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Eng Project 2 Report
- 2. SCHOOL OF ARCHITECTURE, BUILDING AND DESIGN THE DESIGN SCHOOL FOUNDATION IN NATURAL BUILD ENVIRONMENT Assignment: Comparative Analysis of 2 Businesses of Similar Industry in Different Geographical Locations Group members: Name Student ID Khoo Zer Kai 0320500 Zoe Low Li Mien 0319444 Joel Ling Chyi Jer 0320511 Alan Chung JiaZen 0321487 Miaw Yan Chie 0319930 Muhammad Sheikh Irfaan Yadun 0319353 Kodaruth Humairaa 0319356 English II (ELG 30605) Lecturer: Cassandra Wijesuria Submission Date: 15th June 2015 1
- 3. INDEX No. Content Page(s) 1. Key Summary 3 2. Methodology 4 3. History of Bakery 5 6 4. Brief Description of the Businesses 7 15 5. Comparative Analysis of The Businesses’ Competitive Traits 5.1 Table of Similarities 5.2 Table of Differences 16 23 6. Conclusion of Analysis 24 7. Recommendation 25 27 8. Bibliography 28 9. Appendices 29 35 10. Attachments 36 41 11. Reference 42 2
- 4. 1. Key Summary Bakeries are a common business that is known everywhere in within the food industry of Malaysia. Within this report, we have chose 2 bakeries such as FreeMori from Shah Alam and Bread Aroma Bakery from Kuala Lumpur. Both of them have different ways of handling their businesses and the competitors they will face. FreeMori is a well known bakery franchise for its creative and large franchise. Whereas Bread Aroma Bakery is a simple yet traditional bakery consisting of fewer workers. Therefore in our opinion, FreeMori is the best bakery as it constantly prolong to innovate its ideas to satisfy customers. 3
- 5. 2. Methodology Setting Interview Questions To start off with the project, we determined the locations of the bakeries first. After finding them out from the food websites, one of us set the interview questions for both of the bakeries. We split ourselves into 3 members to meet up with the founders of the two bakeries each. As mentioned before, in a group of 7 to 8, we are to: i) Choose 2 businesses in the same industry for research purposes. ii) Conduct preliminary researches via books, internet, newspaper etc. and to also gather information on our chosen businesses before the interview. iii) Prepare interview questions carefully and to consult our lecturers to make sure our progress are going smoothly. iv) Contact and obtain permission from the restaurants to conduct a face to face interview and onsite observations. Then, make an appointment for the meeting. v) Submit a 2500 to 3000 words research report based on the chosen sites. vi) Show all findings within 25 minutes during our verbal presentation. vii) The sources of information (interview, books or internet) should be attached in the report. 4
- 6. 3. History of Bakeries in Malaysia On today’s market there is a never ending variety of the most delicious sweets and pastries. These baked goods keep constantly satisfying both the palates as well as people’s eyes. Based on this fact, we have become so used to this diverse range of bread, mouth watering pastries and cakes that we seldom ask how did they just come into our existence. The interesting history of baking and pastrycooking! – Or how did it all start? One thing's for sure is that people could never have survived without food, which called the “staff of life” in the present. Not only that, that includes the bread, and the making of it started in the recent times. During the initiation of the recorded history there has been a discovery of fire making, which heat could be generated. Then there follows a discovery of different grasses and their seeds which could be prepared for nourishment. With the help of heat and grain, one was now able to prepare a kind of broth. The first unsoured flat bread was produced by covering hot stones with the use of broth or the broth was roasted on embers. This method to prepare stable food changed the eating habits and lifestyle of our early ancestors. They transformed from being hunters to become settlers. According to the records, it shows that in 26002100 B.C., bread was baked by Egyptians, who it is believed had learned the skill from the Babylonians. A relief representing the royal bakery of Ramses features bread and cakes, some of these were shaped in the form of animals. While applying this, these baked goods were used for sacrifices. At another some point in time, the Greek scholar Aristophanes (450385 B.C) showed the existence of honey flans and patterned tortes. According to Aristophanes, the ancient Greeks also had a type of doughnut made from crude flour and honey called “Dispyrus” a ringcake that was submerged in wine and consumed hot. 5
- 7. Could this have been an early version of Baba or Savarin, still so popular today? The Roman Empire Inevitably the Greek culture influenced the Roman Empire ; bakery knowhow was transformed and really flourished. During the 4th century A.D., evidence also emerges of the first pastrycook’s association or “pastillarium” in those times nomenclature. Since it is well known in the present, the Romans were a festivity and loving type. Although an order was passed by the Senate designed to check excesses by the citizens, the sweet art of pastrycooking (considered decadent by some) emerged as a highly respected profession. Indeed the bakery business was so profitable that in the time of Christ around 300 independent bakers existed in Rome. How rewardful and diverse the trade before, is recorded by Cato (234148 B.C.) Could it be that the French word Gâteaux used for tortes doesn’t originate from this man’s name? Anyway, Cata has named a variety types of bread such as the sacrificial cakes “libum”, cakes made with flour, groats and cress “placenta”, pretzels” spira”, tortes “scibilata”, fritters “globus apherica”, Bowlcake “erneum”, sweet cake “savillum” and sidrercake “mustaceum”. It’s quite a large selection, made by early Roman “Dulciarius” or “Flour Confectioners, right? The engravings within a tombstone of a Roman baker, dating back to the first century A.D., show the different stages in the production of bread at that time. 6
- 8. 4. Brief Description of the Bakeries Business 1 : Freemori Bakery Current location: 3A, Jalan Ragum 15/17, 40200 Shah Alam, Selangor Operating Hour: 6 am 11 pm / 7 am 10.30 pm (it was just reopened) Number of branches: 9 Number of employees: Nearly 3000 (including Factory) Main services: Service line (The way on how the employee treat customers) Peak Hour: Lunch time and work time from 4 p.m. to 6 p.m. Recent development: Launch new products and play music themes for every season (Summer, Fall, Spring and Winter) 7
- 9. Freemori was founded by Mr. K.K. Tan in 2002. It has it’s own concept where they will treat customers as premium customers. They will serve the customer instead of letting customer serve themselves. Their products were made with fresh ingredients as well as no preservations. This will make their products last for one day for breads and two days for cakes only. The definition of Freemori is to infuse creativity, imagination and vitality within the food culture. They were aimed for sharing with their customers through meaningful interactions in a fun way. Their mission was to become the leader of boutique bakery chain by internal expansion and external franchising program. Freemori also came out with seasonal products which they will come out with new products on every festival or parent’s day. In Freemori bakery: it feels like a restaurant instead of bakery. 8
- 10. Products Sold in Freemori: Soft Bread ● Custard Bun ● Hammy Chicken Floss ● Seaweed Chicken Floss ● Bun Family ● Deluxe Bun ● Black Beauty ● Crispy Vienna ● Russian Bread ● Parmesan Bread ● Magic White (Sesame) ● Cheese Bun ● Marble (Milk) ● Caterpillar ● Polo Bun ● Butter Bun European Bread ● Flaxseed Cranberry ● Grain & Fruit ● Cheese Lover ● Formosa Longan ● Formosa Lychee ● California Bread ● Chocolate Poppy Seed 9
- 11. Danish ● Canary ● Bombyx ● Crown ● Mambo ● Apple Danish ● Hammershus ● Raisin Milk Danish ● Mille Danish ● Almond Raisin Danish ● Danish Pastry Loaf ● Panda Loaf (8 slices) ● Cheesy Loaf ● Chicken Floss Loaf ● Sesame Loaf ● Wheat Loaf ● Milk Loaf (4 slices) Sliced Cake ● Hokkaido Cake ● Classic Cheese Cake ● Mango Mousse ● Sesame Swiss Roll ● Music Box ● Sweetie 10
- 12. Pastry ● Cheesy Chess ● Triplets ● Coffee Cream Puff ● Cannelés Bordelais ● Juliet (Orange) Cookies ● Matcha Red Bean Cookies ● Curry Spice Cookies ● Cranberry Cookies ● Thumbelina (Sesame) ● Almond Shortbread ● Pumpkin & Sweet Potato Cookies ● Chocolate Almond Cookies ● Matcha Cookies 11
- 13. Business 2: Bread Aroma Bakery Location: F03 Plaza Damas, Jalan Sri Hartamas, Damansara, Petaling Jaya, Selangor 50480 Operating Hours: 7am 7pm daily except for Sunday and public holidays. Number of branches: None Main services: Authentic bread Peak Hours: Morning and midday. Number of Employees: 4 (including the founder) Recent development: None 12
- 14. Bread Aroma Bakery was founded by Mr. William Ng, whom we managed to interview and has been established since early 2003. It is a well organized company with a number of 4 talented bakers including himself. The bakery is well equipped with two huge ovens along with a hygienic place where the food is prepared. The shop is a traditional bakery where everything was made fresh without any artificial industrial preservative products. The investment cost for this creation of the bakery is around RM 200,000. It has no link to any other branches. It is a simple establishment that produces as well as selling flour based food baked in an oven. Food such as bread with different kinds of flour, cakes, pastries and pies. They also provide services for special occasions such as birthdays, parties and even business events. All their food are prepared freshly with bio or natural ingredients along with some secret recipes. The bakery is specialized in traditional and handmade types of bread baked with locally milled flour. The types of bread, which they produced are referred as artisan bread. They also have other specialties, which are the French based products like the ‘pain au chocolat’. Bread Aroma Bakery is a very friendly based bakery. It has developed its good relationships with its clients. It opens almost everyday as William has developed a deep sense of availability and reliability for its clients. In addition to that, with its fresh and unique quality of its products, it has contributed to the popularity of the baking production it the busiest bakery in town. The motto of the bakery is “the clients are kings”. 13
- 15. Products sold by Bread Aroma Bakery: Bread The Bakery has a wide variety of types, shapes, sizes, and textures of breads. ● Pita ● White bread ● Brown bread ● Flat bread ● Whole grain bread ● Focaccia ● Ciabatta ● Rustic ● Wholemeal Loaf ● White Roll ● Baguette ● Wholemeal bun ● Ciabatta with Pesto Sauce ● Seven Grain ● Wholemeal sunflower seed ● Seedy Square ● Rye Bread ● Whole Wheat Potato Bread ● Red Bean ● Kaya Bun 14
- 16. Pastries ● ’Pain au chocolat’ ● Pain au raisins ● Plain Croissant ● Croissant with ham ● Croissant with cheese ● Curry puff(other puff pastry) ● Danish pastry ● Éclair ● Macarons ● Banana tart ● Cheese Danish ● Custard Raisin Braided ● Custard and Cheese ● Croissant Pizza ● Wrap Pizza 15
- 17. 5. Comparative Analysis of The Businesses’ Competitive Traits i) Number of competitors: For Freemori Bakery that is located at Shah Alam, it has a total number of two competitors. One which is within a 10km range, namely King’s Confectionery (1.2km) and another is Fidi Bakery (7.2km), as referred in figure 1. As for Bread Aroma Bakery’s competitors, they are located within 500m such as Tray Cafe and Pastry Ville; figure 2. Figure 1 16
- 18. Figure 2 i) Brief Descriptions of The Top Competitors: King's Confectionery is currently located at 3, Jalan Aerobik 13/43, 40100 Shah Alam, Malaysia. It has about 80 retail stores now since early 1973. Their business hour is from 8am to 10:30pm from Sundays to Thursdays and 8am to 12pm on Fridays and Saturdays. King’s Confectionery Portuguese egg tarts are what made them famous. Almost everyone back then knows about the legendary egg tarts. Besides that, they also serve buns, swiss rolls, muffins, cookies, loaves and pastries like most bakeries. Fidi Bakery Sdn. Bhd. is at No. 9, Jalan Liku D8/A, Seksyen 8, Shah Alam and was founded in 1948. It is open daily from 9 in the morning until 10:30pm and are closed on Sundays. They serve cakes, breads, buns and cookies. Tray Cafe is located in Plaza Damas, unit H02 in Jalan Sri Hartamas. It is open at 10am to 5pm daily except for Tuesdays. Tray Cafe is rather well known for its tea, Merdeka Teas, loose tea leaves. As for Pastryville at P3C, Plaza Ground Floor, Hartamas Shopping, 60, Jalan Sri Hartamas, 17
- 19. 50480 Kuala Lumpur. PastryVille is a fully owned subsidiary of the High5 group of companies since it was acquired in 2014. Famous for their French bakery techniques and is open from Monday to Sunday at 7:30am to 10pm. ii) Strategies to compete with competitors: Pricing: 1. Freemori Bakery, The pricing strategies that Freemori used is that they use premium ingredients such as the triple A (AAA) imported eggs, flour, wheat and oil for their pastries. Most of the other ingredients like raisins are also imported and their price are slightly higher than the rest and even after GST they are not affected in anyway. 18
- 20. 2. Bread Aroma Bakery, Bread Aroma Bakery is an authentic bakery and their prices are common. However after the GST is excluded, they have to increase the price a little due to the ingredients they use. Food: 1. Freemori Bakery, The best thing about this bakery is that it is a restaurant style bakery where they allow customers to enjoy the pastries there and waiters would bring the freshly made pastries to you like a fine dining restaurant. TripAdvisor 19
- 21. has good reviews about Freemori too. Customers love how fresh most of the pastries are, like Sammie W. from Miami. 2. Bread Aroma Bakery, They serves traditional bread recipes that most of us Malaysians prefer and has about 30 varieties of bread, pastries and serves wrap pizzas! Another bread of theirs that is strongly recommended is their homemade macarons, it taste as classic as other other posh bakeries and the price is also cheaper and reasonable. Location, 1. Freemori Bakery, Most of Freemori’s competitors are located about 10km far from them and this reduces the chances of being compared. Customers would have to travel a far distance to reach the next bakery. 2. Bread Aroma Bread Aroma is located in Plaza Damas, ground floor and is rather easy to be seen when customers set foot in the plaza. This bakery is located is quite a happening place and that is why most of their customers that come to their restaurants are those who work nearby. 20
- 22. V. Obstacles Faced by New Businesses: Capital, The obstacles that faced by new business is capital. Restaurant owners need enough capital to run their business. Owners should plan to have at least enough money to run for one year. They need enough financial resources to cope with unexpected costs and increases. Competition, Besides capital, new businesses will face a lot of competition in the firm. New businesses need to strive in order to survive in the firm. They need to compete for customers with the other businesses. In the meantime, they need to think of ways to maximize the profit. VI. Nature of The Market: Both the bakeries are monopolistic competitive firms because there are quite a number of bakeries in the market which means that new firms can enter and leave the market easily. Moreover, the business has weak pricing power since there are many bakeries in the competitive market, the firms cannot change a high price. Furthermore, the firms have to sell differentiated products to increase pricing power and protect their profits from competitors. 21
- 23. VII. Comparative Analysis Summary Table: Competitive Traits Freemori Bakery Bread Aroma 1. Number of Competitors Few due to the remote location Quite a number 2. Barrier of Entry Weak, lack of manpower and advertising Strong, location is close to a crowded area 3. Differentiated/ Standardized Products Differentiated Products Standardized Products 4. Pricing Power Price Maker, breads are not commonly found in other bakeries Price Taker, can be made at home and found in other bakeries 6. Verdict Monopolistic Competition Monopolistic Competition 5.1 Table of Similarities Freemori Bakery Aroma Bakery Type of Food Pastries, Loaves etc. Nature of Business Monopolistic Competitive Market Hygiene Level Clean and Neat 22
- 24. 5.2 Table of Differences Freemori Bakery Aroma Bakery Established 5 years 12 years Building Type Common Bakery Atmosphere Restaurant + Bakery Style Operating Style Traditional Modern Number of Employees 3000+ 4 Speciality of Bread Commonly found Rare and Special Price After GST Not Affected Affected 23
- 25. 6. Conclusion of Analysis In conclusion, what Bread Aroma Bakery need to improve is that it should have more manpower. If it has more employees, they will have more innovations from their members to increase their franchise. New ideas like making beverages, renovating their shops to create attractive appearances or create a dining space within the shop. As for Freemori, its shops need to be relocated in a more strategic place to help customers. It will make their shops accessible for the customers to find. Not only that, increasing their number of employees will enable them to work together to design and create more new products in the future. In terms of its prices, the costs of their pastry should decrease to a more reasonable price. Therefore these improvements will provide the customers the will to buy their products. Therefore in both bakeries, we certainly believe that Freemori Bakery is better. The reason for this is Freemori Bakery has been constantly exploring and inventing new designs for their pastries. That was their main purpose of a bakery shop to serve customers. Freemori’s Bakery shop design also fulfill the purpose for their customers to have a relaxed environment while having their lunch or dinner. 24
- 26. 7. Recommendation 1.Freemori Bakery Difficult to locate The location for Freemori was not accurate. This is due to the fact that the environment surrounding Freemori is mostly consisted of factories. People would not go there often to buy bread unless they knew that there is a bakery there. Freemori should have another branch in a more crowded and strategic place to improve its sells. Bread Recipe Still New to Customers Not many people know about their breads based on their new ideas for their recipe. The recipes are from Taiwan, which the locals here in Malaysia would not know them. According to Mr Alex Ng, he mentioned that not many people are aware about this type of bread that Freemori serves. Freemori can continue with their bread recipes but they will need to have few recipes that we Malaysians are familiar with. 25
- 27. Close on Public Holidays Freemori is closed on every public holiday except for the rest of the weekends and weekdays. We believe that they should be opened on public holidays and close on weekends instead. It allows the workers to rest as well as getting more customers during the public holidays. Especially we students, would be free during those days as most schools will have those breaks. Not only these youngsters, offices would also be closed, which people would have time to visit Freemori more often. 2. Bread Aroma Bakery, Plaza Damas Lack of Manpower During our interview with Mr William, we found out that Aroma has only 4 employees including Mr William himself. Bread Aroma has been opened for about 12 years now, which it should be able to have more employees. Moreover, hiring employees would not be much a burden for Mr William as Bread Aroma’s franchise would increase and develop faster. The reason for it is allows its system to be more organized, where all of their staffs will have their own specialized jobs. Location and No Branches Bread Aroma Bakery is located at the ground floor of Plaza Damas and despite how noticeable it is, not many customers are interested due how other modern bakeries are located nearby. A franchise in a more strategic location that has lesser competitor would be a good way to improve. 26
- 28. Promoting More on Social Networks Mr William the owner of the business, has a Facebook page of his Bakery. The Facebook page is completely inactive, which has no updates. What it contains are the customers who made posts, by giving reviews, which its last were from on October 2014. This would lead to a decrease in the number of customers along with other bread lovers. It will not help them to know this authentic bakery. Since everyone has a smartphone nowadays, their news will spread faster with social sites. Therefore Bread Aroma Bakery should start catching up with the latest trend. 27
- 30. 9. Appendixes 29
- 35. Roles of Group Members Members Roles Khoo Zer Kai Team Coordinator Interview Questions Interview Video Editor Joel Ling Chyi Jer Videographer Audiographer Zoe Low Li Mien Interviewer Information Alan Chung Jia Zen Interviewer Information Miaw Yan Chie Information Muhammad Sheikh Irfaan Yadun Videographer Audiographer Kodaruth Humairaa Information Members Roles Khoo Zer Kai Recommendations Comparative Analysis: Strategies, Obstacles, Nature of Market & Summary Table Joel Ling Chyi Jer Description of The Business Zoe Low Li Mien Overall Grammatical Structure Key Summary Comparative Analysis: Competitor Alan Chung Jia Zen Comparative Analysis: Table of Differences Conclusion of Analysis Miaw Yan Chie Comparative Analysis: Table of Similarities 34
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