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ARTICLE INFORMATION
ABSTRACT
Publication information
Research article This study was conducted in order to
investigate the marketing strategies of
HOW TO CITE Gardenia Bakeries in Malaysia.
Gardenia is a very well-known name by
Fikri, M., et al. (2022). Marketing the majority of Malaysians. Therefore,
strategies in Peninsular Malaysia: Case the researchers choose this firm as the
study of Gardenia Barkeries Sdn. Bhd. best topic for this case study. Gardenia
Asia Pasific Journal of Management has 4 production plants, 3 in Shah Alam
and Education, 5(1),94-107 and 1 in Puchong, Malaysia. Gardenia's
marketing strategies make the
DOI:https://doi.org/10.32535/apjme.v company have a large market share in
4i3.1430 Malaysia despite having many
competitors. This study was conducted
Copyright@ 2022 owned by Author(s). using data collection which is gathered
Published by APJME from journals and websites. The
researchers also distributed a survey
for this study with 80 respondents
This is an open-access article. taking part in the online survey. The
License: result shows that the customers are
Attribution-Noncommercial-Share Alike satisfied with the product's packaging
(CC BY-NC-SA) and the price.
INTRODUCTION
In 1986, Gardenia Bakeries (KL) Sdn. Bhd. rolled out its first loaf of bread. In just
four years, it had risen to the top of the bread market, with a brand recall rate of 99
percent and a top-of-mind recall rate of 80 percent. Gardenia, based in Shah Alam,
Selangor, produces baked goods. Lot 3 Jalan Pelabur 23/1 is where the
organization is based. This private corporation was established in 1985. The
organization's income is anticipated to be $198 million each year and about 2,500
people work at Gardenia. Gardenia employs somewhat more people than the usual
firm in Shah Alam, with a median number of workers ranging from 30 to 495.
Gardenia currently manufactures a range of baked goods to meet consumer
demand, leveraging its brand power. Gardenia's product line has grown and
changed throughout time, improving with each passing year. Gardenia has
achieved incredible development and supremacy with a unique type of bread-
making, leveraging its brand power and receiving a fantastic response from
Malaysians. Flour, water, salt, and yeast are the primary ingredients of bread.
Biochemical and chemical-physical changes occur throughout the baking process,
affecting many ingredients (Goesaert, et al., 2005). Every single loaf of Gardenia
bread is made using the traditional sponge and dough process. This method of
bread-making allows the dough to grow spontaneously, resulting in a delicious
taste, texture, and flavor. The Original Classic, Gardenia's trademark bread is a
soft and tasty sandwich bread that is a Malaysian favorite. Four slices of Original
Classic have as much calcium as a glass of milk, and the flagship bread has
enhanced throughout time with vitamin and mineral fortification. Gardenia
Breakthru bread is a ground-breaking low glycemic index and low glycemic load
bread created in partnership with a notable dietitian and a panel of local university
experts. It possesses prebiotic qualities and is rich in protein and fiber. Not only
that, the bread has a low carbohydrate and calorie content. The addition of Beta
Asia Pasific Journal of Management and Education (APJME)
Vol.5 No.1, pp.94-107 , March, 2022
E-ISSN: 2655-2035
Https://www.ejournal.aibpm.org/index.php/APJME
Glucan lowers cholesterol levels. The Breakthru bread has even cleared a rigorous
Glycemic Index trial protocol conducted in Washington DC, and acquired the
coveted mark of approval from the Glycemic Research Institute (GRI) as a diabetic-
friendly and diet-friendly meal. One of the marketing strategies that Gardenia uses
in Malaysia is the promotion mix. According to Hedynata and Radianto (2015),
Promotion is an activity aimed at influencing consumers so that they can recognize
the products that the company has put on the market and are then interested in
purchasing the products. Promotion is used to boost demand for a company's
products or services. The promotional campaign goal is to educate, target
audiences to persuade or remind them about the products. According to Rust and
Verhoef (2005), customer centricity highlights the idea that organizations should
recognize that consumers are unique and therefore only market to those
customers who will benefit from the marketing effort. Next, promotional goals
include increasing public awareness, encouraging customers to try out new
products, information provision, keeping long-term customers and others (Gitman,
2018).
market its products. A corporate blog is a blog that is published and utilized by an
organization, business, or other entity to achieve its organizational objectives.
The aspect of the promotional mix is sales promotion as Gedenk, Neslin, and
Ailawadi, (2010) stated that the marketing programs of businesses, sales
promotions play a significant role. Gardenia promoted their products through sales
promotions as well. Gardenia ran a promotion in October 2003 where customers
were needed to gather four empty packaging of Gardenia original classics white
bread to receive one freeload. Finally, this campaign was quite effective in raising
public awareness, which resulted in a huge rise in Gardenia sales. Harris (1993)
stated that public relations actions meant to promote marketing objectives such as
creating awareness, informing and educating target audiences, gaining
knowledge, building trust, offering consumers a reason to buy, and inspiring
consumer acceptance are all examples of marketing public relations. Gardenia had
participated in a philanthropic function with zeal. Gardenia donated bread to flood
victims in Kuala Terengganu in December 2013 and provides free Twigils to kids
on special occasions. Gardenia gets a reputation and becomes more well-known
because of this. Another example is Gardenia, which has been welcoming visitors
since 1991 to share their experience, objectives, and progress with consumers.
Gardenia currently welcomes over 26,000 tourists each year and offers them a free
personal tour of the Gardenia bread plant. During the factory tour, visitors will
receive various tastes of bread for free. Every day, Gardenia provides fresh bread
to approximately 45 charity organizations, including old people's homes,
orphanages, and centers for the disabled. These institutions have been on
Gardenia's distribution list since 1991. Gardenia is also beneficial in the battle
against Malaysia's obesity crisis. It collaborates closely with the National Diabetes
Institute (NADI) on the "Fight Against Diabetes" campaign, which raises public
awareness about diabetes prevention and control.
Gardenia can produce 700 million pieces of bread, cakes, buns hence making it
the largest wholesale bakery in Southeast Asia (QAF Limited, 2015). Demand for
Gardenia has increased dramatically and as a result of this, they have small
warehouses open all over the country. Day after day fresh bread is being made
and stored in the main warehouse in Shah Alam. Then, in the early morning, the
bread will be delivered to a small warehouse. This small warehouse will store bread
in the early morning and will be delivered to the store in the afternoon or evening.
From small shops, all bread will be delivered to the store by truck. This is an indirect
sale to the customer where the bread goes to a small warehouse before they go
to the customer. However, there is a direct delivery truck where the bread will be
directly delivered to the store from Gardenia to nearby stores and shops. Gardenia
delivers fresh toast daily directly to the store or shop to over 23,000 stores.
is more in demand from local vendors or hypermarket-type stores. With this data,
the company can further plan its promotional efforts to increase sales and increase
product presence. Looking at the data, a company can also analyze the causes of
its failure in increasing its sales in several locations. In that case either it can reduce
distribution or increase marketing efforts to build brand awareness.
Gardenia selects convenience stores such as 7 Eleven, TF mart, and Speed mart
to distribute their products. This is because convenience stores have many chain
stores in Malaysia. This convenience store is also the store of choice for the
community in Malaysia. Most customers will also choose a convenience store like
this to buy the latest food products from various food brands. Gardenia which
markets its products here also pays attention to customers to choose their bread
products, especially new products released.
Gardenia’s product will also be on online store websites such as Lazada and
Shopee. E-Commerce platforms continue to grow in Malaysia and another
developing countries (Escursell, Llorach-Massana & Roncero. 2021). Moreover,
online shopping has increased due to the global pandemic of Covid-19 (Kim,
2020). with the online store, customers do not have to go to the store to buy goods.
so this will encourage customers to buy the product at home. The online store will
be equipped with all things about Gardenia products such as packaging photos,
references of product ingredients, flavors, and much more related to the product.
Therefore, customers can find out about product information in the online store.
Moreover, by using this method, Gardenia products will be wider to reach beyond
the geographical area.
LITERATURE REVIEW
In order to get the largest market share, the company should pay attention to
putting the best price tag on its product. Price is one of the most dynamic parts of
the marketing mix, influencing a company’s profitability and cost-effectiveness
directly and in the short term (Simon, Bilstein & Luby 2008). Therefore, price is
critical for a buyer to decide. It also has a significant impact on a company's market
share and profitability. It can also be used to strengthen client relationships and
increase consumer value (Kotler & Armstrong, 2011). As for Gardenia's pricing
strategy to identify appropriate pricing levels to be practiced by the company,
competition-based pricing uses as important information rivals' price levels (Liozu &
Hinterhuber, 2012).
Gardenia also uses the great color combination for its product packaging as stated
by Singh (2006), color is an excellent source of information, with estimates ranging
from 62 to 90 percent of people's assessments and evaluations being based just on
color. The impact of color contrast on customers' attentive behaviors was
investigated, and it was discovered that simultaneous color contrast had a
substantial impact on consumers' attentive behaviors, perceptions of product quality,
aesthetic attractiveness, and purchase intention (Bix, Seo, & Sundar, 2013).
Gardenia’s product packaging is known for the combination of white, blue, and red.
This follows the suggestion by Crowley (1993) that designers can utilize more
stimulating colors like red and blue to entice customers to make impulse purchases.
Celebration, passion, strength, energy, love, excitement, and ambition are
associated with the red color. Mohebbi (2014) says that youth, sterility, light,
reverence, truth, and purity are associated with the white color. Depression, serenity,
trust, confidence, reliability, wealth royalty, truthfulness, and creativity are all
associated with the blue color.
RESEARCH METHOD
Asia Pasific Journal of Management and Education (APJME)
Vol.5 No.1, pp.94-107 , March, 2022
E-ISSN: 2655-2035
Https://www.ejournal.aibpm.org/index.php/APJME
To perform a study of Gardenia’s brand from the public perspective to know the
effectiveness of its marketing, there are a few ways of collecting data. To
comprehend the study's premise, the researchers looked at a variety of papers,
websites, and journals. The researchers also distributed a survey for this study with
the information that have been gathered. The findings and conclusion are based
on marketing strategy. The researchers collect the data from consumer
perspectives about Gardenia through the survey online using the Google Form.
The results show the position of the Gardenia brand in Malaysia through
consumers' eyes. The questionnaires were distributed to 80 respondents using the
Google Form link, the link available in WhatsApp and Telegram to approach the
consumers. Using this strategy, Gardenia consumers were able to provide
information about the company's reputation in the Malaysian market.
The online survey used is the primary data for the study, the major part of the
discussion is using data that the researchers collected using that method. There
are two parts to the online survey with each table are listed down. In the first part,
the respondents were asked about their demographics. The second part comes
with 8 questions to know about consumers’ opinions about Gardenia’s product.
The online survey was open o all consumers from different backgrounds. The
consumers are mainly from Malaysia even though the researchers did not specify
the nationality and the majority of respondents are among the youth. This is the
only method to collect the primary data from the consumers.
The secondary data were sourced from various websites, journals, and papers.
The researchers also collected the information from Gardenia Malaysia’s and
Singapore’s websites to collect relevant data about the company. The researchers
cited the Gardenia Singapore website to know more about this company's
background because this company is originated from that country. From these
various resources, the researchers gathered various information about Gardenia’s
marketing strategies in Malaysia.
RESULTS
Ethnicity
Malay 77 96.3
Chinese 1 1.2
Indian 1 1.2
Others 1 1.2
Nationality
Citizens 80 100
Not a citizen 0 0
Permanent Resident 0 0
Occupation
Working 8 10
Not Working 5 6.3
Student 67 83.8
Average Income
RM500 and below 62 77.5
RM600 – RM1,500 8 10
RM1,600 – RM2,500 8 10
RM2,600 and above 2 2.5
The majority of Malaysian respondents (96.3%) were Malay, while Chinese and
Indians accounted for 1.2% both. There is only one person who is not Malaysian,
Chinese, or Indian, namely Idahan. Idahan is an indigenous ethnic group found in
Sabah and lives around the Lahad Datu district on the east coast of Sabah,
Malaysia (Wikiwand, 2021). This may be because the Chinese and Indians are
most likely to prefer to buy bread and pastries from other brands. Usually, if the
people of Sarawak and Sabah return from the Peninsula, they will bring a large
supply of Gardenia brand bread as handicrafts or for themselves (Kedung, 2020).
The reason is that the people of Sabah and Sarawak find it difficult to get Gardenia
bread in their place. The researchers can conclude that the Malays are regular
consumers of Gardenia products.
Asia Pasific Journal of Management and Education (APJME)
Vol.5 No.1, pp.94-107 , March, 2022
E-ISSN: 2655-2035
Https://www.ejournal.aibpm.org/index.php/APJME
Based on the data above, the majority of the responders are students with no
income who buy Gardenia items regularly. Because the majority of the
respondents are students, 83.8% of them have no income. However, 10% of
respondents have income or are now employed, while 6.3% are not working. Only
2 of the respondents reported having earned more than RM2,600 per month. As a
result, the consumer sector in this survey is primarily made up of young adults who
rely on allowances or unearned money to get by. Gardenia items are also
reasonably priced, allowing these young adults and teenagers to select to enjoy
Gardenia's products. Apart from its popularity among Malaysians, this shows that
more consumers are choosing Gardenia products.
Good 73 91.3
Not Good 0 0
Need Improvement 7 8.8
DISCUSSION
Based on the results of the survey above, we found that 96.3% of the respondents
are mostly purchasing bread, and only 2 out of 80 respondents (2.5%) purchase
spread. The least option is muffin cake with only 1 respondent. It shows that
consumers are more likely to buy bread because Gardenia is better known for the
high quality and deliciousness of their bread. Besides, Gardenia has its song to
convince customers of their bread which is “So good...you can even eat it on its
own” (Gardenia Bakeries, 2021). All customers (100%) reported that they liked
Gardenia products because Gardenia provides consumers with affordable prices.
About 87.5% of respondents agreed with this statement and without reducing the
quality of the product. This means consumers are willing to pay the price offered
by Gardenia for every product they sell. Most importantly for Muslims is because
“all Gardenia products are certified Halal by JAKIM.” (Gardenia Bakeries, 2021).
From the data, the researchers can analyze that Gardenia is very well known by
all races in Malaysia because Gardenia is a popular brand.
Based on the data above, the table on how consumers think about Gardenia
product’s packaging shows that 91.3% of respondents agreed that the packaging
is good and none of the respondents think it’s not good. Secondly, 7 respondents
think that Gardenia product’s packaging needs improvement. Therefore, it can be
concluded that most consumers are satisfied with the packaging of Gardenia
products.
CONCLUSION
In conclusion, the data that have been collected were used in this study. Gardenia
also has to implement an effective marketing strategy in promotion, distribution,
and price to earn a big market share in Malaysia. The goal of this study is to
discover the determinants of the marketing of Gardenia Bakeries Sdn. Bhd.
Besides, the data analysis shows that customer satisfaction with Gardenia
products is good because most consumers are satisfied with the products offered
by Gardenia Bakeries such as products packaging and product price. Also,
consumers often purchased Gardenia products especially bread because
Gardenia is the largest bread production in Malaysia. So, the demand for gardenia
products is the highest demand for bread in Malaysia. Malaysians prefer to get
Gardenia products compared to other products because this product has gained
the trust of society. Other than that, Gardenia products that are better known will
be manufactured by small manufacturers in producing the product and sold at a
lower price. It is suggested that Gardenia should maintain and improved the quality
and marketing strategies to get more loyal customers in the future because
retaining existing users is simpler than attracting new ones.
The study has provided useful insights into customer behavior and advice for better
understanding and improving customer satisfaction. However, due to the Covid-19
pandemic, questionnaires were conducted using Google Forms online. It was
difficult to collect more responses since many people did not want to do the online
survey and were mostly not interested to do it. However, the purpose of this study
was fulfilled according to the analysis of responses from 80 Malaysian
respondents. As a result, future researchers interested in examining Gardenia
product information and identifying customer satisfaction characteristics will benefit
from the findings of this study.
Asia Pasific Journal of Management and Education (APJME)
Vol.5 No.1, pp.94-107 , March, 2022
E-ISSN: 2655-2035
Https://www.ejournal.aibpm.org/index.php/APJME
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