Food & Beverages industry Gardenia Bakeries (KL) Sdn.

Berhad

TABLE OF CONTENT

PAGE

1.0 INTRODUCTION

2.0 COMPANY BACKGROUND

3.0 SEGMENTATION, TARGETING AND POSITIONING

3.1

SEGMENTATION

3.1.1

PSYCHOGRAHIC FACTORS

3.1.2

DEMOGRAPHIC FACTORS

3.2

TARGETING

3.3

POSITIONING

4.0 MARKET ENVIRONMENT

4.1

COMPETITIVE FACTORS

4.2

ECONOMIC FACTORS

4.3

POLITICAL AND LEGAL FACTORS

4.4

TECHNOLOGICAL FORCES

10

4.5

SOCIOCULTURAL FORCES

10

5.0 MARKETING MIX

10

5.1

PRODUCT

11

5.2

PLACE

14

5.3

PRICING

16

5.4

PROMOTION

18

6.0 CONCLUSION

21

7.0 REFERENCES

23

1.0

INTRODUCTION

In this assignment, we will focus about the marketing strategies of Gardenia

Bakeries (KL) Sdn. Bhd (Gardenia) in the consumer market. Although Gardenia Bakeries
launch a lot of products in South East Asia, here we will only focus on products and
marketing activities done by Gardenia Bakeries in Penisular Malaysia. We are going to
analyse the marketing strategies by Gardenia Bakeries such as how Gardenia Bakeries does
it market segmentation, targeting and positioning. Segmentation, targeting and positioning
helps Gardenia Bakeries to find out which area or segment should the company focus in.
Besides, we will also look at its marketing environment that plays an important role in
implementing marketing activities.

Next, marketing mix like place, product, price and promotion are also the core and
most important element. At the end, we will be able to know more about how Gardenia
does its marketing activities to overcome the highly competitive environment and remains
as the biggest bakery or breads manufacturer among its competitor such as Massimo and
Appolo. The aim of doing this analysis is to help us to find out what actually is marketing
and how Gardenia manages to remain as the strongest brand in the highly competitive
environment and to be different among all other competitors with different strategies, plans
and ideas.

2.0

COMPANY BACKGROUND

Gardenia Food Industries (Gardenia) is a multinational company that founded in

Malaysia on year 1969 in East Malaysia. Gardenia originaly was founded by an American
named Horatio Sye Slocumm, an employee of International Executive Service Corps. Mr.
Slocumm who had 35 years of baking experience together with Americas leading chain of
bakeries, Gardenia was born successfully. After 45 years of hardship, Gardenia now has
become a Malaysia leading brand of breads manufacturer. Gardenia produced the first loaf
of bread in year 1986. Gardenia became the leader in the bakery market with an
outstanding 99% brand recall rate and 80% top-of-mind recall within 4 years. Gardenias
multiply its products chain through the years, which slowly become better and soon best.

Leveraging on its brand strength, Gardenia now supply a lot of breads to fulfill
consumers demands. Gardenia Food Industries is a group of franchise related companies
incorporated in East Malaysia (Sabah & Sarawak), Brunei Darussalam and the Republic of
Indonesia established for the manufacturing, packaging and trade distribution of Gardenia
Brand bakery ices and creamery products.

S. E. Asias Gardenia Breads and Creameries

1

In 1969, Gardenia Food Industries production of Gardenia bakery ices and

creameries foods was first established in Kota Kinabalu Sabah by its founder Datuk
Wong Tze Fatt with North American bakery technical knowhow provided by Mr
Scy Slocum of Atlanta USA and creamery technical knowhow provided by Mr Jim
Humphries of California USA. Gardenia International Pty Ltd (Singapore) was
subsequently set up in the Republic of Singapore as Datuk Wong Tze Fatts
franchise development arm to promote his Gardenia Brand throughout South East
Asia region.

Since its early beginnings the Gardenia Food Industries (GFI) group of
franchise related companies incorporated in East Malaysia, Brunei Darussalam and
Indonesia were acquired in 2004 by JWPK Holdings and managed as subsidiaries.
GFI remains a group of franchise related companies committed to its founding
principles, with a singular customer driven purpose in responding to popular
demands to produce quality fresh foods locally, which meets with international food
processing and handling safety standards and respective country requirements for
both green and halal certified food handling processes.
1

3.0

http://www.jwpkholdings.com/index.php?option=com_content&view=article&id=89&Itemid=136

SEGMENTATION, TARGETING AND POSITIONING

2

Segmentation, targeting and positioning also known as strategic marketing, it

include determine a suitable segment to market your goods or services, identifying the
correct target market and positioning the respective goods or services to create maximum
profits. The core part of segmentation, targeting and positioning is to find out exactly what

advantages your goods or services give and who will get the most benefits. Segmentation,
targeting and positioning is the most common strategy used by marketers in today world.
This is because it can help them to analyse which target market should they enter and
concentrate in. Besides, this is one of the most accurate tools to help marketer to set their
marketing plans. Furthermore, this is the basic concept to understand the market needs and
develope marketing strategies.
2

Marketing 12th Edition by Charles W. Lamb, Joe F. Hair, Carl McDaniel (2011)

3.1

SEGMENTATION
3

Market segmentation is the process of dividing a market into meaningful,

relatively similar and identifiable segments or groups. The purpose of market

segmentation is to enable the marketer to tailor marketing mix to meet the needs of
one or more specific segments. Gardenia had segmented their consumers into two
main categories which are Psychographic and Demographic.
3

Marketing 12th Edition by Charles W. Lamb, Joe F. Hair, Carl McDaniel (2011)

3.1.1 PSYCHOGRAHIC FACTORS

Known as a factor that divides customers into several sectors

according to their basis of personality, motives or lifestyles, how they carry
out their daily lives and their behavior. First of all, Gardenia focuses on the
psychographic factor in separating the Gardenia markets which is lifestyle.
Therefore, Gardenia focuses on customer who demands for freshness,
convenience, variety and uncompromising taste. Customers nowadays
demand for not just a simple loaf of bread, they also looking forward for a
fresh and convenience bread that they can consume at low health risk and
can get it easily. To fulfil the demands, Gardenia had did its very best to
provide daily baked bread to their customers and have more delivery
channel such as supermarket, grocery shop or even hawker along the road.

3.1.2 DEMOGRAPHIC FACTORS

Known as how marketer will divide the market into categories such
as age, gender, income and ethnic background. Gardenia focuses on age
factor. Gardenia segments their consumer into teenagers, adults and senior
citizen. In doing that, Gardenia provides variety of products to fulfil all
needs. Teenagers which are very energetic will require some source to fight
their hunger and in the same time they are more likely to consume products
with sweet taste. So Gardenia had come out with the new waffle products to
meet their demands. Not forgetting adults and senior citizens that demand
for a healthy diet, Gardenia launch whole wheat fiber bread and the latest
Gardenia Breakthru that contain a high level of vitamins and fiber.

3.2

TARGETING

After Gardenia segmented the market according to the segments, Gardenia

will need to find out its target market. There is no a strategy that can suits all
consumer groups, so Gardenia must able to develop specific strategies for its target
markets to achieve maximum profits in least costs. The targeting strategy used by
Gardenia is differentiated marketing or mass marketing. 4Using a differentiated
marketing strategy, a firm might decide to target several market segments and
designs separate offers for each. Gardenia targets its consumer market by offering
variety of breads and offering. By offering product and marketing variations to
customers, Gardenia hope for higher sales and a stronger position within each
market segment. The disadvantage of using this strategy is Gardenia will face
difficulty in develops and produce new products because it requires extra research
based on each segment it serves. Example of differentiated marketing strategy did
by Gardenia are post advertisement about Gardenia whole wheat bread in
newspaper to target senior citizens and do online advertisement for Gardenia waffle
products that aim mainly teenagers.
4

Principles of Marketing 15th Edition by Philip T. Kotler and Gary Armstrong (2013)

3.3

POSITIONING
5

A product positioning is the way a product is defined by consumers on

important attributes the place the product occupies in consumers mind in relative to
competing products. Gardenia has positioned their products strongly against
competitors products in the consumers minds. For example, Gardenia has its own
song to make consumers remember its bread which is So good...You can even eat
iton its own. By listening to the song, people will think of the convenience of
Gardenia bread that it can be consume directly without any side dishes. Besides,
Gardenia also positions itself as a healthy, fresh and high quality product in
consumers minds. By developing a stronger position within segments, Gardenia
will be able to create more sales and attract more business opportunity.
5

4.0

Principles of Marketing 15th Edition by Philip T. Kotler and Gary Armstrong (2013)

MARKET ENVIRONMENT

A marketing plan usually will be affected by some internal or external factors that
are closely related or indirectly related in the business. Those factors are known as
marketing environment. 6Marketing environment is the forces outside marketing that affect
marketing decisions. Marketer need to be highly sensitive about these factors which will
affect their plans and make them more competitive.
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Principles of Marketing 15th Edition by Philip T. Kotler and Gary Armstrong (2013)

4.1

COMPETITIVE FACTORS

In Malaysia, there are 3 main bakeries which are Gardenia Bakeries (KL)
Sdn.Bhd, Stanson Bakeries Sdn.Bhd (High 5) and The Italian Baker Sdn.Bhd
(Massimo). The Malaysian bread industry are mostly governed or dominated by
these 3 bakeries. They compete with each other through prices, quality, variety
types of products, products characteristics and many more. For example, the white
bread selling by Gardenia was selling at RM2.10, High 5 selling at RM2.80 and
Massimo selling at RM2.50, although Gardenia is selling at the lowest price among
these 3 bakeries, but consumers will choose according to the quality they perceive

for each bakery. For an example, if consumers perceive Gardenias quality is not as
good as Massimo, they might choose Massimo although the price is higher.

4.2

ECONOMIC FACTORS
7

Economics factors are factors that affect consumer purchasing power and

spending patterns. Consumers with different occupations will have different income
levels and thus they will have different spending patterns. For instance, high and
middle income level consumers will demand for a better standard of living, they
demand for good quality products, same goes to foods like bread, although it is a
daily basic need, but for high and middle income level consumers, they will likely
or tend to choose a high quality and features products.

Consumers with higher income will choose those breads which are more
expensive such as Toastem (one of Gardenia products) that offers special features
like raisin oatmeal. On the other hand for low income level consumers, when they
are making decisions to purchase something, they will try to reduce the expenses
incurred, so they may just buy a classics white bread to fulfill their daily basic need.
Hence, a companys marketing plans might be influenced by this economic force.
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4.3

Principles of Marketing 15th Edition by Philip T. Kotler and Gary Armstrong (2013) page. 104

POLITICAL AND LEGAL FACTORS

8

The political environment contains of laws, government agencies and

pressure groups that influence and limit various organisations and individuals in a
given society. Developments in the political and legal environment will definitely
affect marketing decisions. A special Halal Committee is formed at Gardenia to
supervise all aspect of Halal regulations. Officer from JAKIM will conduct a
regular factory inspection to monitor and assure that the overall operations are
comply with the guidelines set by them. Besides, an Independent Syariah Advisor
had been appointed by Gardenia to safeguard their Halal status and refer to in
Syariah related matters.
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Principles of Marketing 15th Edition by Philip T. Kotler and Gary Armstrong (2013) page. 108

4.4

TECHNOLOGICAL FORCES
9

Technology are improving rapidly in this modernisation era. Technology

brings to mind scientific advances such as information technology which is having

resulted in the Internet, cell phone and many more. To improve the producing speed
and bigger market, Gardenia forced to upgrade the technology in the factory. In the
year 1986, Gardenia produces about 3,000 loaves a day without machine. In the
year 1991, Gardenia can produce about 6,000 loaves an hour capacity with using
bread maker machine. In the year 1994, the technology upgrade, Gardenias
machine also upgrade and can produce 10,000 loaves. Now, each of the Gardenias
factories with six fully automated bread lines, each of the factories can produce
more than 900,000 fresh loaves a day. Now Gardenia is the largest bread producer
in Southeast Asia.
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4.5

Principles of Marketing 15th Edition by Philip T. Kotler and Gary Armstrong (2013)

SOCIOCULTURAL FORCES

Sociocultural Forces will influences in society and culture that bring about
peoples beliefs, customs, life styles and many more. For bigger market and more
profit, Gardenia forced to produce a HALAL certified product to the Malay and
Muslim customer. Due to the reason of Malay and Muslims culture is cannot eat
pork. So Gardenia put the HALAL logo on every product. Malay and Muslim
customer saw the HALAL logo then they will buy for breakfast without any
hasitation. With the market of Malay and Muslim people, Gardenia can earn more
profit and plan for future market.

5.0

MARKETING MIX
10

The term marketing mix was first introduced by Neil Borden, the president of the

American Marketing Association in year 1953. The marketing mix are products, places,
prices, promotions, physical evidence, people and partners. Here, we will only cover a few
of them that are more familiar and most used by marketer which are products, places,

prices and promotions. The main function of this analysis is to form a right combination to
meets customers wants and needs.
10

https://en.wikipedia.org/wiki/Marketing_mix
edia.org/wiki/Marketing_mix

5.1

PRODUCT
11

Product is anything that can be offered to a market for attention,

acquisition, use, or consumption that might satisfy a want or need.

need There are 2 type
of product in general, consumer products and industrial product
products. Consumer
product is product bought for personal consumption such as convenient product
while industrial productis product that bought for further processing use such as raw
materials. Products sold by Gardenia are under consumer products category.
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Principles
rinciples of Marketing by Philip Kotler and Gary Armstrong (2005)

Figure 1

Figure 2

Figure 3

Gardenia provides variety goods to suit different age group based on their
market segmentation. Gardenia produced variety of breads such as the Breakthru,
Breakthr
Waffle, Twiggies and many more.. Every product has its own special features and
tastes to suit different age group as segmented by Gardenia in the early stage. For
example, Gardenia produces Squiggles, Twiggies, Toastem, Fluffy Buns and
Quick bites (refer
er to figure 1) that mainly aim for child and teenagers market
because of their sweet taste and use mainly chocolate, vanilla and others sweet taste
ingredient. Besides that, Gardenia also produce Delicia (refer to figure 2) and white
bread (refer to figure
re 3) that target mainly adults market. In doing that, Gardenia
offer those product with lower price and use mainly wheat as main material so that

adults will feel worth buying because those products can fill their hunger. Not
forgetting senior citizens, Gardenia came out with European Cottage Style Bread
(refer to figure 4), Gardenia low fat fibremeal (refer to figure 5) and the latest
Gardenia Breakthru (refer tofigure 6) that are made as healthy products. Those
breads contain Beta Glucan which aids to lower cholesterol level.

Figure 4

Figure 5

Figure 6

Referring to the product level, the core advantage show what the customer is
really buying. For Gardenia, it provides an experience to its customers that they are
not only consuming the breads but also a healthy diet. For example, the latest
Gardenia Breakthru breads contain low Adipose Tissue Fat-Storing Capacity that
assists us in having better control over obesity. It is also Diabetic Friendly which
aids to keep stable blood sugar level that typically follows a meal. All the breads of
Gardenia have no artificial and preservative. Gardenia values its quality by
providing convenience for customers. They offer affordable price for customers
without abandon the quality. Gardenia products are aimed mainly people who need
more conveniences and also looking for a saving plan. As for safety assurance,
Gardenia ensures that the breads are all baked daily and are distribute immediately
throughout Malaysia. Gardenia always store bread in cool dry place and sent their
staffs to attend training at American Institute of Baking and other professional
institutions around the world.

Figure 7

In packaging, labelling and branding its products, Gardenia purposely make

its products packages in a colourful ways to attract teenagers and children. The
entire prices are clearly stated on the package to ease customers make decisions
while purchasing Gardenia breads. Besides, Gardenia has its own brand logo (refer
to figure 7) printed clearly on the package. By doing that, customers can easily
identify Gardenia product even it is a new product. Therefore Gardenia did a very
good effort in creating a strong brand in customers minds. List of gardenia
products available in Penisular Malaysia are European Cottage Style Bread,
Gardenia low fat fibremeal, Delicia, Squiggles, Twiggies, Toastem, Fluffy Buns,
Quick bites, Gardenia Breakthru, and Gardenia original classic white bread.
Meanwhile in East Malaysia, Gardenia launches a lot of products that not related to
bakery such as soft drinks, ice cream and creameries.

To meet customers expectations, Gardenia always ensure that they produce

the best and most quality bread daily. Gardenia is well known of its breads
qualities which are preservative free, no unnatural artificial coloring added and
baked daily and are to send right after packaging. In order to fulfil the increasing
demands for not just freshness but healthy as well, Gardenia is trying its best to
increase the nutrient level contain in the breads. According to a scientific
investigation, an intake of 4 slices of Gardenia white breads is equal to a cup of
fresh milk. Furthermore, Gardenia products also are the Low Glycaemic Index
which contains a lot of proteins and fiber with lower carbohydrate and caloric
attributes.

5.2

PLACE

Place also called Distribution Decisions. It is developing product that can

satisfy customers, but not enough guarantee to successful marketing strategies.
Nowadays people in Malaysia can find Gardenias product in any mini-market,
supermarket (e.g:7-Eleven), hypermarket (e.g: Tesco, Giant) in any corner of
Malaysia.

According the research, all of the supermarket and hypermarket did not have
any specialist to promote it. It is because Gardenias product is the most of the
people like to buy without any hesitation such like thinking which bread the
customer will buy. Gardenias product is any age of the people such as Gardenia
white bread is for any age of the people because all people such as low income and
high income also will choose to buy gardenia because they want convenience and
swift breakfast and will not late for work. Squiggles and Twiggies are for children
and Gardenia Wholemeal bread is for senior citizen. Gardenia sells their product
directly to the reseller such as mini market and supermarket.

According to the survey, Gardenia provides a catalog to their customer such

as the owner of the mini market to book Gardenias product. Some primary school
also place their order through catalog to Gardenia to book breads for students.
Selling through the catalog is for the places that hard to find supermarket or a mini
market such as village or remote area.

Wonder how Gardenia sells their product into village? In the village, there
are some people ride the motorcycle and sell many kind of Gardenias bread (refer
figure 8), they go to find the owner of the shop and ask for the help for booking
Gardenias bread to sell to all resident in village.

12

Figure 8

The Gardenias factory is at Shah Alam, Selangor. They produce the bread
at night until 4 am they will start to send their products to all mini market,
supermarket, hypermarket and many more in Selangor. Mini market such as TSK
segar in Puchong, supermarket such as KK Speedmart, 7-Eleven, hypermarket such
as Tesco, Giant, AEON Big always receive Gardenias products in 8am without
delay. So the final buyers can buy the fresh Gardenias product and feel satisfy.

Actually, Gardenia success in manufacturing products and making them

available to final customers requires building and managing a continuously
evolving value delivery network. Delivery network is a network that made up of the
company, suppliers, distributors and ultimately customers who work together with
each other to improve the performance of the entire system. This network consists
of both upstream and downstream partners. Upstream partners are the set of
firms that supply the raw materials, components, parts, information and finances in
order to create a product.

Most of the convenience stores, which is selling necessary stuff for

customer such as snacks, beverages, shampoo and many more in Malaysia are
selling Gardenias product. The convenience stores are at every corner of shop lots.
For example, every residential place have many of shops, in those shops sure have a
convenience store, in the shop they can buy Gardenias product which the
customers like to buy. The convenience store can call as Reseller.

Most of the people who ride motorcycle to sell Gardenias product always
park in front of the primary school to sell Gardenias product when after school.
Most of the children like Gardenias product such as choc-a-lot, squiggles, twiggies
and many more. The school canteen also selling Gardenias product when the break
time of study.

The hypermarket, which is the target to many kind of segmentation such as

age and so on have a department to sell breads. Housewife like to buy bread
because bread is cheap and economical. Gardenias focus on this situation and sell
their products at the hypermarket. Due to the reason that most of the housewives
have no time to enjoy breakfast because some of their kids go to school early in the
morning such as 7.30 am, so bread is the most easy and convenience for family.

Their competitors such as Massimo and Hi-5 try to reduce the price of their
product to compete with Gardenia. In this case, we can see the competition with
their competitor. Gardenia should have an advertisement about the quality of their
product such as their bread is fresher than other competitors product, this can make
Gardenias market grow bigger.

5.3

PRICING

Price is a value that when you purchase a product and services. Four
elements in marketing mix, price is the only element to produces revenue. Price is
an essential element for buyer choice. It also have important role in a firm market
share and profitability. Besides that, it also can build the customer relationship and
creating the customer value. Gardenia Bakeries is using competition-based pricing
when setting price of bread. 12Competition based pricing involve setting price based
on competitors cost, price, strategic and marketing offerings. Gardenia Bakeries
when setting the price for a kind of bread such as the latest-one Butterscotch,
Breakthru, Delicia, Twiggies and so on. Gardenia will be comparing the product
value with price of product. The price setting must be set between the price ceiling
and floor. Gardenia also has been considering the several of environment when

14

setting prices. Gardenia has set the species price for the reseller and gives the fair
profit, encourage their support and help them to sell the product effectively.
12

Principles of Marketing 14th Edition by Philip T. Kotler and Gary Armstrong (2011) page. 291

This is because if the consumers perceive the price of bread is higher than
the product value so that Gardenia will lose its customer. You can even eat it on its
own is slogan of Gardenia Bakeries Sdn. Bhd. Its mean the bread of Gardenia is
healthy, fresh and convenience.

The Gardenias price is controlled by government. This is because the main

ingredient of bread such as flour which is the one of the product that under controls
by the government in Malaysia. The producer cannot change the price as they like
and they must follow the price given by government. Gardenia when setting price
will considers a few important aspects. First, they must take consider about the
product cost. They also want to consider the price set is giving the profitable for
company and in the same time also want to maximize the customer satisfaction.

Besides that, they also consider about the market demand and market
strategic. The price must be acceptable by everyone and it also must be understand
where the location the bread sold in Malaysia. According in a website survey, the
customers of Gardenia are very sensitive about their product price. Past years,
Gardenia has adjusted the price of bread because of increasing price of flour. The
responses of customer are shown that product price of gardenia are quiet important
in their daily life. Some customer says the increasing of bread price will become
burden in their life. This is because many customer of Gardenia custom eat the
bread in the morning. However, the increasing of price no affects the customer run
off. The customers fast increase because the quality of bread still constant.

The price of Gardenias products is cheaper than theirs competitors such as

Hi-5 and Massimo. Gardenia use psychological pricing to attractive the customer.
The psychological pricing is reference prices, prices that buyer carry in their mind
and refer to when looking at a given product.

13

The reference of price might be

formed by noticing current prices, assessing the buying situation or remember the

15

past price. For example, the price set at RM2.35 and RM2.40 for Gardenia bread.
However the price is difference 5sen, but the study found that the psychological
difference was much greater. Gardenia Bakeries also have giving the discount for
any mini market, supermarket (e.g:7-Eleven), hypermarket (e.g: Tesco, Giant) in
any corner of Malaysia. Gardenia is giving the discount for attractive this middle
man. Every day, lorry of gardenia will be sent the fresh bread on time to the
minimarket, supermarket and hypermarket for make sure the quality of bread. This
action make sure all the final buyer everyday can eat fresh Gardenias product.
13

Strategic Marketing by David Craven and Nigel Piercy (2007) page. 302

When the time of recession, Gardenia careful adjusting the price of bread
because adjustment will affect their demand and burden the household. Gardenia
trying to find the one ways benefits for both the company and consumer. Past few
years, the increasing of raw material forced Gardenia adjusts the price because the
increasing cost of product. However that adjustment of price received some
comment by customer but the customer also can accept because when comparing
with another competitor of Gardenia the price of Gardenia is lower than other.

5.4

PROMOTION
14

Promotion means activities that communicate the merits of the product and

persuade target customers to buy. A good promotion is very important for the
growth of the company. There are so many ways to promote a product. One of the
ways that Gardenia had used to promote their products is advertising. Gardenia
advertises their products through various media like television, radio and
newspaper. Television advertising ia a main media used by Gardenia to promote
their new products as television advertising offers a good mass marketing coverage.
Radio was also used by Gardenia to remind existing customers about their products
as it is low cost. Besides, newspaper is also an effective way to promote or advertise
their new products as it offers good local market coverage and it is able to reach
specific target market.
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Principles of Marketing 11th Edition by Philip T. Kotler and Gary Armstrong (2006) page. 48

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Figure 9

Gardenia also advertises their products through various social media like
YouTube, Facebook Fans Page, Corporate Blog and official website. Nowadays,
most of the people own a smartphone, tablet, laptop, desktop and many more. They
can easily access to these social media via the Internet by simply tapping on their
smartphone. YouTube was used by Gardenia to broadcast its existing and new
products through videos (Refer to figure 9).

By doing so, it makes consumers know more about Gardenia products and
maybe it helps in getting their interest for buying or purchasing the products.
Moreover, a Facebook Fans Page had been created by Gardenia (Refer to figure
10). By doing so, it helps Gardenia to increase their brand and online visibility.
This is because when a user Likes or comment on your post, this action or
information will be automatically posted to the particular users Facebook feed and
in the end, it helps to spread the brand to the users friends.

Figure 10

Gardenia also set up corporate blog (Refer to figure 11) to promote their
products, corporate blog is a blog that is published and used by an organization,
corporation and so on to reach its organizational goals. Gardenia used blog to
provide information on their products, promote their products since it is free-ofcharge and it allows Gardenia to connect with their customers and exchange
feedback which may improve their products quality. Gardenia also set up their own
official website (Refer to figure 12), and their website contains information like
contact number, company background, products information and so on, through
website, consumer can look or find the products that they like or favor among the
variety types of products that Gardenia offers.

Figure 11

Figure 12

Sales promotion is also a way that gardenia used to promote their products.
In October 2003, a campaign was organized by Gardenia which customers are
required to collect 4 empty packaging of the Gardenia original classics white bread
to redeem one free load of Gardenia original classics white bread. Eventually, this
campaign was very successful in creating awareness for the public and this result a
significant increase in the sales of Gardenia.

Lastly, Gardenia also used the public relation to promote their products and
make their brand more visible.

15

Public relation meaning building good relations

with the companys various publics by obtaining favorable publicity and building
up a good corporate image. Gardenia had been actively involved in charitable event.
For example, Gardenia donates their bread to flood victims in Kuala Terengganu on
December 2013 and during special events, Gardenia also contributes free Twiggies
to schoolchildren. By doing so, it helps Gardenia getting well known and gains their
reputation.
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Principles of Marketing 15th Edition by Philip T. Kotler and Gary Armstrong (2013) page. 385

Another example is that since 1991, Gardenia has opened their doors to the
public for visiting them in order to share their journey, aspirations and progress
with customers. Currently, Gardenia had been welcome over 26,000 visitors
annually and take them on a personal tour of Gardenia bread factory which is free
of charge. The visitors will be given free sample of bread during the factory tour.
Gardenia also delivers their fresh bread to over 45 charitable organizations like old
folks homes, orphanages and center for the disabled each day these charitable
organizations have been on Gardenias delivery list since 1991. Gardenia also helps
a lot in fighting the obesity epidemic in Malaysia. It is working closely with the
National Diabetes Institute (NADI) on the Fight Against Diabetes program,
which brings public awareness on the prevention of diabetes and management of
diabetes. This program is very useful and helpful for those people who face or
confront the disease of diabetes. By doing so, Gardenia is not only helping the
public but they are also getting their reputation and getting well known too.

6.0

CONCLUSION

Gardenia had segmented their consumers into two main categories which are
Psychographic and Demographic. Psychographic factors are known as a factor that divides
customers into several sectors according to their personality, lifestyles, their daily lives and
behavior. Gardenia focuses on the psychographic factor in separating the Gardenia markets
which is lifestyle. To fulfill the demands, Gardenia had did its very best to provide daily
baked bread to their customers and have more delivery channel such as supermarket,

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grocery stores or even hawkers along the road. Gardenia focuses on age factor. Gardenia
segments their consumer into teenagers, adults and senior citizen. In doing that, Gardenia
provides variety of products to fulfil all needs.

The targeting strategy used by Gardenia is differentiated marketing or mass

marketing. Using a differentiated marketing strategy, a firm might decide to target several
market segments and designs separate offers for each. Gardenia targets its consumer market
by offering variety of breads and offering. By offering product and marketing variations to
customers, Gardenia hope for higher sales and a stronger position within each market
segment.

Gardenia has positioned their products strongly against competitors products in the
consumers minds. For example, Gardenia has its own song to make consumers remember
its bread which is So good...You can even eat iton its own. By listening to the song,
people will think of the convenience of Gardenia bread that it can be consume directly
without any side dishes. Besides, Gardenia also positions itself as a healthy, fresh and high
quality product in consumers minds. By developing a stronger position within segments,
Gardenia will be able to create more sales and attract more business opportunity.

All the breads of Gardenia have no artificial and preservative. Gardenia values its
quality by providing convenience for customers. They offer affordable price for customers
without abandon the quality. Gardenia products are aimed mainly people who need more
conveniences and also looking for a saving plan. As for safety assurance, Gardenia ensures
that the breads are all baked daily and are distribute immediately throughout Malaysia.

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7.0

REFERENCE
1

http://www.jwpkholdings.com/index.php?
option=com_content&view=article&id=89&Itemid=136

Marketing 12th Edition

by Charles W. Lamb, Joe F. Hair, Carl McDaniel (2011)

Marketing 12th Edition

by Charles W. Lamb, Joe F. Hair, Carl McDaniel (2011)

Principles of Marketing 15th Edition

by Philip T. Kotler and Gary Armstrong (2013)

Principles of Marketing 15th Edition

by Philip T. Kotler and Gary Armstrong (2013)

Principles of Marketing 15th Edition

by Philip T. Kotler and Gary Armstrong (2013)

Principles of Marketing 15th Edition

by Philip T. Kotler and Gary Armstrong (2013) page. 104

Principles of Marketing 15th Edition

by Philip T. Kotler and Gary Armstrong (2013) page. 108

Principles of Marketing 15th Edition

by Philip T. Kotler and Gary Armstrong (2013)

10

https://en.wikipedia.org/wiki/Marketing_mix

11

Principles of Marketing
by Philip Kotler and Gary Armstrong (2005)

12

Principles of Marketing 14th Edition

by Philip T. Kotler and Gary Armstrong (2011) page. 291

13

Strategic Marketing
by David Craven and Nigel Piercy (2007) page. 302

14

Principles of Marketing 11th Edition

by Philip T. Kotler and Gary Armstrong (2006) page. 48

15

Principles of Marketing 15th Edition

by Philip T. Kotler and Gary Armstrong (2013) page. 385

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