GRP8_PROJECT 2

UNIVERSITI UTARA MALAYSIA


GROUP PROJECT 2

MARKETING MIX INCIDENTS


PRESENTED FOR : PROF. MADYA DR. NORZIEIRIANI BT. AHMAD


PREPARED BY : GROUP 8

PIRADIB A/L PUGALNATHAN (286215)
NUR ALIYA ZULAIKHA BINTI ROSLI (288156)

AHMAD HAKIMI BIN MUSTAPHA (287978)
NURUL FATIHA BINTI SUPARMAN (278418)
NUR HUSNIYAH BINTI MOHD TAIB (278463)
WAN NOR FATIN BINTI WAN NOR RIZAL (288255)

SUBMISSION DATE : 31 JANUARY 2022

MARKETING MIX INCIDENTS

1.PRODUCT Table 1

According to Philip Kotler (2010), 2. PRICE
product defined as a product is anything
that can be offered to a market for According to Nakhleh (2012) price is
attention, acquisition, use or what been given up to get a product or
consumption. It includes physical service. It is what a customer has to pay
objects, services, personalities, place, to acquire a product, or cost of a product
organizations and ideas. Based on the to a customer. Price is considered to be
scenario, Raja Coffee sells various type the most significant factor that affects
of coffee, beverages, pastries, cakes and consumer’s choice. Based on the
local Malay desserts. Raja coffee offers scenario given, Raja Coffee offers their
a lot of variants and flavours in coffee. all of their products to customers with
Most famous offering of Raja Coffee are the range in price from RM0.90 to
Brewed Coffee among customers. Table RM9.00. Kueh Seri Muka is the
1 below illustrates the product lines and cheapest item, and a slice of English
the number of menu variations. Fruit Cake is the pricey item in the
menu. The owner’s tagline for this
coffeehouse is 'Everyone Can Enjoy the
Cozy Meal at the Lower Price’.

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3. PROMOTION 4. PLACE

Promotion is defined as sales promotion, Riaz & Tanveer (2012) wrote that place refers
advertising, personal selling, public relations to the availability of the product to the targeted
and direct marketing. It helps to make customers. According to Muala & Qurneh
potential customers aware of the many choices (2012), the strategy of place needs effective
available regarding products and services. distribution of the firm’s product among the
Muala & Qurneh (2012) extracting from channels of marketing like wholesalers or
studies mentioned that promotion is a vital retailers. “A distribution system is a key
part of business and is an integral ingredient of external resource. An organization should pay
the total marketing process. Promotion is a attention to place decisions, because of the
selling technique; to succeed in any marketing importance of the product and consumption
program, it should be involved with occurring at the same time and at the same
communication (promotion). There are some place; a place that provides all information of
promotion activities conducted by the owner customer, competition, promotion action, and
to promote the Raja Coffee to spread marketing task. In the given situation, schools,
information to customers about the store, its community institutions, and universities are all
products, prices and services. It helps to within walking distance of the Raja Coffee’s
persuades customers to buy the products Raja outlets. Other than that, Raja Coffee's nearest
Coffee sell. For instance, Raja Coffee share residential is a low-cost housing residential,
the latest promotions through the owner's FB which is 10 kilometres away. Apart from that,
account. Furthermore, Raja Coffee distributes Raja Coffee outsources its cake product line
flyers to the nearest residential areas to from a bakery in Gombak. The bakery in
promote their coffeehouse to the customers. Gombak is one of the suppliers of Raja Coffee.
Apart from that, during off-peak times, such as
the weekend, Raja Coffee provides a 15% 2
discount on all items to attract more
customers.

REASONS ON MARKETING MIX ERRORS

We can see that Raja Coffee’s Next, Raja Coffee use the irrelevant price tactics
management has tried some marketing in their marketing mix. Based on the scenario, the
mix strategies to increase their coffeehouse is surrounded by school, university,
revenues. However, the six-monthly and the nearest residential is a low-cost housing
revenue is -25%, even though the residential with a distance of 10KM. So, most
coffeehouse started to run delivery probably their regular customer is school and
service two months ago. Hence, we get university students, and low-income residents.
to know that there are some marketing The price they offered on the menu is not
mix errors in their initiatives. appropriate for their targeted customers.

First and foremost, we find out that the Furthermore, we also detect one more marketing
menu provided by Raja Coffee has mix error in their promotion. For instance, they
excessive breadth and depth of product promote their coffeehouse through owner’s
lines. When Raja Coffee produces private and personal Facebook account.
products that have a wide variety of Promoting the coffeehouse in personal Facebook
foods and a variety of menus to prepare, account is less effective because if we use
this will increase the cost of personal account to promote, it's a feature that
maintaining their products and their will no longer exist once we get to 5,000
quality. In addition, customers' tastes subscribers. Moreover, by promoting in private
and desires are inconsistent and not all Facebook account, the information will be shared
products in the Raja Coffee menu will and reached peoples limitedly and especially for
be bought by them. Therefore, this will the peoples, relatives, friends in the owner’s
cause the cost to maintain the product circumstances only. Apart from that, Raja Coffee
will be higher than the sales they get or distributing flyers in the nearest areas.
the profit they get.
Distributing flyers are the basic promotional
When Raja Coffee releases this high activity which gives less impact to them. The first
breadth and depth will result in wastage reason is the flyers are distributed to the nearest
of food and ingredients as not all residential areas where the peoples are already
customers will buy the food products familiar with their nearby facilities. Secondly,
available at Raja Coffee. Moreover, the producing and distributing flyers is labour-
products and ingredients produced by intensive. It can be expensive if our target market
Raja Coffee are foods that cannot be is large. Other than that, Raja Coffee gives a 15%
stored for long time. Moreover, we can discount on all products on weekends just because
see from the table 1, there are too many they want to increase sales during off -peak hours.
varieties and options to the customers. However, the discounts given on all products can
It is mentioned that the people are low- cause Raja Coffee to make only a small profit.
income residences. Low-income people
do not need such a long list of menus.

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The next error is on the last marketing mix OPINION ON
element which is place. Raja Coffee's PRODUCT MIX
location is not a strategic place to cover
more customer. Although the location of In my opinion, the product mix of the Raja
Raja Coffee is surrounded by schools, Coffee is irrelevant for their targeted
community colleges and university, but they customers (students and low-income
cannot just target the students and nearby residents). They are offering such a long list
residents only to earn more revenues. In of menus for the customers. Students and
addition, we found that the cake product line low-income residents most probably look
that led to 3% of cake shipments eventually for simple and low-price foods. They will
broke down due to the weather and the not go for expensive foods and snacks
distance between Raja Coffee and the regularly. Hence, Raja Coffee needs to
bakery in Gombak being too far away. The change their current product mix by
supplier is too far from the coffeehouse changing several things.
which defect the 3% of cakes in between the
transporting duration.

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NEW ARRANGEMENTS OF PRODUCT MIX

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We have created a new arrangement of product mix for Raja Coffee which is more relevant and
appropriate to them. The first changes we made is reduce the varieties of coffee. For instance, initially
there were 24 varieties for coffee. We reduced it to 10 items. Apart from that, fresh fruit juice is more
popular among youngsters instead of organic fruit juice. At the same time, the price for producing fresh
juice is cheaper compared to organic ingredients which make the menu more affordable. Furthermore,
we increased the varieties for cakes which is famous among Malaysian peoples such as red velvet cake,
Oreo cheese cake, Fruit cake and so on. In addition, we also adjusted some prices to make it affordable
to customers and profitable to the owner. Other that that, we added some special combo packs with low
price and worthful for customers. Low-income people can enjoy costly foods and drinks with low price
by purchasing the combo packages.

SOLUTIONS FOR THE
MARKETING MIX ERRORS

As we know earlier, the six-monthly revenue of Raja Coffee is -25%. At the same time, we have
detected the marketing mix errors that occurred in the coffee house. Therefore, we have made some
researches and studies to find out some effective ways to fix the marketing mix errors in order to
increase the revenue of the coffee shop.

First and foremost, Raja Coffee should reduce the depth and breath of the product Reducing
the breadth

mix that offered to customers. The initial menu that expressed to their customers

is consists of excessive depth and breath of products. The menu we attached above

is very suitable for the customers. In the recent menu, we have eliminated the

Malay desserts that are recorded the less volume of sales. and depth of

It will help to reduce the wastage leftover Malay desserts
products
and save the money. Apart from that, we also reduced the
coffee varieties because the customers are mostly school Using

students, University students, and low-income residents.
Those customers do not need a long list of options for various
Coffee. Moreover, coffee such as Vietnamese egg coffee,
Vietnamese coconut milk coffee is not popular and not promoting
recommended for the Raja Coffee’s targeted customers. We
also changed the apple and orange juice which was prepared strategies



Restructuring

by using organic ingredients to fresh apple and orange juice. the place and

This is because, organic items are not popular among youngsters. Furthermore, we distribution

have added some new flavours for slice cake. This is because, the cakes that we strategy
suggested are some of the most preferred and favourite flavours among

youngsters. In short, this solution definitely will help Raja Coffee to increase the

sales in order to earn more revenues and profits.

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Next, Raja Coffee should apply various promotion strategies to increase



awareness, create interest, generate sales. A good promotion strategy

will help them to cover a huge number of customers from all over the
country. Therefore, Raja Coffee should create business accounts in
social media platforms such as Facebook, WhatsApp, Instagram,
TikTok and so on to promote their business. It helps to increase
trustworthiness and brand recognition, increase levels of customer
service and satisfaction. The most important marketing strategy
followed by the company is to get word of mouth publicity from its
customers as the brand Raja coffee not just provides coffee but also the
experience. Other than that, there are some public figures, celebrities
with huge number of followers helps business people to promote their
product to their followers and fans for free or less price. This would
collect a huge customer base for the coffee shop because loyal fans also
wanted to copy them in real life. It can help our business stand out
immediately among others. In a nutshell, these promotional activities
will help to expanding the current customer base and boosting the
stream of Raja Coffee’s revenue.

Last but not least, the last solution we suggesting the Raja Coffee
is restructuring the place and distributing strategy of the


company. Once we have our product, price, promotion, and place
set, we are ready to start putting together marketing channels to
use in our marketing mix. We suggest we are suggesting Raja
Coffee to use food delivery platforms such as GrabFood,
Foodpanda, Shopee Food, EASI and so on instead of using the
own delivery service. This is because, customers especially
students choose to order food online because it’s literally at their
fingertips since it’s fast, easy and comfortable. It is considered as
an effective distribution strategy from restaurant to customer.

Other than that, the delivery from the suppliers namely the routes,
schedule should be restructured to maintain maximum efficiency.
For instance, for cake product lines, Raja Coffee should consider
a nearest supplier or reschedule a timing or plan a shortest route

for the supplier in order to avoid the defect on the cakes. This is because, we are able to save the money.
Furthermore, Raja Coffee can introduce kiosk machine into their coffeehouse. Kiosks are small, temporary
booths placed in areas with high foot traffic that are used by businesses to reach their customers in a more
simple and informal manner. Kiosks are primarily used for marketing purposes and can be staffed by
individuals or self-service. It will help the customers who wanted to take-away their orders can save their time
when the there is a huge crowd in the coffee shop. It also speed-up the process. To sum up, these strategies will
ensure that the products offered by Raja Coffee is distributed and made conveniently available for the consumer
at the right location at the right time. At the same time, it will automatically increase the number of customers;
increase the sale and profits.

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