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BBM104

Principles of Marketing

Tutor-marked
Assignment 2
(TMA2 – 15%)

Submission Date:
22 Mar 2009
Tutor-marked Assignment 2

Instructions

1. TMA 2 covers Unit 1, 2 and 3

2. TMA 2 contains 5 application questions

3. TMA 2 carries 15% of your final total marks

4. The assignment should be typed using Times New Roman, font size 12
and double spaced.

5. The deadline for the submission of TMA is during Tutorial 3. A softcopy


should be submitted via Online Assignment Submission System

Case Study - Aromatic, tasty toasts

MELVIN CHAN’s toasted breads may appear ordinary but when you take a
closer look you will be surprised at what he can do to make the bread tastier.

All he does is slap on the margarine, spreading on thick gobs of peanut butter,
jam, kaya, omelette, cheese, sausage and then it’s ready for eating.

Of course, this is something that Chan, 27, will hotly refute, but we’ll air his
arguments later.

Scrumptious breads: The sky is the limit when it comes to what goes on Chan’s
toasts.

Simple, no fuss and easy. Those were the three key words that spurred Chan to
kick off a stall selling nothing but toasted breads with basic toppings five years
ago. And Chan did have a winning formula.

The fact that he can use up to 15 loaves of bread in a day (that’s 22 slices per
loaf) is testament of Chan’s growing popularity.

“In the beginning, my parents didn’t understand the logic behind my idea but I’ve
been to Taiwan and Hong Kong and I was able to see the same concept working
well for their owners.

Here comes the crunch: Peanut butter on toast, sprinkled with


chopped peanuts.

“So, I don’t see why the same principle cannot work as well here,” reasoned
Chan.

For a brief introduction on Chan, this father of one is the third generation to carry
on the Fung Wong biscuits line in Jalan Cecil in Kuala Lumpur.

In addition to the Chinese bakery, the family business also included a ‘tai chow’
concern at night and a porridge stall across the street.

The toasted bread venture is another one of Chan’s ideas, as he truthfully


admitted, to increase revenue.

“One of the side products to our family’s bakery was the bread baked by our
kitchen.

“In comparison to the biscuits and pastries, they were slower in sales. So what I
thought was, since we already had a product, why not take it a step further and
present it as a ready-to-eat item?” he reasoned.

Herein, logic begs one to question the validity of spending good money on a food
item that a diner can easily prepare for himself at home.

Perhaps, as Chan suggested gently, that the proof must lie in the eating.

Undeniably, Chan’s toasts were tasty. We attributed it to the bread, his father’s
in-house recipe.
Evergreen: Kaya and butter in a bun.

Made of wheat flour, they are baked fresh daily and noticeably, the crust had a
crackly texture to contrast the soft spongy whites of the bread.

When toasted, there was a fragrant aroma which helped tremendously to whet
the appetite.

For peanut lovers, Chan recommended the Mr Peanut creation which featured a
generous layer of peanut butter on toasted bread. It was topped with a generous
sprinkling of more chopped peanuts and the verdict was a nutty delight from
beginning to end.

For something more colourful, there was the Four Seasons sandwich which
featured a combo of margarine, jam, kaya and peanut butter. This may well be
the answer for the finicky diner but it did come to mind if this item may not be a
gimmick to attract the younger palates with its attractive combination. Still, it did
offer a good munch.

For something more sinful, Chan had his bread dipped in egg and fried till golden
brown. This was then criss-crossed with either condensed milk or chocolate
sauce according to the diner’s fancy. The result was a soft, rich flavour,
accentuated by the sweetness of the toppings.

To make it easier for a weight-watcher to digest this snack, it is recommended


that one does a walk-and-eat session with this item so as to make the dissipation
of calories an easier affair for the body.

Classic: Omelette sandwich.

Herein, Chan would also like to stress that the diner can be assured of a better
sandwich in comparison to the home-made variety.

“I have tweaked the flavours of the peanut butter according to a secret recipe and
all the ingredients used have been ‘modified’ in some way to present a more
mouth-watering sensation,” revealed Chan of his tasty toasts.

Nevertheless, 300 customers a day can’t be wrong and Chan has ensured that
there will be no lacking of choice with his menu of 15 varieties of toasted bread
flavours.

“So far, the office ladies have found my toasts to be a delectable snack and
having their support has assured me that I am giving them value for money,” he
said.

Chan’s stall is located right in front of the Fung Wong pastry shop at 28, Jalan
Cecil, Kuala Lumpur. Tel: 012-6543211.

© 2009, Star Publications (Malaysia) Bhd (Co No: 10894-D)

(Source: Chen. G, Aromatic tasty toasts, retrieved from


http://thestar.com.my/news/story.asp?file=/2009/1/4/sundaymetro/2815020&sec=
sundaymetro accessed 9 January 2009)

Questions:

1. Who are the target group of Melvin Chan’s business?


(15 marks)

2. Briefly explain whether the environmental forces in this global economic crisis
will have an impact on Melvin Chan’s business.
(15 marks)

3. What are the major strengths and weaknesses of Melvin Chan’s business?
(20 marks)

4. Who do you think will be competitors of Melvin Chan’s toast stall in Kuala
Lumpur? Justify your answer.
(25 marks)

5. Discuss how Melvin Chan plans to improve customer satisfaction with his
toasts.
(25 marks)

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