1.0 Executive summary
Gardenia is a strong brand in Malaysia. Gardenia has produced a lot of kinds of bread such as the one-Butterscotch, Breakthru, Delica, Twiggies and many more. In order to satisfied different level of customer, every Gardenia product has its own special features. The price of Gardenia breads is low and almost the same as others competitors. In fact, the pricing of Gardenia bread is controlled by the government. This is because of the ingredient of the bread, flour which is one of the products that are under the control of the government in Malaysia.
Gardenia makes widespread distribution either in urban or rural area to make sure everyone can have their breads. As all of us know, Gardenia baked products are well known by everyone. Their wide varieties of products are available in almost all hypermarkets, supermarkets and even neighborhoods stores. Here, Gardenia seeks for market share through intensive distribution, a strategy in which they stock their products in as many outlets as possible. Their breads and cakes can be conveniently obtained by consumers wherever and whenever consumes want them.
Gardenia implements mass promotions. For instance, it uses mass media such as television to promote its products and to introduce new products to the customers while ensuring customers to remember about their existing products. Among the various alternatives media, television advertising and newspaper are mostly used by Gardenia. In short, major advertisement of Gardenia’s bread have established slogans as part of its popular culture, such as “it’s fresh! It’s good! So good… you can even eat it on its own!”. 1.1 Brief history
Gardenias came from Singapore in 1978; it has a humble in-store in bakery. It was a very good product and its increasing demand led to the opening of Gardenias first-commercial bakery at Pandan Loop in March 1983. Gardenia has since been the market leader in Singapore and has its operations in some Asia countries such as Malaysia and Thailand with the latest in the Gardenia chain of bakeries also in the Philippines. Gardenia bread factory rated as one of the most modern large scale bread manufacturing facility in the country. Its major, highly-automated equipment come from the best bakery equipment suppliers from Germany, Holland, UK and USA making it the leading manufacturing company in the countries where it has branches. Over the years, Gardenia has gained wide acceptance and is now considered as the most widely distributed loaf brand, reaching many parts of the country. 1.2 Logo
This serve as a means of identification, differentiation and good will for our company and it enable our customers to recognize us anywhere they go even if they cannot remember our name by seen the logo as means recognition it we enable them to remember easily.
“So good…you can even eat it on its own”
Gardenia believes strongly in making sure that their consumers always get the finest quality and freshest bread and promise to always produce quality product to satisfy their customers. They produce freshly baked bread that can be found around the clock, from provision shops and convenience stores to supermarkets, hypermarkets and even hospitals and schools malls. They efficiently deliver our product to many retail outlets in Malaysia and other countries come rain or sun shine. They faced many challenge of an increasingly competitive bread market or company and a steady and continuing growth in demand for healthy bread due to lifestyle preferences and greater consumer sophistication, Gardenia’s Research & Development team constantly strives to come up with new products through a careful process of rigorous adaptation and trial with in-depth taste testing and feedback from the public. Gardenia will continue to promote the bread market forward by setting new standards in being the first in the industry to introduce better products and refreshing ideas to enjoy bread. Gardenia also prides itself on its Quality Control team who helps ensure that only the best quality and freshest bread goes to our consumers on daily bases. Consumers can always be assured of Gardenia’s commitment to quality and freshness. 1.5 Symbol
The vision of Gardenia is to become the premier company in the baking industry and the related food and beverage industry, known and emulated for our best quality products that delight the consumer. It is the pride of every employee, investor, trade partner and stakeholder. 1.7 Mission
The mission of Gardenia is to serve consumers with the best quality assortment of great-tasting bakery and related food and beverage products with world-class manufacturing facilities and an efficient nationwide distribution network, thereby providing a fair return on shareholder investments. 1.8 Objectives
The group believes that Gardenia Bakeries objective should be expansionary, given its current standing in the market. A market leader can maintain, grow and protect its position in the market by employing strategies focused on the following: a) Acquire new customers
b) Encourage more frequent usage
c) Find new uses of product
2.0 Marketing summary
Gardenia possesses good information about the market and knows great deal about the common attributes of the most prized customer. This information will be leveraged to better understand who is served, what is their specific needs are and how Gardenia can better communicate with them. The target markets of Gardenia Bakeries sdn.bhd are customer market, reseller market and also government market. The customer marker consists of individual and household while reseller market consists of retailer, supermarket (Carrefour & Tesco), and convenience stores (7-Eleven and stores at petrol station) and finally the government market which includes the hospitals. 2.1 Marketing positioning
Competitors are those who serve the target market with similar products and services against whom a company must gain strategic advantage. Now, Gardenia Bakeries sdn.bhd. has 70% share market in the bread’s industrial and it is a leader in this industry. This is because Gardenia has positioned their offerings strongly against competitor’s offerings in the minds of the consumers. For example, it has its own song to make consumers remember its bread which is “So good…You can even eat it on its own”. As we know, the demographic environment involves people, who play an important role in making up the markets. 2.3 Market Strategies
There are few strategies that have been use by Gardenia to penetrating its own bread market. Basically, Gardenia focuses on three aspects to delivery its product value to the customer where as marketing intermediaries, suppliers and public.
Marketing intermediaries help the company to promote, sell and distribute its goods to final buyers. There are lot of marketing intermediaries like reseller, the physical distribution firms and the marketing services agencies. Gardenia uses intermediaries’ distribution and also direct selling method to offer its product to the final buyers. The company uses the reseller to distribute its products in order to make sure that their products can be delivered to the customers. The customer can get the products easily in any retails without going to the main warehouse. Gardenia also uses the physical distribution firms to help them to stock and move goods from their main warehouse to final buyers, wholesalers and retailers. For supplier’s aspect, Gardenia knows that suppliers form an important link in the company’s overall customer value delivery system. They provide the resources required by the company to produce its goods and services. So, that Gardenia put an important insight to the supplied resources. Moreover, in order to achieve its objectives, Gardenia is using different public media for different motive. For example, it uses television to promote and also to ensure consumers remember about Gardenia’s products, be it new product or existing products.
2.4 Marketing Mix
Gardenia marketing mix consists of several approaches such as product, pricing, distribution and promotion. 2.4.1 Product
Product is anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a want or need while services is any activity or benefit that one party can offer to another that is essentially intangible and does not result in the ownership of anything. Products that are marketed are divided into two which are consumer products (convenience product, shopping product, specialty product and unsought product) and industrial products (materials and parts, capital items and supplies and services).
Gardenia has produced lot kinds of breads such as the Butterscotch, Breakthru, Delica, Twigges and many more. Every product has its own special features. This is because of the customer buying behaviour; customers who make frequent purchase, little planning, little comparison and low shopping effort before making purchasing. The prices of the Gardenia breads are low and almost same as other competitors. For example, white breads of Gardenia which have more slices with the cheaper price. Gardenia make widespread distribution either in urban or rural is to make sure everyone can have their breads. Gardenia also implements mass promotion. For instance, it uses mass media such as television to promote its product and to introduce new products to the customers to remember about their existing product by using radios.
Price refers to the amount of money charge for a product or service. It is the sum of all the value that consumers give in order to gain the benefits of having or using the product and services. Besides, price is the only element in the marketing mix that produces revenue and it is also a part of a company’s overall proposition. More importantly, it plays a key role in creating customer value and building customer relationship.
Gardenia did not compete by using their price but they make customer feel worth by providing bread with high quality. It also focused on the product differentiation such as creating new products in order to attract customers. In fact, the pricing of Gardenia bread is controlled by the government. This is because of the ingredient of the bread, flour which is one of the products that are under the control of the government in Malaysia. The producers are unable to change the price as they like and they must follow the price fixed by government. Apart from that, Gardenia will also consider several major aspects when setting the price. The first aspect is taken into consideration is the product cost. They will ensure that the price set is able to give profit to the company and at the same time, maximizing customer satisfaction. Gardenia will also consider about the overall marketing strategy and market demand. The price for Gardenia bread must be reasonable and affordable by everyone and it must also the same regardless of what location the bread is sold in Malaysia. 2.4.3 Promotion
Promotion is one of the four key aspects of the marketing mix. Gardenia realizes that a good promotion is important to create growth for the company. In the early years, a lot of efforts have been put into the promotion of the bread, but once consumers have accepted it they will be loyalty to the product. Promotion includes advertising, sales promotion and personal selling. Advertising consists of paid personal communication through various media with the purpose of promoting the products and is used by marketers to reach target markets with messages designed to appeal to business firms, profit organization or ultimate consumers. Gardenia has used advertising strategies to promote its products.
Among the various alternatives media, radio commercial, television and newspaper are mostly used by Gardenia. Radio is the most common medium used to remind existing customers about Gardenia products while television advertising is usually used to promote new products. Television advertising offers the advantages of mass coverage, powerful impact on viewers, repetition of messages, flexibility and prestige. That is all the reason why Gardenia chooses television to advertise products. Besides that, sales promotion is one of the ways Gardenia use in promotion. Consumers were required to collect four empty packaging of the Gardenia bread to redeem one free loaf Gardenia bread. The campaigns were successful in recreating awareness for these products and have lead to significantly increased sales. 2.4.4 Place
Currently, Gardenia Bakeries (KL) sdn.bhd has covered the domestic markets all around the Peninsular Malaysia. However, Gardenia’s baked products are only available in Peninsular Malaysia. This is because the delivering process to East Malaysia is time-consuming and the products are no longer fresh. Hence, East Malaysia which includes Sabah and Sarawak are not within Gardenia Bakeries distributed area.
As all of us know, Gardenia baked products are well known by everyone. Gardenia has over 20000 outlets throughout Peninsular Malaysia. Their wide varieties of products are available in almost all hypermarkets, supermarkets and even neighbourhood store. Here, as we can notice, Gardenia seeks for market share through intensive distribution, a strategy in which they stock their products in as many outlets as possible. Their breads can cakes can be conveniently obtained by consumers wherever and whenever consumers want them.