We are from EMBA UITM performed marketing analysis case study for Old Town White Coffee business especially Cafe or Restaurant operation that are severely impacted as the results of changing customers behaviour due to Pandemic COVID-19. Our team used strategic marketing tool such as SWOT, TOWS MATRIX etc. deep dive into issues confronted by them. We proposed few solutions from the issues that we identified so that Old Town White Coffee team can revisit their action plan during and post pandemic Covid-19 for their business sustainability.

1. Manan.Liza,Shazanah.Firdaus
19 December 2020
Old Town White
Coffee: A Malaysian
Made Coffee in
Crisis
Universiti Teknologi Mara, Cawangan Pulau Pinang, Malaysia
MKT 761 AA701

2. Menu
- Main Situational Analysis
- Problem Statement
- Develop Strategies
- Development of Alternatives
- Evaluation & Recommendations
- Implementation
- Evaluation & Control
- Conclusion

3. Situational Analysis
THREATSTRENGTH WEAKNESS OPPORTUNITY
1. Established local brand
& Malaysian-born
coffee
2. Wide coverage (branch
es) throughout
Malaysia
including overseas
expansion.
3. Offers a variety of local
dishes with halal
certification
at reasonable prices
4. Traditional coffee shop
concept
1. Uniqueness depends
on white coffee only
2. Attractive to certain
group of customers
only (mostly Chinese)
3. No rewards for repeat
customers
4. Too reliant on dine-in
for F&B section
5. Not adaptive to
consumer's expectation
6. Difficulty in managing
cash flow
1. Growing segment in
gourmet coffee
2. Boom in food delivery
business.
3. Increased consumers
awareness towards
healthy eating lifestyle
4. Increasing popularity
in cafe/ al-fresco
dining style
1. Rise in number of
hipster cafes
2. Face very strong
competition especially
with international brands
e.g., Starbucks
3. Pandemic COVID-19
crisis affecting the
numbers of dine-in
customers

4. Problem Statements
# 1 Too dependent on white coffee products
# 2 Strong competition in coffee cafe market segment
# 3 Fast changing consumer eating behaviors towards healthy eating
# 4 Pandemic Covid-19 crisis, less dine-in customers

5. 1. Established local brand & Malaysian-
born coffee
2. Wide coverage (branches) throughout Malaysia
including overseas expansion.
3. Offers a variety of local dishes with
halal certification at reasonable prices
4. Traditional coffee shop concept
1. Uniqueness depend on white coffee only.
2. Attractive to certain group of customers only
(mostly Chinese community).
3. No rewards for repeat customers
4. Too reliant on dine-in for F&B section
5. Not adaptive to consumer's expectation
6. Difficulty in managing cash flow
1. Growing
segment in gourmet coffee
2. Boom in food delivery
business.
3. Increased
consumers awareness
towards healthy eating lifes
tyle
4. Increasing popularity
in cafe/ al-fresco dining
style
STRENGTHS & OPPORTUNITIES
S2O2 Market expansion through wide
coverage branches and delivery services
S3O3 Offers varieties of healthy local cuisine
at an affordable price
S3O1 Market expansion of Halal certified premix
products into new countries.
OPPORTUNITIES VS WEAKNESSES
W1O1 Product introduction to the market to
suit the current trend.
W2O3 Diversifying target customers to increase
revenue and growth
W4O2 Use of technology to improve business
performance by moving into online purchasing
methods, delivery services, e-payments, live
feedbacks and chats
1. Rise in number of hipster
cafes
2. Face very strong
competition especially
with international coffee br
ands e.g. Starbucks
3. Pandemic Covid-19 crisis
affecting the numbers of
STRENGTHS VS THREATS
S1T2 Leverage on Buy Malaysian Product
Campaign
S4T1 Active promotion on social media
targeting young customers
to experience traditional ambience dining
THREATS VS WEAKNESSES
W4T3 Enhance marketing strategy to increase sales
via contactless option e.g., take-away, delivery,
vending machine to compensate the loss
of dine-in customers during pandemic
outbreak.
W3T3 Attract customers with loyalty reward program.
EXTERNAL
INTERNAL

6. Development of alternatives
Issues Proposed Solution
1. Too dependenton white coffeeproducts
1. Introduced newproductto the new market to suit current trend
2. Introduced seasonalproductand marketing campaign.
2. Strong competitionin coffeecafe market
segment
1. Introduce Loyalty program
2. Improve in marketing strategy
3. Online and cashless platforms
4. Mobile conceptcafé
3. Fast changing consumereating behaviors
towards healthy eating
1. Introduce healthy menu
4. Pandemic Covid-19 crisis,less dine-in
customers
1. Vending machine via self-ownership or partnership with
vending machine supplier.
2. Drive-thru concept.
3. Exporting premix productto new country.

7. Too dependent on
white coffee products
Introduced new
product to the new
market to suit current
trend
Gourmet quality white
coffee
Initial cost per outlet
RM 16K + Training
cost RM 750/Staff [1]
If net profit /cup RM 3
and sale of 30 cup/day.
ROI within 6 month per
outlet
Affordable universal
coffee capsules.
Machine cost RM 32-
72k [2] without
shipping, tax and
installation cost
introduced seasonal
product and marketing
campaign.
Value meal and event
packages for major
festive celebrations
and special ocassion
Food package
development
,marketing and
promotion cost only
Development of alternatives for problem #1

8. Evaluation of alternatives for problem #1
Issues Proposed
Solution
Positive attributes Potential Challenges Expected revenues
growth
Too dependent
on white
coffee products
Gourmet quality
white coffee
- Expand customer base
to other socioeconomic
class (middle/upper).
- Return on investment
in a short period of time
- Required medium
startup cost per outlet
- to develop the right
taste especially to
hardcore coffee
enthusiasm
Expected Compound
Annual Growth Rate
(CAGR) of almost 13% [1].
Affordable
universal coffee
capsules.
New line in FMCG
product that’s promote
lifestyle
- Require huge capex
for startup and space
for production line
Expected 6.86% growth rate
for Coffee Pod & Capsule
Market [2]
Value meal and
event packages for
major festive
celebrations and
special occasion
- Diversify by
bundling current
products
-Small cost
Compete with huge
market that offer the
same marketing
typically by fast food
restaurant
Expected compound annual
growth rate (CAGR) of 5.5%
[3]

9. Implementation timeline for problem #1
Gourmetquality white coffee W1 W2 W3 W4 W5 W6 W7 W8 W9 W10 W11 W12
1. Getting approve concept
from management
2. R & D gourmet white coffee flavor
palette
2. Procurement & purchasing
gourmet coffee machine
2. Barista training to staff
4. Marketing and selling gourmet
white coffee
5. Gather feedback/survey from
consumer

10. Development of alternatives for problem #2
Strong competition
in coffeecafe
market segment
Introduce loyalty
programs to attract
customers
Discounts/
vouchers. coupons/
points/ redemption
Improve in
marketing strategy
to increase sales
Visible and active
in social media and
mass media
Move into online
purchase platform
Via own website /
e-commerce site
Invest in mobile
conceptcafe

11. Evaluation of alternatives for problem #2
Issues Proposed Solution Positive attributes? Potential
Challenges?
Expected revenues growth?
Strong
competition in
coffee cafe
market segment
Loyalty program
Encourage customers to
repeat orders, collect
data and
boost sales
Market saturation,
customers visits
different outlets,
Growth in the gift card industry can
be attributed growth of e-commerce
business, corporate rewards program
and gig economy payments[1]
Improve
in marketing strategy
Create visibilities and
product awareness and
increase in sales
Generating target/
right audiences
Social media users in
Msia increased by 1.0 million (+4.1%
) between Apr 2019 - Jan
2020. Social media penetration stood
at 81% in January 2020 [2]
Online purchase
platforms
Wide target customers
several payment modes
faster process
Converting shoppers
into paying customers,
info available for
competitors, site crash
Strong growth in the F&B industry-
The 2020 global F&B market size is
estimated to be $7 trillion [3]
Mobile concept café
Expand customers base,
low operation cost,
advertising benefits
Abide with local
zoning laws, dedicated
parking spot,
Mobile cafe may be the perfect
solution to feed customers' nostalgia
for dining out as restaurant industry
remains uncertain

12. Implementation timeline for problem #2
Online purchase platform W1 W2 W3 W4 W5 W6 W7 W8 W9 W10 W11 W12
Survey potential platform service
providers and web hosting
companies
Shortlisted the service provider and
web hosting company
Register domain name and payment
gateway
Content development, product
insertion and page set up
Content review
Site go live
Promotion and marketing

13. Development of alternatives for problem #3
Issue: Change of
consumers
behaviors
Add more healthy
menu
(vegan/vegetarians)
Offer option to
substitute product –
e.g stevia, non-dairy
milk
Use healthy cooking
style

14. Evaluation of alternatives for problem #3
Issues Proposed
Solution
Positive attributes Potential
Challenges
Expected revenues growth
Fast changing con
sumer eating
behaviors towards
healthy eating
Offering more
choice on
vegetarian menu
• Bring new potential
customers from vegan
group
• Minor changes/
enhancement to existing
menu
High costs of vegan
groceries/ raw
materials
45% of millennials prefer to eat
vegetarians
Malaysia ranked 3rd in Global
Vegetarian Index (no of vegetarian
restaurants, population, annual meat
consumption per capita) [1}
Offer options to
product substitute –
eg: stevia, non-
dairy milk
• Giving the opportunity
for coffee lovers with health
issue to enjoy the taste with
healthy option
Some customer are
allergic to artificial
sweeteners
3.9mil Malaysian suffer diabetes and
19.7% adults are obese [2]

15. Implementation timeline for problem #3
Offeroptions to product
substitute – eg: stevia, non-
dairy milk
M1 M2 M3 M4 M5 M6 M7 M8 M9 M
10
M
11
M
12
1. Analyse and selectionof
suppliers
2. Getting approval
3. Contract negotiation &
agreementwith suppliers
4. Delivery of products
5. Marketing & selling new
option menu

16. Development of alternatives for problem #4
1
3 2
Less dine-in
customers due
to pandemic
outbreak
Vending
Machine
(canned
drinks)
Drive-thru
Exporting ready-to-
drink (canned ) and
premix products toa
newcountries (Middle
East & Africa)​

17. Evaluation of Alternatives for problem #4
Issues Proposed Solution Positive attributes Potential Challenges Expected revenues growth
Pandemic
Covid-19
crisis, less
dine-in
customers
1. Use vending machine in
the strategic area ( like
hospital, R&R /Mall etc.)
1a) Own a vending Machine
1b) form strategic partnership
1a. Low ownership or
capital cost (MYR 10K)
1b. Lowest cost with
potential sales at 10,000
units of vending
machines nationwide5
1a. Maintenance cost after
warranty period.
1b. Potential low profit margin
(profit sharing) or complicated
term & conditions
1a. Potential return
RM1500/m per unit of
machine.
1b. Taken 8% growth(as per
2017), MYR 34 Mil.3
2. Adopting to Drive-thru
concept
2a) Modifying existing Café
2b) Relocate the cafe
2a. comply new norm
SOP and people safety
by physical distancing.
2b. Easy to access by
consumer
2a. Require a lot of CAPEX to
modify existing café/restaurant
2b. involving relocation activity,
costly and labor constraint due
to pandemic.
The modification and
relocation with rental varies
with location. However,
based on KFC (QSR brand),
revenue is MYR 5 bil.4
3. Exporting canned
drink/premix products into
new market (Middle East &
Africa Market)
3a. OTWC strength in
HALAL products.
3b. Entering market worth
USD 22.7Bil (2019) 1
3a.-Nil
3b.-Weak consumer demand as
Middle East & Africa too
affected by the Pandemic
3b. Price of Coca-cola in
Saudi Arabia is 10x higher
than price in Malaysia.2
Taken 8% growth(as per
2017), MYR 34 Mil.3

18. Implementation timeline for problem #4
1.b form a strategic partnership -
vending Machine
M1 M2 M3 M4 M5 M6
1. Vending machine location
study (Target profit10% and cut
loss 5%)
2. Approachpotential partners
3. Contract negotiation &
agreement
4. Business modelproposalto
Senior Leadership Team
4. Start selling the ready-to-drink
productvia partner vending
machine

19. Evaluations & Control
Measurement Assessment Evaluation Contingency Plan
Sales ❑ Overall sales performance vs
projection
❑ By number or product sales for new
menu (Gourmet/ Healthy product
range) via online and take-away
order.
❑ By assessing the outlet / distribution
efficiency.
❑ Didn’t reach minimum 31%
increment of OTWC Revenue
(18Mil).
❑ Review sales projection
vs product life cycle stages.
❑ Increased promotion via live
program sponsorship
(singing competition).
❑ Sponsor/organized the online
games competition, partner
with Ministry of Sport (E-
Games).
❑ Revamping the corporate
website focusing e-
commerce.
Return on
investment
❑ To track sales by initiative. Sales of
ready-to-drink product via vending
machine.
❑ Optimizing Fb Ads & appoint
IG/influencer as brand ambassador
❑ Measure the effectiveness of the
initiative and return on
investment ROI. Can monitor
the vending sales online at
certain frequency (weekly).
❑ If the return of strategic
partnership with vending
machine supplier not good,
OTWC can try to own the
vending machine.
Customer
Feedback
❑ Online customer experience for
Gourmet/ Healthy products range
❑ Taste of each product-
❑ Quality and quantity survey, are they
worth the price paid
❑ Increment number of
followers and likes.
Smoothness of online
transaction.
❑ Product feedback form after
each purchase. To attract
feedback, offer cash back
❑ R&D for another Gourmet
and launch again another
product
❑ Tap into Vegan product or
expand vegetable product.

20. Conclusion
● Global market environment has disrupted the whole supply chain
● The covid-19 pandemic has proven that no country and no citizen is free
from the effect of this crisis.
● With the great current challenges, OTWC must adapt strategies quickly to
blooming pandemic, review strategies in post-pandemic
○ Healthier product attract more customers
○ Venture into the Gourmet Coffee business
○ Attractive online purchase method
○ Enhancing its FMCG products sectors
● Strategic vision, coupled with a compelling execution plan will ensure
business sustainability

21. References
Development of alternative #1:
[1] http://www.malaysiabarista.com/en/c/
[2] https://www.alibaba.com/product-detail/2020-New-Design-Low-Price-
Automatic_62428620258.html?spm=a2700.details.deiletai6.3.3bd37f322qvy8a
Evaluation of alternatives #1:
[1] https://www.businesswire.com/news/home/20200904005195/en/Research-Report-
Specialty-Coffee-Shops-Market-2020-2024-Increasing-Consumption-of-Coffee-to-
Boost-the-Market-Growth-Technavio
[2] https://www.reportlinker.com/p05913877/?utm_source=GNW
[3] https://www.grandviewresearch.com/industry-analysis/ready-meals-market

22. References
Evaluation of alternatives #2:
[1] https://www.globenewswire.com/news-release/2020/10/07/2104749/0/en/Malaysia-Gift-
Card-and-Incentive-Card-Market-Intelligence-and-Future-Growth-Dynamics-Report-
2020.html
[2] https://datareportal.com/reports/digital-2020-
malaysia#:~:text=There%20were%2026.00%20million%20social,at%2081%25%20in%20January
%202020.
[3] https://www.researchandmarkets.com/reports/4854610/malaysia-food-and-beverages-
market-size-share
Evaluation of alternatives #3:
[1] [https://www.thesundaily.my/archive/malaysia-ranks-third-global-vegetarian-index-
KTARCH496560
[2] https://www.theborneopost.com/2020/06/23/obesity-overweight-rates-remain-high-in-
malaysia/

23. References
Evaluation of alternatives #4:
[1] https://www.marketdataforecast.com/market-reports/mea-carbonated-soft-drinks-
market
[2] https://saudi.desertcart.com/products/48656826-coca-cola-bottle-500-ml-pack-of[-]24
[3] http://www.insage.com.my/BursaNews/Attachment/201707/20170731/OLDTOWN-
AN20170731A1-1.pdf
[4] https://www.nst.com.my/business/2018/08/405696/qsr-brands-targets-rm5b-revenue-
year
[5] http://www.atlas-vending.com/news.asp

24. ~Aroma of a good times~
Thank you