1 Introduction

A blend oI coIIee and conversation never seemed to amaze the customers who go to Old
Town White CoIIee. Famous Ior its white coIIee, the coIIee chain started business in 1999 under the
name oI White CaIe`.
Rapid developments have seen the business expand into exporting homemade white coIIee
to neighbouring countries alongside expanding the product line. Not to mention the Iact that the
coIIee chain has shops literally all over Malaysia, more precisely Kuala Lumpur, Pahang, Perak,
Penang, Sabah and Sarawak
The level oI expansion has been equally matched with anticipating quality required by the
customers oI the business. From the simple but unique taste oI the coIIee - to the Iree WIFI in each
store shows promise oI delivering to customers graciously.
Our assignment is based on an Old Town outlet situated in Taman Connaught, Cheras.
Established in 2007, the location Ior this outlet was seen ideal as there was an educational institution,
UCSI, nearby. From the inception the response has been immense Irom the students, Iamilies and
workers. With the interior designed to provide a soothing serene atmosphere, the caIe is situated in a
small shop lot.
We managed to interview the outlet manager to shed light on key areas oI the outlet:
marketing environment, SWOT, STP, marketing mix and actions and analysis.

1 - Macro environment

Looking at the customer segmentation Ior this speciIic outlet, a whopping 80
consists oI Chinese the rest being Malay and Indians |Annex I|. The year 2008 saw all outlets
oI Old Town White CoIIee comply with Halal` in order to cater to the largest community
the Malays.
Nowadays it`s the trend to see mostly younger generation`s spending time in coIIee
shops either conversing with Iriends or working on school work or even simply browsing the
internet with their computers, with a cup oI coIIee by their side oI course. This is the scenario
in this OTWC shop as well. The customer base also includes employees Irom the business
community situated around the store.
The distinguished uniqueness oI the Iood oIIered at Old Town White CoIIee shops
diIIerentiates them with other Food & Beverage chains in Malaysia. Very good examples
would be KFC, McDonalds and Secret Recipe. All oI them are considered as competitors
although the menu`s oIIered are vastly diIIerent Irom that oIIered by Old Town White CoIIee
which comprises mainly oI local Ioods at reasonable prices compared to the menu oIIered by
the previously mentioned chains.
At a time where technology is overtaking almost all aspects oI business, Old Town
White CoIIee has also welcomed changes in this area. A key example is the touch screen
system used Ior sending orders to the kitchen, and POS system Ior the payment.
- Micro environment

The Iactors inIluencing the business include the suppliers, marketing intermediaries,
customer markets, competitors, and publics. These Iactors directly aIIect the Old Town White
CoIIee perIormances and the decision making.
Mission

'To let everyone enfoy every sip of authentic Malaysian Ipoh White Coffee, anytime,
anywhere`

'ision

Old Town White CoIIee vision is mostly highlighted to promote their unique Taste
and to deliver their best.
(Old town white coIIee)
O 'To promote our unique Malaysian Taste the authentic Ipoh White Coffee and
Continue White Coffee Legacy through continuous improvement and innovation that
exceeds customers expectation`
O 'As Market Leader, we take pride in distinguishing ourselves to be ahead of the pack.
By setting precedence, we have made a standard that equals excellence, pushing other
brands to do the same`
O 'We strive for continuous improvement, incorporate innovations and technology in
our commitment to create customer value in our both products and services`
O 'Aligned with transparent policies and achievable targets, together with our core
values, we are able to move forward as one responsive team and deliver our best``
$% analysis

A SWOT analysis helps in analysing a business in regard to decision making. The
chieI strength we uncovered is the undeniable brand loyalty among the customers. Due to the
diIIerentiated menu oIIered in OTWC chains, we`ve Iound out that customers speciIically
come to the shop Ior speciIic dishes, unoIIered in other Iood chains.
The next biggest strength is the competitive prices oIIered in terms oI the quality oI
Iood being oIIered. Customers deem OTWC delicacies well aIIordable, healthy and delicious.
The most comparable example would be Starbucks CoIIee. Even though OTWC and
Starbucks have diIIerentiated coIIee product lines, both oIIer quality coIIee but at two
diIIerent level oI prices.
eaknesses
Two weaknesses exposed include the lack oI customization on the choice oI Iood and the
language barriers Iaced by staII in communicating to customers. Customers have raised their views
on customization oI certain menu items as to their preIerence, but due to the Iixed computerized
system and pricing, the shop has been unable to deal with this yet.

With regard to the latter issue, most oI Ioreign workers hired by OTWC are Ioreigners and
thus lack good communicational skills. This could be improved by giving customized language
training programs.
55ortunities
Opportunities Ior the company include the expansion oI our coIIee retailing beyond the
current scope and the very obvious Iact oI expanding the number oI OTWC shops locally and
regionally.
%reats
Considering the threats to the outlet, a signiIicant threat was uncovered. The outlet is located
near a lot where a big night market is held every Wednesday. Thus potential customers choose to
dine at the market rather than at the shop.
Other threats include the lack oI proIessionalism amongst the staII. This has the potential to
kill oII customer approval ratings Ior the shop. Furthermore, hiring international workers are
gathering negative interest Irom local potential workers looking Ior jobs.
Com5any`s $%!
When marketers want to designs customer-driven marketing strategies, they must Iirst decide
who it will serve. Through market segmentation, a business can Iocus on the particular market
segment which in turn would help in catering to their speciIic needs. Market targeting reIers to the
segment a business decides to cater to. In this step, marketers will evaluate the market segment`s
attractiveness, segment size and growth, and company objective and resources in order to gain
advantages over competitors.


Market $egmentation & %arget Market
In Malaysia, there are three major ethnicities; Malay, Chinese, and Indian. The Old Town
White CoIIee market caters to 80 Chinese, 16 Malays and the rest Indians.
The demographic segmentation is most easily categorized in to children, students and youth,
workers and senior citizens.

The distinguished needs between these segment groups are diverse. Students are seen as low
income earners, thus menu items include acceptable prices Ior them. While workers are considered
as income earners and come in groups and have limited time to enjoy their meal, this also has to be
taken in to account. Local delicacies are included in the menu to suite the likings oI old timers, while
set menu`s are provided Ior Iamilies.
Every day the caIe is Iull during breakIast and lunch hours. A Iew solid advantages Old
Town has compared to alternative caIes nearby is the Iact that they provide a good, clean
environment the breakIast and lunch promotions along with the low pricing with the additional Iringe
beneIit oI WIFI.
Market 5ositioning
AIter target the market, we have to diIIerentiate our products and position ourselves in the
market. Old Town always advertise their product with slogans like 'Malaysia`s No.1 conIirms best
White CoIIee.
And according to the manager, nowadays new customers easily remember Old Town is
associated with White CoIIee and it has been observed that new customers order classic drinks
white coIIee.

Com5any`s marketing mix
Marketing mix
Marketing mix is an important tool in matching the demand anticipated by the business. We
will be analysing the Iour P`s oI the marketing mix in application to the Old Town shop we have
chosen.


!roduct
The key product the shop Iocuses is the coIIee product line. They oIIer 3 diIIerent coIIee
classes the OTWC 3 in 1 blend, Nan yang White CoIIee O`, simple pure white coIIee ready to
drink product.

The original white coIIee is Irom Ipoh. They serve the Iresh and true product to the customers
and make sure customers Ieel the best taste Irom the white coIIee.
The Iood line oI products has local, classic and sweet delights alongside hot and cold
beverages.
Classic dishes are Ior the customers who need a normal component meal just like Rendang
Chicken Rice, Chicken Hor Fun`, Nasi Lemak` special and so on. Local Ilavors and Sweet delights
include Signature toast`, Savoury starter`, desserts and others.
Beverages included the series oI origin white coIIee, old town iced cold coIIee and tea,
smoothies and so on.
!lace
To position the place oI a company is an essential element Ior a business. The outlet oI
OTWC we`ve chosen, the placing oI the outlet can be said as an ideal location. The outlet is in a
quite developed area with a university and a local Bank (Maybank) so close by. Also the bus station
is quite nearby this outlet. Thus it provides an optimal place Ior a coIIee shop.
An overall placement analysis on the coIIee chain shows, due to the large number oI shops
scattered across Malaysia placement is good. Brand loyalty is strengthened amongst customers
who oIten travel locally. Furthermore the Old Town`s CoIIee packs are available in hypermarkets,
the likes oI Jusco, Giant & Tesco.

!rice
The prices oIIered in the Cheras outlet is lower compared to OTWC outlets in Iamous
business centres such as Pavilion, Genting Highlands and LCCT. Plus in comparison to other Iood
chain rivals, the pricing is more cheaper.
With the given promotions, it can be said that the outlet is justiIying hard in pricing decisions
that will beneIit customers even more.

!romotion
The purpose oI promotions is seen as a way to make customers diIIerentiate the Old Town`s
experience. Three promotions are held daily, at tea time, 3pm-6pm, and a promotion Ior the whole
day. While the whole day promotions include certain Ilavours oI noodles, the tea time has light
snacks and the 3pm promotions have Iull meals.
New menu items are introduced through promotions at reduced prices to collect Ieedback.
Proudly adding, the coIIee chain is well advertised on the local media, Astro, quoted as a
coIIee chain with Malaysian Pride.


Actions & strategies
!roduct
Old Town oIIers a wide variety oI products to serve its customers. Based on the Manager`s
remarks and our survey, the main eye catcher in Old Town at Taman Connaught is their award-
winning 'White CoIIee.
The coIIee originates Irom Ipoh, Malaysia where they are naturally brewed. This could be the
main reason Ior the strong and natural Ilavour Ior the coIIee. Although we do recommend, the
serving size oI the coIIee to be improved as it is compassionately less now.
Nasik Lemak which is the clear next Iavourite and we recommend it would be good idea to
broaden the Nasik Lemak line by oIIering unique side dishes, perhaps pastries and home made
desserts.
Furthermore, we have Iound that many customers who take coIIee`s also take the 'Kaya
Butter Toast which is considered a snack. This bun is very crispy and the butter is made Irom a well
recognised bakery in Malaysia. Thus it has high demand. It could be a good idea to oIIer additional
snack options.
!rice
Price being the key and initial Iactor customers would consider, Old Town White CoIIee`s
pricing is decided taking in to account key competitors such as Madam Kwan, Pappa Rich and more.
Thus the pricing is reasonable and acceptable.

Moreover the promotion packages are economical compared to ordering single items Irom
the menu. A very good example is the breakIast set which includes one coIIee, halI boiled egg and
toasted wholegrain bread with golden melted butter, priced at RM4.50, add 1 more ringgit and the
customer can choose a drink Irom either white coIIee or ice lemon tea.
More pricing strategies were to be seen as we reviewed the promotions. The 3pm 6pm
promotions oIIers 20 discounts on certain items, while other pricing promotions include the buy
one get one Iree` and lower prices being oIIered to students.
!lace
As said beIore the location is seen as ideal Ior business. With the nearby businesses and the
university almost next door, the current location is seen as ultimate location. Although with the
anticipated demand through peak hours, it could be an optimal move to Iurther expand the current
shop. This could match the high demand Iurther improving the brand loyalty.
Customers have Iound it most convenient to stop over Ior a quick lunch or snack aIter visting
the bank or nearby businesses. Thus there is little argument against the current placing.
In order to deal with the night market situation as previously stated, we recommend the shop
to come up with a new promotion to draw in customers on that particular night. Perhaps matching up
to the prices oIIered by the night market, it would help to cover the shops Iixed costs.
And lastly we suggest it is a good idea to promote the shop a bit more around town. Even
though high demand is met in peak hours, there is relative space Ior more customers during the
evenings. This might attract the local demand a bit more.
!romotion
In terms oI promotions being undertaken, we think there are numerous promotions. From the
promotions oIIering diIIerent Ilavours oI noodles Ior any day to the most recent one oI early bird
breakIast promotion, there is always some promotions customers can choose Irom.
We recommend the shop to come up with better promotional oIIers during the evenings as
there is additional capacity to accommodate more customers. As said beIore these promotional
strategies should highlight the need to amend the issue oI the night market as well.
A suitable idea is to create membership cards to customers so that customers would Ieel more
at home and this is turn could hold customers oII going to rivals.

Conclusion
The areas being stressed on in this assignment are the company`s marketing environment,
the Swot Analysis, STP, marketing mix and actions & analysis.
The market environment described how external and internal Iactors within aIIects the
drawing oI customers to the restaurant. Moreover the business has established its perIormance within
the regional market.
Even though the shop oIIers the classes along the lines oI classic Iood, there seems to be lack
oI customization to suite the customers ever changing desires. This might have to be remedied soon
enough to draw in newer customers, especially the young to middle aged customers. The reason
we`ve highlighted this segment is because this is the segment which raises the issue Ior the shop to
diIIerentiate and customize the menu being oIIered rather than the aged group.
Additionally, it has been Iound that Old Town CoIIee in retail shops and hypermarkets does
not do too well compared with the other coIIee brands such as NescaIe. It seems almost impregnable
to break in to newer customers. Accordingly we acknowledge this is a high priority situation that has
to be remedied. We propose the chain/shop to setup Iree sampling booths in hypermarkets, and on
the spot promotions signiIying to the customers clearly the major diIIerence in prices compared to
rivals.
With these things taken care oI, the business would Iind itselI in a stronger position than it
already is, in the target market. A bit oI proIessionalism needs to click in to place continue on being
on the Irontier oI the coIIee line. That would indeed match the desires oI the customers, with the
matching promise oI delivering to them truly.