Page 8 - Getting the Secret Recipe Right

6.0 'SMART' STRATEGY

Secret Recipe who is a household name under Group Umbrella, with outlets expanding

towards 10 Asia Pacific countries is currently practicing a commissary business model. This
business model includes ensuring the product consistency, stable production, simplified
operators, reduced rental costs and smaller retail footprint has makes them very competitive

and remain to be the leading brand in cake & café industry in Malaysia.

By using price lining and skimming strategy,
Secret Recipe can easily provide customers a clear

set of choices of flavors to choose and
management can creatively execute promotional

activities to attract more new customers.

For instance, an annually celebration, Secret

Recipe’s Merdeka promotion gives 62% off toward
the second slice of cake, in 2019. The terms also

include that it is only available for Cheese, Cream
Premium and Square cakes only. That make the
second slice of cake to be RM3.72, RM4.48 and

RM3.12 respectively.

In order to control its profitability, this kind of

promotion was executed for 1 day only, started
from 12pm – 5pm. This kind of promotion will give
market a perception that Secret Recipe is very

limited and expensive brand with premium
quality cakes, that only makes offer for very

limited time, and this is the opportunity to grab if
they are a new customer.

07 Geting the Secret Recipe right