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
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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.
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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.
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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.
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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.
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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.
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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
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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
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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
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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”.
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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
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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,
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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.
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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
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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.
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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.
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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
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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
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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.
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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.
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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.
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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.
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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