UNIVERSITI TEKNOLOGI MARA CAWANGAN KELANTAN

KAMPUS MACHANG

MKT 243
FUNDEMENTALS OF MARKETING

TOPIC:
LOCAL FRUIT-BASED CAKE

CLASS:
D1BA1112D

PREPARED BY:

NAME NO. MATRIKS

FATIN NABILAH BINTI ZAIFULDIN 2020874472
NURUL AIN BINTI ZAIDI 2020861216
NUR AFIQAH BINTI MUHAMMED YUSOF 2020860586
NURAIN NATASHA BT MOHD KHALID 2020607646
NURUL ASYIQIN BINTI ZAHALID 2020479112
NURAIN AISYAH BINTI MOHD ZIN 2020603542

PREPARED FOR:
MADAM NUR SYAQIRAH
TABLE OF CONTENT

PARTICULAR PAGES

1.0 Introduction: 1
1.1 Group’s objectives

2.0 Company’s profile:

2.1 Company’s background
1-6
2.2 Company’s competitors
2.3 Types of consumer buying decision and consumer involvement
2.4 Marketing management philosophies

3.0 Product concept:

3.1 Company’s product
7-11
3.2 Type of consumer product
3.3Product items, product line and product mix

4.0 Market segmentation:

4.1 Types of segmentation
11-12
4.2 Strategies for selecting targeting markets
4.3 Positioning

5.0 Channel structure:

5.1 Type of marketing channel
5.2 Level of distribution intensity
5.3 Retailing 13-14
5.3.1 Types of stores
5.3.2 Non-store retailing

6.0 Promotion:
6.1 Promotion strategies
14-17
6.2 Advertising- Media Types
6.3 Public relations- Major Tools
6.4 Sales promotion- Major Tools

7.0 Pricing: 18
7.1 Pricing objectives
7.2 Pricing strategies

Conclusion
8.0 8.1 Achievement
8.2 Limitation
18-19
8.3 Learning experience

9.0 Recommendation:
9.1 Plan of business 20
9.2 Business improvement

10 References 20

11 Appendix 21
1.0 INTRODUCTION

1.1. Group’s objectives

As we do this assignment, we want to see and test the extent of our

understanding of the subject of MKT 243. We hope we can apply everything we
have learned in class as best we can. At the same time, we want to improve our
understanding and knowledge of this subject. We hope we can complete this
assignment as Madam Syaqirah wants and expects.

2.0 COMPANY’S PROFILE

2.1 Introduction

Localit Bakery is a bakery in Malaysia that offers cakes, cupcakes, and jams
based on local fruits because we see in the market there are still no bakeries that
focus on the product that uses these fruits. This is what sets us apart from our
competitors and is our speciality. Additionally, we also want to raise the local fruits
fame not only among Malaysian but also among foreign tourists. The owner of
Localit Bakery, Nurul Ain Zaidi, saw that many bakeries use foreign fruits and offer
cake flavours based on western flavours in Malaysia. Because of that, she wants
to create a bakery that uses local fruits such as guava, mangosteen, mango,
pandan coconut, and so on in its products. She wants to make local fruits the
pride of her shop. Therefore, the phrase “Our Fruits Our Pride” has been used as
our business motto. After many efforts such as planning, research and
development, and more, the Localit Bakery was built. The Localit Bakery has
officially open and starting operations on February 2020 at 3, Jalan PJS 11/15,
Bandar Sunway, 46150 Petaling Jaya, Selangor. From then on, we offer a variety
of original and unique local fruit-flavoured cakes, cupcakes, and jams that
symbolize Malaysia to our customers.

Behind Our Name

LOCALIT BAKERY

Localit is a name that we came up with by combining the word Local and "Calit" which was
taken from the Malay language. The word local represents the ingredients that we used
which are local fruits and the originality of Malaysian taste that we want to deliver to our
customers. The word "Calit" indicates that we not only offering cakes and cupcakes but also
various flavours of local fruits jams that can be eaten with a lot of other desserts or being
used in making desserts. Additionally, it is also to shows that our desserts are so tempting

1
that you cannot help but to "calit" it to have a taste. The word Localit can also be
considered as the word Local plus Lit combined. Just like the simplicity of its name, we
straight up wanting to say that "Local", or local fruits are "Lit".

 Our Logo

This is our bakery’s logo

 Vision
To be a bakery that can symbolize the speciality and uniqueness of Malaysia using local
fruits through our desserts in Malaysia and the eyes of the world.

 Mission
Localit Bakery wants to bake and provides scrumptious desserts using the best quality of
local fruits. We aim to able represent Malaysia’s uniqueness through our desserts in the
eyes of the world.

 Objectives
We will:

I. Always striving to improve our skills and knowledge in our field so that we will offer
only the best for our customers.

II. Produces and offers a variety of dessert flavours using local fruits to satisfy the
tastes of more people regardless of their background.

III. Deliver the best customer service and professional communication experience
for our customers.

IV. Always make sure we meet the demands of our customers.

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 Organization’s Chart

Nurul Ain

(Owner)

Nurain Natasha Nurul Afiqah Nurain Aisyah Fatin Nabilah

(Production Baker 1) (Production Baker 2) (Specialized Chef) (Counter Staff)

Nurul Asyiqin

(Baker Assistant)

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2.2 Company’s Competitors

 SECRET RECIPE’S SWOT ANALYSIS

INTERNAL EXTERNAL

STRENGTH OPPORTUNITES
 This is a well-known local  They have the opportunity to
bakery that has dominated the expand their market to India and
Asian market for 24 years. Now, New Zealand.
they have 440 branches across  A good relationship between
POSITIVE
Asia. Secret Recipe and its suppliers
 Their branches are like Anchor Food Professional
concentrated in urban areas Malaysia guarantees dairy
where they are usually in malls. products such as cream cheese,
therefore, the facilities provided butter, and more. In addition,
to the customers are more having good relationships with its
comfortable and better than partners, such as the Lion & Lion
other competitors digital network in Malaysia,
allows them to grow their
business through social media.
WEAKNESSES THREATS
 Bakeries with poorly trained  The decline in economic trends
staff in customer service ethics due to covid-19 is causing
causing them to be infamous for businesses to have less demand.
bad services. As a result of diminishing in
 Its location also makes it difficult consumers' income.
NEGATIVE for rural residents to go to one  The nature of consumers where
of their branches. they want to try new products can
also be a threat to them. This is
because they rarely come up with
new products. this can cause
them to lose customers to their
competitors.

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  VICTORIA BAKERY’S SWOT ANALYSIS

INTERNAL EXTERNAL

STRENGTH OPPORTUNITES

 Employees are well  Their competitors may be slower to

trained and participate in create a new product cake to produce
every program manage by than them.
their managers so that
POSITIVE employees can provide
friendly service to
customers.
 The organization has
strong ethical values and
an ethical mission
statement.
WEAKNESSES THREATS
 Lack of capital, where  The decline in economic trends due to
Victoria bakery all start-up covid-19 is causing the business to be
funds will come from less in demand. This is a result of the
NEGATIVE loans and investors. decrease in consumer income.
 Unattractive locations  Now, many people want to own a
because they are hidden bakery. This leads to an increase in the
and difficult for people to number of their competitors which, is
see. one of the threats to the business.

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2.3 Types of Consumers Buying Decision and Consumer Involvement

Our company types of the consumers buying decision are limited-decision making.
For instance, buyers will first make a comparison between our products guava cake with our
big competitors in selling cakes namely Secret Recipe and Victoria Bakery. They do so
because they want to choose the best cake that can satisfy their tastes. Apart from that, the
price of guava cake which is worth RM49.00 for 500 grams while RM9.49 for a piece of cake
makes a limited decision is our types of consumers buying decision because our product low
to moderate cost goods. In addition, our product guava cake is often bought by customers
regardless of the time and usually, they already know what kind and what flavour they want.
For example, our cakes are often purchased for weddings, birthday parties, large-scale
events, product launches, and so on. Our cakes will be even more popular when the school
holiday season arrives as many weddings are held at that time.

2.4 Marketing management philosophies

Our marketing management philosophy is sales. Not only are sales to the final buyer
emphasized, but intermediaries are also encouraged to push manufacturers’ products more
aggressively. To sales-oriented firms, marketing means selling things and collecting money.
An example that can be linked here is that a customer server can convince a customer to
buy our product by telling what the advantages and specialities are on our cake. In this way,
they will be interested in buying our products indirectly collecting money and increasing
sales.
In addition, we will also vary our products by producing various types of local fruit cake
flavours other than guavas such as mangosteen, papaya, durian, and watermelon flavoured
cakes. This will make our products more unique because they are different from others and
can indirectly elevate local fruits in Malaysia. Buyers will be asked how this cake tastes and
looks because they have never seen it before. So, they will not think long and continue to
buy it.
However, in marketing the fundamental problem with a sales orientation also can occur, as
with a production orientation, is a lack of understanding of the needs and wants of the
marketplace. For example, even if the quality of their sales force is good but the product

6
produced is not wanted or needed by the buyer indeed the effort is in vain because they do
not meet the taste they want. So, Localit Bakery will do its best to prevent this from
happening.

3.0 PRODUCT CONCEPT

3.1 Company’s Product

Localit Bakery has three product lines which are fixed product, local mixes and
fusion. Fixed product is a product that will remain sold at the Localit Bakery. Local mixes are
a mixture of two local fruit. Next, fusion is a mixture of local and foreign fruits. For local mixes
and fusion, Localit bakery will sell according to the fruit season or within three months the
Localit Bakery will change the type of flavour to a new flavour. Fixed product has three types
of products which are cakes, cupcakes, and jams. For example, we have guava cake,
mango cake, banana cake, mangosteen cake durian cake, guava cupcake, banana
cupcake, papaya cupcake, banana jam and dragon fruit jam. Local mixes have two types of
products which are cakes and cupcakes. For example, mangosteen with durian cake,
coconut with pandan cake, lychee with rose cake, honeydew with guava cake, mangosteen
with durian cupcake, coconut with pandan cake, lychee with the rose cupcake and
honeydew with guava cupcake. Next, fusion also has three types of products such as cakes,
cupcakes, and jams. For example, banana strawberry cake and cupcake, apple guava cake
and cupcake, watermelon and mix berries cake and cupcake, lychee with mango cake and
cupcake and strawberry banana jam. Localit Bakery using different flavours in making its
products. The main cake sells at Localit Bakery is guava cake. The ingredients for guava
cake are flour, sugar, egg, butter, salt, milk, vanilla extract, baking soda, guava fruit and the
secret ingredient.

This is our fixed product:

Guava cake (main cake) Mango cake Guava cupcake

This is our latest product item under local mixes and fusion:

7
Coconut with pandan cake Banana Strawberry cupcake Strawberry Banana jam

Product benefits from Localit Bakery are we use fresh fruit to make our product.
When using fresh fruits, the taste will be more delicious compare to if we use aged fruits. It
will make our product more quality. Besides, we also sell our cakes at very reasonable
prices. For example, the price for guava cake is RM40 for 500g and slices of cake is
RM9.49. Next, Localit bakery sells a halal product. We will make sure our product clean,
fresh, and use halal ingredients. So, Muslim customer does not have to worry to buy our
products because we sell halal cake. Sometimes, cake shop uses gelatin as their ingredient,
gelatin is not halal so it will make customer afraid to buy. But if customers buy a cake from
Localit Bakery they no need to worry anymore because we sell halal cake. Localit Bakery
also owned by a Muslim.

 Branding

The main purpose of branding is for identifies our products and differentiates them
from our competitors. Product identification is the most important objective because it
makes it easier for customers to get to know our products. We used Localit Bakery as our
brand because Localit is a combination of the word Local and “calit” which was taken from
the Malay language. Localit Bakery sells various types of sweets such as cakes,
cupcakes, and jams made from local fruits. By using Localit, we could introduce and
acknowledge people about the product we sell is from local fruit. When we have a brand,
we will get repeat sales from customers who have bought our products. They will
remember the brand they once bought.

 Trademarks
The trademarks we use are “Our Fruits Our Pride”. The purpose of the trademarks
is because we want to make customers always remember our product. When they think

8
about local fruit, they will remember our local fruit cake and local fruit jams first compare to
other competitors. Most competitors selling cake using import fruit and also use cheese as
their main ingredient so it will make our customers always remember Localit selling local
fruit. By using the trademarks “Our Fruits Our Pride” it will make them feel proud when
they buy our product because we using local fruit as the main ingredient.

 Labelling
For our product, we use informational labelling and persuasive labelling. The
purpose of informational labelling is for helps our customers to make proper selections. It
will help to make lowers cognitive dissonance among customers. Customers will buy our
product without hesitation. We put all the important information in our packing such as
nutrition information, ingredient, HALAL logo, and expired date. For the persuasive
labelling, we focus on the promotional theme. For example, we use the “NEW” label in our
product to promote the product.
Ingredients: flour, sugar, egg, butter, salt, milk,
vanilla extract, baking soda, guava fruits

Use before: 15 July 2021

Informative Labeling

Persuasive Labeling

 Packing

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 For packing, we use pink boxes as our packing. We choose the pink colour
because pink symbolizes something sweet like cakes. We do not want to use plastic
because it’s not suitable for cake. We use boxes to protect our cake from being damaged
and easy to storage. By using boxes, we can recycle after use and more environmentally
friendly. Our packing has “Localit Bakery” printed as used to promote our brand. So, when
people see our box, they will know our brand.

3.2 Type Of Consumer Product

Localit Bakery product type is a specialty product. A specialty product is a

particular item for which consumers search extensively and are reluctant to accept
substitutes. The product we sell is various types of local fruit cake also cupcakes and
various types of local fruit jams. Localit products are specialty products because the
cakes, cupcakes, and jams that we sell are different from other competitors. Most of our
competitors sell cakes using foreign fruits such as strawberries, blueberries and
avocados. Localit Bakery sells a variety of flavours that use fruits available in Malaysia
known as local fruit. Localit bakery produces products by mixing two types of flavours,
namely flavours of two typed of local fruit and a mixture of local fruit with foreign fruit. For
example, we have coconut with pandan cake, mangosteen with durian cake, banana with
mango cake, banana with strawberries cake and apple with guava cake. Localit Bakery is
the only bakery that sells mixed cakes from local fruit and foreign fruits.

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3.3 Product Items, Product Line and Product Mix

Product lines

FIXED PRODUCT LOCAL MIXES FUSION

CAKE CAKE CAKE

P
 Guava  Mangosteen with  Banana strawberry
R
O  Mango durian  Apple guava
D
 Banana  Coconut with pandan  Watermelon and
U
C  Mangosteen  Lychee with rose mix berries
T
 Durian  Banana with mango  Lychee and mango
I  Honeydew with
T CUPCAKE CUPCAKE
guava
E
M
S  Guava CUPCAKE  Banana strawberry
 Banana  Apple guava
 Papaya  Mangosteen with  Watermelon and
durian mix berries
JAM  Coconut with pandan  Lychee and mango
 Lychee with rose
 Banana jam JAM
 Banana with mango
 Dragon fruit jam
 Honeydew with
Strawberry banana jam
guava

Product mixes: All products that Localit Bakery sells.

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4.0 MARKET SEGMENTATION
4.1 Types of segmentation

Geographic segmentation is segmenting the market by region of a country or the world,

market size, market density, or climate. For our bakery, we located at Bandar Sunway in Petaling
Jaya, Selangor because near with many companies. That’s easy to get many customers since our
shop only sells a cake there.
Demographic segmentation is segmenting markets by age, gender, income, ethnic
background, and family life cycle. For ages, we focus on all categories since our products are
suitable for minors since did not have any harmful ingredients. For income, the low and the middle
still can afford to buy our products since the price is affordable. Our customers are mostly from
offices, residential areas, and tourist spots, so we are providing lots of desserts that they can
choose from according to their tastes.
Psychographic segmentation is segmenting markets based on personality, motives,
lifestyles, and geodemographics. We choose to be more emphasis on lifestyles. That’s because
mostly our customers are Muslims, so we focus to sell the cake with halal ingredients and
avoid using alcohol such as medium sherry, dark rum, whisky, and brandy in making a fruit cake.

4.2 Strategies for selecting targeting markets

Localit Bakery using multisegmented targeting as our strategy for selecting targeting
markets. A strategy that chooses two or more well-defined market segments and develops a
distinct marketing mix for each. Besides, multisegmented targeting offers many potential benefits
to firms, including greater sales volume, higher profits, larger market share, and economies of
scale in manufacturing and marketing. Yet, it may also involve greater product design, production,
promotion, inventory, marketing research, and management costs. Localit Bakery offers 5 different
fruit cakes such as guava cake, mangosteen cake, mango cake, durian cake, and banana cake
because each targeting a different segment of the market.

4.3 Positioning

 Price and Quality

The prices set by our company are cheap, affordable, and worth it. lower prices than other
stores while the quality of our products is also much better than other stores. our company
guarantees the best quality and guaranteed freshness because all our fruits are taken directly
from the supplier in fresh condition.

 Emotions
In business, we also need to hold a position to advance or enhance the business
capabilities of our store, Localit Bakery. So, among the positions, we took emotion. All human being
has emotions if they see something that interests their point of view. Thus, our store will run an

12
advertisement on television and advertisements at the beginning of every YouTube video so that
people who see the ads will always remember about our store which has a variety of unique cake
flavours even made from local fruits that are in Malaysia.

5.0 CHANNEL STRUCTURE

5.1 Type of marketing channel

Localit Bakery's operating using the direct channel as our distribution channel. Thus, our product will
go directly to our customers without going through any intermediaries. We have made this decision after
considering the pros and cons of all distribution channels available. Firstly, the cons of this channel are it
can be quite costly for us. This is because we have to fulfil the channel intermediaries' functions by
ourselves. Thus, it's going to be time-consuming as we have to undertake a handful of things.
Consequently, we may deviate from one of the most important things to sustenance our product's quality
and the relationship with our customers. Luckily, the owner has some connections that have experienced
in this field, where she can ask for help and refer anytime. So, this can make things smoother for the
business.
Additionally, we may also slip the chance to heighten our market share on our product with the
absence of several distribution channels to broaden our reach. But this is not our main concern as we have
just started. We decided to hold a place in the market first. When we already firmly established in
Selangor, naturally we will widen our target. Lastly, our storage may unable to storing the inventories as
the space available is not spacious enough. Fret not that for this, we will control our inventories cycle so
we won’t face any over or under stocks. We would only discuss the cons as it is something that is to be
concerned with and enough to know that the pros of it overweight the cons where we already came with
the solutions.

5.2 Level of distribution intensity

Localit Bakery's products are exclusive as the customer can only buy them directly from our shop.
This helps us get rid of worrying about the need to manage distribution-related activities and focus on our
stocks and others. With this, we can maintain the management and production efficiency of our business.
Besides that, we will have all the control over our product-related decision, such as the promotion, the
market price, the assortment and more. Thus, we can decide how to build our brand image in the market
without intervention from intermediaries that may negatively affect it.

5.3 Retailing

5.3.1 Types of stores

Localit Bakery is specialty stores which is a retail store specializing in a given type of merchandise.
Narrow product line with a deep assortment within that line. Merchandise is tailored to specific target
markets. Localit Bakery provided a lot of various flavours of cakes, cupcakes and also jam for the surrounding

13
population of various ages. Other than that, maintaining food quality is a main priority for the bakery. We
focus on serving our surrounding customers with high-quality products at a good price. Furthermore, Localit
Bakery focuses on making either one or a small number of baked goods. For example, Guava Cake is our
main cake would be considered a specialty because we specialize in making one type of product particularly
well. Localit Bakery also offers flexibility, because although we will focus on a specific type of product, we
can choose to produce it in either a retail or wholesale setting.
5.3.2 Non-store retailing

We are pleased to announce that we now have our website to facilitate the purchase of our
products online. Apart from that, our store also had an Instagram account with a handle, which we
used to promote our products to make contact with our customers. Via Instagram, we can show and
post the finished cake as an example for customers to make a choice. We use social media
because it allows customers to purchase things that have been recommended by their friends and
mutual acquaintances right away. We also have our website, which allows customers to simply see
our catalogue and order our cake. We also have interesting features and can make it easy for
customers to use them. For example, through a website, customers can store vouchers in the
website. Customers are also easy to see and search for product types because on the website
there is a product type search system. Costumers also can choose the desired product that meets
the desired taste and price on the website.

6.0 PROMOTION

6.1 Promotion strategies (advertising, social media)

The preferred strategy used by Localit Bakery to promote guava cakes is advertising by social
media. Advertising is very important for us because in this way our products will be known by the
public. When our guava cake is known then people will be attracted to buy and then they will take
action to engage with our product and service. Advertising usually includes attractive benefits and
can increase brand awareness. Brand awareness will of course affect the growth of sales figures. In
addition, Localit Bakery uses social media as the main platform in conducting effective promotional
activities. For example, Localit Bakery displays on applications Instagram about the speciality of our
guava cake, which is that this guava cake is very limited because there are not many in the market.
In addition, we are also able to send pictures of guava cake that can amaze customers when they
see it. Localit also has its own YouTube channel that shows how our bakery operates. Our YouTube
channel will display daily activities in our bakery. They could see our cakes being prepared in a
clean bakery making them not hesitate to buy our cakes. Next, Localit Bakery also uses a website

14
that allows customers or readers to research and know a little about our products. For instance,
through the website readers can find out the operating hours, what flavours of local cakes are
provided in our bakery and so on. Other than that, is to add dimensions to the interaction of the
senses of sight, sound, and even movement in digital media. Research shows that activities that
invite this kind of interaction are effective in increasing brand awareness.

6.2 Advertising – Media Types (Billboard and Internet)

The media types used by Localit Bakery in advertising our product guava cake are billboards
and the internet. Advertising that can be done by using billboards is that Localit Bakery will display
interesting designs, colours, shapes, and materials to influence consumer's perceptions and buying
our product. This way, they will be more interested in seeing our ads because they are different
from others and will stand out more than other products from the same manufacturer.
Advertisements will be displayed in the area near our bakery branch to make it easier to find our
location for them to buy after seeing the advertisements that are displayed. In addition, the media
type we use in advertising our product is the internet. As the world becomes more modern from time
to time, the internet has become the main platform in all things, including in business, because
everything can be accessed at your fingertips. Currently, before making a purchase, customers will
search for information about the required product using search engines or social networks. For
instance, Localit Bakery can use the internet as a website, advertising from social media such as
Facebook, Instagram, Twitter, Tiktok and YouTube to promote the product. Furthermore, the cost of
advertising on the internet is lower and more effective.

6.3 Public relations- Major Tools

PRODUCT PLACEMENT

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 Localit Bakery stores do various methods to promote the new product, Guava
Cake. Which is product placement, Guava cake appeared on television during the
broadcast of the TV3 drama at 7 PM. Among the dramas that have the
appearance of guava cake are "Nur", "7 Hari Mencintai Mu", and "Semanis
Senyuman". Guava Cake will appear in scenes that easy to impress the
audience. By using the product placement method, it will be easy to promote our
products through public relations.

In addition, the product placements we use are books and magazine

covers. While nowadays many people have phones and are always
reading books or looking for various tips through online websites,
there are a handful of people who can’t afford a phone until they buy
books and magazines to get the latest news. Our main target is
housewives who want to get tips in magazines related to food recipes,
home management, femininity, and tips to improve family life as it is
easier for them to get a hand on them. So, the Localit Bakery store put
its main product on the cover of the magazine, so many will be
attracted to our Guava cake products. This method is very effective for
reading enthusiasts.

INTERNET WEBSITES
Next, Localit Bakery uses the method of internet website promotion.
Now Malaysia is progressing and everything is at your fingertips.
Almost 90% of the population in Malaysia use the telephone and the
internet. So this method is very effective for promoting new products
from our Guava Cake store. The Localit Bakery website is used to
introduce new products, provide information to the media including
social media news releases, promote existing products, also get
feedback from customers and showcase upcoming Activities. Among
the websites we use for blogs, Facebook and Instagram, it is also a
popular website and is often visited by Malaysians.

6.4 Sales promotion- Major Tools

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COUPON
Localit Bakery chooses coupons as their sales promotion. Localit
Bakery gives customers a 20% discount coupon for every purchase
of RM70 and above. But it is according to the terms and conditions
that the customer must buy cake-type products only. As for the
cupcake and the jam, there is no promotion. We use the electronic
coupon because easier for the customer to redeem it. They just need
to scan the QR code and the discount will be applied immediately. It
is also more convenient for our customers. When using coupon
paper it is quite difficult for customers because the paper is easily
torn. Next. when using an electronic coupon, Localit Bakery can
attract new customers and motivate them to buy our products,
creating the impression that they are getting the most out of their
money.

PREMIUM
Localit Bakery also uses premium methods to promote our product.
Localit Bakery offered that if the customer buys two whole cakes,
they will get one free slice of cake. By using this method, indirectly
we get to promote others cakes’ flavours we sell. This is because
the customers will be interested in other cake’s flavours as they want
to get the free slice of cake even at first, they want to buy one whole
cake only. Many customers will not miss this opportunity.
Thus, got to Localit Bakery increase its sales.

SAMPLING
Localit Bakery also uses sampling as their sales promotion. Localit
Bakery provides a cake taster section where the customers get to
try. When we provide a cake taster to customers, they will continue
to buy it if the cake suits their taste. They no longer have to think
about whether the cake tastes good or not and should they buy it
or not.

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7.0 PRICING

7.1 Pricing objectives

Our company’s pricing objectives are profit-oriented which includes maximizing profits. The
way to maximize the profits made by Localit Bakery is by setting the price up to the largest amount
of revenue possible. The price of our products is placed at the highest level based on the market
price as Localit Bakery is the only seller selling local flavoured cakes in the area. The market price
of our cake for 500g is RM 49.00 while the actual cost to produce it is only RM 25.00. So, the
maximum return obtained by Localit Bakery is RM 24.00. Meanwhile, the market price for a piece of
our cake is RM 9.49 and the actual cost to produce it is RM 5.00, here our bakery gets a maximum
return of RM 4.49. In this way, profits can be maximized and strive to generate as much money as
possible in line with our pricing objectives.

7.2 Pricing strategies

Price skimming is when a high beginning price is imposed to push a market with inelastic
demand to the top. A high initial rate, frequently combined with significant promotion, is used to
attract high-income subscribers. The high initial price attracts a lower market share but quickly
recoups costs. Our cake is priced at RM 49 for 500 grams. The cake sold on the market is priced at
RM 39, but it is just a refraction cake, not a fruit cake. As a result, our price is RM 49 because our
cake is unique and the most recent in the new market. The specialty of our cakes is that we use
fresh fruit directly from the farm and only quality fruit we use. Many people are aware of fruit-based
cakes, but they are unfocused and unwilling to commit to producing fruit-based cakes. Our shop
focuses on the production and sale of fruit cakes, especially local fruit cakes, as not many people
produce them. Our unique product concept means that we focus on local fruits. Maybe other
bakeries also use fruit and sell fruit-based cakes such as banana cake, but our shop uses a variety
of fruits and produces fruit cakes such as guava cake, mango cake, and also fruit mixes such as
coconut cake with pandan, watermelon cake with mixed berries. Our concept is premium because,
as we all know, there aren't many fruit-based cakes available at other bakeries. We choose price
skimming to keep our products premium and fruit-based cakes will work well with these strategies.

8.0 CONCLUSION

8.1 Achievement
We achieve our objectives which want to test our understanding of the subject of MKT 243.
Now, we have been able to elaborate on our assignment what we have understood from the
teachings of Madam Syaqirah. Lastly, we already improve our understanding and knowledge of this
subject and complete this assignment without any problems.

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 8.2 Limitation

Various limitations can be found during completing this assignment. During we carry out the group
assignment, there are some problems and barriers that we need to face which is time arrangement
and limit reference source.

 Time management

This assignment needs us to use time wisely to ensure our assignment can be completed
according to the due date. We are having some difficulties completing this assignment due to many
group assignments that need to be completed and submitted in the same week. Besides, we also
have tests from other subjects so we need to use our time to study. However, with our lecturer
Madam Syaqirah guides, we manage to use the time wisely and finish this assignment according to
the due date.

 Limit reference source

While doing this assignment, we also faced a limited reference source. Most of the references
do not meet our objectives. It causes us to obtain very limited information. Not only that, but we also
need to spend more time finding reference sources that are appropriate for our topic.

8.3 Learning experience

What we get from this assignment is that group collaboration is very important to complete
the project. Our group consists of 6 women with different temperaments, characters, and
personalities, namely Ain, Asyikin, Tasha, Aisyah, Fatin, and Afiqah. Thank God the Almighty, we
can complete this task. Although there are many obstacles during studying online and not meeting
face-to-face, we still managed to complete this assignment without any attitude problem.

We get a better understanding of the topic of the marketing mix, which is 4P's that consists
of Product, Price, Place, and Promotion. We understand more smoothly after completing this
assignment. We also constantly quarrel to make our product choices as well as to divide tasks.
However, we were able to solve this problem by having a good discussion using the google meet
method to gather us and make a unanimous vote. With this experience, we can learn to control this
problem well without fights.

There are many experiences that we can learn through this task, among them is, leadership
attitude is very important for this task. Without a good leadership attitude, good time management,
and so on. We were unable to complete this assignment in the allotted time

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9.0 RECOMMENDATION

9.1 Plan of business

As Localit Bakery finally get a grip of the way on how to operate the business, we desired to
challenge ourselves by broadening our market by opening branches in other regions and states.
Additionally, we hope to have collaborations with other brands by coming up with special edition
products to append buying excitement to our customers. Last but not least, we hope we have the
opportunity to partner with FAMA to obtain the supply of fresh and quality local fruits. This not only
benefits us but the local fruit traders.

9.2 Business improvement

We notice that sometimes there will be a discrepancy in quantity where the number of
produced products cannot fulfil the high demand from our buyer. Thus, we have to find the best
solution, either hire more workers or other options.
Next, keep track of our financial situation. We have a solid grasp of the organization's daily,
weekly, and monthly financial figures and trends. We must devote the necessary time to cash flow
management. If we lack financial expertise, we can hire an accountant while remaining fully
informed.
Finally, make a list of goals that we want to achieve in the future. Setting goals and
objectives are critical to our company's success

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10.0 REFERENCES

10.1 Internet

 https://www.bluefountainmedia.com/blog/top-tips-for-digital-advertising

10.2 Books

 Charles W. Lamb, J. F. (2020). MKTG Principles of Marketing 13e.

11.0 APPENDIX

11.1 Pictures

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