Executive Summary

Sydney Cake House is a SME company in Malaysia that manufacture bakery products and frozen foods. Its primary business is based on Business-to-Business (B2B) and had been awarded as one of the best SME in Malaysia by SME Corp. Sydney Cake House business faces a major challenge in regards of increasing their profits and gain market shares from the end users. An evaluation of the companys internal strengths and weaknesses and external opportunities and threats served as the foundation for this trategic analysis and marketing plan. The plan focuses on the companys growth strategy, suggesting ways in which it can gain market shares through end users and create brand awareness to their target market.

2.0 Introduction
Sydney Cake House was founded since 1982 as a company and started out as a small bakery in the heart of Petaling Jaya, Selangor, Malaysia. Its principal activity was in the baking of cakes and breads. In 1993, the bakery company moved to its own factory in Shah Alam, Selangor after the growth of the business and started producing more cakes and bread to cater the markets demand. One of the products other than bakery products is curry puff. Due to its popularity, the curry puff has become one of their main products until today. As the time continue moving, Sydney Cake House continue to grow. During the growth of the business, the company foresee the importance of frozen foods and started to develop frozen food and halal bakery product and sell it as a manufacturer. These products are marketed with new brand called Mak Cik which means Aunty in English. The brand name successful creates a rather homely feeling to the product.

Today, Sydney Cake House has developed a wide range of products, ranging from frozen, thaw and serve to ready to eat products covering authentic Malaysian foods to western foods. Other than that, Sydney Cake House has taken a step further to penetrate themselves into the international market such as Singapore, Australia, Hong Kong, Taiwan, China, The United Kingdom, America and also the Middle East countries. Sydney cake house also supply their products to convenient stores,

hypermarket, institutions, hotels, convention centres and even a caterers for any events.

Over the years, the plant has been upgraded with the state-of-art technology and equipment as the company moved along with the changing business environment. The foresight of Madam Jenny Cheung led to the company investing heavily in R&D, which emphasize on products, process, machinery, systems and quality, thus enabling the company to innovate in its processes, products and distribution.

Sydney Cake House also rewarded and certified by ISO22000:2005 - Food Safety Management system by SIRIM, HACCP MS 1480:1999 by SIRIM and HALAL certified by JAKIM. Beside that, through continuously development and innovation, the company has been awarded the Golden Bull Award by the Selangor State Government for the product creativities. In addition, they are also awarded the best Malaysian Brand by the SME Corporation Malaysian and SIRIM QAS International Sdn.Bhd.

From a humble small time cake and pastry manufacturer, the company has grown tremendously to be one of the nations leading food and beverage player both on the home front as well as globally. Sydney Cake House can proudly dedicate the growth of the company to the commitment and support of their staff force of 100 people, the stakeholders as well as the visionary leadership of its founder.

3.0 SITUATIONAL ANALYSIS

3.1 SWOT ANALYSIS

Strengths

1. Sydney Cake House product differentiation strategies in B2B (Business-tobusiness) is the result of a strong marketing orientation, commitment to high quality with certification from HACCP, SIRIM and HALAL and customization of products.

2. A long-term relationship with customers (mainly B2B) has resulted in shared knowledge of the products requirements, adherence to quality standards, and a common vision throughout the development and production process.

Weaknesses

1. Despite the successful, long-term relationship with the B2B customers, single or limited customers base could make Sydney Cake House vulnerable in the event of natural disaster, strike, or dissolution of the current customers. End users market should be considered for vast opportunities.

2. With an ever-tight talent market, most SMEs face difficulty in attracting and retaining talented workers due to low remuneration and non-competitive rewards and benefits. Workers benefits should be considered by Sydney Cake House in order to have enough talents to ensure the firms efficiency.

3. Access to finance remains one of the biggest problems for SMEs in Malaysia due to poor creditworthiness and lack of resources. It may affect Sydney Cake House for new business development and growth.

Opportunities

1. Frozen food continues to have great potential worldwide due to its availability, conveniences, reasonable pricing with food safety certification.

2. Sydney Cake House mainly deal with B2B customers create a vast opportunities within their food processing standard as different clients may have different food processing standard for food safety requirements.

3. Having recognition from established third party administrator and international trading experiences, Sydney Cake House are ready to expand their business to more country as the demand for frozen food continues to rise.

Threat

1. B2B customers may change their business strategy and demand different kind of products and may discontinue their purchases with Sydney Cake House due to various reasons such as new foods.

2. Frozen food industry are very competitive due to high demands and B2B customers may opt for another competitors. Sydney Cake House will lose its market shares.

3. Competition from others competitors with better marketing strategy and brand exposure is stronger than Sydney Cake House.

3.2 PEST ANALYSIS Political factors: Announcement of 6% GST during the national budget which will be executed on April 2015 may cause Sydney Cake House to face the increase of price for their raw materials.

Economic factors: Nationwide, many companies have reduced their overall promotion budgets as they face the need to cut expenses. However, most of these reductions have occurred in the budgets for mass media advertising such as television, magazines, and newspapers. While overall promotion budgets are shrinking, many companies are diverting a large percentage of their budgets to sales promotion and specialty advertising. Sociocultural factors: In todays society, consumers have less time for work or leisure. The hallmarks of todays successful products are convenience and ease of use. In short, if product does not save time and is not easy to use, consumers will ignore it. Frozen foods from Sydney Cake House fit this consumer need quite well and it provides good food quality as well. Technological factors: A major emerging technological trend involves in manufacturing plant increases the efficiency of the process and has better food

controlling process. As this trend continues, Sydney Cake House production plant may have to be updated to have competitive advantages.

4.0 MARKETING OBJECTIVES

Financial

Sydney Cake House should establish an objective to achieve cumulative growth in net profit at least 50% over the next 5 years. At least 30% of this 50% growth should come from new customer in B2B line and new end-user customers and from new innovative products that are non-seasonal or that are generally delivered in the offpeak period of the calendar cycle. Another objective should be to analyse the billing cycle Sydney Cake House now uses to determine if there are ways to bill accounts receivable in a more evenly distributed manner throughout the year. Alternatively, repeat customers might be willing to place orders at off-peak cycles in return for discounts or added customer services.

Marketing

Sydney Cake House should start focusing in targeting the end user market since the end user market is low in exposure on the branding side. Additionally, Sydney Cake House should use the knowledge of it successes with current clients to market to new customers (B2B) as well. Marketing strategies such as promotion, branding enhancement and advertising should be executed to the end user market to secure its market share. All these should be done within the timeframe of 2 years.

Societal

To determine the needs, wants and interest of end user target market and to deliver satisfactions more effectively and efficiently than competitors in a way that preserves or enhances the consumers and the societys well-being, Sydney Cake House can consider of using recycle materials on their packaging and donating 2% of their total

profits for community services. This should be done within as soon as the launch of the marketing strategies that targeting the end users market.

5.0 Suggested Marketing Strategies

Products: Sydney Cake House markets not only frozen foods but also end users bakery products. However, its marketing strategies for end-users market are not as successful as its B2B market due to low exposure on branding. Throughout the survey that had been made on previous report, the results showed that, majority of the respondents were not familiar with Mak Cik brand. This proved that, the branding and marketing strategies are poor and should be reinforced. As consumers are going a more healthy and organic foods, healthy and organic foods are now trending foods. To capture the market, Sydney Cake House should produce more of their products with organic ingredients or enable the consumers to have healthier option such as less sugar products. Price: Sydney Cake House provides high quality bakery products and specialty bakery products customized to its B2B clients needs. However, as mentioned earlier, to attract more consumers with organic ingredients, it can be expensive than the normal ingredients. In regards of this matter, Sydney Cake House can seek for a business partner who major in organic food process and had their brand established in the market such as BMS Organics. Sydney Cake House may consider joint venture with BMS Organics and launch a new product line focusing on organics and healthy food while maintaining its pricing at a affordable price due to the special rates given for the ingredients by the joint venture business partner.

Place: Sydney Cake House can distribute and sell its products through online for easy access for the consumers. Additionally, it should be able to be found on most of the hypermarket, kiosk, convenient stores, outlets and bakery shop. Food testing can be done through road show for branding exposure.

Promotion: For joint-venture products such as the organic bakery product line, consumers will be able to get free gifts with minimum purchase at the joint-venture partner outlets (BMS Organics). Free gifts include organic foods and beverages or vegetables. In the end, it is all about promoting healthy lifestyle with organic foods.

6.0 TARGET GROUP

Target market 1: Stand-alone caf and hospitality industry.

Example: Hospitality industry includes airline companies, hotels or even tourism industry. Frozen foods are heavily invested in such industry to ensure the customers to have a good quality food during short-break time.

Demographics and psychographic:

Target market 2: Young-adults.

Description: Young adults include the young working adults and students who mostly staying alone while studying or working. These groups of people often seek for frozen food to cook as it takes less time for preparation and have lesser income. It is also proven by Michael Harris and Rimma Shiptsova that younger consumers with disposable incomes are more likely to try new products and many od which are convenience products. They have non-traditional eating habits and eat out more often.

Target market 3: Modern family.

Description: According to Michael Harris and Rimma Shiptsova, study shows that modern families have fewer formal eating occasions since more household members live individualistic lifestyle. All household members, especially children, are increasingly cooking their own meals with frozen foods.

Target market 4: Working women.

Description: As more women working outside the home, it has led to a general loss in traditional cooking skills and less time for food preparation. Household size have declined and the increasing number of one or two person households has led to an increase in demand for ready foods which are easy to serve and portion-controlled.

7.0 COMMUNICATION PLAN

Objectives:

The Sydney Cake House will be using the objective and task method of setting up its advertising budget. This budgeting chart is carefully planned and is suggested for the company with the purpose of branding exposure for the end users market. Throughout the promotion, it is expected that the chart will allow the company to gain additional 30% of the current profit through the market shares from the end users. If the competition proves particularly active in promoting one category of their products, such as curry puff, the advertising budget can be adjusted so that additional funds can be spent to promote this product.

*DM = Digital Marketing * Larger and clearly chart is attached on the appendix.

* Cost price are obtained through media official site and linsad.com.my (included in appendix.)

Descriptions:

Radio, digital marketing includes Social Media and online websites will be used to advertise on the target market. The target market of the products have same similarity in terms of their lifestyle busy and normally are the young adults, radio and digital marketing will be used as these generations are more likely to approach online social media more than using traditional way such as newspaper or magazines. Radio will be specifically targeting the young working adults who would go to work in the morning while listening to the radio while driving to their workplace. Digital marketing will be used for almost the entire year due to its low cost yet higher efficiency.

The Radio frequency for advertising will be executed on 92.9Mhz (Hitz.fm) as it is the most popular listeners throughout the nationwide with 117,300 listeners weekly. Additionally, 988 FM will become part of the radio station to air the advertisement with translated mandarin language as it has the most audience from the Chinese community with 1.64 million audiences weekly while Suria FM will be used to targeting the Malay communities with 2.23 million listeners weekly. Radio advertisement will be on air three times a day, from morning 8-10am, 12-2pm and 57pm. These time will be the good selection time as it is the peak hour where everyone is going to work, or going back from work. Additionally, it is near to the meal time.

Digital marketing will also be used throughout the promotion, as it is so pervasive that consumers have access to information any time and any place they want it. Promotion through digital marketing will be advertised on MALAYSIAKINI as it has many readers with total of 34.1 millions page views and The Star Online, one of the largest news provider in Malaysia. Social media sites such as Facebook will be used to communicate with the target market and also act as a PR to ensure good brand image.

January: The reason for such viral marketing are due to the forthcoming of the Chinese New Year 2014 whereby many household will be getting more frozen foods 9

or snacks to celebrate it with their friends and family or giving it as a gifts to them. While this is a great opportunity for the company to gain market shares from the end users, the low awareness of its branding will cause the failure of achieving the goals. Thus, having such viral marketing is very important and the budget for this month should be placed as priority. Road show will be held on venue such as campuses and shopping mall mainly for food tasting and to approach the target market to create brand awareness.

February: Radio and Digital marketing will be continued after the end of Chinese New Year to ensure that the brand image remain in their mind after tasting the products bought during the CNY.

March: There will be no promotion activities for the entire month mainly due to the heavy investment for the past two months.

April: Advertising through radio will be executed once again mainly to remind the target market and gaining the brand awareness. However, the cost will be reduced to ensure the budgeting process in control.

May and June: Only digital marketing will be used on throughout these two months, mainly targeting the younger generation who play social media sites.

July: Road show, radio and digital marketing will be executed for the forthcoming Hari Raya 2014, it is expected that the brand will gain more market share as the majority of the race in Malaysia is Muslim and most of the Muslim will be celebrating their New Year.

August: Radio and digital marketing will still be continuing to promote brand awareness right after the new products release on July. Otherwise, it will serve as a mild reminder to the target market and the budget will be reduced should there be no new products launched on the July.

September: Only digital marketing will be used, mainly focusing on newspaper portal and social media sites. 10

October: All three majority of the marketing strategies will be used again to targeting the forthcoming Deepavali New Year. November: Advertise on Magazine Impiana Dapur will be used to test the effectiveness to advertise with a foods magazine. Effectiveness will be measured via the respond from the target market and the readers.

December: Digital marketing and radio will be used due to the forthcoming of the Christmas.

8.0 ACTION PLAN

Marketing Goal (Products, Price, Place and Promotion) Create social media - Develop a sites to create brand Facebook company awareness and approaching the target market (end users). - Create a video series of food cooking tutorial with the company products and post it on social media sites such as Youtube. page with consistent branding. Marketing executives and Marketing Manager. 1 JANUARY 2014 Strategies Position In Charge Timeframe

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Increase the number of traffic to the company

- Incorporate SEO (Search Engine Optimization) best

Marketing executives.

1 JANUARY 2014

official website and practices into social media site. official website / social media sites to increase visibility in the search engines.

Interaction with target market (end users).

- Create a free report or eBook to encourage visitors to sign up.

Marketing executives and marketing manager.

1 FEB 2014

- Create a monthly eNewsletter to send to list.

- Develop a free 1 Hour live tutorial for food cooking and having Q&A section with appointed famous chef. Joint venture with organics supplier. - Search for an established brand and joint venture with them to promote healthy lifestyle with the new line of Marketing Manager, COO, CFO and CEO. 1 MARCH 2014

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products.

- To eliminate the bad impression towards frozen food caused by unhealthy diet. Advertising (Promotion) - Develop a good script for studio recording and ready for on-air. Marketing executives and Marketing manager.

- Promote on established medias with large group of audience.

- Road show will be held for food tasting and customer interactions.

New products promoting healthy lifestyle. Targeting the target markets that have the most concern on their healthy diet. Maintain the current price at affordable level

- Joint venture with organics supplier and come out with a products that is fully organics.

Marketing manager.

- Joint venture with organic supplier with the purpose of

Marketing manager, COO.

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even with new products line.

brand establishment and reduce manufacturing cost.

Accessible through

- Have the new

Marketing manager.

more outlets, kiosk, products to be shopping more. listed on the joint venture business partner outlets.

- Prolong the shelf life of the products in the shopping mall.

- Develop new online system on their official website with online shopping enables for easy access.

9.0 CONTINGENCY PLAN

Risk

Risk Level

Recomm ended Controls

Action Priority

Selected Planned Controls

Responsi ble Team / Person (s)

Joint-

High

High

Have

Marketing

14

venture strategies may fail due to various reasons such as different business strategy from the business partner, conflicts of interest and etc.

Immediat ely have discussio n with solution plan to protect both party interests. Should there be no conclusio n throughou t the meeting nor the negotiatio n failed to be executed, immediate ly stop the collaborati on.

written agreemen t, which is valid in the eyes of law to protect the organizati on and its interests.

manager.

Marketing manager and the

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team should come out a new plan such as seeking for a new organic supplier or have another organic supplier on hand for standby in the event of this issue and could possibly provide immediate respond towards this issue. Mistakes during the road show may High - PR departme nt will have to High - Give training to the employee PR manager, Marketing manager.
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caused reverse impact on the company.

look for the solution.

s before the road show.

- CSR will be focused to retain the company image.

Should the recommended strategies are not working for the above issues, it is recommended that Sydney Cake House should create a new brand with new branding strategy to refresh the market. Regarding to failure of joint venture business, Sydney Cake House can stop the new product line and fully focus on their current products while still focusing on promoting healthy lifestyle such as giving out a recommended daily nutrition and other alternative way to improve healthy lifestyle.

10.0 CONCLUSION
In the end, having a good marketing plan is essential for the company growth. However, to analyse the effectiveness of Sydney Cake House marketing plan, it is necessary to compare its actual performance with plan objectives. To facilitate this analysis, monitoring procedures should be developed for the various activities required to bring the marketing plan to success. These procedures include, but are not limited to, the following: A project management concept will be used to evaluate the implementation of the marketing plan by establishing time requirement, human resources needs and financial or budgetary expenditures.

Each project team is responsible for determining what changes must be made in procedures, product focus, or operations as a result of the studies conducted in its area.

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(3563 Words)

REFERENCES:

1. Harris, J. and Shiptsova, R. 2007. Consumer demand for convenience foods: demographics and expenditures. Journal of Food Distribution Research, 38 (3), p. 22. 2. Small Business - Chron.com. 2013. How to Market a Frozen Food Line. [online] Available at: http://smallbusiness.chron.com/market-frozen-food-line39433.html [Accessed: 29 Nov 2013]. 3. Thestar.com.my. 2013. Star Radio Group draws four million - Nation | The Star Online. [online] Available at: http://www.thestar.com.my/News/Nation/2013/10/30/Star-Radio-Group-drawsfour-million-Stations-score-high-marks-in-Nielsen-Audience-Measurementrepor.aspx [Accessed: 29 Nov 2013]. 4. Tutor2u.net. 2013. Market Segmentation - Demographics. [online] Available at: http://www.tutor2u.net/business/marketing/segmentation_bases_demographic.as p [Accessed: 29 Nov 2013]. 5. Writeonmedia.com.my. 2013. HWM Malaysia. [online] Available at: http://www.writeonmedia.com.my/magazine/hwm/ [Accessed: 29 Nov 2013]. 6. BorneoPost Online. 2013. Malaysias brain drain taking a toll on SMEs. [online] Available at: http://www.theborneopost.com/2012/10/25/malaysiasbrain-drain-taking-a-toll-on-smes/ [Accessed: 29 Nov 2013] 7. Makcik.com. 2013. Sydney Cake House-Mak' Cik. [online] Available at: http://www.makcik.com/about-profile.htm [Accessed: 29 Nov 2013].

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