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n 1986, the first Gardenia loaf was produced in Malay- sia. By 1990, the brand had become the leading supplier in Malaysia, prompting the
n 1986, the first Gardenia loaf was produced in Malay- sia. By 1990, the brand had become the leading supplier in Malaysia, prompting the business to open its own fully automated factory the following year. The incredible demand had to be met with a huge increase in production. In 1991, the new factory line could produce 6,000 loaves an hour. By 1994, this had increased to 10,000. Today, there are six fully automated lines producing 900,000 loaves each day. This makes Gardenia the big- gest fresh bread producer in South East Asia. One of Gardenia's primary suppliers was the Federal Flour Mills (FFM). In 2012, with Gardenia switching suppliers, FFM responded by promoting their own rival brand Massimo. At the same time, an online campaign was launched to urge Malaysians to switch brands from Gardenia to Massimo. FFM was quick to point out that they were not behind the Facebook and email campaign. The other factor made clear in the campaign was the fact that Massimo was significantly cheaper than Gardenia. The standard- sized white loaf was the same price, but whilst Gardenia's longer white was RM0.05 cheaper, their wheat germ was RM0.70 more expensive. Behind the pricing and the commercial competition, Competition in the Malaysian bread. market is heavily based on brand image. 14571 HIGH UTAR BHT OOTAL there was another angle. Gardenia was accused of terminating their purchases from FFM on the grounds of race, an accusation that was impossible to prove and one that Gardenia strenuously denied. Whatever the reason for the change, Malaysian consumers found themselves faced with a clear choice for the daily loaf. Ulti- mately it would be a decision based on taste, not race or any adver- tising messages. Gardenia is associated with quality and freshness. It is a brand that is very important in Malaysia. One of the key brand values is to ensure quality and at the same time reliability in its distribution channels. This is important because Gardenia is a staple food product, and consumers have come to rely on its availability. Strangely, Gardenia can actually trace its history back to America and not Malaysia. In 1969, Horatio Sye Slocumm arrived in Malaysia to open a bakery for the International Executive Ser- vice Corps. Slocumm was an accomplished baker with 35 years of experience behind him. The ultimate result was Gardenia, and to this day, the brand proudly states that their bread is still made to the original recipe. What is particularly interesting about the bread wars is Robert Kuok. Kuok owns FFM. When Gardenia switched flour suppliers to the Malayan Flour Mills and the Prestasi Flour Mills, he was left with the stark realization that his largest cus- tomer was lost. Kuok responded by acquiring the Italian-based Massimo franchise in order to create his own bread company using his own flour. According to Forbes, Kuok is the richest man in Malaysia. He has a commodities background. Certainly, until the end of 2011, Gardenia had a 90 percent market share in Malaysia. Their share of the packaged bread market fell to 65 percent in 2016. Over the decades, they had changed the perceptions and taste of the consumer to accept, in essence, a mass-produced product.. What is clear is that Massimo is here to stay and has a battle on its hands to win market share. Armed with the advantage of using the very same flour which was a constituent part of Gardenia for so many years, it is already winning support. Gardenia has seen a drop in its market share; understandable in the circumstances when the full weight of Kuok's business empire and commercial knowledge has been thrown behind FFM.46 2-35. Provide an analysis of the Gardenia brand. What factors shape perceptions of the brand in the eyes of Malaysian consumers? 2-36. What brand problems did the Massimo brand create for the Gardenia brand? 2-37. How might social media affect perceptions of both the Gar- denia and Massimo brands? 2-38. Do you think the efforts made by Robert Kuok were the most effective ways to launch the brand? Defend your answer. 2-39. Going forward, what tactics would you use to maintain and build the Massimo brand?
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