Tutti Frutti

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Introduction:
The Frozen yogurt is a frozen desert that it includes yogurt and the other dairy products. It belongs to the mainstream public in the 1970s. By the 1980s the frozen yogurt was not popular and nobody knew about it and its ingredients and people never heard about it. After that by the 1990s, frozen yogurt became popular and it could attract a lot of people to buy and consume it. It was a healthy food. It captured 10% of the frozen desert market and it had a good selling growth around 117.6 million gallons. However, this industry sometimes face a risk and its value is going up and going down. The statistics illustrates this industry’s selling has gone down only 65 million gallons and its growth trend gone up near 12% in 2007. All expectations of this industry announce to grow by more than 4 billion and 18% increased by 2012.

Company Background:
Tutti frutti Malaysia start up its work in Malaysia since October 2009 with its first flagship store in Sunway pyramid that it offered customers variety of flavor. Those consist 40 delicious taste and over 30 different toppings. Tutti frutti owned by Naza Group of company in Malaysia. Naza Tutti frutti expanded their production brand is Malaysia, Singapore, Thailand, Cambodia and Brunei. Their plan was to start up another 4 stores. They wanted to open 25 outlets by the end of 2010 and 50 outlets by 2012. In April 2012, the number of Tutti frutti has captured 90 overall. Now, Tutti frutti Malaysia has 42 outlets: 33 in the Klang valley, 2 in Ipoh, 2 in Penang, 1 in Pahang and 3 in Johor. They want to expand their industry all over the the Malaysia like Malacca, Sabah, Negeri sembilan and Sarawak. Their wharehouse is located in commercial blocks near the areas where people are living (80%) and shopping malls (20%) by the 15000 sq ft area. Naza tutti frutti were challenging the first 12 months of their business because the people didn’t know about their production and they did not have any information about it. But the Naza group struggled to improve people knowledge and give them information about the tutti frutti and benefits of consumption it. Tutti frutti frozen yogurt is a nutritious treat that it carries a goodness of probiotic, it is vital and natural components for health and promoting foods.

Major competitor

Side competitor

Substitution competitor

Tutti Frutti is facing little fierce competition. Independent outlets are fading out and chain brands (are) taking over. Yogen Fruz and moo cow are the nearest competitor but overall Tutti Frutti is leading the market segment. Based on our survey, one of key reason why customer choose Tutti Frutti is because the company has more store nationwide therefore creating availability, accessibility and awareness.

Brand
Yogen Fruz
Moo Cow
Tutti Frutti
Flavor
17+
Few
58
Topping
30
15
43
Service
self service & served
served
self service
Price
varied
fixed
varied
Outlet
5
15
outlet 100+
Halal Cert
n/a
n/a
yes

SWOT Analysis

Strength
Weakness
a) versatility
b) rooms for innovation
c) availability
d) healthy product with low fat
e) lots of flavor

a) low total purchase per customer
b) price
b) it melts quickly
c) taste compared to ice cream
d) lack addictive element: coffee, fat,
e) weak brand recognition
f) low customer retention

Opportunity
Threat
a) demand from college, women and health conscious
b) customer indulge in inexpensive luxury during gloomy time c) premium frozen yogurt: creamy, made in house compared to off the shelve d) brand partnership: use limited time marketing campaign in partnership with other lifestyle brand e) health awareness and related campaign

a) seasonality based on weather
b) Wide variety of competition
e) Large selection of product substitution
f) Potential price war with competitor

Strength

The strength of Tutti Frutti lies on its store availability. Based on our...
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