MKT 243 Munchy’s Marketing Assignment PDF

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FACULTY OF BUSINESS AND MANAGEMENTUiTM KAMPUS REMBAU , NEGERI SEMBILANFUNDAMENTALS OF MARKETING (MKT 243)MARKETING PLAN FOR MUNCHY’SPREPARED BY GROUP CLASS OF BA111 2 F :1) SITI NAJWA BINTI MOHAMMAD MESLAN 2 0198113582) NUR SHAHIDATUL NAJWA BINTI KAMARUDIN 201926 52983) NUR ALIAH FATIN BINTI AMIR NO...

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FACULTY OF BUSINESS AND MANAGEMENT UiTM KAMPUS REMBAU , NEGERI SEMBILAN

FUNDAMENTALS OF MARKETING (MKT 243)

MARKETING PLAN FOR MUNCHY’S

PREPARED BY GROUP CLASS OF BA111 2 F :

1) SITI NAJWA BINTI MOHAMMAD MESLAN

2019811358

2) NUR SHAHIDATUL NAJWA BINTI KAMARUDIN

2019265298

3) NUR ALIAH FATIN BINTI AMIR NODIN

2019263358

LECTURER : DR NOOR AZAM ABD AZIZ DATE OF SUBMISSION : 10th JUNE 2020

STRATEGIC MARKETING PLAN OF MUNCHY’S

Contents Executive Summary …………………………………………………………………………………… 3 Company Description …………………………………………………………………………………. 5 Mission and Vision …………………………………………………………………………………….. 9 Goals and Objectives …………………………………………………………………………………. 10 Core Business Area ……………………………………………………………………………………13 SWOT Analysis …………………………………………………………………………………………15 Industry Analysis ………………………………………………………………………………………..17 Marketing Mix …………………………………………………………………………………………...19 Target Market …………………………………………………………………………………………...25 Market Strategy ………………………………………………………………………………………...26 Marketing Environment ………………………………………………………………………………..28 Conclusion ……………………………………………………………………………………………...30 Organizational Chart …………………………………………………………………………………..33 References ……………………………………………………………………………………………..35

We declare that this assignment is our own work and that we acknowledged all materials used from published and unpublished works of other people. All references have been duly cited.

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STRATEGIC MARKETING PLAN OF MUNCHY’S

Executive Summary In this report, we have indicated a few of our research and information about the significant part regarding the strategic marketing plan for this company ‘Munchy’s’ based in Malaysia. Munchy’s is one of the big and immense food processing companies that is located in Malaysia. It was founded by two brothers that seek their permission in wanting to form a company together in Malaysia. The two brothers were from the Tan family. They opened Munchy’s initial and first infrastructure at Batu Pahat Johor Baru. We have explained more details regarding Munchy’s company history and description in our reports. For further details, readers may read from the company description section. The mission and vision were also one of the main contents in our report that we have been working on. Munchy’s current mission regarding their previous chief executive officer which is C.K. Tan, He mentioned to The Star, Malaysia’s news company that their primary mission for Munchy’s is to produce various types of fun-eating snacks for every home, which is referring to every type of family from all over the world. He stated that Munchy’s aspire to expand their business globally by creating much more snacks that every kind of family gets to devour and enjoy. He also stated that they are trying to use Malaysia as a base and build Munchy’s into a world brand, instead of seeing more foreign brands coming into Malaysia, Munchy’s would like to step up in the business game by formulating certain strategies to ensure their success in the future ahead. The much more detailed mission and vision will also be explained with details and vividly in the “Mission and Vision “ content below. Their company goals and objectives were almost the same as their mission and vision. According to a blog, the Munchy’s main current marketing objectives is to include making communication with customers by generating and creating good promotions and expanded advertising. To shorten, the Munchy’s committee members and working staff have such a desirable passion within himself, they intended to go extra miles in making sure and guaranteed to achieve the company’s vision and goal. They also mentioned that their energy and enthusiasm enables them to excel in everything that they do.

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STRATEGIC MARKETING PLAN OF MUNCHY’S

Munchy’s core business area recently is to focus on producing multiple types of snacks such as biscuits, cookies and many more. They aspire to focus their business in ensuring that the foods that Munchy’s will be producing are affordable for every type of person in every kind of community.

In this report, we also specified Munchy’s strengths, weaknesses, opportunities and threat analysis. One of Munchy’s strengths is that they always emphasize that the produced delicious wafers are made from only the finest and top-notch ingredients. They only opt and choose the best ingredients for the best qualities for their product. In order to form and innovate the best snacks among its competitors, Munchy’s invests in every kind of possible way to generate the best-processed food in the world. Other types of analysis inclusive the industry analysis, will be specified and explained in much more further details in our reports below.

To sum up the summary for our reports, we could clarify and see how Munchy’s have been making full use of the social media platform in promoting their products. They advertise their company’s product through a television commercial, radio commercial, newspaper, magazine advertisement etc. Munchy’s have been initiating various kind initiatives and

strategies to ensure the company keeps growing stronger day by day. Their product is aimed at the teenagers and kids which are enriched with health sources, and halal which shows that the Munchy’s products are available and free from prohibited ingredients to Islamic consumers. We also mentioned the company;s marketing mix, strategies, marketing environment, and the organizational chart. To simplify, first and foremost Munchy’s current chief executive officer according to their official webpage is Mr Rodney Wong, he expressed that the Munchy’s will be implementing long term strategies for sustainable business growth and will be obliged for the overall management of group operations and department in Munchy’s Malaysia.

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STRATEGIC MARKETING PLAN OF MUNCHY’S

Company Description

Munchy’s is widely famous Malaysia’s brand that produces domestic kind of processed food which is a domestic and local-based biscuit brand which remains phenomenal among the Malaysian people because Munchy’s can be categorized as one of the Malaysians childhood snacks. Munchy’s were founded by two brothers from Johor Malaysia.C.K Tan and S.K Tan convinced their fathers in wanting to pursue and establish a company which involves foods and beverages in Malaysia. The Superbrands Status of the year 2003, 2004, 2005, 2008, and 2009 were awarded and achieved by the Munchy’s for over the years. During the year of 1997 until 1998, which is when Asian confronting financial crisis and conflicts, Munchy’s almost faced bankruptcy but fortunately the company survived and regained its revolutionary back from the Asian financial crisis and its revenue jumped from RM20 million in 1998 to RM50 million in 1999. According to a Nielsen Retail Index Corporate Value Share report in 2008, Munchy's was ranked and topped the category for Malaysia's No.1 homegrown biscuit brand in Semananjung Malaysia excluding the ‘Negeri Bawah Bayu’ which is in Sabah and Sarawak from June 2006 to 2008. Following the current polemic regarding covid-19 pandemic outbreak in the worldwide that starts off in the beginning year of 2020,Munchy’s did not mentioned any kind of new strategic plan that they are planning but through our scrutiny and detailed analyzation,we can perceive that Munchy’s will be able to cope with the current issue by generating new strategic idea within its holder and staff.However,we also can assume that Munchy’s product soon will be getting more acknowledgment and exposure within the local people and native people in Malaysia,this is due to Malaysian people stated that they would be glad to support and buy the local product in order for Malaysia’s brand to sustain its firm and company from facing any kind of big losses and such although we are confronting major economic problem due to this pandemic outbreak.A lot of blogs and newspaper showcases the Malaysian people plan on buying and consuming much more local products in order to support the Malaysia’s brand.

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STRATEGIC MARKETING PLAN OF MUNCHY’S

Furthermore, Munchy’s never stopped experimenting with their new potential products and innovations as it works towards maintaining and sustaining its position and eminence rank in Malaysia as the country’s most innovative, favourable and successful biscuit brand among its competitors. Munchy’s acquired the absolute research and development department that particularly put its priority and concentration for this aspect, so as to always stay at the vanguard and forefront of innovation. The company’s previous CEO, C.K Tan always believed in the power and privilege of good branding, automation and decent yet advanced technology system will allow the company to keep gaining benefits in a business. RM 500, 000 was disbursed and spent by the previous CEO of Munchy’s on its information technology systems for Munchy’s in 1997 and he had such beliefs that computerization will make the productivity of the company grow and expand more efficiently and coherently.

As mentioned from the company brand itself, Munchy’s is Malaysia’s No.1 homegrown biscuit brand that specializes in their food processing industry snacks such as wafers, wafer sticks, biscuit, crackers, sandwiches, plain sweet, chocolate-based & cookies, and assorted Munchy’s. We could verify that Munchy’s has grown since its birth in 1991 to become the nation’s No.1 wafer prominent producer and No.2 biscuit producer both in terms of the volume and value, The state of the art manufacturing facilities is in Batu Pahat, Johor, Malaysia. The Munchy’s Group dominant headquarter is located in Batu Pahat with corporate offices located in Klang, Selangor. Munchy’s also built another facility for their company in Ipoh, Butterworth, Johor Bahru, Kota Bharu, Kuantan, Melaka, Sabah, Sarawak and international offices in Shanghai, Singapore and Thailand. In line with its primary mission and vision to formulate and create all kinds of fun to eat snacks in every home and house, Munchy’s products can now be found and seen in approximately 60 countries around the world. Their main manufactured products include the edition of Munchy’s Cream Crackers, LEXUS sandwich biscuits, MUZIC Wafer, Oat Krunch and Captain Munch Cookies. Their company also can be found at roughly 20,000 outlets in East and West Malaysia as well as the major international hypermarket, supermarket chains, and local provision stores. The history of this company was initiated and established with two brothers SK Tan and CK Tan with their other siblings involvement and cooperation. Munchy's origin started its participation in the food processing industry business world in 1991, at a small town in the South of Malaysia, Batu Pahat.Johor.They formed the Munchy Food Industries in 1991 with an initial investment and capital of RM80,000. Munchy's production capacity increased by the year as the

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STRATEGIC MARKETING PLAN OF MUNCHY’S

brothers worked hard conspicuously towards their dream to share and spread the joys and blissfulness of Munchy's with the rest of the world. Munchy's first international expansion was South Africa located at Africa continent, the second largest continent in the world. Afterwards, in the time being, the brothers construct and inaugurate a partnership with a reputable MNC chocolate company that enabled and empowered them to extend Munchy's product offerings in including chocolate wafers as one of their products in the Munchy’s Group company.

In 1996, Munchy's factory was constructed in Johor, Malaysia with a wide area around 120,000 sq ft (11,000 m2) of real estate and fully automated wafer technology. Considered the most advanced fully automatic wafer plant in South East Asia to date, three new products were revealed and exposed to the consumers which are Muzic Wafers, Munchini Wafer Rolls and Lexus Biscuits. A 120,000 sq ft (11,000 m2) warehouse was commissioned to be built. Munchy's has recently adopted a new 3rd party logistics provider which will enable its business to be executed with "Speed to Market" distribution. All Munchy's products are manufactured merely and wholly under the brand name of Munchy's, with a record of 80 Stock-Keeping Units under their belt and obligation. In 1997, the world spectated and viewed the introduction and preliminary of MunchWorld Marketing Sdn Bhd, Munchy's marketing arm and sole distributor of Munchy's products. This entity was set up to lead and bring Munchy's branding, marketing, advertising, events, promotions and distribution to its very own best and success.

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STRATEGIC MARKETING PLAN OF MUNCHY’S

Location and Subsidiaries Headquarters Corporate Headquarters MunchWorld Marketing Sdn. Bhd. (201499-U) Centro Building, 23rd Floor, 8, Jalan Batu Tiga Lama, 41300 Klang, Selangor, Malaysia. Tel : +603-3344 7888 Fax : +603-3344 2266 Email : [email protected]

Group Headquarters Munchy Food Industries Sdn. Bhd. (220353-H) Lot 9366, Batu 7, Simpang 3, Tongkang Pecah, 83010 Batu Pahat, Johor, Malaysia. Tel : +607-415 3322 (Hunting Line) Fax : +607-415 2390 Email : [email protected]

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STRATEGIC MARKETING PLAN OF MUNCHY’S

Mission and Vision

Mission statement of Munchy’s “To provide fun, cheeky, yummylicious, and affordable biscuits and snacks for everybody around the world.”

Vision statement of Munchy’s “To be in the leading position in every country that we compete in.”

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STRATEGIC MARKETING PLAN OF MUNCHY’S

Goals and Objectives

Goals Every company has goals to achieve and the company has many goals. The company said that they want to become a highly recognised contract manufacturer for a local company and a successful brand with long term goals grew from a zero base level to become the largest Malaysian brand. The company wants to produce goods, use Malaysia as a platform and build its own brand, Munchy’s. Now the company achieved It took 10 years to get to where are today to be product local from Malaysia. Our next 10 years is to grow Munchy’s into a world brand. Munchy’s want to produce goods such as different types of biscuits Lexus, Cracker, Oat Krunch, Muzic, Choc-o, Captain Munch, Assorted to be the first snake choice consumer to take it. Munchy’s understanding of consumer needs in today's fast-paced world inspired the creation of its food that can be eaten on-the-go and can save time with the low prices. Most of its products come in sachet packs to give consumers convenience and freshness in every serving. The sachet pack is also an excellent solution for consumers looking for portion control in snacking ingredient

Objectives 1) Produce a variety of biscuits. To achieve the goals, the business must have the objectives to plan our strategy to get the goals long term. Munchy’s have allocated more funds for marketing to grow each overseas market in a big way with their own brand logo with the distinctive colours of Munchy’s red and white and still keep thinking on how to make the existing products better. The company Munchy’s has manufactured a variety of biscuits. The company Munchy’s has a factory to produce a variety of biscuits and the ingredient using that is recognised the importance of manufacturing only Halal products. And this dedication to preserving the sanctity of our products is reflected by our Halal status which they first received more than 10 years ago. They believe the presence of the Halal Committee further enhances our commitment to meeting Halal requirements and being Syariah compliant. Amongst they are to issue guidelines that reduce the risk of Halal non-compliance, enhance Halal awareness within the organisations. MIHAS (Malaysian International Halal Showcase), a globally recognised Halal trade show, is one such event in which they have successfully participated, and as the years progress, they will definitely be part of similar venerated activities and this part, therefore, Muslims and non-Muslims can buy it without any suspicion and guaranteed clean.

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STRATEGIC MARKETING PLAN OF MUNCHY’S

2) Set the price low-cost. Besides that, to take the competitive advantage the Munchy’s company set the price low-cost provider is used by a company Munchy's which secures a competitive advantage by serving a lower price than rival competitors. This idea is an integration of actions taken to produce goods or services with features that are acceptable by customers at the lowest cost compared to the competitors which just with features that are acceptable to customers. This strategy maintains present price, be content with present market share, and use lower-cost edge to earn a higher profit margin on each unit sold, thereby increasing total profits. Munchy’s mission is to bring joy and add flavour to every occasion with their high quality, affordable & funeating snacks. Munchy’s make an achievement in low overall cost by manufacturing nutritional biscuits in convenient packets as well as goods rivals.

3) Affect buyers to prefer Munchy’s product over the brand of rivals. Differentiation Strategy is an Action which sets an acceptable cost that lets customers perceive the difference on the produce goods or services. The objective of this strategy is to affect buyers to prefer Munchy’s product or service over the brand of rivals. On the other hand, it means that a company has to take an initiative such as creative ideas on what is important to the customer. Most recently Munchy’s was launched in response to the current trend and desire for healthy snacks. This kind of healthy snack filled with healthy and scrumptious ingredients on fruit, oats, and more, the Oat Krunch makes a delectable, healthy biscuit that one will reach out for any time of the day to make a daily snake. These recent additions products, Oat Krunch and Captain Munch have reinforced Munchy’s commitment to providing more great-tasting snacks that help consumers strike a healthy balance in their daily lives. With their product which differentiates in features cause their rivals not easily to copy or match. So, it may cause the buyers to prefer Munchy’s product or service over brand rather than rivals.

4) Management in company Munchy’s Next, the most important Munchy's to achieve goals is process in management with employees and managers implementation the goods requires support, discipline, motivation, and hard work from all managers and employees, Munchy’s has its own policies to operate on Munchy’s process to produce goods quality. Munchy’s prefer to focus on company and product development which boast a great range on producing its products with world-class quality goods and build a long term brand in Malaysia and overseas. To produce the high-quality product, Munchy’s has invested in a full-integrated conveyor system to the state-of-the-art warehouse

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STRATEGIC MARKETING PLAN OF MUNCHY’S

which have two wafer plants, four biscuit plants and four wafer-stick machines with 16 production lines to save time and can supply quantity demanded for consumers. With these systems, Munchy’s can have a maximum production capacity of 5000 tonnes upwards per month.Munchy's keeps up very strong it’s standing in Malaysia's most innovative biscuit brand to suit consumer taste, Munchy’s always looking at potential new products and innovations with any idea to create unique goods. Although Munchy’s has already a strong presence in Malaysia, it still continues to raise the bar by constantly strengthening their efforts to attract consumer attention and with by competing with other companies and product appeal and market networks in Asia and around the world. Besides that, Munchy’s confident that it is an effective brand building, and achieves this through its strategic consumer-led promotions. To achieve this, Munchy’s is regularly brand-building through their numerous innovations ...