What is product? Product can be determined as a tangible thing that we can see, can touch. Products offered to the market for attention, acquisition, use or consumption that can satisfy consumer's needs or wants. When there is a mixture of services, events, persons, places, organizations, ideas we can call it as products too. Producer usually produces products to earn profits.
Big apple specializes in offering a wide range of donuts and beverages to people who want something different from norm and best of all, Big Apple donuts can be enjoyed by all cultures. There are 3 examples for those popular donuts in Big Apple. These three donuts are chosen to be the "hall of fame" in Big Apple's website.
On average, each Big Apple store churns out ¼ million donuts a month. And yet, Big Apple's uses low-sweet dark chocolate, non-fat milk and 100% vegetable oil shortening to produce their donuts regarding to the flavors. Besides, Big Apple donuts have the lowest calories and sweetness level.They are much more concerning on the healthy problems of the consumers. And so on, their donuts are always served fresh, warm and fluffy soft.Even if you preferring to take away their donuts to enjoy at home, these donuts keep fresh for three days.You just need to microwave them for only 8 seconds, and you have fresh donuts again. This will be the one of the reasons why most of the people are prefer Big Apple. In addition, Big Apple's ingredients and products are imported and of the highest quality, operation and hygiene practices strictly adhere to international standards and procedures. Besides, Big Apple also offers some beverages like Coffee, Tea, Ice Blended, Icy special and others.
Product Classification
When people mentioned Big Apple, most of the peoples will know that it's all about donuts. Donut is classified as a consumer product. Consumer products can be defined as the products and services that sell to the final customers directly. Besides, it is a convenience products which mean peoples who are buying consumer products will purchasing frequently and least make comparison with others company.
Brand
What is brand? Brand can be recognized by a name, sign, term, symbol or design. Its' help company to differentiate their product with competitors. For Big Apple, most of the peoples will recognize them by their name more than their sign simply means their logo.
About Big Apple brand was inspired by the American way of life where people take to great ideas in a free spirited fashion while maintaining the standards that are expected, in the same way that Big Apple's concept was born. Big Apple simply Big on everything, from the artistic creation of its donuts to the tantalizing flavors that are never enough. To epitomize these qualities, we chose the largest city in the United States - the Big Apple, the moniker for New York City. Refers to the picture below, will be the symbol of the Big Apple company.
Packaging
Packaging can be say as a container or the 'dressing' of the products.Product can have several types of packages like bottles, can or a box. Packaging plays the most important roles to attract customers. Some of the consumers will actually buy the products just because of the packaging. At the same time, consumers will recognize their products by recognizing their packaging. So, Big Apple was using an interesting packaging just to attract their customers. They divided the packaging into 3 types, 12 pieces a box, 6 pieces a box and 3 pieces a box.
Labeling
Labeling refers to the tags that shown on every packaging. Producers can labels any related information about its products on their packaging like nutrition facts, their pages, email, reward and others. With Big Apple's packaging, they labels up their logos, web pages, email and also the every outlets of their company.
2. PRICING
Price Definition
Price is one of the important major elements of marketing mix. Setting the price of the product is important as may be able to affect the profit and the revenue of the company. Therefore, management has to set the appropriate price which is the amount of money the customer willing to pay for the products and services.
The company set the prices that match the competitors' price which is RM2.50 per piece. This is due to practicing the fairly competition in the donut industry to meet its customers. Besides that, Big Apple Donut And Coffee Company will be able to survive although there are many strong competitors among them. This is due to the cost of the production. Big Apple Donut And Coffee Company offers this price in term to cover the fixed and variable costs of the business. Furthermore, Big Apple Donut And Coffee Company set the price to help the growth of the company. It offers this price for the donut in order to maximize its profits over the short period on the total output. With generating enough profit, company will be able expand its business and open more outlets in the world and position the Big Apple Donut And Coffee Company which are the most popular outlet that sell donut in the mind of consumers. In conclusion, the prices objective of Big Apple Donut And Coffee Company are match the competitors, survival and maximize the profit for company growth and price set are based on the cost, demand and the competitors.
Discount And Allowance Pricing
The tactical managers of the Big Apple have used discount and allowance pricing and market penetration pricing and segmented pricing to achieve business goals. Discounts include cash discount, quantity discount and functional discount. Quantity discount is one of the discounts used by the Big Apple which is the price reduction for the buyer who purchase in a bulk amount. When we are buying six piece of donut, the original price of six pieces donut should be RM15 but Big Apple has offered the price with RM13.50 for six pieces of the donut, which have help the customer to save up to RM1.50. When we are buying twelve piece of donut, we will be able to save RM3 compare to buy it piece per piece.
Market Penetration Pricing
Secondly, the tactical managers use the market penetration pricing which is setting a low price at the beginning in order to penetrate the market quickly and win the share of the market. At the beginning, the Big Apple has set a lower price which is RM2.30 per donut compared to their competitors to produce more growth as the market is highly sensitive to the price. After Big Apple have established and have the high market share to compete with his competitor, they started to increase their price from RM2.30 to RM2.50 per piece of donut. This is set so they may be able to survive for the long-term.
Segmented Pricing
Thirdly, the tactical managers are using the segmented pricing to increase the sales. Big Apple Donut And Coffee Company various the prices by month and hours at the particular location. Big Apple Donut And Coffee Company has offered the breakfast and tea break special from 7am - 11am and 3pm - 5pm, 1st October 2012 to 31th March 2013 at Skypark Terminal,Subang.
Place is concerned with various methods of transporting and storing goods, and then making them available for the customer. Getting the right product to the right place at the right time involves the distribution system. The choice of distribution method will depend on a variety of circumstances. It will be more convenient for some manufacturers to sell to wholesalers who then sell to retailers, while others will prefer to sell directly to retailers or customers. Besides, it's includes company activities that make the product available to target the consumers.
Big Apple Donuts are enjoyed by fans all over the world and researching out to us as much as they can is one of their top priorities. There are many stores not only in Malaysia. There are also in China and Thailand. There are 58 stores in Malaysia, 12 stores in Thailand and 2 stores in China. Malaysia is a multiracial country, but most of them love big apple donut. It is because there are many choices for the customers. This could attract customer with their special flavor and taste. For example, Being a Malaysian it is only natural for me to be in love with the king of fruits, the durian and Big Apple actually has a durian flavor donut named Duren-Duren. This may satisfy customer's crave easily.
In the month of May 2007,Big Apple Donuts opened its doors for the very first time to Malaysian donut lovers at The Curve. With the customer's walking line spilling beyond the sidewalk, a new world of experience for donut lovers began emerging. By mid of 2008,Big Apple was acknowledged as one of the faster growing food chains in the history of the nation with already 23 stores operating nationwide, just over a year after its birth. So, Malaysia is the best choice for Big Apple to expand their business.
There are many traveler love to travel to Malaysia. Scenic spot of Malaysia had attract travelers from other country. For example, from Japan , Korea , United Kingdom, United State and so on. They may have Big Apple Donuts for their Tea-Time. In the store, they have also provide free Wi-Fi to the customer who having their food there. Big Apple Donuts is the best place to let their customer to meet up their friends and chilling. They always try to give the best service to their honorable customer and guests come here as if they were returning home.
Big Apple Donut is belong to 3) producer to consumer. Producer is meant that a manufacturer or creator of the goods that are produced for consumers or for a specific target market. Besides, it is also called as maker and Consumer is a person who buys products or services for personal use. A consumer is someone who could make a decision to choose whether or not to purchase an item at the store , and who can be influenced by marketing and advertisement. A person who goes to a store and purchase something is consider as a consumer
Promotion is the business of communicating with customers. It will provide information that will assist them in making a decision to purchase a product or service. The cost associated with promotion or advertising goods and services often represents a sizeable proportion of the overall cost of producing an item. However, successful promotion increases sales so that advertising and other costs are spread over a larger output. Though increased promotional activity is often a sign of a response to a problem such as competitive activity, it enables an organization to develop and build up a succession of messages and can be extremely cost-effective. Besides, it's refers to activities that communicate the merits of the product and persuade target customers to buy it.
Advertising
The promotion tool used by Big Apple is advertising. Advertising strategy can reach masses of geographically dispersed buyers at a low cost per exposure. The advertising objective of Big Apple is reminder advertising. Big Apple used advertisement to remind their customer about their presence in this market.
For example radio, television, newspaper, magazine and internet. These are the types of advertising method can be used by Big Apple. However, internet is the most common method that we can see in our daily life. Nowadays, information can be search by many people through internet especially teenagers. Big Apple gets this opportunity to promote their product through internet so that more people will share about it easily. We may get into the official website of Big Apple too which provide many information and news. In addition, they also creates website that have the most updated news of Big Apple. The website is http://www.bigappledonuts.com/
Sales Promotion
Besides that, Big Apple also use promotion tool such as sales promotion. Sales promotion is a short-term incentive to encourage the purchase or sale of a product or service.
For example, Big Apple donuts FREE 1 can of Fanta with purchase of 1 box of 6 Donuts OR FREE 2 cans of Fanta with purchase of 1 box of 12 Donuts. This promotion is available at selected outlets while stock last. This may attract Fanta's lover to purchases it. Besides, Big Apple also cooperate with Firefly by present your boarding pass at Big Apple outlet, Skypark Terminal, Subang to get a Breakfast and Tea Break Special. This promotion starts from 1st Oct 2012 t0 31st March 2013.Customer could save their money by purchasing with this promotion.
Big Apple also provided pre-order through the internet. So that customer can pre-order their donuts for collection at any store of their choice without waiting in line. It may save a lot of customer's precious time. Customer be sure to place their order 7 days in advance. Customer may get discount by purchasing donuts through the internet. Customer will get 5% discount by purchasing 11-20 doz, 10% for 21-50 doz , 12.5% for 51-100 doz , and also 15% for 100 doz and above .Other than that, customer will get a FREE calendar 2013 with 12 value deal coupons with purchase 6 or 12-piece box . This is only valid with purchase of 6 or 12-piece box. 1 calendar per box and it is limited to 5 per customer. Besides, each coupon is only valid for its respective month.