MKW1120_Assignment 2

MKW1120 Assessment 3

1 COMPANY BACKGROUND

Fraser and Neave Holdings Bhd (F&N) is one of Malaysia’s oldest companies and its brand enjoys the rare distinction of being a market leader and household name in many categories. The company currently leads the market for soft drinks in Malaysia with a whopping 36.5% off-trade value for 2014 as reported by Euromonitor International (Euromonitor, 2015). An epic feat considering the fact that F&N only manufactures and distributes its carbonated products within Malaysia without exporting to other countries.

Their success can be attributed to the large sales of their 100 plus line of carbonated energy drink and the F&N Fun Flavour assorted carbonated drinks, both of which holds the top position in terms of off-trade value percentage between the year 2011-2014 as reported by Euromonitor International. The company also offers other non-carbonated drinks in their Seasons and Fruit Tree line of soft-drinks.

F&N manufactures and distributes its products across all states in Malaysia and is located in Shah Alam. More information can be found about the company and the products they offer from http://www.fn.com.my/.

2 TARGET MARKET

The largest selling soft drink product for F&N has been their 100Plus line of drinks, as such we will be looking directly at the target market that F&N has been advertising to for their isotonic energy drink. The 100Plus sports drink was launched in Malaysia in 1983 as the first sports drink in Malaysia (The Nation, 2015). At the time it was marketed as a soft drink for athletes as it still does with professional badminton player Lee Chong Wei leading the helm for most of the ads that the company use, and even international football legend Pelé as of late (Writer, 2015).

However, in 2013 F&N launched a rebranding campaign to shift the scope of the drinks market to reach out to consumers outside the sports arena. In their efforts F&N rolled out ads and commercial targeting the mass market with an active lifestyle under the tagline “Outdo Yourself” (YouTube, 2015). The ad clearly shows the market segment that F&N is trying to appeal to and further analysis of that market segment can be seen on Table 1.

In evaluating the market segment we will first look at the segments size and growth. The target market for the brand has always been young adults within the 18-29 age bracket that mostly consists of workers in cities and towns, plus an increasing proportion in higher education. Estimated by Euromonitor International to be numbered around 6.98 million, this

Figure 1: 100PLUS "Outdo Yourself" ad Poster

age bracket is the most populous in Malaysia (Euromonitor.com, 2014). The segments structural attractiveness does not pose a problem as the brand has a well-established within the country prior to any competitor within the energy drink field and control a ridiculously large share of the sales. Finally the target market is well within the capability of the company’s resources and objective to handle given its large presence within the country.

Table 1: Target market segmentation

VariableSegmentation

variablesAthletic

IndividualsOffice Worker Casuals

Geographical CountryMalaysia and

SingaporeMalaysia and

SingaporeMalaysia and

Singapore

Demographics Age 15-30 25-35 18-25

IncomeRM0-

RM50,000RM30,000-RM80,000

RM10,000-RM80,000

Behavioural OccasionsRegular occasion

Regular occasion

Special occasion, holiday; seasonal

Psychographic Lifestyle Active Achievers Strivers

3 VALUES DEMANDED BY TARGET MARKET

Readily available Safe to consume Healthy Provide energy for day to day work Has a good flavour/taste Safe and attractive packaging Recyclable packaging Affordable price

4 POSITIONING

The perceptual map in Figure 2 shows the market positioning for some of F&N’s products as well as the competitors. The attributes chosen for the horizontal axis is based on the how the products are marketed and perceived by the consumer, be it fun and exciting or sporty and adventurous. The vertical axis indicates the public perception of the healthiness of the soft drinks primarily based on their sugar content. The size of the bubble indicates the percentage of off-trade sales volume for the year 2014 as reported by Euromonitor International.

The maps shows that 100PLUS and F&N is unique in that they fill a gap that none of their competitor can get close to in both end of the spectrum. 100PLUS is considered a sporty and healthy drink due to its long standing presence in the country, it has been used for years as a way to combat common ailment such as headaches, flus and severe dehydration (Jamie, 2008). The only other competitor that comes close to 100PLUS’s position in the spectrum is the 7-UP Revive that is marketed similar to the 100PLUS but lacks the branding foothold and competitive edge.

On the other end of that spectrum we have F&N Fun Flavours with its colourful assortment of drinks that are targeted to a more vibrant youth market that no other competitor does. The inclusion of a wide variety of flavours that the competitors lack appeals to a wider audience of different taste (Fnbm.com.my, 2015). Which also proves to be popular during the holiday season given their aggressive pricing

100 Plus

F&N

Spritzer

Coca-Cola

Yeo's

Seasons

7-Up Revive

Red Bull

Healthy

Unhealthy

Fun Sporty

Figure 2: Perceptual Map for Soft Drink in Malaysia

5 DIFFERENTIATION

5.1 PRODUCT FEATUREOne of the ways 100PLUS differentiates itself from other competitor is to drive home the point that it’s a “thirst quencher” and with that takes advantage of the hot tropical climate to promote their product in their new ‘Heat Buster’ campaign (100PLUS, 2014). To that end, F&N is promoting the superior difference between its products to that of the competitor. Promoting the fact that not only do their product alleviates thirst like no other but that it is also the go to option for non-caffeinated energy drink.

The introduction of the 100PLUS Edge on the other hand brings with it the unique feature of being a non-carbonated isotonic drink (Fnbm.com.my, 2015). The product itself is marketed as such with the added benefit of having vitamin B which F&N claims aid in energy production. This makes it distinctive from the competitor as none of them has similar offerings and also superior in that it offers a better alternative to carbonated or caffeinated energy drinks.

Another advantage that 100PLUS gains over its competitors is via its endorsement by the National Sports Council of Malaysia, and being the only sports drink in Malaysia to have such recognition might prove to make it an important difference to target buyers (Fnbm.com.my, 2015).

5.2 IMAGE DIFFERENTIATIONF&N brands the 100PLUS with its distinct logo reminiscent of the Olympic rings in order to better associate the drink with sports. The connotation is apparent at first glance to consumer even without prior exposure to the brand. Most other isotonic drinks doesn’t distinguish itself as a sports drink with the logo as with 100PLUS and relies solely on the terms used such as ‘isotonic drink’ or the colour of the drink to associate itself with the medium.

Getting well recognized local brand ambassadors such as Lee Chong Wei proved beneficial to the brand as it further distinguishes itself as a drink for top athletes and sports enthusiast (Sportspromedia.com, 2009). The recent signing of international football star Pele and Oscar Jr. further cements the brands message in the local and international market (Marketingmagazine.com.my, 2015).

Figure 3: Promotional poster for 100PLUS Edge

6 MARKETING MIX

6.1 PRODUCTa) Core Benefit

An energy drink that supplements everyday work An energy drink that promotes healthy lifestyle

b) Actual Product A brand logo that reflects the active lifestyle that the

brand promotes A stylish packaging that sets it apart from its

competitor and draws attention A brand name that garners much loyalty due to being a

long-established brand in the country

6.2 PRICEThe price for drink remains mostly low as with any other carbonated soft drinks and like any other brand of soft drink offers seasonal discount prior to a major holiday to take advantage of the influx in sales.

6.3 PLACESF&N makes its product available via numerous sources and channels such as grocery stores, hypermarkets, newsstands, vending machines etc. However, in its recent efforts to bolster sales F&N and AirAsia has partnered up to offer their 100PLUS drink inflight (Club, 2010).

6.4 PROMOTIONF&N promotes its products through various competitions and events with the most recent one being the “Race Against The Machine” marathon in January where participant were runners were fitted with a unique barcode and had to run for 6km while avoiding being captured by remote controlled drones.

The event coincides with the brands image and message of active and sporty orientated lifestyle while also showcasing its uniqueness.

Figure 4: Packaging comparison between 100PLUS and competitor

Figure 5: Seasonal discount for major holidays

WORD COUNT: 1450

7 REFERENCES

Euromonitor. (2015). Carbonates in Malaysia: Euromonitor International.

Euromonitor.com. (2014). Consumer Lifestyles in Malaysia. Retrieved 6 October 2015, from http://www.euromonitor.com/consumer-lifestyles-in-malaysia/report

The Nation,. (2015). F&N rebranding isotonic drink 100Plus to expand market share in Malaysia - The Nation. Retrieved 4 October 2015, from http://www.nationmultimedia.com/aec/F&N-rebranding-isotonic-drink-100Plus-to-expand-ma-30222899.html

Writer, S. (2015). 100PLUS launches campaign starring football legend Pelé. Marketing Interactive. Retrieved 4 October 2015, from http://www.marketing-interactive.com/100plus-launches-campaign-starring-football-legend-pele/

YouTube,. (2015). 100PLUS How do you Outdo The Everyday?. Retrieved 4 October 2015, from https://www.youtube.com/watch?v=60neM0MatAY

Jamie,. (2008). Illogical Ramblings of a logical mind: 100 plus can cure headaches!. Callmejamie.blogspot.my. Retrieved 4 October 2015, from http://callmejamie.blogspot.my/2008/04/100-plus-can-cure-headaches.html

Fnbm.com.my,. (2015). F&N Fun Flavours - F&N Beverages Marketing. Retrieved 4 October 2015, from http://www.fnbm.com.my/content.php?pagename=Our+Brand&id=25

Fnbm.com.my,. (2015). NSC, 100PLUS Renew Sponsorship for Three More Years - F&N Beverages Marketing. Retrieved 5 October 2015, from http://www.fnbm.com.my/news_details.php?nid=75

100PLUS,. (2014). 100PLUS - Heat Buster. Retrieved 4 October 2015, from http://100plus.com.my/heat-buster/

Sportspromedia.com,. (2009). Lee Chong Wei lands 100Plus endorsement - Sports Personal Endorsement news - Miscellaneous - SportsPro Media. Retrieved 5 October 2015, from http://www.sportspromedia.com/news/lee_chong_wei_lands_100plus_endorsement4

Marketingmagazine.com.my,. (2015). Football Greats Pele and Oscar Are 100Plus New Ambassadors!. Retrieved 5 October 2015, from http://www.marketingmagazine.com.my/index.php/categories/breaking-news/10883-football-greats-pele-and-oscar-are-100plus-new-ambassadors

Club, A. (2010). AirAsia Latest News: 100PLUS and Coca-Cola to be sold on AirAsia flights. Airasiafansclub.blogspot.my. Retrieved 6 October 2015, from http://airasiafansclub.blogspot.my/2010/01/100plus-and-coca-cola-to-be-sold-on.html