1. Business pitching
2. Selecting the suitable cases
3. Discussion on business cases and narrowing problems
The meeting were chaired by the COO, Asaad Ashari Putra Bin Ujang.
Big D Miri is a homemade street burger business that based in Senadin, Miri founded in 2012. Big D Miri is known for its delicious homemade burger because of the unique recipe and ingredients making them differ from the other street burger in Miri. Apart from the burgers Big D Miri also offers western menu such as fries, beef ribs and meatballs. Big D Miri has its own tagline which is “Skali Rasa, Nang Belala” meaning that once the customers taste and eat the burgers, they will want again and again. Their operation hour is from 4p.m. to 10 p.m. and they are operating from Sunday until Friday
on 8th August 2020, Pasaraya Ikhwan Kulim started to open at Keda Mall@Kulim. Pasaraya Ikhwan Kulim by GISB Holding that sell Muslim product and it has 2397 goods in the store. GISB Holding is company to develop the Islamic way of life in all aspects of life such as education, business, animal farming etc. Not only selling variety Muslim product but Ikhwan brand has its own goods such as beverages, food & snacks, household, and health and beauty. Also, in Pasaraya Ikhwan Kulim has its own bakery store and it called Ikhwan Bakery. It sells variety types of bakery such as cakes, cookies, and bread.
Chokolishes Hq Alor Setar
Chokolishes Hq is one of the company that based in Alor Setar that selling snacks with chocolate base. Their company was establish since 2020 during the peak of COVID-19 pandemic. Their first product is Chocojar which is their specialty and most of their sales are from the Chocojar. It comes with three toppings which is Oreo, Kinder Bueno and KitKat. The Chocojar is a combination of baby crunch cereal and melted chocolate in a plastic jar. The other products from them are Chocotum and cookies. Chocotum is the snack with the combination of oats and chocolate that comes in a shape of bar. Cookies are comes with two different flavours which is red velvet and regular. Their tagline is “Every bite makes you high”
Big D Miri
Big D's Menu
Front part of Big D
FoodPanda Apps
1. Lack of Promotional Activities
Based on our observation, one of the main problems faced by Big D Miri is lack of promotional activities. Mainly, Big D Miri uses the social media such as Facebook and Instagram as well as word-of-mouth. However, in their official Facebook or Instagram, most of the posts are outdated and they rarely upload fresh contents in term of promotion. The last time they update their page is December 2020. Kotler and Armstrong (2004) believed promotional strategies include all means through which a company communicates the benefits and values of its products and persuade targeted customers to buy. Belch & Belch (2009, p.18) define promotion as “the coordination of all sellers-initiated efforts to set up channels of information and persuasion in order to sell goods and services or promote an idea.” So, promotional activities very important so that Big D Miri can deliver the benefits and values on its product to attract more customers. Not only Big D Miri rarely promote their products, their poster also is not that attractive. Thus, it cannot deliver a good first impression to the new customers.
2. Weak Strategic Plan
Next, based on our observation, Big D Miri also has a problem with the strategic planning of the business. This has been proven as the Big D Miri have not shows that much improvement even though they have already been operated since 2012. Even though Big D Miri had a plan to open another branch they are yet to do so until now. Perry (2001) and Wijewardena, Zoysa, Fonseka and Perera (2004) all formulate definitions of strategic planning which take the uniqueness of small businesses into account and allow for the fact that small businesses cannot draw on management and material resources in a manner like that of large organizations. According to Hewlett (1999) in O’regan and Ghobadian (2002), strategic planning implies an attempt to alter a company’s strength relative to that of its competitors, in the most efficient and effective way. In this case, Big D Miri are still not fully altering their strength especially in term of their products as their products is one of the best in Miri. When we are comparing Big D Miri to its competitors, their competitors in the same burger business are already have more than one branch in Miri such as the Grasso Burger and Don’s Burger. This shows that their strategic plan is still unclear and weak
Pasar Raya Ikhwan Kulim
Front shop of Ikhwan Bakery
Inside of Pasaraya Ikhwan Kulim
Lack of Variety Products and Empty Shelves
1.Product Planning – Lack of Product Differentiation and Lack of Product Variety
Based on our observation to this Pasaraya Ikhwan Kulim, we found that there were not many variety types of products and mostly the shelves are empty. Even though the products are almost clear up, but the workers did not top up the goods. The goods at shelves are disorganized and untidy. Additionally, the Pasaraya Ikhwan Kulim is quite small as compared to others supermarket that are big and has enough space to put variety types of products at their shelves. Besides, the price of goods in Pasaraya Ikhwan Kulim is more expensive than any other stores. Implementing marketing strategies are very important to improve customer satisfaction and experience. Customer satisfaction can help a company to determine any improvement or changes to its products and services.
Differentiation is one of the strategies that firms employ in an attempt to gain a competitive advantage by increasing the perceived value of their products and services relative to the perceived value of other firm's products and services. To implement these strategies successfully, organizations need to have an accurate view about the current competitive situation to persuade costumers about the features of the sustainable products (Pondeville, Swaen & de Rongé, 2013). The findings from Atikiya et al.’s (2015) study revealed that offering of broad products, building strong brand reputation. The researcher recommends that firms adopting differentiation strategy also need to further look deeper into how to make uniqueness less costly in order to make differentiation a significant practice in the sector. The study by Atikiya et al. was fundamentally based on cost leadership, focus strategies and differentiation strategy.
2. Lack of Promotion Activities
Based on our observation to this Pasaraya Ikhwan Kulim, we noticed that there were not many customers in the shop, and it was mostly empty. Other than that, there was no sign of promotion activities. Even the price is high, but still the shop needs to do the promotion activities to attract more customers. Pasaraya Ikhwan Kulim has to compete with Giant which only 4 km away from each other and the Giant’s price are not too expensive as compared with Pasaraya Ikhwan Kulim.
Promotional activities are very important as it aims to stimulate demand for a company’s goods or services. Promotional strategy is designed to inform, persuade, or remind target audiences about those products. The goals of promotion are to create awareness, get people to try products, provide information, keep loyal customers, increase use of a product, identify potential customers, and even teach clients about potential services.
Chokolishes Hq
Chokolishes HQ's Instagram
Chokolishes HQ's Product
Chokolishes HQ's Facebook
1. Poor Business Management
According to Ochurub, Bussin & Goosen in 2012, managing performance is essential for any organization since its primary goal in order to create a framework that offers encouragement, support and guidance and helps to establish a performance orientated culture. Performance management (PM) as a “continuous process of identifying, measuring and developing performance in organisations by linking each individual’s performance and objectives to the organisation’s overall mission and goals” (Aguinis, 2005). He points out that managers ensure that employees’ activities and outputs are congruent with their organizations’ goals as this would therefore create a direct link between employee performance and also organizational goals and make the employees’ contribution to the organization explicit. During our observation to the Chokolishes Hq, we found that there are too many agents or product distributor at one place at a time. The management for this company did not manage to limit the number for the product distributor at one place. The effect of having too many of them is the supply will be higher over the demand. When this issue arises among the product distributor, it will affect them when they experiencing surplus of the products. Hence, the policy and agreement are compulsory between the owner of the business and the product distributor. This is due to avoid the bias between one party and want to ensure that both parties’ owner and distributor have a fair deal between them.
2. Lack of Marketing Channel
According to Kotler (2007), he discovers that promotions have become a critical factor in the product marketing mix which consists of the specific blend of advertising, personal selling, sales promotion, public relations and direct marketing tools that the company uses to pursue its advertising and marketing objective. The previous researches have established significant relationship between promotion and business performance (Amine and Cavusgil, 2001). Chokolishes Hq is a company that totally focus in online platform only without having their physical store. It is very good for them to start an online business instead of physical since this era is all about e-commerce. On the other hand, if they only rely on their online store, it takes a risk for them as they do not know how long they will sustain. It will be great for them if they expand their business through the physical store that will give good value for them and strategic. Having a physical store as their one of the distributors will provide them a backup plan for their business.
Our 3rd meeting
Date: 6 April 2021
Platform: Webex