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The History of Oldtown White Coffee

Essay by   •  April 17, 2018  •  Case Study  •  2,382 Words (10 Pages)  •  3,143 Views

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EXECUTIVE SUMMARY

The history of OldTown White Coffee (OTWC) began in 1999, the co-founders and Executive Director are Mr Goh Ching Mun and Mr Tan Say Yap. Nowadays, Oldtown White Coffee is the largest kopitiam restaurant chain and classic coffee shop in Malaysia. Its main headquaters is in Ipoh Perak, Malaysia.

With the love and passion to make and serve good coffee to household and food and beverage service industry line, they success created their own blend of Oldtown 3-in-1 instant white coffee. Oldtown White Coffee have also expanded and export their 3 in 1 White Coffee into 13 oversea counties which included Hong Kong, Singapore, China, India and Indonesia. In 2005, Oldtown expanded into the food service sector with the opening of a chain of café outlets based on the traditional Ipoh coffee shop setting and ambience under the brand name “Oldtown White Coffee”. In late 2009, the first oversea Oldtown White Coffee café was set up in Singapore.

Currently, Oldtown White Coffee outlets in the peninsula of Malaysia have achieved 100% Jakim Halal recognition and certification in their products to make futher into the halal market. In a particular Oldtown White Coffee café outlet, they not only sell the coffee but also provide Malaysia’s local traditional food such as Nasi Lemak, Hor Fun that would not found in western style coffee shop like Starbuck and Coffee Bean.

COMPANY BACKGROUND

The company was established in 1958 in Ipoh, Perak, Malaysia. Old Town white coffees history can be traced back to the incorporation of white cafe in 1999, with the intention to provide quality white coffee to Malaysian households and the food services industry, the co-founders and executive directors, Mr. Goh Ching Mun and Mr. Tan Say Yap formulated their own blend of 3-in-1 instant white coffee and commenced manufacturing in 1999.

In 1999, they have successfully commercialized their instant 3-in-1 coffee mix under the 'OLDTOWN' brand name for the retail sector. In 2000, they commenced their first export of the 'OLDTOWN' brand of 3-in-1 instant coffee mix to Singapore. In 2001, they expanded their product line to include different variations of their instant coffee mix and have also expanded their export markets to Hong Kong for their instant coffee mix.

In year 2002, they successfully expanded their nationwide retail distribution of our 3-in-1 instant coffee mix to cover East and West Malaysia through major hypermarkets and supermarkets. In 2003, they also successfully commercialized their own formulated blend of 3-in-1 instant milk tea for the retail market under the 'OLDTOWN' brand name.

In 2004, they further penetrated the export markets for our 3-in-1 instant coffee to cover the United States, Canada and United Kingdom and subsequently in 2005, Taiwan and Indonesia. In 2006, they incorporated Dynasty Kitchen as a distribution centre, which commenced operations in 2007.Besides, they also incorporated old town Berhad, which will focus on investment holding and provision of management services pursuant to its listing in the Main Market of bursa Securities. Subsequently they also started exporting to Thailand and the Philippines.

In 2007, they provide management services, supply of food and beverage items to cafe outlets in Singapore .OTK Singapore commenced operations in 2008 with the launch of their first 'OLDTOWN WHITE COFFEE' cafe outlet in Singapore. In 2008 they also expanded they product line to include 3-in-1 instant coffee mix with cane sugar. In 2009, Gongga food obtained a HACCP certification from BM TRADA Certification LTD for the production of roasted coffee powder.

MICROENVIRONMENT

Micro environment consist of the factors close to the business usually involving business relationships that affect its ability to serve its customers. The marketing management is to build relationships with customers by creating customer value and satisfaction. Marketing success requires building relationships with other company departments, suppliers, marketing intermediaries, competitors, various publics and customers.

  1. The Company

All departments within an organization have the potential to positively or negatively impact customer needs. A marketing manager of a company must work with all the other departments as all the departments have their impact on the marketing department. As a result, a marketing department works closely with the finance, purchasing, research and development and manufacturing departments to identify ways that each department can contribute to the provision of exceptional customer value, which to superior customer needs. For example, OldTown always thinks about what are the customer’s wants and needs before they take their action without changing the objective of the company. People that went to OldTown are normally given a cup of beverage when they order a set or promotion menu. They provide better services to consumers that their competitors to make themselves different.

  1. Suppliers

Suppliers can control the success of the business when they hold the power by give the resources to a company on a low price to let a company to produce a product or service and let the company to earn profit. A supplier can affect a company’s marketing plan because resources are very important to the company for produce products. A good supplier can help a company for run a business. A good relationship between supplier and a company is very important. For example, the coffee bean that OldTown receive from the supplier is controlled strictly and they make sure the quality of the coffee beans is the best for their product before purchase it. They also make sure that all the coffee bean is the same as different kind of coffee bean is used in different kinds of coffee.

  1. Marketing Intermediaries

`Marketing intermediaries are very important in business because it help your company to promote, sell and distribute your products and services to your customer. Typically rely on banks, venture capitalists and other sources to finance operations, wholesalers and retailers, warehouses and transportation companies to distribute goods and advertising, market research firms and public-relations firm to market their products. The marketing strategic help company to sell their product and helps bring out the label or the brand of the company into the market. For example, Old Town is a franchise company, the head quarter in Ipoh produce the instant beverage and send it to the other Old Town outlet. The outlet will then sell the product to the consumers.

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