Ramly Marketing Plan PDF

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Ramly Marketing Plan (SWOT, Economic, PEST)...

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Ramly Burger’s International Marketing Plan MKW3444 Wednesday, 2pm Prof. Yunus Ali

Darren Low Ruey Xuen (28097564) Yong Xin Wong (27949206) Chan Jia Yi (28865359) Chin Pei Yie (28844726) Leo Giovanni (29292875)

Executive Summary Everyone loves burgers, be it expensive or cheap, healthy or unhealthy (usually the latter), and chicken or beef, burgers are for everyone, young and old alike. Therefore, in this report, we will be analysing Malaysia’s favourite burger, the Ramly burger, and propose Ramly to penetrate the Australian market. Using the SWOT analysis, we find that Ramly is in a strong position to start business in Australia due to the opportunities being abundant and threats relatively easy to deal with. Not only that, we analysed several environmental factors that might help us in creating successful strategies and avoiding certain taboos. We have also analysed three different market entry strategies and decided on the usage of franchising to further the Ramly business in Australia. Using the marketing mix, we discuss several marketing strategies that Ramly can utilize to greater their impact in the Australian market, and these strategies include referral and loyalty programs, standardizing and adapting the product wherever necessary. Lastly, we identify several challenges that Ramly might face in Australia, and one of the challenges is due to the core nature of the Ramly burger, its Halal certification.

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Executive Summary ................................................................................................................... 1 Introduction ................................................................................................................................ 4 Company Analysis ..................................................................................................................... 5 Strength .................................................................................................................................. 5 Weakness ................................................................................................................................ 5 Opportunities .......................................................................................................................... 5 Threats .................................................................................................................................... 6 Environmental Analysis ............................................................................................................. 7 Political/Legal Factors............................................................................................................ 7 Economic Factors ................................................................................................................... 8 Sociocultural Factors .............................................................................................................. 9 Language, Values and Attitudes ......................................................................................... 9 Religion .............................................................................................................................. 9 Market Entry Strategy .............................................................................................................. 10 Alternative Method: Joint Venture ....................................................................................... 10 Alternative Method: Licensing............................................................................................. 11 Chosen Method: Franchising ............................................................................................... 12 Marketing Strategies ................................................................................................................ 14 Product ................................................................................................................................. 14 Price ...................................................................................................................................... 14 Promotion ............................................................................................................................. 15 Place ..................................................................................................................................... 15 People ................................................................................................................................... 15 Process .................................................................................................................................. 16 Physical Evidence ................................................................................................................ 16 Budgeting Plan……………………………………………………...……………………..16 Challenges ................................................................................................................................ 16

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Conclusion ............................................................................................................................... 17 Reference List .......................................................................................................................... 18 Appendices ............................................................................................................................... 23

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Introduction In this report we introduce an elaborate marketing plan for Ramly Food Processing Sdn Bhd (Ramly) to expand into a pre-selected foreign market, Australia. Through the usage of several methods such as the in-depth analysis of the company as well as the foreign market, market entry strategies and marketing strategies, we build the foundation for Ramly to start operations in Australia, as well as taking note of the various challenges Ramly might face in this endeavour. Ramly specialises in providing clean and quality Halal products that are easily purchased in affordable price in Malaysia. Even though Ramly products are considered cheap, they still target consumers of various attributes, even the wealthy, and that is because their main goal isn’t to serve affordable food, their main goal is to produce and provide consumers with halal, clean and quality food (AsiaSentinel, 2012). Burgers were introduced to Australia in the early 1900s. Since then, it has taken root in Australia’s food culture, even giving birth to a new type of burger preparation method, the Australian burger, or a Burger with The Lot (Fleischaker, 2013). As of March 2016, the burger business in Australia has grown to reach a yearly revenue of $4.2 billion (Goodman Fielder Food Service, 2017), and we will be banking on this rise in popularity of burgers to introduce our Malaysian style of cooking burgers to the Australian community. Not only that, with the FTA signed between Malaysia and Australia, exporting to Australia will be easier and affordable since Australia has removed all tariffs and import duties on imports from Malaysia. (Duncan, 2013)

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Company Analysis Strength Ramly has been operating since 1980 and is already well established in its origin country, Malaysia. This means that Ramly can expand without needing to concern about its operation in Malaysia. The brand recognition among Southeast Asians also allow Ramly to already have a place in that particular market’s heart outside its origin country. Ramly’s product has acquired Halal certification which ease Ramly to target Muslim market around the globe. Another strength that Ramly owns the experience in international marketing as the company has already expanded to more than 6 countries outside Malaysia. As such, allow Ramly to acknowledge the potential obstacles they may face in international expansion, as well as how to tackle the problems.

Weakness Lack of staff professionalism is one of the main problems faced by Ramly in Malaysia. The inability to provide trainings and quality control to stall owners may hurt Ramly service quality in their customer’s perception. The next weakness is the lack of advertising, where it may reduce the brand recognition where it leads into the next weakness which is the unhealthy perception towards burgers in general. The low product recognition may lead Australian customers to perceive Ramly burger as just a normal fast food instead of a healthy and convenient food. This create challenges for Ramly as the company need to shift the perception of the target market which is not an easy task and may need plenty of time.

Opportunities It is a huge opportunity for Ramly that there is a trend in the “burger culture” in Australia. This information gives them the assurance, that they have a chance to be successful in Australia since Ramly is selling burgers (Colangelo, 2019). With further research, statistics showed that as of year 2016, just the burger industry in Australia itself, has gained about AUD4.2 billion (Brown, 2019). This tells the firm that the market is not dying, and the population in Australia is still interested in consuming burgers, thus the industry is worth

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investing. It is also known that Australia is the eleventh biggest country that is spending on fast food (Markey & Watson, 2019).

Threats Externally, any business will have foreign exchange risk, so as Ramly. For instance, if Ramly wanted to convert their profits from AUD to MYR, the firm will have to speculate and monitor over the exchange rate, and the firm can convert whenever the exchange rate is in their favour (Bogota, 2019), as well as obeying the Australian laws. For instance, the Australian corporate tax laws where businesses operating within Australian require to pay up to a 30% corporate tax rate. This is somewhat considered a threat because compared to doing business in Malaysia itself, which the Malaysia corporate tax rate (24%) is slightly less than Australia (Bogota, 2019).

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Environmental Analysis Political/Legal Factors The enactment of Malaysia-Australia Free Trade Agreement (MAFTA) in 2013 has increased market access and secured tariff reduction for international trading between Australia and Malaysia (AUSTRADE, n.d.), where Australia has eliminated 100% import duties on Malaysia imports (Malaysia Free Trade Agreement, n.d.). The trade barriers reduction offers Australia and Malaysia business a greater business opportunity. In addition, Ramly could leverage such opportunity for Ramly to access Australia in lower costs. Moreover, Australia has strict food regulatory system, posing challenges to foreign food organization like Ramly that aims to export their frozen patties into Australia. For instance, Ramly has to labelled the ingredient source of their patties in the lodged documentation, as the more precise information, the more effective inspection processes are. Moreover, the imported frozen patties must meet Australia’s biosecurity and food safety requirements thereby to obtain import permits (Victoria State Government, n.d., City of Melbourne, n.d.). Hence, Ramly needs to comply the definitive guidelines, rules, regulations (i.e. Food Standards Australia New Zealand (FSANZ), Imported Food Control Act 1992, Food Act 1984, Biosecurity Act 2015) and processes of Australia in order to acquire permit for importations and food truck operation in Melbourne. Ramly can only grant access to food truck permit registration once both of its’ food truck premises and food safety program (i.e. require to nominate food safety supervisor) has met the FSANZ requirements. Consequently, the operation is bound up red tape and regulations, makes starting up new business more challenging for many mobile food operators in Melbourne.

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Economic Factors According to Australian Bureau of Statistic (ABS), Australia anticipated a population growth by 1.6% in which net oversea immigrants accounted for 60.8% of the growth. Amongst the immigrant’s population, Asia countries such as China, India and Malaysia dominated the younger age cohort (Appendix 3&4). According to ABS, a shrinking GDP per capita, flat overall CPI and an unemployment rate that edged up to 5.0% were observed from late 2018 to 2019 indicated a stalled economic growth. Despite its stalled economic growth, an increase of 1.3% on food consumption against the flat overall CPI was observed in first quarter (Q1). Food consumption accounted for 16.8% of the overall CPI constituted as the second most important CPI indicated that Australian placed high valence on this aspect. Such trends are favourable for penetration of expatriate like Ramly into the budget food industry via joint venture and franchising. Feature of low start-up cost and reduced associated risk with JV and franchising are more preferred than wholly owned business during this recession. Ramly may tap into this opportunities and venture into the budget food industry by setting up food trucks that associated with reduced start-up cost which enables adoption of competitive pricing strategies that compete against expensive delicacy offered in restaurant and cafes during this recession period.

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Sociocultural Factors Language, Values and Attitudes In Australia, English is regarded as the de facto national language (Sawe, 2018). In Census 2016, a dramatic growth in Mandarin, Cantonese and Arabic native speakers is worth to take into consideration. Hence, it is essential for Ramly to incorporate a multilingual wording into menu, promotion efforts and ingredient labels to not lose out this growing population. However, it is of utmost importance for Ramly to exercise cultural sensitivity when incorporating multilingual wordings in business due to arise in ‘un-Australian’ issue (i.e language usage other than English). Council also proposed a policy that foreign language on signage must not exceed 30% of its English equivalent. Such incidents also disclose insights on attitudes of Australian population towards foreign business (Stamatovski, 2018).

Religion According to 2016 Census, the diverse source of immigrant was reflected in the increase of non-Christianity typically dominated by Islam (2.6%) and Buddhism (2.4%) over a span of 10 years (from 5.6% to 8.2%). Besides, young adults were more to be non-religion (39%) and inclined to affiliated with non-Christianity (12%) as compared to older age cohort. Such shift in religion is also favourable for Ramly as it is a halal meat burger that caters for needs of growing Muslims population.

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Market Entry Strategy Alternative Method: Joint Venture (JV) Partnering up with another established company in Australia, sharing ideas, expertise and resources, taking on the risks and rewards of the venture, it all sounds nice and viable, but this strategy will not be our main strategy when entering Australia’s markets. This is all because of the main issue of all JV, which is finding a reliable, capable, and trustworthy partner to start the venture with. One of the proposed companies to start a JV with is Fettayleh Foods, which is a halal meat provider. The reason why we proposed to start a JV with them is because the size of their business is relatively the same as Ramly, they can provide insights on the Australian market and also provide the most expensive parts of a Ramly burger, the halal meat. The benefits of starting a JV is as said above, getting to know the foreign market better by learning alongside our partner company, sharing risks so we don’t lose everything if the business fails, getting to access and share greater resources such as technology, staff and finance (NiBusinessInfo, 2018) Even though these benefits are appealing, there is just simply too much involvement required, as well as deeper research on the proposed company to identify whether or not they can provide equal experience, expertise, assets and investment into the JV, and this is all provided that the company is actually interested in going into a JV with us (NiBusinessInfo, 2018). Not only that, a partner’s trustworthiness and reliability can’t be researched and only can be found out once it’s too late. Therefore, JV is an option for us but not the best option.

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Alternative Method: Licensing First of all, looking at the narrow definition of licensing, Contractor (1981) defined it as “permission given to another firm to engage in an activity otherwise legally forbidden to it” (Mottner & Johnson, 2000). Of course, the licensee will have the benefit of rights of using the patents, trademarks, etc given from the licensor (Pros and Cons of Licensing Agreements, 1965). Considering in the long run as well, if the licensor were to have future innovation, the licensee would also have future acquiring rights to whatever licensor's innovation (Pros and Cons of Licensing Agreements, 1965). Without a doubt, the licensor will have their own advantages as well in terms of their research and development costs are more dispersed to licensees, little capital investment is needed, and restrictions and regulations are little to deal with when entering to an unfamiliar market (Pros and Cons of Licensing Agreements, 1965). Dealing with the disadvantages, to even start doing business through licensing, it is always about monetary payments whereby the licensor requires initial payment to set up the agreement, and same goes to the licensee wanting monetary payment from sales revenue (Pros and Cons of Licensing Agreements, 1965). The licensor's main disadvantage - especially investing in foreign markets - is that in the long run it will be more difficult for the licensor to continue investing directly as the firm needs to consider future government restrictions, and increasing competition from competitors as well as the competence of the licensee (Pros and Cons of Licensing Agreements, 1965). In the case of Ramly, it would not be wise for the firm to choose licensing as their mode of entry to enter the Australian market, considering the fact that the company wants to maintain its quality of serving burger, and licensing cannot deliver that sort of maintenance. Although Ramly has the benefit of not having to worry about the capital investment, they will put themselves at risk of external disadvantages having to face competition with the licensee and other Australian competitors.

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Chosen Method: Franchising Franchising lies upon one of the export-based expansion where parent company (franchisor) grants other business entity (franchisee) the rights to use its’ business trademark and business model in exchange for large amount of franchise fee, training costs and yearly ongoing royalty fees, (Czinkota & Ronkainen, 2011), typically 50% (Goldberg, n.d.). This in turn Ramly could tap into such opportunities to venture into the global market in a more costeffective way as it involves minimal capital investment thereby associated with lower risk (Czinkota & Ronkainen, 2011). Franchising is chosen over other market entry methods is mainly due to the incorporation of local franchisee in better understanding of linguistic and cultural differences in Australia market (Bindea & Madsen, 2018). Hence, they are able to provide adequate knowledge about the about needed adaptation to Australian market more effectively (in term of time and costs) than other international companies. Master franchising system (MFS) is preferable approach for Ramly international expansion to Australia. MFS is generally referring to Ramly sells its’ franchise to one local master franchisee. With this, Ramly is able to control the master franchisee alone, and not have to deal with many franchisees at once. In contrast, may potentially create its’ own competitors in the Australia market if Ramly intend to enter the market directly without going through franchising. MFS occurs when the qualified master franchisee to set up number of geographically dispersed food trucks serving the Australia market (Ling, n.d.). In which, franchisee could leverage such opportunity to increase Ramly’s brand awareness and recognition through opening up dispersed food trucks ...