Market audit and competitive analysis

Market audit and competitive analysis play a vital role in to any business. When consider about the market in Malaysia; they are mainly import electrical and electronic products from America,Singapore,Europe,china and Japan and also they import some products as machinery,iron,steel and also chemical. It shows that they are well developed country and also very dynamic. Because above countries are famous for the quality branded products. Since this is a very energetic country, lifestyle changes could lead to boost the demand for the readymade foods and health foods and always they are rich with tropical and agricultural possessions. Diverse cultures in Malaysian society would be another reason. There are 94 different types of cultures. Mainly there is Malay, Chinese, and Indian has intriguing range of processed food with an Asian bend. Since today people improve their awareness towards the nutrition foods in view of the fact that healthcare processed by cereals, fresh foods and other sea foods Malaysian also do the same. According to the details provided by Ministry of International Trade and Industry Malaysia, Manufacture of snacks getting decreased by 7.5% and rice milling increased by 7.7% and Manufacture of condensed, powdered, evaporated milk increased by 11.9%.that shows that how people connected with easy foods.(Appendix _1) But according to the sales of selected processed food and beverage products table published by Ministry of International Trade and Industry Malaysia, shows purchasing frequent of snacks improved by 38.6% and it shows that how they are prefer fast foods. (Appendix_2) According to the appendix_1 appendix_2 tables show production has gone down and purchasing has got increased, there is a gap which has occurred due to this reason. Accordingly there is a greater chance to set up our product line; Munchees Nutriplus in Malaysian market. Because the demand for snacks in Malaysia has increased while the supply decreasing. So that would be an opportunity for us. Our product could able to fill the gap in the market. Through this market audit we will illustrate the food market of Malaysia. The geographical location how the free market economy effect to the food products in Malaysia. http://sundaytimes.lk/090927/FinancialTimes/ft15.html http://www.muncheelk.com/home.php http://sundaytimes.lk/090927/FinancialTimes/ft15.html http://www.muncheelk.com/home.php Describe the market (s) in which the product is to be sold According to our research we have found that Malaysia also engaged in international trade. Because of this free trade concept Malaysia also globalized; there are many number of competitive products which are come from all over the world. Since our main target market is highly busy working crowd we better prepare to export our product to urban areas such as Kuala Lumpur, Putrajaya, and Penang Selangor. (City population; n.d.) 1. GEOGRAPHICAL REGION (S) Geographical characteristics would be another concern by the marketer since it helps to evaluate countrys market potential. Malaysia is a one biggest country in the world an area of 329758 sq km. Land size is 328,558 sq km.and water 1200 sq km.malaysia is a country which is located in south eastern asia in between 2Â °-7Â ° degrees and in the north part of the equator, peninsula is a separate part and Sabah, Sarawak states are situated on the Boneo Island. Thailand is northern neighbor while southern neighbor is Singapore. Its area geographically 230Â ° N and 11230Â ° E. the capital city of Malaysia is Kuala Lumpur.It is a multi ethnic country and population is over 22 million. http://www.123independenceday.com/malaysia/geography.html CLIMATE: malaysia is a country which is verymuch close to the equator,because of that all over the year it has Tropical weather with warm climate. Temperature of the malaysia is in between 21 Â °C 32Â °C.it is an average temperature of 27Â ° C. Rainfall vary from 2000mm to 2500mm in annually with thunder and lightning.all the time there are cloudy climate in most of the cities. http://www.123independenceday.com/malaysia/geography.html CULTURE: In malaysia there is a very friendly,warm and hospitable culture of its people.it has a combined population of over 22 million ;they are Malay 59%,other indigenous 32% chinese Indian 9%.because of this cultural multiplicity many external parties interact towards the Malaysia.malaysia is located in between the middle of the indian ocean and south china.therfore it has been considered as a meeting point for traders and travellers and at the same time as multicultural and multinational country.that would be the reson for the main evolution of the socio cultural activities,traditions,dressings,languages and foods. Since our product is vege product,we dont much consider about it.That would be a greater opportunity for our product since Muslims prefer Halal foods and malaysian prefer fast foods. LANGUAGES: When consider about the languages Malay is the official language and more than 59% used to talk by Malay. Since English is an international language Malaysian people widely spoken English in business arena and English subject is compulsory in all schools too. And there are many languages such as Chinese, Tamil, mandarin, Cantonese, Hakka, and several tribal lingoes. So in the product packaging we should use both Malay and English languages when we put instructions. Because Malay is the official language and English is an international and widely spoken language in Malaysia. RELIGION: Once reflect on religion; all primary Malays are Muslims. So Islam is considered as the official religious conviction but anybody can accomplish any other religion generously. And also there are religions like Buddism, Hindu, Christianity, Confucianism, Taoism and tribal religions. When launch the new product to the market religion affects a lot more, especially for the Muslims they are using Halal foods. But since this product contents cereals it wont be an issue. MAJOR HOLIDAYS: Knowing major holidays is another important subject when company goes to launch a product to the new country.because those holidays could be effect to the business since if we unable to manage them;according to the market audit followings are the major holidays in malaysia. New Years Day January 1 National Holiday Chinese New Year January 24 25 -National Holiday Federal Territory Day February 1 KL Labuan only Labour Day May 1 National holidays Wesak Day -May National holidays Kings Birthday June 2 National Day August 31 National holidays Deepavali November 14 Except Sarawak Labuan Hari Raya Aidil Fitri December 16 17 National holidays Christmas -December 25 National holidays It is very much vital for us to knowing about these holidays;because when we aware about the holidays we can have power over the issues which could be happened.especially since this is a food product we have to much more aware about this since it could be expire.and also another chance which could occur on behalf of is;we can offer special promotions such as budget packets,gifts and many more for the special occasions such as New year,chinese new year,deepavali and christmas. ENTRY REQUIREMENTS: regulatory inventory CURRENCY: Malaysian currency is known as Ringgit and it indicated as RM BANKINGHOURS: Most states: Mon-Fri: 9.30am-4.00pm Sat: 9.30am-11.30am Sun: closed Kedah, Kelantan Terengganu: Sat-Wed: 9.30am-4.00pm Thur: 9.30am 11.30am Fri: closed. POST OFFICES: Open from 8.00am to 5.00pm daily except Sundays and public holidays. In Kedah, Kelantan and Terengganu post offices are closed on Fridays and public holidays. TIME : Eight hours ahead of GMT and 16 hours ahead of U.S. Pacific Standard Time. ELECTRICITY: Voltage is 220 240 volts A C at 50 cycles per second. WEIGHTS AND MEASURES: Malaysia follows the metric system in weights and measures. TELEPHONES: Local calls can be made from public phones using coins or pre-paid cards. International calls can be made from public phones with card phone facilities or at any Telekom offices. http://www.123independenceday.com/malaysia/geography.html LAND TOPOGRAPHY: (shan) Malaysia is a country of spectacular beauty to show off with staggering sights of hills, lush greens forests, and rhythmic rivers. The peninsula is divided into Eastern and western parts by the Banjaran Titiwangsa or the Main Range goes through Malaysia-Thai border in the north to the southern state of Negeri Sembilan. Tallest mountain in state of Pahang is Gunung Tahan which has a height of 2,187m. There are many other mountains in Malaysia, such as Mount Gunung Jerai in Kedah, Bukit Larut in Perak and the fabled Gunung Ledang (Mount Ophir) which is located in the Melaka-Johor border. Crocker Range is considered as one of main highlands of Sabah which has a height of 457- 914m and it holds three top highest mountains of Malaysia, namely; Mount Kinabalu (4,101m), Gunung Trus Madi (2,597m) and Gunung Tambuyukon (2,579m). Sarawaks tallest mountains are Gunung Murud (2,425m) and Gunung Mulu (2,371m) and it also encompasses the worlds largest natural cave system. In addition, Sungai Rejang (563km) finds its way through Sarawak and it is the longest river. The river can be used to transportation up to Kapit, 100km upstream with small coastal steamers. Malaysia proudly placed as one of the prominent countries to have forest-covered hills in the Asia Pacific region. Malaysian geography presents a terrain which is highly enriched with resources and biological diversity. http://www.123independenceday.com/malaysia/geography.html DOS DONTS: When we select Malaysia for our market development program we should scrutinize local customs and practices. Especially we should be concerned about the common courtesies and customs to be close to them and make them feel that this is our product and matching with our cultural practices. Because culture is helps to peoples heart touching. Thats the most viable manner which helps to lucrative of the business.malaysia has a low-contest culture; so they are much more consider about the personal associations beyond the business.malaysians are highly diversified from religion as well as ethnically.malaysians are more lean to wear professionally and yellow color is considered as a royal color. Bribery is consider as a critical crime by foreign public officials. http://www.2malaysia.com/info.htm NATURAL HAZARDS: The Most of the times Malaysians are faced by the many natural disasters such as floods, landslides, earthquakes, typhoons and forest fires. So since we decided to launch our product to Malaysia we should aware about this kind of natural calamities which could happen since it effects to the business and also for the distribution channels, packaging, exporting and all those kind of steps. http://www.123independenceday.com/malaysia/geography.html 2. Forms of transportation and communication available in that region TRANSPORTATION: RANSPORTATION As a well developed country Malaysia is provided by an admirable transport system. There is transport accessible even remote areas .Kuala Lumpur, its capital is considered as the main transportation hub. It is powerfully established for buses, taxis, trains, electronic trains, which served as public transportation. And also there are many ferry and boat services all around the country. Our product deliveries to the respective local markets can be transported through the boat services. Malaysia has its own career; Malaysian airlines. Every flights arrive and depart at Kuala Lumpur international airport located at Sepang also there are flights connecting with most major cities and also to Sabah Sarawak. There are old international airport in Subang namely the Sultan Abdul Aziz Shah airport now it caters just for the domestic air services. Other major international airports are Penang, Kuching, Kota Kinabalu and Langkawi. Buses are economical way to travel in Malaysia. There are air-conditioned buses as well as non air conditioned buses. So when we distribute our product to the rural areas we can get support from this interstate bus service. Malaysian railways attach with all main cities in the peninsular There are many numbers of ports of entry in to Malaysia. Ports are located in Penang, Port Klang, Kuantan, and Kuching Koto Kinebalu.Since there are many number of ports available we suppose to export our products through shipping lines. Since it is the easiest way to And also there are sea Cruises available from Ports in between Selanger Kuantan and Sabah Sarawak. When delivering our products to Malaysia; there are two possible modes of transportation that can be utilized. Air transportation is fast but expensive. Maritime transportation is relatively slow however cost effective. For normal product deliveries maritime transportation is the best transportation solution existing the market. However air transportation can be an efficient means of getting product deliveries to manage emergency stock-outs and unexpected demand teaks. http://www.2malaysia.com/transport.htm COMMUNICATION SYSTEMS: Malaysian communication is enhanced with advanced technology.therefore we can have this opportunity to make the consumer of our product by using this advantage in malaysian market. 3. Consumer buying habits http://www.pwc.com/en_GX/gx/retail-consumer/pdf/malaysia.pdf Product use patterns In our inspection towards the Munchees Nutri-plus product line in the Malaysian market; we are find some information about that how the product like Snack use in Malaysian market? What are the potential markets for our product? And also what are the product use patterns in this specific country? As we got to know because of this busy life style Malaysian people have increased the consumption of fast foods. Especially they prefer nutria-snacks since they are highly concerned about their health. It is a golden opportunity for us to been their because their demand is increasing for this kind of products. According to the surveys it found that Malaysian people have spent more on fresh foods and fruits. So again it is a greater chance for us since we have many different favors with our product. Since those people are highly busy with their work they can immediately consumed our product as refreshment or as a breakfast and also with milk or without milk. The Malaysian consumer eating pattern consist more fat and cholesterol since they prefer to eat rice and meat. Our products are nutritional and healthy with low elements of cholesterol and fats therefore a successful penetration in to the middle income market segmentation will enable us to export our market potential. Further Malaysian consumers are shifting to buy organic and healthy product.Therefor e our product which contain the said elements will have a considerable period of product life cycle. 2005/2006 from Beijing to Budapest winning brands Product feature preferences Product feature preferences may vary from market to market. Since this is a small packet it would be preferred by everyone; since it wont be a price matter a lot. In 2007 onwards it was a major trend in Malaysia to focus on the health conscious products. So when they purchasing a product they mainly concern about the quality and the healthier products. So it is another identified opportunity for our product; munchee nutri-plus product line. It is manufactured by using cereals such as soya beens, rice and etc which helps to increase the nutritious. And also Malaysian people have a great desire for new flavours. Again it could be an opportunity. Since our munchee nutri-plus have different flavours. Because of this innovative people in Malaysian food market; our snack would be able to match with Malaysians products preferences. It has a unique milky taste as well as it looks delitious.because of this taste not only the working crowd but also children would prefer this product. Not only that Malaysian consumer becoming more knowledgeable. When they are purchasing a product they mainly price conscious and brand and quality sensitive. Because of this we would be able to market our quality product at a competitive price. They are not easily influenced by the advertisements. And also they consider about the service they receive before the purchasing as well as after sales. According to the findings it does not consists any social or investment risk since this is a nutritional food. As ACNielsen said, 90% of consumers take purchase decisions by considering strong brands name and also 75% retain with the same brands because of the customers loyalty. 2005/2006 from Beijing to Budapest winning brands Shopping habits An understanding of the shopping habits of Malaysians is important to determine the market viability for our products. The economic growth of the country has vastly increased the purchased power of the Malaysian customers. The standard of living and per capita income of Malaysians are high our targeted customer will mainly do their shopping in retail stores, super markets and shopping malls though still village side people purchase from traditional groceries and mini-marts .because of the globalization Malaysians are becoming more complicated. This could be occurring because of the education levels and changing lifestyles of the Malaysian consumers. Because of this multi ethnicity Malaysians have demand towards the foreign products as well. Though this is an Asian country rather than other Asian countries Malaysian males as well as females both of them are do the buying. Since consumers always waiting at the queue near the cashier to paying bills it is common manner to tackle the customers by keeping those products near to the cashier. 4. Distribution of the product We intended to undertake a distribution in a limited area since our products are in the initial stages of the product life cycle. Our market research activities have revealed that most Malaysians prefer to buy their requirements in super markets. Because they want to save time which will spend here and there by having wide range of goods is available under one roof. We decided to distribute our product to retail outlets through middlemen in Malaysia. Because they know about country, customs, values, and other regulatory which need when doing a business? And also he would be able to make close relationships with the country people as well. Typical Retail Outlets Therefore our main distribution channel will be through the major super markets,speciality stores and drug stores in the cities of Malaysia; specially in Kuala lumpur,Putrajaya,Penang,Selangor other main cities because Malaysian people used to purchase this kind of products from these places. Sales of these Munchee Nutri-plus cereal snack bars at super markets will help us to maintain competitive stance and also it will help us to stop share losses as well. In super markets for sales people there are sales target; when they achieve those sales targets they will receive some fridge benefits. So that would be a opportunity for our product when we do our sales through super markets. Because those sale s targets will drives increased our product sales as well. We have chosen drug stores to sell this product is because they can recommend our product to the consumers as a healthy and wellness product and again it will help to increase the sales. Product sales by other middlemen We can utilise a distribution channel as a middleman before we settle down in the Malaysian food market. Middleman is a very strongest character when it comes to here, because they can make very strong relationships with their retailers as well as they are know everything about the country as well as the business arena and also social and business etiquettes as well. And also our company would able to keep knowing everything about the market, competitor brands, specialities of them and also such kind of things through the middleman. 5. Advertising promotion Our target market consists of mainly middle income earners, children and adults. Advertising media usually used to reach your target markets we have selected TVs and news papers as best form of advertising RIM and TV1 which telecast their programs in Malay language and TV2 which telecast in Malay, Chinese, English and Tamil.TV advertising is more convenience since our products can be displayed and the product awareness will be increased and could be reached on large number of potential customers at low cost. News paper advertisements will also be undertaken in Malay, English and Tamil languages. Our sales promotion activities will include .exhibitions shopping centre of sports events. We suppose to advertise our product through accurate and honest promotions; as a energy boost snacks for targeting sportive kids who wants to grown up fast, and also wish to stress on the taste appeal which would match with both kids and adults. And also we wish to motivate the people who are interesting with healthy eating and to the people who are overweight. And also we decided to set some bill boards in Kuala Lumpur; capital since their accessibility is high. Sales promotions customarily used (sampling, coupons etc) There is considerable competition for our products in malasia.Therefore we have to use both the pull and push promotional strategies to stabilize the market. Pull strategy is implemented to attract customers towards purchasing our products through advertising companies. Push strategy is carried out to encourage the retailers to buy and distribute our products to the ultimate customers. This is done through offering trade discounts to the retails. Internet marketing would be another major opportunity since their technology is high and people are educated. 6. Pricing strategy The prices of our products should be reasonable and affordable for the Malaysian consumers to buy. The present consumers are highly price concerned. They expect value from the product for the price they pay. The prime motive of our pricing strategies is to achieve the following. To attract the target market at the correct time. This will increase the stock turnover rate and the profitability in our Malaysian market expansion. To have justifiable return on capital employed to continue our business activities in Malaysia. Our products are new to the Malaysian food market. Therefore we will implement a penetrating pricing strategy at the initial stages. Once the market is stabilized we will introduce premium pricing. This is important to position our products amongst the Malaysian customers as quality products. Customary mark-ups We should consider the import control regulations in Malaysia before a final mark up for our products. The Malaysian international market is liberalized tax system on food products. We will take these into consideration before fixing a final markup for our products in Malaysia. Types of discounts available Malaysian retails sell food items from many producers. So we will offer bulk purchasing discounts to retailers who buy our products in large quantities to attract them. At a rate of 2% .In addition we will offer at 2% cash discounts for the retailers who settle their dues to us within 14 days. Compare and contrast Nutri snacks from Ceylon biscuits manufactures LTD and the competitor products. B.Compare contrast munchees nutriplus product with the competitors products Competitors products A. Brand name There are many competitors for our products in Malaysia but the main competitor is the nestle PlC.This is a large multinational farm which sustain competition in U.S.A and other European and Asian food Market. b.features The nestle nutri product provide nutrition and flavors tastes to the consumers. They have already established brand loyalty in Malaysia especially amongst the school going children and the youth. Therefore we should take steps to penetrate into the competitive Malaysian food market .Further the cost of production for Nestle will be low due to economies of scale. Therefore we will be highly concerned and minimize our cost of production in order to have competitive pricing for our products in Malaysia. c.package We should clearly differentiate our products from those of the competitors in the Malaysian market. It should be easy for the customers to identify our products. We will use alternative colors in our packaging, especial Red since most Malaysian consider red as a symbol of strength. The names of Ceylon biscuits manufacture will be printed in bold letters in pink and blue. The word Halal will be pointed in large bold letters our packages will include the brand name on Malay basher, English, Chinese and Tamil.