SITUATION ANALYSIS


1.1       Introduction

        Q Jelly Bakery Shop is the house of Jelly. It is first established in 2006 and previously known as Homemade Jelly Cake. Getting out from the traditional bakery shop, Q Jelly is recognized by providing the healthy, creative & freshest JELLY cakes for all kinds of occasions. More than 1,000 designs of jellies are available for the customers to choose from and they even do custom-made ones, according to customer's heart’s desires. There are quite a number of flavours like mix fruit, blueberry, fresh mangoes, honeydew, watermelon, dragon fruit, orange, strawberry, chocolate, mocha, tiramisu, green tea and pandan.
        They commit to deliver Healthy, Creativity & Freshness through their Jelly cakes. At Q Jelly, only the freshest and highest quality ingredients are used. The main ingredient of Jelly Cake is the Green Seaweed imported from Japan. It is so special because laboratory reports green seaweed in which most composition is fibre; it is low in saturated fat & cholesterol, and has positive effects on our health.  Moreover, their Jelly comes in a number of 100% natural flavours by using only the fresh ingredients. They also contain nearly 87% water and are rich in vitamins as well as other important nutrients.
         In the other hand, Q Jelly does not contain food additives and are animal-product free. With an artistic jelly crafting skill, the smooth texture and adorable designs give jelly dessert a brand new face. As for the attractive coloring, all of their food color dyes are approved by The Food and Drug Administration (FDA) in the United States. A secret technique is used to blend flavours and produce the superb texture which makes our jelly cakes such a hit among Malaysians.

1.2       Problem Statement and Issues
The problem faced by Q Jelly Bakery Shop is consumer’s misconceptions that Jelly cakes can't be compared with the traditional cakes. Many of them who are accustomed with the taste of normal traditional cakes do not want to try cakes made out of Jellies. 
·         Q Jelly brand image portrays a normal, typical bakery, nothing special and didn’t stand out among its rivals in the market.
·         It is overshadowed by other brands like Secret Recipe and Bakery Cottage as they have stronger brand recognition.
·         In terms of pricing, Jelly cakes are pricier compared to other traditional cakes.


1.3       Objectives and Aims
Objectives:
·         Create an effective promotional strategy by utilizing mass media to deliver message to the consumer that Jelly cakes is comparable with the traditional cakes and commit to deliver the healthy, creative, and freshest Jelly cakes.
·         To get the strategic methods of advertising on how to attract consumers from buying Q Jelly cakes rather than the traditional cakes.
Aims:
·         To revamp the existing website into more interactive to make sure customers can easily access and purchase from online.
·         To launch new promotional booths at shopping complexes or hot spots for targeting the adults in a better way.
·         To enhance on their advertising strategy by highlighting the unique selling point of the product.
·         To make the brand prominent and stand out from its competitors.
·         To change the consumers perception by perceiving the quality and value of the products.
·         To analyze the characteristics of the target audience and be more specify on the scope of the target audience.
To improve and create brand awareness to those who are unfamiliar with the Jelly cakes product.

2.1      Product Name
Jelly Cakes.

2.2      Product Classification
Unlike the traditional bakery cakes, Q Jelly specializes in Jelly Cakes that are not just pretty to look at but tastes great too. Committed to their motto, "Healthy, Creativity and Freshness", Q Jelly uses only the freshest and highest quality ingredients.

2.3      Product Characteristics
2.3.1      Category: Cakes
2.3.2      Type: Jelly Cakes
2.3.3      Packaging: The packaging of the Jelly cakes is design and place on a plastic tray, covered with a clear twist-top cover which is easy to open and close with base reduces damage to cake decorations when opening and closing. The plastic bag which is use to carry the cakes is design with the company brand logo at the middle followed by the details such as address, telephone number, and email address on the bottom.
       2.3.4      Flavour Range: Pandan, strawberry, chocolate, mocha, and blueberry.
       2.3.5      Unit of sale: Per box
    
2.4      Product Range
2.4.1      Jelly Cakes Flavor: The Jelly cakes product comes in many flavors such as pandan, strawberry, chocolate, mocha, blueberry, fresh mangoes, honeydew, watermelon, dragon fruit and orange. The common flavors choose by most of the consumers hot favourites so far are the pandan-flavoured Barbie dolls and the chocolate flavoured aquatic designs. There is a secret technique used to blend flavors and produce the superb texture which makes our jelly cakes such a hit among Malaysians.

2.5      Distribution
The distribution of the Q Jelly Bakery Shop products is directly. It is distributed directly to their specific outlets available in Malaysia. Since the products are only available for purchase at their own brand outlets and are unavailable at major supermarkets or hypermarkets, its scope of distribution is exclusive. Besides that, the product can be directly distributed to the Klang Valley’s consumers through orders made from Q Jelly Bakery Shop’s online services.

2.6      Product Life Cycle

                  
The brand product life cycle is still in the growth stage because the brand awareness is much lower than its major competitors. Many of them are not loyal customers which believe and love the brand. Q Jelly Bakery Shop product still needs a stronger advertising to let consumers accept the product.

2.7      The Brand
           Q Jelly Bakery Shop is the house of Jelly. It was first established in 2006, previously known as Homemade Jelly Cake. Getting out from the traditional bakery shop, Q Jelly is recognized by providing the healthy, creative & freshest JELLY cakes for all kinds of occasions. It is a trendy bakery shop which hidden with lots of fairy tale. At Q Jelly, only the freshest and highest quality ingredients are used. Their Jelly does not contain food additives and are animal-product free. All their food color dyes are approved by The Food and Drug Administration (FDA) in the United States. Moreover, their Jelly comes in a number of 100% natural flavors by using only the fresh ingredients.
            Stephanie Yong, 37 years old, is the owner of this bakery shop. The 1st booth was located in Sunway Pyramid in year 2000 and now they have online services. Their head quarter is located in Bandar Puteri, Puchong. The others two concept outlets are located in One Utama and Pavilion. Q Jelly Bakery Shop Sdn. Bhd. is the first and the only business, holding © DISNEY, © CARTOON NETWORK, © DOREAMON license to make Jelly cakes in Malaysia.

2.8      Brand Image and Implication
          The brand image of Q Jelly Bakery Shop product is still quite unknown yet it is already established in the market around 7 years. The opening of the Q Jelly Bakery Shop and its product were considered successful at the beginning due to consumer’s curiosity about the new brand and wanted to try out new things, but ultimately curiosity can’t position the Q Jelly brand in the minds of consumers for a long time. With the market that is full with competitors, Q Jelly Bakery Shop product is currently not the main choice in the cakes product selection.
          The indirect competitors rolled out their extensive advertising schemes, making full use of their media tools to completely take control of the cake market share such as Secret Recipe and Bakery Cottage. Those indirect competitors have a large portion of the pie in regards to popularity and sales. Due to the small capacity of loyal consumers that Q Jelly’s brand have, the brand image of selling healthy and creative jelly cakes will need to be implicated intensively in the minds of the consumers as their purchasing decisions are not just affected by the product, but also the identifications and the image associated with the product itself. By having all this, it might change their current mindset of choose Jelly cakes than the traditional cakes.

2.9      Strength and Weakness
Strength:
·         No food additives.
·         Animal-product free.
·         Certified as halal.
·         Full of fiber.
·         Do custom made designs as per order.
·         More than 1,000 designs of Jellies are available for the customer to choose from.
·         100% natural flavors by using only the fresh ingredients.
·         Main ingredient is Green Seaweed which is imported from Japan.
·         Low in saturated fat and cholesterol.
·         Contains nearly 87% water and rich in vitamins and nutrients.
·         Various flavors of Jellies are available for customer to choose.
·         Do not contain eggs and dairy products which can be consumed by the vegetarians.
·         Can bring their own pictures to design and get to choose the flavours they prefer.
·         Food color dyes are approved by The Food and Drug Administration (FDA) in the United States.

Weakness:
·         Products are only available in their brand outlets and do not exist in any other major supermarkets and hypermarkets.
·         Consumer’s perception in terms of pricing.

·         Lack of effective advertising and promotion of the Q Jelly cakes.

2.10            Advantages and Disadvantages
Advantages:
·         Q Jelly Cakes are suitable for the vegetarians as the jellies are animal-products free.
·         Online and delivery services are available for those consumers that could not reach the three brand outlets.
·         They own a Research & Development department to create designs according to the popularity of cartoon characters.
·         High fiber and nutritional content in the product relief to lower blood cholesterol and glucose outlets.
·         Unique designs for each product differ from different flavors.
·         A secret technique is used to blend flavors and produce the superb texture which makes our jelly cakes such a hit among Malaysians.
Disadvantages:
·         Consumers are not used to the taste of Jelly cakes.
·         Q Jelly Cakes only last for 4 to 5 days with appropriate refrigeration.
·         Outlets are only available in three outlets selling the Q Jelly products in Malaysia.
·         It is more expensive if compare to the normal traditional cakes.
·         Need to pay extra charges for the Jelly cakes delivery services for them who stay far from the outlets.

2.11            Unique Selling Proposition (USP)
Q Jelly Bakery Shop is the first and only businesses that have the authorized license to manufacture Jellies in Malaysia. The made various type of famous and popularity cartoon characters such as Pooh, Tigger, The Princesses, Doreamon, Donald and Daisy Duck, Goofy, Little Mermaid, Mickey and Minnie Mouse, The PowerPuff Girls, Barney, BEN 10, Thomas and Friends and there is many more which is specially for the young kids.

2.12            Promotional History and Advertising Schedule
Q Jelly Bakery Shop has not much for their promotion and advertising. They have just a few activities that focus on give the consumers the best deals for their Jelly cakes. Most of them can be found from the web. Besides that, there is also some utilization of print media such as flyers, posters, and buntings in their outlets. In the future of promotions, Q Jelly plans to execute various advertising plans on a bigger scale to reach the wider audience.

2.13            Positioning Statement
Q Jelly Bakery Shop is the first and the only business holding ©DISNEY, ©CARTOON NETWORK, ©DORAEMON license to make jelly cakes in Malaysia which provides nutritional health benefits and targeted for the young kids in Malaysia.

3.1    Company Overview
         Q Jelly Bakery Shop was owned by Q Jelly Bakery Shop Sdn. Bhd. and first established in 2006. It is a trendy bakery shop which hidden with lots of fairy tale. The difference between them and the other bakery shop is that they provide the healthy, creative & freshest jelly cakes for all kinds of occasions. With the creative and unique design of their cakes, they began to have more outlets besides their headquarters which is located in Bandar Puteri, Puchong. The other outlets was opened at Ikano Power Centre (2007), 1 Utama Shopping Centre (2008) and Pavilion Kuala Lumpur (2009) to meet the requirement.
         Q Jelly Bakery Shop Sdn. Bhd. is the first and only business that holds authorized license to manufacture jellies in Malaysia made in the form of famous cartoon characters like Thomas & Friends, Barney, BEN 10, The PowerPuff Girls, Mickey and Minnie Mouse, Donald and Daisy Duck, Goofy, Little Mermaid, Pooh, Tigger, the Princesses, Doraemon and many others. This gives Q Jelly an exclusive privilege over others to become a leader in jelly making. The company planned to open ten outlets in the Klang Valley by the First Quarter of 2011 and 100 outlets around Malaysia within the next two years, and has keen interest in exploring Hong Kong and Singapore markets soon.

3.2    Business Description
         Q Jelly Bakery Shop Sdn. Bhd. main business consists of distributive trade, wholesale and retail in the food and beverage industry, with an intensive focus for its Jelly cakes. According to the owner, Stephanie Yong, the motivation behind Q Jelly’s business establishment in the country is driven by the idea of making jellies that came from her mother who was an avid cook and would spend most of her time educating her on baking and cooking at home. Though the company does have sponge and butter cakes, their specialty lies with jelly cakes; almost 90 per cent of their cakes are jelly-based. Q Jelly’s cakes are highly sought-after for Mother’s Day, Father’s Day, Christmas, birthdays, full moon, and wedding celebrations. Since most of their cakes’ designs come in various colors and the majority takes the form of cartoon characters, they are a favourite in kids’ parties.
         Q Jelly Bakery Shop Sdn. Bhd. has its own Research & Development department which creates designs according to the popularity of cartoon characters and in a variety of flavors. This team came up with quite a number of flavors like pandan, strawberry, chocolate, mocha, blueberry, fresh mangoes, honeydew, watermelon, dragon fruit, orange and many more to come. The operation and production of the jelly cakes is process from the company’s own headquarters that doubles up as an office, which is located in a strategic area of Bandar Puteri, Puchong. The company keeps a strict eye for quality in their productions.

3.3    Company History
         The company’s history begins on 2006, which the founded is Stehanie Yong, 37 years old. According to the what she say, the motivation behind Q Jelly’s business establishment in the country was actually motivated by the idea of making jellies that came from her mother who was an avid cook and always spend most of her time educating Stephanie on baking and cooking at home. Like many little girls who were exposed by their parents to do a certain task, Stephanie in the end grew fond of making these sweet gelatine desserts so much so that she decided to make some for her friends and family just to see their reaction. Surprisingly, they were absolutely adored them. Her friends and family start to suggest her to do it as a business.
         This is what she has for now, her Q Jelly Bakery Shop which is already for almost six years. Stephanie Yong is also being helped by her sister Michelle Yong to run the business for the few past years. Their first shop, also known as their headquarters was opened in Bandar Puteri, Puchong. These sisters then continue to open new outlets at Ikano Power Centre (2007), 1 Utama Shopping Centre (2008) and Pavilion Kuala Lumpur (2009) to meet the demand once its popularity began to soar and response grew overwhelmingly high for its Jellies.

3.4    Key People

3.5    Location and Subsidiaries
Headquarters:
·         Q Jelly Bakery Sdn Bhd
Address                               : No.57, Jalan Puteri 2/3, Bandar Puteri,
                 47100 Puchong, Selangor Darul Ehsan, Malaysia.
Tel                          : 03-8063 8859
Fax                         : 8063 6199
Email                     : contact@qjelly.com
Website               : http://www.qjelly.com/

Outlet locations:
·         Q Jelly @ 1utama
LOT LGK 108, 1utama Shopping Centre
47800 P.J. Selangor.
Tel: 03-7710 1159/1179
Fax: 03-7710 9676

·         Q Jelly @ Pavilion Kuala Lumpur
Lot P1.03.00 Pavilion Kuala Lumpur
Tel: 03-2144 1159
Fax: 03-2144 1179

3.6    Brands, Major Products and Services
Q Jelly Bakery Bakery Shop Sdn. Bhd is a Malaysian-based company focusing on the jelly cakes retail business in Malaysia. Below are the company’s brand and line of production:
·         Brand:
Q Jelly Bakery Shop (Jelly Cakes)
·         Products:
Jelly cakes, Jelly cupcakes, Jelly bites
·         Beverages
None
·         Services
None

3.7    Corporate Vision
·         To have more outlets in the Klang Valley.
·         To open around 100 outlets around Malaysia within the next two years.
·         To explore Hong Kong and Singapore Jelly cake markets soon.

3.8    Corporate Mission
·         To produce the natural, healthy, and great-tasting jelly cakes.
·         Their mission is to introduce a new, surprising, healthy cake for any celebration-use.
·         To strengthen the brand image and identity in order to position the brand in the minds of the consumers and evoke positive brand communication.

3.9    Company’s Current Promotional Strategy
2009 (May - June)
·         Cartoon characters like Barney, Thomas & Friends, Powerpuff Girls were introduced in jelly cakes through the media form to attract the young ones’ attraction.

2010 (March)
·         Cartoon Network Roadshow
-          A new design is being promote through a road show to gain recognition and also to create brand awareness.
·         One Card Promotion-Ben10
-          Free RM10 Cash Voucher with every purchase of RM100 in a single receipt for each customer.

2011 (December)
·         Delivery Service Promotion
-          Their company starts their delivery services to widen their target scope and focusing on those who unable to go to their outlets or those who prefer to purchase online.
·         Christmas Special Promotion
-          Their company focuses on discounts and rebate vouchers to attract consumers during the months of festive holidays.
-          Promotions during these times of months are the most successful as people tend to spend on indulgences and treats for their friends and families.

2012 (January)
·         Chinese New Year Promotion
-          During this festival, many people will spend a lot and having promotion on this day may increase the amount of consumers purchasing it.
·         Free Chinese New Year Angpau Packets
-          In order to let consumers feel happy having free gifts while shopping, it is also to let more people to know about their brand through the red packets when is given to others during Chinese New Year. Have to grab it while stock last.

2012 (February)
·         Valentine’s Day Special
-          Jelly cakes are the best gifts for their loves one during this festival as it can be a gift or can use to be celebrating between them. It is very creative and unique because the company are promoting it with the tagline of “Be the one who hold the key to open the heart of your beloved one”. This promotion is very worth as there is also discount price were given and was valid until 25th February 2012.
·         iGotDiscount Exclusive Offer
-          The company cooperated with iGotDiscount to have more promotion. The consumers will have to scan the QR code in order to get the offer available on that time.

2012 (March - April)
·         Thomas & Friends Limited Voucher
-          Introducing a box of 4 Jelly cupcakes with Thomas JC design I box for RM15 only. This was to introduce the newly arrived Thomas the Tank Engine designs to the customers. The promotion was valid until 15th April 2012.

2012 (April)
·         Mother’s Day Special Offer
-          Introducing of new design especially for mother’s day and is 2 flavour in 1 cake. 

2012 (Jun - July)
·         Outlet re-locating promotion
-          In order to gain attention and attract more people to know about their new company, they have the promotion of buy 1 free 1 for each consumer. It is very easy as they just need to like their Q Jelly facebook page and show it to them and will get a Jelly worth RM38 on the spot.

2012 (September)
·         Mid-Autumn Moon Cake Festival Promotion
-          The promotion is 2 boxes with 4 pieces of Jelly moon cakes inside. The design is based on the Disney Winnie the Pooh. It is available at 3 outlets include Pavilion, K.L, Bandar Puteri, K.L, and 1 Utama Shopping Centre. The promotion was valid until 3rd Sept 2012.

2013 (January)
·         Chinese New Year Promotion
-          The company offer the promotion of buy 1 and get 1 for free. Consumers have to purchase within RM30 or use their member card to get this promotion. The design is based on the New Year decoration.

2013 (March)
·         New Pick Up Point
-          There are two more new outlets which are at the Empire Mall and the Great Eastern Mall. Consumer can log on to their official website to choose their flavour and design of Jelly cakes. When is done, they can go to their nearest outlet to pick up so that they can save the delivery services charge.

2013 (April)
·         Mother’s Day Promotion
-          Introducing of new design especially for mother’s day and the design is based on the heart shape which is to represent love and respect to their mother.  As for this year, all together it comes with 3 flavour and they can have more choices to choose.

2013 (May)
·         Monster University road show
-          A new design is being promote through a road show to gain recognition and also to create brand awareness.

2013 (June - Now)
·         BEN10 , BARNEY and THOMAS numbering design Special Offer
-          BEN10, BARNEY and THOMAS numbering design. Ben10, Barney and Thomas numbering design with the original price of RM320 after 25% discount are now RM240 only. The promotion was valid until 31st July 2012.

3.10    Product Sales’ History
According to the supervisor of the Q Jelly Bakery Shop, Lucas Lua said that the sales have shown the digit growth since 2010 due to have the creative and various types of Jelly cakes provided for the consumers, but unfortunately there is some decline for this few months after the election. He then continues say that they believe it is because the consumers not willing to use their money to buy the Jelly cakes. In the other hand, Q Jelly Bakery Shop is truly a one-of-a-kind business. Established in 2006, it produces healthier and fresher tasting Jellies. Once its popularity began to soar and response grew overwhelmingly high for its jellies, outlets were quickly opened at Ikano Power Centre (2007), 1 Utama Shopping Centre (2008) and Pavilion Kuala Lumpur (2009) to meet the demand. A licensing program was drawn up in May 2010 to share its winning formula with other entrepreneurs to produce Q Jelly items on a larger scale. On top of this, it has its own Research & Development department which use to create designs according to the popularity of cartoon characters and in a variety of flavours like pandan, strawberry, chocolate, mocha, blueberry, cappuccino, blackcurrant & longan, juicy mangoes, juicy strawberry and mix fruits.

3.11    Current Marketing Objective
Short Term Objective:
·         To deliver the healthy, creativity and freshness Jelly cakes.
·         To reach their sales target and have more dynamic growth yearly.
·         To fulfil consumers’ expectations of the products through the brand communication.
·         Come up with new Jelly cakes flavours to maintain their uniqueness and high quality of products offered.

Long Term Objective:
·         To develop more outlets and be an innovative leader in the Jelly cakes market industry.
·         To let consumers transform into healthy lifestyles by incorporating their company’s values.
·         To expand their product brand to be well known nationally or internationally by their target market.

3.12    Media Expenditure
         Due to the company is still lack of promotional advertising and the brand awareness level is low, the company is still relatively although it is already in the market for around six years. The media expenditure for them is on the online advertising and social media to promote their brand. Consumers may purchase these coupons online and get a great deal when purchasing the product at their outlets upon using it. The online deals offered not only helps customers to get the best deals but also engage them with a closer interaction to Q Jelly Bakery Shop. A word on their products can also be found through online reviews that include food review blogs or even customers sharing experience.

         Other than that, they also use print media such as flyers and buntings to promote their brand. From these, consumers get to know about their latest products. Latest news, events and promotions can also be found from Q Jelly Bakery Shop official website and also their Facebook fanpage which is actively updated regularly. They get the total of 3,800 users to like on their facebook page.

4.1    Current Consumers’ Characteristics
4.1.1      Demographics

·         Age                                                                : 2 – 17 years old
·         Gender                                        : Male and Female
·         Education                                    : Primary and secondary school
·         Occupation                                 : Students
·         Income range                            : RM50 – RM150
·         Race & ethnicity                      : All races
·         Geographical location           : Urban


4.1.1.1         Psychographics
(a)    Perception:
-          Celebrating their life's special moments with the Jelly cakes design according to their favourite cartoon characters or own pictures and get to choose the flavours they prefer.

(b)   Learning:
-          Flyers, buntings, posters, promoters.
-          Recommendation by friends and family.

(c)    Motivation & needs:
-          Loves the cartoon characters design on their Jelly cakes which they think their favourite idols can celebrate together with them.
-          Loves to experiment different types of flavours.

(d)   Attitude & Personality:
-          Jovial, cheerful, and excitable.
-          Adventurous and loves to try new things.

(e)   Lifestyle:
-          Modern, healthy, parent’s dependent.
-          Loves to spend time with families and enjoys gatherings with friends.

4.1.2      Demographics
·         Age                                                                : 18 – 45 years old
·         Gender                                        : Male and Female
·         Education                                    : SPM and above
·         Occupation                                 : Students to working adults
·         Income range                            : RM500 – RM4000
·         Race & ethnicity                      : All races
·         Geographical location           : Urban


4.1.2.1      Psychographics
(a) Perception:
-          A natural and healthy cake that contains a lot of nutritious and unique designs which include the custom made ones.

(b) Learning:
-          Digital and social media influences such as Facebook, Twitter, online blog review, online promotion deals, and websites.
-          Broadcast media such as Q Jelly Bakery Shop on the Star Newspaper, promoter, and friends and family.

(c) Motivation & needs:
-          Searching for a healthy and creative cake on the celebrities with the varieties of flavours and willing to try out something different than typical butter cakes.
-          Conscious about their healthy and willing to spend for it.

(d) Attitude & Personality:
-          Easy-going, curious, and excitable.
-          Optimistic, and loves to try new things.

(e) Lifestyle:
-          Healthy conscious, events and celebrations, sociable.

4.2    Stakeholders’ Characteristics
4.2.1      Primary
·        Board of Directors
A director representative of the stockholders to establish corporate management related policies and to make decisions on major company issues. The weight of responsibility of these directors is high as they have to work hard to achieve the company goals besides overseeing the developments of the company.

·        Employees
Work of the organization and contributing to the company in cooperation with their directors in order to achieve company’s goal and safe guarding the company’s assets against waste, loss and misuse.

·        In-House Graphic Designer
To contribute to the company’s advertising strategies and promotional activities. It is also to create brand awareness among the consumers.
7.1    Strength
·         More than 1,000 designs of jellies are available for the customers to choose from.
·         Do custom made designs as per order.
·         Q Jelly’s cakes have apparently found a place in the hearts of vegetarians.
·         The first and the only business holding ©DISNEY, ©CARTOON NETWORK ©DORAEMON license to make jelly cakes in Malaysia.
·         100% natural flavors by using only the fresh ingredients and main ingredient is Green Seaweed imported from Japan.
·         Elderly customers and some of them have lost their teeth due to old age will not have problems eating Jelly cakes.
·         Food color dyes are approved by The Food and Drug Administration (FDA) in the United States.
·         Designs come in various colours and the majority takes the form of cartoon characters to enhance customers coming back for more.
·         There is online services and delivery for those who stay far away from the branch outlets.
·         With a first purchase of RM50 or above, customers become eligible for a Q Card and stamp redemption scheme, and discounts on future purchases.
·         The little kids standing close to the glass door of the shop, squinting their eyes, trying to get the best view of the desserts.
·         Q Jelly Bakery Shop Sdn. Bhd. has its own Research & Development department which creates designs according to the popularity of cartoon characters and in a variety of flavors.
·         Most of them do not contain eggs or dairy products and they are certified as halal.

4.2.1      Secondary
·        Distributors
Q Jelly bakery Shop did not employ external distributors and is wholly done by their employees.

·        Media
The media functions as a medium to advertise the products and create brand awareness to the public to gain exposure on it thus expecting a growth in sales.

·        Consumers
Contributes to the company such as purchase their products and stay loyal to the brand. Giving suggestions and comments concerning the products can also help to improve the quality of the brand.

·        Banks
The bank helps the company in terms of financial situations and provides loans and funds.

5.1    The Industry 
5.1.1      Definition of the Industry
The Food and Beverage Industry covers a wide aspect of retail businesses in the world as a large share of the market consists of businesses that are involved with restaurants, cafes, food outlets and many more. It’s one of the most important industries in the world and contributes greatly in every country’s growth of economy and developments. The food and beverage industry can be separated into two segments which are production and distribution of edible goods. In assuring consumers satisfaction and quality guaranteed production, companies are twisting rapidly to keep up with the speed of change according to consumer demands. The food processing industry contributed about 10% of the Malaysian manufacturing output in 2009, attracting a total of RM1.972 billion in 69projects. Those small and medium sized enterprises represent more than 80% of the total number of establishments in the processed food segment. They are mainly involved in sub sectors like fish and fish products, livestock and livestock products, fruits and vegetables, functional and health food, and cocoa based products. Bakery and pastry also a sub sector of the food and beverage industry.

5.1.2      Shape of the Industry


          Baked goods continue to face strong demand from consumers in 2012, as a result of rising health concerns in Malaysian society. For example, Malaysians tend to switched to the consumption of healthier breakfast foods instead of local breakfast products such as nasi lemak and noodles. Besides, a greater variety of healthy range cakes industrial has been introduced in 2012, boosting demand among consumers. In line with a rising literacy rate among Malaysians, they were also increasingly educated regarding benefits offered by the consumption of healthy cakes. Furthermore, outlets specialising in cakes industrial also helped stimulate interest among consumers.

          The global cakes market has shown rapid recovery following the economic recession, recording strong growth over recent years. There is more focused on technology a mechanical manipulation of raw foods to create more value-added food products than the agricultural industry. Factors fuelling market expansion include convenience, affordability and health benefits of cakes products. Demand for healthier cakes products has also driven sales.

          The cakes industry is well established in industrialized regions such as Western Europe and North America. Product innovation and healthier products and ingredients are fuelling market growth in these regions. Emerging markets such as Latin America, and Asia represent good market potential as western lifestyles and eating habits continue to be adopted in these regions.

5.1.3      Development of the Industry
          The establishment of a modern cake industry began with the construction in the 1930’s. The production base of the industry is being continually expanded by the construction of new enterprises and the reconstruction of existing ones. Approximately 30 large-scale state cakes are put into service annually, as well as 250 mechanized small-scale cakes of the Central Cooperative Alliance in rural regions. Between 1956 and 1975 alone, more than 850 large-scale cakes were constructed. By the beginning of 1976, there were approximately 16,000 enterprises in the cake industry, including more than 5,000 state enterprises and approximately 11,000 cooperative enterprises.

          In other socialist countries, the cake industry is developing at a rapid step. Mechanized bakeries are being constructed and many have been put into operation. Specialized enterprises are being established, as well as enterprises producing both cakes and pastries and other food products. However, Jelly cakes market is still very new to the industry where there is not much information about the market available to the public.

          With retail values rising to US$465 billion in 2012, global cakes and pastry still offers good growth potential. Added value innovation focusing on health and convenience is strongly driven by developed markets, as obesity and time pressures mount. However, emerging market consumers are also becoming more willing and able to spend more on added value formats, such as nutrients. Meanwhile, volatile input costs, coupled with clean label and other ingredient trends, continue to drive product development.  

5.2    The Marketplace
5.2.1 Current Condition of the Marketplace
The marketplace for the cake products are categorized under the dessert market which is one of the subdivisions of the food and beverage industry. As the Q Jelly Bakery Shop is still unknown and Jelly cakes are still new to the industry, the information of the market that could be search from the internet is limited. As for the current condition of Q Jelly Bakery Shop, the market has increase if compared with the past few years. Consumers nowadays are slowly getting use of the Jelly cakes and love to consume it. But as for now, consumers can only get the product from their outlets in shopping complexes and also their headquarters. Besides that, there is also an online delivery services for those who stay far away from their outlets. Q Jelly Bakery Shop is now planning to have more franchise business at klang valley and also at nationwide soon.
5.2.2 Changes in Marketplace
Positive Changes:
·   Jelly cakes market have more chances to influence and attract those consumers who are conscious about their healthy because Jelly cakes have healthy, fresh ingredients and also their low sugar content.
·   When there are many traditional cakes as their competitors in the market, Jelly cake industry will try to out do new things, thus resulting in better results.
·   Many competitors in the market lead to more effort in innovation, thus boosting growth of the industry.
·   Their cakes franchise business opportunities are developing and give chances to entrepreneurs to come up in their business.

Negative Changes:
·   Many of them are not willing to try cakes made out of Jelly as they perceive that it can’t be compared with the traditional cakes.
·   Nowadays there is too many traditional cakes shop outside and Jelly cakes could not have a strong image of their brand in the market.
·   The spending cost will be more in order to gain new consumers by doing the advertising and offering some form of discount.
·   They are concern of the price range regarding to the cakes competing in the market.

6.1    Direct Competitors
6.1.1 Jelly Cake House

To adapt to today’s health-conscious lifestyle, Jelly Cake House offers you a new choice of low-cholesterol Jelly cake mainly made from Jelly, pandan and water with richer vitamins and nutrients. Our special homemade Jelly cake with plenty of creativity will give you a delightful moment for any of your occasion each time! With many different Jelly cake designs to choose from, you’ll be spoilt for choice! A full array of Jelly cake with different designs is available now online at www.JellyCakeHouse.com for all types of celebration & function dining.    

Type: Cakes
Product Range: Jelly Cakes
Brand Image: Healthy and Creative
Strength: Healthier cake designs, no preservatives, no fattening, less sugar, no artificial flavoring, low cholesterol, pure pandan, total of 8 outlets and pick up locations, unique cake designs
Market Share: Gradually growing in the competitive scene of Jelly cake market
Brand Positioning: Unique cake designs with a delightful sweet pleasure to their taste buds
Current Advertising Strategies: Share and tag the birthday picture with their Jelly Cake House Facebook fanpage or email them to stand a chance to be the ‘Jelly Moment’ of the month
6.1.2 Jelly cake Michelle
Jelly Cake Michelle specializes in custom homemade Jelly cakes, cupcakes and decorated cookies and is located in Kuala Lumpur. Every creation of its Jelly cakes is individually made for customers. Jelly Cake Michelle work with every customer closely to create unique designs and delicious jelly cakes to suit their preferences and the occasion. All jelly cakes and Jelly cupcakes creations are made from the best quality ingredients. These Jelly cakes and Jelly cupcakes not only look good, they taste heavenly as well.

Type: Cakes
Product Range: Jelly Cakes
Brand Image: Creative and best quality ingredients
Strength: Unique cake designs, using American Icing colour, do not use Gelatin for the Jelly cakes, less sugar, and no artificial flavoring
Market Share: Medium and gradually growing
Brand Positioning: Their Jelly cakes are freshly made daily and do not use any preservative only use the original charcoal boil pandan water
Current Advertising Strategies: Celebrate birthdays with delightful and fresh Jelly Cakes delivered to your doorstep for free on the day of your birthday

6.2    Indirect Competitors
6.2.1 Secret Recipe

Founded in 1997, Secret Recipe made its mark, renowned for its extensive range of fine quality gourmet cakes. It has since evolved to become one of the fastest growing lifestyle cakes and café chain in the region with over 280 café outlets to date. Secret Recipe Cakes & Cafe's concept can be found in prime urban locations and shopping malls in major cities in the region including Singapore, Kuala Lumpur, Jakarta, Bangkok, Manila, Brunei, Shanghai and Melbourne.

Type: Cakes
Product Range: Cakes, brownies, vegetarian food, western food, Italian food, Asian food
Brand Image: Modern and luxury
Strength: Variety of delicious cakes and dessert, range of selection of tasty foods and drinks, good and comfortable environment of shop
Market Share: Large
Brand Positioning: Secret Recipe promises a value lifestyle proposition of great variety and quality food at affordable prices
Current Advertising Strategies: Just spend RM30 and above at Secret Recipe and win fantastic prizes to bring home


7.2    Weakness
·         Products are only available in their brand outlets and do not exist in any other major supermarkets and hypermarkets.
·         Consumers are not used to the taste of Jelly cakes.
·         It is more expensive if compare to the normal traditional cakes.
·         Lack of effective advertising and promotion of the Q Jelly cakes.
·         Consumer’s perception in terms of pricing (expensive).
·         Q Jelly Cakes only last for 4 to 5 days with appropriate refrigeration.
·         Need to pay extra charges for the Jelly cakes delivery services for them who stay far from the outlets.

7.3    Opportunity
·         Demands from other areas that will help the brand expand nationally/internationally.
·         A festive season in Malaysia is always a good opportunity as Malaysian loves to celebrate and gather together to share foods and visiting each other’s.
·         Sponsoring campaigns to increase brand awareness.
·         A healthy, creative and colourful Jelly cakes would be a perfect treat for the kids.
·         People are concern of their healthy status and interested in nutritious.
·         The cartoon characters that attract the kid’s attention may help to promote the brand’s image.
·         Special celebration such as birthday, graduation, marriage, or anniversary will increase the opportunity.               

7.4    Threats
·         Competition from other well-known brands.
·         Consumers prefer having traditional cakes rather than the Jelly cakes.
·         The market demand for healthy Jelly cakes is still low in Malaysia.
·         Food of trends changes often and consumers always like to try out new things.
·         People’s perception that Jelly cakes contain a lot of sugars and bad for health.
·         Competitors are coming up with the big budget advertisement and promotion.

8.1    Proposed Primary Target Audience
8.1.1      Demographics
·         Age                                                                : 3 – 16 years old
·         Gender                                        : Male and Female
·         Education                                    : Primary and secondary school
·         Occupation                                 : Students
·         Income range                            : RM50 – RM100
·         Race & ethnicity                      : All races
·         Geographical location           : Urban

8.1.2              Psychographics
(a)    Perception:
-          Looking for a Jelly cakes with their favourite cartoon characters and choose the flavours they prefer which is tasty.

(b)   Learning:
-          Flyers, buntings, posters, promoters.
-          Recommendation by friends and family.

(c)    Motivation & needs:
-          Loves to experiment different types of Jelly cakes.
-          Loves the cartoon characters design on their Jelly cakes which they think their favourite idols can celebrate together with them.

(d)   Attitude & Personality:
-          Happy, active, and excitable.
-          Outgoing and loves to try new things.

(e)   Lifestyle:
-          Modern, healthy, parent’s dependent.
-          Loves to spend time with families and enjoys gatherings with friends.

8.2    Proposed Secondary Target Audience
8.2.1      Demographics

·         Age                                                                : 18 – 35 years old
·         Gender                                        : Male and Female
·         Education                                    : SPM and above
·         Occupation                                 : Students to working adults
·         Income range                            : RM1000 – RM5000
·         Race & ethnicity                      : All races
·         Geographical location           : Urban

8.2.2      Psychographics
(a) Perception:
-          A natural and healthy cake that contains a lot of nutritious and unique designs which include the custom made ones and is value for money.

(b) Learning:
-          Digital and social media influences such as Facebook, Twitter, online blog review, online promotion deals, and websites.
-          Broadcast media such as Q Jelly Bakery Shop on the Star Newspaper, promoter, and friends and family.

(c) Motivation & needs:
-          Quick and healthy treats that can relieve stress.
-          Searching for a healthy and creative cake on the celebrities with the varieties of flavours and willing to try out something different than typical butter cakes.
-          Conscious about their healthy and willing to spend for it.

(d) Attitude & Personality:
-          Easy-going, curious, and wise money spender.
-          Understanding, excitable and loves to try new things.

(e) Lifestyle:
-          Healthy conscious, events and celebrations, sociable.


9.1    Marketplace Research
9.1.1 Outlet visits
I took the opportunity of visiting all the three concept outlets of Q Jelly Bakery Shop on separate days with my friends. As for my visit to the outlets, I able to gain a lot of information regarding to the product such as the type of Jelly cakes that is available, the variety of flavors they offer, the making process of Jelly cakes, and also identifying the concept of the outlets.
9.1.2 Outlet concept
(a) Outlet concept:
Q Jelly Bakery Shop’s headquarters in Puchong was painted in pink building exterior. Among the whole building, it is the most outstanding shop lot compared to the others because of the appealing color. As for the other two brand outlets, it is also being painted with pink and white exterior to show the company’s signature trademark and also to make sure the logo looks attractive. The decoration for all the three outlets are same which is being decorates with the Disney characters concept. There are all using the Disney wallpapers but is using the different cartoon characters for the decorations.

 (b) Furnishing:
Q Jelly Bakery Shop’s outlets provide chairs and table for customers to sit and enjoy their food there. It is decorated with table and chair which is the characters of Mickey. Besides that, they also provide the half round chair made of soft materials so that they feel comfortable when sitting it.

 (c) Packaging illustration:
Q Jelly Bakery Shop’s packaging illustration is design according to the outlet’s decoration style and with their brand logo on it. The packaging has its own illustration that cannot be found in other places. Their box that is given is based on the size of the cakes so that it can fix properly.

9.2 Market Observation
A market observation was done in the outlet of Q Jelly Bakery Shop in order to find out the number of the customers that purchase Jelly cakes including number of the online order in a week from Monday – Sunday. There are many categories of customers including children, teenagers, families, and also the workers. Below is the result of the findings.



9.3 Online Survey

An online survey was conducted from 9th July 2013 - 13th July 2013 with a total of 106 respondents. The survey was carried out online in order to know the current situation of retail market in consumer’s perspective.  Below are the questions asked in the survey.

9.3.1 Survey Results

The pie chart as above shows that 60% of the respondents were female while 40% of the respondents were male.

The pie chart as above shows that most of the respondents were 18 – 23 years old.

The pie chart as above shows the majority of the respondents were Chinese which contained 81%. Followed by Malay 14% and 5% of Indian origin.

The pie chart as above shows the monthly income is between RM100 – RM500.

The pie chart as above shows the majority of the respondents were live within Selangor and KL.

The pie chart as above shows that most of the people like to eat Jelly.

The pie chart as above shows that there are many people eat Jelly product once a month.

The pie chart as above shows that most of them will buy cakes as a birthday present.

The pie chart as above shows that Secret Recipe is the first choice by consumers among the others bakery.

The pie chart as above shows that people prefer to consume traditional butter cakes than the Jelly cakes.

The pie chart as above shows that most of the people never heard of Q Jelly Bakery Shop.

The pie chart as above shows that most of the people never heard Q Jelly Bakery Shop before.

The pie chart as above shows that majority of them prefer to have own customized design on cakes.

The pie chart as above shows that most of them are not aware of the health benefits of Q Jelly Cakes.

The pie chart as above shows that the factors that motivate them to buy Jelly cakes is by promotion.

The pie chart as above shows that most of them have no idea on how to describe about the Q Jelly cakes.

The pie chart as above shows that majority of them are not satisfied with the price range of Q Jelly cakes.

The pie chart as above shows that most of them never try before Q Jelly cakes.

The pie chart as above shows that majority of them want to have more advertisement and promotion of Q Jelly cakes.

The pie chart as above shows that most of them have never tries Q Jelly cakes before.

9.4 Interview
The first time when I email to my company Q Jelly Bakery Shop through the email which is provided from their website, I was being decline by them. The first email when I ask them for some question and number of their person-in-charge, they told me that their headquarters is in renovation and because of that the person-in-charge are busying. In the email, they gave me their current website link and ask me to find the information from there.

I was about to sad a while and the day after, I to try to email them again in a more polite way telling them that it’s just a short interview and just need to have some general information about their company from them. Besides that, I also attached the letter that I get from school for the company to prove that I’m currently doing my survey. Unfortunately, I was being rejected again and this time they telling me that their person-in-charge was out station. At the moment, I thought that I don’t have any hope more.

In my opinion, they might feel that I’m annoying and don’t want me to keep email them so they tell me that the person-in-charge was not around. This is why I didn’t email them again and I decided to go to there to just have some observation and have some picture of their product and environment. When I reach there, I feel that I’m so lucky that I meet the person-in-charge there. I walk to him and asked him again for the one last time and tell him that it will be a really short interview. He then gives me the chance and let me to interview with him.

·         Person-in-charge             : Lucas Lua
·         Position                               : Supervisor
·         Email                                     : contact@qjelly.com
·         Location                               : Q Jelly Bakery Shop, Puchong
                                  No.57, Jalan Puteri 2/3, Bandar Puteri,
                                  47100 Puchong, Selangor Darul Ehsan, Malaysia.


Below are the few questions which were asked during the interview and answers.
·         Question 1: What is the situation of the current market for Q Jelly Bakery Shop?
-          Our company are currently are still in the growth stage but we notice that there is slightly of some decline for this few months after the election.

·         Question 2: Who is your current target audience?
-          Currently, we are targeting the kids which are the age of 3-16 years old and also our design is based on the fairy tale.

·         Question 3: Is there any plan of having more numbers of outlets in the future?
-          Yes. We plan to have more outlets in the Klang valley and also to explore Hong Kong and Singapore Jelly cake markets soon. Currently, we just come up with the new outlet which is for the pickup point in Great Eastern Mall and Empire Mall Gallery.

·         Question 4: How do you all charge for the online delivery fees?
-          It is free of charge to delivery to anyplace which is within the Selangor area as there is just a few numbers of outlets. As for the delivery to the area out of Selangor area, we will charge for the delivery fees.

·         Question 5: In your opinion, what is the most unique selling point of your products and why do consumers choose your Jelly cakes rather than the butter cakes?
-          The difference between my Jellies and those of others is that not only are they low in cholesterol; they also contain nearly 87% water and are rich in vitamins as well as other important nutrients. The cakes are designed by our own and I'm sure that our Jelly cakes won’t disappoint the consumers as most of them do not contain eggs or dairy products and they are certified as halal.

9.5    Analysis on Proposed Target Audience
I find a few proposed target audiences and let them try out the Jelly cake. After consuming the product, I asked opinion from them. From this survey, I found the result that the adult do not get used to it while the kids enjoy and love eating it especially when they hold their favourite characters in the hand. Besides that, the kids love the taste a lot while the adults feel not safety consuming too much as the Jelly cakes looks too colourful.

10.1    Advertising Strategy
The Q Jelly Bakery Shop advertising strategies provides a lot of offers through online deals and promotion. They usually included their latest news, upcoming events, and also latest promotion in their official website, Facebook fanpage, and twitter. Since a large number of its consumers can be found online, the online media plays a big role in helping to spread the world regarding their promotional activities. Other than that, other than using the online media, the company also utilizes the print media as the main advertising tool with poster and bunting displaying at their outlets.

No comments:

Post a Comment