CHAPTER 1: INTRODUCTION

1.1 THE BASIC NEEDS OF THE CONSUMERS TOWARDS THE BRAND

Human needs are state of felt deprivation. It includes basic physical

need for food, clothing, warmth, and safety. For social needs is belonging and
affection. Individual need for knowledge and self-expression is also some of
human need. For consumer use their product is because of consumer basic
physical need which is food. Food is most important thing and all people need
food to live.

1.2 THE BASIC WANTS OF THE CONSUMERS TOWARDS THE BRAND

Wants are the form human needs take as they shaped by culture and
individual personality. Wants are shaped by one’s society and are described
in terms of objects that will satisfy needs. Malaysian customer love to have a
spicy food and to satisfy their wants they buy product although there is other
product in the market. Consumer buy product because of their brand name
and quality to fulfill their needs and wants. It is because brand name is
popular among Malaysian buyers.

1.3 CONSUMER DEMAND TOWARDS THE BRAND

Demand is form by wants and buying power. Consumer that have basic
wants toward and combined with their buying power will become demand. If
there still have basic wants for consumer toward product, there will always
have a demand toward product. also play a significance role in spicy food
product such as curry powder and the demand for it is always available.

1.4 TYPE OF PRODUCT: TANGIBLE OR INTANGIBLE

Alagappa’s is known as a tangible product and didn’t provide services
but they provide spices product such as curry powder, coriander powder,
kurma mix powder and etc. Product is anything that can be offered to a
market for attention, acquisition, use or consumption and that might satisfy
consumer wants and needs.

1.5 LEVEL OF PRODUCT: CORE BENEFIT/ACTUAL PRODUCT/AUGMENTED

PRODUCT

Level of product is consist of core benefit, actual product, and

augmented product. Core benefit is the most basic level in level of product.
When designing a product, marketer that is must first define the core,
problem-solving benefits or services that consumers seek. For Alagappa’s
what consumer seeks is spicy product for cooking. By examining the core

1
 benefit in greater perspective Alagappa’s can discover its real market
position.

The core benefit then will be turning to actual product by product

planner of Alagappa’s. It needs to develop product features, design, a quality
level, a brand name, and packaging. Alagappa’s curry powder is an actual
product. Its name, styling, features, packaging and other attributes have all
been combined carefully to deliver core benefit.

Then Alagappa’s must build augmented product around the core

benefit and actual product by offering additional consumer services and
benefits. Alagappa’s offer more than just curry powder, they also provide
food recipe. These benefits have satisfied consumer needs.

1.6 PRODUCT LINE

Product line known as a collection of products, offered by an
organization which are closely related in use and in production and marketing
requirement, that satisfies similar needs for different target market. Thus all
products within a product line are related, but may vary in terms of size,
color, quality etc. For example, a company such as may define its product
lines as still spice powder such as curry powder, coriander powder, chili
powder and etc. These labels make sense because those groups involve
different spices and they also sell it to different customers and markets.

Alagappa’
s
Spice
powder

Alagappa’ Alagappa’
Alagappa’ Alagappa’ Alagappa’
Alagappa’ s s
s s s
s Meat Kurma
Chilli Fish Curry Fennel
Coriander Curry Curry
powder powder powder
powder powder powder

Figure 1.0 Alagappa’s Product Line’s

1.6(A) PRODUCT ITEM

A product line consists of a number of product items. These are the
individual products or brands, each with its own features, benefits, price,
etc. Therefore, Alagappa’s had a product line called spice powder, the
product items within it will be chili powder, coriander, fish curry, meat
curry, kurma curry, fennel, briyani masala, kesari, kacang dhal goring and
etc. Product line extensions can give customers greater choice and help to

2
 protect the organizational from a flanking attack by a competitor. Product
line extensions in organizational can offer more or better features such as
easier to use, safer, more attractive and etc which can get existing
customers to re-purchase more quickly than they would normally.

1.6 (B) PRODUCT LINE LENGTHS

The total number of items within the product line is the product line
length. Alagappa’s product line length has been shown at Figure 1.0. Its
equivalent for industrial range of spice powder would probably be even
longer.

1.6 (C) PRODUCT LINE DEPTHS

The depth of the product line refers to the number of different products
offered in a product line. For example, Alagappa’s has about a dozen
different products in its spice powder product line that include several
spice powder such as curry powder, briyani masala, kacang dhal goring
and etc. Each of these items is promoted as distinctive, although they
share the same distribution channels and similar manufacturing facilities.
It’s also fitting into different price segments ranging from under MYR0.50
to over MYR5.00 following the size of product. A product line may be
targeted to a particular customer group, such as hypermarket or
supermarket and etc.

1.6(D) BRANDING
Branding is an important element of the tangible product. It’s
particularly in consumer market which means of linking items within a
product line or emphasizing the individuality of product items. Branding is
needed for to enable effective communication to build the brand. Branding
can also help in the development of a new product like by facilitating the
extension of a product line through building on the customer’s perceptions
of the values and character represented by the brand name.

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 Branding
Branding is very important for to ensure their consumer identify
the product and quality of product in the market. Brand also can help
to provide legal protections to the product where can segment their
product in market easily.

1.6(E) THE MEANING OF BRANDING

Alagappa’s branding of which consumers recognize this company as

one of the company that produce spice powder product in the consumers
market which we can see in the packaging itself that show a lot of spices.
Machine in the round yellow color mean type of tool did they use to
process spices.

1.6 (F) BRAND NAMES

Alagappa’s categorize as a good brand name which consist of good
characteristic such as easy to remember, easy to pronounce, easy to
translate into foreign language, capable to registration and legal protection
in manufacturer brand which can easily be found in market, can suggest
products benefits and qualities, distinctive and etc.

1.6(G) BRAND DEVELOPMENT

(i) Line extension
Line extensions are one of the choices that can help to developing
brands. Line extensions occur when a company introduces additional
items in a given product category under the same brand name, such
as new flavors, forms, colors, ingredients or package sizes. For
example, Alagappa’s not only produce chili curry powder but
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 Alagappa’s also produce new product with new flavors, colors and
ingredients such as briyani masala, “kacang dhal goreng” and etc.
Alagappa’s also provide different type size of packaging such as 25g,
100g, 250g and etc.

(ii) Brand extension

Brand extension involves the use of a successful brand name to launch
a new or modified product in a new category. Unfortunately,
Alagappa’s only involve in one product which is spice powder product.

1.7 PRODUCT FEATURES AND VALUES

A product can be offered with varying features. Features are
competitive tool for differentiating the company’s product from competitor’s
product. The most effective ways to compete is being the first producer to
introduce a needed and valued new feature. For example, Alagappa’s
produce mostly spices product and to become the biggest company in the
market. Therefore, they must become the leader in the manufacturing spices
product to be sold to the consumers in the market. They provide variety of
spices which consumer can choose easily in the market. This can give
satisfaction to the consumers towards its product.

1.8 MARKET FOR THE PRODUCT

Alagappa’s product can be found in every place in Malaysia, such as
hypermarket, supermarket and etc.The larger populations in Malaysia can
help to increase their revenues and sells which Alagappa products are easy
and convenience to buy by their customer.

Alagappa’s also market their product to the other country such as

Singapore and Indonesia. Alagappa’s done a research in these two places
which they realize that Singapore also has a high demand for curry product
because there has a lot of Indian community live in Singapore. Meanwhile, in
Indonesia has a high demand also in curry product because of their culture
that like to eat spicy food. Alagappa’s see the opportunity and seize it to
build their company platform in these two countries by export their product
there and nowadays they known as one of the top company who produce a
quality spice product to its customer.

1.9 VISION/MISSION AND OBJECTIVES OF THE COMPANY

Alagappa’s vision is want to achieve all matter below:-
1. To be largest packed food manufacture in Malaysia by year 2013.

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 2. To produce delicious and high quality food in accordance with
international HALAL standard.
3. To become the largest distributor consumer products in Malaysia by
year 2013, distributing products other than those produce by
Alagappa’s.
4. To become a multinational company in food and consumer products
processes.

Alagappa’s mission is to offer products that contribute to customers’ needs

and wants

1.10 STRATEGIC BUSINESS UNIT (SBU) ANALYSIS OF ALAGAPPA’S SPICES.

Strategic business Unit is use whenever a firm or company wants to do

some planning about the products and markets .It’s always been used when
a company or firm is getting large in tem of production. These organizational
entities are large enough and homogeneous enough to exercise control over
most strategic factors affecting their performance. They are managed as self
contained planning units for which discrete business strategies can be
developed. 1A Strategic Business Unit can encompass an entire company, or
can simply be a smaller part of a company set up to perform a specific task.
The SBU has its own business strategy, objectives and competitors and these
will often be different from those of the parent company. An SBU is an
operating unit or planning focus that groups a distinct set of products or
services, which are sold to a pre existing of customers, facing a set of
competitors. The external (market) dimension of a business is the relevant
perspective for the proper identification of an SBU. Therefore, an SBU should
have a set of external customers and not just an internal supplier. Alagappa’s
have a good SBU that has help them to evaluate the best products to offer
the customers and markets.

1.11 BOSTON CONSULTING GROUP MATRIX ANALYSIS ON THE

PRODUCT/SBU FOR SPICES

The BCG matrix helps you to have an overall view of your current
Products and Business in order to make some profitable business decision for
your firm or company. This Matrix lend a help to you to have a view and
determine which products or business portfolio should be given more
concentration towards production, adding resources and so on. It’s a method
to evaluate the lost and gain of a firm or company when producing a product
or invest in a business. On the other way BCG Matrix can help you to know

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Principles Marketing, Fourth edition, by Thomas C.Kinnear, Kenneth L, Bernhardt,Kathleen A.Krentler
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 which business products or portfolio that had a less impact in market in the
form of sales and profit as well as popularity.2This Matrix will help you to
determine and choose the best planning and strategy that able to produce
the best results sales and form a good development of new or different
business portfolios. There are four types of it Strategy Business Unit (SBU)
such as Star, Cash Cow, Question Marks and Dogs.

STARS QUESTION MARKS

ALAGAPPA’S FISH & CHICKEN ALAGAPPA’S TUMERIC & CURMA
POWDER POWDER

CASH COWS DOGS

ALAGAPPA’S CHILLI POWDER ALAGAPPA’S KESARI & MURUKKU
MIX

HIGH LOW

RELATIVE MARKET SHARE

STAR
Stars are highly rated at market growth rate. They had a very good sales of
business and have a very good potential of business expanding and had a very
good shares on products that they produced and business that they make .They
must be provided with lots of injection in term of investment for example in finance
to secure and maintain their rapid growth. For example we can use Chicken & Fish
Curry powder. This powder has good demand in market as well. This product had
very good market growth and have a high share value seems this is one of the main
product Alagappa’s Spices (Business Portfolio).This Chicken & Fish Curry powder
often need a lot of cash injection to maintain and keep the products cope with
competitors products and keep the rapid growth. If there is possibility of these
products turn to Cash Cow then these products growth can slow down a bit based to
current market condition.

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Marketing An Introdiction an Asian Perspective, by Gary Armstrong, Philip Kotler, Geoffrey da Silva
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 3

CASH COWS
Cash Cows are reted low at market growth. They did not a have very good
growth of production in term of sales and profits. But they had a high rated growth
of market share in tem of Business and products. They are someone who already in
the market and do not have to do heavy investment to make their availability
counts. Commonly they are successfully established SBU’s and often don’t need
heavy injection to say put to the market. Cash cows are the one who produce a lot
cashes that their companies or firm make use it to pay their debts, bills and use it
as an alternative to support the Other form of SBU’s such as Question Mark and
Dogs .In this case we take Chili Powder as an example. This product have good
business market share of Business and products .This product is one of the famous
and common product in Alagappa’s Business Portfolio. The cash that been generate
by this product is been used to support the products that in other SBU’s like Star
and Question mark.

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Principles Marketing, Fourth edition, by Thomas C.Kinnear, Kenneth L, Bernhardt,Kathleen A.Krentler
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Marketing An Introdiction an Asian Perspective, by Gary Armstrong, Philip Kotler, Geoffrey da Silva.
Effective Marketing, Third edition, by William G and Michael d’Amico, m/s 190-204

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QUESTION MARK
Question marks are rated low at market share in the form of business
units .The products in question marks are not so popular and used seldom only in
the market. These products are those who not having rapid demands in the
markets. But they had a high growth in the markets. They often need a heavy
injection of supports in term of cash to keep their shares alive and increase the
shares by its own capacity. They companies or firms ultimate decision makers have
to think carefully about some critical decision that they have to make regarding to
which products they have to be keep produced and build it to question marks and
which one that have to be kicked out from the markets or phrased out from the
production list. For Example, Curma & Tumeric Powder is one in the Question mark.
This product is seldom use in the market but still have the demand for it anyway.
This product has to generate lot cash in term of sales to keep hold to their share
and products. The management of have make decision about wherever this
product should be make as question mark or just phased it out from the production
and replace with new product.

DOGS
Dogs are rated low at growth. They don’t any good business either sale in
markets in term of share and production growth. They are very low at growth as
well. They have to make cash to survive in the market. For example, sweet flavors
such as Murukku and Kesari Mix. These kind of products have less demand in the
markets (Usually the demand will only be during festival times). Sometimes they
have to generate a vast amount of sales in order to maintain themselves in the
markets but cannot promise that it could the large scale of source of cash.

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 5

1.12 GRID EXPANSION ANALYSIS ON THE MARKET/PRODUCT OF SPICES

Grid expansion analysis is key function to identifying the possibility of a firm
or companies growth through various type of option such as Market
Penetration, Market Development, Product development or Diversification.
This Market expansion had its own Main function to analysis and shows the
growth direction of a firm, company or even a product.

EXISTING PRODUCT NEW PRODUCT

MARKET PRODUCT

PENETRATION DEVELOPMENT

MARKET
DIVERSIFICATION
DEVOLOPMENT
MARKET PENETRATION
Market penetration is a strategy or tactic used by a firm or company to
increase the sale of the existing product without no influence in the form
product replacement or market replacement. Some of new strategy will be
always used to increase the sales such as special promotion .Other than that
open new outlets to increase to supply of the product to increase the sales of
the product or just add some extra specification to the current product or
brands.6 Supporting tactics may include greater spending on advertisement
or personal selling. It’s a case of how a company sells more its present
product to its pre existing market. In the case of Alagappa’s products, they

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Marketing, 11th edition,(Page69) by Micheal J.etzel, Bruce J.walker, William J.Stanton (1997)
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Marketing 11th edition , by Micheal J.Etzel , Bruce J.Walker , William J.Stanton (1997).Page 69.
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 had some new marketing styles such as product modification like readymade
small size packets of fish and meat curry powder in order to increase the
sales of current product without changing the product. It has increased the
firm’s intensity of the firms marketing effort in its current markets with pre
existing product.

CHAPTER 2: MARKETING STRATEGY AND MARKETING MIX

2.1 MARKET SEGMENTATION:

GEOGRAPHIC/DEMOGRAPHIC/PSYCHOGRAPHIC/BEHAVIORAL

SEGMENTATION
Market segmentation can be defined as dividing market into distinct
groups with distinct needs, relatively, characteristics or behavior who might
require separate products or marketing mixes. The purpose of market
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 segmentation is to enable the marketer to tailor marketing mixes to meet the
needs of one or more specific segments. The Choosing the right segmenting
criteria is important so that the marketing plan can be carried out correctly.7
Alagappa’s Flour Mills SDN BHD actually segmenting consumer markets as
they offering various products to the consumers. They have tried different
segmentation variables to find the best way to view the market structure, to
gain the maximum profits and to fulfill customers’ satisfaction.

One of the segmentation variables for consumer markets is

geographical segmentation. Alagappa’s divides the market into different
geographical units such as country, city or metro size, market density and
climate. Alagappa’s nowadays focus more on Malaysia market. However,
Alagappa’s also export their products to others counties, such as Singapore
and Indonesia. Today, we can found products in many places in Malaysia,
such as hypermarket, supermarket, minimarket, and general merchandise. It
means, not only can found the Alagappa’s products in big cities, but also in
smaller towns. Alagappa’s products sell in every place in Malaysia which
crowded with people. So, the larger populations in Malaysia can increase their
revenues and sells which the Alagappa’s products is easy and convenience to
buy by their customer.

Besides that, demographic segmentation divides the market into

groups based on variables such as age, gender, family size, family life cycle,
income, occupation, education, religion, race, generation and nationality. For
Alagappa’s, They offer products that are suitable for all age, low and middle
income workers or family. Furthermore, Alagappa’s mainly consumer target is
aim to the women group which already married and usually cooks, because
they are the person who prepare foods for their family everyday and has a
big demand from them. Products always attract the housewife group who
like convenient and good taste of product. Nowadays, the consumers prefer
something that is easy to prepare, especially food. Alagappa’s product is
produced in various type of package which is easy to measure for serving and
easy to uses.

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Marketing, Third edition, by Lamb, Hair, McDaniel
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(Alagappa produces their products into small package<250Gram or 25Gram>
which are
very convenient to uses.)

By the way, products also come with the HALAL recognition from
government so it suits all the religions and races since our Malaysia is a
multi-racial country, this might help them to expand their business in
Malaysia successfully and develop to others Islamic countries all over the
world in the future. Furthermore, Alagappa’s has their own spice powder
recipes which can attract all the races. For example, chili powder, meat curry
powder, fish curry powder, coriander powder, fennel powder, kurma curry
powder, kesari mix powder, and briyani masala powder. By the way, they
focus most on the Indians group because they are more prefer to eat spice
foods compare to others races such as Chinese group. These are the some
example of Alagappa’s products.

Other segmentation variable for consumer markets is psychographic

segmentation. Psychographic segmentation defined as method of dividing markets
based on personality, motives, and lifestyle.8 Base on the personality concept,
Alagappa’s mainly focus in Indian group which they are influence by the culture.
Normally, Indian group likes the spice foods such curry and kurma recipe. So,
Alagappa’s products are hit their wants and needs. In the motives concept, the
consumers’ motives are the “real spice and real curry powder”. So, the Alagappa
provide good quality and good taste in their products to the customers which can
gain the customers loyalty. Besides, Lifestyle refers to a set of values or tastes
exhibited by a group of consumers, especially as they are reflected in consumption
patterns.9 Compare the traditional and modern lifestyle. People usually use
traditional way (original spice) which uses the nature ingredient the make the food
in old lifestyle, but in the modern lifestyle, people prefer uses the convenient
packaging and Alaggapa’s surely fit customer demand.

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Marketing, Third edition, by Lamb, Hair, McDaniel.
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Principles Marketing, Fourth edition, by Thomas C.Kinnear, Kenneth L, Bernhardt,Kathleen A.Krentler.
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 The last major segmentation variable for consumer markets is the behavioral
segmentation. This segmentation is dividing a market into group base on consumer
knowledge, occasions, attitude, and use, response to products, benefits, and loyalty
status.10These behavior variables are the best starting point for building market
segments. Alagappa’s using the “ CURRY KING” interior concept as their strategies
to provide consumers a good image and good tastes on the products.

Use “CURRY
KING”

Base on the knowledge concept, customers always choose the product that
they feel is safe to consume. curry powder is free of coconut milk which identified
as high fat food and may cause heart disease, certain cancer, obesity and diabetes.
Furthermore, the food content of products is list complete in the package. It makes
the customers have a positive response to the products. Besides, I suggest that
Alagappa’s Company should improve their products packaging change to the
“vacuum packaging” which can make the customer feel “safety to use” and it can
increase the customer loyalty on their products.

In short, choose bases segmentation for managing profitable customer

relationship, attracting new customers, and growing current customer by delivery
satisfaction. Furthermore, should increase their products line and develop their old
products. Besides, should enhance their promotion to attract new customers.

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Marketing An Introdiction an Asian Perspective, by Gary Armstrong, Philip Kotler, Geoffrey da Silva.
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2.2 TARGET MARKETING: UNDIFFERENTIATED MARKETING/
DIFFERENTIATED MARKETING/ CONCENTRATED MARKETING/
MICROMARKETING

TARGETING
Targeting can be defined as a set of buyers sharing common needs or
characteristics that the company decides to serve. There are three
approaches in the target market which is differentiated or segmented
marketing, undifferentiated marketing or mass marketing, concentrated or
better known as niche marketing, and micromarketing.

In differentiated or segmented marketing, the company normally

decides to fulfill each of the company’s segments need specifically.
Undifferentiated or mass marketing is a market where the company
decides to sell its product in a massive and consistent way across all of its
target segments, it means a marketing effort not targeted at specific market
segment but designed to appeal to a broad range of customers. The
approach is appropriate in a market that lacks diversity of interest.11 As for
the concentrated or niche marketing, the company will only focused on
one segment where they can serve best and fulfill that one particular
segment’s need . And the last is Micromarketing which meaning practice of
tailoring products and marketing programs to the needs and wants of specific
individuals and local customer group (include local marketing and individual
marketing).12

Before select appropriate target segments, Alagappa’s should evaluate

their market segments through three factors: segment size and growth,
segment structural attractiveness, and company objectives and resources.
Obviously, Alagappa’s can be considered as “Small fish in a large lake”
because there have many others spices powder competitors in the market,
such as IKAN BRAND, MAK NYONYA, BUNGA RAYA, ADABI, 888, SING LONG,
A1, AYAM BRAND, and others. It means the Alagappa’s Company do not have
very large market share in the market since there are too many rivals in the
spice powders market and we cannot deny that is sandwiched by its
competitor.

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Effective Marketing, Third edition, by William G and Michael d’Amico, m/s 190-204
12
Marketing An Introdiction an Asian Perspective, by Gary Armstrong, Philip Kotler, Geoffrey da Silva,
m/s228-231
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(From these pictures, we can see that there are many spice powder company in the
market)

After evaluating the different market segments, uses undifferentiated

marketing or also known as mass marketing strategy in the target marketing
because ignore market segment differences and go after the whole market
with one offer. I feel that using the undifferentiated approach because it
offers consumer a single product or product line using a marketing mix.
Alagappa’s is selling the spice products which is suitable uses for all
customers. This is a logical approach for markets that are generally
homogeneous. By using this strategy, Alagappa’s can save organization cost
of marketing research and the administrative difficulties of segmenting a
market. In addition, it can facilitate long runs in the production of
manufactured goods and thus provide economies of scale.

2.3 MARKET POSITIONING USING POSITIONING MAPS

Market positioning is a arranging for a product to occupy a clear,

distinctive and desirable place relative to competing products in the minds of
target customers. Implanting the brand’s unique benefits and differentiation

16
in customer’s minds also involved in positioning. A product’s position is the
complex set of perceptions, impressions and feelings that consumers have
for the product compares with competing products.

In planting their positioning strategies, markets often prepare

perceptual positioning maps, which show consumer perceptions of their
brands versus competing products on important buying dimensions.
Positioning map can provide vital marketing insights which are different
brands occupy different “spaces” in the map, a concentration of preferences
based on specific product attributes and show “gaps” or empty spaces where
no or few competitors exists.

Quality
High

ALLAGAPPAS
Price

Low High

Low

Markets have to understand target customers’ needs better than

competitors do and to deliver value as the key to winning target customers
and building profitable relationships with them. To the extent that a company
can position itself as providing superior value, it gains competitive
advantage. Actually, positioning begins with differentiating the company’s
marketing offer so that it will give consumers more value than competitors’
offers do.

For, the markets must think through the customer’s whole experience
with the company’s product and service in order to find the points of
differentiation. An alert company can find ways to differentiate itself at every
point where it comes in contact with customers, for example. There are five

17
 specific ways of differentiation that company can differentiate its offer, which
are product differentiation, services differentiation, channel differentiation,
people differentiation, and image differentiation. Alagappa’s has
differentiated its offer in several differentiations, which are product
differentiation, and image or brand differentiation.

For product differentiation, Alagappa’s has differentiated their products

on ingredients and tastes. Nowadays, customers are concern about the taste
of quality food which they can make by them own. Customers believe that
home cooking is the best for them because they can estimate what kind of
spices they want to use. Too much MSG in outside food makes them feel a bit
worried which they believe that can affect their health. Based on such trend,
has differentiate ingredients of their spices by using original spices which can
provide special quality without any adding extra ingredient such as MSG. For
examples, .Besides that, Alagappa’s also produce different type of product
flavor such as curry powder, coriander powder, fish curry, briyani masala and
etc which can be use by customers with different taste of dishes. It has
seemed that considers of its customers’ needs, wants and demands in
providing different type of curry product. This make different from other spice
company and it has become one of competitive advantages for in competing
with its competitors. Thus, has attracted many customers in buying their
products and become their loyal customers in the future.

Even when competing offers look the same, buyers may perceive a
difference based on company and brand image differentiation. A company or
brand image should convey the product’s distinctive benefits and positioning.
Developing a strong and distinctive image calls for creativity and hard work.
The chosen symbols, characters, and other image elements must be
communicated through advertising that conveys the company’s or brand’s
personality. Alagappa’s has implanting its brand’s unique benefits and
differentiation in customers’ minds. Alagappa’s brand is combination of
words ‘Ala’ and ‘Gappa’s’ which mean “handsome father”. Its brand has been
positioned as its products originated from natural plant and health concept.

2.4 MARKETING MIX CONCEPT: 4 P’S

Marketing mix is a concept where it compromises four key areas of

decision making that is product, place (distribution), promotion, and price
that creates an integrated and consistent offering to potential customers that
satisfies their needs and wants. These four are also known as 4 P’s.

1. Product

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 Alagappa’s is a flour mills and spices product that is use as flavoring in
cooking. There are a lot of Alagappa’s products such as chili powder, meat
curry powder, fish curry powder, coriander powder, fennel powder, curry
powder, kesari mix powder, and briyani masala powder. product is more
healthy food; this is because there is not used of coconut milk which can
cause fat and cholesterol in human body. Nowadays, consumers are concern
about their health in the society because of the environment pollution. Plant
which has been affected by the pollution will affect consumer’s health. It is
very important for to provide healthy spices towards its customers in fulfilling
their customers’ needs and wants in the market.

2. Place
Alagappa’s can be found in every supermarket, hypermarket even at
grocery store around Malaysia. Alagappa’s also exported to some Asia
country such as Singapore, Indonesia and others. The Alagappa’s Company
will do a research first before they can expand or export their product to any
supermarket or other country. The content of research consist of direct cost
per selling (need to look in other area before fixing the price such as shipping
and others), sales projection, and profitability projection (how much will they
earn after selling their product in places they choose). After the product start
being sold, the company will continue to analyze the daily sales analysis,
monthly sales analysis and also yearly sales analysis. Apart from that, the
marketing team in the company will continue to think how to promote their
product and have a new marketing strategy for their product. Then the
Research & Development (R&D) team will also continue to create new
product for the consumer and material cost reduction to maximize company
profits.

3. Promotion
Promotions strategy that had been use by Alagappa’s product is
advertising through internet, article or giving brochure to attract customer
attention. Promotion also knows as marketing communications are to inform,
persuade, or remind customer about the product being offered and to
position the product in the marketplace. Another promotion strategy that
always been used is thought mouth-to-mouth. Mostly, when people were try
something good, they will promote it to their friends.

4. Pricing
Price is a key element of the marketing mix because it represents on a
unit basis what the company receives for the product or service that is being
marketed. Price that has been set by Alagappa’s is affordable and this let
many people afford to buy their product. For example, product and price
showed as below.

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 Product Price

2.4(A) SWOT ANALYSIS OF ALAGAPPA’S

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Strengths
• Provide variety of spices
products.
• Considerable financial support.
• Price of the products is based on
the ingredients which are used.
• The location of the outlets most
places in the town especially in
hypermarket, supermarket and
etc where got a lots of people.
Weakness
• Mostly people will more loyal to
the ADABI or BABAS’s product.
• Product line is limited.
• Less promotion
• Packaging broke easily.
• Seldom brings out new ideas on
the products.

Opportunities
• Accelerate growth in
spices in curry powder.
Threats
others • There are competitors will
opening up in locations where
we are absent.
• Packaging of the product will
influence the quantity demand
and supply of Alagappa’s.

CHAPTER 3: MARKETING ENVIRONMENT

3.1 MICROENVIRONMENT

3.1(A) THE COMPANY MICROENVIRONMENT

The microenvironment includes those forces or groups that directly

affects, and are affected by, an organization’s major operations. Just like
other company, Microenvironment factor comprise that have a direct and
specific impact on the marketing operation of the company. An organization’s
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 competitive environment is often referred to as the industry in which the
organization competes. A fundamental step in strategy development is
anticipation and analysis of the major structural elements of the industry.
Marketing require building relationships with other company departments,
suppliers, marketing intermediaries, customers, competitors, and various
publics, which combine to make up the company’s value delivery network.

3.1 (B) THE COMPANY

The company plays a big role in designing marketing plans. In

designing marketing plans, marketing management take other company
groups into account. Closely how the other department interact with
marketing to provide customer value such as top management, finance,
research and development (R&D), purchasing, operations and accounting. As
well as, they have their own organization such as mention. The top
management sets the company’s mission, objectives, broad strategies, and
policies. Marketing manager makes decisions within the strategies and plan
made by top management. However, marketing managers must work closely
with other department because they have an impact on the marketing
department’s plans and actions. Finance is concerned with finding and using
fund to carry out the marketing plan. The R&D department focuses on
designing safe and attractive products. Accounting measuring revenues and
cost to help marketing know how well is it achieving its objectives. Therefore,
the company can provide the superior value and satisfaction to their
customer.

3.1 (C) SUPPLIERS

Supplier is very important in the customer value delivery system. As a

supplier they provide the resources needed by the company to produce its
good and services. Marketing managers must watch supply availability. It is
because supply shortages or delays, labor strikes and other events can cost
sales in the short run and damage customer satisfaction in the long run.
Besides that, supplier plays their roles as the partner to the marketer in
creating and delivering customer value. For example, have their own
supplier which supplies the product. It makes the go to the great length to
work with its suppliers. It could help them to test their new product in its
stores.

3.1 (D) MARKETING INTERMEDIARIES

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 Marketing intermediaries help the company to promote, sell, and
distribute its good to customer which is resellers, physical distribution firms,
marketing services agencies, and financial intermediaries. Marketing
intermediaries is a very important part to build customer relationship to
success. The promoter and sells agent pay a important role to promote, sell
and distribute its goods to customers. Normally they will provide or sell their
products to the reseller to sell to the customer, such as supermarket and
retailer.

Furthermore, they also help to conquers in the market which is the

customers can find the entire product in small or big supermarket.
Advertisement agencies also play a important role in marketing because
they are handle the job which inform customers about the latest promotion
of Alagappa’s . There is few type of promotion, such as make advertisement
in newspaper, organize cook competition, and sponsor. These kind of
promotions are flexible, broad acceptability, high believability and it can
penetrate the local market coverage effectively which is in Malaysia.

The delivery crew department also important as a intermediaries in the

company which deliver the stock. has their own delivery crew that include
contena and lorry. Financial intermediaries like the bank and financial
institution to manage their financial problem. Therefore, marketing
intermediaries play an important part in the company which can help to
organize company structure and movement to achieve the best
performance.

3.1 (E) CUSTOMERS

For their customer are categorized as the consumer markets.

Consumer market consists of individuals and households that buy goods and
services for personal consumption. Basically, their customer are likes the
housewife. It is because nowadays people are looking for the easy way in
preparing the dishes. So, in order to do that they can use the variety spice
that offered by the Alagappa’s. Alaggapa’s allocated its store at the place
that easy to contact with customer such as supermarket. Besides that, their
main target customer is the Indian group. It is because the Indian people
like to eat foods that more spicy compare to other races in Malaysia.
Besides, Customer always brought the product from mostly is for individual
and household uses.

3.1 (F) COMPETITORS

Every marketer they have their own competitor. A company must

provide greater customer value and satisfaction than its competitors do. As

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 a marketer, they must do more than simply adapt to the needs of target
customers.

Obviously, Alagappa can be considered as “Small fish in a large lake”

because there have many others spices powder competitors in the market,
such as IKAN BRAND, MAK NYONYA, BUNGA RAYA, ADABI, 888, SING LONG,
A1, AYAM BRAND, and others. It means the Alagappa Company do not have
very large market share in the market since there are too many rivals in the
spice powders market and they are sandwiched by its competitor.

No single competitive marketing strategy is best for all companies.

Each firm should consider its own size and industry position compared to
those of its competitors. The set of activities that organizations might
undertake when analysing competitors are:

• identifying the company’s competitors

• understand competitor’s objectives

• identifying competitor’s strategies

• assessing competitor’s strengths and weaknesses

• estimating competitor’s reactions

• selecting competitor’s to attack and those to avoid

3.1 (G) Public

In the company marketing there are various public. A public is a group

that has an actual or potential interest in or impact on an organization’s
ability to achieve its objectives. There are seven type of publics:

• Financial public
• Media public
• Government public
• Citizen action publics
• Local public
• General public
• Internal public

Alagappa’s is under the local public. In the local public its include
neighbourhood residents and community organization. Large company
usually appoint a community relations officer to deal with the community,
attend meeting, answer questions and contribute to worth whiles causes. The
skilful marketer must use effective public relations to effectively
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 communicate with different stakeholder groups and win support for its
marketing initiatives.

3.2 MICROENVIRONMENTS: PEST ANALYSIS

3.2 (A) The Company Macro environment

The macro or remote environment includes general forces that do not

directly touch on the short run activities of the organization but that can, and
often does, influence its long-run strategic decisions. These variables
generally affect, but in different ways, every single organization in the
marketing environment regardless of the industrial sector in which
organization operates. The number of possible strategic variables in the
macro environment is enormous, given the fact that each country has its own
unique set of macro variables.

The variables of the macro environment are categorised in different ways,

one of it is the PEST analysis. In order to identify and examine the possible impact
of the strategic variables of the macro environment, organization should
systematically scan and analyse the environment.

3.2 (B) PEST ANALYSIS

1. Political Factor

Political environment consist of laws, government agencies and

pressure groups that influence or limit various organization and
individuals in a given society. Political forces determine the stability of
market economies and affect investment climates and consumer outlook.
The government policy influence laws in the business. Political factors also
include relationship between countries.

Business is also governed by the social codes and rules of professional

ethics. Enlightened companies encourage their managers to look beyond
what regulatory system allows and simply do the right thing. Within the
domain of marketing there are many areas to maintain high levels of
ethical and professional conduct including selling, advertising, pricing,
product quality and safety and confidentiality and reliability in marketing
research.

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2. Economic Factors.

The economic environment consists of factors that affect consumer

purchasing power and spending patterns. These factors include current
income levels, prices, savings, dept, and credit availability. Changes in
major economic variables such as income, cost of living, interest rates,
and saving and borrowing patterns have a large impact on the
marketplace. Companies watch this variable by using economic
forecasting. Business does not have to be wiped out by an economic
downturn or caught short in a boom.

Changes in income will not affect the power buying of the product. It is
because the price of the product is cheap and affordable. Everyone can
afford it. Besides that, customers nowadays spent more carefully and
sought greater value in the products and services they bought. Value
marketing became the watchword for many marketers.

3. Sociocultural Factors.

In Malaysia there are many cultures. The cultural environment is made

up of institution and other forces that affect a society basic value,
perceptions, preferences and behaviors. Culture is impacted by many
factors such as race, language, custom, religion, education and others.
Cultures can impact on many areas of marketing program such as product
and promotions. Product must be adapted such as the contents, branding
and even color must be acceptable to local cultures. Alagappa’s also did
the same thing as well. They are not only focusing their product for the
Indians only but the other cultures too. Even though, their products mainly
are the Indian spices but then the other cultures also use it. Besides that,
Alagappa offer products that are suitable for all age groups no matter how
old they are, as a spice powder is quite acceptable by every status in the
market. Alagappa mainly focus on housewife who like convenient.

4. Technological Factors.

Technology is vital for competitive advantage, and is a major driver of

globalization. With technology that the company have now, it allow for
product and services to be made more cheaply and to be better standard
of quality. For examples, with the technology, the company can produce
more curry powder in term of the quality.

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CHAPTER 4: CONCLUSION

In a nutshell, human needs include food, clothing, warmth, safety, belonging,

affection, knowledge and self expression. Alagappa’s fulfill consumer need for food.
Wants are human need that be shape by culture that describe by object that can
satisfy consumer. Consumer buy Alagappa’s to satisfy they wants although there
are product in the market as well. Demand is form by wants and buying power.
Consumer always has a buying power. Their wants will form a demand toward
Alagappa’s product which known as a tangible product. It is because Alagappa’s
only provide product not services. The levels of product consist of core benefit,
actual product and augmented product.

Alagappa’s product line offer variety of spice product such as curry powder,
coriander powder, chili powder and etc. These labels make sense because those
groups involve different spices and they also sell it to different customers and
markets. Alagappa’s product line extensions can give customers greater choice and
help to protect the organizational from a flanking attack by a competitor. Besides
that, each of Alagappa’s items is promoted as distinctive, although they share the
same distribution channels and similar manufacturing facilities. It’s also fitting into
different price segments ranging from under MYR0.50 to over MYR5.00 following the
size of product.

Business portfolio has played a big part in contributing to a products growth

and sales .this is clearly shown in the case of Alagappa’s products. Alagappa’s
various type of business portfolio has made them enough profit to run their
business without loss. It has help Alagappa’s management to evaluate the products
value in the markets and make right decision to make sales and profits. The BCG
Growth Matrix olso has played an important part in contributing t sales of growth of
the products. This matrix help Alagappa’s firm to make strategic planning to
improve the quality of their products.So to with the market Expansion Grid. All Of
this has help the management of Alagappa’s to produce the best products to the
markets according to the current customer taste , needs and wants that suites their
buyig power.

In the other hand, the company should choose bases segmentation for
managing profitable customer relationship, attracting new customers, and growing
current customer by delivery satisfaction. Furthermore, it should increase their
products line and develop their old products. Besides, Alagappa’s should enhance
their promotion to attract new customers. Alagappa’s should do more detail on the
marketing research and the administrative difficulties of segmenting a market. In

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addition, it can facilitate long runs in the production of manufactured goods and
thus provide economies of scale.

The formulation of marketing strategy is the development of the long range

plans for the effective management of the major factors and key trends in an
organization’s marketing environment. Therefore, development of the Alagappa’s
company strategy should be based on the thorough understanding and effective
use of the environmental opportunities and threats while taking into account the
organization’s strength and weakness. For Alagappa’s company to remain
competitive, they will need to develop better methods of gathering, evaluating and
disseminating intelligence. As a result, the company will gain a success in today
business environment.

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