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Fraser and Neave Holdings Bhd (F&N) Group is a Malaysia based company that
specialized in beverages and Dairy products manufacturing. The beverage
brands under the umbrella of the F&N Group have become the preferred thirst
quenchers for countless generations of Malaysians. Moreover, F&N Beverages
Marketing Sdn Bhd is also Malaysias largest soft drinks manufacturer and
distributor. The company operates four manufacturing plants nationwide,
including its state-of-the-art facility at its headquarters in Shah Alam, Selangor.
FNBM distributes F&N products comprising 100PLUS, F&N Fun Flavours, F&N
Originals, SEASONS, Ice Mountain and Fruit Tree. F&N developed brands that
have become the market leader in many categories.
The 100 PLUS brand is well known as one of the most distinct and famous
brand of F&N, which is the market leader of the isotonic drink market. Nowadays,
F&N is one of the Malaysian first choice brand and started to expand its business
to more than 20 countries worldwide and becoming a regional player. Currently,
F&N possessed 60% of the soft drink market share in our country. F&N brands
are able to gain support from Malaysians because of the innovative and quality
products. F&N brands have already been with Malaysian for over 128 years since
year 1883. Various successful F&N products are launched, for example
sweetened condensed filled milk in 1973, a complete range of ice-cream series
in 1974 and the launched of 100 PLUS isotonic drinks in year 1984.
Among the various soft drinks developed F&N, the isotonic drink 100 PLUS
become famous and attracted most of consumers from all ranges of ages and
currently no. 1 in the isotonic drink market. 100 PLUS brand possessed more than
90% of the isotonic drink market share since 2010 till 2011. The increased
cautiousness of health among people give an opportunity to 100 PLUS to expand
its market to a new potential market. The stability of F&N brands especially 100
PLUS has come to epitomize the virtues of quality, fair pricing, universal
availability, and, above all, the celebration of life to be successful in the
beverage industry.
Becoming no. 1 in the market is not easy as to say and it is true to 100 PLUS as
this isotonic drink through a few phases to be popular among consumers
especially Malaysia. Carbonated soft drink has existed for a long time in Malaysia
and has been well accepted by the Malaysian. During the year 1983,
100PLUShad been introduced in Malaysia by F&N Beverage Manufacturing Sdn.
Bhd. with its objective to promote sports and active lifestyle. 100 PLUS is an
isotonic drinks that help to replenish the fluids and electrolytes that lose during
physical activities. 100 PLUS was not well known from the beginning of the
period but it was being promoted to the sports community. Slowly 100 PLUS was
incorporated into the sports community which was well accepted by the athlete
and become popular among them.
Over the years, peoples realize and concern more towards healthier life
and their positive perception on ideal diet food intake become plus point or
advantages for 100 PLUS isotonic. People begin to percent 100 PLUS as a healthy
drink and this drink become popular not only to sports personal but active
individuals and travelers also become attracted by the product as a thirst
quencher as it can replenish them compared to other soft drink. 100 PLUS then
had gained popularity among the people and with its advantages as the first
mover, it had become the nation recognized isotonic drink. In year 2010, 100
PLUS had dominated 90% of the isotonic drink in Malaysia.
Active individuals
Sports
Travelers and
Healthier lifestyle individuals
The Research and Development of F&N had identified the background and the
profile of 100 PLUS drink according the following components. The 100 PLUS
consumers consisting of the following geographic, demographic and behavior
factors as in Table 1.
Over one million people rehydrate, refresh and re-energize with 100PLUS every
24 hours in Malaysia, a number that continues to grow steadily. Thus, 100 PLUS is
an isotonic thirst quencher drink that helps active lifestyle individuals to restore
lost during physical activities which involve the dehydration and electrolyte
balance. 100 PLUS is trying to fulfill the needs of consumers which are described
as below:
i) Rehydration :
Consumers have become more actively involving in sports and physical
activities as they are more concern toward exercise for healthy life. While
exercising they might be facing dehydration as a result of fluid and
electrolyte loss. So the 100 PLUS can perform the action to replenish the
fluid loss and provide the maximum performance outcome for the
consumers.
100 PLUS has been well known for its dehydration purpose for sports people. For
the earlier time 100 PLUS purpose is to serve the athlete in recovering their fluid
balance for their maximum performance. Slowly it became well known in the
sports community for its hydration and healthier benefits compare to other soft
drinks.
With the rise of Malaysian toward healthier lifestyle through sport and
active living, it had given an opportunity for the 100 PLUS to market their
product. Since more people would be involved in physical activities for example
jogging, jungle trekking and many more. This lead to dehydration and the need
for isotonic drink is important for the body fluid recovery. Travelers could also
face dehydration easily and with the 100 PLUS isotonic drink it can easily
replenish them and giving them the daily peak performance. So 100 PLUS could
be very efficient in replenishing the consumers.
The scope of the market also has broadened through the improvement of
the economy where consumer had more choice to choose for their spending.
With the highest income, more consumers would choose to spend for activities
such as gym membership, fitness programs, sport centers for Futsal and
badminton, and also the recreational park. This showed that the consumers are
more concern towards their health which causes the growth of the isotonic drink
market. Teenagers and students also actively involved in sports in competition
which also broaden the market. So 100 PLUS had also tried to market their
product not only for athletes but also for active individual and travelers.
With the increase in average household income in Malaysia, it had broadened the
choice for the consumers to choose a better beverage drink for their daily life.
Before that most of the people would just prefer a cup of water but now they
would go for soft drinks, isotonic drinks and others. Consumers nowadays would
be concentrating more on the healthy lifestyle or more active lifestyle and this
lead to the growing awareness of the benefits of isotonic drinks. Not only that,
isotonic drink also helps individual to achieve daily peak performance. This led to
the increase demands for the isotonic drink and indirectly leads to the growth of
the isotonic drink market.
Strength Weakness
Opportunity Threat
2.2.1 Strength
The strength would be this product has high popularity among the isotonic sports
drinks in the market of Singapore, Malaysia, South Africa and the Philippines.
Besides, 100 PLUS has its own unique recipe and taste. It has differentiated
characteristics from the other soft drinks. For example, 100 PLUS is a healthier
soft drink with low sugar as compared to the other types of soft drinks. 100 PLUS
is best known for its great refreshing taste and its main purpose in preventing
dehydration. It also contains sufficient amount of sodium which encourages the
consumers to drink more to quench the body thirst. It has a unique formula
which combines fluids, carbohydrates and electrolytes for quick and efficient
absorption of fluids into the body. It is an isotonic drink that aids the body in
achieving hydration and electrolyte balance in the course of one day. In spite of
that, 100 PLUS meets the Nutritional Guidelines set by the Health Promotion
Board as a healthier choice for complete hydration.
2.2.2 Weakness
The weakness that can be detected is that 100 PLUS has a conservative
packaging that might lose out on attracting the attention of customers as
compared to competitors with eyes catching packaging design when stacked on
shelves in retail. For example the competitor product Revive has a more
attractive packaging and a younger generation approach type of packaging.
Other than that, the brand 100 PLUS itself has low product variety with only 4
types of 100 PLUS product and too dependent on the core product. This gives
consumers a less choice of drink and easily can create a niche for competitor to
differentiate their product with 100 PLUS.
2.2.3 Opportunity
The opportunity in the 100 PLUS brand is that it is one of the dominant brands in
the isotonic drink in the market. 100 PLUS this drink has been existing since 1983
and it is the oldest isotonic brand in Malaysia. It has been said to be dominant
isotonic drink in Malaysia.
Other than that, 100 PLUS which belongs to the brand F&N has been established
for a long time in the market. It has a good company system for distribution and
100 PLUS can together with this distribution chain distribute to the market. The
existing distribution channel is established and efficient.
Other than that, there is an increase demand on isotonic drink as people are
getting more health conscious. A soft drink that is famously knows as having
high sugar content and leading to disease like diabetes. Hence there is an
increase in the isotonic drink market demand. Nowadays people also drink
isotonic drinks which are less sugar content than that normal soft drink.
2.2.4 Threat
The main threat that 100 PLUS faced is the competitive threat. Basically, the 100
PLUS brand is facing competition from Revive and Excel brand, which are also
brands focused on isotonic drink markets. In terms of competition, these brand
has the price advantage over 100 PLUS brand. For example, 1.5 Litre Revive
isotonic drink has a 20% lower pricing if compared 100 PLUS.
2.3 Competition
F&N 100 PLUS currently offers a few products that consist of:
100PLUS success is mainly due to the ability to produce the product that meets
the consumers need. Besides that, the quality and taste also meet the
consumers expectation and preferences. 100PLUS is also the market pioneer
with its first isotonic drinks to be introduced to the Malaysian market and it had
gained popularity as well as brand reputation that lead to the success of the
product. It has become the market dominance and if the 100PLUS maintains its
quality, it can enhance customer loyalty to the brand. With all these advantages
100PLUS can become a profitable company which can sustain for the future.
100 PLUS is an existing business which had reached its maturity stage. There are
some critical issues that it had to be considered in order to sustain in the market:
The essence of the marketing strategy of F&N on 100 PLUS isotonic drink is
focused on maintaining the brand position in the isotonic drink market. From the
survey done, 100 PLUS dominates the isotonic drink market by holding up to 90%
of the market share. Thus, 100PLUS has a very strong branding among the
consumers in the isotonic drink market.
3.1 Mission
The mission of F&N Company is Become a world-class multinational enterprise
providing superior returns to our shareholders, excellent value for our customers
and a rewarding career for our employees.
Maintain the position of 100 PLUS as the top brand in the isotonic drink market.
The target market of 100 PLUS was initially focused on the active sports person.
Due to the cautions and awareness about healthy lifestyle, the demand of the
isotonic drink has increased. Thus, the isotonic drink market has expanded.
100PLUSs target market will be extended into this potential isotonic drink
market. The new target market will be expanded to travelers. Frequent traveling
will cause a significant loss of body fluid especially those travelling by air,
therefore this increase the demand for an isotonic drink to balance the body fluid
while travelling.
3.5 Positioning
100 PLUS is an isotonic drink that helps to hydrate the body of an active person.
F&N will continue to cement 100 PLUS position as Malaysias no 1 isotonic drink
and maintaining the brand positioning in consumers mind to choose 100PLUS
when the need to rehydrate pops-up. Its market position will be achieved by
engaging outreach programs and strong advertising and promotion.
3.6 Strategies:
The first strategy involves aggressive advertising through the use of billboards
and more creative displays at modern trade channels to attract consumers.
Marketing efforts through social media, endorsements and sponsorships, special
events, promotion and contests are directed towards strengthening brand
recognition and brand loyalty amongst consumers. F&N will first engage in an
aggressive advertising through a big poster on the billboards in areas where
there will be a lot of people pass by. This billboard will include creative design
and eye catches sight of the advertisement. On top of that, creating a website
and a Facebook fan page will be part of the advertising program as well. Contest
or sport related competition organized by F&N 100plus will also be implemented.
This competition will be for example 100plus street side 3 on 3 basketball match.
Other than that, F&N will also commit in sponsorship towards the sports related
event. Another event is by sponsoring 100PLUS drinks for the Ipoh Starwalk
2012. This will encourage consumers participation in fitness activities and at the
same time boost the consumption of 100plus.
addition to that, the sponsorship for hockey matches under the 100PLUS Tun
Abdul Razak Cup will fortify 100PLUS position as the preferred isotonic drink for
various sports in Malaysia.
The 100PLUS marketing mix will be based on the 4Ps which is Price, Product,
Place and Promotion.
3.7.2 Product - F&N 100PLUS has four flavored isotonic drinks such
as original, lemon lime, tangy tangerine and Activ.
More flavors will be introduced to extend the products
variety.
To generate more profit in the future, sales pattern of the product will be
monitored through database mining. Retailers can use this method to find when
does customer are most likely to respond to an offer or when sales are the
highest in a period. F&N will then get feedback from the retailers regarding the
sales of 100PLUS in the market.
4.0 Financials
This section will give us a brief overview about the financial summary which
addresses the break-even analysis, sales forecast and expense forecast.
However, we faced problems in determining the fixed cost and variable cost for
the brand 100PLUS as it is not stated clearly in the annual report. On top of that
the cost involved all of the soft drink category, dairy products and other
beverages manufactured by the company. Therefore, in this financial section, we
assume the cost used by the company as the cost involved in producing 100PLUS
to show how would the process of financial forecast would be implemented in the
marketing plan.
The sales are running at RM1589.10 million in the year 2011. It is estimated to
increase the sales by 10 percent to RM1748.01 million in year 2012 and follow by
in the year 2013 to RM1922.81 million. Based on the potential market outlined in
the Marketing Section of this plan, the increasing numbers of target markets will
cause the revenue of the product to increase.
The expense forecast, detailed in the next section, will be used as a tool for the
organization to keep the company on target for setting marketing goals. The
forecast will provide indicators when the company is not on target and
modifications are needed for the proper implementation of the marketing plan.
Table 4 below shows forecasted expenses for 100 PLUS.
Table 4 : Forecasted total sales & expenses for 100 PLUS isotonic
This marketing plan serves as a guide for the firm to perform the marketing
strategies to increase their sales and profit. A company might remain efficient in
the company structure itself but loses its effectiveness in term of the market.
Hence, the effectiveness of the marketing strategies has to be monitor and
measure so that any negative effect can be handled and solve immediately. In
order to monitor the performance of the marketing strategies, a few parameters
are suggested to monitor the performance of the strategies.
In this parameter, we will look into how the companys account would
improve from the new marketing plan. This is important as the final aim of a
marketing plan is to increase the sales and profit maximization. The success
of the marketing plan will ensure an increase in revenue. On top of that the
company does not wish to lose control in terms of costing as well. Therefore
monitoring the expense account is important as to prevent operation cost to
exceed revenues generated.
Monitoring the sales volume after the execution of the marketing plan is
an effective way to monitor and control the marketing strategies as well. An
effective marketing plan will definitely affect the sales volume which
increases the demand of our product. Monitoring the sales volume not only in
the short run but also the long run is important as well. This is because
marketing plan will not be effective and last forever. No matter how good is
the marketing plan, it will last for a period of time only. One of the reasons is
that consumer taste and influence changes over times.
Other than that, the company can also hire or outsource their sales
volume monitoring program to other third party company that provides such
service especially monitor through the marketing mix model (MMM). If the
company is at a good financial status, it is highly recommended as the MMM
model is an effective way to monitor the sales volume through regression
analysis. It is where they will look into the effectiveness of the marketing
strategies on how it had affected the sales volume. Through this method, it
will go further by looking into different group. The group of sales based on the
demand, customer loyalty and brand awareness. On the other hand, the other
group would be looking into the incremental of sales which is due to the effect
after implementing the marketing strategies and activities.
Other than that, monitoring the customer satisfaction towards the product is
very important as well. This is to determine the acceptance level of the
customer towards the product and their satisfaction level which will lead to
the company to take corrective measures if the customer is not satisfied with
the product.
One way this can be done is get connected with the customer through the
social media and social network. As the trend and growing number usage of
internet and social network, a company can easily get connected with their
customers. This can be done by setting up a fan page in the current most
famous social network namely facebook.com and Google Plus. Through this
web fan page, the current update of the product, promotions, and campaigns
can be promoted through the fan page which is free of charge. On top of that,
a discussion forum on the particular fan page can be created as well. The
forum can be done specifically towards the marketing activities being
conducted and let the customer discuss and talk about it in the forum. From
there, customer point of view of such activities or towards the marketing
strategy can be known.
Other than that, a feedback form can be done for the retailers to fill in so
that feedback from the retailers can be obtained as well. Feedback from
retailer inclusive of the indirect customer feedback as the retail will always be
the place where customers will complain if anything that happen.
5.1 Implementation
In this final part of the marketing plan, we included the contingency planning for
the companys overall marketing planning to be executed. This is where the
difficulties and risk that would face throughout the whole marketing process will
be handled. The challenges will halt or become an obstacle for us to move
forward with the marketing plan. On top of that we included the worst case risk
that might happen.
Firstly the difficulties that the marking plan face for 100PLUS would be the
visibility or the attractiveness of the Facebook fan page as well as the 100PLUS
website. Both the web base strategy may not receive good responds from the
customer. One of the reasons may be due to Facebook users using Facebook to
connect to their friends and viewing friends profile only. Other than that, the
100PLUS website may not be serving its purpose and the number of traffic of
people log into 100PLUS website may not be appealing.
Secondly is the billboard advertising has been saturated and being used
up by many big companies. For 100PLUSto compete and us billboard advertising,
it requires good negotiation skills with the billboard company and this involves a
higher cost. Third would be the most difficult where if the price of raw material
supply like aluminum and sugar goes up, it will burden the company expenses
and cost. As inflation is hitting the country, the price of food and commodities
hiked, the price of sugar will also not exempted from that. If the price of both
sugar and aluminum goes up dramatically, the company may need to cut down
expensed and cost which will affect the marketing plan.
The worst thing that might be happening towards the company is the food safety
issue. If the company product or 100PLUS are hit with food safety issues for
example detected E-coli diarrhea contributing factor in the drinks, it will cause
the company to lose its brand and brand loyalty. If such serious case food safety
issue and related to customer health effect or even causing death after
consuming the company product, it will destroy the whole brand itself. No matter
what marketing strategy we use will not able to attract customers towards our
product. Hence, the manufacturing process has to be extremely alert and aware
with food safety issues.