INTI INTENATIONAL COLLEGE SUBANG (IICS) MKT 305 MARKETING
PLANNING IN PRACTICE Executive Summary
Munchys is a company that has been in existents since 1991.
During their 21 years in existence, they have grown through natural
growth, mergers, and acquisitions. This has allowed Munchys to be
the leading biscuits maker in Malaysia. Being the leading biscuits
maker has allowed Munchys to introduce a diverse selection of
foods. However in recent years Munchys has been reluctant to adapt
to current market trends. The company was focusing on producing new
versions of existing products to make them more convenient. However
Munchys was ignoring that other companies were creating similar
products that were cheaper and also healthier products. Recently,
Munchys realized this trend and began creating healthier foods such
as 100-calorie snack packs, low carbohydrate foods, and low fat
foods. With these new products, Munchys has been able to serve
people that have chosen to adapt to a healthy eating life style.
The new OATKRUNCH that Munchys have be introduce will solidify
Munchys as a company that is willing to support those that have
adopted and create awareness that healthy eating life style more
important now days. Munchys is expecting the new OATKRUNCH to
become one of the leading healthy snacks, by increase sales through
the target age woman 18 to 45 in the market by 2013.
PREPARED BY NAGANANTHYINI A/P NAGASERAS
Page 1
INTI INTENATIONAL COLLEGE SUBANG (IICS) MKT 305 MARKETING
PLANNING IN PRACTICE Company Background It all started in 1991, in
a small peaceful town down south of Malaysia. Our biscuits
connoisseurs grew up on the heavenly smells of freshly-baked
handmade biscuits that constantly filled their fathers biscuits
factory. Affectionately known as their second home, it was there
that they lived, ate, slept, studied and played. During school
holidays, they helped make and pack biscuits, would quite happily
follow Dad everywhere. While growing up in a biscuits factory
sounds like a childs dream come true, life wasnt always all fun and
games (unlike a Munchys biscuit thats fun and games, all day and
all night long!). Many biscuits and wafer burnt, broken and bruised
along the way. But their hard work paid off, as they amassed
secrets learnt from their forefathers (to be used in the future
with the birth of Munchys) to make the perfect homemade biscuits
handmade with cheeky fun, laughter and above all love.
Company History Munchys is Malaysias No.1 homegrown biscuit
brand*, specializing in wafers, wafer sticks and biscuits. Since
its birth in 1991, Munchys has grown to become the nations No.1
wafer producer and No.2 biscuit producer both in terms of volume
and value, while boasting state-ofthe-art manufacturing facilities
in Batu Pahat, Johor, Malaysia. In line with its mission to fill
all kinds of fun-eating snacks in every home, Munchys products can
now be found in approximately 60 countries. Its main products
include OatKrunch, Mini Crackers, Lite Cream Crackers, Lexus
Sandwich Biscuits, Muzic Wafers, Munchini Wafer Sticks, Sugar
Crackers, Muzic Nuss Wafers, Choco-O Mocha chip Cookies, and
Captain Munch Milk and Chocolate Cookies. In 1996, Munchys iconic
factory was built in Johor, Malaysia, with 120,000 sq ft real
estate and fully-automated wafer technologies. This multi-million
dollar investment allowed them to churn out yummiest to feed even
more tummies. Considered the most advanced fully-automated wafer
plant in South East Asia (till today), three new products were
revealed- Muzic Wafers, Munchini Wafer Rolls and Lexus Biscuits
much to the joy of many.PREPARED BY NAGANANTHYINI A/P NAGASERAS
Page 2
INTI INTENATIONAL COLLEGE SUBANG (IICS) MKT 305 MARKETING
PLANNING IN PRACTICE Today, Munchys boasts an even more astounding
production plant and warehouse facility that covers more than
400.000 sq ft in Batu Pahat, Johor, Malaysia. The built-up area of
these facilities amounts to more than 300,000 sq ft and is
outfitted with: 2 wafer plants with the capacity to manufacture up
to 510 tons per month. 4 biscuit plants which can produce up to
2,630 tons per month. 4 wafer stick, machines with 16 production
lines that have the capacity to produce up to 210 tons per month.
Also, a 120,000 sq ft warehouse was built and operates according to
international warehousing standards. All Munchys products are
manufactured solely under the brand name of Munchys with a record
of 70 SKUs (Stock-Keeping Units) under their belt.
PREPARED BY NAGANANTHYINI A/P NAGASERAS
Page 3
INTI INTENATIONAL COLLEGE SUBANG (IICS) MKT 305 MARKETING
PLANNING IN PRACTICE MARKET ANALYSIS Biscuit making is a
conventional activity in many parts of the country. Despite the
advent of modern, large capacity and automatic biscuit making
plants, large section of people especially in semi-urban and rural
areas still prefer fresh biscuits from local bakery as they are
cheap and offer many varieties. These manufacturers are able to
cater to some typical local palate as well. Thus, they are able to
with stand competition from organized sector units.
Biscuits are eaten by all type of people across the board round
the year. They are, thus, mass consumption items with number of
varieties and shapes. The market is scattered. There are some
dominant national and regional brands. Biscuits can be manufactured
at a location which is close to the market.
PREPARED BY NAGANANTHYINI A/P NAGASERAS
Page 4
INTI INTENATIONAL COLLEGE SUBANG (IICS) MKT 305 MARKETING
PLANNING IN PRACTICE PEST ANALYSIS POLITICAL Halal certification
ECONOMY Financial crisis Consumers confidence TECHNOLOGY Logistics
and supply chain
SOCIAL healthy eating habits
POLITICAL With the Government of Malaysia focusing on turning
the nation into an international Halal Hub, at Munchys, were proud
to say that we have always recognized the importance of
manufacturing only Halal products. And this dedication to
preserving the sanctity of our product is reflected by our Halal
status which we first received more than 10 years ago. At In
addition to this demand characteristic, Halal certified products
are very important because around 60% of Malaysia's population is
Muslim and these consumers are growing in numbers and seeing rising
disposable household and personal incomes. Munchys, we take our
Halal status very seriously and believe it to be a privilege that
comes with responsibility. This is why we have a dedicated
committee that deals with all things Halal. The Committee of the
Munchys Company is made up of representatives from each key section
that contributes to the making of our products. We believe the
presence of the Halal Committee further enhances our commitment to
meeting Halal requirements for good OatKrunch biscuits, in terms of
hygiene, sanitation and safety that stated in Syariah Law (law of
Islam). Amongst the KPIs set by the Halal Committee of Munchys
Company are planning to issue guidelines that reduce the risk of
Halal, enhance Halal awareness within the organization, among the
target woman age 18 to 45, customers of OatKrunch biscuits by 2013
and actively participate in Halal seminars and trade fairs MIHAS
2009 (Malaysia International Halal Showcase) is one of the event in
which we successfully participated this year, and as the years
progress, we will definitely be part of similar venerated
activities to promote healthy product to the target customers by
2013.PREPARED BY NAGANANTHYINI A/P NAGASERAS Page 5
INTI INTENATIONAL COLLEGE SUBANG (IICS) MKT 305 MARKETING
PLANNING IN PRACTICE
ECONOMY Malaysia struggled economically during the 1997-1998
Asian financial crisis and applied several valuable lessons to its
economic management strategies that contributed to the economys
resilience to the 2008-2009 global financial crisis. After
contracting 1.7% in 2009, Malaysias GDP grew 7.2% in 2010
(Appendices 1). In Malaysia, consumer confidence improved to 108.7
in the third quarter of 2011 from 107.9 in the second quarter of
2011. Generally consumer confidence is high when the unemployment
rate is low (Appendices 2) and GDP growth is high. Measures of
average consumer confidence can be useful indicators of how much
consumers are likely to spend (Appendices 3). This predicament
presents several opportunities and several threats to OatKrunch
biscuits. The general decrease in consumer spending will cause
consumers to be more conscious of their grocery bills. But their
frugal approach to food and eating out in particular, will prompt
them to consider more reasonably priced biscuits, providing a
valuable opportunity for OatKrunch biscuits to increase sales by
2013.
SOCIAL In todays ever growing consumer society more people are
relying on well established brands. It is the reputation that
Munchys provides and their Malaysian made guarantee that healthy
conscious woman customer is more inclined to trust the OatKrunch
biscuits. With people more concerned with health and interested in
healthy eating habits, products with high nutrition content or a
product that is deemed healthy is becoming ever more popular. The
concept of maintaining a healthy and nutritious diet is well
entrenched in the minds of the majority of the Malaysians. Malay,
Indian and Chinese herbal medicine, and wellness traditions, are
wellestablished in the nation. Most Malaysians have some knowledge
of them, which is usually "passed down through the generations".
While this is officially reported, the very rapid socioeconomic
growth of the past 3 decades has brought about significant changes
to the lives of thePREPARED BY NAGANANTHYINI A/P NAGASERAS Page
6
INTI INTENATIONAL COLLEGE SUBANG (IICS) MKT 305 MARKETING
PLANNING IN PRACTICE population. The impact of modern living is
already evident in the major cities of Malaysia. New OatKrunch
packaging of products make them more aware about the product that
exciting are also more appealing to a target customer by 2013.
TECHNOLOGY In todays competitive environment, Munchys Company
can cut the cost from where ever it can be reduced. Logistics and
supply chain should be designed so that warehouse charges could be
the minimum. If storage charges are reduced, then automatically our
profits are increased. If storage charges are low then may be does
not have to clear the stock rapidly, we can wait for update in
technology. Together with the increase of Internet users, this has
led to increase sales and opportunities and create awareness for
OatKrunch to offer promotions to the woman age 18 to 45 consumers
and channel their business in a wide range with lower cost by 2013.
For example, customers generally visit products website if they
need directions about the detailed nutrition information and have
events so the customers know the venue, location and so on.
PREPARED BY NAGANANTHYINI A/P NAGASERAS
Page 7
INTI INTENATIONAL COLLEGE SUBANG (IICS) MKT 305 MARKETING
PLANNING IN PRACTICE SWOT ANALYSIS STRENGHTS Focus on fast growing
sector Consumer needs Distribution channels Well liked brand
OPPORTUNITIES In-store promotions Packaging changes Product
improvements WEAKNESSES Expensive ingredients, lowering cost of
product
THREATS competition of other brands new company Newer and more
exciting biscuits
Strengths Focusing on fast growing sectors such as snacks,
beverages, and convenient meals. Addressing consumer needs for
health and wellness. Expanding their presence in faster growing
distribution channels. Established and well liked brand Munchys
Company is strong and continually developing
Weaknesses product will be made with more expensive ingredients
as all healthy foods are, therefore, we will not be lowering the
cost of our product
Opportunities In-store promotions, such as taste-tests, or small
promotional packs to the target consumers so that it will create
awareness and Packaging changes which is more attractive to the
target woman age 18 to 45 Munchys have great opportunities to
improve the product according to the customer preferencesPREPARED
BY NAGANANTHYINI A/P NAGASERAS Page 8
INTI INTENATIONAL COLLEGE SUBANG (IICS) MKT 305 MARKETING
PLANNING IN PRACTICE Threats A threat that we face is the
competition of other brands, such as IKO. .Just as we want to
generate a new group of consumers, we want to keep our current
consumers as well. IKO is the only other brand that has an oat
biscuit in the market. Although they are a relatively new company,
their sales are quickly increasing along with their recognition.
Therefore, we will be competing with company that has already
developed recognition and has had its new product similar to ours
on the market. Newer and more exciting biscuits entering the
marketing
PREPARED BY NAGANANTHYINI A/P NAGASERAS
Page 9
INTI INTENATIONAL COLLEGE SUBANG (IICS) MKT 305 MARKETING
PLANNING IN PRACTICE Customer Analysis Consumers are choosing to
buy oat crackers more and more. Customers enjoy the adaptability of
the oat biscuits and in the current economic climate. Whilst oat
biscuits are popular amongst customers because it is ever more
concerned on the healthy conscious that valuable with the following
below:-
Value for money Variety Piece of mind Guarantees Health
Accessibility
It is with these factors in mind that Munchys will strive to
meet customer satisfaction through the implementation of different
more flavors and varieties, nutritional recognition, and value for
money, Munchys will prove themselves better than their
competitors.
PREPARED BY NAGANANTHYINI A/P NAGASERAS
Page 10
INTI INTENATIONAL COLLEGE SUBANG (IICS) MKT 305 MARKETING
PLANNING IN PRACTICE Competitive Analysis
CompanyMunchys OatKrunch
Product
Price
Promotion/ ProductOriginal oat biscuits since 1991 More cheaper
than competitors Attractive and convenient
Distribution/Placei.e.: 99 Speed mart, 7 Eleven, Supermarket,
All Hypermarket, and small grocery shops
Small packets (6 pieces) OatKrunch Dark Chocolate RM 4.30 180g
-
packaging Reputation as value for money Create awareness Promote
the products
Place: All over Malaysia
-
OatKrunch Chuncky Organic Hazelnut
Big packets (small pack with 3 pieces) RM 8.90 500g
-
OatKrunch Strawberry & Blackcurrant
PREPARED BY NAGANANTHYINI A/P NAGASERAS
Page 11
INTI INTENATIONAL COLLEGE SUBANG (IICS) MKT 305 MARKETING
PLANNING IN PRACTICEYLF Manufacturing Sdn Bhd IKO Original oat
biscuits since 1987 100% satisfaction guarantee or 100% RM 9.75
Assorted Oat Calcium Cracker RM 3.90 178g Oat Cal Cracker 490g
refund expensive than other competitors various of oat crackers
Place: All over Malaysia i.e.: 99 Speed mart, Supermarket, and All
Hypermarket
RM 3.90 Sesame Oat Cal Cracker 178g
RM 3.90 Julies Pumpkin Oat Cal Cracker 178g RM 4.90 200g Simple
and memorable packaging i.e.: 99 Speed mart, 7 Eleven, Supermarket,
All Hypermarket, and small grocery shops
Julie's Oat
-
Oat 25 Strawberry
Place: All over Malaysia RM 4.90 210g
-
Rich Tea Oat
PREPARED BY NAGANANTHYINI A/P NAGASERAS
Page 12
INTI INTENATIONAL COLLEGE SUBANG (IICS) MKT 305 MARKETING
PLANNING IN PRACTICEKraft
Jacobs20g (1 sachet) RM 6.69 Oatmeal
-
The second largest food and beverage Company in the world which
has offered consumers delicious and
i.e.: 99 Speed mart, 7 Eleven, Supermarket, All Hypermarket, and
small grocery shops
Place: All over Malaysia
20g (1 sachet) RM 6.69 Oatmeal with Apple
wholesome foods for more than 100 years.
-
Promote synonymous with quality and
20g (1 sachet) RM 6.69 Oatmeal with Apricot
wholesome nutritious goodness
PREPARED BY NAGANANTHYINI A/P NAGASERAS
Page 13
INTI INTENATIONAL COLLEGE SUBANG (IICS) MKT 305 MARKETING
PLANNING IN PRACTICE Target market and Segmentation Consumer Market
Segmentation
o Demographic Segmentation Demographics are generally describing
the gender, age, ethnicity, education and income of the most likely
people to purchase a particular product (Yankelovich & Meer
2006, p.124). With regard to Munchys OatKrunch, their current
targeted demographic is middle to 18 to 45 age women who are the
main person within the home who controls the familys food
consumption and are conscious of eating and providing healthy food
for their family. With this in mind, OatKrunch new demographic
market should include working adults also who are conscious of
their health and enjoy healthy snack foods. This will create a
stronger customer loyalty base as they grow older.
o Psychographic Segmentation Psychographic segmentation revolves
around the lifestyles, personality and motivations of potential
customers. Due to the dramatic increase of the awareness and desire
for healthy, nutritious biscuits, the general public has made
lifestyles changes within the last few years reference to introduce
and more concern a health conscious lifestyle. This is good for
OatKrunch as they are a healthy alternative to some other biscuits
which have unacceptable flavours and ingredients. There is also
evidence to suggest that consumers generally associate healthy
foods with poor taste (Raughunathan, Naylor & Hoyer 2006).
Therefore, Munchys needs to adopt a push advertising and marketing
approach to ensure the target woman age 18 to 45 are aware of
OATKRUNCH nutritional value and their good taste.
PREPARED BY NAGANANTHYINI A/P NAGASERAS
Page 14
INTI INTENATIONAL COLLEGE SUBANG (IICS) MKT 305 MARKETING
PLANNING IN PRACTICE o Behavioral Segmentation Behavioural
segmentation regards changeable behaviours rather than
consumers
characteristics. As its name suggests, behavioural segmentation
concerns the tendencies, behaviours and actual
purchases/consumption of products. Variables accounted for in
behavioural segmentation include benefit expectations, price
sensitivity, brand loyalty, occasions and volume usage. Munchys are
in a fairly good position regarding behavioural segmentation. As
such a well established company spanning many decades, they are
seen as a company that encourages and maintains brand loyalty from
its customers. OatKrunch are a well-known and accepted base product
for a biscuits that health conscious, and could often be considered
by most of its consumers as a purchase made out of habit and brand
loyalty.
PREPARED BY NAGANANTHYINI A/P NAGASERAS
Page 15
INTI INTENATIONAL COLLEGE SUBANG (IICS) MKT 305 MARKETING
PLANNING IN PRACTICE Current and Prospective Target Market The
current target market for the original OATKRUNCH is children. The
original OATKRUNCH biscuits have previously focused on and promoted
the new colors for the flavors which would generate new interest
amongst children, who would in turn convince their parents to buy
the new biscuits. We have created an entirely new target market for
our OATKRUNCH. Our marketing communications will be primarily
directed toward women ages 18-45 that are health conscious, yet
still enjoy consuming sweets. The target market lives in the urban
part of the city and resides in the middle to upper middle income
range. Our target audience enjoys recreational activities for
exercise, such as swimming, biking, jogging, or power walking. The
psychographics of our target audience are the desire to be healthy
and fit, yet have a difficult time eliminating those sweet
indulgences they crave and desire. They probably have a pattern for
low self control and/or self discipline in regards to what foods
they consume. The target market will purchase our new product for
themselves and possibly their spouses. As a result of the
increasing problem of obesity amongst children, we have made our
children our secondary target market. We will be focusing our
efforts towards the primary target market. Their behavioral
patterns include white-knuckling through their health, which
eventually results in a binge of high fat foods and then a feeling
of guilt for losing self control. This product requires low
involvement decision making, because it is not a large purchase.
However, it may give our target consumers a food they can indulge
in without the feeling of guilt afterwards. More than likely, our
target market will eat only one serving, which is three OatKrunch
biscuits, at a time. This is just enough to give them their fix and
satisfy their cravings.PREPARED BY NAGANANTHYINI A/P NAGASERAS Page
16
INTI INTENATIONAL COLLEGE SUBANG (IICS) MKT 305 MARKETING
PLANNING IN PRACTICE Key competitors are Iko, Kraft and Julies.
Julies also high ranked brand in the market, but they are currently
the only other company with Oat biscuits on the market. We want to
ensure that our current consumers continue to remain loyal to us,
without switching over to our largest competitor, IKO and KRAFT. In
addition, we also hope that our perspective target audience for the
new product remains loyal to us alone, especially when most
consumers do not associate us with healthy biscuits yet. Although
we are currently the top oat biscuits maker, we have earned a
reputation for great tasting but more fattening calories (Figure 1)
compare to other oat biscuits. It is difficult to separate
ourselves from the current image we have, but significant promotion
may help our target audience to notice us and choose our product
amongst the competition.
PREPARED BY NAGANANTHYINI A/P NAGASERAS
Page 17
INTI INTENATIONAL COLLEGE SUBANG (IICS) MKT 305 MARKETING
PLANNING IN PRACTICE Marketing Strategy
Mission Statement We want our consumers to consider us as their
primary snack food. We want our customers to know that we have
their wants and needs in mind along with working to create products
that will outfit to their health conscious lifestyles. To maintain
and add to the good will that Munchys OAT KRUNCH possess within the
community and the customers while continually improving the image
and the product to reflect customer preferences.
Objectives Munchys has been very successful with its products.
Now is the time to become more competitive in other areas by
becoming more attractive to potential customers. Munchys now plans
to focus on better-for-you-products with less marketing to
children. Since the weight loss trend is targeting more awareness
of oat intake, instead of wheat products, we are choosing to shift
some of our weight towards the healthy market. The OatKrunch will
help broaden our market ability in the biscuit industry.
Marketing Objectives Promoting the OatKrunch packaging by using
new colors to help it stand out against the original OatKrunch by
2013. Promoting a healthier product to health conscious consumers.
To create a strong consumer awareness towards OatKrunch biscuits by
2013.
Financial Objectives Increase sales by marketing the OatKrunch
biscuits to women ages 18-45 by 2013.
PREPARED BY NAGANANTHYINI A/P NAGASERAS
Page 18
INTI INTENATIONAL COLLEGE SUBANG (IICS) MKT 305 MARKETING
PLANNING IN PRACTICE Marketing Strategy/Tactics To reach our target
audience, which consists of health conscious women ages 18-45, our
campaign will focus on reach rather than frequency. With and
unlimited budget, we believe that running advertisements in
magazines and TV will effectively reach our target audience. We
will supplement the campaign with consumer promotions.
Customer demand Customer demand is a crucial factor which is
driven by tastes, income and availability of others similar
products at a different price (mentioned later in the potential
substitutes section). For a lot of consumers, value and price are
highly related: the higher the price, the higher the value.
Consequently, Munchys intention to position OatKrunch as a unique,
innovative and attractive product gives it a certain control over
OatKrunch price. To be able to implement higher pricing though, the
minimization of the non-monetary costs to customers should also be
include along with awareness of the product (notably by
advertising) and value (benefits).
The product lifecycle The Munchys company should take advantage
also to the fact that the OatKrunch product and the earlier in its
lifecycle the higher the price can usually be. It ensures a high
profit margin as the early adopters buy the product and the firm
seeks to recover up development costs quickly and it also brings a
certain prestige to the product.
PREPARED BY NAGANANTHYINI A/P NAGASERAS
Page 19
INTI INTENATIONAL COLLEGE SUBANG (IICS) MKT 305 MARKETING
PLANNING IN PRACTICE Potential substitutes Munchys is constrained
by the monopolistic market in which it competes. The main
characteristic however is product differentiation.
Product development When Munchys company finds and develops a
new product idea. During product development, sales are zero and
the company's investment costs mount. Introduction In this stage,
slow sales growth as the product is introduced in the market.
Profits are nonexistent in this stage because of the heavy expenses
of product introduction. Growth In this stage, OatKrunch product
can create strong awareness and increase sales and profits.
PREPARED BY NAGANANTHYINI A/P NAGASERAS
Page 20
INTI INTENATIONAL COLLEGE SUBANG (IICS) MKT 305 MARKETING
PLANNING IN PRACTICE Marketing Mix Product Packaging
While the packaging for the original OATKRUNCH is white and red,
the packaging for the OATKRUNCH will be (red with white) and (blue
with white) to promote a fresher image to our already successful
brand of OATKRUNCH. We choose the color blue because it triggers
the thought of a healthy lifestyle. We choose the keep the color
(red with white) in honor of the original OATKRUNCH, but added the
(blue with white) color to distinguish the new OatKrunch product
from the original. We also plan to include a zip lock seal on the
OatKrunch biscuits package to lock in the freshness for a longer
time period. Place As OatKrunch have been a household product, the
geographic segmentation becomes quite diverse. Female 18 to 45 year
olds are likely to buy OatKrunch as they are a popular ingredient
in baking recipes as well as a household product (The Baby Boomer
generation). The children of the Baby Boomer generation, Generation
X (born between 1965 and 1980; 45 to 31 year olds) are likely to
have grown up with OatKrunch as a typical snack biscuits in their
household and are expected to hold loving childhood memories of the
snack; perhaps even prompting them to purchase OatKrunch to inspire
similar caring memories in their own children. Therefore it is
recommended that marketing strategies be concentrated on localities
with residents area that more concern about health conscious
surround Malaysia, target age woman 18 to 45 or where parents aged
between 45 and 31 years with young children reside do purchase
OatKrunch biscuits because it is more to healthy product which is
easy to consume everywhere they want as a breakfast in morning
rather than consume unhealthy foods.
PREPARED BY NAGANANTHYINI A/P NAGASERAS
Page 21
INTI INTENATIONAL COLLEGE SUBANG (IICS) MKT 305 MARKETING
PLANNING IN PRACTICE Price Munchys pricing is currently considered
an odd-even pricing, with the price being RM 4.30 for a 180g for
small OatKrunch packet and for the big packet of OatKrunch is
RM8.90 for a 500g which is more value of money, cheaper and good
quality compare to other competitors This pricing strategy is
appropriate as it is in line with the direct competitors who are
positioned closely on the shelves which makes it easy for customers
to notice the price differences. Throughout time, the pricing
strategy and price in general will change to reflect the market and
its changes. It is important for management to ensure they have
appropriate systems in place to ensure they are always aware of the
current pricing situation within the wider community.
Profit-oriented approach: Target profit
One of the central objectives of this project being to become
the market leader in functional biscuits, Munchys is willing to
stay among the top competitors, if not becoming the greater, by
achieving a certain target profit. This could be obtained by
establish a price that will largely cover variable and fixed costs
while bringing tremendous profits.
Promotion To create awareness of the OatKrunch, Munchys has
implemented a push and pull strategy to maximize initial roll out.
The push strategy will begin with a packaging makeover and
implementation of new flavors (blackcurrant, original hazelnut, and
dark chocolate) and lunch time OatKrunch snack pack which will
include 6 pieces of OatKrunch biscuits. This will then is
introduced and store level, with training and merchandising from
our Munchys sale representatives. Once the product has been
introduced at store level, in store promotions and taste testing
will be organized with these stores to maximize base interest. At
these taste tests, promotional packets of the new OatKrunch and its
coinciding flavors will be handed out. Each promotional packet will
include two biscuits.PREPARED BY NAGANANTHYINI A/P NAGASERAS Page
22
INTI INTENATIONAL COLLEGE SUBANG (IICS) MKT 305 MARKETING
PLANNING IN PRACTICE
The pull strategy will then reflect this through various
advertising campaigns. Two new advertising designs have been
proposed for Television, Radio, Magazine, and Internet. This blend
of published and visual/aural media will help to create further
interest in the product. To the optimize this awareness and to
assist with our Magazine campaign, a proposal has been put forth to
several weekly issued magazines to include promotional Oats packets
in a sample bag which customers will receive when purchasing the
magazine.
This combination of our push and pull strategy will then lead
the way for further promotional developments to be implemented over
the next one year, to optimize customer and client awareness of Oat
biscuits.
PREPARED BY NAGANANTHYINI A/P NAGASERAS
Page 23
INTI INTENATIONAL COLLEGE SUBANG (IICS) MKT 305 MARKETING
PLANNING IN PRACTICE Situational Analysis Internal Environment o
Positioning OatKrunch biscuits will position itself within the
market as one of Malaysians favourite cookies. OatKrunch will be
seen as a product that is continually growing and developing into
other avenues; such as the OatKrunch Snack Pack (ref. Promotion)
which will appeal to a whole new generation of target women 18-45
consumers. Throughout all the changes it will maintain its
trademark delicious and much tastier.
o Distribution OatKrunch biscuits main method of distribution is
through large hypermarket chains including Tesco, Giant, and
Carrefour; these supermarkets such as 7 Eleven, 99 Speed mart,
K&K, and small grocery shops are situated in almost every town
in populated Malaysia covering a wide range of locations. In order
to give the whole of Malaysia, access to the great tasting cookies
that OatKrunch are, it is recommended that an online ordering
system be established to the . This provides convenience, remote
access to OatKrunch and possibly a more inexpensive option for
those who wish to purchase OatKrunch biscuits in bulk whenever
there is out of stock.
o Promotional
Magazines We will run advertisements in five major magazines
throughout Malaysia. These magazines include Redbook, Shape,
Cosmopolitan, People, and O-The Oprah Magazine. These magazines
were chosen because of the diverse group of women they can
reach.
PREPARED BY NAGANANTHYINI A/P NAGASERAS
Page 24
INTI INTENATIONAL COLLEGE SUBANG (IICS) MKT 305 MARKETING
PLANNING IN PRACTICE Television Television spots for broadcast and
cable networks will appear throughout the Malaysia on various
stations to reach our target. These networks through ASTRO include
(TV1, 2, 3, and NTV 7) Zee, AXN, AFC and MTV. Mostly the target
consumers were watching these stations during the weekends and
during holidays so it would help us to advertise our product.
Communication Strategy Consumers are extremely health conscious
today and we want them to know it is possible to abide by their
diets without depriving themselves of the sweet delicacies they
crave. This is the message we will convey to our target market. In
order to reach our audience, we market our new product through
print and electronic media.
Print Media
One form of media we would use would be through magazine
advertisements. The advertisements would be placed in magazines
that are directed towards the same demographics of our target
audience which will help to create awareness and increase sales.
Magazines have longer shelf life and are, therefore, a consistent
reminder of our product and its benefits each time the magazine is
read through
Electronic Media
Another form of media we would use would be through television
and our website. Although it is the most expensive form, it is also
most effective. Television commercials are the fastest and easiest
way to reach our target audience. Advertisements will run during
programs that are watched by those with the same demographics as
our target customers to create awareness and help to increase sales
by 2013. Our website will feature information about all of our
products, particularly the OatKrunch that are health conscious.
PREPARED BY NAGANANTHYINI A/P NAGASERAS
Page 25
INTI INTENATIONAL COLLEGE SUBANG (IICS) MKT 305 MARKETING
PLANNING IN PRACTICE IMPLEMENTATION AND CONTROL Implementation
Beginning Nov 2010 Tactic Nov Dec Jan Feb Mar Apr May Jun Jul Aug
Sep Oct Nov Dec 1. New packaging, flavours and snack selection to
be launched 2. Sales representatives to provide in store training
to retailers and merchandising 3. Television and radio ads to begin
airing on both prime and midday programs 4. In store demonstrations
and taste tests 5. Internet advertisement to be launched on Munchys
affiliated sites. 6. Magazine advertisement and promotional packets
exported
PREPARED BY NAGANANTHYINI A/P NAGASERAS
Page 26
INTI INTENATIONAL COLLEGE SUBANG (IICS) MKT 305 MARKETING
PLANNING IN PRACTICE Continue of 2013
Tactic1. New packaging, flavours and snack selection to be
launched 2. Sales representative s to provide in store training to
retailers and merchandising 3. Television and radio ads to begin
airing on both prime and midday programs 4. In store demonstration
s and taste tests 5. Internet advertisement to be launched on
Munchys affiliated sites. 6. Magazine advertisement and promotional
packets exported
Jan Feb Mar Apr May Jun July Aug Sept Oct Nov Dec
PREPARED BY NAGANANTHYINI A/P NAGASERAS
Page 27
INTI INTENATIONAL COLLEGE SUBANG (IICS) MKT 305 MARKETING
PLANNING IN PRACTICE Media Schedule We will advertise year round,
but placing a larger emphasis on the months of January, February,
September, October, and December because festive season and school
holidays. First, January and February are the months in which
people begin and try to maintain their New Years Resolution.
Promoting a snack which contains healthy ingredients will help
those dieters to stick to their resolutions easier and for a longer
period of time. Second, we choose January and February because
those are the months in which people begin to eat unhealthy foods
because Chinese New Year and to make a healthy lifestyle back
consumer more concern on the diets and health conscious. This is
one circumstance in which people white-knuckle through their diets.
As a result, they are more likely to give up because they just
cannot curb the sweet tooth. We choose September and October
because that is around Hari Raya Puasa and Hari Raya Aidilfitri,
and we will promote our OatKrunch product, and offer single serving
packages to be given to test or taste so that they purchased during
festival. Finally, we choose December because the holidays are a
very difficult time for consumers who are trying to watch their
weight. Our product will assist dieters in creating holiday
desserts that are concern towards health conscious, which will
lower the likelihood of gaining weight during the holidays rather
than eat unhealthy food.
PREPARED BY NAGANANTHYINI A/P NAGASERAS
Page 28
INTI INTENATIONAL COLLEGE SUBANG (IICS) MKT 305 MARKETING
PLANNING IN PRACTICE Control and evaluate In order to control,
evaluate and monitor the target customers opinion on the OATKRUNCH,
we will be distributing Consumer Surveys. These will help provide
us with the necessary feedback in determining the strengths and
weaknesses of our product, along with any modifications that are
necessary. Sampling stations will be set up throughout food
retailers, allowing consumers to taste our OATKRUNCH product with
various flavours. The demonstrator will distribute the surveys to
the samplers, explaining that they will receive a coupon for RM
(Ringgit) off if they complete and turn in the survey. We hope this
incentive will encourage consumers to take a few minutes and fill
out the survey .In addition this surveys can be located on the
website, inside packages of our OATKRUNCH product. All completed
surveys will be rewarded with and incentive of 2 coupons for the
next package of OATKRUNCH purchased by giving the coupons to the
cashier in located sample outlet.
PREPARED BY NAGANANTHYINI A/P NAGASERAS
Page 29
INTI INTENATIONAL COLLEGE SUBANG (IICS) MKT 305 MARKETING
PLANNING IN PRACTICE Financial Information It will cost Munchys
Foods 5 million to develop the formula for the OATKRUNCH biscuits.
There is an increase cost of production of around RM4.30 and RM8.90
per package .The majority of this difference is due to more
expensive ingredients.
Sales Forecast Munchys Foods Inc. is projecting first year sales
to be around 2 million packages with most of those being sold in
the first 18 months of the year. The reason that Munchys Foods Inc.
is expecting greater sales in the first 18 months of the year is
that once the product hits the shelves, it will take time for all
the consumers to hear about the product. They are expecting sales
to increase in the 2013 by 2 million packages for a total of 7
million packages. The reason for the increase in sales is that by
2009, all stores should be carrying the Fat Free BITE and through
our aggressive marketing campaign most people would have heard
about the Fat Free BITE and they will desire to buy the product. By
the end of the first quarter of 2009, Negisco Foods Inc. forecasts
that the Fat Free BITE would have sold enough packages to earn a
profit. In order to evaluate and monitor the publics opinion on the
Fat Free BITE, we will be distributing Consumer Surveys. These will
help provide us with the necessary feedback in determining the
strengths and weaknesses of our product, along with any
modifications that are necessary. Sampling stations will be set up
throughout food retailers, allowing consumers to taste our new
product. The demonstrator will distribute the surveys to the
samplers, explaining that they will receive a coupon for dollar off
if they complete and turn in the survey. We hope this incentive
will encourage consumers to take a few minutes and fill out the
survey .In addition; surveys can be located on the website, inside
packages of our new product. All completed surveys will be rewarded
with and incentive of Rs 2 coupon for the next package of Fat Free
BITE purchased.
PREPARED BY NAGANANTHYINI A/P NAGASERAS
Page 30
INTI INTENATIONAL COLLEGE SUBANG (IICS) MKT 305 MARKETING
PLANNING IN PRACTICE BUDGET
Promotional Activity
Cost
Quantity
Total
Launch Product TV Advertisement Face book In Store Displays
Packaging Magazine
RM100,000 Est. RM350,000* free RM5,000** RM50,000^ RM10,000
1 2 ad designs 1 150 stores 2 periodically 5 different mag 75,
000 1 5 events /year
RM100,000 RM700,000 RM 0
RM750,000*** RM100,000 RM 50,000 RM900,000 RM150,000 RM350,000
RM 3,100,000
Promotional OatKrunch Packets RM12 Website Events Total
RM100,000 RM 50,000
*Nationally (Television Advertising Costs Primer 2010) **wages
(RM17/hr, for 6hrs/day for 10 days) + set up costs (RM5000/store
outlet) *** Rounded up for convenience and unexpected costs ^change
of design cost ^^Most cost is included in the TV advertisements and
packaging
PREPARED BY NAGANANTHYINI A/P NAGASERAS
Page 31
INTI INTENATIONAL COLLEGE SUBANG (IICS) MKT 305 MARKETING
PLANNING IN PRACTICE
REFERENCES
PREPARED BY NAGANANTHYINI A/P NAGASERAS
Page 32
INTI INTENATIONAL COLLEGE SUBANG (IICS) MKT 305 MARKETING
PLANNING IN PRACTICE
1.
http://www.tradingeconomics.com/malaysia/unemployment-rate
2. http://www.munchys.com/Index.aspx
3. http://www.redtick.com.my/productdetail.php?prodid=45
4. http://www.redtick.com.my/productdetail.php?prodid=1110
5. http://www.redtick.com.my/productdetail.php?prodid=2458
6.
http://www.fatsecret.com/Diary.aspx?pa=fjrd&rid=761747
7.
http://blog.securities.com/2011/04/malaysia-gdp-hits-high-2010/
8. http://www.sirim.my/f_corp/july04.pdf
9. http://www.malaysiahalalfoods.com/
10. http://www.ats.agr.gc.ca/ase/5842-eng.htm
11. Raghunathan, R. Naylor, Hoyer, W 2006, the unhealthy = tasty
intuition and its effects
on taste inferences, enjoyment and choice of food products,
Journal of Marketing, vol. 70 iss. 4 pp. 174
PREPARED BY NAGANANTHYINI A/P NAGASERAS
Page 33
INTI INTENATIONAL COLLEGE SUBANG (IICS) MKT 305 MARKETING
PLANNING IN PRACTICE
APPENDICES
PREPARED BY NAGANANTHYINI A/P NAGASERAS
Page 34
INTI INTENATIONAL COLLEGE SUBANG (IICS) MKT 305 MARKETING
PLANNING IN PRACTICE Appendices 1
Country 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
2010 Malaysia 5 8.6 0.3 4.2 5.2 7.1 5.2 5.9 6.3 4.6 -1.7 7.2
Appendices 2
PREPARED BY NAGANANTHYINI A/P NAGASERAS
Page 35
INTI INTENATIONAL COLLEGE SUBANG (IICS) MKT 305 MARKETING
PLANNING IN PRACTICE Appendices 3
PREPARED BY NAGANANTHYINI A/P NAGASERAS
Page 36
INTI INTENATIONAL COLLEGE SUBANG (IICS) MKT 305 MARKETING
PLANNING IN PRACTICE Figure 1
Description: IKO Assorted Oat Calcium Cracker (Competitor of
Munchys)Nutrition Amount Calories Total Fat Saturated Fat Trans Fat
Cholesterol Sodium Total Carbohydrate Dietary Fibre Sugar Protien
Vitamin A Vitamin C Calcium Iron 100g/Serving 512 kcal 26.6g 13.5g
0g 0mg 403.2mg 59.7g 9.0g 14.6g 9.0g 0% 0% 7% 4% 22.3g/Serving 114
kcal 5.9g 3.0g 0g 0mg 89.9mg 13.3g 2.0g 3.2g 2.0g 0% 0% 7% 4%
Ingredients Whole meal Flour, Vegetable Oil (Palm Oil), Oats,
Sugar, Rolled Oats, Glucose Syrup, Sesame, Evaporated Creamer,
Pumpkin Seed, Calcium Carbonate, Raising Agent [Sodium Bicarbonate
(E500)], Seaweed and Salt. (Allegry Alert) Contains: Gluten (Wheat
and Oats), Milk and Soybean product. May Contain traces of
nuts.
PREPARED BY NAGANANTHYINI A/P NAGASERAS
Page 37
INTI INTENATIONAL COLLEGE SUBANG (IICS) MKT 305 MARKETING
PLANNING IN PRACTICE
OatKrunch Strawberry & Blackcurrant, OatKrunch Chuncky
Organic Hazelnut and OatKrunch Dark Chocolate
Nutrition of OatKrunch ( 100g /serving)Calcium 16% Protien 13%
Iron 9% Dietary Fibre 13% Sugar 49% Dietary Fibre Sugar
ProtienCalcium Iron
Nutrition of OatKrunch ( 30g /serving)Iron 19% Dietary Fibre 8%
Calcium 34% Protien 8%PREPARED BY NAGANANTHYINI A/P NAGASERAS Page
38
Sugar 31%
Dietary Fibre Sugar Protien Calcium Iron
INTI INTENATIONAL COLLEGE SUBANG (IICS) MKT 305 MARKETING
PLANNING IN PRACTICE
Competitors Nutritions
IKO Assorted Oat Calcium Cracker9.0% 7.0% 4.0% 9.0% Calcium Iron
14.6% Dietary Fibre Sugar Protien
Nutrition of Julie's Oat 25 Strawberry1.0%2.0% 1.0% 4.0% Calcium
Iron Dietary Fibre Sugar Protien
0.0%
PREPARED BY NAGANANTHYINI A/P NAGASERAS
Page 39
INTI INTENATIONAL COLLEGE SUBANG (IICS) MKT 305 MARKETING
PLANNING IN PRACTICE
Competitors Websites
PREPARED BY NAGANANTHYINI A/P NAGASERAS
Page 40
INTI INTENATIONAL COLLEGE SUBANG (IICS) MKT 305 MARKETING
PLANNING IN PRACTICE
PREPARED BY NAGANANTHYINI A/P NAGASERAS
Page 41
INTI INTENATIONAL COLLEGE SUBANG (IICS) MKT 305 MARKETING
PLANNING IN PRACTICE
Munchys Brand Logo Evolution: As the years went by and business
thrived, the name Munchys began to gain popularity amongst biscuits
lovers. From Malaysias local shores, the name Munchys caused many
hungry tummies to squeal excitedly. Evolving from the Original
Equipment Manufacturer to a household name, this meant that they
also had the key ingredients and knowledge to build the brand name
and brand affinity, thus creating the irresistible brand known as
Munchys, which was born in 1993.
PREPARED BY NAGANANTHYINI A/P NAGASERAS
Page 42