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Table of contents

Content Page

Research Topic 2 Objectives 3 Background/Overview 4-5 Methodology 6

Presentation and Analysis of data 7-10 Conclusion 11 Recommendation 12

Bibliography 13 Appendices 14-17

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Topic/Issue/Problem

An assessment of the re-introduction of Kiss Cake on the Jamaica Biscuit Company’s

profit margin over a one-year period.

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Objectives
1. To determine how the reintroduction of kiss cake has impacted the profit margin of the

Jamaica biscuit company.

2. To evaluate customers views to the reintroduction of the kiss cake to the Jamaican

market.

3. To what extent does the re-introduction of the Kiss Baking Company affect the

unemployment rate in Jamaica.

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Background/Overview

The Jamaica Biscuit Company was originally Jamaican owned, established by Lionel

DeMercado and Alfred DaCosta with John Crook of the United States (Gleaner, 2014).

Their factory was one of the first of its kind to be established in Jamaica and was located
at 2 Church Street, Kingston 11.In the years to come the Jamaica biscuit company went

on to branch off and develop sub companies, one of which is the kiss baking company.

The Kiss cake company and the Jamaica biscuit company are combined but have

different production lines, name and logo.

The Kiss Cake Company was established in 1978 in Trinidad and Tobago (Jamaica

Observer2014). Kiss cake was originally manufactured in Trinidad and Tobago by Kiss

Baking Company and was imported to Jamaica anddistributed by the Jamaica Biscuit

Company (stratmatters, 2015). It then became a popular product loved by most Jamaicans

due to the demand, which caused the company to grow and increase in profits. The

product then disappeared and has been off the shelves of supermarkets for more than a

decade leaving a void in the market. That gap was partially plugged when honey bun

launched “Goldie” – a light sponge cake injected with vanilla cream, similar to the kiss

cake. This did not prevent customers from wondering why the product came off the

market and why weren’t they informed.

This topic is important my teammates and I because the disappearance of the product for

over a decade has caught our interest. Now in recent years it has been re-launched on the

market. Due to the disappearance of the product, this created a negative impact on

Jamaican customers. As a business student who studies marketing and the demand and

supply of goods and services, we would like to conduct this research to find out the how

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the re-introduction of Kiss cake had affected the Jamaica Biscuit Company and the

unemployment rate in Jamaica.

The Kiss BakingCompany purchases raw materials internationally and must pay for

materials in US currency. This means that these imported new materials will now become

more expensive and drives up the cost of production. As a result, the final cost to

consumers will increase and cause a decrease in demand.

Recently the government had increased the amount that corporations need to pay in taxes.

This would cut back on profit earned by Kiss Company. Fuel costs have also risen and
 cause an increase in the distribution cost for kiss. This will ultimately drive up the cost of

production and will heavily impact the business. Due to this, customers will have to brace

themselves for an increase in price for the kiss products. The closing of the company also

caused some Jamaicans to lose their job thus increasing unemployment. If the issue is

ignored, then the supply for cream-filled cakes will be a missed opportunity for the

Jamaica biscuit company in that their productivity and product margin will not be

maximized. This will therefore decline the potential growth of the company and by

extension the economy. It will also not allow for Jamaicans to become employed and thus

this potential growth will not be realized.

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Methodology

In completing our (SBA) School-Based Assessment we used questionnaires and secondary

sources to collect our data for the research. Secondary information was gathered from books and

newspaper articles. We also used the internet to gather information for this research. Secondary

sources were used because it allowed us to gather relevant information at a convenient time. This

was done by utilizing our school library in conducting the research using books, newspapers and

the internet. A questionnaire is an instrument that is used to collect data from a group of persons

over a short period of time. The researchers issued nine (9) questionnaires to assist us in

gathering our information which consisted of ten (10) closed ended questions where respondents

provided a direct response. We chose to use closed ended questions so that we could get direct

answers to the questions asked. This would make in analyzing the information easier. We handed
the questionnaires to the employees and customers and waited on them to answer them, then we

collected them. The issuing of the questionnaires took placed on January 9,2019 where we went

as a group to visit the Kiss Baking Company.

We chose to use this method for our data collection because these questions give a direct answer

which will give more precise information. On the other hand, there were some challenges

experienced regarding the collection of our data where some of the employees did not want to

answer the questionnaires given to them.The employer refused to give data on the sensitive data

and when it was time to go to the company some of the group members refused to go. The

information will be presented by using a graph to show our data which will also be presented in

percentage.

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Presentation and Analysis of Data

Figure 1 showing responses to the question Does the kiss cake taste better then they were before

the company closed?

Figure 1 shows the response given to us by the respondentsof 33%, believing that kiss cake tastes

better than they were before the company closed 33% saying they did not taste better and 33%

saying they taste slightly better.

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Figure 2 showing responses to the statement I would like to see the company producing different

products.

Figure 2 shows that consumers and the employees are in agreement that they would like to see

the company producing different products. 67% of consumers agree and 33% strongly agree,

while 0% disagree and 0% strongly disagree.

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Figure 3 relates to the prices of the kiss cake products by asking if the prices of kiss cakes are

reasonable.
Figure 3 show a series of responses given to us with 44% of people in agreement that the prices

of kiss cakes are reasonable, 22% strongly agree while 33% disagree and 0% strongly disagree.

Qualitative data based on the objective of the impact of Kiss Baking on the Jamaican

unemployment rate.

Based on secondary sources that Operations manager of Kiss Cakes Manufacturing, Rory

Mitchell, told the Jamaica Observer

that the company now with the re-introduction seeks to provide

employment for an additional 100 people once the new facility becomes

fully operational. “Kiss Cakes are now manufactured in Jamaica at a

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new state-of-the-art facility that was recently completed and is now being

fully commissioned. We have over the years had numerous requests for

Kiss Cakes from our customers and this encouraged us to make the

investment,"

Mitchell stated in an e-mailed response to the Business Observer

(Jamaica Observer, 2014, par 2-5)

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Conclusion

The findings of our three objectives are as follows:

1. 66% of the respondents believe that the kiss cake prices are reasonable. Due to this finding

it is safe to say that people will continue to demand kiss cakes which will maximize their

sales and subsequently their profits.

2. Only 33% of the respondents believe that kiss cake tasted better before the re-introduction.

The researchers conclude that the customers perception have changed in a positive way,

because persons now prefer the new taste and flavours.

3. The response by the Operations manager Mr. Rory Mitchell cements the fact that the re-

introduction of Kiss Baking Company has decreased the unemployment rate in Jamaica.

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Recommendation

As it relates to our findings there were some recommendations that we would like to suggest to

the company.
 1. The company should make different/new flavor of kiss cake to be sold to consumer who

do not prefer the other two flavors but would like to purchase the product so that they can

make profit. It is of note that while conducting this research and forming this

recommendation the Kiss Baking Company launched four new flavours which the

customersenjoy.

2. Another recommendation is that the company should lower the price of the product and

place it at a suitable cost range for profit and purchase. With lower prices customers will

purchase more of the products which will in turn increase demand and their profit.

3. In addition, the company should advertise their products better so that consumers can

know that the product isback on the market. This will increase demand and influence the

company to supply more. With increased supply the company will employ more people

as they expand their production.

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Bibliography

● Belto, R., (January 21, 2018). Blast from the Past. The Gleaner. Retrieved on March 23,

2019. http://jamaica-gleaner.com/article/art-leisure/20180121/blast-past

● Bennett, K., (January 31, 2017).Kiss cake’s new manufacturing plant to employ

100.Jamaica Observer. Retrieved on March 10, 2018.

www.jamaicaobserver.com/business/Kiss-Cakes-new-manufacturing-plant-to-employ-10
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● Freethinkers868., (June 18, 2012) Kiss Baking Company Limited: An Internal and

External environment analysis.Stratmatters.wordpress.com. Retrieved onMarch 10, 2018

https://stratmatters.wordpress.com/2017/10/16/kiss-baking-company-limited-an-internal

and-external-environment-analysis/

Appendices
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CONSUMER QUESTIONNAIRE

Please place a tick in the appropriate spaces

Gender :( ) Male ( ) Female

1. Which flavor kiss cake do you prefer?

( ) orange ( ) coconut

( ) chocolate ( ) brownie

2. Do you enjoy the quality taste of the new flavor (Brownie)?

( ) yes ( ) no
3. Does the kiss cakes taste better than they were before the company closed?

( ) yes ( ) no

( ) slightly

4. Has the package of the kiss cake product changed?

( ) yes ( ) no

5. If “yes” do you prefer the new package

( ) yes ( ) no

6. Which new flavor would you recommend to the kiss cake company?

( ) pineapple ( ) grape nut

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( ) raspberry ( ) guava

7. Would you like to see the company producing different products?

( ) Agree ( ) Strongly Agree

( ) Disagree ( ) Strongly Disagree

8. If “yes” what other kind of products?

( ) rum cake ( ) wine slice

( ) cake ( ) others

9. Should the kiss cake company have healthy dessert for consumer?

( )agree ( ) disagree

( ) strongly agree ( ) strongly disagree

10. Is the price of the kiss cake reasonable?

( ) Agree ( ) Strongly Agree

( ) Disagree ( ) Strongly Disagree

11. If “no” what is a better price

( ) $50-$65 ( ) $65-$75

( ) $75-$80 ( ) $80-$95

12. Do you think the size of the kiss cake is satisfactory?

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( ) Unsatisfactory ( ) Average ( ) satisfactory
 EMPLOYEE QUESTIONNAIRE

1. how was the company profit gains then before closure?

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( ) normal ( ) supernormal

( ) abnormal

2. Were more flavors added to the kiss cake products in previous, years?

( ) yes ( ) no

3. What is the employment rate now as opposed to previous years?

4. What is the reason for the kiss cake company re-opening?

5. Has the price decreased from how it was before the company closed?

( ) yes ( ) no

6. Does the kiss cakes taste better than they were before the company closed?

7. Are they any new ingredients being put into the kiss cake?

( ) yes ( ) no

8. Does the company add more variety of products than before? If yes state why, if no state why?

( ) yes ( ) no

9.What was the sales of the kiss cake company then?

( ) poor ( ) normal

( ) supernormal

10.What are the sales of the kiss cake company now?

( ) poor ( ) normal ( ) supernormal

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