Question 1: Discuss the “Coffee Bun” market in Malaysia
Coffee Bun business was brought to famous by a home-grown bakery known as Rotiboy, who is also the inventor of the bun industry in Malaysia. Majority bakeries in Malaysia usually produces and sells flour-based food baked in oven such as cakes, pastries, bread and pies however RotiBoy solely produced and sold this coffee flavoured Mexican Bun.
This Coffee Bun sales started in a small town north of Malaysia known as Bukit Mertajam in the Year 1998, and this “Coffee Bun” business became popular in 2002 when RotiBoy outlet was opened in Jalan Ampang, Kuala Lumpur which is the capital of Malaysia. Rotiboy gained an enormous amount of support from public since its inception. This was evident enough since there were long lines formed by the customers to get their scrumptious famous coffee buns. This sweet-smelling coffee flavoured bun did not only attract customers in enormous numbers but also like minded entrepreneurs who sniffed this business.
Being a low barriers to entry into the market, other imitators found prospects in this business and took this opportunity and ventured into similar coffee buns in a short time. An example of this would be Pappa Roti, which is a franchise concept in Hong Kong and Singapore initiating Roti mum as their franchise for coffee buns. There is an incredibly high demand for these coffee buns, and Rotiboy’s prominent and fast tracked fame also attracted many similar bakery outlets to include coffee bun as one of their product choices. Some of the famously known coffee bun outlets are Papparoti and Mammaroti. One of the reason to this is, traditional bakery shops are being challenged by latest trend of boutique style bakeries and coffee bun prominent sale and outlets such as Rotiboy.
The coffee bun outlets in Malaysia is in an oligopoly market where there are only a few number of