The sauce you need? Recommended changes to Musalmah Food Industries' product range and marketing strategies
Projektarbeit 2015 11 Seiten
Recommended changes for MIF to make their product range sustain their domestic market share.
The Malaysian sauce manufacturer Musalmah Food Industries (MFI) struggles with a decreasing market share on the Malaysian market. To enhance their domestic market share the company needs to bring their product range to the next level. The former target group, travellers to Non-Muslim countries, of 46,000 potential customers is getting too small to sustain market share in a high competitive market. The following recommendations are given to improve MIF´s product range.
The current product range of MFI consist, next to a university feeding program and catering, of 24 different products in four categories, all of them are ready-to-eat sauces (See figure 1). MFI´s competitors have a maximum amount of 9 products in their range. A reduction of their current product length and especially their product depth of curry products seems to be appropriate to avoid cannibalization. Eight out of 24 products are on a curry-base (Thai-Curry or Kuah Kari). The “Kuah Kari Rendang 180 G IS” appears even twice in their product line. Resources could be used in a much more effective way, as described later.
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Figure 1: Current structure of MIF´s product range
Another important change of the current products is the changing of the size of the packaging. The prices of MIF´s products are RM 3.20 for 180 gram and RM 5.79 for 300 gram. MIF´s biggest competitor “Sri Murni” offers his 120 gram products for RM 2.50. Taking only the price into account leads to the assumption that MIF products are more expensive. However, the price per gram for MIF products is lower. A reduction of the packaging size would make the price advantage distinctive. Furthermore, the price per gram for MIF´s 300 gram pouch (RM 0,019/gram) is higher than the price per gram for the 180 gram pouch (RM 0,017/gram). A common assumption is, that bigger packaging will lead to a lower price per gram. This aspect could deter families, with a higher demand of food.
The lifestyle of the Malaysian population changed since MFI was incorporated in 1984. About 55% of the Malaysian population can be considered as “young” and 70% is living in urban areas. More than 61% of the citizens belong to the middleclass group, tendency rising. This leads to the conclusion that MFI has to extend its product width according to the changing lifestyle of their target groups.
An extension regarding younger people justifies the development of a lifestyleproduct. An individual selection of ingredients like chicken, beef, rice or noodles could be added to the existing sauces. This would make eating much more convenient on the one hand and fancy on the other hand. To increase the acceptance of this full-meal-products the packaging should be microwave-proof. MIF´s competitor “Madam SAL” already launched microwave pouches. As a former leader regarding innovative packaging, MIF should develop this packaging to sustain market share in this section.
The benefit of this lifestyle product is that the “cooking-process” would get easier and faster, which attracts young people. To add even more value MIF could launch “MyMusalmah”-products. The individual selection of ingredients would be packed in a personalized packaging (Further details regarding MyMusalmah products are given in the second part).
The biggest target group of MFI is the middle-class-group. Induced by a higher income a different product line can be implemented. The middle class is committed to its career in return they have less time to prepare their food. Furthermore, consumers tend to choose high quality food (German-Malaysian Chamber of Industry and Commerce, 2011) as their disposable income increases (Dardak, 2013). MIF should develop a product that considers these aspects. The solution is the launch of a healthy & halal high quality dish that needs less time expenditure for the prepara tion but fulfils all requirements to a holistic meal (Further information to the implementation in part 2).
MIF could add value to this product with recipes inside an improved packaging. The next step of extra value could be a packaging that includes all ingredients for a meal, which only need to be heated. Consumers still have the feeling of cooking but spend very little time on it. Another step of adding value to the high quality product is a certification of independent goods quality test institute. The qual-ity of MIF´s products could be labelled on the packaging and become more distinctive to the consumer.
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To uphold market share the competitiveness of MFI regarding their purchasing costs has to be measured. The increasing import-costs and furthermore the insufficient supply of good quality of raw materials (Dardak, 2013) lead to the conclusion that the purchase of domestic raw materials has to be examined.