J.CO Donut & Coffee Marketing Presentation

1. ZULFADLI BIN YUSMAR 4151004191
ZULKARNAEN BIN ZAINAL ABIDIN 4151006631
MUHAMAD SHAFIQ BIN AMSIR 4151002751
NUR LIYANA INSYIRAH BINTI SAAYA 4151006601
AKMAL SYAFIQ BIN MOHARMI 4151003831
NUR ELYANA ZALINI BINTI AHMAD ZULHILMI 4151006131
MUHAMAD AZLIE BIN MOHD AZZHAR 4151003941
NIK MUHD HANIF FATHI 4154009731
PRINCIPLES OF MARKETING | JMS

2. • J.CO Donuts & Coffee is a franchise
of café restaurant chains best
known for their tasty donuts, coffee
and frozen yoghurt.
• Owned and managed by the Johnny
Andrean Group
• Started in Indonesia over 10 years
ago on June 26th, 2005
• Today – 187 stores in Indonesia, 12
in Malaysia, 38 in Philippines, 6 in
Singapore
EXECUTIVE SUMMARY

3. • Chain of J.CO Donuts &
Coffee in Malaysia
consisting of 11 stores, 4 in
Johor Bahru, 3 in Selangor,
& 1 each in KL, Melaka,
Penang, Seremban
• First store in 2007
• Products range from 26
different flavors of donuts,
beverages such as coffee
and frozen yoghurt
MAIN FOCUS

4. • Current Marketing Situation of J.CO
• SWOT Analysis of J.CO
• Objectives and issues faced by
J.CO
• Marketing entry strategy especially
into the Malaysian market
• Action program displayed in a
Gantt Chart
• Budget for marketing
• Marketing controls done by J.CO
OVERVIEW

5. MARKET ENVIRONMENT
Market Description
Product Review
Competition
Distribution

6. •J.CO Donuts & Coffee, Krispy
Kreme, Dunkin’ Donuts, Big Apple
Donuts and Coffee.
•Local and international
•Industry : Café Shop
•Product : Donuts, Coffee and yogurt
•Through Store and outlet branches
MARKET DESCRIPTION

7. • Main product : Donut, Coffee and Yogurt
• 28 flavors (Variety type and taste)
• Hot and cold beverage (Coffee & Frappe)
• Price range of Donut
o RM 2 – 4 (ala carte)
o RM 14-18 (Set)
• Price range of Beverage
o RM 8 – 17
• Using an uniqueness name – ‘Tira Miss U’
PRODUCT REVIEW

8. •Company that sale Donut and Coffee in
Malaysia :
 Krispy Kreme, Dunkin’ Donuts, Big Apple
Donuts and Coffee.
•Different ingredient, quality, and price range.
•J.CO Donuts & Coffee price range is the
highest
COMPETITION

9. • Distribution Channel :
Store Branches and
Outlet
• 260 J.CO Donuts &
Coffee outlet around Asia
Malaysia [2007]
Singapore [2008]
Philippine [2013]
• 11 outlet in Malaysia
DISTRIBUTION

10. MARKETING ANALYSIS
Market Segment
• Geographic
• Demographic
• Psychographic
• Behavioural
Target
Market
Positioning

11. • Urban environment
• Mega Mall with positive
background
• 11 J.CO Donuts & Coffee
café in Malaysia
• Johor Bahru [4]
• Selangor [3]
• Kuala Lumpur |
Seremban| Penang |
Melaka [1]
Johor Bahru
37%
Kuala
Lumpur
9%
Melaka
9%
Penang
9%
Selangor
27%
Seremban
9%
Geographic segmentation
by state
Johor Bahru Kuala Lumpur
Melaka Penang
GEOGRAPHIC

12. Low Income
Rate
20%
Medium
Income Rate
35%
High Income
Rate
45%
Demography segmentation by
customer's income status
Low Income Rate Medium Income Rate High Income Rate
• Price range of J.CO
Donut & Coffee product
• Teenagers – Senior
Citizen is group of
customer that J.CO
Donut & Coffee focusing
• Provide variety type of
food that suitable for
stage of age
DEMOGRAPHIC

13. • Knowing customer’s
personality and life
style
• Malaysian people are
crazy about foods
and dessert
• Life style of having a
meal at café
Urban Area
70%
Rural Area
30%
Psycographic segment based on
J.CO Donut & Coffee
Background
Urban Area Rural Area
PSYCHOGRAPHIC

14. • Consumer needs
• Provide variety type of foods and
beverage that can satisfy
customer
• People are love café that have
relaxing ambient and good
environment
• High quality of foods that has
been prepared with good hygiene
level
BEHAVIORAL

15. • The characteristic of J.CO Donut &
Coffee’s customer
a) Age : Teenagers – Senior Citizen
 Suitable foods and beverage
b) Income Status : Medium to high
rate of income
Pricy but come with high quality
product.
c) Peoples that love snack
TARGET MARKET

16. • To attract customer
attention and interest
J.CO Donut & Coffee
maintain and ensure that
their food are in a high
quality.
Giving a great and fast
service
Priorities the hygiene
level
POSITIONING

17. SWOT ANALYSIS
Strength Weaknesses Opportunity Threat

18. STRENGTH
J.CO DONUT &
COFFEE
DUNKIN’ DONUT STRATEGY
• Quality donut
• Innovation with their
product line
• More to relax and
family concept
• Change new donut
every 2 hours
• Lower price than
competitor
• Selling fast and good
coffee at good value
• Price: Price skimming
strategy
• Product: All ingredient
are import
• Promotion: Attractive
offer during festive
• Place: High class

19. WEAKNESSES
J.CO DONUT &
COFFEE
DUNKIN’ DONUT STRATEGY
• Lack of promotion
to develop more
loyal
• No online ordering
or delivering
• Expensive product
• Lack low calories
options
• Lack of marketing
effort
• Using social media
for promote
• Strong marketing
strategy/analysis

20. OPPORTUNITIES
J.CO DONUT &
COFFEE
DUNKIN’ DONUT STRATEGY
• Further expansion
in new location
• Wide range product
more preferred by
consumer
• Offer attractive
promotion and offer
• Online sale
• Menu
diversification
• More strategic
place for new outlet
• Changes in social
pattern and lifestyle

21. THREAT
J.CO DONUT &
COFFEE
DUNKIN’ DONUT STRATEGY
• Number of
competitor
• Changing taste of
consumer
• Equipment
breakdown
• Number of
competitor
• Unhealthy lifestyle
• Maintain product
quality
• Produce new flavor

22. VISION & MISSION
Peacock on J.CO Donut &
Coffee logo represents
their corporate Vision &
Mission

23. VISION
 To establish J.CO Donuts &
Coffee as the foremost
International Premium Donuts
and Coffee brand.
 To be the trend-setting lifestyle
in the Donuts & Coffee
industry.
 To be the right company for
the right people who want to
achieve their dream.

24. MISSION
 To provide premium quality donuts &
coffee
 To encourage people to attain their dreams
 To put customers as our first priority
 To commit ourselves in giving excellent
service sincerely
 To provide perfect locations for hanging
out

25. OBJECTIVES
• J.CO Donuts & Coffee plans to grow the number of
customers by 25% by the end of 2015
• They plan to also Increase revenue from existing
customers by 30% in 2 years
• To widen their franchise reach by opening 2 more outlets
in Kedah and the East Coast by 2016

26. ISSUES
J.CO Donut & Coffee did have an
issue about several thing such
as shortage of workforce in
Malaysia and the imported
ingredient are whether damage
during shipping or held by the
authority for a long time until the
ingredient is unusable

27. MARKET ENTRY STRATEGIES
FRANCHISING
STRATEGY
Franchising is when one company supplies
another with intangible property and assistance
for a set time. Franchising is common in the
service sector for example, hotels, car rental
companies and restaurant chains. Franchising
can be a low-cost, low-risk entry mode that
allows for rapid geographic expansion.

28. MARKETING MIX
Product Price
Promotion Place

29. PRODUCT
CORE
PRODUCT
(Benefit)
Core Product:
Donut and Coffee
(Food and Beverages)
Augmented
Product:
• After sales: Call
center & customer
service center
• Pricing: Varies
(Cash Transaction
Only)
• Warranty: None
offered
Actual Product:
• Brand name: Varies
• Styling: Varies
• Feature: Light donut
and healthy beverages
• Quality: Daily fresh
and high quality
ingredient used in JCO
Donut Product
• Packaging: A box of
12 pieces, 6 pieces
and 3 pieces available
while beverages is
available by plastic
cup and mug.

30. PRODUCT

31. PRODUCT

32. PRODUCT

33. PRICE
A premium pricing strategy involves setting the
price of a product higher than similar
products. This strategy is sometimes also
called skim pricing because it is an attempt to
“skim the cream” off the top of the market.

34. PROMOTION
Pull strategy (Promotion Mix Strategy)
• Use social media network to advertise their
product in order to create a stronger
consumer demand.
• Choosing sales promotion strategy and
public relations strategy such as corporate
social responsibility to promote their products.

35. PROMOTION

36. PLACE
PROVIDER CUSTOMER
Direct Distribution
To Consumer

37. PLACE
IDEAL STORE LOCATION FOR J.CO DONUT & COFFEE
Near to the
entrance
Shopping Mall Ground Floor

38. PLACE
Johor Bahru
37%
Kuala Lumpur
9%
Melaka
9%
Penang
9%
Selangor
27%
Seremban
9% Johor 4
Kuala Lumpur 1
Melaka 1
Penang 1
Selangor 3
Seremban 1
CURRENT NUMBER OF J.CO DONUT & COFFEE STORE BY STATE

39. STRATEGY ALTERNATIVES
Product Life
Cycle (PLC)
BCG Growth-
share Matrix
Five Forces
Driving
Profitability
Product-Market
Expansion Grid

40. PRODUCT LIFE CYCLE (PLC)
Whenever J.CO
Donut & Coffee
product reach the
some level of their
maturity, J.CO Donut
will either replace it
with new product or
withdrawn it from the
market.

41. BCG GROWTH-SHARE MATRIX
Boston Consulting Group (BCG) Growth-share Matrix

42. FIVE FORCES DRIVING PROFITABILITY
Rivalry
among
existing
Competitors
Threat of
new
entrants
Bargaining
Power of
Buyer
Threat of
Substitute
Bargaining
Power of
Supplier

43. PRODUCT-MARKET EXPANSION GRID
Existing Product New Product
Existing
Market Market
Penetration
Product
Development
New
Market Market
Development
Diversification
The department
that responsible
for product
development in
J.CO Donut &
Coffee are their
Research and
Development
(R&D)
department.

44. ACTION PROGRAM (GANTT CHART)
Activity JAN FEB MAR APR MAY JUN JUL OGO SEP OCT NOV DEC AMOUNT
Promotion
Raya
RM 8000
Orphanage
and Sponsor
RM 12000
International
JCO meeting
RM 18000
Serivce
Equipment
RM 15000
Hiring and
Training
RM 9000
Research and
Development
RM 12000
JCO Malaysia
Meeting
RM 4500

45. 12pc x 230 boxes (RM 26.00) = 2760 unit
6pc x 110 boxes (RM13.00) = 660 units
Ala-carte (RM3.00) = 80 units
Unit sold
• 2760+660+80 = 3500 units (daily)
• 3500 x 30 = 105,000 units (monthly)
• 105,000 x 12 = 1260000 units (annually)
PROFIT (DONUT)
Gross Profit
• RM26.00 x 230 = RM5980
• RM13.00 x 110 = RM1430
• RM3.00 x 80 = RM240
• RM5980+RM1430+RM240 =
RM 7650 (daily)
• RM7659 x 30 = RM229500
(monthly)
• RM229500 x 12 = RM2754000
(annually)

46. Venti (RM8.00) = 50 cups
Grande (RM7.00)= 30 cups
Tall (RM 5.00) = 10 cups
Unit sold
• 50 + 30 + 10 = 80 cups (daily)
• 80 x 30 = 2400 cups (monthly)
• 2400 x 12 = 28800 cups (annually)
PROFIT (COFFEE)
Gross Profit
RM 400+ RM 210+ RM 50
= RM660 (daily)
RM 660 x 30 = RM19800
(monthly)
RM 19800 x 12 =
RM237600 (annually)

47. Cheesy Rich (RM6) X 15 units
Red Velvet (RM6) X 15 units
Unit Sold
• 15 + 15 = 30 units (daily)
• 30 x 30 = 900 units (monthly)
• 900 x 12 = 10800 units (annually)
PROFIT (J.CLUB)
Gross Profit
RM 90 + RM 90 = RM 180 (daily)
RM180 x 30 = RM 5440 (monthly)
RM 5400 x 12 = RM 64800
(annually)

48. Unit Sold
• 40 boxes sold daily
• 40 x 30 = 1200 boxes (monthly)
• 1200 x 12 = 14400 boxes (annually)
Gross Profit
• RM 18.00 x 40 = RM720 (daily)
• RM 720 x 30 = RM21600 (monthly)
• RM 21600 x RM259200 (annually)
PROFIT (J.POPS)

49. J.Cool Yoghurt
• (i) J. Cool Single (RM 6.50) = 12cups
• (ii) J. Cool Couple (RM 12) = 10 cups
• (iii) J. Cool Sharing (RM 13) = 10 cups
• (iv) J. Cool To Go (RM 10) = 8 cups
Unit Sold
• 12 + 10 + 10 + 8 = 40 cups (daily)
• 40 x 30 = 1200 cups ( monthly)
• 1200 x 12 = 14400 cups (annually)
PROFIT (J.COOL YOGURT)
Gross Profit
RM 78+ RM 120 + RM 130
= RM 80 = RM408 (daily)
RM 408 x 30 = RM 12240
(monthly)
RM 12240 x 12 =
RM146880 (annually)

50. PROFIT ( FOR ALL PRODUCT)
• Daily (RM9618): RM 7650 + RM 660 + RM
180 + RM 720 + RM 408
• Monthly (RM288 580): RM 229500 + RM
19800 + RM 5440 + RM 21600 + RM 12240
• Annually (RM3 462 480): RM 2,754,000 + RM
237,600 + RM 64800 + RM 259,200 + 146880

51. BREAKDOWN
Monthly gross profit: RM 288,580
Cost of raw materials: RM 70,000 (24.25%)
Workmanship: 20 employees ( RM 1,800
each) + 2 store manager (RM 2,200) = RM
40,400 (14%)
Premise rental: RM 20, 000 (7%)
Utility bills: RM 5,000 (1.7%)
Franchise monthly fee: RM 10,000 (3,4%)
Monthly Profit Margin: RM 143,180
(49.61%)
Raw Material
24%
Workmanship
14%
Premise Rental
7%
Utility bill
2%
Franchise
Monthly Fee
3%
Monthly Profit
Margin
50%
J.CO Donut & Coffee Pavilion Kuala Lumpur

52. 1) Raya Promotions- include Chinese New Year, Hari Raya Aidilfitri,
Deepavali, Christmas ( Digital Advertisement RM2000)
2) Orphanage and Sponsor (CSR)- January, May and December- (RM
4000 each month)
3) J.CO International Meeting- January until June (RM3000 each
month)
4) Equipment Service- March, April and May (RM5000 each month)
5) Hiring and Training- January, February and March (RM3000 each
month)
6) Research and Development for 1 year (RM1000 each month)
7) JCO Malaysia Meeting- April, May and June (RM1500 each month)
PROMOTION AND ACTIVITIES

53. Month Task Objective Costs
January 1)CSR
2)J.CO Intl Meeting
3) Hiring and Training
4)Research/Development
Donation for Orphanage
Discuss marketing plans
Enhance staffs performance
Enhance sales and services
1)RM4000+2)RM3000+3)RM3
000+4)1000= RM11,000
February 1)J.CO Intl Meeting
2)Hiring and Training
3)Research/Development
1) Discussing means of effective
promotions
2) Enhance Staffs
3) Enhance sales and services
1)RM3000+2)RM3000+3)RM
1000=RM7,000
March 1)Raya Promotions- Digital Adv.
2)J.CO Intl Meeting
3) Hiring and Training
4) Equipment Servicing
5)Research/Development
1) Chinese New Year Promo
2)Discussing unified agreements
3) Enhance staffs performance
4)Maintain and restore equipments
5) Enhance sales and services
1) RM 2000
2) RM 3000
3) RM 3000
4) RM 5000
5) RM 1000
TOTAL: RM14,000
April 1)J.CO Intl Meeting
2)Equipment Servicing
3)Research/Development
4)J.CO Malaysia Meeting
1) Discussing problems and solutions
2) Maintain equipments
3) Enhance sales and services
4)Discussing local promos
1) RM3000
2) RM5000
3) RM1000
4) RM1500
Total: RM10,500

54. Month Task Objective Costs
May 1) CSR
2) J.CO Intl Meeting
3) Equipment Servicing
4)Research/Development
5)J.CO Malaysia Meeting
1) Old Folks Home
2) Discussing expansion
3) Maintain equipments
4) Enhance sales and services
5) Discussing problems
1) RM4000
2) RM3000
3)RM5000
4)RM1000
5)RM1500
Total:RM12,500
June 1)J.CO Intl Meeting
2)Research/Development
3)J.CO Malaysia Meeting
1) Maintaining Efforts
2)Enhance sales and services
3) Discussing Solutions
1)RM 3000
2)RM 1000
3)RM 1500
Total: RM5,500
July 1)Raya Promo-Digital Adv
2)Research/Development
1)Hari Raya Aidilfitri Promo
2)Enhance sales and services
1)RM 2000
2)RM 1000
Total:RM3,000
August 1)Research/Development 1)Enhance sales and services 1)RM 1000
September 1)Research/Development 1)Enhance sales and services 1)RM 1000

55. Month Task Objective Costs
October 1)Research/Development 1)Enhance sales and services 1)RM 1000
November 1)Raya Promo-Digital Adv
2)Research/Development
1)Deepavali Promo
2)Enhance sales and services
1)RM 2000
2)RM 1000
TOTAL: RM3,000
December 1)Raya Promo-Digital Adv
2)CSR
3)Research/Development
1) Christmas Promo
2) Orphanage donation
3)Enhance sales and services
1)RM 2000
2)RM 4000
3)RM 1000
TOTAL: RM7,000
TOTAL:
•RM11,000+RM7,000+RM14,000+RM10,500+RM12,500+RM5,500
+RM3,000+RM 1000+RM 1000+ RM 1000
+RM ,3000+RM 7,000 = RM76,500 annually
•RM 3,462,480(annual gross profit)- RM76,500 (promotion)
= RM 3,385,980 annual nett profit.

56. CONTROL
Annual Plan
Control
Profitability
Control

57. Sales Analysis
Daily Sales Goals Daily Actual Sales
DONUT DONUT
=5000 pieces per day =3,500 pieces per day
J.COFFEE J.COFFEE
= 200 cups per day = 90 cups per day
J.POPS J.POPS
= 100 boxes per day = 40 boxes per day
J.COOL YOGURT J.COOL YOGURT
= 70 cups per day = 40 cups per day
J.CLUB J.CLUB
= 50 units per day = 30 units per day
Annual Plan Control

58. PRICE
The others competitors has a cheaper price of donut than them.
The price of J.CO Donuts & Coffee actually the most
reasonable, the company can’t low the prices due to the quality
of ingredients that their used.
PROMOTION
J.CO Donuts & Coffee just do their promotion in outlet with give
information to the customer about the new promotion for
increase their sales. Due to this style of promotion J.CO Donuts
& Coffee enables to develop and attract the customer. They
allocate RM20, 000.00 for each outlet for each promotion that
they do.
THE ISSUES J.CO DONUTS & COFFEE
CAN’T ACHIEVE TARGET

59. 11
80
12
Jco Big Apple Krispy Kreme
Total outlet of three
companies
Big Apple
Big Apple already have 80 branches in
Malaysia. Big Apple brings the cheaper
price of donut compared to the J.CO
Donuts & Coffee
Krispy Crème
Krispy kreme already have 12 branches
around Malaysia. The price of Krispy
Crème more pricy compare to J.co and
Big Apple.
Most profitable product
The most profitable product is Donut, majority
customer craving
for it. The customer said glaze donut is the
best donut that they
have. After that is the J.coffee
MARKET SHARE ANALYSIS

60. Type of product Gross Profit Monthly
105,000 units donuts RM 229500
2400 cups coffee RM 19800
900 units of Jclub RM 5440
1200 boxes of Jpop RM 21600
1200 cups of yogurt cup RM 12240
Total monthly RM 288,580
When it comes to promotion month the sales will
increase around 40%
RM404,012
=RM 115,432
Budget for promotion each outlet is RM20,000
Marketing activities cost RM20,000
Sales revenue
Sales Monthly :RM 288,580
Promotion Sales :RM 450,185
Generated Sales :RM 115,432
MARKETING EXPENSE TO SALES ANALYSIS

61. PROFITABILITY CONTROL
Internal
Factors
Staffing
Salary
Training
External
Factor
Promotion
Service
Place

62. • J.CO Donuts & Coffee all the staff
will be divided by three departments
• Managers : The manager needs to
monitor the bakers to achieve the target
amount of donut every day
(Store manager and assistant manager)
• Bakers Department : J.CO Donuts &
Coffee needs to produce every day is
about 4000-5000 pieces
(10 employees)
• Front Liner Department : the front liner
needs to push the sales of donut and
coffee
(10 employees)
Workmanship: Employees salary (Each
Outlet)
2 store manager (RM 2,200)
20 employees each (RM 1,800)
= RM 40,400
(14%) from the gross profit
• Every day the manager has to updates
the sales report. After that, they needs to
analyze and compares the report. From
the amount of donut, the cup of coffee
and yogurt is the way how they control
their profitability every day.
INTERNAL CONTROL

63. • Staff Training
J.CO Donuts & Coffee do their ongoing promotion in the outlets, usually the staff needs to
know how communicate and attracts with the customer to increase their sales.
For example, when the customer just want to buy the half dozen of donut the front liner
needs to show the customer will save a lot when they buy for a dozen.
• Hiring and Training (January, February and March)
(RM3000 each month)
J.CO Donuts & Coffee has their own strategy to control their profit. First with Staffing and push
the sales of product by the staff. J.CO Donuts & Coffee also said the most important to fight
with their competitors is trust on the quality of what they using.
STAFF TRAINING

64. PROMOTION
• J.CO Donuts & Coffee did the promotion in outlets which is the promotion needs to
be done by the front liner.
• J.CO Donuts & Coffee promotions with celebrates the Malaysia feast such as Hari
Raya Aidilfitri, Deepavali, Chinese New Year and Christmas.
• Every feast J.CO Donuts & Coffee will change the theme of their outlets and donut
design
SERVICE
• They always make sure that the customer will come back to the café to having
their donuts and be a loyal customer. Usually, the loyal customer will select the
best of taste and experience that their get. J.CO Donuts & Coffee improve their
relation with stakeholder regularly.
EXTERNAL FACTOR

65. PLACE
• J.CO Donuts & Coffee maintain their strategic
place and know the profitability place. Usually,
their choose the place that have many crowd
such as Pavilion Shopping Centre and IOI
Mall Puchong.
• The placing of shop also takes the important
role, what we can see J.CO Donuts & Coffee
chose their shop that near to the entrance of
the mall.
CONTROL

66. •J.CO should continuously adapt its
marketing mix to keep up with the changing
times and changing lifestyles of people
today
•Conclusion, this report shows a clearer
picture of how a business uses marketing
mix to identify its target market, attract
them & retain their loyalty
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