old town marketing assignment

1. FACULTY BUSSINESS AND ENTREPRENEURSHIP
AFT 1053 MARKETING
GROUP ASSIGNMENT – MARKETING PLAN
GROUP TUTORIAL : L8T4
LECTURER NAME : MISS NURUL HASLIANA BT HAMSANI
GROUP MEMBER :
NO NAME MATRIC NO SIGNATURE
1. WINNIE OOI YE SIM
2.
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2. TABLE OF CONTENTS
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3. Acknowledgement
First and foremost, we would like to thank our lecturer, Miss Nurul Hasliana for
advising and supporting all of us continuously during development on studies in
marketing plan. Without her supervision and constant help in this assignment would not
have been possible.
Apart from that, we also would like to thank to our team members by committing
in discussion, analysis, searching to produce the paper work and cooperating in
presenting the marketing plan assignment in the subject AFT 1053 Marketing.
Last but not least, we thank to out university Malaysia Kelantan provided
resources in library to easier our way to research and convince us to complete this
assignment with complete facilities in school .

4. 1. EXECUTIVE SUMMARY
The history of Oldtown White Coffee (OTWC) began in 1999, the co-founders and
Executive Director are Mr Goh Ching Mun and Mr Tan Say Yap. Nowadays, Oldtown
White Coffee is the largest kopitiam restaurant chain and classic coffee shop in
Malaysia. Its main headquarters is in Ipoh, Perak, Malaysia.
With the love and passion to make and serve good coffee to household and food
& beverage service industry line, they success created their own blend of Oldtown 3-in-
1 instant white coffee. Oldtown White Coffee have also expanded and export their 3 in 1
White Coffee into 13 oversea counties which included Hong Kong, Singapore, China,
India and Indonesia. In 2005, Oldtown expanded into the food service sector with the
opening of a chain of café outlets based on the traditional Ipoh coffee shop setting and
ambience under the brand name "Oldtown White Coffee". In late 2009, the first oversea
Oldtown White Coffee café was set up in Singapore.
After the initial oversea market, they also commercialized products in United
States, Canada, UK and other countries as shown in Figure 1.0. Now United Kingdom,
United States and Australia are selected as the potential markets for the company’s
expansion plan to start up new overseas chain shops.

5. Figure 1.0
Currently, Oldtown White Coffee outlets in the peninsula of Malaysia have
achieved 100% Jakim Halal recognition and certification in their products to make futher
into the halal market. In a particular Oldtown White Coffee café outlet, they not only sell
the coffee but also provide Malaysia’s local traditional food such as Nasi Lemak, Hor
Fun that would not found in western style coffee shop like Starbucks and Coffee Bean.

6. 2.1 MARKET DESCRIPTIONS
Oldtown White Coffee café is a famous chilling place for younger, business
partner and family. This is because the places provide good taste of white coffee and
customer will also able to taste the pure and oldest white coffee, toast, curry mee, Nasi
Lemak and also Ipoh chicken mee( Hor Fun). For people that used to have breakfast,
usually they will drop by to the shop and have a taste with the coffee. This is because
the shop has a good environment and good serving as well, importantly the drink and
food are really in good.
In Malaysia, the target segmentation is categorized into 30% of students, 40%
worker and 10% of senior citizens and 20% of family. The needs between these
segment groups are diverse. Students are seen as low income people, thus menu items
include affordable prices for them and the free Wifi is also one of the factor that
encourage them to visit Oldtown White Coffee café. This is because they can surf the
internet to do their assignment. While workers are considered as income earners and
come in groups and have limited time to enjoy their meal. On the other hand, senior
citizens come in for the purpose to spend their leisure time and enjoy the taste of coffee
and the traditional food. While the set menu are provided for family which provide them
the variety food with acceptable price.

7. Target Segmentation
Family
20 %
Senior
Citizens
10%
2.2 PRODUCT REVIEW
Students
Workers
Family
Students
30 %
Workers
40%
Oldtown White Coffee café is very convenience to consumer who can taste the
variety of local traditional food in a place. Consumer also can take a break from their
everyday hustle and bustle with a relaxing time at Oldtown White Coffee café. It is also
a relax and savor good times with the beloved ones with all the favourite drinks.
The key product of the Oldtown White Coffee café is the coffee product line.
They offer 3 different coffee classes which is Oldtown White Coffee, Oldtown White
Coffee Hazelnut and Oldtown Nan Yang Coffee O. The original white coffee is come
from Ipoh. They serve the fresh and true product to the customers and make sure
customers feel the best taste from the white coffee and bring out great memories and
set the atmosphere for joyful moments and happy times.
Besides that, the Oldtown White Coffee café also sell the Malaysia’s food such
as ‘Rendang Chicken Rice, ‘Chicken Hor Fun’, ‘Nasi Lemak’ and so on. While the local
flavors and sweet delights include ‘Signature toast’, ‘Savoury starter’, desserts and
others. Beverages included the series of origin white coffee, old town iced cold coffee
and tea, smoothies and so on.

8. Last but not least, in their café chain also provided set menu, from opening to
11am have Mybreakfast set, 11am – 3pm have Mylunch Set, 3-6pm MyTea set, 6-9pm
Mydinner set and 9pm to clossing time have Mysupper set.
The below pictures are famous food and beverage that customer prefer to order.
Oldtown White Coffee is the signature café that customer’s favorite drinks.

9. Nasi Lemak is the local traditional food in Malaysia.
Hor Fun is the Ipoh famous noodle that prefer in the Chinese segmentation.
2.3 COMPETITIVE REVIEW
Even though there are many well established brand shops in the current market
such as KFC, McDonalds, The Coffee Bean, it’s relatively to say that the main
competitor for Oldtown White Coffee café is Hometown Hainan Coffee. Hometown
Hainan Coffee product line almost same with Oldtown White Coffee café but the only
one not same is idea of selling.
Old Town White Coffee have pricing advantages over his rival in the market with
it international standard. Compare to Hometown Hainan Coffee, OTWC have
established their outlet not only at Malaysia but oversea like Hong Kong, Indonesia and
Singapore and so on, this means that their product standard is in accordance with

10. international standard and acceptable by oversea country. Other than that OTWC also
stronger reputation than Hometown Hainan Coffee, OTWC have been invited to EXPO
Shanghai at 2010 to representative Malaysia to promote their product, it will be
promoted to be whole world and make their business success than Hometown Hainan
Coffee that just only having their business in Malaysia.
Old Town White Coffee also have competitive advantages over their outlet place,
OTWC they aim to establish their café at high people traffic location and it consists of
many outlet in many country other than Malaysia. OTWC customer is more convince
and easy to get to their outlet than Hometown Hainan coffee café. OTWC branches
often establish at more strategic places such as shopping mall, food and beverage shop
let area, peak working and student area so it take over the HHC which is at far-off area.
OTWC establish their branches not only in Malaysia but also oversea such as Hong
Kong, United State , United Kingdom and so on it means that when some Malaysian
that staying at oversea want to try or eat Malaysian food they can visit to branches at
oversea.
Old Town White Coffee have some special set menu that didn’t provide by their
rival Hometown Hainan Coffee, Although OTWC café ala carte item will have higher
price than their rival but OTWC café have release Set Menu meal to their customer.
This set menu is from time to time, it consists of four section: My Breakfast, My Lunch,
My Tea and My Supper. This set menu is to help customer easy to choose their food
and beverage during that time and provide cheaper price if order in set, it gain higher
competitive advantages over Hometown Hainan Coffee which just contain of normal
and original menu.
Old Town White Coffee also consists of difference type of strategic in selling their
business, they not only selling their coffee on their café but they also sold the instant
pack of coffee so that they can let their supporter not only can enjoy their coffee at their
café but also can enjoy at their house. This may gain more market share compare with
those café do not have instant pack of coffee, because when the customer buy the
instant pack of coffee they will have it at home and other competitor business will
reduce.

11. 3.0 SWOT ANALYSIS
Strengths
Oldtown White Coffee maintain their company growing by having high profit
compare to other coffee café in Malaysia, This show that they have higher market share
value than their rival.OTWC café Offer variety of food such as Asia food and Western
Breakfast, it shows is speciality and provided many choices for their customer. OTWC
launch their business way by having franchise, so that it help their company more easy
to expand not only in Malaysia but also oversea, other than that it has graters coffee
café outlet throughout Malaysia, Singapore and Hong Kong.
WEAKNESS

12. Oldtown White Coffee is too narrow their production line, OTWC are just only
depends on their coffee product but does not develop or diversify their product. OTWC
lack of innovation in their product and they carrying slow development in their product. It
may cause their business grow stop on the stages because of no innovative idea. Other
than that OTWC have too many branches so that may cause their food control quality a
problems, it is also hard for them to train their employee to cook the exactly same taste
food in certain outlet so It will bring down their quality of café.
OPPORTUNITIES
Oldtown White Coffee take the opportunities as Malaysia is a part of ASEAN
country, It help their product to develop into global market by introduction through
ASEAN. In contract of ASEAN country reduce the limitation of OTWC to develop in
oversea country so that it easier their business to establish to global compare with
business organization which is not from member of ASEAN country. OTWC is able to
rebrands and compete with other company using the same material, they can sell huge
quantity of their coffee bean to smaller scope of company, it will help their sale increase
by having this business modal.
TREATS
OTWC face the limitation for them expend to market such as US and Europe
country because have too strong rival such as Starbucks, Starbucks having higher
reputation in world and higher amount of capital to expand than OTWC. OTWC facing a
treat which is having very high product imitation this is because they are using coffee
which is very common, so it may cause them to have many competitor and reduce their
market share in the global.

13. 4.0 OBJECTIVE & ISSUES
Goal
• Is to let everyone to enjoy every sip authentic Malaysian Ipoh White Coffee anytime
and anywhere.
Vision
• To be Asian Pacific’s Leading White Coffee producer providing high quality
products to customers globally.
• Old Town White Coffee vision is mostly highlighted to promote their unique Taste and
to deliver their best. To promote our unique Malaysian Taste – the authentic Ipoh White
Coffee and Continue White Coffee Legacy through continuous improvement and
innovation that exceeds customers expectation”
• “As Market Leader, we take pride in distinguishing ourselves to be ahead
of the pack. By setting precedence, we have made a standard that equals
excellence, pushing other brands to do the same”
• “We strive for continuous improvement, incorporate innovations and
technology in our commitment to create customer value in our both products and
services”
• “Aligned with transparent policies and achievable targets, together with
our core values, we are able to move forward as one responsive team and deliver
our best””
Mission
• To promote the unique Malaysian taste the authentic Ipoh White Coffee.
• Standard that equals excellence
Issues
• Oldtown White Coffee does not serve any non-halal food products or alcohol. All their
supplies are provided by suppliers with Jakim recognized certification, who are required
to produce valid halal certificates for every item supplied .

14. 5.0 MARKETING STRATEGY
Old Town’s marketing strategy is based on the distinguished needs between
segment groups are diverse. Students are seen as low income earners, thus menu
items include acceptable prices for them. While workers are considered as income
earners and come in groups and have limited time to enjoy their meal, this also has to
be taken in to account. Local delicacies are included in the menu to suite the likings of
old timers, while set menu’s are provided for families.
Positioning
Old Town always advertise their product with slogans like “Malaysia’s No.1
confirms best White Coffee”. They also expanded from small spaces and only selling
few selection of foods by serve more variety in food and beverage , upgrading services ,
and creating nostalgia as well as being chic and contemporary to enhance experience .
nowadays new customers easily remember Old Town is associated with White Coffee
and it has been observed that new customers order classic drinks ,white coffee.
Product strategy
Old Town serve the original coffee from Ipoh . They serve the fresh and the true
product for customers and make sure customers feel the best taste from white coffee .
The food line of products has local , classic and sweet delights alongside hot and
cold beverages . Old Town offer wide variety of products , food , and beverages for their
customers .
Examples of their product is OTWC 3 in 1 blend , Nan yang White Coffee ‘O’ ,
simple pure white coffee easy to drink product . Examples of food line product for
classic dishes for the customers who need a normal component meal just like “Rendang
chicken rice “ , “chicken hor fun “ , “NasiLemak “ special and so on . Local flavor and
sweet delights include “Signature toast “ , “savoury starter “ , desserts and others .

15. Beverages include the series of origin with coffee , old town iced cold coffee and tea ,
smoothies and so on .
Old Town also established as a brand itself and have attractive packaging as their
product strategy .
Pricing strategy
Price does affect customers’ choice on products or services . Customers are
willing today more because they price means higher quality one brand offer . In brand
competition , the best price any brand can offer is important yet they have to create bad
consequences for long-term . The higher price means the higher quality one brand
offers .
Price being key and initial factor for customers would consider .Old Town pricing
is reasonable and acceptable .The example price that Old Town offered for customers
is White Coffee is RM2.00 , Prawn Mee RM6.90 and Noodle Set is RM4.90 .
Moreover the promotion packages are economical compared to ordering single
items from the menu . A very good example is the breakfast set which includes one
coffee , half boiled egg and toasted wholegrain bread with golden melted butter, priced
at RM4.50 add one more ringgit and the customer can choose a drink either white
coffee or ice lemon tea .
More pricing strategy was to be seen as reviewed the promotions . The 3pm-6pm
promotions offers 20% discounts on certain items , while other pricing promotions
include the “buy one get one free” and lower price being offered to student .
Distribution strategy
Distribution could be defined as the process of getting products and services from
the firm into the hands of customers (Griffin & Pustay 2010, p500). Distribution is
another issue that need to be taken into consideration as the new company is trying the
expand in a national wide scale in the largest coffee market in the world. For many
products such as the authentic white coffee which are produced in the Malaysian

16. manufacturing center could to be transported to the US by airplane to reduce the
international order cycle time. They regularly exporting quality white coffee to worldwide
and ensure the products are widely available .
Marketing Communication Strategy
The marketing communication strategy for Old Town White Coffee is raising
awareness of the product in target market is where sales begin, and this is where
marketing communications activities begin the selling process. With today’s multiple
channels for content to reach potential customers, the art and science of marketing
communications has become increasingly important. However, no company can be sure
they are using the most efficient media mix without creating a macro strategy that is
aligned with their overall strategic marketing direction .
Old Town make an advertising such as Old White Coffee 3 in 1 and Old Town
White Coffee-Marathon . By integrating all message in media , Old Town will reinforce
brand name and points of product differentiation . Research about media consumption
pattern will help advertising agency to choose appropriate media and timing to reach
prospects before and duration product introduction .