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CHALL
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CASE ST
 SYNOPSIS

• Blitz – since 2005 – Johor Baharu

• Puan Rani (Rani)- husband (Mr.Siitumalai) is the founder of the home-based

business selling home-made Indian cookies, sweets and cakes using natural
ingredients and traditional recipe collected from family and friends. Rani is the
core of the business. Their business gloomed starting with one employee, slowly
increased to 6 employees until they progressed buying a lorry to deliver the
goods door to door. Besides selling homemade cookies, they also selling goody
bags and exchanging gifts for occasions like parties and weddings.

• After years (2012), Rani were diagnosed with terminal colon cancer has affected
the business very much. She requested the daughter, Hema, to lead the family
business to ensure its survival. Hema with no any experience and interest in
business, with a lot of problems on going to maintain the business, she has to
find some strategies to hold back and sustain the business.
HEMA’S PERSONAL CHALLENGES THAT
NEEDED TO FACE TO RECOVER THE BUSINESS

 Ex teacher with No prior experience in conducting running

the business
 A married woman with a child
 BLITZ BUSINESS -UNDER RANI’S MANAGEMENT

1) Product
- Local Indian homemade cookies, sweets and candies using natural ingredients and
raw materials available in market (laddu, kesari, jelebi, halwa)
- Traditional recipe collected from friends and family
- Variety of cookies and cakes with different flavors and designs
Services

- Caterings according to customer requirements

- Cookies gift and goody bags to give in ceremony – upon requirements
- Free door- door delivery within 20km
2) Employees
- 6 employees charged for production under Rani’s supervision
3) Packaging and Delivery
- Own packaging and design to cut cost by Rani and the husband
- Delivery in charged by the husband
4) Customers
- 5 main restaurants in JB and other small stalls
 REASON OF THE BUSINESS TO DROP- AFTER RANI DIAGNOSED WITH
TERMINAL COLON CANCER

 With no proper management system for 6 months, the business was dropped.
 No proper marketing training – all marketing based on own ideas
 Employees pulled off from the business due to 2 months unpaid salary and they have to
work over-time without proper pay.
 Sales decline and lack sufficient capital
 Late delivery orders make some of the major business supporter to pulled off (lose
customers)
 Could not agree to the agreement to supply large consent cookies for a period of time
 Production cost increased due to increased price in raw materials (sugar, fuel)
 Selling price increased
 Could not get loan from bank because bank prefer to provide load to SDN companies
than enterprises – and Blitz failed to show a growth in profit (risk for bank to give loan)
PROBLEM STATEMENT
 How to gain back the customers?
 What strategy should Hema consider to retain the existing
customer?

PURPOSE OF THE CASE STUDY

 To analyzing root cause of the business to drop
 Strategic solution to improvise the business within 6 months
 COMPETITORS

Big Bakeries
1. Gardenia Bakeries- famous for affordable price and having variety of bread items like
twiggies, muffin and ext. Holding record for low glycogenic and full of protein and fiber
- Spent huge amount to promote their brand thru different media
2. High 5- best known for their dietary healthy bread
- Spent huge amount to promote their brand thru different media
Small Bakeries – Family owned & Single Shop Owners
King confectionary / Season’s Confectionary / Bakery Bread story / Angle Cake House

 Family owned and single shop owners before develop expanding their outlet
 Marketing strategy: Relied on store plan where they arrange their products at the place
customer easy to see
 BLITZ LANDSCAPE COMPETITOR
MANGGALAM

 Produce traditional Indian Cookies (laddu, halwa, murukku) same like Blitz
 Have own building for manufacturing, packaging, arranging and taking orders
 Have delivery service but not door-to door
 Have own marketing team to promote their products nationally and internationally –
using big medias like radio station and internet
 Product available in big hypermarkets and easy for customer to purchase – Giant & Eco
save
 Export to Singapore restaurants and shops
 Well known in Johor Bharu and having 7 main restaurants in JB as customers
 ALTERNATIVES SOLUTIONS
• New packaging for the products
• Find and replace raw material – alternative raw material to maintain the cost
and pricing
• Promote new market like other races (Malay, Chinese)
• Cover up shops and restaurants that Manggalam didn’t cover
• Promote to sell in affordable branches shops like KK mart and speed 99
• Can consider to move other area’s – a bit farer from Manggalam
• Online marketing and sales
• Consider to employ house wifes/students work in part time to cover
production costs