM3000)
f) Race & Ethnicity
All races and ethnicity
g) Geographical Location
Urban and sub-urban areas
41
8.1.2 Psychographics
a) Perception
• Loves spending time with friends and families while enjoying a dessert that is
delicious.
b) Learning
• Influences from both digital and social media such as Facebook, Twitter, online
blog reviews, online promotion deals and websites.
• Recommendation by families and friends.
c) Motivation & Needs
• Loves to experiment different new types of food/flavour.
• Follows the food trend.
d) Attitude & Personality
• Hardworking, Focused.
• Outgoing, Sociable
e) Lifestyle
• Enjoys having quality time with friends/colleagues, families.
• Active life routine and may experience a stressful study/work life but knows how
to deal with it.
• Loves attending various type of events (birthdays, small gathering, celebrations
etc.)
42
8.2 Proposed Target Audience (Secondary)
8.2.1 Demographics
a) Age
30-40 years old
b) Gender
Male and female
c) Occupation
White collar workers, professionals
d) Income Range
-White collar workers income (RM1500- RM3000)
-Professionals income (RM4000- RM7000)
e) Race & Ethnicity
All races and ethnicity
f) Geographical Location
Urban areas and sub-urban
43
8.2.2 Psychographics
a) Perception
• Enjoy having dessert treat by themselves or accompanied by others.
b) Learning
• Influences from both digital and social media such as Facebook, Twitter, online
blog reviews, online promotion deals and websites.
• Reviews from print ads in magazine,newspaper etc.
• Recommendation by colleagues,friends.
c) Motivation & Needs
• Ways of releasing stress from hard work.
• Trying new types of flavours/food for own’s satisfaction.
d) Attitude & Personality
• Outgoing,Sociable
• Hardworking,Focused
e) Lifestyle
• Active life routine and may experienced stressful moments due to working life but
knows how to deal with it.
• Attend various events such as weddings, corporate events, birthdays etc.
• Enjoy having quality time with friends and families.
44
Chapter 9 – Market Observation
__________________________________________________
9.1 Marketplace Research
9.1.1 Outlet Visit
I took the opportunity of visiting Cupcake Chic’s outlet at The Curve, Damansara to
collect more information about their company. The information such as type of
cupcakes, variety of flavours, packaging and servings, the surrounding feeling and
ambience of the outlet environment has been observed attentively to study the concept
that Cupcake Chic potrayed to their consumers.
Figure 14: Cupcake Chic, The Curve
9.1.2 Outlet Concept
The outlet of Cupcake Chic at The Curve, Damansara is the main outlet owned by the
franchisor/founder of the company, Joanne Ho. The outlet is located at a strategic
location which is one of the shop’s front lots at the Ground Floor of The Curve. Their
café outlet is 750 – 900 square feet, that builds a suitable place for customers to dine-
in,take-away and also do event functions. From what I’ve observed, Cupcake Chic ‘s
customers buy their products when they are in the situation of going back home, and
also about to go shopping inside the shopping mall. There are also customers who
45
prefers finding their personal space at the outlet and also groups of people connecting
with each other while having their own quality time at the outlet.
9.1.3 Product Observation
The products of Cupcake Chic were displayed behind a transparent glass in a
horizontal position. The cupcakes each has their flavours labelled in front of them as
well as the description of the flavour which makes it easy for customers to choose.
According to the menu, there are a total of 24 cupcake flavours with a combination of
12 cupcake flavours that changes daily.
Figure 15: The cupcakes display
Figure 16: Cupcake serving/packaging
46
The cupcake serving depends on the quantity of how much cupcake that you are
buying. As for dine-in, the cupcake will be served on a plate together with a tissue
and a teaspoon. For takeaways, the cupcakes will be placed in a box package
according to the suitable size for the total cupcakes quantity. The packaging design of
the box includes Cupcake Chic’s logo and also their brand’s sticker.
9.2 Market Observation
A market observation was done at the outlet in order to find out the number of
customers that purchase Cupcake Chic’s products in a day between 11am to 7pm.
There are many categories of customers including children, teenagers, families and
also professional workers.
Time 11am – 1 pm 1pm – 3pm 3pm – 5pm 5pm – 7pm No. of Customers visited
10
21
16
24
9.3 Online Survey
An online survey was conducted between 17th July 2012 – 22nd July 2012 with a set
of 20 questions which were put to a survey panel with four categories altogether. The
survey received a total of 150 respondents.
47
9.3.1 Survey Results Part 1: Consumer Profile
39%
61%
Question 1: What is your gender?
Male Female
60% 22%
14%
4%
Question 2: What is your age group?
Malay
Chinese
Indian
Other
48
60% 22%
14%
4%
Question 3: What is your race?
Malay
Chinese
Indian
Other
38%
28%
22%
9%
RM100 -‐ RM500
RM 500 -‐ RM1500
RM1500 -‐ RM 3000
RM3000 and above
Question 4: What is your income/salary?
49
15%
85%
Question 5: Where do you live?
Outside Selangor & Kuala Lumpur
Within Selangor & Kuala Lumpur
50
Part 2: General understanding of cupcakes
Question 7 studies the total percentage of how often consumers eat cupcakes. 31% respondents eat cupcakes once every few months. 25% each for consumers who eat cupcakes several times in a month and once a month. 11% and 5% consumes it several times in a week and once a week respectively.
64%
36%
Question 6: Are you a fan of cupcake?
Yes
No
5%
11%
25%
25%
31%
Once a week
Several times in a week
Once a month
Several times in a month
Once every few months
Question 7: How often do you eat cupcake(s)?
51
Question 8 studies the percentage of which cupcake brand does consumers prefer to eat. The most favourite brand among the respondents is Cupcake Chic with 40% - this shows that the brand is quite well known. The second most favoured brand is Wondermilk with 29%. Other brands which is not stated received 10% whereby 10% and 6% is Cupcake Dazzle and Biso Bake Shop respectively.
40%
29%
6%
3%
10%
12%
Question 8: What is your favourite cupcake brand?
Cupcake Chic
Wondermilk
Bisou Bake Shop
A Taste Boutique
Cupcake Dazzle
Other
52
Question 9 investigates the factors that consumers take into consideration before buying certain cupcakes.Flavours received the highest percentage with 26%.Price range and cupcake design both received 20% each as one of the factors that makes consumers buy cupcakes. Other factors include attractiveness of packaging (11%), brand (11%), ingredients used(10%) and 2% for factors that are not included in the answer selections.
2%
26%
20%
10%
20%
11%
11%
Question 9: What will be the factors that will make
you by certain cupcakes?
Other
Flavours
Price range
Ingredients used
Cupcake design
Attractiveness of packaging
Brand
53
Question 10 shows the percentage of ocassions that consumers buy cupcakes for. The highest ocassion received 33% which is for consumers themselves. This explains that they like to treat themselves with a dessert treat once in a while. Another ocassion received the second highest percentage (22%) which is the ocassion for birthdays. Other ocassions include party snacks (18%), surprise for a special person(15%),wedding gifts(10%) and another 2% for ocassions that are not stated in the list.
22%
10%
33%
18%
15%
2%
Question 10: What occasions do you buy cupcakes
for?
Birthday present
Wedding gifts
For myself
Party snacks
Suprise for special person
Other
54
Question 11 studies the cupcake flavours most favoured by consumers. The total percentage is more than 100% due to the selection of favoured flavours varied by consumers themselves. It is shown that chocolate flavour received the highest percentage of 55%, followed by 49% for vanilla and 35% for red velvet. Other flavours include fruit-based flavours (27%), coffee(13%) and other flavours that are not listed (5%).
5%
55%
27%
35%
13%
49%
Other
Chocolate
Fruit-‐based
Red velvet
Coffee
Vanilla
Question 11: What is your favourite cupcake Klavour?
55
Part 3: Cupcake Chic Brand’s Awareness
Based on Question 12 and 13, 60% respondents have heard of Cupcake Chic and 40% do not know about the brand. According to the percentage, 30% have heard it through digital media – which shows Cupcake Chic’s efforts of online promotions. 25% respondents have heard of Cupcake Chic through recommendation from friends/family and 24% have never heard of the brand. Other than that, 15% and 6% have heard of Cupcake Chic through print media and other sources respectively.
60%
40%
Question 12: Have you heard of Cupcake Chic?
Yes
No
15%
30%
25%
24%
6%
Question 13: If so, how did you hear about it?
Print media (magazines,newspapers etc.)
Digital media ( social network, online ads, blog reviews etc.)
Recommendation from friends/family
Never heard of it
Other
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Question 14 shows the percentage of description for Cupcake Chic’s products by consumers. The percentage is more than 100% due to consumers choosing more than 1 selection for the answer. It is stated that consumers perception of the products are delicious (30%),expensive(28%)and also having nice design (27%). Other descriptions include the attractive packaging of the products(23%), popular brand (21%), cheap (2%),and 15% have no clue about the products. Another 2% is for the descriptions that are not listed in the answer selections.
2%
30%
23%
2%
27%
21%
15%
28%
Other
Delicious
Attractive packaging
Cheap
Nice design
Popular
I have no clue
Expensive
Question 14: How would you describe the products of
Cupcake Chic?
57
Question 15 analyzes the percentage of dissatisfactions for Cupcake Chic’s products by consumers. The percentage is more than 100% due to consumers choosing more than 1 selection for the answer. It is shown that majorites of consumers are not satisfies with the price range (48%) and also the promotion of Cupcake Chic (41%). Other than that, the dissatisfactions faced by consumers are, less nutrition (18%),flavours/taste (15%), and cupcake design (14%). As for packaging design and other dissatisfactions that are not stated in the answers both received 8% each.
8%
8%
15%
14%
41%
18%
48%
Other
Packaging
Flavours / Taste
Cupcake design
Promotion
Nutrition
Price range
Question 15: What are your main dissatisfactions of
Cupcake Chic?
58
Question 16 investigates whether consumers have heard of Cupcake Chic’s latest products, the Livin’ Large Cupcake. Majorities of consumers answered No(68%) and only 32% answered Yes. Based on Question 17, it is shown that the improvements that consumers want to see are advertising and promotion of Cupcake Chic (65%) and also the expand the number of outlets (46%). Other than that, consumers would like to see improvement on cupcake flavours (27%) and the packaging design (13%).
32%
68%
Question 16: Have you heard of Livin' Large Cupcakes by Cupcake Chic?
Yes
No
65%
27%
46%
13%
Advertisement & Promotion
More `lavours No. of outlets Packaging design
Question 17: If given opportunity, which part of Cupcake Chic do you want to see
improvement on?
59
Question 18 and 19 analyzes the percentage of familiar and unfamiliar customers of Cupcake Chic. 70% familiar customers answered Yes(70%) to return for more Cupcake Chic products while 30% said No. As for unfamiliar customers, 81% said that they would like to try Cupcake Chic products and only 19% said no. This shows that Cupcake Chic is considered as a trusted brand by consumers that will still want to buy or try out their products.
70%
30%
Question 18: From your experience, will you return for more Cupcake Chic products?
(Familiar customers)
Yes
No
81%
19%
Question 19: Based from this, would you try Cupcake Chic products? (Unfamiliar customers)
Yes
No
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Part 4: Lifestyle Review
According to Question 20, 70% consumers disagreed that the choice of cupcake brand
reflects their lifestyle whereby 30% agreed for the statement. This explains that
majorities of consumers lifestyle when it comes to eating dessert does not depend on
the brand itself but also to their choice of flavours and taste of the products.
9.3.2 Survey Conclusion
From the results of the survey, it is shown that the brand awareness of Cupcake Chic
is still not up to the high level of expectation. Majorities of consumers have
dissatisfation with the price range of the products. Other than that, consumers prefer
Cupcake Chic to improve more on advertising and promotion as well as expand the
number of outlets to other areas outside Selangor. On the good side, a lot of
consumers chooses flavours as the highest factor of whay they buy cupcakes. This
gives Cupcake Chic an opportunity to draw customers attention through their
unfailing promise of varities through cupcake flavours. Promotion for their products
have to be enhanced in order to expand Cupcake Chic as the leading cupcake products
in the future.
30%
70%
Yes
No
Question 20: Does the choice of cupcake brand
reKlects your lifestyle?
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9.4 Interview
The interview was done through in person dialogue. I had the opportunity to interview
the Product Innovation Chief, Swee San at Cupcake Chic’s booth during the
Franchise International Malaysia Exhibition on the 8th July 2012. I also did an
informational interviewing with Cupcake Chic’s founder, Joanne Ho through e-mail.
Franchise [email protected]
Jul 26 (6 days ago)
to me
Dear Amira Fateha, Thank you for dropping by the Cupcake Chic booth during the Franchise International Malaysia expo a couple weekends ago. Listed below is our company history as you have requested. Cupcake Chic is Malaysia's first premier cupcake specialist bakery, also known as a cupcakery, established in January 2008.We are bringing the popularity of the retail cupcake industry (worth US$6 billion in the US and growing at +35% year on year) from the USA to Malaysia and other parts of Asia Pacific. Our outlets have shown strong double digit growth since 2008 and it is largely due to the versatility of cupcakes. It's not just a dessert like ice cream and donuts to be enjoyed impulsively or with friends/family but perfect also for celebrations large or small such as weddings, corporate events, birthday parties, baby full moon, etc. (we call this Cupcake Chic Occasions). A franchisee profits not only from their retail outlet but from special occasions as well as online sales. This is what makes our franchise opportunity unique. We are not just about cupcakes alone. We are constantly innovating our menu to include macarons, giant-sized cupcakes, biscottis, gourmet espresso coffee as well as cookies, brownies and a breakfast/lunch/dinner menu soon to be launched - all to clearly position the brand as the place and way to celebrate life.We have 3 franchise investment packages. They are Compatto, Medio and Famiglia (each meaning Compact size, Medium size and Family size). The attachment gives a brief explanation of each store type. All a franchisee does is open shop and provide the best customer service to grow your business. Thank you for your interest in our company for your final year project. Best regards, Joanne Ho Managing Director Cupcake Chic Sdn Bhd Email: [email protected] www.cupcakechic.com.my No. 5-1, Jalan PJU 1/3B, Sunwaymas Commercial Centre, 47301, Petaling Jaya, Selangor, Malaysia Tel: +6 03 7886 3006 Fax: +6 03 7880 0962
62
Chapter 10 – Precedent Studies
__________________________________________________
10.1 Advertising Strategy The advertising strategy by Cupcake Chic involved a lot of offers through online
deals and promotion. They often included their latest news, upcoming events and
latest promotion which can be found in their official website and also their Facebook
fanpage which is updated regularly. Their customer database has over 5,000 on email
and also 75,000 on Facebook accurately up to this date.
Figure 17: Promotions for new limited edition flavours
73
Chapter 11 – References __________________________________________________
1. Cupcake Chic. (2010). Cupcake Chic. Retrieved from http://www.cupcakechic.com.my/new/
2. Cupcake Chic Facebook fanpage. (2009) Retrieved from http://www.facebook.com/CupcakeChic
3. Cupcake Chic Twitter page. (2009) Retrieved from http://twitter.com/thecupcakechic
4. The Star Online. (2009) Food banks - How it works?. Retrieved from
http://thestar.com.my/lifestyle/story.asp?file=%2F2009%2F12%2F20%2Flifefocus%2F5321812&sec=lifefocus
5. Trip Advisor. (ND). Cupcake Chic review. Retrieved from
http://www.tripadvisor.com.my/Restaurant_Review-g298313-d1082725-Reviews-Cupcake_Chic-Petaling_Jaya_Petaling_District_Selangor.html
6. Red Card. (2012). Red Card promotion (Cupcake Chic). Retrieved from
http://redcard.my/restaurant/Cupcake-Chic.php
7. Freda Liu. (2010). Cupcake Chic Interview with BFM89.9. Retrieved from http://bfm.my/assets/files/Open%20For%20Business/2010_01_21_OpenForBusiness_CupcakeChic.mp3
8. Nazirah Ashari. (2011). Bernama Interview - CEO Trivia with Joanne Ho of
Cupcake Chic. Retrieved from http://www.youtube.com/watch?v=l8mUjLzfZdI
9. Ezreena Yahya. (2010). Wedding Guide Asia - Themed Cupcakes from
Cupcake Chic! . Retrieved from http://www.weddingguideasia.com/wed/themed-cupcakes-from-cupcake-chic/
10. Dorothy Fong. (2010). Cupcake Chic New Website. Retrieved from
http://www.idotyou.com/news/cupcake-chic-new-website/
11. S. Nearby. (2012). Demographics of the cupcake bakery. Retrieved from http://sg.shownearby.com/place/The-Cupcake-Bakery/322654/demographics
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12. Katie Utken. (2012). Movement from cakes to cupcakes. Retrieved from http://hilite.org/archives/22130
13. Paula Pant. (2012). The Icing on the Cupcake. Retrieved from
http://beta.fool.com/paulapant/2012/03/26/icing-cupcake/3115/
14. PRWEB. (2011). Sugar Rush. Retrieved from http://www.prweb.com/releases/2011/10/prweb8885470.htm
15. MIDA. (2012). Industries in Malaysia. Retrieved from
http://www.mida.gov.my/env3/index.php?page=food-industries
16. Emma Gem. (2008). Malaysia’s Cupcakes Directory. Retrieved from http://www2.emmagem.com/2008/04/08/malaysias-online-cupcake-store-directory/
17. Market Watch 2012. Retrieved from
http://www.malaysia.ahk.de/fileadmin/ahk_malaysia/Market_reports/The_Malaysian_Food_Industry.pdf
18. Famous Amos. Retrieved from
http://www.famousamos.com.my/
19. Wondermilk Cuppcakes. Retrieved from http://www.ilovecuppacakes.com/
20. Bisou Bake Shop. Retrieved from http://www.bisou.com.my/
21. Secret Recipe. Retrieved from http://www.secretrecipe.com.my/
22. Food Promotions. (2010). Cupcake Chic Buy 5 free 1. Retrieved from http://www.foodpromotions.com.my/2010/03/cupcake-chic-buy-5-free-1-buy-9-free-3.html
23. Groupsmore. (2010). 50% off Share 1/2 dozen. Retrieved from
http://www.groupsmore.com/cities/selangor/deals/cupcake-chic
24. Groupon. . (2010). 50% off Share 1/2 dozen. Retrieved from http://www.groupon.my/deals/klang-valley-selangor/groupon-my/715890337
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Chapter 12 – Appendices __________________________________________________ 12.1 Survey Questions Part 1: Consumer Profile 1. What is your gender?
• Female • Male
2. What is your age group?
• 12-17 • 18-23 • 24-29 • 30 and above
3. What is your race?
• Malay • Chinese • Indian • Other: _____________
4. What is your income/salary?
• RM100 - RM500 • RM 500 - RM1500 • RM1500 - RM 3000 • RM3000 and above
5. Where do you live?
• Within Selangor & Kuala Lumpur • Outside Selangor & Kuala Lumpur
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Part 2: General understanding of cupcakes 6. Are you a fan of cupcake?
• Yes • No
7. How often do you eat cupcake?
• Once in a week • Several times in a week • Once a month • Several times in a month • Once every few months
8. What is your favourite cupcake brand? (You can select more than 1 answer)
• Cupcake Chic • Wondermilk • Bisou Bake Shop • A Taste Boutique • Cupcake Dazzle • Other: _____________
9. What would be the factors that will make you buy certain cupcakes? (You can select more than 1 answer)
• Brand • Flavours • Price range • Ingredients used • Cupcake design • Attractiveness of packaging • Other: _____________
10. What ocassions do you buy cupcakes for? (You can select more than 1 answer)
• Birthday present • Wedding gifts • For myself • Party snacks • Suprise for boyfriend / girlfriend • Other: _____________
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11. What is your favourite cupcake flavour? (You can select more than 1 answer)
• Vanilla • Chocolate • Fruit-based • Red velvet • Coffee • Other: _____________
Part 3: Cupcake Chic Brand’s Awareness 12. Have you heard of Cupcake Chic before?
• Yes • No
13. How did you hear about it? (You can select more than 1 answer)
• Print media (magazines,newspapers etc.) • Digital media ( social network, online ads, blog reviews etc.) • Recommendation from friends/family • Never heard of it • Other: _____________
14. How would you describe products by Cupcake Chic? (You can select more than 1 answer)
• Expensive • Delicious • Attractive packaging • Cheap • Nice design • Popular • I have no clue • Other: _____________
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15. What are your main dissatisfactions about Cupcake Chic? (You can select more than 1 answer)
• Price range • Packaging • Flavours / Taste • Cupcake design • Promotion • Nutrition • Other: _____________
16. Have you heard of Livin' Large Cupcakes by Cupcake Chic?
• Yes • No
17. If given opportunity, which part of Cupcake Chic do you want to see improvement on? (You can select more than 1 answer)
• Advertisement & Promotion • More flavours • No. of outlets • Packaging design
18. From your experience, will you return for more Cupcake Chic products? (Familiar customers)
• Yes • No
19. Based from this, would you try Cupcake Chic products? (unfamiliar customers)
• Yes • No
Part 4: Lifestyle Review 20. Does the choice of cupcake reflects your lifestyle?
• Yes • No
TABLE OF CONTENTS No. Title Page
1 Chapter 1: Project Overview 1 1.1 Introduction 1 1.2 Problem Statement and Issue 2 1.3 Objectives and Aim 2 2 Chapter 2: Project Profile 3 2.1 Product Name 3 2.2 Product Classification 3 2.3 Product Characteristics 3 2.4 Product Range 5 2.5 Distribution 11 2.6 Product Life Cycle 12 2.7 The Brand 12 2.8 Brand Image and Implication 13 2.9 Strength and Weakness 13 2.10 Advantages and Disadvantges 14 2.11 Unique Selling Proposition (USP) 14 2.12 Promotional History and Advertising Schedule 14 2.13 Positioning Statement 18 3 Chapter 3: The Company 19 3.1 Company Overview 19 3.2 Business Description 19 3.3 Company History 20 3.4 Key People 21 3.5 Location and Subsidaries 21 3.6 Brand, Major Products and Services 22 3.7 Corporate Vision 23 3.8 Corporate Mission 23 3.9 Company’s Current Promotional Strategy 23 3.10 Product Sales History 24 3.11 Current Marketing Objectiv 24 3.12 Media Expenditure 25 4 Chapter 4: Consumers and Stakeholders 26 4.1 Current Consumer’s Characteristics 26 4.1.1 Demographics 26 4.1.2 Psychographics 27 4.2 Stakeholder’s Characteristics 28 4.2.1 Primary 28 4.2.2 Secondary 28
No. Title Page 5 Chapter 5: The Industry and Marketplace 30 5.1 The Industry 30 5.1.1 Definition of the Industry 30 5.1.2 Shape of the Industry 30 5.1.3 Development of the Industry 31 5.2 The Marketplace 32 5.2.1 Current Condition of the Marketplace 32 5.2.2 Changes in Marketplace 33 6 Chapter 6: Competitive Situation 34 6.1 Direct Competitors 34 6.1.1 Wondermilk Cuppacakes 34 6.1.2 Bisou Bake Shop 35 6.2 Indirect Competitors 36 6.2.1 Famous Amos 36 6.2.2 Secret Recipe 37 7 Chapter 7: SWOT Analysis 38 7.1 Strengths 38 7.2 Weaknesses 38 7.3 Opportunities 39 7.4 Threats 39 8 Chapter 8: Strategic Target Audience 40 8.1 Proposed Target Audience (Primary) 40 8.1.1 Demographics 40 8.1.2 Psychographics 41 8.2 Proposed Target Audience (Secondary) 42 8.2.1 Demographics 42 8.2.2 Psychographics 43 9 Chapter 9: Market Observation 44 9.1 Marketplace Research 44 9.1.1 Outlet Visit 44 9.1.2 Outlet Concept 44 9.1.3 Product Observation 45 9.2 Market Observation 46 9.3 Online Survey 46 9.3.1 Survey Results 47 9.3.2 Survey Conclusion 60 9.4 Interview 61