1. EXECUTIVE SUMMARY
1.1 History Of Gardenia
1978: Humble beginnings as an in-store bakery in Singapore
1983-1996: Became the first commercial bakery at Pandan Loop; Rose as the market leader in Singapore. Expanded operations in Asian countries such Malaysia, Thailand and the Philippines
1997: Gardenia entered the Philippine bread market and established its factory in Laguna International Industrial Park (LIIP), Binan, Laguna
1998: Gardenia Philippines started operations with its first state-of-the-art factory rated as one of the largest and most modern bread manufacturing facility in the country
1999: The healthy High Fiber Wheat Bread Loaf is launched
2000: Introduction of the Flavored Loaf and Bun Lines. The first flavored loaves included the California Raisin and Chocolate Chip Loaves. This year also marked the start of Gardenia’s Corporate Social Responsibility programs.
2001: Gardenia launched its version of every Filipino’s favorite, Pan De Sal.
2002: Gardenia opened its doors for a free catwalk tour for guest to experience modern bread making.
2003: Gardenia received International Organization for Standardization (ISO) and Hazard Analysis Critical Control Points (HACCP) certifications
2004: Gardenia was accorded Supe rbrands status by Super brands Ltd., an independent authority and arbiter on branding
2005: Inaugurated two new plants and its Distribution Centre
2006: Introduced the Muffin-tastic line
2007: Indulged the consumers through introduction of its Amazing Flavored Loaf Line and the Cream Roll Line
2008: Gardenia marked its 10th year in the Philippine bread industry
2009: Gardenia inaugurated its first 6K plant capable of making 6,000 loaves of bread per hour
2010: Gardenia once again developed an innovative health product to give a twist to its already existing High Fiber Whole Wheat Bread. The flavorful, plump, and juicy High Fiber Wheat Raisin Loaf was a combination of high fiber content from whole wheat flour and juicy California raisins.
2011: Gardenia invested a bread plant in Cebu. The company bagged three Program Achievement awards from the Department of Trade and Industry (DTI)
2012: Gardenia conducted the first ever Happy Bread Day in the country, it’s very own celebration of World Bread Day
2013: Gardenia initiated an inter-university sandwich making and business generation competition called The Next Big Sandwich Hit (NBSH)
2015: Gardenia ventured into community neighborhood bakery thru Big Smile Bread Station and into artisanal specialty bakery business with of Bakers Maison
2016: Gardenia expanded operations and invested another sophisticated and world class 6K plant with a capacity of 6,000 loaves per hour
1.2 Company Background
Gardenia is a strong brand in Malaysia. Gardenia has produced a lot of kinds of breads such as the latest one-Butterscotch, Break thru, Delicia, Twiggies and many others. In order to satisfied different level of customer, every Gardenia product has its own special features. For example, Gardenia Break thru breads is not only bread, but consumers have the perception that it is a healthy food.
It contains 38% less carbohydrates, 7. 3x more dietary fibre, 15% less calories, 59% more proteins, low gylcaemic index (42), low gylcaemic load (6. 5), prebiotic properties, low fat, no transfat and no added sugar. The price of Gardenia breads is low and almost the same as others competitors. In fact, the pricing of Gardenia bread is controlled by the government. This is because of the ingredient of the bread, flour, which is one of the products that are under the control of the government in Malaysia.
Gardenia makes widespread distribution either in urban or rural area to make sure everyone can have their breads. As all of us know, Gardenia baked products are well known by everyone. Gardenia has over 20000 outlets throughout Peninsular Malaysia. Their wide varieties of products are available in almost all hypermarkets, supermarkets and even neighbourhoods stores. Here, Gardenia seeks for market share through intensive distribution, a strategy in which they stock their products in as many outlets as possible.
Their breads and cakes can be conveniently obtained by consumers wherever and whenever consumers want them. Gardenia implements mass promotions. For instance, it uses mass media such as television to promote its products and to introduce new products to the customers while ensuring customers to remember about their existing products. Gardenia has used advertising strategies to promote its products. Among the various alternatives media, television advertising and newspaper are mostly used by Gardenia.
In short, major advertisement of Gardenia’s bread have established Gardenia slogans as part of its popular culture, such as “It’s fresh! It’s good! So good…you can even eat it on its own! “. Brief History In 1969, an American named Horatio Sye Slocumm was sent by International Executive Service Corporation (IESC) to East Malaysia to start a bakery. Mr. Slocumm brought with him 35 years of baking experience with one of America’s leading chain of bakeries. Gardenia was born. Gardenia Bakeries (KL) Sdn Bhd rolled the first loaf of bread off its line in 1986.
Within a short period of four years, it became the bread market leader with an astounding 99 percent brand recall rate and 80 percent top-of-mind recall. Gardenia’s range of products grew and evolved through the years, becoming better and better with each step. Leveraging on its brand strength, Gardenia produces variety of baked products to satisfy consumer’s demands. Gardenia has four factories which locate at Shah Alam, Subang, Puchong and another one. The factory at Puchong is specified in producing new products.
2. S.W.O.T ANALYSIS
1. Perceived superior quality products (freshness and taste, awards)
2. Wide coverage and distribution, and top the line production (extensiveterritorial distributors; 6,000 loaves per day)
3. Ability to make rapid expansion
4. Supported by a conglomerate with proven market success (QAF Group)
5. Growing flank product lines
6. Multi-awarded company
1. Limited availability/penetration to lower-end market (sachet economy)
2. No stand-alone stores
1. Growing economy and rising middle class
2. Improvement on market coverage and distribution
1. Convergence of competitors
2. Bargaining power of retailers
3. Inflation and tariff
4. Global economic crisis
3. TARGET MARKET AND SEGMENTATION
3.1 TARGET MARKET
After Gardenia segmented the market according to the segments, Gardenia will need to find out its target market. There is no a strategy that can suits all consumer groups, so Gardenia must able to develop specific strategies for its target markets to achieve maximum profits in least costs. The targeting strategy used by Gardenia is differentiated marketing or mass marketing.
Using a differentiated marketing strategy, a firm might decide to target several market segments and designs separate offers for each. Gardenia targets its consumer market by offering variety of breads and offering. By offering product and marketing variations to customers, Gardenia hope for higher sales and a stronger position within each market segment. The disadvantage of using this strategy is Gardenia will faced difficulty in develops and produce new products because it requires extra research based on each segment it serves. Example of differentiated marketing strategy did by Gardenia are post advertisement about Gardenia whole wheat bread in newspaper to target senior citizens and do online advertisement for Gardenia waffle products that aim mainly teenagers.
Market segmentation is the process of dividing a market into meaningful, relatively similar and identifiable segments or groups. The purpose of market segmentation is to enable the marketer to tailor marketing mix to meet the needs of one or more specific segments. Gardenia had segmented their consumers into two main categories which are Psychographic and Demographic.
Known as a factor that divides customers into several sectors according to their basis of personality, motives or lifestyles, how they carry out their daily lives and their behavior. First of all, Gardenia focuses on the psychographic factor in separating the Gardenia markets which is lifestyle. Therefore, Gardenia focuses on customer who demands for freshness, convenience, variety and uncompromising taste. Customers nowadays demand for not just a simple loaf of bread, they also looking forward for afresh and convenience bread that they can consume at low health risk and can get it easily. To fulfil the demands, Gardenia had did its very best to provide daily baked bread to their customers and have more delivery channel such as supermarket, grocery shop or even hawker along the road.
Known as how marketer will divide the market into categories such as age, gender, income and ethnic background. Gardenia focuses on age factor. Gardenia segments their consumer into teenagers, adults and senior citizen. In doing that, Gardenia provides variety of products to fulfil all needs. Teenagers which are very energetic will require some source to fight their hunger and in the same time they are more likely to consume products with sweet taste. So Gardenia had come out with the new waffle products to meet their demands. Not forgetting adults and senior citizens that demand for a healthy diet, Gardenia launch whole wheat fiber bread and the latest Gardenia Break thru that contain a high level of vitamins and fiber.
4. POSITIONING AND DIFFERENTIATION