FACULTY OF CREATIVE MULTIMEDIA

MMI3313 - MEDIA INNOVATION DESIGN PROJECT 1 DELTA 1 2013/2014

SITUATION ANALYSIS
PRODUCT/BRAND: MARRYBROWN SUBMISSION DATE: 16 JULY 2013

ROSE NISA MADIHAH BINTI AZIZAN 1102701231

TABLE OF CONTENTS

CHAPTER 1: PROJECT OVERVIEW 1.1 Introduction 1.2 Problem Statement and Issues 1.3 Objective and Aims

1 2 3 3

CHAPTER 2: PROJECT PROFILE 2.1 Product Name 2.2 Product Classification 2.3 Product Characteristics 2.4 Product Range 2.5 Distribution 2.6 Product Life Cycle 2.7 The Brand 2.8 Brand and Implication 2.9 Strength and Weakness 2.10 Advantages and Disadvantages 2.11 Unique Selling Preposition 2.12 Promotional History and Advertising Schedule 2.13 Positioning Statement

4 5 5 5 8 11 12 12 13 13 14 14 15 15

CHAPTER 3: THE COMPANY 3.1 Company Overview 3.2 Business Description 3.3 Company History 3.4 Key People 3.5 Location and Subsidiaries 3.6 Brands, Major Products and Services 3.7 Corporate Vision 3.8 Corporate Mission

16 17 17 18 19 20 22 23 23

3.9 Companys Current Promotional Strategy 3.10 Product Sales History 3.11 Current Marketing Objective 3.12 Media Expenditure

23 24 25 25

CHAPTER 4: CONSUMERS AND SKATEHOLDERS 4.1 Current Consumers Characteristics 4.1.1 Demographic 4.1.2 Psychographics 4.2 Stakeholders Characteristics 4.2.1 Primary 4.2.2 Secondary

26 27

28

CHAPTER 5: INDUSTRY AND MARKETPLACE 5.1The Industry 5.1.1 Definition of the Industry 5.1.2 Shape of the Industry 5.1.3 Development of the Industry 5.2 The Marketplace 5.2.1 Current Condition of the Marketplace 5.2.2 Changes in Marketplace

29 30 30 31 32 33

CHAPTER 6: COMPETITIVE SITUATION 6.1 Direct Competitors 6.1.1 Kentucky Fried Chicken 6.1.2 McDonalds 6.1.3 The Chicken Rice Shop 6.2 Indirect Competitors 6.2.1 Secret Recipe 6.2.2 Subway

34 35 35 36 37 38 38 39

CHAPTER 7: SWOT ANALYSIS 7.1 Strength 7.2 Weakness 7.3 Opportunity 7.4 Threads

40 41 41 41 41

CHAPTER 8: STRATEGIC TARGET AUDIENCE 8.1 Proposed Primary Target Audience

42 43

CHAPTER 9: RESEARCH DEVELOPMENT 9.1 Marketplace Research 9.2 Market Observation 9.3 Online Survey 9.4 Interview

44 45 47 48 55

CHAPTER 10: PRECEDENT STUDIES 10.1 Advertising Strategy 10.2 Precedent Studies

56 57 61

CHAPTER 11: REFERENCES

64

CHAPTER 12: APPENDICES

68

Chapter 1 Project Overview

Chapter 1: Project Overview

1.1 Introduction

Marrybrown is a success story built on great tasting recipes that are original and truly Malaysian. Always work on ways to make food, services, and franchise operation better to deliver the highest standard of quality across all levels of the business. Established in 1981, they now have over 400 outlets serving fried chicken, burgers, finger food, desserts and beverages. Marrybrown has extended the menu that offers exotic local delights, which has Seafood, Rice Base Products, Noodles and Porridge. A famous local Malay rice dish, Nasi Lemak is introduced to the menu as Nasi Marrybrown. Today, Marrybrown offers a broad selection of distinctive, innovative products targeted at the fast-food consumer. Chicken represents the core of the menu, including the signature Lucky Plate, Chicken Porridge, Nasi Marrybrown the 100% Black Pepper Chicken-A-Licious. And, because value is important to fast-food customers, the company also offers value-priced products on All-Time snacks, including muffins, burgers. Malaysian home-grown halal quick service restaurant operator Marrybrown Sdn Bhd has become the first international company to open an outlet in Myanmar. Marrybrown also planned to set up 15 outlets in Southern Thailand in three years. It intends to open 15 new outlets in Malaysia from June until December this year. At present, more than 400 Marrybrown outlets in Malaysia, China, Indonesia, India, Sri Lanka, Maldives, Tanzania, the United Arab Emirates, Kuwait, Qatar, Bahrain, Iran, Syria, Saudi Arabia and Azerbaijan.

1.2

Problem Statement and Issues

Marrybrown is known as a local fast food restaurant by surrounded international fast food restaurant such as Kentucky Fried Chicken, McDonald, and Carl Jr. In Addition, the issues are Marrybrown produce local fast food delight and the items on the menu are very limited than the international fast food restaurant. Marrybrown also do not give any promotional impact towards existing consumers in Malaysia. Besides that, these brand less promoting their product either in print media or mass media. This makes the consumer does not know of the existence of their new product release.

1.3

Objective and Aims

Objective To create awareness and introduce to consumers that Marrybrown restaurant is a local restaurant delight and the products are authentic, fresh and delicious than the international fast food restaurant. Aims To change the perception of consumers in a more positive towards of Marrybrown. To attract and introduces to customers about the local delight. To find out the best characteristic of Marrybrown for improvement competitiveness of new media product; TV commercial, promotional booth. To earn trust every consumer that Marrybrown is a brand that produces the original product from Malaysia.

Chapter 2 Project Name

Chapter 2: Project Name

2.1 Product Name
Local Fast Food Delight

2.2 Product Classification

Marrybrown restaurant is a Malaysia based fast food chain. Introduce a local delight fast food and is a favorite among locals, serves its own recipe of fried chicken enjoyed with rice and other side dishes.

2.3 Product Characteristics

Type: Classics Food, Burgers, Crispy Chicken CLASSIC FOOD

Nasi Marrybrown

Nasi Ayam Marrybrown

Chicken Porridge

Chick-O-Rice

Mi Kari Ayam Goreng BURGERS

Fish Fillet Burger

Chicken Burger

Hotuch Burger CRISPY CHICKEN

Tower Burger

Lucky Plate

Chick-A-Licious

Chicken Fillet

Chicken Nuggets

Packaging: Paper Box, Paper Cup Pricing range: Price Per Unit Burgers Special Food Classics Food Crispy Chicken Side order Ice Cream Beverage Product range: Product Single Burgers Chicken Burger Hotouch Burger Tower Burger Fish Fillet Burger RM 4.10 RM 6.80 RM 8.90 RM 6.20 Specials Lucky Plate Chick-A-Licious Crispy Chicken Fish n Chips RM 8.30 RM 10.90 RM 6.40 RM 11.90 Classics Nasi Marrybrown Nasi Ayam MB Mi Kari Ayam Goreng Chicken Porridge RM 7.30 RM 7.90 RM 6.90 RM 4.20 RM 8.90 RM 9.20 RM 8.90 RM 5.80 RM 10.10 RM 12.90 RM 9.80 RM 13.90 RM 7.60 RM 9.50 RM 12.50 RM 9.30 Pricing Combo RM 4.10 RM 8.90 RM 6.40 RM 11.90 RM 4.20 RM 7.90 RM 3.20 RM 45.95 RM 0.55 RM 10.35 RM 1.40 RM 3.40 RM 1.70 RM 3.80

Product

Pricing

Crispy Chicken Original & Hotouch 1 pc 2 pcs 5 pcs 9 pcs 15 pcs Variety Combo; Crispy Chicken, Prawn Fingers, Chicken Fillet, Fish Nuggets, Vegetable Salad, Mashed Potato and Pepsi Happy Combo; Crispy Chicken, French Fries, Vegetable Salad and Pepsi RM 44.50 RM 3.20 RM 6.40 RM 15.75 RM 28.20 RM 45.95 RM 46.80

Product A Chicken Burger, Fries & Iced Milo B Crispy Chicken, Fries & Iced Milo C Chicken Nuggets, Fries & Iced Milo

Pricing

MB Kiddy Meals Comes with a Gift

RM 8.10

Product Side Order A Chicken Nuggets B Fish Nuggets C Prawn Nuggets D Mashed Potato E Hawaiian Coleslaw F Vegetable Salad French Fries

Pricing

RM 5.70 ( 6 pcs) RM 10.35 ( 12 pcs)

RM 2.00 (R) RM 4.65 (L)

RM 2.90 (R) RM 3.50 (L)

Mambo Fries G Fragrant Rice H Sambal Rice I Bun Cheese

RM 4.20 RM 2.00 (each)

RM 0.55 (each) RM 1.00 (each)

Product Cold Drinks Pepsi Revive Mirinda Strawbery Root Beer Frost Mountain Dew 7 Up Orange Juice Lemon Tea Milo RM 2.90 (R) RM 3.80 (L) Float; 7 Up, Mirinda Strawberry & Root Beer Frost Mineral water Nescafe; Nestea; Milo Tea The tarik Coffee White Coffee RM 3.40 RM 3.60 RM 2.55 (R) RM 2.95 (L)

Pricing Hot

RM 1.70

RM 2.60 RM 2.90

RM 2.60 RM 2.90 RM 2.80

Ice Cream 1 scoop 2 scoops Jelly Ice cream Sundae Cup RM 1.40 RM 2.70 RM 2.40 RM 3.00 -

2.5 Distribution
Distribution Channel: Direct The company used a direct distribution channel such as to advertise and market directly towards consumer via variety of print and electronic mediums. Direct marketing campaigns focus on the consumer, statistical data generated of the marketer. Marrybrown has done some direct distribution channels to get in touch with their consumers. The company used social media such as facebook and website to promote the product to consumers. In addition, Marrybrown also do a television commercial for markups their product. After that, consumers will be interested and make them want to buy the product at Marrybrown restaurant that located throughout Malaysia.

2.6 Life Cycle

2.7 The Brand

According to Zazali Musa (20 May 2002, The Star), The husband and wife team of Lawrence Liew and Nancy Chan are the names to watch in the local and international fast food franchising fraternity. Like every other Malaysian, both of them love fried chickens and this has paid off for them through their company Marrybrown Sdn Bhd. The restaurants have fresh concepts and clean interior design and leaving a trail of fiery blaze throughout Malaysia. Marrybrown logo is a trademark of Marrybrown Sdn. Bhd. and fully owned by the mentioned company. The logo MB stands for Marrybrown and also Malaysia Boleh! Marrybrown has grown to be a popular quality brand that upholds its Good Choice Good Taste" motto. In addition, the company also has their own Mascot like "Chipmunk". To date, the company has gained its name in the Malaysia Book of Records as the first homegrown fast food company to go international via the franchising system. Liew is the executive chairman and chief executive officer while Chan is the managing director, and both of them hold similar capacities in Marrybrown International Fast Food.

The latter is responsible for the setting up of Marrybrown Fried Chicken outlets outside Malaysia through appointed master franchisees in the respective countries.

2.8 Brand Image and implication

Marrybrown is the largest homegrown fast food chain with a global reach of over 400 outlets in Malaysia, China, India, Sri Lanka, Tanzania, UAE, kingdom of Saudi Arabia, Kuwait, Qatar, kingdom of Bahrain. A winner of numerous awards, Marrybrown is fast expanding internationally ensuring that Marrybrown becomes a global food service organization and a worldwide brand. Marrybrown has the infrastructure, manpower, experience and expertise of international standards. Marrybrown is listed in the Malaysia Book of Records as the First Malaysia Fast Food Franchise and listed with the Franchise Development programmed under the Ministry of Entrepreneur Development Malaysia. We are pioneer member of the Malaysia Franchise Association and also a member of the Malaysian Retailer Chains Association.

2.9 Strength and Weakness

Strength: 1st Malaysia Fast Food Franchise Located at Shopping Malls, Hypermarkets, Theme Parks, Airports, Hospitals, Petrol Stations, Free Zones and commercial areas. Attract consumer with local food. Highest quality foods that fullfill halal standards Affordable price

Weakness: Bad customer service Limited menu Lack of promotion Local brand

2.10 Advantages and Disadvantages

Advantages: Malaysian F&B franchises are encouraged to emulate Marrybrown's successful footsteps to take advantage of the market share Marrybrown is a company that proudly owned and managed by one of the Malaysian. The brand has always emphasized on halal products serving millions of guests world-wide. Disadvantages: The foods consumer purchased do not taste same in each franchise and the ingredients are not so good. Marketing division is very slow. Not take the opportunity to promote their brand to consumer. The services provided are not satisfied the customers which need a better satisfaction services.

2.11 Unique Selling Preposition

Marrybrown is a local fast food restaurant that served with local delight food made by order.

2.12 Promotional history and advertising

Marrybrown Great Malaysian Chicken MyMemory TVC Contest M.M.M... Makan. Menang. Main Marrybrown Branding TVC Contest Car n Cash Marrybrown Bling Bling Cups give away Marrybrown TVC Oleraya Contest Marrybrown Eat for Cash

2.13 Positioning statement

Marrybrown is an all-time favorite fast-food chain to develop and expand the concept of Something Different experiences. Marrybrown has always emphasized on halal products serving millions of guests world-wide and targeting families within age range 7 to 50 years old.

Chapter 3 The Company

Chapter 3: The Company

3.1 Company Overview
Marrybrown Sdn Bhd was established in 1981. We are Malaysian owned and today Marrybrown is growing internationally with over 400 restaurants throughout Malaysia, Indonesia, China, India, Sri Lanka, Tanzania, UAE, Saudi Arabia, Bahrain, Qatar, Kuwait, Azerbaijan, Syria and Iran. The popularity of the brand and the products has contributed in making it the country's largest homegrown fast food chain. Marrybrown has the infrastructure, manpower, experience and expertise of international standards. Marrybrown is listed in the Malaysia Book of Records as the First Malaysia Fast Food Franchise and listed with the Franchise Development programme under the Ministry of Entrepreneur Development Malaysia. We are pioneer member of the Malaysia Franchise Association and also a member of the Malaysian Retailer Chains Association.

3.2 Business Description

Marrybrown is proud to be Malaysian owned and operated. Founded in 1981, Marrybrown is the largest home-grown Quick Service Restaurant chain with a global reach of over 400 outlets in Asia, Middle East, and Africa. Marrybrown has a unique position in the QSR market that makes us an exciting opportunity for the right potential franchisees: A winner of numerous awards, Marrybrown is fast expanding internationally ensuring that Marrybrown become a global food service organization and a worldwide brand. Currently Marrybrown in Dubai, India, China, Indonesia, Sri Lanka, Saudi Arabia, Kuwait, Kingdom of Bahrain, Syria, Republic of Iran, Tanzania, Qatar, Azerbaijan , Malaysia and Maldives. Marrybrown is currently 82% franchised, and yet offering exceptional acquisition and development opportunities, including entire areas of the Malaysian and international markets. If looking for the right franchise opportunity, Marrybrown have great

opportunities for both domestic and international markets. Take a look at what areas are currently available.

3.3 Company History

Year 1981 Decsription First fast food brand local restaurant opened in Johor Bahru, Johor, Malaysia. 1986 Launch franchise system itself. Now Marrybrown restaurant chain onwed local subsidiary in Malaysia. 1989 Introducing marrybrown rice anda fast food restaurant featuring local first flavor in Malaysia. 1992 1994 1995 1996 Marrybrown opens first international; branch in China. Chipmunk mascot introduced. Starting a community service project with Kiwanis Malaysia. First in Malaysia restaurant with interior design; introduced with Swing Seats. 1997 Being the first local franchise was awarded the international franchise Malaysia, followed by other awards in the subsequent year. 1998 Recorded in the Malaysia Book Of Record at the first local fast food franchise 1999 Introduced spicy crisp chicken hotouch Penetrated the India market Opening the highest branch in Genting Highlands, located about 6000 feet above sea level. 2000 2001 2002 Penetrated the Middle East market. Introducing satay dish. Opens first marrybrown restaurant in hospital; Johor Specialist Hospital, Johor Bahru 2003 Introducing the latest local taste; chicken porridge.

2006 2008 2009 2010

First Marrybrown restaurant at the airport; Senai Johor. Penetrating the African continent. Introducing the latest local taste; Curry chicken noodle & Satay burger. Prime Minister Datuk Seri Najib Tun Razak officiates the 10th anniversary of Marrybrown, UAE. Opened the first marrybrown restaurant at petrol station; Esso Sendayan, Negeri Sembilan.

2011 2012 2013

Celebrating 30 years of full-flavor & fun; towards excellence. Penetrated The Golden Land, Myanmar. Celebrating the 500th restaurant open in Coimbatore, India; Marrybrown Race Course Road.

3.4 Key People

Founder: Lawrence Liew and Nancy Liew Name Lawrence Liew Nancy Liew Liew Hup What Ong Siew Chong Teoh Su Wann Joshua Liew Lawrence Lau Title Chairman Group Managing Director Director/Manager Director Secretary Business Development Manager Senior Operative Manager

3.5 Location and Subsidiaries

Location Head Office: No.3 & 5, Jalan Dewani 3 Kawasan Perindustrian Dewani 81100 Johor Bahru Johor, Malaysia. Phone: +607 331 6590 Fax: +607 333 7899 Email: qsr@marrybrown.com

Kuala Lumpur Office: Unit No.20-3, 3rd Floor 3 1/2 Mile Square 151 Jalan Kelang Lama, Batu 3 58100 Kuala Lumpur, Malaysia Phone: +603 7982 4890 Fax: +603 7982 4904 Email: qsr@marrybrown.com

Listing Restaurant MB Batang Kali MB KLIA MB GM Plaza Klang MB Berjaya Times Square Selangor MB Kepong MB Sunway Lagoon, Petaling Jaya MB Giant USJ, Subang Kuala Lumpur MB Hang Kasturi, Bangunan Mariamman MB South City Plaza, Serdang MB KidZania Activity Establishment

MB Kepong Brem Mall

MB Pudu Sentral MB TAR College MB HQ, Kawasan Perindustrian Dewani, JB MB Batu Pahat MB Econsave Kluang MB Johor Jaya, JB MB Kip Mart Masai, Pasir Gudang MB Kulai MB Segamat MB Southern City MB The Store (Pandan), JB MB Bandar Penawar MB Esso Kluang MB Air Biru, Pasir Gudang MB Pekan Francais, Pulai MB Kompleks Bas Shahab Perdana, Alor Star MB Langkawi Parade

MB NSK, Jalan Kuchai Lama Johor MB Angsana, JB MB Bukit Gambir, Muar MB IOI Mall, Kulai MB Kelapa Sawit, Kulai MB Kip Mart Kota Tinggi MB Kulai Utama MB Senai Airport MB Todays Market, Masai MB Tangkak MB Kluang BCB MB Mersing MB Pengerang Kedah MB Souq Al-Bukhary Commercial Centre, Alor Star MB Changlun Kelantan MB Gua Musang Melaka MB Melaka Mall Negeri Sembilan MB Centre Point, Seremban MB Terminal 2 MB Kuala Pilah Pahang MB First World Plaza MB Bandar Pusat Jengka MB Temerloh Penang MB Ivory Time Square

MB Kenanga Wholesale City

MB Bandar Tenggara, Kota Tinggi MB City Square, JB MB Caf@JSH, KPJ JB MB Kip Mart Tampoi, JB MB Kota Masai, Pasir Gudang MB Pontian MB Simpang Renggam MB The Zon JB MB Plaza Tasek MB Pelangi, JB MP Pekan Nenas, Pontian MB Ayer Hitam, JB MB Langkawi Airport

MB Amanjaya Mall, Sg Petani MB Kuala Krai MB Atfamosa Melaka

MB Kota Bahru MB Giant Melaka Cheng MB Mydin Mall Jasin MB Bahau MB Sendayan, Seremban MB Kipmart Senawang MB Cameron Highlands MB Theme Park, Genting Highlands MB Raub MB Bukit Jambul

MB Nilai 3 MB LCCT Airport

MB Jerantut MB Triang Pahang

MB Carrefour Minyak, Seberang Perai MB Giant Tambun

Bukit

MB Bagan Serai

Perak MB Batu Gajah

MB Greentown, Ipoh MB Teluk Intan Perak MB 1 Borneo, KK MB Megalong Mall, KK MB Batu Niah, Miri MB Kuching, Airport MB Mors Jaya, Miri

MB Ipoh Parade MB Ipoh Mydin Meru Sabah MB Bandaran Berjaya, KK MB Labuan Sarawak MB Bau, Kuching MB Miri, Bintang Megamall MB Mukah

MB Sungai Siput

MB KKIA Airside, KK

MB Bintulu MB Miri Airport MB Satok, Kuching

3.6 Brands, Major Products and Services

Marrybrown is a success story built on great tasting recipes that original and truly Malaysian. They are always working on ways to make our food, services, and franchise operations better to deliver the highest standard of quality across all levels of the business. Products Fast Food Services Fast food services School of QSR Franchise Burgers Cold & Hot Beverages Dessert Fried Chicken Kiddy Meals

Brands Marrybrown Sdn. Bhd

3.7 Corporate Vision

To be a national restaurant company of most admired brand through the power of our people and our culture

3.8 Corporate Mission

Passion for our brand Food Quality and Safety Continuous Improvement and Innovation Care & Respect and Personal Accountability Excellence in Customer Service High Standards in Personnel Growth and Development through Consistent Training Excellence through High Q.S.C.V

3.9 Companys current Promotional Strategy

2012 2011 Contest Marrybrown Eat for Cash Contest Car n Cash Franchise International Malaysia Exhibition 2012 Marrybrown and the Rotary Club charity Run Marrybrown All-Star Competition 2012 Contest M.M.M... Makan. Menang. Main

3.10 Product Sales History

Financial Year End Unqualified Reports (Y/N) Consolidated Accounts (Y/N) Date of Tabling

31/12/2011 Y N 30/06/2012 BALANCE SHEET ITEMS

31/12/2010 Y N 20/06/2011

Non-Current Assets Current Assets Non-Current Liabilities Current Liabilities Share Capital Reserves Minority Interests

5, 239, 798.00 17, 082, 904.00 3, 381,087.00 10, 768, 900.00 1, 725, 000.00 6, 447, 715.00 0.00 INCOME STATEMENT ITEMS

3, 189, 044.00 14, 885, 977.00 2, 098, 584.00 10, 591, 230.00 1, 725, 000.00 3, 660, 207.00 0.00

Revenue Profit/ (Loss) before Tax Profit/ (Loss) after Tax Net dividend Minority Interests

29, 531, 112.00 1, 430, 537.00 1, 231, 965.00 -100, 000.00 0.00

23, 264, 603.00 451, 906.00 257, 103.00 0.00 0.00

3.11 Current Marketing Objective

Long term To become one of the most well known local fast food delight restaurant in the future and to beat the existing competitors. Becoming the first Malaysian quick service restaurant to set up an outlet at foreign country. To expand the brand and product outside the country. Planned to set up other outlets in Southern Thailand in three years and 16 outlets in Myanmar in five years. Short term To expand outlets business in Malaysia To improve the product quality for each outlets. To maintain produce four products in a year. To build profitable businesses. To get in touch with consumers for the purpose of promoting.

3.12 Media Expenditure

In term of advertising and promotion, Marrybrown usually carry messages and influence to consumers by referring to are websites, newspapers, magazines and social media such as Facebook and Twitter. In this way, consumers will be more quickly and faster to get any information from the company.

Chapter 4 Consumers and Stakeholders

Chapter 4: Consumer and Stakeholders

4.1 Current consumers characteristic
4.1.1 Demographic Age Gender Education Occupation Income Range Race and Ethnicity Geographic Location : : : : : : : 4 - 35 Male and Female Kindergarten, Primary school and above Student, Working Adults RM 500 RM 5000 Malay, Chinese Urban and Sub-urban area

4.1.2 Psychographic Perception Learning Motivation and needs Attitude and personality Lifestyle : : : : : Consumer who enjoying local delight food Printed and mass media Authentic, fresh and delicious meal Loyal to the local delight taste Families and love local food.

4.2 Stakeholders Characteristics

4.2.1 Primary Chairman The highest officer of Marrybrown such as a board committee, or deliberative assembly. The person holding the office is typically elected or appointed by the members of the group. Board of Directors A person appointed to serve on the board of an organization, such as an institution or business. To ensuring the availability of adequate financial resources, approving annual budgets and an accounting to the stakeholders for the organization's performance. Employees To retain a surrounding where its staffs come first; holding its staffs up-todate on restaurant industry trends, hospitality principles and Marrybrown promotional activities, as well as marketing and PR efforts.

4.2.2 Secondary Media Carry messages and influence to consumers. To maximize overall awareness, the advertising must reach the maximum number of the target consumers. Consumers The group of consumers those are most vital to Marrybrown. The study of conducted has concluded that the common age group spending the maximum on eating out.

Chapter 5 Industry and Marketplace

Chapter 5: Industry and Marketplace

5.1 The Industry

Food & Beverage

Restaurant Fast Food
Local delight

Marrybrown

5.1.1 Definition of the industry The food & beverage industry is usually defined by it output of products, to satisfy the various demands of food & drinks of people. But it doesnt include the manufacturing of food & drink and its retailing. In todays world, the food & beverage service industry has expanded a lot and nowadays, it is serving more than 100 million meals per day. The basic function of this industry is to serve food & drink to people, to satisfy their various types of needs. The main aim is to achieve customers at is faction. These various needs play a major role in deciding the factors responsible for defining the different type of service methods in food & beverage service industry. According to Michael Liew (Business Director), fast food, originated to cater to people with a fastpaced lifestyle. It is defined as pre-prepared food offered by quick-service restaurants. From the moment you join the queue, it usually takes less than five minutes for you to get your meal.

5.1.2 Shape of the industry Malaysias food and beverage sector is increasingly sophisticated and influenced by health and convenience trends. Consumer awareness in nutrition value and food fortification for healthcare has created the demand for functional, minimally processed fresh, organic and natural foods. Consumers are also brand conscious and demand convenience and variety, including where they source the items. According to Retail Group Malaysia, 60 per cent of retail food sales are made through the traditional grocery and specialty stores. The retail food and beverage sector is worth US$15.69 billion and will grow to US$21.17 billion by 2015. Malaysias multicultural ethnic mix (Muslim, Chinese, Indian and Malay) enjoys a wide variety of food and food ingredients from across the world. With 60.4% of the population of Islamic faith, Malaysia is a market for Halal food as well as being a hub for re-export to other Muslim countries. The concept of Halal is associated with food products which are of high quality in terms of cleanliness, sanitation and compliance with religious requirements. Malaysia is working with the Organisation of Islamic Conference (OIC) countries to promote the Malaysian Halal Standard. The estimated value of the Halal food industry globally is between US$600 billion and US$2.1 trillion. Fast food has always been notorious for being detrimental to our health. When asked how Marrybrown addresses this issue, Michael Liew (Business Director) responded that they have a nutrition chart that details the ingredients of the food presented in all Marrybrown outlets. This helps the consumer to make an informed decision about what to eat. He also reassured us that Marrybrown strictly follows the specifications set by the government, noting that they declare everything honestly and are a certified Halal food chain. The homegrown fast food chain is currently the worlds largest Halal Quick Service Restaurant (QSR) brand originating from Asia. Marrybrown has a strong international presence with outlets operating in Malaysia, China, Indonesia, India, Sri Lanka, Maldives, Africa, the Middle East and Myanmar. The halal menu features a wide variety of tasty meals including Crispy Chicken, Delicious Satay Burger, Nasi Marrybrown, Speciality Wrap, Fish n Chips, Mi Kari, Chicken Porridge, finger foods, salads, fun fries and a range of hot and cold beverages and desserts.

5.1.3 Development of the industry Malaysia, with a population of around 27 million, is one of the most developed nations in Southeast Asia. About 61% of its population falls into the middle to upper income group of consumers; with Gross Domestic Product (GDP) per capita income of over US$6,000. Its economy has a firm foundation that includes strong manufacturing, service and agricultural sectors. GDP for 2009 was estimated at -3.6% due to the effects of global economic downturn but 2.5% GDP growth is expected in 2010. The Malaysian food and beverage market is becoming increasingly sophisticated and is supplied by both local and imported products. The strong economic growth in the late 80's and early 90's contributed to major changes in consumer purchases and consumption patterns. Malaysians living in urban areas are relatively brand conscious, and they prefer to shop in stores, which offer them convenience and good product selections. Despite all of the potential, there remain distinct challenges for U.S. exporters of consumer food products. Though consumers are demanding greater variety and quality in their foods, they are generally price sensitive towards such purchases. Accordingly, retailers often purchase food items that are more affordable to the majority of the consumers. Countries that are closer to Malaysia have a faster delivery time and lower freight cost to Malaysia compared to U.S. exports. Importers and distributors supplying mid to high-end establishments will often purchase at the lowest price from any exporter or country, more like commodities. With a Muslim population of 60%, the demand for halal foods by Malaysian consumers has increased over the years. The expectation of halal standard in food products have extended from meat and meat products to non meat-based products such snacks, confectionery, dairy, bakery, etc. Halal is fast becoming recognized as a new benchmark for quality, hygiene and safety. Food products and ingredients that have halal certificates have added marketing value in Malaysia. Hence, most retailers, foodservice operators and food manufacturers are inclined to ask for halal certificates for non-meat based food products and ingredients.

5.2 The Marketplace

5.2.1 Current condition of the marketplace Malaysia has a sizeable and rapidly growing food service market today. Sources from the trade estimate the food service market today is valued between US$ 4.9 billion to US$ 5.5 billion today. The food service market has been growing at a rapid average rate of around 6.5% per annum over the past five years. They indicated that this market is likely to grow at between 7%-10% per annum over the next three to five years. Malaysia has a large and growing food retail market that is supplied by local and imported products. The current total retail sales of food and beverages are estimated at US$11 billion. The forecast for this sector is likely to grow by around 10% per annum over the next three to five years. Malaysian households spend an average 24% of their household income on retail purchase of foods. Due to rising affluence and higher education level, Malaysian consumers have become more sophisticated and demand higher quality for the goods that they purchased.

5.2.2 Changes in Marketplace Positive Food and beverage in Malaysia has their own attraction to grab many people to come at to their restaurant. They provide a complete meal and facilitate consumers to enjoy the food in their daily life. It is also very easy to found a in Malaysia. Negative Consumers in Malaysia believe that fast food is not only synonymous with the American lifestyle, but also had its origins in the United States, and that it is a modern phenomenon.

Chapter 6 Competitive Situation

Chapter 6: Competitive Situation

6.1 Direct Competitor
6.1.1 KFC

KFC began with Colonel Harland Sanders. He discovered his penchant for cooking when he was only 9 years old. Through the years he grew up to become a personage the world knows as Colonel Sanders, founder of KFC. He reached celebrity status in 1952, when he decided to franchise his famous Kentucky Fried Chicken recipe blends of 11 herbs and spices to the rest of America. By the early 70's, that special recipe reached Malaysia. Today, KFC Malaysia continues to serve finger lickin' good, succulent pieces of chicken. The flavorful blends of 11 herbs and spices give KFC's delicious aroma. With the chicken's natural juices sealed-in, leaving a special mouth watering taste that cannot be replaced. KFC prides itself as a fast-food restaurant that give customers great tasting chicken with a selection of home-styled side dishes and desserts to make a wholesome, complete and satisfying meal. Special Features - Kick-start your day with the new KFC a.m. Zinger Porridge served with our signature Zinger fillet and crunchy tortilla chips. Price ranges - RM 4.20 - RM 71.75 Advertisement - Cinema Classifications (Malaysia), KFC 40th Anniversary Promotion That's Why KFC Tastes Sogood, KFC Mexicano Fiesta Dance - JJ and Ean (Hitz.fm)

6.1.2 McDonald

McDonald's first made its way to our shores in December 1980 when McDonald's Corporation, USA gave GOLDEN ARCHES RESTAURANTS SDN BHD the license to operate McDonald's restaurants in Malaysia. We in Malaysia got our first taste of McDonald's when McDonald's Malaysia opened its first restaurant at Jalan Bukit Bintang, Kuala Lumpur on 29 April 1982. To date, McDonald's Malaysia has more than 200 restaurants located nationwide and is currently expanding at about 20-25 restaurants annually. McDonald's Malaysia employs more than 12,000 local people. The company was named as AON-Hewitt Best Employers in Malaysia in 2009 and 2011, as well as AON-Hewitt Best Employers in Asia Pacific in 2011. Special Features - Something Prosperous is coming your way this 7th December 2010 Products - Burgers, Chicken, French Fries, Beverages and Desserts. Price ranges - RM 5.95 - RM 24.90 Advertisements - McDonalds July Special Promotion, Story of Sofiah & Nasir, Ronald McDonald House Charities, Good Employer

6.1.3 The chicken rice shop

"The Chicken Rice Shop" (TCRS) is a chain of HALAL family restaurants operated by TCRS Restaurants Sdn Bhd, a company incorporated in Malaysia. TCRS is a quick service restaurant that provides the customer a comfortably cozy environment to dine in as well as convenient take away services for those on the go. We pride ourselves in providing friendly quick service for all our customers. The Chicken Rice Shop also provides catering services for special occasions. With grandmother's traditional secret Hainanese chicken rice recipe brought down from generations and maternal grandmother's treasured recipe from Penang, the best of both grandmothers' recipes were perfected and introduced into the menu. As our name suggests, "The Chicken Rice Shop" serves traditionally prepared steamed, roasted, honey barbecued or braised chicken as its signature products. These signature dishes are served with fluffy chicken flavored rice cooked to perfection from a recipe passed down through the generations, originating from Hainan Island. Special Features - Now you can order food from The Chicken Rice Shop online at www.foodpanda.com.my! Food Styles - Local dishes; Hainan chicken rice, dessert Price Ranges - RM13.99 RM94.99 Advertisement - The Chicken Rice Shop TV Commercial 2013

6.2 Indirect Competitors

6.2.1 Secret Recipe

Founded in 1997, Secret Recipe made its mark, renowned for its extensive range of fine quality gourmet cakes. It has since evolved to become one of the fastest growing lifestyle cakes and caf chain in the region with over 280 caf outlets to date. Secret Recipe Cakes & Caf's concept can be found in prime urban locations and shopping malls in major cities in the region including Singapore, Kuala Lumpur, Jakarta, Bangkok, Manila, Brunei, Shanghai and Melbourne. Secret Recipe promises a value lifestyle proposition of great variety and quality food at affordable prices. The uncompromising quality of food and desserts using quality ingredients, coupled with moderate pricing, has created a new lifestyle cult, compromising of a loyal base of food and cake lovers. Secret Recipe Cakes & Caf offers a friendly and personalized full-service dining experience for customers and incorporates a modern contemporary and vibrant interior concept with comfort ambience, and great food. Special Features - Tea time promotion is only valid at selected outlets in Peninsular Malaysia. Type - Fusion Products - Food, Desserts Price Range - RM 5.90 - RM 78.75 Advertisement - Secret Recipe Malaysia on Channel 8tv (2010)

6.2.2 Subway

Subway offers foot long and 6-inch sandwiches, made on freshly baked bread and prepared just as you want it, right before your eyes with a wide assortment of meats, cheeses, vegetables and toppings. We also offer wraps, delis and salads, potato chips, freshly baked cookies and choice of drinks to make every visit a fresh one. With more than 39,000 locations in 102 countries, the Subway brand is the worlds largest submarine sandwich franchise, and has become a leader in the international development of the quick service restaurant industry. Subway restaurants first ventured outside North America when the first location opened in the small Middle Eastern island nation of Bahrain in December of 1984. Since then, the Subway concept has gone around the world, with restaurants opening from Argentina to Zambia. Wherever Subway restaurants are located, the core menu stays relatively the same - with the exception of some cultural and religious variations. World travelers can expect the same high quality of ingredients regardless of what nation they are visiting. You can enjoy a foot long Turkey Breast Sub, with your choice of a variety of vegetables and condiments served on bread baked right in the restaurant in Jamaica, then travel to New Zealand and get the same foot long Turkey Breast Sub! Special Features - Subway Fresh Combos Promo Products - Freshly baked bread, foot long Price Range - RM 7.50 and above Advertisement - Subway Chicken Tandoori Radio Ad (English & Chinese)

Chapter 7 SWOT Analysis

Chapter 7: SWOT Analysis

7.1 Strength
1st Malaysia Fast Food Franchise Located at Shopping Malls, Hypermarkets, Theme Parks, Airports, Hospitals, Petrol Stations, Free Zones and commercial areas. Attract consumer with local food. Highest quality foods that fulfill halal standards. Affordable price.

7.2 Weakness
Bad customer service Limited menu Local brand and local food delight. Lack of promotion. Low employees turnover.

7.3 Opportunity
Will offering exceptional acquisition, including entire areas of the Malaysian and international markets. Malaysias homegrown fast food franchise with a global outlook. Marrybrown will track record of success and growth potential. Offer different option and menus of fast food.

7.4 Threads
More competitors from international fast food restaurant. Health problems concerning the fast food chain. Additional restaurants that are growing their food offering and decreasing the rate of food offering.

Chapter 8 Strategic Target Audience

Chapter 8: Strategic Target Audience

8.1 Proposed Primary Target Audience
Demographic Age Gender Education Occupation Income Range Race and Ethnicity Geographic Location : : : : : : : 25 - 45 Male and Female Higher and lower level academic Blue and White Collar worker RM 500 and above Malay, Chinese, India Urban and Sub-urban area

Psychographic Perception : Consumers that interested with local delight food. Learning Motivation and needs : : Influence by social media and friends. Independent people; know how to make their own decisions. Attitude and personality Lifestyle : : Expect positive outcome, social Traditional and modern lifestyle, follow the latest trend, enjoying their life.

Chapter 9 Research Development

Chapter 9: Research Development

9.1 Marketplace Research
MB Giant Hypermarket, Subang Jaya.

B South City Plaza, Persiaran Serdang Perdana.

9.2 Market Observation

I made the observation in two different places. The first location is in Giant Hypermarket Subang Jaya. Mission to locate this restaurant is very easy because it is exactly located in the Giant and next to a parking garage. The second location is at MB South City Plaza, Persiaran Serdang Perdana. The restaurant is a little difficult to find as it is located in the lower ground floor. Restaurant has less consumer's attention due to non-strategic location and hidden. Giant Hypermarket Subang Jaya South City Plaza, Psiaran Serdang Perdana Restaurant opened on 31st January 2013 There are 2 section likes indoor and outdoor section. The modern look and comfortable environment. Have a large space and can accommodate many consumer. Customer mostly comes with family, parents and young children. Most of them ordered Nasi Marrybrown as known as Nasi Lemak and Chicken Porridge. The restaurant peak hours only on lunch/dinner hour and weekend only. For this restaurant, customer comes eat with their family and friends. Most of them ordered Lucky Plate; Crispy Chicken with mashed potato, mixed vegetable and fries. The restaurant peak hours in the evening only. Have a small space and looks like being in era 60s restaurant. Restaurant opened on 15th January 2005 Only 1 section; indoor.

9.3 Online Survey

1) My gender is

Male Female

27 35

44% 56%

2) My range age is

20 and under 21-29 30-39 40 and over

11 47 2 2

18% 76% 3% 3%

3) Do you eat fast food?

Yes No

62 0

100% 0%

This question is to investigate consumers frequency of eating fast food or not. The result show: Most of the consumers do eat fast food, with the highest percentage of 100%.

4) How many times do you eat fast food in one week?

0 1 2 3 More than 3

3 33 14 3 1

6% 61% 26% 6% 2%

This question is to investigate total consumption on consumer of fast food intake in a week.

Most of them just take a fast food meal once a week, with the highest percentage 61 per cent. And only 2 per cent take fast food meal more than 3 days.

5) Do you know Marrybrown?

Yes No

60 2

97% 3%

The question is to investigate brand awareness of Marrybrown in the market. The result shows: Mostly, 97 per cent of consumer knows the existence of Marrybrown restaurant. Only 3 per cent do not know Marrybrown.

6) From where do you know Marrybrown?

Magazine/Newspaper Radio/TV Commercial Social Media Friends or Family Never Other

10 11 6 19 1 15

16% 18% 10% 31% 2% 24%

This question to investigate where consumer know about Marrybrown. The result shows: Most consumers can know the existence of Marrybrown from their friends and family. 7) Do you know where to find Marrybrown restaurant?

Yes No

35 27

56% 44%

This question to investigate whether consumer knows where to find Marrybrown restaurant, the result shows: The higher percentage is 56%, majority they knows where to find Marrybrown restaurant and only 27% do not know where the restaurant.

8) What do you usually order in Marrybrown?

Nasi Marrybrown (Nasi Lemak) Nasi Ayam MB Chicken Porridge Crispy Chicken Burger Never

5 9 4 15 15 14

8% 15% 6% 24% 24% 23%

This question to investigate what are consumer usually order in Marrybrown. The result shows: The famous delights at Marrybrown restaurant are Crispy Chicken and Burger. Nasi Marrybrown and Chicken Porridge get the lowest interested form consumers.

9) What other menus do you prefer to have at Marrybrown restaurant?

Pizza Hot Dog Dessert (Smoothies, sundae) Salad

10 17 24 11

16% 27% 39% 18%

This question is to investigate what other menus do consumers prefer to have at Marrybrown restaurant. The result shows that: Consumers more prefer smoothies and variety of sundae than pizza hot dog and salad.

10) In your opinion, what does Marrybrown need to improve?

More menu Radio/TV Commercial Printed Media Promotion

17 18 3 20

27% 29% 5% 32%

Other

6%

This question is to investigate think that Marrybrown need to improve. The result shows that: Most of the consumers suggest that Marrybrown should do a promotion because without promotion, Marrybrown will not go anywhere in this industry. After that, Marrybrown has to improve on their radio and television commercial.

9.4 Interview

I personally met the Manager MB Giant USJ, En Mohammad to asked for the information about Marrybrown. Although he was busy with his work, I asked him a few questions such as the existence of the company, who create and develop Marrybrown, the history, sales history and many more. Some of the information is private & confidential but after all, he still anticipated answering my questions. Besides that, I was allowed to sit and make the observation at the Marrybrown.

Chapter 10 Precedent Studies

Chapter 10: Precedent Studies

10.1 Advertising Strategy
The media is the most powerful device in the PR scene and Marrybrown as a restaurant. This PR campaign will only be effective through the comprehensive use of numerous publications and media organizations. Social Media Profiles Establishment: endure to develop information and content for the Marrybrowns Facebook fan page and official website.

Hari Raya Promotion

Contests

Flyers

Banner/Cover Photo

TV Commercial This is Marrybrown TVC. The TVC is promoting Crispy Chicken.

10.2 Precedent Studies

Kentucky Fried Chicken (KFC)

Contest

Promotion

Breakfast Threats

McDonalds

Contest

McDelivery

The Chicken Rice Shop

Special Menu

Food Online at foodpanda.com.my

Chapter 11 References

Chapter 11: References

Suruhanjaya Syarikat Malaysia (SSM), Products of SSM e-Info Services http://www.ssm.com.my/en/e-Info-Mainpage, (n.d.) Bursa Community, Marrybrown scores a first in Myanmar http://www.bursacommunity.com/t14383-marrybrown-scores-a-first-in-myanmar, July 1, 2013 Content Desire, PR Campaign for Marry-brown http://zohaibsunesra.blogspot.com/2011/12/pr-campaign-for-marrybrown.html#.UeQbYdJmh8E, 2011 Halal Exporter, Listing - http://www.halalexporter.com/listing/marrybrown-friedchicken-sdn-bhd.html, (n.d.) Malaysia food beverage, Company http://www.malaysia-foodbeverage.com/food_list/Company/m/Marrybrown/index.htm, (n.d.) Bursa Malaysia, Announcement http://announcements.bursamalaysia.com/EDMS%5CAnnweb.nsf/LsvAllByID/4825 68AD00295D074825755B0033BAA5?OpenDocument, 2009 Malaysia Airport Niaga, Malaysia Airports Niaga Opens First Marrybrown in KLIA http://www.airportshopping.com.my/index.php/news/48-malaysia-airports-niagaopens-first-marrybrown-in-klia.html, February 16, 2012 Isaac Tan, Marrybrown Restaurant Genting Highlands http://www.isaactan.net/2011/07/marrybrown-restaurant-genting-highlands.html, 2011 Zoom Info, Co-Founder and Managing Director http://www.zoominfo.com/p/Nancy-Liew/463678154, (n.d.)

New Straits Times, It's time to enjoy a Fortune Burger http://www.nst.com.my/streets/johor/it-s-time-to-enjoy-a-fortune-burger-1.207141, January 25, 2013

The Star by Zazali Musa, First homegrown fast food firm to go global, May 20, 2002 Malaysia Franchise Association, Food and Beverage http://www.mfa.org.my/?franchise:marrybrown, (n.d.)

New Sabah Times, Marrybrown opens new outlets! http://www.newsabahtimes.com.my/nstweb/fullstory/46399, February 20, 2011

iSearch.com.my, Company Details http://www.isearch.com.my/company.php?company_id=118, (n.d.)

Business Times by Cheryl Yvonne Achu, Marrybrown to spread its wings http://www.btimes.com.my/Current_News/BTIMES/articles/20120805233647/Articl e/, August 6, 2012

New Straits Times, Homegrown fast food chain http://www.nst.com.my/channels/niexter/homegrown-fast-food-chain-1.181778, December 5, 2012

Haveeru.com.my, Picture Gallery: Marrybrown opening http://www.haveeru.com.mv/pictures/3298, September 24, 2011

Marrybrown Sdn Bhd Website - http://marrybrown.com.my/ Marrybrown Sdn Bhd Facebook - www.facebook.com/MarrybrownMalaysia KFC Website - http://www.kfc.com.my/ KFC Facebook - https://www.facebook.com/KFCMalaysia McDonalds Website - www.mcdonalds.com.my McDonalds Facebook - https://www.facebook.com/My.McDonalds

The Chicken Rice Shop Website - www.thechickenriceshop.com The Chicken Rice Shop Facebook - https://www.facebook.com/thechickenriceshop Subway Website - mys.subway.com Subway Facebook - https://www.facebook.com/SubwayMalaysia Secret Recipe Website - www.secretrecipe.com.my Secret Recipe Facebook - https://www.facebook.com/SecretRecipeMsia

Chapter 12 Appendices