Vvvvvery Yummy

Business Model

 

      After we have visited Ming Chu Bah Kut Teh (MCBKT), we identified that the business model uses by MCBKT is viral marketing. Viral marketing is a marketing technique that uses to advertise using social network technology (Marketing Schools, 2012) to increase in brand awareness. It can be delivered by word-of-mouth through Internet and mobile networks. A Facebook page based location for MCBKT is available whereby customers will get to know their exact shop location and customers can check in if they are dining in the shop. Customers can post photos and positive comments about taste, price and service of the foods. This can easily and widely spread in Facebook and others will get to know the performance of MCBKT shop.

 

      From the perspective of value proposition, the viral marketing has a high credibility and influential in the market. Advertisement in TV program requires a large amount of money and the duration of the advertisement is only last for few seconds. Moreover, people tend to forget the content of advertisement quickly and the effect is short term based. Therefore instead of doing advertisement through TV program, MCBKT has the positive word-of-mouth that is spreading among the customers in the social media. This method has higher reliability source because of the spread is among the users’ friends and the feedback are facts after they experienced it in the shop.

 

      MCBKT sells their Bah Kut Teh for RM8 per pax which is a reasonable price for the customers. The price involved employee wages, materials cost and utilities fees such as rental. Early in the morning, the owner of the shop will go to market and get the fresh materials such as pork, internal organs, ribs and herbs. Thus there is no doubt that the price set by MCBKT is not reasonable. Moreover, MCBKT earns revenue not by selling Bah Kut Teh only, there are also other side dishes such as vegetables, tau geh, you tiao and chinese tea that can be served together with Bah Kut Teh.