Coffee Bean - Malaysia

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EXECUTIVE SUMMARY
Our research is conducted with the purpose of investigating and studying the current retail mix. We chose The Coffee Bean & Tea Leaf ® as the retail company which operates in Malaysia. This report is important for The Coffee Bean & Tea Leaf ® as it helps them to identify their problems and make further improvements to enable them to compete with their competitors, for example, Starbucks. As we know, The Coffee Bean has a lot of franchises, there were about 750 stores in 22 countries, for example in California, Arizona, Nevada, Singapore, Malaysia, Sabah, Taiwan, UAE, Korea, Brunei, Indonesia, Australia, Shanghai, Israel and Brunei and continues to expand both domestically and internationally. As it is hard for us to conduct a research on this topic in so many countries, therefore we only focus on The Coffee Bean operating in Malaysia. We conducted our research by using searching for detail information through the internet. Besides that, we went to one of the franchises located in Penang to see how the business operates, how the staffs serve their customer and to know more information on the store layout and design. The result of our research shows us that The Coffee Bean & Tea Leaf ® has encountered many problems. As conclusion, we did include several recommendations to The Coffee Bean and to help them to improve in order to earn more profit and their sales can increase.

RETAIL ENVIRONMENT
Retailing is the final activities and steps needed to place merchandise made elsewhere into the hand of the consumer or to provide services to the consumer. Nowadays, retail sector is increasingly being viewed as an important in the economy and to the society. According to Malaysia Retail Report 2010, it predicts that total retail sales will grow from an estimated US$35bn in 2009 to almost US$58bn by 2014. A low unemployment rate, which rise the disposable incomes and a strong tourism industry are key factors behind the forecast growth. In 2009, Malaysia's nominal GDP was US$201.06bn. Over the forecast period through to 2014, it predicted that average annual GDP will growth 4.3%. With the population expected to increase by 9.8%, GDP per capita is predicted to rise from US$7,103 in 2009 to US$9,654 in 2014. Furthermore, it also forecast that consumer spending per capita will increase from US$1,961 in 2009 to US$3,197 in 2014. Moreover, Malaysia is classified as an upper-middle income country. According to the Department of Statistics Malaysia (DSM), the average consumer spending was MYR2,285 per month in urban areas and MYR1,301 per month in rural areas. With the urban population predicted to account for almost 76% of the total by 2015, according to UN data, this is likely to have a positive effect on retail sales.

Thirteen years ago, The Coffee Bean and Tea Leaf brought the art of coffee drinking and the world of gourmet grinds to the land of kopitiams and has since successfully integrated it into the fabric of the urban Malaysian’s lifestyle. Thirteen years later, there are over 54 stores in the east and west Malaysia. We can see that between this time period, Coffee Bean had rapidly growth. Besides, Malaysian today is also familiar with Coffee Bean compare to a few years ago. In the future, it is expected that Coffee Bean will continue to growth in Malaysia due to the changing lifestyle of Malaysian and other factors. INTRODUCTION

In year 1963, Herbert B. Hyman started The Coffee Bean & Tea Leaf ®. With a dedication to excellence and the quality of coffees and teas in the world, Herbert’s efforts made him the founding father of gourmet coffee in California. Now The Coffee Bean & Tea Leaf ® has grown into one of the largest privately-owned, family-run coffee and tea companies in the world. Besides, the endurance and popularity of The Bean attributed to the high standards that were established from the beginning. The Coffee Bean & Tea Leaf ® has discovered the formula for a...
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