i. HISTORY Doughnut or more popularly known as donut is not a pervasive culinary culture here in Malaysia, although thousands of donuts at roadside stalls and the school canteens have been selling this as long as we can remember. Then came the Dunkin’ Donuts (from United States) who revolutionized the way we look at donuts, and earlier 2007 which is May 2nd, Big Apple (from Malaysia) , opened their first outlet at The Curve, Damansara. Later on, J. CO Donuts & Coffee has decided to break into the Malaysian donuts market on September 2007. It was opened at Pavillion, the latest of prestigious shopping mall in Bukit Bintang, Kuala Lumpur.
Since then, thousands and thousands of Malaysian have made their way there and queue up to get a fix of their donuts. Even artists made their queued when J. CO Donuts & Coffee first opened. It is also their first ever outlet outside of country. Most people thought that this firm comes from the western like Dunkin’ Donuts. J. CO Donuts & Coffee owned and managed by Johnny Andrean Group. Johnny Andrean, a stylist and owner of a Bread talk shops network in Indonesia. J. CO Donuts & Coffee inspired from the donuts in the United States. Johnny Andrean was initially eager to buy U. S. onut franchise, but found some weaknesses of the product, namely the basic materials and production processes are less in quality control, so he thought better of it and decided to develop his own donut franchise without getting the U. S. He chose to make a donut shape and perfect taste, with a special focus on the quality of materials and production processes. When he returned to Indonesia, he later developed a donut shop with the concept, shape and taste similar to a donut shop in the United States. Johnny saw so far no donut shops in Indonesia have an open kitchen concept, so he started in J.
CO. So, besides having a different flavor, store concept was also created as an open kitchen so customers can see the many attractions making donuts, directly from mixing the ingredients until it is ready to sell donuts. Their donuts were made by machines, be it during the mixing up of ingredients, cooking and topping up the donuts. The only human force involved was only during the shaping of the donuts. That is also with the help of the shapers that is used. All the machines used where fully imported from US. The same with the basic ingredients, more than 50% of it was imported from overseas.
Like the chocolate, they were imported from Belgium and milk from New Zealand. Also, for the drinks, their ingredients were mostly imported too. The coffee bean some were imported from Italy and Costa Rica. With these, J. CO is positioned to be the premium quality products in Indonesia’s donuts market. The beauty and softness is reflected from the taste and shapes of the donuts. While eternity can be seen from the consumer’s loyalty that willing to stand the long queue at the shops just to get their favorite J. CO donuts. It took Johnny three years before launching J.
CO Donuts & Coffee in the Indonesian market on the 26th of June 2005. These three years were used to prepare the standard and operating procedure, choosing the basic ingredients, fixing the product’s quality and production process and the business operation. Within five years of operation, J. CO has succeeded to open more than 80 outlets throughout Asia with expansion in Indonesia, Malaysia and Singapore. The latest three outlets were opened in Tampiness – Singapore, and St. Moritz Jakarta – Indonesia. The firm was criticized for imitating the style Krispy Kreme, U. S. seller donuts.
However, Southeast Asia, ahead of Krispy Kreme, J. CO and other competitors in terms of daily visitors, awards and sales. J. CO donuts Asia has spurred the industry, by opening branches in rural Indonesia, namely in Malaysia and Singapore, and plans to penetrate other markets such Shanghai in end 2010 and Philippines in mid 2011. ii. J. CO’s VISION & MISSION. Peacock on the logo represents our corporate vision & mission of J. CO Donuts & Coffee. VISION ? to establish J. CO Donuts & Coffee as the foremost International Premium Donuts and Coffee Brand ? to be the trend-setting lifestyle in donuts & coffee brand to be the right company for the right people in achieving their dreams MISSION ? to provide premium quality donuts & coffee ? to encourage our people to reach their dreams ? to put customers as our priority ? to commit ourselves to give excellent service sincerely ? to make a difference in our community ? to provide perfect places for hang out ? to treat each other with respect and dignity. ii. i. PRODUCT J. CO Donuts & Coffee emerge in the midst of society with variety of the products. The products including donuts, coffee, chocolates and the latest product is yogurt. Each donuts were named creatively according to the toppings and flavors.
It creates an uniqueness and easy to remember name, For example, Cheese Me Up is a name for the donuts with melted cheese on top. Tira Miss U is a name of the donuts with tiramisu topping. These are names of the donuts: Hazel Dazzle, Glazzy, Alcapone, Coco Loco, Cheese Me Up, Miss Green T, Why Nut, JCrown Oreo, Da Vin Cheez, Mona Pisa, Heaven Berry, Forest Glam, J. CO Praline, J. CO Yogurt, Choco Forest Freeze, J. Pops, and many more. ii. ii. PRICE LIST IN MALAYSIA Donut Price List Glazzy RM Assorted RM Each 2. 0 Each 2. 30 ? Dozen 9. 60 ? Dozen 11. 00 Dozen 16. 20 Dozen 19. 10 2 Dozen 28. 60 2 Dozen 33. 40 Beverage Price List Item RM Cappuccino 6. 70 Cafe Latte 8. 60 Iced Chocolate 8. 10 Oreo 11. 0 Green Tea 10. 00 Price for Regular Beverages: Item RM Cappuccino 7. 70 Cafe Latte 9. 10 Iced Chocolate 9. 10 Oreo Freeze 11. 90 Green Tea 11. 00 *prices above are subjected to 5% gov tax. ii. iiiRECENTLY OUTLET J. CO Donuts & Coffee had opened lots of outlet around Indonesian and also others country. INDONESIA
Jakarta : Supermall Karawaci, Mall Kelapa Gading 2, Plaza Semanggi, Cilandak Town Square, Bintaro Plaza, City Walk Sudirman, Mangga Dua Square, Mall Artha Gading, Margo City, Senayan City, Mall Taman Anggrek, Buaran Plaza, Pondok Indah Mall 1, Summarecon Mall Serpong, Kalibata Mall, Plaza Pondok Gede 2, Mal Puri Indah, Pluit Mega Mall, Atrium Senen, Mall of Indonesia – Main entrance, Emporium CBD Pluit, Cibubur Junction, Pejaten Village, Citraland, Airport Terminal 3, E’xtertainment Center, Puri E’xtertainment Pavilion, Mall Taman Anggrek Lt. 3, Central Park, Plaza Senayan, Tamini Square, Cinere Mall.
Bogor : Botanical Square, Ekalokasari. Bandung : Ciwalk 1 & 2, Istana Plaza, Paris Van Java, Bandung Supermall, Bandung Indah Plaza. Bekasi : Metropolitan Mall, Mega Bekasi Hypermart, Bekasi Square. Solo : Solo Square Medan : SUN Plaza, Cambridge. Surabaya : Supermall Pakuwon, Plaza Surabaya, Galaxy Mall, Surabaya Townsquare, Tunjungan Plaza 1, Tunjungan Plaza 3. Batam : Mega Mall Batam Center Bali : Galleria Mall Balikpapan : E-walk Samarinda : Plaza Mulia Semarang : Java Mall Semarang
Makassar : Mall Panakukang, Mall Ratu Indah Yogyakarta : Mall Malioboro Pelembang : Palembang Indah Mall Pekanbaru : Sentral Komersial Arengka, Ciputra Seraya Manado : Manado Town Square MALAYSIA Pavilion – Bukit Bintang – KL, Sunway Piramid, Giant Kota Damansara, Johor Bahru City Square, Queensbay Mall – Penang, AEON Bandaraya Melaka SINGAPURA Raffles City, Bugis Junction, Tampines 1. The logos of J. CO Donuts & Coffee may look similar to Starbucks. The circular boundary may be the same, but not a trademark. J. CO Donuts & Coffee uses the symbol of Peacock in their logo.
Peacock here symbolizes beauty, elegant, soft and eternity. The beauty and softness is reflected from the taste and shapes of the donuts. While eternity can be seen from the consumer’s loyalty that willing to stand the long queue at the shops just to get their favorite J. CO donuts. The firm vision is very clear to become the foremost international premium donuts and coffee brands by opening the firm in the region of ASIAN which is in 2011 at Shanghai, China and become direct competitor towards Krispy Kreme, that make it (Krispy Kreme) feel treated and made a statement the J. o somehow copying their business ideas. The others visions are to be the trend-setting lifestyle in donuts & coffee brand and be the right company for the right people in achieving their dreams which can be look at the shop concept which is made as open kitchen so the consumers can view various attractions in the making of donuts, right from the mixing up ingredients up to the ready to be sold donuts. The missions are what they have achieved for the past almost 5 years in the ASIA market.
They have provided quality donuts & coffee which can be seen the people willing to queue long to get the donuts and they have unique concepts for each outlet, and the one for Pavillion outlet is more hip and hype as their target market seems to be teens and young adults. In order to ensure customer’s satisfaction, J. CO makes sure their ingredients are sourced from the best places, and then undergo strict hygienic and fresh cooking processes.
For example, their best-selling Al Capone (named after the famous Chicago mob boss) is made of almonds imported from California, and white chocolate from Belgium. They also encourage people by having Community Service such as charity funds rising and for people to become entrepreneur with franchising. . iii. SWOT ANALYSIS iii. iExternal issues J. CO Donuts & Coffee emerges when everyone in the world was craze about donuts. The firm is actually a chain from Indonesia, often criticized for copying the style of the even-more-famous Krispy Kreme. This is because the owner of J.
CO, develop a donut shop with concept, shape and taste that are similar with the donuts shop in US but with different shop concept which is open kitchen where none of the donuts shop ever do so the consumers can view various attractions in the making of donuts, right from the mixing up ingredients up to the ready to be sold donuts. Moreover, the firm is expanding their market internationally within Asia and soon Australia. With market segmentation according to Smith, involved analyzing the demand side of the market to obtain a rich understanding of where people are coming from and “the wants” they bring to the market place.
The variables of market segmentation are geography, demography, sociology and behavior. The firm targeted urban areas in term of geography which the strategic place for their premium donuts such Pavillion at Kuala Lumpur in the heart of city and many tourists visit there. Their potential customers are age’s 18-45 men and women, same as their competitors. Since their ambiance is cozy for teenagers and adults to hang out at the cafe give advantages J. CO. Most of the ingredients were imported from overseas in orders to give the best quality products to the consumers that making premium brands.
It is the standard and operating procedure, choosing the basic ingredients, fixing the product’s quality and production process and the business operation. iii. iiCompetitors J. CO Donuts is a bakery retailer specializing in doughnuts and coffee was new in the market even though was establish almost five years have many competitors especially Krispy Kreme and Big Apple in Malaysia. Talk about donuts and coffee entrepreneur, is not too late to discuss Dunkin Donuts, the brand that had been establish since 1950.
Dunkin Donuts is the worldwide brand that still standing with different types of products such donuts, brownies, muffins, coffee, chocolate, croissant and many others. Compare to J. CO Donuts & Coffee, Dunkin Donuts was long establish and yet it was not J. CO Donuts & Coffee competitor because Dunkin Donuts concept is more to mainstream donut based on Country Style Donuts unlike J. CO Donuts & Coffee, they focus on the quality of the donuts. There has been a rumor of plagiarism about the trademark of J. CO Donuts & Coffee and its entire menu by a Malaysian-born Big Apple Donuts and Coffee.
The Big Apple was created on 2 May 2007, and is 99% similar to J. CO Donuts & Coffee in terms of products and its packaging. The Malaysian-creator of Big Apple Donuts and Coffee is believed to have stayed in New York (the city is widely known as “Big Apple”) and heard of the success story of J. CO Donuts & Coffee donuts from Indonesia. They made clever use of the New York nickname and riding along the popularization of the brands on donuts & coffee to form their own brand. Big Apple Donuts and Coffee became J. CO Donuts & Coffee rivalry when they (J. CO Donuts & Coffee) entering Malaysia market. Krispy Kreme as J.
CO Donuts & Coffee competitor is the oldest donuts retailer in U. S. and has long records in donuts retailer compare to J. CO Donuts & Coffee in term their loyalty customer. Johnny was inspired from donuts in US. Johnny, who often goes on business trip to US, gets to taste many donuts with different flavors and uniqueness and develop his own donut without getting the US donut franchise. He chose to produce a perfect shape and taste from donuts that he had tried in the US. That why some U. S. Donuts retailer, make same statement that J. CO Donuts & Coffee copying most of their products. iv. CONCLUSION
J. CO Donuts & Coffee is a local brand that had been repositioned as international brand. J. CO Donuts & Coffee represent modern life styles with the best customer services and quality such in their missions. J. CO Donuts & Coffee offers cozy ambiance for their customers, it can be seen from the shop concept which is open kitchen where the customers could see from the beginning the making of donuts until it serve to the customers. J. CO Donuts & Coffee try to get their customers by providing premium quality donuts & coffee. Besides that, they also targeted lifestyle people who love hanging out in cafe.
It is for high taste people who love to socialize. At this moment, J. CO Donuts & Coffee and competitors are spreading their strategies. The uniqueness of J. CO Donuts & Coffee that is different from others is their transparent kitchen where the consumers could see the donuts in making with other products. The target consumer is high class people. Other value added of J. CO Donuts & Coffee is using high quality ingredient imported from overseas. Like the chocolate, they were imported from Belgium and milk from New Zealand and the coffee bean some were imported from Italy and Costa Rica.
With these, J. CO is positioned to be the premium quality products in donuts market. J. CO Donuts & Coffee will standout when they already establish not only in Asia but western. Year 2011 they will penetrate Chinese market and will be expending East Asia on Dubai. The J. CO Donuts & Coffee in Indonesia were all controlled and owned by Johnny himself, whilst the overseas shops were franchised, in which we all knew that Singapore’s J. CO Donuts & Coffee franchise is owned by Bread Talk group. J. CO is now open for franchise and spreading wide overseas.
