Table of contents

1.0 Executive Summary .................................................................................................................. 2

2.0 Type of Product & Unique Selling Point .................................................................................. 5

3.0 Target Country ........................................................................................................................ 10

4.0 PESTof Old Town White Coffee ............................................................................................ 10

5.0 SWOT analysis ....................................................................................................................... 14

6.0 Competitive Strategy .............................................................................................................. 15

7.0 Competitors Analysis .............................................................................................................. 16

8.0 Conclusion .............................................................................................................................. 17

9.0 Reference ................................................................................................................................ 18

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1.0 Executive Summary
Old town White Coffee is the largest halal - certified kopitiam restaurant chain and classic
Coffee shop in Malaysia.

 Certified Halal food

Founded in 1999, in Ipoh Town, after more than 10 years of hard work, coffee has become the
largest local coffee brand in the Malaysian market with 171 coffee shops in Malaysia and
overseas markets. In the second half of 2009, after the expansion in foreign markets, the first
"OLDTOWN WHILE COFFEE" store was set up in Singapore after the direct export of 3-in-1
instant coffee and other major products to the United States, Canada and the United Kingdom.
As shown in Figure 1.0 (OLDTOWN WHILE COFFEE official website 2010). Now go to the
United States was selected as the potential expansion of the company's new overseas chain
stores market.

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Figure 1.0 Old City white coffee export map
The products covered in this report refer to "OLDTOWN WHILE COFFEE" in a coffee shop, not
a specific coffee product. In a special "OLDOWNOWN COFFEE" coffee shop, in addition to the
various white coffees inherited from white coffee, special brewing began in 1958, as a local
coffee shop in Malaysia, OLDTOWN WHILE COFFEE also offers a range of local foods such as
coconut milk Rice is not expected in a traditional western coffee shop like Starbucks.

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Figure 1: Old town Berhad Managing Director (Siew Heng Lee)

Key Management Mr. Siew Heng Lee serves as the Managing Director at Old town Berhad and
has been holding the director’s post since November 2007. He brought with him more than 24
years of invaluable industry experience that he has been accumulating in the manufacturing and
retailing industry and also in the coffee beverage business line. Mr. Lee has been a driving force
in the expansion of the group’s beverage manufacturing and their café chain operation
businesses. Not only is he involved in the expansion of the company’s business activities, he
has also been contributory in the growth and expansion of the Old town Group of companies.
Before re-designated as the managing director of Old town Group in 2009, Mr. Lee was a
managing director at one of Old town Group’s company, known as White Café Marketing in
2001. He is in command for several private companies and is currently the chairman of the
holding company of Old town Berhad, Old town International Berhad.
Integrated Business Model the Company carries out an integrated business model which is
anchored by two of their main businesses, the Food and Beverage (F&B) industry and the Fast
Moving Consumer Goods (FMCG). This operation has been carried out over the years and is
seen to be an overwhelming success. The model comprises of the café chain outlets operations
and the manufacturing of beverages complements one another in terms of raw materials
acquirement, support services, marketing and promoting campaign and more.

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2.0 Type of Product & Unique Selling Point

2.1 Unique Selling Point

The perfect combination of the Old town white coffee with 3 types of premium beans, and
brewing roasting process when it is created for the first time, it also try to provide the best
product for the consumers by keeping loyal to a system, adhere to the hard work through years
of experience in research and development. All of this ensures that customers can enjoy the
best white coffee at once, and that a product can completely cover all the different coffee lovers.

2.2 Type of Product

Old town not only operates in Malaysia, but also creates a strong international distribution
network around the world. Old town drinks have been sold in more than 8,000 retail stores
across the country. As these drinks are shipped to different countries, it is important to package
the guidelines and specifications of different countries.

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1. OLDTOWN WHITE COFFEE™ 3 IN 1 CLASSIC
 A perfect smooth blend of the original white coffee.
 Rich, creamy and aromatic, it has a heightened lingering mouth feel.

2. OLDTOWN WHITE COFFEE™ 3 IN 1 HAZELNUT

 A rich fragrant Hazelnut flavored white coffee blend.
 Creamy, nutty and unique, it leaves a tantalizing mouth feel.

3. OLDTOWN WHITE COFFEE™ 3 IN 1 NATURAL CANE SUGAR

 A satisfying blend with the great taste of natural cane sugar. Smooth, tasty and milky, it
delivers medium strength coffee aromatics.

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 4. OLDTOWN WHITE COFFEE™ 3 IN 1 LESS SUGAR
 Reduce the sugar, gain the sweet compliments.
 *25% less sugar compared to OLDTOWN White Coffee™ 3 in 1 Classic.

. 5. OLDTOWN WHITE COFFEE™ 3 IN 1 MOCHA

 OLDTOWN White Coffee® 3 in 1 Mocha is an irresistible treat- the perfect union of

cocoa
 OLDTOWN WHITE COFFEE BLEND. Indulge yourself with a creamy rich and full of
depth OLDTOWN White Coffee® 3 in 1 Mocha.

6. OLDTOWN WHITE COFFEE™ 2 In 1 Coffee & Creamer

 A great alternative for the health conscious. A full bodied white coffee minus the
sugar

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7. OLDTOWN™ 3 IN 1 WHITE MILK TEA

 A flavorful combination of milk and tea. Aromatic and calming with a smooth creamy
mouth feel

8. OLDTOWN™ Nan Yang White Coffee O Kosong

 Distinctive and strong- just like the good old days!

 Thick and bold with full bodied white coffee “o” aromatics minus the sugar.

9. OLDTOWN™ Black Series 2 in 1 Black Coffee with Sugar Added

 Features deep rich flavors with a hint of caramel, satisfying aroma and a lingering
sweeter note.

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10. OLDTOWN™ Black Series Black Coffee

 Features irresistible, deep intense flavors with well-balanced hint of caramel.

11. OLDTOWN WHITE COFFEE™ RTD Can Drink

 Perfect for people on the move. Now you can truly enjoy the great taste of the original
white coffee anytime, anywhere… chilled

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3.0 Target Country
Based on the above PEST analysis, the United States will target coffee expansion plans outside
Asia. This will be the best target market for the old town. Because of America's superior
research and development capabilities, widely accepted coffee culture, relatively high economic
growth rates and lower interest rates, and modest corporate tax rates. Not only that, the United
States is the largest consumer of coffee market, with broad space for development, the United
States can become a more attractive market.

4.0 PESTof Old Town White Coffee

4.1 Political and legal factors

The United States is highly developed, has political stability and a sound administrative system.
However, there are some political and legal factors to consider before starting a corporate.
Legally, corporate taxes, which are commonly based on income, property and other in different
regions, generally reduce the company's net profit from its operations. The U.S. taxable income
of more than 100,000 US dollars, which should be OLDTOWN WITH COFFEE easily completed
at the beginning of its expansion plan. U.S. corporate income tax rates vary according to the
level of taxable income as clearly defined in the table below. The tax rate for this graduation is
encouraging at the start of a business, but its relatively high tax rate of more than 75,000 U.S.
dollars on taxable income is more than 34%, making it a disappointing year for OLDTOWN and
COFFEE to enter the U.S. market the elements of.

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4.2 Economical factor

Availability and costs of capital and demand may be affected, and market economies will also
affect the profitability of the company. A market has a strong consumer demand for certain
products and provides low-cost capital. Moreover, most companies that offer such products can
make a decent profit. Based on past experience, while the downturn can also provide
opportunities for certain products, demand for most products is booming, and the economy is
still growing.

As the chart above shows, the growing rate of the gross domestic product (GDP) of the U.S.
economies is particularly pronounced in the global economic crisis. The U.S. experienced a
decline of about 6% of GDP in the fourth quarter. However, recent data show that at present the
U.S. economy the bodies seemed to have regained growth, with the United States gradually
increasing by 1.7%. On the other hand, Interest rates on the borrowing costs of investment
activities affect and attract foreign investors' concerns.

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4.3 Social and cultural factors

According to the study, the US is the largest consumer of coffee in the world, but according to
the chart above, it cannot be listed as one of the countries that drink coffee. As a result,
Americans consume more coffee than any other country.
Although consumers in the United States consume less than consumers who are fanatical about
coffee in Europe, from a consumer perspective, Americans still love coffee. More importantly, a
growing market is somewhat more suited to introducing a new brand than a mature and
developed market, and the United States remains a worthwhile country to develop.

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4.4 Technological factors

Technology has been commonly recognized for its impact on corporate strategy management,
so the company has also created core competitiveness in its business. The business can more
easily get access to lower-cost advanced technologies that can even enjoy technology spill
overs, and a country with a higher GDP-to-GDP ratio, a no defensively R & D and basic
research event to bring to the company in which it operates huge benefit. Both non-defence
research and development or gross domestic product (GDP) can be compared to gross
domestic product expenditure, and the research and development capabilities of the state are
studied from a company perspective. As the table below shows, for non-defence R & D to GDP
ratio, the proportion of non-defence R & D activities in the United States to 2.26% of GDP is the
United States' leading position in research and development.

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5.0 SWOT analysis
There are benefits and weaknesses to establishing a new joint venture that needs to be
considered and cautious before taking any action. These effects can be analysed in SWOT's
analytical framework.

5.1 Strengths
 Various food and beverage options
 Reasonable and affordable price
 ideal location with plenty of parking nearby
 There are many branches in Malaysia, Singapore and Hong Kong
5.2 Weakness
 Old town white coffee is mainly coffee, which makes their products difficult to diversify.
 Because they depend on only one product, innovation is slow

5.3 Opportunities
 Introduce more countries to promote their business to the global market.
 Coffee is more getting popular, not just tea leaves.
 The economy is getting better and better.
 It also can compete with other companies using the same materials
 To provide staff training programs to improve work efficiency
 Market presence Synergy

5.4 Threats
 The consequences of the rising price of coffee they use can make the product expensive.
 The copy of the product is very high, although the coffee is very popular, but at the same
time the opponent is also easy to imitate, so that coffee has become more common
 not compatible partners
 limited access to the latest information
 the changing environment

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6.0 Competitive Strategy
In assessing the consumer market, According to economic research, the upper middle class
and the privileged class will be the ideal consumer economy. By age demographics, students
and adolescents, professionals and families will be the most important consumers. Studying
gender and racial or religious backgrounds has little or no impact on consumers' choice of
coffee and its sponsorship of cafes. In order to maximize the brand name (signature) Costa Rica
marks the beginning of the sale of coffee in the world, superior luxury, with the theme of Costa
Rica's theme marketing communication strategy is to promote marketing of your target market is
the beginning of sales, which is Marketing communication activities began sales process. The
art and science of marketing communication is becoming more and more important, if with the
development of multi-channel content. However, no company can definitively determine that
they use the most effective media mix, but they will not develop a marketing strategy that
matches their overall strategic marketing direction.

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7.0 Competitors Analysis

Competitor Product Unique Selling Point （USP）

Café Bustelo This instant coffee is the Burger King in coffee,
really delicious. It is very thick, sweet, full of mouth
feel and very rich in flavour. It will keep treating
your taste buds in your mouth and then leaving
your cheeks fragrant all morning.

Nescafe Taster’s Choice 100% Colombian Instant As an elder in instant coffee, Nestlé's Colombian
Coffee instant coffee is really made from 100% Colombian
coffee and it's very handy to pack individually, all
the way up to my head.

Starbucks VIA Colombia Ready Brew Instant Starbucks also put aside its attitude in recent years
Coffee launched its own instant coffee series. But do not
look it is instant, coffee taste, quality and taste but
no discount, no wonder he can proudly say the ad
"different from instant coffee, instant coffee"

Mount Hagen Organic Freeze Dried Coffee The selling point of this coffee is organic and
environmental health, mild taste, there will be no
bitter. And a can out of up to 60 cups of rich aroma
instant coffee.

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8.0 Conclusion

After PEST analysis in the US market, the United States was identified as a market more
suitable for the old city of white coffee with the suitable market conditions. For example, lower
corporate tax rates and interest rates to start businesses, broadly accept coffee culture and
improve research and development capabilities. Companies still need to find local partners to
quickly expand their operations in the United State to share the risks. The deadline for the
implementation of the new joint venture will develop a more suitable for the target market
marketing strategy, all plans a three-year plan to marketing, and achieve the goal according to
the original plan.

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9.0 Reference

1. International Coffee Organization 2008, Historical Coffee Statistics, accessed on 19th

Oct 2010, [online] available: http://www.ico.org/historical.asp

2. Law.cornell.edu 2008, US Code: Tax imposed, accessed on 19th Oct 2010, [online]
available:http://www.law.cornell.edu/uscode/html/uscode26/usc_sec_26_00000011—-
000-.html

3. Larson, R. C. 2008, Starbucks a Strategic Analysis: Past Decisions and Future Options,
accessed on 25th Oct, 2010, [online] available:
http://coe.brown.edu/documents/StarbucksaStrategicAnalysis_R.Larson_honors_2008.p
df

4. Nsf.gov, 2010, Chapter 4. Research and Development: National Trends and

International Linkages, accessed on 24th Oct 2010, [online] available:
http://www.nsf.gov/statistics/seind10/c4/c4s5.htm#s2

5. OLDTOWN WHILE COFFEE official website 2010, Our business, accessed on 19th Oct
2010, [online] available: http://www.oldtown.com.my/

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