MARKETING & CUSTOMER RELATIONSHIP MANAGEMENT

MARKETING &
CUSTOMER
RELATIONSHIP
MANAGEMENT

J.CO DONUT AND COFFEE.

 MARKETING & CUSTOMER RELATIONSHIP MANAGEMENT

CONTENT

1.0 EXECUTIVE SUMMARY 1-4

2.0CURRENT MARKETING SITUATION
2.1 Environment
2.1.1 Market Description 5
2.1.2 Product Review 6
2.1.3 Competition 6
2.1.4 Distribution 7
2.2 Market Analysis
2.2.1 Market Segmentation
2.2.1.1 Geography 8-9
2.2.1.2 Demography 10
2.2.1.3 Psychographic 11
2.2.1.4 Behavioral 12
2.2.2 Target Market 13
2.2.3 Positioning 14
3.0 STRENGTH, WEAKNESS, THREAT AND OPPORTUNITY (SWOT) ANALYSIS 15
3.1 Strength 16 – 18
3.2 Weakness 18 – 21
3.3 Opportunity 21 – 23
3.4 Threat 23 – 25
4.0 OBJECTIVES AND ISSUES 26
4.1 Vision
4.2 Mission
4.3 Award
4.4 Objective
4.5 Issue
5.0 MARKETING ENTRY STRATEGY 28
5.1 Marketing Mix
5.1.1 Product 29 – 33
5.1.2 Price 34
5.1.3 Promotion 35
5.1.4 Place 36
5.2 Strategy Alternatives
5.2.1 Product Life Cycle (PLC) 36 – 37
5.2.2 BCG Growth-share Matrix 38 – 39
5.2.3 Five Forces Driving Profitability
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5.2.3.1 Supplier Power 39

5.2.3.2 Buyer Power 40
5.2.3.3 Threat of New Entry 41
5.2.3.4 Threat of Substitute 41
5.2.3.5 Competitive Rivalry 42
5.2.4 Product-Market Expansion Grid 42
5.3 Marketing Communication Mix 43 – 44
6.0 ACTION PROGRAM
6.1 Gantt Chart 45 – 47
7.0 BUDGET
7.1 Products 48 – 49
7.2 Calculations 50 – 51
7.3 Profits 51
7.4 Breakdown 52
7.5 Budgeting Method 52
7.6 Promotions and Activities of J.CO Donuts & Coffee Malaysia 53 – 56
8.0 CONTROL 56
8.1 Annual Plan Control
8.1.1 Sales Analysis
8.1.1.1 Sales Target for a Month 57
8.1.1.2 The Issues Why J.CO Donuts & Coffee Can’t Achieve 58 – 60
Target
8.2 Market Share Analysis
8.2.1 Big Apple 60
8.2.2 Krispy Kreme 60
8.2.3 Most profitable product 60
8.2.4 Marketing Expense to Sales Analysis 61
8.2.5 Profitability Control
8.2.5.1 Internal Control 61 – 62
8.2.5.2 External Control 62 – 63
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1.0 EXECUTIVE SUMMARY

J. CO Donuts & Coffee is a franchise of café restaurant chains best known for our tasty donuts,
coffee and frozen yogurt that spans over four Asian countries. The company is owned and managed
by Matthew & Malar. Starting our first chain of stores over 8 years ago in Indonesia, J.CO has grown
to have 187 stores in Indonesia, 14 stores in Malaysia, 38 stores in the Philippines and 6 stores in
Singapore.

The main focus of the report is the chain of J.CO Donuts & Coffee in Malaysia that started in 2007.
This report contains the current marketing situation of J.CO, the strength, weakness, threat and
opportunity (SWOT) analysis, the objectives and issues, the marketing entry strategy, the action
program or implementation strategy, the budget for marketing, and the marketing control for J.CO
Donuts.

The marketing process or method is made up of three main elements that will be described in detail
in the following report. The first element is the market analysis. When the target market is known, it
will be easier to design a marketing strategy that would best attract the customers and thus increase
sales. Market analysis aims to find out who will buy a product and is done through segmentation,
targeting and positioning.

The second element is the marketing-mix planning used to prepare a marketing plan and program
that is thorough and would send the intended value to customers that have been chosen during the
market analysis. This planning includes the marketing tools of market entry, called the 4 Ps in short,
which are product, place, promotion and price. In determining the market entry strategy, the 4 Ps are
found by asking the questions of what, where, how much and how. The last element is the control
element in which evaluation of the marketing plan is done. This is to find out whether or not the plan
was a success. The tools of control that are used are annual-plan control, profitability control, and
strategic control.

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This marketing plan report begins with the current marketing situation of J.CO Donuts and Coffee
Malaysia. The environment in which J.CO mainly focuses on is the urban environment and aim
towards the urban community as their target market. Adults and children are targeted with their large
variety of products consisting of donuts, coffee and frozen yoghurt to fulfill the consumer appetite
regardless of age. All of J.CO products in Malaysia are sold at a reasonable price. J.CO mainly
focuses on their soft and premium donuts that have unique names as the main product with about 26
different flavors. Recently a wide variety of beverages was also introduced into the menu. Quality is
emphasized by the use of high quality raw materials imported from other countries to make their
donuts and beverages.

This brand has successfully penetrated into the local market in Malaysia going against Dunkin
Donuts and Big Apple as their main competition. With each having their own identity and strategies
to attract their customers, J.CO stands out by using the café concept and does not only focus on
donuts like the other competitors. They also have their own trained barista and baker to serve the
foods and drinks.

J.CO Donuts started in Indonesia, and with the positive feedback from customers they spread their
chain to Malaysia in 2007, Philippines in 2013 and Singapore in 2008. The location of J.CO outlets
are also easily reachable with it usually being in major shopping malls in the cities.

J.CO market segmentation focuses on locations with a high population that leads to a variety of
consumers from different backgrounds, buying behavior and needs. Geographically, J.CO targeted
Johor Bahru as the location that is most profitable after they had done their research.They focus on
groups of people that love to eat and have a sweet tooth which is why Asian countries are chosen as
the base of the marketing scope because they believe that most Asians love to eat.

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For J.CO, a strategic location is crucial as it can affect the profits of the company causing J.CO to
choose urban shopping malls as our top priorities. We aim people with a medium to high rate of
income as our product may be considered pricey by those with a lower income. According to our
researches, we concluded that people nowadays are attracted to cafes with a classy theme, great
ambience and music causing J.CO to maintain these elements in their café design. The main selling
point of J.CO is their premium quality products that comes with great taste that is suitable for all
types of people. J.CO believes that their brand strength is enough to help position themselves in the
market.

The strength, weakness, threat and opportunity (SWOT) analysis helps J.CO Donuts in developing a
strong business strategy as we have made known all the factors that will help us stay as the best
against our competitors. The strength of J.CO is in their quality products that taste better than their
competitors, high quality raw materials and still being sold at a medium price. Our product
innovation brings fresh air to the market. J.CO Donut also prides itself for creating a life café concept
that is vibrant and energetic, stylish yet interactive, customer friendly and more to a family concept.

J.CO weaknesses are from the lack of promotion and activity to develop more loyal customers as
well as to retain the customers. The external weaknesses that J.CO Donut & Coffee face is we do not
provide any online ordering or deliveries to their customers. For opportunities, J.CO have planned to
further expand their franchise to new locations. For J.CO, we know that our products are considered
pricey to some and this is our opportunity to offer attractive promotions, offers and discounts to J.CO
loyal customers.

As a large company, there are bound to be threats from the competition. As a newcomer in the food
industry, J.CO had to compete with other companies to ensure that we can survive in the donut
industry. Therefore, before the company opened their first store, the founder of J.CO Donut &
Coffee, Matthew & Malar, had done extensive research on the making of donuts and flavor to
generate donuts that are unique to beat the current competitors in the industry. The main vision of

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J.CO is to establish itself as a trend-setting lifestyle and the foremost international premium donuts
and coffee brand in the industry. Its missions revolve around putting the customers as the utmost
priority.

In J.CO Donuts marketing entry strategy into the Malaysian market, we have done a franchising
strategy as it is works well for a company that has a strong brand name. The first element of
marketing mix is product. J.CO products include donuts, coffee, chocolate and yoghurt. Pricing is the
second element in the mix and is the most important as this generates a turnover for the company.
J.CO underwent several pricing strategies when it entered the Malaysian market. The pricing strategy
we used was penetration pricing to attract new customers. Currently the price is set using
competition pricing strategy where we set a price in comparison with competitors such as Big Apple
Donut and Dunkin Donut. The third element is promotion which to J.CO is the business of
communicating with customers. J.CO uses the pull strategy to attract customers using social media.
The last element is place. For J.CO Donut & Coffee, we prefer to sell the product directly to our
customer which also known as direct distribution to consumer.

For the strategy alternatives, J.CO uses the Product Life Cycle to ensure that they do not lose their
customer, profit and to delay the decline of a well-established product which has the potential of
generating further revenue. J.CO also uses the BCG Growth-share matrix and the identification of
the five forces driving profitability. For J.CO Donuts & Coffee’s market communication mix, it is
their policy that they rarely advertise on television and radio. They usually rely on sales promotion
during the festive season and public relations to promote their products or services. They also do a
lot of corporate social responsibility (CSR) program.

The action program of J.CO is shown in the form of a Gantt chart in the report. It is shown that J.CO
does promotion during the celebrations of each religion in Malaysia. Besides that, they have CSR
activities three times a year and occasional management meetings. The budget section of this report

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aims to analyses the overall budget of J.CO in terms of how they spend their income on the
promotion and activities or the company. The last part of this report is the marketing control to
compare the results to the marketing plan. J.CO uses an annual plan control and profitability control
for their business. It is recommended that J.CO continuously adapts its marketing mix to keep up
with the changing times. In conclusion, this report has shown a clearer picture of how a business uses
marketing mix to identify its target market, attract them and retain their loyalty.

2.0 CURRENT MARKETING SITUATION

2.1 Environment
2.1.1 Market Description
J.CO Donut & Coffee is a café restaurant that is selling donut and beverages thus J.CO Donut &
Coffee is considered to be in food and beverages (F&B) industry. They claimed that since their
opening in Jakarta, their always target a high income customer because their price are quite too
expensive from their competitor as they use price skimming strategy or known as premium pricing
strategy. Other than donut, they also knew for their high quality of the frozen yogurt that they sold.
Jco Donut’s headquarter was located at Jakarta, Indonesia.

Most of the J.CO Donut & Coffee outlet was built in urban environment. By doing this, it will help
and increase the J.CO Donut & Coffee sale and customer rate. For their customer, J.CO Donut &
Coffee aim the children up to adult as their main customer. That is why they have variety type of
food to fulfil their customer appetite regardless of their age and different background. J.CO Donut &
Coffee food is quite pricy hence it makes peoples that have medium to high income suitable for J.CO
Donut & Coffee goods. There are so many company that sell donuts as their main product. For
example of them are Big Apple, Krispy Kreme, and Dunkin’ Donuts. Each of their product has their
own unique ways and strategies that they use to attract consumer. Starbuck can also become one of
the J.CO Donut & Coffee competitors due to the café concept and menu that they both provide to the
public.

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2.1.2 Product Review

J.CO Donut & Coffee have several types of product, food and beverage for their customer. Currently
they focused on donut, coffee and frozen yogurt which has become one of Jco Donut’s main or core
product. For their donut, there are about 26 flavors that consist of chocolate flavors, vanilla, coffee
and many more. Besides that, they also provide cool and hot beverage that come with so many
choice. Meanwhile, the price range of J.CO Donut and Coffee set their donut price at about RM2 to
RM4 for ala carte.

They also sell their donut in combo set that comes with affordable price. For their beverage and
coffer, the price range is RM8 to RM17. J.CO Donut & Coffee are emphasizing the importance of
their high quality product and services for their customer. They will make sure that their customer
having a high quality of foods and good time in their café. Hence, Jco Donut are using high quality
raw material to make their foods and drinks. Most of their raw materials are imported from other
country. For example they are using chocolate from Belgium and Coffee from Brazil.

2.1.3 Competition
In Malaysia, there are several companies that produce the same product like J.CO Donut & Coffee.
For example of company that sell donut as their main product in Malaysia is Dunkin Donut and Big
Apple. Even though they all sell the same products which is donut and coffee, each of them have
their own identity and strategies to attract their customer. For J.CO Donut & Coffee, they are
different from their competition in few aspects such as their ingredient, their café concept, their
donut name and many more.

First of all, J.CO Donut & Coffee are using café concept that not only focusing on their donut just
like others competitor. They also emphasize their beverages, coffee and frozen yogurt to customer.
They claimed that their beverages especially their coffee taste better because they use Brazil coffee
bean. Other than that, J.CO Donut & Coffee said that they are different from their competitors

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because Jco Donut is using high quality of material and ingredient to make their donut. Their flour is
originally imported from Indonesia and they not only use machine to produce the donut, they also
use baker skill to produce ‘light as an air’ donut. Most of their material was imported from other
country such as their coffee beans are imported from Brazil and some of their chocolates are from
Belgium.

They also only choose the best quality and healthy material to produce their product. Every three
hour, they will replace their unsold donut with the fresh donut in order to maintain a high quality
taste. They said that it’s important for them to give their customer the best, great service and food
because they believed that by provide a great customer service it will help them to ensure that their
customer will come back again. In addition of that, they also have their own well trained barista and
baker to serve the foods and drinks. By hired the high skilled barista and baker, it will help Jco Donut
to ensure that all of their customer satisfy with these foods and drinks. From the interview, J.CO
Donut & Coffee claimed that by using a unique and easily remembered name for their product, it will
attract their customer and create an unique identity which will help the customer to differentiate J.CO
Donut & Coffee from other competitors. Some example of their product that have unique name is
‘Tira Miss U’ which is a donut with tiramisu toping. Other than donut, they also have unique flavor
of beverages such as Oreo Frappe.

2.1.4 Distribution
J.CO Donut & Coffee is one of the great café that serve fresh and tasty foods and drinks out there.
They all started from Indonesia then growth to other Asia country. Due to positive feedbacks that
J.CO Donut & Coffee received from consumers, they open up their outlet and build a network to
other country such as Malaysia, Singapore, Thailand, Philippines and many more.

By doing this, J.CO Donut & Coffee can distribute their product to other country and ensure outsider
consumer can grab J.CO Donut & Coffee goods. Urban location and mega mall is one of the places
that J.CO Donut & Coffee usually choose to open their new outlet. By choose these types of location,
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J.CO Donut & Coffee café can be easily founded by consumer and have a high rate of visitor or
buyer per days. There is about 11 J.CO Donut & Coffee outlet in Malaysia and 260 outlets around
Asia. On 2007, J.CO Donut & Coffee launch their first branch in Malaysia. After that, they expand
their business to Singapore on 2008 and Philippine on 2013. Currently J.CO Donut & Coffee only
sold their product through their restaurant and they not did provide any delivery or online ordering
services.

2.2 Market Analysis

2.2.1 Market Segment
2.2.1.1 Geographic

For geographic segment, Jco Donut is usually choosing any location that have high rate of population
of people that come with a good rate of income. In Malaysia, there are about 11 J.CO Donut &
Coffee’s franchise has been opened at different state that have high percentage of working people.

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There are 4 franchises at Johor Bahru, 3 at Selangor and 1 franchise for Kuala Lumpur, Melaka,
Penang and Seremban.

Each of the J.CO Donut & Coffee are specifically located in mega mall that have a good reputation,
high rate of visitor per day and good popularity for each of the state. They believe that by doing this,
they can easily spread and promote their product to the locals. J.CO Donut & Coffee exposed that
they choose to open their store near to the mall entrance so it can be easily spotted by their target
customer. From the chart above, J.CO Donut & Coffee said that they open most of their store at
Johor Bahru than other state because of the geography factor. It’s because majority of Johor Bahru
people have high rate of salary.

This is because Johor Bahru is one of the national trading center. Other than that, Johor Bahru also
known as one of the biggest tourism center in Malaysia because in Johor Bahru they got attractive
places such as Legoland and many more. Hence it may affect the total customer of J.CO Donut &
Coffee, profit and many more. A similar situation also occurred in Selangor which is one of the
advanced states in industrial plants so, it indirectly have a positive effect on the income of resident of
Selangor.

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2.2.1.2 Demography

For demographic segment, J.CO Donut & Coffee target customer are those who are come from
medium and high rate income customer. This is because they set any their price a little bit higher
than their competitor as they are using price skimming strategy. Due to the price rate of Jco Donut
product, customers that come with medium to high rate of income are suitable and most likely would
buy Jco Donut product. Regardless of their gender, Jco Donut is emphasizing their customer who is
teenagers, adult and senior citizen. With the variety product that come with different taste and form
which is hot and cold, it cause the Jco Donut customer scope become larger.

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2.2.1.3 Psychographic

During our interview, J.CO Donut & Coffee claimed that Malaysian are having one common things
that can help their businesses growth up rapidly which is majority of Malaysian are love to eat fast
food. During the first week after the launch of JCO Donut & Coffee at Pavillion, Kuala Lumpur, it
was reported that people were having a long queues just to buy their donut. During our interview,
JCO Donut & Coffee claimed that knowing your customer is one of the important elements that they
must practicing in order to have a good outcome for their business. One of these elements is by
knowing the customer’s personality and life style.

Besides that, J.CO Donut & Coffee stated that Malaysia is one of the great market place due to their
citizen that known for their eating habit. Majority of Malaysian are loved to eat fast food and dessert.
This has been proved through research that has been done on 2014 by British medical journal, The

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Lancet, showed that 49% of women and 44% of men in this country were found to be obese. They
said that Malaysian’s obesity rate is the highest in Asia. Another element that plays an important role
is the customer life style. As we know there are rural and urban place in Malaysia. Different
environment can lead to different life style of certain population. Since J.CO Donut & Coffee choose
urban place or environment to open their store, let’s take a look with peoples that live in that area.

From the situation that has been observed, peoples that live at urban and city area are usually like to
eat at the restaurant and café especially for those who are single. Unlike for those who are live at
rural area, they prefer to cook by them self. This situation is occurred because most of the people that
live at urban area are too busy with their daily life and work until some of them could not cook a
meal because of time matter or too tired after through a stressful day at workplace. Through this
problem, they take another alternative way by go to café or restaurant. From this situation, J.CO
Donut & Coffee conclude that they are more profitable and high potential customer in urban place
such as downtown or city area.

2.2.1.4 Behavioral
Besides knowing the customer life style and personality, J.CO Donut & Coffee also said that they
must identify the shortage and needs of the customer. By doing this, J.CO Donut & Coffee can
improve and makes their business suitable with the customer’s needs.

From what has been observed by JCO Donut & Coffee Company, they said Malaysia is lack of café
that sell variety of foods and beverage in the same times in order to fulfill people needs. Even though
they are so many café and food company has doing their business in Malaysia, most of them
especially for company that sell donut or coffee are usually focusing in one type of the food or drink.
Through this situation, consumers are served with limited menu and choose.

Due to this situation, JCO Donut & Coffee come with few solutions by providing much more option
and choice of foods and beverage to the customer that has different needs and want. For example,
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J.CO Donut & Coffee is selling donut that has various flavor consist of fruit, creamy, chocolate and
nuts ingredient. For example of people that have an allergic with nuts still can enjoy and eat the J.CO
Donut & Coffee foods cause of the various type of donut’s flavor or ingredient.

A good, healthy and high quality food is one of the common things or needs that people usually
seeking for. With these need, J.CO Donut & Coffee has accomplish them by provide a foods or
beverages that has made from high quality ingredient. By using a great quality of ingredient that has
been imported, it will make the customer feel pleasure to eat J.CO Donut & Coffee’s foods and
beverages. Even though most of the J.CO Donut & Coffee product are pricy, it’s still worth it for the
customer to invest their money for having a great experience with J.CO Donut & Coffee foods. By
this, J.CO Donut & Coffee believe most of the consumer around Malaysia will be happy with the
concept and menu that provided at JCO Donut & Coffee.

2.2.2 Target Market

There is a reason why J.CO Donut & Coffee choose an urban and mega mall as their top priorities.
For them, a strategic place or location is everything because it can affect the result and profits of a
company. By selecting these type of location, they can easily having and attract consumer that
suitable for their product. J.CO Donut & Coffee set an aim for people that come with medium to high
rate of income as their customer because most of their product quite pricy. Even though it’s a bit
pricy, it’s still worth because of the quality that J.CO Donut & Coffee provide for their consumer.

They only use the best quality of raw material that mostly imported from other country. For example,
J.CO Donut & Coffee are using chocolate from Switzerland to make their drinks or donuts. They
also choose Brazil as their supplier of coffee to ensure that their coffee full of aromatic and delicious.
In their research, they conclude that people nowadays are so in love with café that comes with classy
theme, great ambience and music. In order to attract more people, J.CO Donut & Coffee keep these 3
elements in their café design.

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They will make sure that their customer feels relax and safe while enjoying their cup of hot coffee or
chocolate, lovely and fresh yogurt or their signature foods which is donut. JCO Donut’s target market
is not only come from group of adult people. They also aim the child and teenagers as their customer
regardless of their gander.

2.2.3 Positioning
J.CO Donut & Coffee are famous with their premium quality of products. Come with the great taste
that suitable for all type people, its help them to make their customer attracted and will buying J.CO
Donut & Coffee product for the second times. J.CO Donut & Coffee believe that their product
qualities are the best.

Even though, they are not advertising their product through medium such as television, radio or
printed media, people still come to them cause of their great service and goods. J.CO Donut &
Coffee also trust that their brand strength. This is how they ensure that their customer will think
automatically of J.CO Donut & Coffee whenever they talk about donuts, coffee or yogurt.

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3.0 STRENGTH, WEAKNESS, OPPORTUNITY AND THREAT (SWOT) ANALYSIS

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3.1 Strengths
J.CO Donut & Coffee and Dunkin’ Donuts are two biggest donut companies in the world. These two
companies provide same product which is donut and beverage to their customers. The different from
quality and facility become the strength for the J.CO Donut & Coffee. J.CO Donut & Coffee offer a
quality donut to their customer meanwhile Dunkin’ Donuts offer a lower price to their product. Its
means that they only uses the best ingredients from all over the world such as Belgian Chocolates,
Californian Almonds, Japanese Matcha Green Tea and Italian Roasted Coffee in their products. J.CO
positions itself to be that “Elegant donut with a medium price.” It serves the market to be satisfied
with a quality donut that tastes even better than its competitor who has been in the market for a much
longer time. Dunkin’ Donuts attract their customer by offer lower price among donut companies in
the world. That a main reason why Dunkin Donut become a first choice to people. People are
preferred a product with more affordable price even they also complaint about the product quality.

Beside, J.CO Donut & Coffee also become innovation with their product lines and Dunkin’ Donut
selling a fast and good coffee at good value. Dunkin donuts as a market leader was already in their
comfort zone make them uncompetitive to the innovation, consumer as the market didn’t have their
ability to choose another product, since Dunkin’ is the only one at that moment. J.CO Donut &
Coffee as the new player bring the fresh air to market, by make donuts as a trend setting lifestyle.
Marketing mix between Sakura strategy and open-kitchen in every outlet seems attract customer
curiosity to tried and tastes the new J.CO Donut & Coffee experience. J.CO Donut & Coffee comes
out with new idea and environment to attract the target people for their products. They do not only
focus on their products but also the environment of their outlet because one of the ways to attract
people is from the decoration of their outlet.

J.CO Donut & Coffee also prides itself for creating a life café concept that is vibrant and energetic,
stylish yet interactive, customer friendly, and more to family concept. This not only means customers
can bring home food to the house, but they can also relax with friends or family. The modern concept
that created by the J.CO Donut & Coffee has made their customers enjoy when dine in at the café.

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J.CO. Donuts & Coffee seem to be different from other products in the country because the product
is positioned as a lifestyle and targeted to consumers of the middle and upper segment with a
dynamic lifestyle, young and modern. For the modern technology now, people looking for the
innovative café that can cheer up their day or moments. As well as the basic materials, more than
50% is imported from abroad.

Like the chocolates imported from Belgium and milk from New Zealand. Also, to drink, the
ingredients mostly imported anyway. Most coffee powder imported from Italy and Costa Rica. All
the donuts also change every two hours to make sure the quality of the donuts. Because when the
donuts left for too long, it will make the donuts become hard and cold. That why they change to new
donut every two hours.

So, to make J.CO Donut & Coffee become well than their competitor, they use 4P as their strategy to
involve in market which is product, price, promotion and place. For the product, J.CO Donut &
Coffee only use a best product to make sure their quality is maintained. All ingredients are import to
make sure that all the donuts that they sell in a great quality. For them, quality is more important than
a quantity of the products. The consumer will judge their products by the quality, that why J.CO
Donut & Coffee take this seriously. People nowadays are looking for foods that are something new
that can satisfy their cravings without being conscious on their health. J.CO Donut & Coffee is
currently serving its customers a less sweet donut with soft, thin and chewy bread. The size of each
doughnut is perfectly enough. It’s worth the pay since it’s delicious, not too oily and its taste is not as
sweet as other donuts.

For the price, J.CO Donut & Coffee use a price skimming strategy which means their price are
expensive due to their product quality. They know that their prices are expensive to the market, but
they promised that consumer will get the satisfaction after buy their products. J.CO Donut & Coffee
will not produce a product if their quality is bad. J.CO & Donut also believe that their customer will

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always stick with them even their prices are expensive because they get a customer capability from
the beginning of their outlet in Malaysia.

For the promotion, they already know that their product is expensive and this is their opportunity to
offer an attractive promotion, offers and discount to their loyal customers. This is how they manage
their marketing strategy. Usually J.CO Donut & Coffee will make offer during the festival or
celebration such as New Year, Independence Day and “Hari Malaysia”. Every festival they will
come out with new donuts that only offer for the limited time. For example, the promotion is buy 1
dozen will get free 1 drinks of coffee and only offer during the festival celebrated. J.CO Donut &
Coffee will never decrease or reduce their price, but they only make a promotions or offer for a
certain time only.

Last, for the place J.CO Donut & Coffee choose a high class place to open their outlet such as in a
shopping mall. Therefore they are only open outlets in shopping malls that have many visitors. J.CO
Donut & Coffee choose a high class places because from there people will see their outlet and easy
for their customer to get their product after they have spent a long time during shopping. For
example, J.CO Donut & Coffee open their outlet in Pavilion Kuala Lumpur because the place is
famous and most the visitor is come from a high profile background.

3.2 Weaknesses
Every company has their own weaknesses behind of their successful. The weaknesses can be defined
from the internal or external factor. For the J.CO Donut & Coffee, their weaknesses are from the lack
of promotion and activity to develop more loyal customers as well as to retain the customers and for
the Dunkin’ Donuts their weakness is lack low calories options for the consumer. J.CO Donut is
rarely use advertisement in newspaper or television. The reason is because they believe on their
product capability in the market even they do not do a big promotion of their products. Meanwhile
Dunkin’ Donuts do a lot of promotion of their product to make people become more alert to their
product.
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That why Dunkin’ Donut is more positioning in people mind. Dunkin’ Donut also lack low calories
options to their customer which means their customer didn’t have a choice for the donut if some of
them are not eat sweeter donut.

Other than that, the external weaknesses that J.CO Donut & Coffee faced is they do not provide any
online ordering or delivering capability to their customers. To be a good and different donut
company J.CO Donut & Coffee should come out with the new strategy which is makes a delivery of
their products. Not to all outlets make a delivery, but only a few outlets that get a higher demand.
From the interview, they have no plan to make a delivery of their products since they believe that
their customers will stick with them even they do not provide any delivery. This is because they
believe on their product capability. For their competitor, Dunkin’ Donut weakness is lack of
marketing effort to increase their product quality. That the reason why J.CO Donut & Coffee is more
strong than their competitor. Dunkin’ Donut did not do any effort in order to increase their quality
even they receive a lot of complaint from their loyal customer.

From the interview, one of the weaknesses of J.CO Donut & Coffee is their product are expensive.
J.CO Donuts & Coffee is too expensive maybe because the quality and taste made by J.CO Donuts &
Coffee itself is different from other donuts it would cost a fortune. For J.CO Donut & Coffee, they
will not put the price if their quality products are bad. It means that the price is suitable for the
quality of donuts and coffee because all the ingredients are imported. J.CO Donut & Coffee will
never decrease their price even their customer complaint because for them, even their customer
always complaint about their price, but they will buy because they only serving good food and
delicious. J.CO Donut & Coffee know that their weaknesses will make their competitor take a chance
to become better from them. So J.CO Donut & Coffee using a social media as their strategy to make
their advertisement or promotion become wide. This strategy is realized in the form of sampling
around the store, making a twitter account, webpage and Facebook fan page in the virtual world. For
J.CO Donut & Coffee, endorsement visitor, long queues snaking through at the outlets and media
who write a story about the delights and distinctiveness J.CO Donut & Coffee more important than
advertising. This branding strategy succeeded in creating word of mouth and reaps the publicity.
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Beside, J.co has a website www.jcodonuts.com that provides a variety the menus inside the complete
content to answer the curiosity of enthusiasts J.co and web design is very appealing. J.CO Donut &
Coffee will also have a twitter account for the media promotion of highly innovative in addition to
facilitate the costumer to find out the latest products from J.CO Donut & Coffee. They do not do
advertising in newspapers or television, but only using social media and their own websites.
Ineffective advertising would limit the user's knowledge about J.CO Donut & Coffee or products
sold by them. This is because there are certain groups who do not use social space as a source of
reference even those still using print media or on television advertising to influence them. Without
extensive advertising, this certainly would limit the promotion of their products.

Furthermore, J.CO Donut & Coffee also use strong marketing analysis in order to overcome their
weaknesses such as market segment, target market and positioning. For market segment, J.CO Donut
& Coffee are usually choosing any location that have high rate of population. They believe that by
doing this, they can easily spread and promote their product to the locals. Another benefit of
choosing this kind of place, they can have variety of consumer that come from different background,
buying behavior and needs. For demographic, most of the J.CO Donut & Coffee consumer are come
from group of people that love to eat, especially for food that have sweet taste regardless of their
genders and ages. This is why J.CO Donut & Coffee choose Asia country as their base or center of
marketing scope because they believe that most of the Asian love to eat something that not to heavy
but tasty.

Beside, for target market J.CO Donut & Coffee choose an urban and mega mall as their top
priorities. For them, a strategic place or location is everything because it can affect the result and
profits of a company. By selecting these type of location, they can easily having and attract consumer
that suitable for their product. J.CO Donut & Coffee set an aim for people that come with medium to
high rate of income as their costumer because most of their product quite pricy. Even though it’s a bit
pricy, it’s still worth because of the quality that J.CO Donut & Coffee provide for their consumer.

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Last for the positioning, J.CO Donut & Coffee come with the great taste that suitable for all type
people, its help them to make their costumer attracted and will buying J.CO Donut & Coffee product
for the second times. J.CO Donut & Coffee believe that their product quality is the best. Even
though, they are rarely advertising their product through medium such as television, radio or printed
media, people still come to them cause of their great service and goods. This is how they ensure that
their costumer will think automatically when they talk about donuts, coffee or yogurt.

3.3 Opportunities
As we all know, Malaysian people love to eat snacks and most of people make a donut as their side
dishes. So, J.CO Donut & Coffee takes this opportunity to further expansion in new location.
Different for Dunkin’ Donut, they take an opportunity due to Malaysian people love a sale by do an
online sale for their loyal customer. In Malaysia, J.CO Donut & Coffee has opened a total of 11
branches throughout the country. In Johor, J.CO Donut & Coffee has opened 4 outlets, followed by
Selangor at 3 outlets. Others such as Kuala Lumpur, Negeri Sembilan, Malacca and Penang are one
outlet only. Since J.CO Donut & Coffee already known by Malaysians, especially, so J.CO Donut &
Coffee has plans to open two new branches in Kedah and the East Coast. This is an excellent
opportunity because this will helps to increase sales and expand J.CO Donut & Coffee empire and
continues to be recognized in the eyes of the world.

Beside, wide range of products is much preferred by consumers. This is good opportunity for J.CO
Donut & Coffee to attract their loyal customer to keep stick with them. Because of J.CO Donut &
Coffee introduce various types of donuts, it became a magnet for strong attraction by the customer.
Buyers have a huge selection of donuts and coffee to choose. Each donut is served with different
flavors that are sure to make their customers really love it, especially young people. Coffee is also on
special import from Costa Rica and it smells delicious. Each donut creatively named based toppings
and flavors.
This creates a unique and easy to remember, for example, Cheese Me Up is the name for a donut
with melted cheese on top layer. Tira Miss U is the name for a donut topped with tiramisu. It’s

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different with other donut company. While other companies compete to increase promotion for their
products, J.CO Donut & Coffee just to make sure that their products is always in good quality. For
Dunkin’ Donuts, this is time for them to make menu diversification. The company has more than just
entertained the idea of breaking into lunch and dinner day parts over the past few years. Dunkin has
added new sandwiches and drink options to its menu to meet this growing demand.

Furthermore, for J.CO Donut & Coffee, they already know that their product is expensive and this is
their opportunity to offer an attractive promotions, offers and discount to their loyal customers. This
is how they manage their marketing strategy. Usually J.CO Donut & Coffee will make offer during
the festival or celebration such as New Year, Independence Day and “Hari Malaysia”. Every festival
they will come out with new donuts that only offer for the limited time. For example, the promotion
is buy 1 dozen will get free 1 drinks of coffee and only offer during the festival celebrated. J.CO
Donut & Coffee will never decrease or reduce their price, but they only make a promotions or offer
for a certain time only. The offer also will be in two or three days, not more than five days so that
they do not incur significant losses.

In order to compete with their competitor, J.CO Donut & Coffee make a strategy that their new outlet
will be open in more strategic place. The opening of a new outlet is from the survey that was
conducted among visitors to the mall involved. Based on survey was done, mall visitors in Kedah
and the East Coast are welcomed the opening of their donut empire since J.CO Donut & Coffee there
is no longer any open branches there. Most of them are very interested donut produced by J.CO
Donut & Coffee and can only be bought donuts and coffee if they travel to Kuala Lumpur or Penang.
This has restricted their desire to buy donuts from J.CO Donut & Coffee. So by opening their
branches in two states was selected will make the public more familiar with what J.CO Donut &
Coffee generate for consumer who likes to eat a donut. J.CO Donut & Coffee can also meet the high
demand in the region. By choosing strategic places, J.CO Donut & Coffee can expand their business
and make all the Malaysian people know about their products.

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Everyone knows that Malaysian people love to eat. Even they said the price are expensive, they will
still buy it. From this J.CO Donut & Coffee take this opportunity to change the way people live by
change in social patterns and lifestyle. When J.CO Donut & Coffee managed to persuade Malaysians
to be interested in all the food and drinks they provide, this will change people life style especially
for donut lover. If before this many people prefer to eat Korean food like sushi, they can try all kinds
of donut and no sense of doubt because the company has received approval from Jakim and has the
Halal logo that have been recognized.

With each outlet themed family concept, so this will be of interest primarily with families to come
and relax in their outlets. Without having to queue and café imaginable user-friendly, it will delight
everyone who came. For young teenagers especially, they can have time with their friends at any
J.CO Donut & Coffee outlet and enjoy with some donut and cups of coffee. This is how J.CO Donut
& Coffee attracts young people to become half of their loyal customer and can change a teenager’s
lifestyle from hangout at mall for nothing to have some enjoyed at their donut café.

3.4 Threats

As large companies that produce the best donut in the region Asia, certainly behind the success there
must be some great competition on a par with them. It cannot be denied since before the existence
J.CO Donut & Coffee, there are other companies that produce similar products such as Dunkin
Donut and they also has a same threat like J.CO Donut & Coffee. As a newcomer in the food
industry, J.CO Donut & Coffee had to compete with other companies to ensure that they can live a
long time in the making donut industry. This is definitely a big challenge for them because they have
to be more innovative in making donuts from being seen together with other donut company.
Therefore, before the company opened a donut their first empire in Indonesia, the founder of J.CO
Donut & Coffee, Matthew & Malar, has done extensive research on the making of donuts and flavor
to suit every donut produced. This study is important because it needs to generate donut with the
uniqueness that beats the existing donut.

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Beside, changing taste of the consumer is also one of the challenges or opposition to be encountered
by J.CO Donut & Coffee. What we can see now, a variety of "hipster" foods which became popular
especially among a young people. Among the latest is the preferred choice of homemade donuts.
Homemade donuts produced similar with the donut that produced by all companies in the country's.
Homemade donuts are produced with some new flavor that will appeal to donut lover. Prices were
much cheaper than J.CO Donut & Coffee or other companies. This becomes a great challenge for
J.CO Donut & Coffee especially because of changing consumer taste will affect the sales of their
donut but J.CO Donut & Coffee will not overreact by these issues. They take this positively because
they strongly believe that their products are the best. Even everyday their competitors will produce a
new donut with new flavor it still can’t be same with their donut that has been produce by the best
ingredients. Same goes to the coffee.

Now, many of homemade coffee people can get with a cheapest price. But J.CO Donut & Coffee still
become the best choice among the coffee lover. For Dunkin’ Donuts, unhealthy lifestyle become
their threat because their customer complaint that their product are too sweeter especially for old
man. Too many people have a problem with a lot of sugar intake. This can lead to many diseases
such as, Diabetes. Dunkin Donuts uses a lot of sugar in their products could be threatened by this
issue.

Based on the interview, equipment breakdown also become one of the threat in their management.
Machinery breakdowns are always costly and it will take a long time before they get a new machine.
This becomes a major problem because they had to borrow a machine in another outlet nearby. This
damage has slowed their service and suffered losses due to a donut that has been damaged. This
needs to be faced by J.CO Donut & Coffee when their machine is damaged.

They had to close the shop for a few hours while waiting for the machine to be borrowed. There are
times when they had to close up shop earlier than usual to avoid any problems arising from an
interrupted process. They also faced a problem that sort of workers in every outlets. When asked if
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the salary is making it a shortage of workers. J.CO Donut & Coffee answered salary offered is
among the highest in the food industry in Malaysia. The reasons given by the J.CO Donut & Coffee
is the average Malaysians lazy to work and it became problem when having a full house, due to short
of workers, their service become slow and make a customer waiting in long queue.

To overcome the threats, J.CO Donut & Coffee need to maintain their product quality to make sure
that their product still in first choice of Malaysian people. J.CO Donuts & Coffee’s donut are made
using machines, both when mixing the ingredients, cooking and making donuts topping. All
machines are used entirely imported from the USA. In order to maintain high quality product for
their customer, J.CO Donut & Coffee imported more than 70% of their ingredients from abroad. The
chocolate used for donut topping are specially imported from Belgium and the milk from New
Zealand. Most of their coffee products are imported from Italy and Costa Rica. Based on all this,
J.CO Donuts & Coffee positioned their self as premium quality products in the donut market in
Malaysia. Most of the raw material for making donuts J.CO Donuts & Coffee use goods imported
directly from the USA.

J.CO Donut & Coffee also will produce a new flavor for donut that will meet their loyal customer
next year. Their new flavor is fresh and no other competitor has produced the flavor in the market.
They promised that their new flavor will full their customer satisfaction and as a sign of appreciation
for the loyalty of their customers. J.CO Donut & Coffee will keep improve their quality in the future
so that their customer will always remember their products. To overcome the problem sort of
workers, they had to bring in workers from J.CO Donut & Coffee Jakarta to fill a vacancy in any of
their outlets. This is also one of the obstacles for J.CO Donut & Coffee because when they lack
workers, they had to draw workers to a longer time. The strategy that J.CO Donut & Coffee do to
overcome their threats will help them in future and become strong company that produces good
products in the world.

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4.0 OBJECTIVES AND ISSUES

4.1 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

4.2 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 make a difference in our community
Grow the number of customers by 25% by the end of 2015
Increase revenue from existing customers by 30% in 2 years
To provide perfect locations for hanging out
To treat each other with respect and dignity

4.3 Awards
In its first year of operation, J.CO Donuts & Coffee was awarded "Marketing Award" as the brand
with the best product innovation. Following this award, J.CO won "Best Donut 2006" by FREE
Magazine at the end of 2006. In early 2008, J.CO Donuts & Coffee received the award "The
Integrated Marketing Strategy Champion 2008" by SWA business magazine and Mark Plus Co.
Since its establishment, J.CO has already won many awards.

4.4 Objective

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J.CO Donuts & Coffee are international premium Donuts and Coffee brand, and they offer unique
flavours of donuts and beverages to their customer like they've never tasted before. J.CO Donuts and
Coffee only uses the best ingredients from all over the world - such as Belgian Chocolates,
Californian Almonds, Japanese Matcha Green Tea and Italian Roasted Coffee in their products. The
first outlet opened in Indonesia on June 26th, 2005 at Supermall Karawaci. After founded on June
2005, within less than 6 years of operation, J.CO has succeeded in opening more than 120 outlets
throughout Asia with its expansion in Indonesia, Singapore, China and Malaysia.

4.5 Issue
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.

5.0 J.CO DONUTS & COFFEE’S MARKETING ENTRY STRATEGY

Market entry strategy can be defined as the planned or method of delivering and distributing products
or services to a target market. As J.CO Donut & Coffee are originated from Indonesia, they need a
strong market entry strategies in order to maintain in their business outside Indonesia. In marketing,
there are many ways on how a company can enter foreign market or international market. According
to J.CO Donut & Coffee Malaysia, they use franchising strategy as it is works well for a company
especially food industry that have a strong brand name.

J.CO Donut & Coffee said that they believe in their brand name and thus it can be utilized
internationally around South East Asia. Other than Malaysian and Indonesia, J.CO Donut & Coffee
are available in Philippine and Singapore. They are planning to expand their business in Brunei and
Korea in the next 5 years.

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5.1 Marketing Mix

According to McCarthy’s, there are 4 basic elements that comprise any marketing strategy which is
product, price, promotion and place. As a new player in a food and beverages industry in Malaysia,
J.CO Donut and Coffee have use these four elements in order to reach certain target customer.
According to them, their marketing mix is simple to understand and it is important for them
especially their franchisor to identify on what market sector there were in.

In general, the first element of marketing mix is price which refers to how and how much a client
will be charged. The product can be anything from cheap to a luxury item. It can be paid for all at
once or divided into monthly payments. There are also other strategies, such as psychological price,
pay what you’d like, auctions and many more.

Second, place are refers to the setting in which this product will be made available. It could be online
or in physical stores. Delivery and service deadlines are also a concern to be addressed in this
element. In many cases, it’s best to make sure that company’s product and place match as much as
possible. For example, sports products are best sold in gyms or recreation centers.

The next element of marketing mix is product. Product refers to the company’s product or
service’s characteristics and attributes. Company therefore should decide on size, colour, design and
the general functionality of what the company offered to their customer.

Lastly, promotion refers to the marketing strategies used. This involves both digital marketing such
as affiliate links, Fan Page, social media, and offline strategies such as outdoors and newspaper
advertisement.

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5.1.1 J.CO Donuts & Coffee’s Product

J.CO Donuts & Coffee is present in the community with several kinds of products on offer. Their
products are donuts, coffee, chocolate, as well as the newest products, yogurt. JCO Donut and Coffee
claimed that their product such as beverages as superior quality beverages and innovative range of
“light-as-air-donuts”. Differ from their competitor, J.CO Donut and Coffee served the same product
with the same name in their entire store in South East Asia.

J.CO Donuts & Coffee’s donut are made using machines, both when mixing the ingredients, cooking
and making donuts topping. All machines are used entirely imported from the USA. In order to
maintain high quality product for their customer, J.CO Donut & Coffee imported more than 70% of
their ingredients from abroad. The chocolate used for donut topping are specially imported from
Belgium and the milk from New Zealand. Most of their coffee products are imported from Italy and
Costa Rica. Based on all this, J.CO Donuts & Coffee positioned their self as a premium-quality
products in the donut market in Malaysia. Most of the raw material for making donuts J.CO Donuts
& Coffee use goods imported directly from the USA and several other countries. Therefore, the
procurement of raw materials is a very important part in the production process of J.CO Donut &
Coffee’s products.

J.CO Donuts & Coffee offer unique experience to their customer by offering open kitchen concept in
their store, where their customer can actually see thru the glass panel the making of J.CO Donut &
Coffee’s donuts and product. This uniqueness makes their brand different from other competitors and
it makes them one step forward over their competitors. Other than that, J.CO Donut
Coffee have named each of their donut in accordance with creative toppings and flavours to create
a unique and easy to remember names, for example, Cheese Me Up is the name for a donut with
melted cheese on top. Tira Miss U is the name of a donut topped with tiramisu. Currently JCO Donut
& Coffee offered 28 different flavours and topping of donut, 26 various flavour of beverages and
four yogurts based product to their customer.

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The J.CO Donut & Coffee offer high quality packaging for their product as they believe that a
quality product starts from how it look on the outside. Currently, J.CO Donut & Coffee will served
their donut on a box of 12 pieces, 6 pieces and 3 pieces. For their beverages, their offer a plastic cup,
glass mug and their customer can buy their own J.CO Donut & Coffee merchandise such as special
printed glass mug and bottle. Below are some of the J.CO Donut & Coffee’s donut that was currently
offered in market:

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5.1.2 J.CO Donuts & Coffee Price

J.CO Donuts & Coffee mentioned that pricing is one of the most important elements of the marketing
mix, as it is the only mix, which generates a turnover for the company. The remaining 3p’s are the
variable cost for the company. It costs to produce and design a product, it costs to distribute a
product and costs to promote it. Price must support these elements of the mix. Pricing is difficult and
must reflect supply and demand relationship. According to J.CO Donuts & Coffee, in Malaysia
market, pricing a product too high or too low could mean a loss of sales for the company.

In order to maximize their profit, J.CO Donuts & Coffee have listed some of the factors that affected
their product’s price such as fixed and variable costs. Currently J.CO Donuts & Coffee fixed cost are
rent, insurance, license and loan payments while their variable cost are ingredients, staff salary, and
many more. The next factors are their competitor’s price, their target group salary and their
willingness to pay for the product.

J.CO Donuts & Coffee reveal that they undergo several pricing strategy when it enter Malaysia
market. Some of the pricing strategy that they use is penetration pricing which is the pricing
technique of setting a relatively low initial entry price, usually lower than the intended established
price, to attract new customers. According to J.CO Donut & Coffee, this strategy aims to encourage
customers to switch to the new brand in Malaysia because of the lower price. J.CO Donut & Coffee
said that this strategy have some advantages for their company such as encouraging word-of-mouth
recommendation for the product because of the attractive pricing thus making promotion more
effective. Other than that, it also forces the business to focus on minimizing unit costs right from the
start as the productivity and efficiency are important.

Currently J.CO Donut & Coffee price was set using competition pricing strategy where they set a
price in comparison with competitors such as Big Apple Donut, Dunkin Donut and many more.
Among this three major competitor, J.CO Donut & Coffee price are at the highest because they said
that they believed their customer will always come back to their store as they are using high quality

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ingredients imported from all around the world to produce high quality product such as donut and
beverages. Setting the price higher also known as price skimming strategy as the price are set to high
to reflect the exclusiveness of the product as J.CO Donut is known for their high quality of their
ingredient and exclusiveness of their café and restaurant. All transaction in all stores in Malaysia
with their customer based only on cash only.

5.1.3 J.CO Donuts & Coffee Promotion

When asked about promotion that was being used by J.CO Donuts & Coffee, they said that
promotion is the business of communicating with customers. Referring to the promotion mix
strategy, J.CO Donut & Coffee claimed that they are using pull strategy which mean they usually use
social media network to advertise their product in order to create a stronger consumer demand. They
believe that promotion will provide information that will assist their customer in making a decision
to purchase a product or service.

The cost associated with promotion often represents a sizeable proportion of the overall cost of
producing the product. However, successful promotion increases sales so that promotion and other
costs are spread over a larger output. Though increased promotional activity is often a sign of a
response to a problem such as competitive activity, it enables J.CO Donuts & Coffee to develop and
build up a succession of messages and can be extremely cost-effective.

They also believe that promotion is the method that they should be using to spread the word about
their product to customers, stakeholders and the broader public. According to J.CO Donuts & Coffee,
once they’ve identified their target market, they’ll have a good idea of the best way to reach them.
For J.CO Donut & Coffee, they are choosing sales promotion strategy and public relations strategy to
promote their products.

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5.1.4 J.CO Donuts & Coffee Place

In the marketing studies, place is concerned with various methods of transporting and storing goods,
and then making them available for the customer. Getting the right product to the right place at the
right time involves the distribution system. For J.CO Donut & Coffee, they prefer on selling the
product directly to their customer or also known as direct distribution to consumer.

According to J.CO Donut & Coffee, efficient and effective distribution is important if the company is
to meet its overall marketing objectives. If a company underestimates demand and customers cannot
purchase products because of it, profitability will be affected. They choose not to distribute their
product by using wholesaler, retailer or agent because they need to maintain the freshness of their
product in order to maintain the high quality taste of their donut and beverages. Other than that, they
also regularly change their unsold donut each in 3 hours and some of the unsold donut will be given
to orphanage house to prevent any waste of food. As J.CO Donuts & Coffee are one of the exclusive
café, they deliberately chose a place that is frequently visited by public. It became J.CO Donut &
Coffee priority to ensure that their store is located in suitable area such as shopping mall. In
Malaysia, all J.CO Donut & Coffee café are situated inside famous shopping mall such as Pavilion,
Palm Mall Seremban, Queens bay Mall Penang and many more. They said the location will be the
key of the success of their store so they focus on choosing a ground floor location and near an
entrance location in the shopping mall.

5.2 Strategy Alternatives

5.2.1 Product Life Cycle (PLC)
J.CO & Donut said that their customer always expect new product during the festive season and this
is become customer demand are unlimited and it is J.CO Donut & Coffee challenge to accommodate
the needs of their customer. The needs and demand of their customers change over time and thus the
product offering has to be changed accordingly. In order to stay in top of the business, J.CO Donut &

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Coffee always assume that what is favourite product today may be out of market within few months.
Thus innovation is required to maintain the customer needs and the company profit.

To counter these changes J.CO Donut & Coffee have their own research and development (R&D)
located in Jakarta, Indonesia. The J.CO Donut & Coffee R&D are responsible on producing a new
flavour whether it is donut, beverages or yogurt. They claimed that their R&D played an important
role in attracting their customer thus although they experience loss during product development
stage, they always gaining profit when the product reached growth stage. Since its opening in
Indonesia, J.CO Donut & Coffee are continuously introduced a new products during festive season
and has phased out the old ones which were at the decline stage of their product life cycle. The
introduction is timed such that the new product does not cannibalize the product already in the
maturity or growth stage. Thus the secret lies in getting profits with same product but different
topping or flavour in the different stages of the PLC.

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J.CO Donut always monitored their annual sales volume based on product to keep their time on PLC
in maturity mode. 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. This is to ensure
that they didn’t lose their customer, profit and to delay the decline of a well-established product
which has the potential of generating further revenue.

5.2.2 BCG Growth-share Matrix

According to BCG Matrix, J.CO Donut & Coffee can be considered as the question mark in the
Malaysian donut industry. The reason for this is its high market growth and their low market
share in the Malaysia market. These happened due to the several reasons such as J.CO Donut &
Coffee is the younger competitor in donut industry. In Indonesia market however, J.CO Donut is

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the star because they have high market share and high market growth. J.CO Donut & Coffee are
aiming to become the star in Malaysia donut industry by planning to open several dozen café in
the coming year.

By having a high market share and high market growth, Big Apple Donut & Coffee are the star
because they have 85 outlet and café selling their product and some of the public are already
being customer with Big Apple Donut for a long time as Big Apple is Malaysian company and
it’s the pioneer in Malaysian donut café concept. The cow in Malaysian donut industry is Dunkin
Donut as Dunkin Donut although have high market share, it have a low growth rate. Currently,
Dunkin Donut is having 81 café in Malaysia including Sabah and Sarawak. Dunkin Donut have
low growth rate may be due to their same menu with new product being introduced since their
opening. Lastly, Krispy Kreme is considered as the due to its low market share and low market
growth. Krispy Kreme currently has 12 stores in Malaysia and it is assume that it the dog because
the brand is from United State of America and it is not widely known by public.

5.2.3 Five Forces Driving Profitability

5.2.3.1 Supplier Power
J.CO Donut & Coffee’s case have a large population of suppliers for their ingredient however they
claimed that their bargaining power of suppliers is moderate. This is because they have a good
relationship with their suppliers thus making the bargaining power is fairly stable currently. It is also
believed that the reliance that J.CO Donut & Coffee’s has on suppliers is equal to the reliance
suppliers have on J.CO Donut & Coffee’s.

On one hand, J.CO Donut & Coffee’s has a good supply chain of quality ingredients at fair prices
while on the other hand, suppliers are surely content with supplying to a large consuming company
such as J.CO Donut & Coffee’s. However, there are many substitute suppliers out there that can
replace current suppliers such as their supply of coffee bean and chocolate. J.CO Donut

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& Coffee is importing their ingredient for their product came from same region for their entire store
in South East Asian. Most of the J.CO Donut & Coffee ingredient supplier are kept as company
secret.

5.2.3.2 Buyer Power

The biggest challenge faced by J.CO Donut & Coffee is the buyer power as in Malaysia, there are
many others competitor and it usually have a significant choice in donut and coffee shops. In
addition to that, with the Malaysia law, it was with difficult and involves a lot of money to patent
their coffee, donut or yogurt product. Due to this reason, a lot successful innovations by J.CO Donut
& Coffee such as the Oreo Frappe are subject to copycat products.

In order to serve their customer well, J.CO Donut & Coffee have an official customer service website
in their official website where their customer can shared their idea about J.CO Donut & Coffee new
product or giving suggestion on how the company should improve. Since its opening in Malaysia,
J.CO Donut & Coffee received more than 2, 500 ideas and suggestion from their customer and
Malaysia. From that number, J.CO Donut & Coffee have regularly do a blind taste for their product
to all their loyal customer.

According to the study done by the J.CO Donut & Coffee R&D Department, their decision which is
to allow the customer share their idea is helping them building a stronger relationship with their
customer. Listening to customers will generate loyal customer, which is clearly critical in an industry
with low switching costs. J.CO Donut & Coffee claimed that they need to maintain their product and
customer service at the highest level because there are many competitor in Malaysia donut and coffee
market.

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5.2.3.3 Threat of New Entry

J.CO Donut & Coffee brand image is very strong in South East Asia as a high quality donut and
coffee seller. This creates power by reducing customer susceptibility to visiting competitor stores in
proximity to J.CO Donut & Coffee, making it a hard market for new entrants. According to the J.CO
Donut & Coffee and regular visitor of Pavilion, after 3 month of J.CO Donut & Coffee opening its
store in Pavilion, their competitor Dunkin Donut have closed their store in Pavilion.

In Malaysia, there is a relatively low threat of new entrants into the Malaysian coffee and snack shop
industry. Other than that, there are not many competitors in exclusive donut & coffee café, it is not
an easy for a new entry to build a strong brand that could match the J.CO Donut & Coffee brand.
According to J.CO Donut & Coffee, they build a strong brand name for almost 10 years in South
East Asia and many of their competitors take almost 15 years.

Although it is still possible for a new entrants to thrive in this market, they may experience several
problem for example, licenses, insurance, or other qualifications that may be required are not hard to
obtain In addition, since customers incur minimal switching costs when switching suppliers, they are
able to buy from multiple stores. This element of the Five Forces analysis shows that the threat of
new entrants is a low threat issue for J.CO Donut & Coffee.

5.2.3.4 Threat of Substitute

In all of the five forces, threat of substitute is the highest threat to the company. The threat of
substitute products and services is high. Coffee and snacks café concept restaurant that are serving
donut is a substitute products for J.CO Donut & Coffee. Café and restaurant that served similar donut
include nationwide chains are Dunkin Donut, Big Apple Donut, Krispy Kreme and also Mister
Donut. Substantial substitute products exist in the Malaysian donut & coffee industry whether they
are similar in nature or completely different, yet still classifiable as fast food.

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5.2.3.5 Competitive Rivalry

To conclude, it is clear from the above explanations that the J.CO Donut & Coffee brand does offer
the company significantly enhanced competitive rivalry through its contribution to the reduction of
all four threats.

Therefore, in accordance with Porter’s Five Forces theory, it can be said that J.CO Donut
& Coffee strong brand influences its external environment and the donut and coffee industry as a
whole. J.CO Donut & Coffee’s faces tough competition because the donut and coffee market is
already saturated. J.CO Donut & Coffee also claimed that their brand identity within the industry is
also a huge factor for the rivalry, as three major brands have captured the majority of the market. It is
important to note, however, that the industry does not have over capacity at the moment.

5.2.4 Product-Market Expansion Grid

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In the Product-Market expansion grid, J.CO Donut & Coffee are located in the product development
strategy. They claimed that this strategy suit the business that they are in. Product develop can be
define as developing new products and offering to the existing current markets. These strategies
often try to sell new products to regular customer. Product development is used when there is a new
product which has to be introduced in an existing market. In J.CO Donut & Coffee, they regularly
introduced new donut topping and beverages flavour. When they introduced new product, they
sometimes removed the less profit product. The department that responsible for product development
in J.CO Donut & Coffee are their Research and Development (R&D) department.

5.3 Market Communication Mix

For J.CO Donuts & Coffee, it is their policy that they rarely use advertising on television and radio.
They usually rely on sales promotion and public relations to promote their products or services. Sales
promotion relates to short term incentives or activities that encourage the purchase or sale of a
product or service. Some of the promotion that J.CO Donuts & Coffee do is each festive season, they
will introduce new donut flavour with lowest price in order to increase their chance to get new
customers. Other than that, J.CO Donuts & Coffee also contributed a lot to the society thru corporate
social responsibility (CSR) programme.

Public relation refers to how you handle your relationships and the flow of information with your
various "publics" or the people who have a stake in or are affected by your business. This includes
the general public, consumers, shareholders, employees, partners, competitors and the government.
J.CO Donuts & Coffee’s CSR programme is also known as one of the public relations (PR) strategy
used by J.CO Donuts & Coffee. According to Chartered Institute of Public Relations, public relation
is defined as the deliberate, planned and sustained effort to establish and maintain mutual
understanding between an organisation and their publics. J.CO Donuts & Coffee said that their
public relations is about building good relations with the public of your business by obtaining
favourable publicity, building a good corporate image and handling or heading off unfavourable
rumors, stories and events.

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Currently, J.CO Donuts & Coffee CSR programme only involved activity with orphanages and
homeless people around Kuala Lumpur area. J.CO Donuts & Coffee believe that building good
relationships with your stakeholders, particularly customers, you can generate positive word of
mouth and referrals from satisfied customers. Many small businesses do not devote enough attention
to public relations in their promotional mix but done properly, it can be a powerful and cost effective
business development and marketing tool.

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6.0 ACTION PROGRAM

6.1 Gantt Chart

Activity JAN FEB MAR APR MAY JUN JUL OGO SEP OCT NOV DEC AMOUNT
BUDJET

RM
Promotion 800,000
Raya

Orphanage RM
and Sponsor 60,000

International RM
JCO meeting 30,000

Service RM
Equipment 15,000

Hiring and RM 60,000

Training

Research RM
and 60,000
Development

JCO RM 15,000
Malaysia
Meeting

Based on the Gantt Chart stated above, JCO Donut and Coffee had a promotion during each
festival that celebrates in every religion. At each year, they will do a promotion include the
Chinese New Year, Hari Raya Aidilfitri, Deepavali and Christmas. Besides on the promotion,
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at every three times a year, they will do a sponsor towards the orphanage within January,
May and December.

Meeting with the international JCO meeting had always done total of six months in a year
which is straight from the January until June. On top of that, on the grey scale above stated
that JCO had their service equipment at every three times a year that is on March, April and
May. Therefore, their equipment is always in a good condition. On the black scale above, the
JCO Donut and Coffee hiring and training the employees at every three months in a year
which on January, February and March. Throughout the training, the company served a good
technique and skill for their work. Most of the time, research and development had the
longest period compare to the other activities. The Gantt chart above shows that, the
company done it at every twelve times in a year that from the January and December which
they always making an improvement on the taste of their drink and food to satisfied their
customers. Before the development been made, they always do a research by having a survey
and online survey giving out towards the customers to know exactly what is less on their
foods and drink or even their services.

Last but not least, At every three times in a year JCO held a meeting between the CEO’s of the JCO
in every state in Malaysia that are on April, May and June. Throughout the meeting, most of the
time, they are discussed about the financial problem or to solve the problem that their company
faces. The problem that the company faced in targeting the time that had been set, there are several
problem that they face especially because of the employees itself. Less numbers of workers caused
the company severe a problem. As what that we had earned from the interview that we had made,
Malaysian people are not giving their interested towards the jobs and demanding for a better job.

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Other than that, from what we have known based on the interviewed that we had done, the problem
that cause the problem is the equipment. Less of equipment that are provided for the company. The
JCO Donut and Coffee divided the task towards their employees in order to achieved their time that
have been set, the company find a solution to achieve it by creating a timetable toward each of the
employee. The time working for each of the employee for the JCO donut and coffee is eight hour a
day. The period of time for the work hour is long due to the lack of worker for the JCO. On the other
hand, if the worker didn’t perform well for the JCO they will attend for the couching and counseling
and they will have 2 months’ notice before they were terminated for the job.

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7.0 BUDGET
This section aims to analyses the overall budget of J.CO Donuts & Coffee Malaysia (Pavilion
Branch) in terms of their target sales and the actual generation of income which consists of 3 phases;
daily, monthly and yearly projection.

7.1 Products
To understand how J.CO Donuts’ budget works within its business operation, we must first take a
look at the range of product they deliver to understand the dispersal of prices. J.CO Donuts’ offers 5
different varieties of food products, which are:

1. Donuts: The donuts that come in 24 different flavours are sold in 3 different quantities
which are a dozen per box, half a dozen per box and ala-carte. The amount of donuts
produced in J.CO donuts (Pavilion) is 5000 pieces daily. The actual projection they
managed to sell is at the capacity of 3,500 pieces daily average, which amounts to
105,000 pieces monthly.

2. J.Coffee: J.Coffee managed to sell at an average of 90 cups per day, which comprised
of 3 different sizes; tall, grande, venti. For an extra RM1.00, you can upgrade from
medium to large. This coffee comes in 26 different varieties.

3. J.Club - J.Club are sold at an average of 30 units per day, they come in 2 different
flavours. They are one of the least within the product to generate sales throughout their
daily operation.

4. J.Pops - J.Pops or Baby Donuts is also popular among its customers, with a box of 24
pieces, they are selling at an estimated 40 boxes per day.

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5. J.Cool Yogurt- The J.Cool Yogurt is also apparently selling 40 cups average per day
which comes in 4 different sets.

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7.2 Calculations
The breakdowns for the calculation of unit sold are as follows:

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7.3 Profits
1. Gross profits:
3. Daily = RM 7650 + RM 660 + RM 180 + RM 720 + RM 408 = RM 9618
4. Monthly = RM 229500 + RM 19800 + RM 5440 + RM 21600 + RM 12240 =
RM 288,580
5. Annually = RM 2,754,000 + RM 237,600 + RM 64800 + RM 259,200 + 146880 =
RM 3,462,480

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7.4 Breakdowns
Monthly gross profit = RM 288,580
1. Cost of raw materials: RM 70,000 (24.25%)
2. Workmanship: 20 employees ( RM 1,800 each) + 2 store manager (RM 2,200) = RM 40,400
(14%)
3. Premise rental: RM 20, 000 (7%)
4. Utility bills: RM 5,000 (1.7%)
5. Franchise monthly fee: RM 10,000 (3,4%)
6. Monthly Profit Margin: RM 143,180 (49.61%)

7.5 Budgeting Method

For this section, we will use Task and Objective approach of budgeting. This method will analyses
and determine how much funds to be spend on sales and promotion, marketing and advertising which
will based on the desired results. It will involve:

1) Setting specific objectives

2) Deciding what tasks need to be completed to achieve those objectives
3) Calculating how much money it will cost to complete the task list

J.CO Donuts and Coffee Malaysia uses the objective and task method of setting up its advertising
budget. The advertising manager feels that this method is the best way for the company to plan its
advertising. The store’s staffs first identify the merchandising events that will be held during the
budget period. Then the manager determines the advertising that will be needed to promote these
events properly, how much advertising will cost, and sets up the budget according to these figures. If
the competition proves particularly active in promoting one category of merchandise the advertising
budget can be adjusted so that additional funds can be spent to promote this merchandise.

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(a) Planning the budget

The following list explains the merchandising events, which are held during this year. For each event
funds have been estimated for advertising expenditures that will be needed to accomplish the
promotion.

7.6 Promotions and Activities of J.CO Donuts & Coffee Malaysia

Raya Promotions include Chinese New Year, Hari Raya Aidilfitri, Deepavali & Christmas.
(Digital Advertisement & Hampers for poor people RM200,000)
Orphanage and Sponsor (CSR)- January, May, October and December (RM 20,000 each
month)
J.CO International Meeting- January until June (RM5,000 each month)
Equipment Service- March, April and May (RM5,000 each month)
Hiring and Training- January, February and March (RM20,000 each month)
Research and Development for 1 year (RM5,000 each month)
JCO Malaysia Meeting- April, May and June (RM5,000 each month)

CALCULATION
MONTH TASK OBJECTIVE AND
COST

JANUARY CSR Donation for RM 20000

J.CO International Meeting Orphanage RM 5000
Hiring and Training Discuss marketing RM 20000
Research/Development plans RM 5000
TOTAL:
Enhance staffs RM 50,000
performance
Enhance sales and
services

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FEBRUARY J.CO International Meeting Discussing means of RM5000

Hiring and Training effective promotions RM20000
Research/Development Enhance Staffs RM 5000
TOTAL:
Enhance sales and RM 30,000
services

MARCH Raya Promotions (Digital Chinese New Year RM 200000

Advertisement) Promo RM 5000
J.CO International Meeting Discussing unified RM 20000
Hiring and Training agreements RM 5000
Equipment Servicing Enhance Staffs RM 5000
TOTAL:
Research/Development Maintain and restore RM235,000
equipment’s
Enhance sales and
services

APRIL J.CO International Meeting Discussing problems RM5000

Equipment Servicing and solutions RM5000
Research/Development Maintain equipment RM5000
J.CO Malaysia Meeting Enhance sales and RM5000
TOTAL:
services RM 20,000
Discussing local promo

MAY CSR Old Folks Home RM20000

J.CO International Meeting Discussing expansion RM5000
Equipment Servicing Maintain equipment RM5000
Research/Development Enhance sales and RM5000
J.CO Malaysia Meeting services RM5000
TOTAL:
Discussing problems RM 40,000

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JUNE J.CO International Meeting Maintaining Efforts RM 5000

Research/Development Enhance sales and RM 5000
J.CO Malaysia Meeting services RM 5000
TOTAL:
Discussing Solutions RM 15,000.

JULY Raya Promo (Digital Hari Raya Aidilfitri RM 200000

Advertisement) Promo RM 5000
TOTAL:
Research/Development Enhance sales and RM 205,000
services

AUGUST Research/Development Enhance sales and RM 5000

services

SEPTEMBER Research/Development Enhance sales and RM 5000

services

OCTOBER Research/Development Enhance sales and RM 5000

services

NOVEMBER Raya Promo (Digital Deepavali Promo RM 200000

Advertisement) Enhance sales and RM 5000
TOTAL:
Research/Development services RM205,000

DECEMBER Raya Promo (Digital Christmas Promo RM 200000

Advertisement) Orphanage donation RM 20000
CSR Enhance sales and RM 5000
TOTAL:
Research/Development services RM225,000

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TOTAL:
RM50, 000 + RM30, 000 + RM235, 000 + RM20, 000 + RM40, 000 + RM15, 000 +

RM205, 000 + RM5, 000 + RM5, 000 + RM5, 000 + RM205, 000 + RM225, 000 =

RM960, 000 annually.

RM 3,462,480 – RM960, 000 = RM 2, 502, 480 annual net profit.

8.0 CONTROL
Marketing control is the way to compare your actual results to your marketing plan. To confirms that
your company already in the right track. The control step will help the company to improve the
performance. There are four tools of control in marketing which is Annual-plan control, Profitability
control, Efficiency control, Strategic control. J.CO Donuts & Coffee is using an Annual plan control
and profitability control for their business purposes. Annual plan control is the process to aim and
achieve sales volume and all objectives which already have been set up by the company. After that,
profitability control is how the company controls the sales made, profit earned and expenditures
incurred by them. Usually it relates with profit earning capacity of firm’s product by the company.
J.CO Donuts & Coffee will look back all the process get to know what they achieve. Even though
J.CO Donuts & Coffee already plans their strategy smoothly but there’s no guaranty profit for it.

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8.1 Annual Plan Control J.CO Donuts & Coffee

8.1.1 Sales Analysis
8.1.1.1 Sales Target for a Month

Sales Goals
5000 pieces day X 30 days = 150,000 pieces of (donuts a month)
J.Coffee = 200 cups per day
J.pops = 100 boxes per day
J.cool yogurt = 70 cups per day
Club = 50 units per day

J.CO Donuts & Coffee target their sales every month depends on quantity of donut that produce. they
target that every outlet will produce around five thousand pieces every day which is can produce
around hundred and five thousand pieces of donuts every month.

Actual sales
3,500 pieces X 30 days =105,000 pieces of (donuts a month)
J.Coffee = 90 cups per day
J.Pops = 40 boxes per day
J.Cool yogurt = 40 cups per day
J.Club = 30 units per day

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Eventually, J.CO Donuts & Coffee not achieve their target every month, their just achieve around
3,500 pieces of donut a day. This show has some issue of what they already planned. .

8.1.1.2 The Issues Why J.CO Donuts & Coffee Can’t Achieve Target
Price

The most important part that the company needs to consider is price. Before J.CO Donuts & Coffee
enter Malaysia market their already has their plan for price. For instance, J.CO Donuts & Coffee
used penetration pricing which is the pricing technique of setting a relatively low initial entry price,
usually lower than the intended established price, to attract the customer.

J.CO Donuts & Coffee was not achieve their target sales because of the others competitors has a
cheaper price of donut than them, their gives the best quality of donut to the customer. 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. For instance, J.CO Donuts & Coffee used the chocolate that
import from oversea such as from Belgium.

Style
J.CO Donuts & Coffee actually not seem the others ordinary donut company. J.CO Donuts & Coffee
ideas actually selling lifestyle, which is all type of people, can enjoy their donut and coffee with
happiness in the outlet. They most competitors are Big Apple and Crispy Crème because these
company also selling donut, but J.CO Donuts & Coffee also takes the café such as Starbuck and
coffee Bean as their competitors too. That the reason they one of the pricy Donut among the
competitor.

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Promotion
Promotion is the one of the strategy to makes the company popular in market. J.CO Donuts & Coffee
is the company just does the promotion in the outlet with give information to the customer about
their new promotion and to increase their sales. Due to this style of promotion J.CO Donuts
& Coffee enables to develop and build up a succession of massages like the others competitors did.

8.2 Market Share Analysis

Market share based number of outlets that J.CO Donuts & Coffee have in Malaysia.

Market share is the amount of consumer sales dominated that same product in particular industry.
The market share analysis of J.CO Donuts & Coffee, this Cafe has two close competitors which are
Big Apple and Krispy Kreme. These brands were selling the same product with them which is Donut

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and coffee. Big Apple leading the market followed by J.CO Donuts & Coffee and next is Krispy
Crème.

8.2.1 Big Apple

This is because Big Apple already has over 80 branches in Malaysia. Big Apple brings the cheaper
price of donut compared to the J.CO Donuts & Coffee. They also creates makes the topping of donut
to the maximum compared to them. The fact is J.CO Donuts & Coffee actually brings the truly taste
of donut not just about the feeling and topping.

8.2.2 Krispy Kreme

Krispy Kreme already has 12 branches around Malaysia. The price of Krispy Crème more pricy
compare to this two brands. Besides doughnuts, Krispy Kreme also offers high-quality brewed
coffee, roasted by Krispy Kreme’s own roast master and a variety of other delicious beverages.

8.2.3 Most profitable product

The most profitable is the Donut, majority customer carving for it. J.CO Donuts & Coffee staff said
glaze donut is the best donut that they have. After that is baby donut, the 24 pieces of small donut
with a variety flavors that compile all together. Everyday J.CO Donuts & Coffee donuts will sell
donut around 230 box of dozen.

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8.2.4 Marketing Expense to Sales Analysis

Promotion gross profit

8.2.5 Profitability Control

J.CO Donuts & Coffee marketing department said the way they achieve the target sale for every
month depends on expenditures internal and external in their company. After that, the external
control is based on promotion, customer and place of shop.

8.2.5.1 Internal control

Staffing
Usually internal factors are about the staffing in the company. In J.CO Donuts & Coffee all the staff
will be divided by three departments which is first is store manager and assistant manager, next is
bakers and lastly is the front line. JCO Donut and Coffee hiring and training the employees at every
three months in a year which on January, February and March .Throughout the training, the company
served a good technique and skill for their work

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Workmanship: Employees salary (Each Outlet)

20 employees (RM 1,800 each) + 2 store manager (RM 2,200) = RM 40,400 (14%)

The manager needs to monitor the bakers to achieve the target amount of donut every day and the
front liner needs to push the sales of donut and coffee. J.CO Donuts & Coffee needs to produce every
day is about 4000-5000 pieces. 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.

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. Even though their donut is one of the pricy but
the most important the quality of ingredient that their using. Quality and price actually are come
together.

8.2.5.2 External Control

Promotion
J.CO Donuts & Coffee said their do the promotion in outlets which is the promotion needs to be done
by the front liner. Other than that, J.CO Donuts & Coffee do their promotions with celebrates the

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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.

OUTLET RAYA PROMOTION

MARCH
RAYA PROMOTIONS (Digital Advertisement)
Chinese New Year Promo = RM 200,000

JULY
RAYA PROMOTIONS (Digital Advertisement)
Hari Raya Aidilfitri = RM 200,000

NOVEMBER
RAYA PROMOTION (Digital Advertisement)
Deepavali Promo = RM 200,000

DECEMBER
Raya Promo (Digital Advertisement)
Christmas Promo = RM 200,000

Next, J.CO Donuts & Coffee also makes their customer satisfied with their service. They needs to
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. Lastly, J.CO Donuts & Coffee
maintain their strategic place and know the profitability place. Usually, they 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.

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