This document proposes developing a cafe, restaurant, and event venue on a 1.62 acre plot of land in USJ 16, Klang Valley, Malaysia. It analyzes the market potential by examining the area's demographics, consumers' preferences for dining out and coffee, and lack of similar offerings in the township. The proposed development aims to become a community gathering space by offering al fresco dining, preserving existing trees, and hosting events. Its strategic location, design connecting indoors and outdoors, and diverse facilities are expected to attract local residents and differentiate it from competitors.

1. School of Architecture, Building and Design | Bachelor of Quantity Surveying (Honours) | Development Economics
QSB60303
MARKET RESEARCH
Proposal for development in the area of Klang Valley
Wan Yee Len 0330764

2. Assumption made there is no occurrence of the COVID-19 pandemic.

3. Table of Contents
Proposed project detail Geographical area
Project location
Site information
Surrounding properties and facilities
Project background
Project objectives
Project design
Project layout
1
2
3
4
5
6
7
9
Market assessment Market segmentation
Market targeting
Prospective consumers’ information
Pricing trend
Competitor analysis
Business opportunities
Market strategy
10
12
13
15
17
19
21
Conclusion 23
References 24

4. Proposed project detail
Geographical area
SUBANG JAYA
3.049440°N 101.587054°W
The urban conglomeration of Klang Valley includes the city of Subang Jaya. Within 40 minutes of driving
time, making the commute back and forth to the Kuala Lumpur city centre much accessible, as it is located
approximately 20 kilometres away. Subang Jaya is a desired development area considering its convenience
at fingertips. It is a self-contained hub of education, entertainment, shopping and living. Currently in the
year 2020, the population demographic of Subang Jaya is 708,296 based on projections of GeoNames data.
Ranked at 5th
among other cities in Malaysia, Subang Jaya is being recognized as a city with wide-spectrum
of development opportunities.
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5. Proposed project detail
Project location
Upon searching for a strategic location for development,
the township of USJ served as the primary consideration
in view of its potentiality and opportunities—the
township caters to the more affluent crowd as observed.
Withal, a piece of land is found vacant in USJ 16,
between Jalan USJ 16/2d and Jalan USJ 16/2f. The area is
easily accessible through several expressway including
the NKVE, North-South Expressway, KESAS, LDP and
NPE Expressway, while the nearest public transportation
serving the area include bus and metro LRT USJ 21.
1.62
acres
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6. Proposed project detail
Site information
Landform of the proposed site is plain (flat and
level), thus making it considerably suitable and
desirable for development. Existing trees on
the site are plotted on the boundaries without
causing high degree of obstructions. In
essence, it is a commercial land with freehold
tenure. As of listings to date, the land is priced
at the range of RM190 - RM250 per square feet.
While cost of development of commercial
property is at the average of RM456 per square
feet, based on recent transactions recorded
within USJ 16.
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7. Proposed project detail
Surrounding properties and facilities
Adjoining with USJ 17 and USJ 18, the residential area serves a
large community comprising landed houses of terraces, semi-Ds,
bungalows and also low-cost apartment. On that account, first-line
consumers are guaranteed as originate from residents of the
neighbourhood.
Within the vicinity of the proposed location, there are shop lots,
preschool, Caltex service station, health center and recreational
park. In addition, USJ 16 is in close proximity with plenty of
facilities including shopping malls, hypermarkets, houses of
worship and private hospitals, which are easily accessible within
adequate driving distances.
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8. Proposed project detail
Project background
As prior mentioned, the proposed location for development is surrounded with shop lots of variety serving residents of the neighbourhood. It is
evident that such facilities have aged over the years since the construction of USJ in 1988. Additionally, these shop lots have been offering consistent
services as long as it has been established, regarding as true that residents are accustomed to them. Adapting to the modernization of Klang Valley
and people’s needs of quality life standards, the concept of development is conscientiously planned.
Existing shop lots next to proposed site location
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9. The proposed development is
centralized on creating a centre of
society, in which the property acts as
a meeting ground.
It is also ideal for individuals to visit
and rest for long hours on their
laptop while drinking coffee.
All in all, the proposed development
aims to contribute an improved
lifestyle of residents, while
correspondingly benefit surrounding
properties with enhanced value.
Proposed project detail
Project objectives
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10. Proposed project detail
Project design
The building is set to create a connection with nature and the
outdoors by having large windows throughout, mezzanine
platforms offering al fresco dining and open access to the
greenery—thereby preserving existing trees of the site.
n close proximity with plenty of
facilities including shopping
malls, hypermarkets, houses of
worship and private hospitals,
which are easily accessible within
short driving distance.
One with the
trees
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11. Proposed project detail
Project design
Outdoor
dining
space
Indoor
dining
space
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12. Proposed project detail
Project layout
Main building
The space houses cafe and restaurant in an open plan
with sufficient room and seatings to accommodate
visiting groups of any size. Glazed elements enveloping
the building gives harmonisation with outdoors and
the impression of dining in a pavilion or garden.
Parking lot
Half the site area is designated for parking
space, thus ensuring sufficient access for
visitors. It can further be portioned out to
serve as additional event venue.
Event venue
Courtyard accessible for bazaars, celebrations, busking
performances and even flea markets as such playing the
role of a cultural place.
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13. Market assessment
Market segmentation
Geographics
Besides the centralized zone of USJ 16 as proposed, urban landscape
of the area is strategic considering its close vicinity to USJ 17 and
USJ 18 which are as well considered as residential precinct.
Demographics
In reference to the built year of the township since 1988, the
demographic profiles of the specified areas are presumed between
the range of 20s and 50s, such that the majority are long-established
families with children already in their teenage years. According to a
statement by Yap Yun Fatt, Subang Jaya municipal councillor, USJ
residents are young wherein the generality are in the 30s and 40s.
Further, latest transactions in 2016 with regards to purchasing
property in the three areas specified demonstrated the prospects of
young millenium families.
Gradeschooler
5-12 Years
Teenager
13-18 Years
Adult
19-40 Years
Middle age
41-65 Years
Demographic distribution
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14. Market assessment
Market segmentation
Psychographics
The common thread that ties Malaysians of all races together is
food, and by extension, drinks too. Accordingly, the
coffee-drinking culture is not alien to many since the existence of
Chinese kopitiam in early days as well as the ‘yum cha’ culture.
And by record, the average Malaysian is said to consume about 2.5
cups of coffee a day. Marcus, coffee professional, considers that
Malaysia has entered into third wave coffee movement, in which
people are beginning to appreciate it. Further, publicist Joachim
Leong accords that, “People are interested to hang out at places
that are like an extension of their lounge.” Hence, it is unsurprising
to find old generations taken visits to cafes, whereby places of such
dedicated in offering laidback and comfortable environment.
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15. Market assessment
Market targeting
Prioritization of target consumers
Generally, the target market for FnB businesses
is not specific because it seeks to tap into as
many consumers as possible. To date,
millennials represent the largest and most
influential consumers, thus indicated as the
prioritized group, followed by the Gen Z.
Correspondingly, decisions with regards to
running the business are chiefly in compliance
with quality standards and lifestyle preferences
of aforementioned consumers. Besides,
business strategies are further considered in
accommodating consumers of middle age and
gradeschooler to realize the aim of creating a
community space.
Gradeschooler
Middle age
Teenager
Adult
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16. Market assessment
Prospective consumers’ information
USJ is officially known as an affluent township. In reference to the prices of nearby properties (by 1 kilometre), it is demonstrated that the
neighbourhood of USJ16, as well as adjacent areas of USJ 17 and USJ 18 serve residents of diversified classes from low to high income.
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17. Market assessment
Prospective consumers’ information
The Consumer Price Index (CPI) December 2019
registered an increase of 0.7% as compared to 2018.
The categorized group of ‘Food & Non-Alcoholic
Beverages’ ranked in second as contribution to
increment of the overall index. Analyzed on a monthly
basis, CPI rose by 0.2% as compared to November 2019,
which was mainly driven by ‘Food & Non-Alcoholic
Beverages’ (0.5%) and ‘Restaurants & Hotels’ (0.2%).
While in the context of CPI by state, Subang Jaya as a
city in Selangor contributed 2.1% as indicated in the
Chart. Thence, the FnB industry evinces increase
momentum for years to come. To summarize, not only
do millennials, people born in between 1980 - 2000 has
strong preference to dining out due to the value of
convenience and experience.
Annual Percentage Change for Food & Non-Alcoholic Beverages by State,
December 2019/December 2018
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18. Market assessment
Pricing trend
A survey is conducted upon trending cafes in the USJ township.
The outlay of an individual at a cafe is considered above the average spending on dining out at casual restaurants. Notwithstanding, people are
willing to pay top dollar for the optimal experience, certainly on the premise of quality-meal offered and favourable environment.
RM5 - RM15 RM20 - RM30
Average
RM25
per person
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19. Market assessment
Pricing trend
A supplementary element of the
proposed development is the event
venue, whereby it serves the
organization of celebrations and
functions. As such, a considerable
factor is space rental to artisans,
musicians and any relevant parties.
Performers
Average hourly rate: RM75
Booth rental
Rental per day: RM90 - RM130
Rental per weekend: RM220 - RM280
Provided with equipments include
tables, chairs, and table cloth.
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20. Market assessment
Competitor analysis
Existing competitors
(indicated in red)
Adjacent to the proposed site,
there are two rows of shoplot
which include casual dining
services. Among the restaurants,
there are a few offering similar
scale of a cafe.
Impact on target consumers
(indicated in yellow)
Residents from the neighbourhood
may find the new development
another cause of road congestion,
provided it is a persistent issue
within the area. On the contrary,
some may see it as a positive light
considering the distance is within
reach, as residents no longer need
to drive miles beyond the locality
for a cafe visit.
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21. Existing competitors
(adjacent to proposed site)
Market assessment
Competitor analysis
Permanently closed
Cuisine Western Western Local and Western
Average per pax RM30 RM25 RM20
Business strategy Offers venue for celebrations with
designated meal plans to choose upon.
Limited menu options with maintained
food quality, described as “fine dine”.
Providing free of charge refreshment.
Suit general palates of the locals with
affordable price.
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22. Market assessment
Business opportunities
Existing commercial activities available within
the area are standardized as general and
conventionally operated. In addition, these
operations are confined between
brick-and-mortar shops with limited retail
space, thus creating an impression of
captivity. Opinions reviewed by patrons of
these restaurants condensed the surrounding
environment of quiet and calm, while the
downside regardingly is the narrow space.
On the contrary, the proposed site of 1.62
acres in housing the cafe is sufficient to
accommodate visitors, at the same time,
sustaining comfortability. The key element to
the
The proposed development flourishes in the
merger of entertainment and events whereby
not benefited from any retail within the area.
Live bands and busking performances
exhibit the appreciation of youth culture and
build the enjoyment of listening to music. Of
course, quality is critical to satisfy listeners
and retain consumers’ loyalty. Thus, buskers
are necessary to undergo a registration
procedure in preserving professionalism.
the proposed development is the connection
to outdoors, as strategically incorporated
within design features. This further
demonstrates creativity and innovative ideas
of preserving existing trees on the site. Given
that the surrounding environment is ideal to
consumers, al fresco dining bestowed offers
a fresh yet optimal experience.
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23. Market assessment
Business opportunities
In 2018, Artbox Bangkok made advances into Malaysia
for a two weekend running creative market. The
assembly garnered overwhelming responses, and due to
the large influx of visitors, it returned in 2019 with
more retailers and vendors than the first edition. The
success of this assembly is then viewed as an
opportunity relating to consumers’ preferences.
Spaciousness of the proposed site and designated event
venue are planned for such functions, although not as
extravagant, but a degree of attention can be
forecasted. All things considered, the proposed
development is unique and agreeable in a way that it is
not just the operation of FnB business, rather than
housing leisure, hospitality and entertainment under
one roof.
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24. Market assessment
Marketing strategy
Pricing
Cafe restaurant is generally known for its
high-priced food, hence causing some to be
reluctant as a dining option. Evaluation of
existing competitors demonstrated that their
price points are above average. All things
considered and based upon competitive
pricing strategy, it is best to establish prices at
the same level. As either options are being
compared, consumers are susceptible to make
decisions on the basis of better environment
and optimal dining experience.
Advertising
Accordingly, patrons of adjacent restaurants
that reside beyond the township finds it
challenging to locate, therefore such
operations are not known by many. To
maximize the business, advertising tools
such as social media is essential.
Establishment of web page on Facebook and
Instagram creates a platform to advertise the
business as well as promote interactions
among consumers with regards specific
celebrations, events or functions.
Operating
Majority of the cafes in Klang Valley are
operated in short hours and five days a week.
The proposed development ought to change
the “tradition” and be one of the firsts to
operate from morning until past midnight,
seven days a week. It seeks to accommodate
the convenience-cravings of consumers and
thrive as the prioritized lifestyle destination.
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25. Market assessment
Marketing strategy
Outreaching
Not only will the cafe restaurant embraces
coffee culture and markets solely in such way,
the operation as well aims for inclusion of
different demographics, specifically the
groups of non-coffee drinkers. Hence, the
menu will include alternatives of teas, fruit
concoctions, chocolate based drinks and more.
Such variety will certainly be advantageous to
the business.
Refreshing
Specialty of the proposed development is the
incorporation of art and music culture.
Organizing a ‘pop-up of the month’ bazaar
with different themes will guarantee visitors
to have something new to look forward to.
While celebrations such as New Year,
Halloween and Christmas held is able to
promise a family-friendly business.
Appreciating
The operation is complimentary for visitors
to register as member without additional
fees. Benefits and privileges are offered when
specific milestones are achieved. As an
expression of gratitude towards their loyalty,
members will be entitled to a one-time 50%
off for any consumption during their
birthday month.
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26. Upon conducting market research towards the
development plan, it is acknowledged that the proposal
is viable considering the neighbourhood of USJ 16, USJ
17 and USJ 18’s demographics, specifically the
prioritized group, shared a lifestyle pattern of focusing in
socialization and convenience, notwithstanding
Malaysia’s long-established coffee-drinking culture.
Further, it has been evaluated that development of such
that encapsulate leisure, entertainment and hospitality at
a one-stop venue is scarce within the township of USJ.
Hence, it can be affirmed that the proposed development
will attract attention as a brand building and even
prosper as a landmark of the USJ township.
Conclusion
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27. References
ArchDaily. (2017, February 22). Shenzhen Maoshuli Cafe / Elsedesign. Retrieved from ArchDaily Web site:
https://www.archdaily.com/805766/shenzhen-maoshuli-cafe-elsedesign
Huong, T. (2005, December 10). It feels good to come home to USJ. Retrieved from TheStar Web site:
https://www.thestar.com.my/news/community/2005/12/10/it-feels-good-to-come-home-to-usj
Perfect Daily Grind. (2017, May 17). Malaysian Coffee Pros Explain The Third Wave. Retrieved from Perfect Daily Grind Web site:
https://perfectdailygrind.com/2017/05/malaysian-coffee-pros-explain-the-third-wave/
Ragavan, S. (n.d.). KL's third wave coffee: The trends and the cafés. Retrieved from TimeOut Web site:
https://www.timeout.com/kuala-lumpur/food-and-drink/kls-third-wave-coffee-the-trends-and-the-cafes
Razak, M. Y. (2020). Consumer Price Index Malaysia December 2019. Press Release, Department of Statistics Malaysia. Retrieved from
https://dosm.gov.my/v1/index.php?r=column/pdfPrev&id=Q2JUS1o2YTZ1N3lqaVEvMTd6U0E5dz09
StarProperty. (n.d.). Property Insights & Reviews : USJ 16. Retrieved from StarProperty Web site:
https://www.starproperty.my/selangor/subang-jaya/uep-subang-jaya/usj-16/property-insights/1442
The Sun. (2017, May 11). Time for a break. Retrieved from pressreader: https://www.pressreader.com/malaysia/the-sun-malaysia/20170511/281870118356282
World Population Review. (2020). Malaysia Population 2020. Retrieved from World Population Review Web site:
https://worldpopulationreview.com/countries/malaysia-population/
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