Table of Contents

Chapter 1 - Project Overview...............................................................................................................1 1.1.Introduction ...............................................................................................................................1 1.2.Problem Statement and Issue.....................................................................................................2 1.3 Objective sand Aims..................................................................................................................2 Chapter 2 - Project Profile....................................................................................................................3 2.1.Product Name.............................................................................................................................3 2.2.Product Classification.................................................................................................................3 2.3.Product Characteristics...............................................................................................................3 2.4.Product Range............................................................................................................................5 2.5.Distribution.................................................................................................................................6 2.6.Product Life Cycle......................................................................................................................6 2.7.The Brand...................................................................................................................................7 2.8.Brand Image and Implication.....................................................................................................7 2.9.Strength and Weakness..............................................................................................................8 2.10.Advantages and Disadvantages................................................................................................8 2.11.Unique Selling Proposition (USP)...........................................................................................9 2.12.Promotional History and Advertising Schedule......................................................................9 2.13.Positioning Statement.............................................................................................................13 Chapter 3 - The Company..................................................................................................................14 3.1.Company Overview..................................................................................................................14 3.2.Business Description................................................................................................................14 3.3.Company History.....................................................................................................................15 3.4.Key People................................................................................................................................15 3.5.Location and Subsidiaries........................................................................................................16 3.6.Brand, Major Products and Services........................................................................................18 3.7.Corporate Vision .....................................................................................................................19 3.8.Corporate Mission....................................................................................................................19 3.9.Companys Current Promotional Strategy...............................................................................19 3.10.Product Sales History.............................................................................................................19 3.11.Current Marketing Strategy ...................................................................................................20

3.12.Media Expenditure.................................................................................................................20 Chapter 4 - Consumers and Stakeholders..........................................................................................22 4.1.Current Consumers Characteristic..........................................................................................22 4.2 Stakeholders Characteristics..................................................................................................23 Chapter Five - The Industry and Marketplace...................................................................................25 5.1.The Industry..............................................................................................................................25 5.2 The Marketplace .....................................................................................................................27 Chapter 6 Competitive Situation.....................................................................................................28 6.1.Direct Competitors...................................................................................................................29 6.2.Indirect Competitors.................................................................................................................34 Chapter 7 SWOT Analysis..............................................................................................................35 7.1.Strength.....................................................................................................................................35 7.2.Weakness..................................................................................................................................36 7.3.Opportunities............................................................................................................................36 7.4.Threats......................................................................................................................................36 Chapter 8 Strategic Target Audience..............................................................................................37 8.1.Proposed Primary Target Audience.........................................................................................37 8.2.Proposed Secondary Target Audience (if any)........................................................................39 Chapter 9 Research Development...................................................................................................41 9.1.Marketplace Research..............................................................................................................41 9.2.Market Observation..................................................................................................................44 9.3.Online Survey...........................................................................................................................44 9.4.Interview...................................................................................................................................58 Chapter 10 Precedent Studies..........................................................................................................59 10.1. Advertising Strategy..............................................................................................................59 10.2 Precedent Studies...................................................................................................................65 Chapter 11 References.....................................................................................................................68 Chapter 12 Appendices....................................................................................................................70 12.1Survey Question......................................................................................................................70

Chapter 1 - Project Overview

1.1.Introduction

Lecka-lecka is a premium ice cream brand that is known for their fresh and daily made Italian Gelato. The word lecka or properly spelled as lecca in Italian means licking that suggests how delicious these gelatos are. They are recognized for their very own gelato made by a tradition Italian recipe that is extremely appetizing and low in calorie count. Lecka-lecka declares that they are 99.9% fat free for their Fruit-Based and 94.9% fat free for their Milk-Based Products. They are made of the healthiest of fruits and quality ingredients imported from around the world but they are made locally. Because of this, their shelf-life is only up to 3 months. They are specialized in their fresh gelato that has no air whipped or added inside at all which does not cause it to melt so easily as compared to other creamy textured ice creams. For those with high sugar count, Lecka-lecka also produces diabetic gelatos that are specially made for this reason. They have also started a healthy yoghurt choice as well as the first to produce a Soy Based Gelato. Lecka-lecka is the perfect treat for those who are health conscious yet still crave for a tasty dessert.

Lecka-lecka Gelato Ice Cream | 1

They were introduced to the market in 2003 and have 10 outlets in the Klang Valley. It has over 150 flavors to choose from a range of local and international flavors that rotates and vary at each and every outlet. Besides having its own Gelato outlet, Lecka-lecka also sells its ice cream in tubs at several supermarkets and hypermarkets. In addition to that, Lecka-lecka is the only Jakim Halal Certified Gelato brand in Malaysia.

1.2.Problem Statement and Issue

The problem faced by Lecka-lecka is that the public may get the wrong impression that gelatos are unhealthy and concentrated with sugar and fat. In terms of pricing, these gelatos are a little more costly than ordinary ice creams. This leads consumers to buy cheaper sold ice creams instead. They are also often overshadowed by other leading and prominent ice cream brands.

1.3 Objective sand Aims

Objective: To inform the public that it is fat-free and emphasize on the healthy fruits and ingredients used To promote a healthier eating lifestyle for the young generation and health-conscious mind To create colorful and fruitful elements to represent the ingredients and flavors inside the gelatos Aim: The aim of this project is to gather and make use of all the information collected towards creating a more effective advertising approach in order to improve the brand image and awareness thus, guiding consumers to enjoy the ice cream as well as lead a healthier eating lifestyle through this healthy ice cream. To create brand awareness to those who are unfamiliar with the benefits of this ice cream

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Chapter 2 - Project Profile

2.1.Product Name
Lecka-lecka

2.2.Product Classification
Lecka-lecka is a consumer product because they are to satisfy an individuals need and desire. It is a non-durable product because it is classified under food/edible goods that fit for human consumption and will eventually be finished. Lecka-lecka is a shopping good because consumers get to pick and choose their desirable shop that fits their interest.

2.3.Product Characteristics
Category: Ice Cream Type: Gelato & Sorbet Packaging: The ice cream is normally served either in a transparent plastic cup that has the brands logo sticker on it (includes a wafer cone as a decoration) or in a classic wafer cone.

Figure 1 Lecka-lecka Packaging

Flavor Range: International flavors and local flavor which are fruit-based, milk-based or soybased. Unit of sale: Per scoop/per cup or cone Lecka-lecka Gelato Ice Cream | 3

Price Range: RM3.00 RM9.90 (for instant ice cream serving depending on mode of packaging) RM22.90 RM45.00 (for take away ice cream packs depending on grams/ml) Range Cup Selection Junior Scoop Single Scoop Double Scoop Triple Scoop Cone Junior Scoop Single Scoop Double Scoop Additional Topping Ice Cream Packs (Outlet) Tubs (Supermarket) Stick Nuts/crumbs/sprinkles/choc rice 500 g 1 kg 500 ml Figure 2 Lecka-leckas product price range

Price (RM) 3.00 5.90 7.90 9.90 3.10 6.40 8.40 0.50 25.00 45.00 22.90 6.90

Figure 3 Lecka-lecka Gelato stick and ice cream pack

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Figure 4 Lecka-lecka Ice cream tubs

2.4.Product Range
Lecka-lecka provides a wide variety selection of gelato flavors that are either local or international including various fruit flavors which are very colorful. Lecka-lecka uses fresh ingredients like Sicilian Pistachios, Hazelnut and Belgian chocolates for gelato and fresh fruits like Berries, Mango, Orange, Lemon, Papaya and Apple for sorbets. The flavors offered in each branch vary but has at least 16 flavors to choose from. The flavors go on an orderliness rotation. They also sell ice cream packs at their outlets. In addition to that, Lecka-lecka ice cream is available in tubs at supermarket and hypermarket that comes in 4 flavors Chocolate, Vanilla, Strawberry and Marena.

Flavors Vanilla Chocolate Mango Strawberry Watermelon Honeydew Mandarin Orange Durian Crme Brule Bacio After 8 Tiramisu Soya Choc Ricotta Cheesecake Coffee Cookies Baby Blue Stracciatella Caribbean Mix Choc Shock Bacio Belgian Chocolate
Figure 5 Lecka-lecka flavors

Natural Yoghurt Biscottino Pistachio Oreos Hazelnut Walnut Chocolate Banana

Soya Chocolate Ferrero Rocher Nockies Green Apple Danger Lemon Sorbet Orange Weds Choc

Lecka-lecka Gelato Ice Cream | 5

Figure 6 Lecka-lecka on display

2.5.Distribution
Lecka-lecka ice cream is primarily distributed directly to their retail outlets as consumers are able to buy them without the involvement of any intermediaries. In addition to that, their ice cream products are also distributed indirectly as their ice cream products are available for purchasing at selective supermarkets and hypermarkets. According to the product life cycle graph, it is learnt that Lecka-leckas sales is at its growth stage at the current time now as they still improving their promotion and advertising strategies to reach consumers. Lecka-lecka is still emerging and growing in the industry.

2.6.Product Life Cycle

Sales

Intro

Growth

Peak

Decline

Time

Product Life Cycle

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2.7.The Brand

Lecka-lecka (M) Sdn Bhd is a 100% foreign own company which has its core business of producing and retailing of Italian gelato. They commit to making sure their gelatos are made fresh daily and they are 99.9% fat free for all fruit-based products, 94.9% fat free for all milk-based products and sugar free for all soy-based gelato. They offer a variety of fresh fruit flavors along with Soy Milk and yoghurt based products which are low in calories from a range of international and local flavors. Lecka-leckas red licking lips gives out the idea that the ice cream is appetizing but also healthy. Their tagline Make It Real! reflects the quality of gelato that they serve to customers in which they are of the best worth.

2.8.Brand Image and Implication

Lecka-lecka is renowned for its fat free gelato ice creams and sorbets that are mouth-watering made finest for their customers. Customers recall Lecka-lecka for its unfailing promise in making the healthiest gelato daily and are low in calories. Not only that, they serve as a delicious dessert. Lecka-lecka is currently growing in terms of expansion of its gelato business and popularity among consumers. They are in the run of opening more chains across Malaysia and maybe in Singapore in the future. Lecka-leckas loyal customers love them for their range of flavors and frequent discounts offered.

Lecka-lecka Gelato Ice Cream | 7

2.9.Strength and Weakness

Strength: Known to be 99.9% fat free for fruit-based, 94.9% fat free for milk-based and sugar free for soy-based gelatos and sorbets. Has a 150 variety choice of flavors (international and local) Produce soy-based gelato Freshly made on a daily basis Made out of the best ingredients that are imported and of fresh fruits and does not contain alcoholic ingredients. Free sampling of all flavors and ability to pick and choose your favorite flavor Sells a 500g or 1kg ice cream pack for home take away Does not melt easily Consumers take them to be expensive as compared to a few other ice cream brands Restrain to only one type of packaging that is considered to be too simple Outlets are not available in that many states but are mostly concentrated in around Kuala Lumpur and the Klang Valley. Limited advertising and promotion on the brand

Weakness:

2.10.
Advantages

Advantages and Disadvantages

First brand to product a soy-based gelato for those who are lactose intolerant Customers will have the ability to pick and choose their favorite flavors Only the freshest and healthiest ice creams are served to customers as they are made daily Benefits in terms of health is guaranteed to customers who are health-conscious The use of no air whipped/added in the making of the gelato preventing them from melting quickly thus the customers satisfaction lasts longer First Jakim Halal Certified Gelato brand in Malaysia Able to hold up without melting too fast like other creamy ice creams Lecka-lecka Gelato Ice Cream | 8

Disadvantage Consumers that are living in non-urban areas will not know about the brand as their outlets are focused mainly in urban areas Competition from brands who offer cheaper price of ice creams customers prefer to spend less Misconception that these ice creams may contain alcohol ingredients as some other brands like Wine Ice Cream, New Zealand Natural and Rum & Raisins flavor at Baskin Robbins

2.11.

Unique Selling Proposition (USP)

Lecka-lecka is a lip smacking gelato ice cream that is fat free.

2.12.

Promotional History and Advertising Schedule

Ongoing promotions are being done in Lecka-lecka Facebook Fan Page, magazines and online deals. The online deals include deals that are offered on Everyday.com, Groupon, Dealmates and many more. Below are some of them. Events and Activities 2006 1. 14th December (7.00pm 12.00am) Mondale Launching, Starhill Gallery 2. 20th September (8.30pm 12.00am) Cortina Watch Launching, Starhill Gallery, Indulge Floor. 3. October Tasputra Perkim - Cool treats for kids, Tasputra Perkim, Kuala Lumpur. 4. ND ING Charity Event, Menara ING, Jalan Raja Chulan 2007 1. 8th February (3.00pm 6.00pm) Mulberry Boutique, Starhill Gallery. 2. (3.00pm 6.00pm) Calvin Klien Boutique, Suria KLCC. 3. 18th August 2nd September (7.00pm 11.00pm) Malaysian International Fireworks, Putrajaya International Convention Centre.

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2008 1. 13th April (7.00pm 11.00pm) Celine Dion Concert, Stadium Negara. 2. 14th March 23rd March (7.00pm 11.00pm) Stylo Fashion Week, Pavilion KL. 3. 29th February (7.00pm 11.00pm) Damansara Twins, Damansara. 4. 8th February (7.00pm 11.00pm) Porsche Design Event, Starhill Galery. 2009 1. ND (12.00pm 7.00pm) Chic Pop Street Market Part 2, Zouk, Kuala Lumpur. 2. October I.M. Magazine Launch, Barcelona, Sunway Pyramid. 3. 21st 23rd March Formula 1 2009 - 10th year anniversary. 4. 1st October SEGi Cervical Cancer Awareness Talk & Campaign, SEGi University College Multipurpose Hall. 2010 1. 30th January (12.00pm 7.00pm) Chic Pop Street Market Part 3, TTDI Plaza. 2. 27th 28th November (11.00am 7.00pm) The Star Kids Fair 2010, Suria KLCC. 3. 18th 21st March (7.00am 9.00pm) Hot Air Balloon Festival 2010, Monument Alaf Baru Percint 2, Putrajaya. 4. March The Awakening Project - making a difference, Precious Children Home, Petaling Jaya. 5. 21st March (8.30pm 9.30pm) Support Earth Hour 2010 + Promotion, Starhill Gallery. 6. 26th & 27th April Lips Smacking Shoot, Lecka-lecka factory & HQ. 7. 28th to 31st October (10.00am 9.00pm) Malaysian Golf & Sport Expo 2010, MIECC, Mines Resort City. 2011 1. March (12.00pm 7.00pm) Glam Street Fashion Bazaar, Lot 10 Shopping Center. 2. 14th to 16th January (11.00am 9.00pm) Baby Junior Fair 2011, Midvalley Exhibition Centre, Kuala Lumpur.

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Promotions and Coupon Deals 1. Everyday Coupon Lecka-lecka Get 2 Bowls of Triple Scoop Gelato for ONLY RM9.90. Valid until October 2011 Number of Coupons sold: 2,187 coupons

2. DealMates Coupon 3. MyStyle Unlimited Buy 1 Free 1 with MyStyle mobile voucher @ Lecka-lecka RM20 for RM50 worth of Gelato, Sorbert and other Desserts at Lecka-lecka, use Unlimited Certificates per Receipt. 60% Off Valid until August 2011 Number of Coupons sold: 2,105 coupons

4. UOB Ladys promotion Lecka-lecka Buy 1 Free 1 Triple Scoop Gelato at RM9.90 Valid until June 2011

5. Hong Leong 6. Groupons 50% Off RM25 for RM50 worth of Premium Gelato, Waffles & Brownies at Lecka-lecka- May combine multiple Groupons Valid until September 2011 Number of coupons sold: 642 coupons Up to 20% Off at Lecka-lecka Offer station Hong Leong credit cardholders only Valid until March 2008

Lecka-lecka Gelato Ice Cream | 11

7. Hahah Deals 57% Off Lecka lecka Brownie or Waffle (both come with a scoop of gelato) + 2 smoothies at only RM15.90 instead of RM36.90. Rewards Multiplier: FREE Single Scoop of Lecka-lecka worth RM5.90 after 50 transactions 8. GoEatOut Lecka-lecka Free Kids Meal or 20% discount Valid until December 2011 Valid until April 2011 Number of coupons sold: 39 coupons

9. Earth Hour 2010 Promotion 10. TimeOut Kuala Lumpur (2011) Purchase magazine to get a coupon for FREE brownie with gelato

11. Digi Rewards Privileges Get a Triple Scoop Gelato for only RM6.90 Valid until December 2011

12. Lecka-lecka Xmas Menu Promotion Valid until December 2009

13. Facebook Creative Status Contest Win a total of 1000 free scoops + RM500 cash to give away Valid until March 2011

Newspaper and Magazine 1. Rasyada B. (2010). Lecka-lecka bukan sekadar ais krim. Utusan Malaysia Online, March. http://www.utusan.com.my/utusan/info.asp? y=2010&dt=0314&pub=Utusan_Malaysia&sec=Keluarga&pg=ke_02.htm 2. Anonymous. (2009). Lecka-lecka Gelato. Malaysian Today, July. http://www.malaysiantoday.com.my/node/645 Lecka-lecka Gelato Ice Cream | 12

3. Ganesan V. (2010). Lecka-lecka lickin good. Business Times, April. http://www.btimes.com.my/Current_News/BTIMES/articles/lecks/Article/ 4. Tan B. H. (2009). More than just ice cream. New Straits Times, September. http://www.accessmylibrary.com/article-1G1-208485944/more-than-just-ice.html 5. I.M. Magazine. (2009). Lecka-lecka Gelato & More. September. 6. A Magazine. (2009). September. 7. The Sun Weekend. (2004). Cooling down the Italian way. August. 8. Going Places. (2009). Lip-licking goodness. November. 9. MYC Extreme. (2009). the Great Big Lick. November. 10. Eh! Magazine. (2009). Leka di Lecka-lecka. December. 11. WorthyBook 2010/2011 edition Lecka-lecka vouchers & special discounts

2.13.

Positioning Statement

Lecka-lecka is a lip smacking gelato ice cream that is fat free targeted to consumers who are health conscious but loves to have a jolly-good time.

Lecka-lecka Gelato Ice Cream | 13

Chapter 3 - The Company

3.1.Company Overview
Lecka-lecka (M) Sdn Bhd, founded in 2003, has established itself in the food and beverage industry as a gelato manufacturer. They have a running business of retailing gelato ice cream for about 8 years as of today. The company manufactures various flavors of gelato as well as sorbet and soy-based ice cream that are aimed for not only health-conscious customers but those who just love ice cream. They were the first company to come up with a soy-based product for consumers who have lactose intolerant. Lecka-leckas noble gelato can be found in outlets in the Klang Valley and various supermarkets/hypermarkets. They are in the planning to open more outlets in the future to come. Lecka-lecka is also the only Jakim Halal Certified gelato brand in Malaysia Other than that, they have been involved in various events as sponsors for support and coming up with online discount promotions to attract customer visits.

3.2.Business Description
Lecka-lecka (M) Sdn Bhds main business consists of retail in frozen desserts predominantly on its gelato and sorbet production in Malaysia. Their production focused mainly on its ice cream retail which is their main source of profit in this business. Their expertise is in the making of Italian gelato and sorbet introduced to consumers. Lecka-lecka outlets can be located around the Klang Valley. This brand has captured consumers who have a big heart for ice creams but are also health-conscious. Lecka-lecka also provide consultancy to food and beverage outlets and help setting up standalone hotels. The company partners which are Gelataria Fresco and Fratelli Fresco team up together to make this happen. They are of good management team and are devoted to handling this daily routine running of the gelato outlets and the field of hospitality management.

Lecka-lecka Gelato Ice Cream | 14

Lecka-leckas research and development work has always emphasized on health, providing sugar free as well as soy gelato for those who are diabetic or lactose intolerant. Its facility manufacturer is located in Kepong and produces 550kg of gelato daily which is equivalent to 5500 scoops. In addition to that, they are currently working on producing vitamin enriched gelato. In 2010, Rajesh Daswani, the General Manager of Lecka-lecka said that they were going to open more franchised branches in Sunway, Subang and Penang. He also mentioned their plans of opening Lecka-lecka outlets in Singapore seeing as to the number of interest they are receiving from there.

3.3.Company History
Lecka-lecka (M) Sdn Bhd was developed and introduced to the Malaysian market in the year 2003 and long since have been the known retailer of the authentic Italian Gelato Ice Cream. They were established in June (2003) by seven shareholders Lal s/o Kishinchand Mohan, Pierluigi Santoni, Giorgio Cadenazzi, Enrico Granziano, Cliff Go Swan Liong and Suvajit Das. It is a 100% foreign owned organization incorporate in Malaysia. They have at least 10 outlets in the Klang Valley and around Kuala Lumpur. Lecka-lecka owns four stores while the rest are franchised. Their key goal was to bring only the best Italian Gelato to the public. Their specialized gelatos come in over 150 various flavors whereby flavors switch turns over at their outlet and are put up for business depending on customer demand. According to Lecka-lecka, their production staffs have been trained in Italy by Mr. Giorgio Cadanazzi, the Master Gelato maker with 25 years of experience in the industry. This is to ensure the productions of gelatos by Lecka-lecka are the finest and similar to its origin. The brands aim was to deliver the healthiest choice of flavors and bring it to the masses that are not only health conscious but also cost conscious. Lecka-lecka from the initial stages of formation were already bound to their commitment which was to provide the best gelato ice cream which are 99.9% fatfree for all fruit based products and 94.9% fat-free for all milk based products that are very low calorie and sugar-free for all soy gelato. They also commit to serve only fresh daily made gelato which is made original with Italian ingredients created on the tradition Italian recipe.

3.4.
Name

Key People
Title Lecka-lecka Gelato Ice Cream | 15

Rajesh Daswani Damayanthi Vivegananthan Nurfitriyana Baharim Gaffar Talip & Sanjoy Chowdhury Samsul Alim

General Manager Admin Accounts Assistant Production Staff Driver

3.5.Location and Subsidiaries

Lecka-Lecka's Headquaters / Factory Lecka-Lecka (M) Sdn Bhd Lot No 2C/10 & 2C/11, Anzen Business Park No 3-9, Jalan 4/37A (Opposite Puspakom) Kawasan Industri Taman Bukit Maluri 52100 Kuala Lumpur T: 03 6274 9900 F: 03 6272 3900 Lecka-Lecka can be located at the following venues: e@Curve, Mutiara Damansara Lot 210 (ii) 2nd Floor, Cineleisure Damansara No 2A, Jalan PJU 7/3 Mutiara Damansara 47800 Petaling Jaya Sungei Wang Plaza, Kuala Lumpur KG 1, Ground Floor Sungei Wang Plaza Jalan Sultan Ismail 50250 Kuala Lumpur Sogo, Kuala Lumpur Lot LG17, Sogo Pernas Lecka-lecka Gelato Ice Cream | 16

Jalan Tuanku Abdul Rahman 50100 Kuala Lumpur Low Yat Plaza, Kuala Lumpur Lot G001 & G001A, Ground Floor Low Yat Plaza Off Jalan Bukit Bintang 55100 Kuala Lumpur Amcorp Mall, Petaling Jaya Ground Floor, Amcorp Mall 18, Jalan Persiaran Barat Off Jalan Timur 46050 Petaling Jaya Alamanda, Putrajaya Lot LG CML 19, Lower Ground Floor Alamanda Putrajaya Shopping Centre Jalan Alamanda Precint 1, 62000 Putrajaya Jaya Jusco Bandar Baru Bukit Raja, Klang, Ground Floor, Jaya Jusco Bandar Baru Bukit Raja 41150 Klang Lecka-lecka Ice Cream Tubs can be found at the following supermarkets/hypermarkets: Mercato: Pavillion & Hartamas Shopping Centre Village Grocer: Bangsar Village, Sunway Giza & 1 Mont Kiara Cold Storage: 1 Utama, Great Eastern Mall, Bangsar Shopping Centre, Solaris, Subang Parade, Alamanda, Gardens Mid Valley, KLCC, Wangsa Walk Ampang, Jaya 1, The Mall, Berjaya Times Square, Mutiara Damansara, Plaza Pelangi Johor Bahru, Gurbey Plaza Penang, Island Plaza Penang Carrefour: Midvalley, Tropicana City Mall, Subang Parade and Wangsa Maju Istean: KLCC UrbanFare Supermarket: SS2 Mall Lecka-lecka Gelato Ice Cream | 17

3.6.Brand, Major Products and Services

Lecka-lecka is specialized in the manufacturing of gelato and is made using a tradition Italian recipe. The brand guarantees that their gelato is made fresh everyday which are 94.9% fat free and their milk-based products are 99.9% fat free for their fruit based products. Their major products are the Italian Gelato and Sorbets which are fruit-based, milk-based or soy-based ice creams. In addition to that, Lecka-lecka sells ice cream tubs in certain hypermarket and supermarkets. Not only that, they also do catering for events, functions, hotels or any parties which indirectly boost their position in the market. This way, Lecka-lecka has proved itself to be a strong and recognized ice cream retail brand in the Malaysian market.

Figure 7 Lecka-leckas commitment

On the additional side, Lecka-lecka also offers a counseling service for workers who enroll themselves in the company. They help workers in terms of their psychological, social and medical needs if any were to take place. This will ensure a good management and bond between staffs. Other services that they provide as stated in Lecka-leckas website are; supply and train employees for future tasks, conduct in-house training in the food and beverage sector, write SOPs (standard operating procedures) for the hotel sector, draw up budgets, set up new food & beverage outlets, consultancy in turning around losing entitles, consultancy in the field of hotel management, negotiations with suppliers and finally project management.

Lecka-lecka Gelato Ice Cream | 18

3.7.Corporate Vision
To commit to their clients requirements, expectations and desires in order to meet the set benchmark in the direction of enhancing the working operations.

3.8.Corporate Mission
To provide quality management services that their clients can depend on in terms of the quality of Gelato to suit the requirements, its competitive pricing, reliability and efficiency and finally solution orientated.

3.9.Companys Current Promotional Strategy

Most of the promotions that are taken place are design for a period of two months. These promotions are usually dealt with credit cards or Lecka-lecka loyalty programs that are made for a year. 2009: Support and Sponsoring events: Chic Pop Street Market Part 2, Cervical Cancer Awareness Talk & Campaign, I.M Magazine Launch 2010: Support and Sponsoring events: Chic Pop Street Market Part 3, The Star Kids Fair Exhibition, Hot Air Balloon Festival, The Awakening Project, Earth Hour Promotion, Malaysian Golf & Sport Expo 2011: Support and Sponsoring events: Glam Street Fashion Bazaar, Baby Junior Fair, Online Discount Promotion Coupons

3.10.

Product Sales History

In 2009, Lecka-lecka earned RM4.78 million in total revenue. According to the General Manager, the performance in 2009 was rather flat as compared to the robust 42% jump in year 2008 due to the quadruple whammy hit which are the financial crisis that appeared, a smaller amount of tourist during the Arab season in July and August, the influenza A (H1N1) pandemic and anxieties over melamine-tainted milk. With all this in mind, General Manager of Lecka-lecka said that they were looking forward to a better increase of sales in 2010 as to being 23% better than 2009, which relates to RM5.88 million in revenue. The growth is said to be comparable to the average year-on-year attainment from 2003 to 2009. Thus, expecting a growth in revenue in the future to come. Lecka-lecka Gelato Ice Cream | 19

3.11.

Current Marketing Strategy

Short Term Objective To provide only the best quality of Italian Gelato to customers and stand against their unfailing promise to produce the freshest and lowest calorie content in their gelato manufacture. Long Term Objective To develop more branch outlets as well as be the forerunner and market leader in the retail of Gelato.

3.12.

Media Expenditure

For the past 8 years, Lecka-lecka has managed to win the hearts and recognition of customers including their business in general. Because of this, the brand awareness levels of consumers who live in urban areas are fairly reasonable. They have depended on a great deal of online advertising such as coupon discounts and promotions. Consumers may purchase these coupons online and get a great discount deal when purchasing the ice cream at Lecka-lecka outlet upon using it. In the case of consumer location, the use of social media has also been a factor to gain recognition as Leckalecka outlets are more concentrated in the big cities. Lecka-lecka is also publicized over the years through print media such as magazines and newspapers. A word on Lecka-lecka can also be found through online reviews that include food review blogs or even customers sharing experience on Lecka-leckas outlets. They also produce give away brochures and flyers for customers. Whats more is that Lecka-lecka gets involved in photo shoots, activities and events by opening their booth which ultimately gets the attention of many people around. Similarly, they become sponsors for various happenings to keep up with the current events. News and updates on the brand can also be found on their official website and Facebook Fan Page which are updated quite regularly. As of now, Lecka-lecka is gathering a big fan base on Facebook.

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Figure 8 Lecka-leckas Official Website

In addition to that, also give out loyalty handouts (Reward Programme) to customers so as to ensure that they keep coming back for more gelatos at their retail outlet. For every 10th purchase of gelato ice cream, customers will get the chance to redeem a Triple Scoop Gelato for free.

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Chapter 4 - Consumers and Stakeholders

4.1.Current Consumers Characteristic

1.1.1. Demographics spread
a) Age 18 29 years old b) Gender Male and female c) Education High school, colleges and universities d) Occupation Students, white collar workers. e) Income Range Students Allowance (RM400 RM600) White collar workers Income (RM1500 RM3000)

f) Race & Ethnicity All races and ethnicity g) Geographical Location Urban and sub-urban areas

1.1.2. Psychographics
a) Perception. Loves a fun time with friends and family while enjoying a healthy dessert that is both delicious and nutritious. b) Learning Digital and social media influences such as Facebook, blog reviews, Influence from recommendation by friends and families. websites and promotions offered online.

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c) Motivation & Needs Looking for fun and exciting healthy dessert options to try out and enjoy it Likes to experiment different type of flavors. Loves to socialize and have a joyous life and are more inclined to Jovial, sociable and loves to try new food. Leads a healthy eating lifestyle, active life routine and may have a stressful Likes to be carefree and loves to spend time with families and enjoys with friends and families. d) Attitude & Personality purchasing healthier dessert products. e) Lifestyle working life but knows how to take a break from it. gatherings with friends.

4.2

Stakeholders Characteristics
1.1.3. Primary
The primary stakeholders of the company are from international countries. Their contribution

involves their expertise and knowledge in terms of improving the management and organization of the company and business. Board of Directors The board of directors is in charge of guiding staffs and employers in managing the company to reach the organizations objective. They are also responsible in ensuring the profit earned by the company and look after the assets of the current shareholders. Shareholders The shareholders are known as stockholders who contribute in investing money in the company and earn a share in profit accordingly when the company achieves a certain target but is subjected to loss when the company performs badly.

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Employees The employees are in charge of contributing to the company and perform jobs/tasks as instructed by the company and receives their monthly wages in return.

Consumers The consumers are individuals who have the power to purchase of the companys products depending on the product worth in terms of the product quality, thus contributing to the companys sales revenue.

1.1.4. Secondary
Distributors The distributors are in charge of supplying the associated products for the companys business to be sold to customers. Media The media functions as a medium to advertise the products and create brand awareness to the public to gain exposure on it thus expecting a growth in sales. Banks The bank helps the company in terms of financial situations and provides loans and funds in order for them to expand their business.

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Chapter Five - The Industry and Marketplace

5.1.The Industry

1.1.5. Definition of the Industry

The food and beverage industry is widely expanding its sector year after year. Its focus is in the making and delivering of foods as well as the concept behind every production. In assuring consumers satisfaction and quality guaranteed production, companies are bending hastily to keep up with the speed of change according to consumer demands. They are further subdivided into groups that comprises of meat, fish, fruit and vegetables, fats, dairy products, grain mill, starch products and prepared animal feeds. One of the largest divisions of the food and beverage operations is the cafes, bars and restaurants. Internationally, the food and beverage sector is one of the many important industries in the world economy and is rated approximately at 4.22 billion and 4.4 million people are employed under it. In addition to that, some small group of multinational companies are leading the industry and running globally. However, a great deal of small and medium-sized firms are manufacturing for the local markets.

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In Malaysia, its food and beverage industry is rather small as compared to the other countries which are at 2.75% on average. With this in mind, Malaysia is more reliant on imported food and consumer products regardless of their potential. Consumers spend about 20% of their income on food. Malaysias food consumption is estimated to increase 9.4% in 2012 in relation to Malaysias vision of becoming a high income society and economic growth.

1.1.6. Shape of the Industry

The food and beverage industry contributes to one of the major economic growth. Its development growth has been consistent annually. They are also expected to increase at 3.5% by 2014. Europe currently has the largest share in the global food and beverage industry along followed by US. China and India is presently the major contributor or raw materials to the food and beverage industry. The main difficulty faced by this industry is the rising of food prices, transportation cost for oil consumption causing a decline in consumer expenditure. Even so, the food and beverage industry are less impinged on as compared to other industries since food product is vital to consumers. With this in mind, the food retail industry is expected to rise from $3.9 of 4.8% between 2008 and 2013 to $5 billion. The performance of the industry is strong even with the rise of prices, market downturn and decrease in consumer spending. But with that in mind, companies need to adjust to these changes and adapt accordingly to each issue that arise. According to a research, it is said that the sales revenue for beverage slightly dropped. On the other hand, the food market improved mildly even with the increase of food costs (expenses increase from 17.6% (2007) to 18.2 % (2008).

1.1.7. Development of the Industry

The food and beverage industry is expected to continue its growth, primarily focused by developing countries and their large populations and rising income. However, due to rising of fuel prices, the food and beverage industry may expect a downturn. Lecka-lecka Gelato Ice Cream | 26

At present, around 58% of produced food is consumed by developing countries. It is also expected to rise up to 72% by 2050. A rise in cereal demand is predicted to increase from 2.1 billion tons to more than 3 billion. The buying shape in low cost countries is developing from small grocery stores to bigger hypermarkets and supermarkets like Tesco, Carrefour and Wal-Mart. Besides that, recent studies have said there is a shift in demographics of consumer hence the demand and choice of products they want to buy has grown towards improved health and dietary lifestyle. According to 2007 International Food Information Council survey, 75% good that are healthy and nutritious is a factor in maintaining health. Asia is said to have had the similar changes. With that in mind, the food and beverage industry has to go along with the changes to meet consumers demand.

5.2

The Marketplace
1.1.8. Current Condition of the Marketplace
The market place of ice cream products are classified into the frozen dessert market. They

fall under one of the subdivisions of the food and beverage industry. Frozen desserts by definition are desserts that are made by freezing liquid, semi-solid and at times even solid. Besides that, frozen desserts also have flavored water based on fruit flavors which includes sorbets, sherbets and gelatos and not forgetting the conventional milk and cream which includes most ice creams and premium ice creams. The ice cream and frozen dessert comprises of a variety of products such as low/non/fat, regular, premium and super premium ice cream, soft serve ice cream, hard and soft frozen yogurt, sorbets, gelato and frozen ices. With that in mind, frozen dessert falls under the second level from the top of the food guide pyramid which has four levels. This would also mean they should be consumed occasionally only.Globally, the frozen dessert market is expected to reach $47.3 billion by the year 2015 in Europe. Asia-Pacific on the other hand has the fastest growing frozen dessert market worldwide.

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1.1.9. Changes in Marketplace

The frozen dessert market is growing progressively in Malaysia. Mainly the ice cream businesses as they are gaining fast popularity such as Hagen-Dazs that are aiming for more wealthy and urban consumers. Ice cream cafes have become a trend nowadays with the high demand of healthy ice creams as to the current overwhelming weather consumers try to endure. At the same time, manufacturers of frozen desserts are aiming on the average income consumers to purchase bulk ice cream and multipack ice cream by companies such as Nestle and Walls. In 2009, Unilever Holdings took over Nestls position of holding the leading ice cream company due to Walls and Cornettos varieties of ice creams offered. In addition to that, their marketing and promotion activities have led them to achieve this stance. Malaysian consumers have now target more toward the western-style food service outlets allowing restaurants and more cafs to meet their expectation. Ice cream parlors such as Hagen-Dazs currently have a growth value of 12% as they are constantly gaining fame in Malaysia. The sales of frozen desserts are constantly changing which are mainly influenced by the shifts in the economy. However, many companies are developing better enhanced products and improving existing ones in the market by counting in features according to consumer demands. Now many companies are focusing on producing fat-free and low-fat classes of frozen desserts as compared to the full-fat category on the account of consumers who are not very particular about their fat intake as to keep a healthy eating lifestyle.

Chapter 6 Competitive Situation

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6.1.Direct Competitors
1.1.10.Gelato Fruity

Gelato Fruity was founded by Ms Vivian Yap in the year 2004. She has had experience in the retail industry for 20 years and decided to open her own Gelato ice cream business. The first Gelato Fruity outlet opened in 1 Utama Shopping Centre. Gelato Fruity serves quality gelato to customers that are made using Italian formulation as well as a combination of premium grade ingredients. They serve funky flavors and also fruit juices and milkshakes. The store concept uses a lot of fruit graphic elements that are bright and colorful like the logo. Gelato Fruity currently has 5 outlets at around the Klang Valley area. They are slowly expanding to opening more outlets in the months to come as mentioned in their website. Type: Gelato Ice Cream Price Range: RM6.80 (single scoop), RM9.80 (double scoop), RM10.90 (triple scoop) Strength: Has a variety of fruit-based mixtures and ice cream Very eye-catching in terms of colors compared to other ice creams

Market Share: It is progressively gaining a position in the gelato market. Product Range: Gelato, fruit juice, milkshakes

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Positioning: Gelato Fruity is a Gelato retail that produces excellent quality gelatos made with Italian formulation and a combination of premium grade ingredients to serve customers.

1.1.11.Baskin Robbins

Baskin Robbins was first established in 1945 in Los Angeles. Its founder Mr. Burt Baskin and Mr. Irv Robbins initiated their outlet with originality and good philosophy of fun into their ice cream store. They managed to gain public interest and extended to eight outlet stores in just 3 years. Baskin Robbins is one of the largest ice cream ice cream retail in the word. It currently has more than 6,000 shops in 35 countries. Not only that, they offer over 1,000 flavors of ice cream. Currently, all ice cream products sold in Malaysia are imported from the United States for the reason of sustaining the taste of its products and maintain a kind of consistency. Baskin Robbins has a large fan based of very loyal customers since. They are constantly coming up with new promotions and ads to gain public attention and maintain their loyal customers. Type: Premium Ice Cream Price Range: One regular scoop (RM7.50), Double regular scoop (RM14.00), Triple regular scoop (RM21.00) Strength: Has a very large fan based who are very loyal to their products Serves over 1,000 flavor selections to pamper customers taste-buds Lecka-lecka Gelato Ice Cream | 30

Market Share: Has one of the largest market and one of the top ice cream retailers in the world. Product Range: Ice creams, sundaes, waffles. Positioning: Baskin Robbins is a premium ice cream brand that does not only pamper you with its variety of flavors but wants to show customers how to have fun while they are it.

1.1.12.Gelre

Gelre is an Italian word that means to freeze and where the ice cream is originated. Gelre ice creams are heavy and dense with no over run. In achieving this, they use a special machinery to churn the ice creams. Their ice cream uses only natural ingredients with absolutely no artificial flavoring, coloring or preservatives. This is inclining with their brand tagline which is all natural ice cream. Their ice cream product are a combination of Italian and American ice cream with an Australian twist into it, thus creating the ultimate ice cream. Gelre is a superpremium ice that is produced with fresh milk and cream as well as the best ingredients and manufacturing technology. Type: Super Premium Ice Cream Price Range: Single scoop (RM7.90) Strength: Very thick and dense ice cream that is very delicious Best waffles to have with the ice cream Lecka-lecka Gelato Ice Cream | 31

Market Share: Relatively new but gradually expanding in the gelato market. Product Range: Ice cream, frozen yoghurt, sorbet, waffles, sandwiches, coffee & beverages Positioning: Gelre is a super-premium ice cream with real flavor and no artificial ingredients that guarantees to deliver a smile on the face of every ice cream lover.

1.1.13.Gelatissimo

Gelatissimo is Australias more popular gelato. They are made fresh daily by a genuine family recipe and is known to be award winning. They are made with the best ingredients to produce the highest standards of gelato. Their premium dairy and sorbet flavors are made precisely to make only the best quality of their products. Gelatissimo gelato is very smooth, rich and simply irresistible. It has now over 30 stores that are international and local. Gelatissimo has extended their market of retail to Asia countries such as Indonesia, Singapore, Malaysia, Philippines and more in the planning. They have their own unique concept store to provide the best customer experience. They have many outlets available in the Klang Valley and 35 flavors to choose from. Type: Gelato Ice Cream Price: Single scoop (RM8.30), One flavor cup (RM8.90), Two flavor cup (RM12.90), Three flavor cup (RM16.90) Strength: Award winning gelato made using an authentic family recipe. Concept store gives an Italian ambience to customers while enjoying the gelatos

Market Share: It is growing well as the demand of gelato rises up in the market. Product Range: Gelato, sorbet and other types of appetizers and desserts Lecka-lecka Gelato Ice Cream | 32

Positioning: Gelatissimo is an Australian gelato that is very smooth, rich and simply irresistible that gives the ultimate satisfaction in an ambience of the true Italy.

1.1.14.Gelatomio

Gelatomio is one of Malaysias known gelato brand. It is a brand of Italy and has expanded its business in Malaysia with the reason to enlarge their market scope throughout Asia. Since then, the market for gelato in Malaysia turns out to be a very good deal for Gelatomio to increase their business. Their gelato products can also be found in many leading supermarkets and served in 5 stars restaurants and hotels since the year 2005. Gelatomio makes fresh gelato with natural ingredients that are strictly no animal fat or color and preservatives used. They also have 50 flavors of ice cream with new ones coming up. Type: Gelato Ice Cream Price: Single scoop (RM6.60), Four scoops the platter (RM16.00) Strength: A delicious sweet treat for gelato lovers that is made from 100% natural ingredients with no artificial ingredients or animal fat emulsifiers are included Have been featured in a lot of newspaper and magazine articles and even in catering for hotels and events Market Share: It is growing steadily in the gelato market and the brand has a large number of loyal customers Product Range: Gelato

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Positioning: Gelatomio is a healthy temptation gelato made of 100% natural ingredients and highly fresh and 99% fat free.

6.2.Indirect Competitors
1.1.15.Famous Amos

Famous Amos is a renowned brand that is famous for their wide variety of mouth-watering cookies and gift packaging. The brand was founded by Wally Amos in the year of 1984. All of its chocolates were imported and packaging gifts were made uniquely. The first outlet in Malaysia was opened in Sungei Wang Plaza. This very successful hot-baked store has over 60 outlets in shopping malls and airports in Malaysia. Famous Amos sells even more like hot cakes during festive seasons in Malaysia. In addition to this, Famous Amos also includes a range of their own ice cream products at selected outlets that have gained many customers attention. Type: Confectionary Price Range for Ice Cream: One scoop (RM5.90), two scoops (RM7.90), three scoops (RM10.90)

1.1.16.Secret Recipe

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Secret Recipe is a famous lifestyle caf since the year 1997. It has spread its brand name across many countries including Malaysia, Singapore, Indonesia, Thailand, China, Philippines, Brunei and Australia. They are known for their fine quality of cakes, including dining food and services. Secret Recipe is one of the largest caf chains in Malaysia to this day. They are committed to serve good quality of all types of food to customers. There are a variety of 20 fusion food, 40 cake creations and pastries, and not forgetting the range of ice cream flavors offered in their caf. They have over 250 cafes throughout the region and still continuing to grow in terms of recognition and success in the industry. Type: Food Caf

Chapter 7 SWOT Analysis

7.1.Strength
Known to be 99.9% fat free for fruit-based, 94.9% fat free for milk-based and sugar free for soy-based gelatos and sorbets. Lecka-lecka Gelato Ice Cream | 35

Has a 150 variety choice of flavors (international and local) to choose from First to produce a soy-based gelato ice cream Freshly made on a daily basis and with quality ingredients that are imported Sells a 500g or 1kg ice cream pack at the outlet for home take away Last longer without melting so easily like other creamy ice creams

that goes on rotation

and of fresh fruits.

7.2.Weakness
Consumers take them to be expensive as compared to a few other ice cream brands Restrain to only one type of packaging that is considered to be too simple Outlets are not available in that many states but are mostly concentrated in around Kuala Lumpur and the Klang Valley. Limited advertising and promotion on the brand

7.3.Opportunities
Hot weather seasons give way to high demands of this brand Open air events and activities would give way to this brand to sponsor and promote their products indirectly would benefit both of them equally. Health campaigns would give way to this brand to sponsor and do promotion to increase awareness. Demands from neighboring countries who want to try out this brand but are not available where they are.

7.4.Threats
Rainy seasons would bring down the sales for ice cream products Flu and virus would be a result of less ice cream demand Competition from other top ice cream brands who already has a stable and huge number of loyal customer overshadows other emerging brands Lecka-lecka Gelato Ice Cream | 36

Publics continuous belief that all ice cream is bad for the health and if there are healthy ones available, they are just not as delicious.

Chapter 8 Strategic Target Audience

8.1.Proposed Primary Target Audience

1.1.17.Demographics
a) Age 18 25 years old Lecka-lecka Gelato Ice Cream | 37

b) Gender Male and female c) Education Colleges and universities d) Occupation Students, white collar workers. e) Income Range Students Allowance (RM400 RM600) White collar workers Income (RM1500 RM3000)

f) Race & Ethnicity All races and ethnicity g) Geographical Location Urban and sub-urban areas

1.1.18.Psychographics
a) Perception Loves to have a fun time with friends and family while enjoying a healthy dessert that is both delicious and nutritious. b) Learning Digital and social media influences such as Facebook, blog reviews, Influence from recommendation by friends and families. websites and promotions offered online.

Lecka-lecka Gelato Ice Cream | 38

c) Motivation & Needs Looking for tasty and healthy dessert options to try out and enjoy it with Particular about their physical figure. Loves to socialize and have a joyous life but is particular about the type of Cheerful, out-going, and adventurous and love to try new food. Lives a healthy eating lifestyle and keeping themselves in shape. Likes to be carefree and loves to spend time with families and enjoys friends and families. d) Attitude & Personality food they eat. e) Lifestyle

gatherings with friends.

8.2.Proposed Secondary Target Audience (if any)

1.1.19.Demographics
a) Age 30 40 years old b) Gender Male and female c) Occupation White collar workers, professionals. d) Income Range White collar workers Income (RM1500 RM3000) Professional workers Salary (RM4000 RM8000)

e) Race & Ethnicity All races and ethnicity f) Geographical Location Urban and sub-urban areas

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1.1.20.Psychographics
a) Perception Enjoys family outings and loves to treat their children with quality desserts. Print media such as newspaper and magazines; digital and social media b) Learning influences such as Facebook, blog reviews, websites and promotions offered online. Influence from recommendation by co-workers and friends. Looking for fun and exciting healthy dessert options to try out with loved c) Motivation & Needs ones and colleagues. d) Attitude & Personality Loves to socialize and have a joyous life and are more inclined to Lively, out-going, adventurous and love to try new food. Living a healthy eating lifestyle and exercises a lot. Active life routine and may have a stressful working life but knows how to purchasing healthier dessert products during family day out. e) Lifestyle

take a break from it.

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Chapter 9 Research Development

9.1.Marketplace Research
1.1.21.Outlet Visit
In order to collect information about the outlet, I have performed a visit to the main Leckalecka branch at e@Curve, Damansara. Information such as the type of flavors, servings, atmosphere and surrounding feeling has been observed precisely in order to study the concept behind the brand.

Figure 9 Lecka-lecka Outlet

1.1.22.Outlet Concept
Lecka-leckas outlet in E@Curve, Damansara is believed to be the main outlet as to why many promotion coupons can be used and enjoyed here. The location of Lecka-lecka is very strategic in a sense that it is situated at the first floor and located in between a pool & snooker center and the movie theatre. Lecka-lecka is centralized amongst other shops in which allow it to shine as an eye-catching place to relax and have a break. There is also a big signboard of their logo and brand name at the back that stands out when passing by. Through my observation, the location where Lecka-lecka is placed in is brilliant to reach many consumers. Customers who often drop by at Lecka-lecka are the ones who normally just got out of the cinema. Logically, Lecka-lecka acts as a final treat for consumers before they decide on Lecka-lecka Gelato Ice Cream | 41

whether to go out shopping or back home. On the plus side, those who intend to drop by the pool center would generally have to take the escalator up, where by Lecka-lecka is situated right in front of them. This strategic location makes it an ideal place to achieve its daily targeted sales. The concept of the outlet reflects a lot on its brand. Lecka-lecka has a very comfortable sitting and resting area that gives the feeling of coziness and pleasure at the same time. The seating area consists of 4 types of settings. Black plastic chairs with tables Black couch-like seating with tables Black stools with table counters Red circular shape seating

Figure 10 Lecka-lecka sitting area

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1.1.23.Product Observation
During my visit to the outlet, I tried out Lecka-leckas Gelato Ice Cream. At the same time, I observed the placement and arrangement of their products and how they were displayed. Different flavors were displayed in a horizontal position in a transparent glass. At a glance - there were about 17 flavors to choose from that were very attention grabbing, bright and colorful.

Figure 11 Lecka-leckagelato serving

Besides that, they also display their Menu items on the front counter together with a stack of plastic cups and cones for serving ice cream. They also provide tissues with the brand name printed on it. On the plus side, they also offer Lecka-lecka 500ml Mineral Water for purchase together with other types of drinks including Evian 330 Mineral Water, Coke, Sprite, A&W Sarsaparilla, Milkshakes, Coffee and Vitamin drink.

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Figure 12 Lecka-leckas environment

9.2.Market Observation
In order to do a market observation, the numbers of customers that purchase gelatos at Leckalecka are recorded for the day between the hours of 11am to 7pm. The customers who visit the outlet vary from children, teenagers, professionals and families.

Time Number of customers

11am 1pm 15

1pm 3pm 23

3pm 5pm 18

5pm 7pm 22

9.3.Online Survey
An online survey was conducted on the 12th of November 2011 until 17th of November 2011 with a total of 100 respondents. The survey aims to investigate the level of awareness of consumers on the Lecka-lecka brand and their benefits, consumers thoughts and opinions on different brands of ice cream as well as the area that could possibly be improvised in order to strengthen the brand image of Lecka-lecka.

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1.1.24.Survey Results
i. Part 1: Consumer Profile

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ii.

Part 2:General understanding of Ice Cream

Question 7 investigates how often a consumer eats ice cream. 37% of the respondents they take ice cream several times in a month. 20% and 18% has ice cream once every few months and one a month respectively. 13% consumes it once in a week and 12% consumes it several times in a week.

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Question 8 investigates consumers favorite choice of ice cream brand. The highest favored ice cream brand among the respondents is Walls Ice Cream with 25% - this shows how recognized the brand is. The second most favored brand is Baskin Robbins (23%), third is Hagen-Dazs (21%). Some of the other brands that were also mentioned by the respondents are McDonalds Ice Cream, Ben & Jerrys, Kings, Famous Amos, Nestle, Magnum and New Zealand Natural.

Question 9 explores the reasons why consumers eat ice cream. Based on the 100 respondents, a majority have mentioned that they consume ice cream because they love the taste of ice cream and the pleasure that it brings to them. Their reason is a matter of enjoyment and because they just love it. The second highest mentioned reason is the weather in Malaysia. Respondents said the due to the hot and dry weather, they feel the urge to want to eat ice creams to cool themselves down. Besides that, several respondents consume ice cream because it makes them feel happy and it changes their mood from sad to happy.

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Question 10 investigates the points consumers take into consideration before buying. The taste and flavors play the biggest role in getting consumers to buy ice cream with 31%. The price range (20%) is also an issue to be taken into consideration for them before purchasing an ice cream. Other points that are taken into consideration are the ice cream brand (12%), the quantity of ice cream (11%) given and the attractiveness in terms of the ice cream packaging.

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According to question 11, the most ideal price to purchase an ice cream to consumers is of the range of RM3-RM6 with 65% of respondents. This shows that consumers do not want to overspend money on ice creams among other things. 32% voted that RM7-RM12 is a fair price and only 3% are willing to spend RM13-RM25 for an ice cream.

Question 12 is to investigate whether or not consumers think ice creams are healthy. Based on the votes, 68% of the respondents prefer to remain neutral to this question and not have a say to whether or not it is healthy. 16% disagrees by saying its unhealthy and 10% says its healthy. 3% voted strongly agree and strongly disagree on both ends. Lecka-lecka Gelato Ice Cream | 50

With reference to the pie chart above on the question, 70% respondents claimed that they are not familiar with healthier choice of ice creams. This explains why the sales for healthier ice creams such as sorbet, gelato and frozen yoghurt are somewhat slower compared to normal ice creams. Only 30% respondents are familiar with healthy selection of ice creams.

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Part 3: Lecka-lecka Brand Awareness

According to question 14 and 15, 70% of the respondents do not know Lecka-lecka and only 30% are familiar with it. Based on that, 67% says they have never heard of it before. 15% said they learnt about Lecka-lecka from recommendations through friends and family. 10% knew about it through digital media Lecka-lecka has put a lot of effort on online promotions and discounts. 8% found out about it through print medias such as magazines and flyers.

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Based on the 3 pie charts above, it is learnt that 88% of the respondents do not know about the benefits of Lecka-lecka. This could probably because of the weak emphasis on the brand image. Only 12% knows the distinct advantages of their gelato ice cream. According to those who have tried Lecka-lecka, 53% rates Lecka-lecka on average based on its quality. 42% rated that the quality is good and only 5% rated poor. With this in mind, Lecka-lecka could attempt on improving their brand.

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According to the pie charts above, it is understood that 64% of the respondents think the lack of advertising and promotion is the reason to why not many know about Lecka-lecka. 22% thinks the number of outlets could also be a factor, 9% and 5% thinks that Lecka-lecka should improve on creating more flavors and packaging design respectively. 80% of familiar customers of Leckalecka voted they would return to the outlet for more ice cream and 20% disagreed. 83% of the unfamiliar respondents of Lecka-lecka agreed they would give the brand a try and 17% disagreed otherwise. Lecka-lecka Gelato Ice Cream | 54

iii.

Part 4: Lifestyle Views

Question 22 investigates whether consumers are health conscious about the food they eat or not. 80% of the respondents agreed that they were mindful about the type of food they eat. 20% voted Lecka-lecka Gelato Ice Cream | 55

otherwise. Question 23 proves that 73% of the respondents would prefer to go for healthy ice cream than normal ice cream (27%). This explains that many consumers are most likely to be health-conscious as they would rather not eat food that would affect their health.

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Question 24 looks into the consumers perception on which ice cream packaging is the most eyecatching. 33% of the respondents choose Baskin Robbins to have the most appealing packaging. Hagen-Dazs comes in second with 29% to have the best packaging as voted. 16% voted for Tutti Fruity. The rest are Walls (10%), Lecka-lecka (4%) and others have mentioned Nestle and New Lecka-lecka Gelato Ice Cream | 57

Zealand Natural. As refered to question 25, 61% of the respondents of this survey has disagreed to the idea in which the choice of ice cream they eat reflect their lifestyle. However, 39% agreed that the choice of ice cream they select shows their way of living. This would somewhat explain if a person choose to eat healthy ice cream, they are probably health-conscious.

1.1.25.Survey Conclusion
Based on the results of the survey, it is understood that the brand awareness level of Leckalecka is relatively low and needs to be enhanced on in order to increase customer visits and business sales. It can be noted that majority of the consumers prefer to enjoy a healthy ice cream which gives Lecka-lecka an opportunity to draw customers through their unfailing guarantee of serving fat-free gelato. Promotions and creative advertising also play a huge role in capturing the mass audience to bring them closer to the brand Lecka-lecka to some extend is behind that at this point in time. With this, improvements can be made so as to expand Lecka-lecka as an ice cream brand through better promotional strategies in the future.

9.4.Interview
The interview approach taken was through a phone call and in person dialogue. Another way used was via e-mail with the Finance Manager of Lecka-lecka, Damayanthi Vivegananthan.

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Chapter 10 Precedent Studies

10.1.

Advertising Strategy

The advertising strategy for Lecka-lecka up to now has been somewhat small-scaled. For the past few years, Lecka-lecka has been involved in many online offers for promotions and discounts. They have depended more on online advertising and kept their customers updated on latest news through their Facebook Fan page and Website.

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Figure 13 Lecka-lecka season promotions

Figure 14 Sponsoring events, Lecka-lecka booth, sampling activities

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Figure 15 General Manager lending a hand to disabled children

Figure 16 Event sponsor and Lecka-lecka promotion & Worthy Book discount coupons

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Figure 17 Lecka-leckas appearance in magazine & newspaper

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Figure 18 Lecka-lecka photoshoot

Figure 19 Lecka-lecka Loyalty Programme

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10.2 Precedent Studies

Gelre

Figure 20 Gelres Promotion and Pillar Advertisement

Spoon

Figure 21 Clinique + Spoon Ice Cream Exhibition collaborate and Paper bag Design

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 Ben & Jerrys

Figure 22 Ben & Jerrys Truck Advertising and Billboard Advertising

Figure 23 Ben & Jerrys Commercial

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 Walls

Figure 24 Walls Tub Display and Tricycle selling ice cream

Figure 25 Cornetto Walls Commercial

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Chapter 11 References
1. Lecka-lecka. (ND). Lecka-lecka The Truth Inside. Retrieved from http://www.leckalecka.com/ 2. Lecka-lecka Facebook Fan Page. Retrieved from https://www.facebook.com/lecka.lecka.gelato 3. Rasyada, A. R. (2010). Lecka-lecka bukan sekadar ais krim. Retrieved from http://www.utusan.com.my/utusan/info.asp? y=2010&dt=0314&pub=Utusan_Malaysia&sec=Keluarga&pg=ke_02.htm 4. Lee, W. (2009). Like a Lecka-lecka? Retrieved from http://www.mmail.com.my/content/17661-lecka-lecka 5. Anonymous. (ND). Lecka-lecka Gelato More Than Just Gelato. Retrieved from http://www.malaysiantoday.com.my/node/645 6. Ganesan, V. (2010). Lecka-lecka lickin good. Retrieved from http://www.btimes.com.my/Current_News/BTIMES/articles/lecks/Article/ 7. Anonymous. (2005). Ice Cream goes upmarket. Retrieved from http://thestar.com.my/lifestyle/story.asp? file=/2005/12/12/lifeliving/12613881&sec=lifeliving 8. Ta. (2009). Lecka-lecka Gelato Bar & Restaurant: More than just ice cream. Retrieved from http://www.eats.my/review.php?id=253 9. Anonymous. (2006). Cool treat for kids. Retrieved from http://tasputra.com/history/item/112-cool-treat-for-kids.html 10. Angelene. (2009). 6 places in KL to feed your Gelato needs. Retrieved from http://www.klue.com.my/articles/2132-6-places-in-KL-to-feed-your-Gelato-needs

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11. Myra. (2010). Spend your moolah at Chic POP Street Market 3 this weekend, kachingg! Retrieved from http://www.klue.com.my/articles/2725-Spend-your-moolah-at-Chic-POPStreet-Market-3-this-weekend-Kachingg 12. Anonymous. (2009). FT: Lecka-lecka, Starhill Gallery, Jalan Bukit Bintang. Retrieved from http://feedmelah.com/blog/ft-lecka-lecka-starhill-gallery-jalan-bukit-bintang/ 13. Lecka-lecka Gelato The Italian Ice Cream. Retrieved from http://hahasale.com/index.php/buy_sell/18899/Lecka-Lecka-Gelato---The-Italian-IceCream/?t=1278566332 14. Industries in Malaysia. Retrieved from http://www.mida.gov.my/env3/index.php? page=food-industries 15. Ice Cream in Malaysia. Retrieved from http://www.euromonitor.com/ice-cream-inmalaysia/report 16. Ice cream & Frozen Dessert. Retrieved from http://business.highbeam.com/industryreports/food/ice-cream-frozen-desserts 17. The Food, Beverage and Consumer Products Industry (2008.) Retrieved from www.pwc.com/us/en/retail-consumer/assets/2008-gma.pdf 18. Lecka-lecka Promotion Websites Everyday. http://www.everyday.com.my/coupons/kl/Lecka-Lecka.htm Dealmates. http://www.dealmates.com.my/deals/May-LeckaLecka-RM20 MyStyle.http://www.mystyle.com.my/v3/sub2.asp?

menuid=11&pageid=9&newsletterid=156&newsletter=show Food Promotions. http://www.foodpromotions.com.my/2011/02/lecka-lecka-buy-1-

free-1-triple-scoop.html Hahah. http://hahah.com.my/deal.missedout.php?mid=35 Groupon. http://www.groupsmore.com/cities/3/deals/lecka-lecka Lecka-lecka Gelato Ice Cream | 69

Chapter 12 Appendices

12.1 Survey Question

i. Part 1: Consumer Profile 1. What is your gender? Female Male 2. What is your age group? 12 17 years old 18 23 years old 24 29 years old 30 and above 3. What is your income/salary? RM100 RM500 RM500 RM1,500 RM1,500 RM3,000 RM3,000 and above 4. Where do you live? Within Selangor & Kuala Lumpur Outside of Selangor & Kuala Lumpur 5. What is your nationality? Local International ii. Part 2:General understanding of Ice Cream 6. Are you a fan of ice cream? Yes No 7. How often do you eat ice cream? Once in a week Several times in a week Once a month Several times in a month Once every few months 8. What is your favorite brand? Baskin Robbins

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Hagen-Dazs Walls Lecka-lecka Tutti Fruity Others (please state): __________________

9. Why do you eat ice cream? (Give your reason) ________________________________________________ 10. What points do you consider when buying an ice cream? (select more than one answer) Brand Taste & flavors Quantity of ice cream Price range Ingredients used Advertising & promotion Attractiveness of packaging 11. Which is the ideal price range of ice cream you will spend on? RM3 RM6 RM7 RM12 RM13 RM 25 12. Do you think ice creams are healthy? Strongly agree Agree Neutral Disagree Strongly disagree 13. Are you familiar with healthier choice of ice creams? Yes No iii. Part 3: Lecka-lecka Brand Awareness 14. Have you heard of Lecka-lecka? Yes No 15. How did you hear about it? Print media (magazines, newspaper, flyer, etc) Digital Media (social network, online promotion, blog reviews, etc) Recommendation from friends & families I have never heard of it 16. Are you aware of the health benefits of Lecka-lecka? Yes

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No

17. Do you know that Lecka-lecka serves Italian ice cream that is 99.9% fat free for fruit-based,
94.9% fat free for milk-based and sugar free for soy-based gelatos and sorbets? Yes No 18. In your experience, please rate the quality of Lecka-lecka. (for familiar customers) Poor Average Good 19. If given an option, which part of Lecka-lecka do you want to see improvement on? Advertisement & promotion Packaging More flavors Number of outlets 20. Based on your experience so far, will you return for more Lecka-lecka? (for familiar customers) Yes No 21. Based on your understanding so far, will you want to try Lecka-lecka? (for unfamiliar customers) Yes No iv. Part 4: Lifestyle Views 22. Are you conscious about the type of food you eat that involves your health? Yes No 23. If given an option, which ice cream do you prefer? Normal ice cream Healthy ice cream 24. Among all ice cream packaging, which one do you think is the most visually attractive without paying attention to the brand name? Baskin Robbins Hagen-Dazs Walls Lecka-lecka Tutti Fruity Others (please state): __________________ 25. Does the choice of ice cream reflect your lifestyle? Yes No

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