The Strategy Used By Munchys Make The Company Marketing Essay

The Strategy Used By Munchys Make The social club trade Essaystrategic counseling is the ferment which refers to dodging formulating, implementing, and evaluating cross useful finalitys to enable an boldness to arrive at its objectives. A outline is round(predicate) long-term planning and it essential be implemented and the organization resources as well(p) as its capabilities properly harnessed so as to achieve the think outcome. Strategic forethought focuses on integrating charge, food food marketing, finance or accounting, merchandise or operation, research and suppuration, and computer information system to achieve organization success.2.0 Munchys BackgroundMunchys is known as Malaysias No.1 homegrown biscuit sword which is a remarkable Malaysian success story of five brothers from Muar, Johor. as well that, Munchy was a go with which gains Super leaf blades Status of year 2003, 2004, 2005, 2008, and 2009. Actu exclusivelyy the name Munchys was derived f rom the mandarin o deviate term Mai Qi which Mai is the meaning of flour or wheat and Qi is refers to the magical feel found in the delicious wafers that be do from altogether the finest ingredients.In the beginning, this assembly line is started by dickens elder brothers from common topaz family who asked their father to tout ensembleow them to start their own ph mavinr. With his agreement, their business started out as a cottage operation in Johor back in 1991 with producing wafers, wafer banks and biscuits with an Austrian- do second-hand wafer stick machine equaling RM80, 000. With their noble smacks they try their best to suffer the luxuriouslyest tone wafer sticks around and they make it as Malaysias No.1 homegrown biscuit shuffle. From an master aboriginal Equipment Manu incidenturer to a household name, the Munchys marker was born in 1993. In year 2006, Munchy was recorded in Malaysia Book of Records as Largest Wafer Manufacturer in 2005.During 1997 till 1998, Munchy al near went bankrupt during the Asian financial crisis exclusively fortuitously the company was survived from the Asian financial crisis and its revenue jumped from RM20mil in 1998 to RM50mil in 1999. match to a Nielsen Retail Index Corporate Value Sh be publish in 2008, Munchys was ranked Malaysias No.1 homegrown biscuit brand excluding Sabah and Sa lancinatingak from June 2006 to 2008. Besides that, Munchys is play along looking forward at sore electromotive force puddles and intros as it plant life towards guarding up its stand in Malaysia as the countrys nigh sophisticated and success biscuit brand. They micturate an entire RD de comparabilitytment that particular all in ally focuses on this aspect, so as to always stay at the straits of innovation.Munchys major(ip) markets are in Asia, such as Inthroughsia, Thailand, Singapore, Taiwan and Japan cosmos its key markets, their vision is to be significant in 100 countries by 2020. On the other hand , Munchys committee is to bring joy and add shade to every occasion with their high smell, affordable and fun-eating collations. The companys CEO, C.K Tan always desired in the power of branding and automation and technology will gain benefits in a business. He fagged RM500, 000 on IT systems for Munchys in 1997 and now a day he fluent investing on it because he believe that computerization will makes the harvest-homeiveness of company to a strikinger extent efficient.3.0 PEST in Strategic AnalysisThe PEST digest is an epitome which concerned with the environmental influences on a business. It is a business measurement tool for spirit market growth or decline, and as such the position, po gotial and command for a business. PEST analysis is in any case an acronym stand for governmental, Economic, Social and proficient issues that could affect the strategic discipline of a business to assess the market.3.0.1 PoliticalMunchys hit always recognized the important of m anufacturing only proper harvest-tide since the government of Malaysia foc exploitation on turning the nation into an external Halal Hub. That is a reason why Munchys agree a dedicated delegation that deals with all things Halal. The Committee is make up of representatives from each key variance that contributes to the making of the harvestings. Munchys is circumstancesting its sights on a greater share of the regional pie while the tariff and trade barriers are trimmed with the formation of the ASEAN drop Trade Area (AFTA). In fact of this, Munchy throw away been opened a stark naked branch offices in ASEAN neighbors.3.0.2 EconomicNowadays, Munchys gross revenue in ASEAN have seen a clear uptrend because of the proactive approach of Munchys d one(a) in sales and distribution, For instance, Mr. Tan reveals that sales in Singapore have grown by more(prenominal) than 50% since 2003, making the island Munchys third largest export market. Besides that, The Company has exper ienced double-digit growth not only within Malaysia but besides in Japan, Singapore and other Asian countries. Still, Munchys export growth has been broad-based and their exports have been grown by sloshed to 60% within this year. The local market is also growing, as Malaysias population expands.3.0.3 SocialNowadays, health as a prime concern is now increasingly by many consumers, accordingly, Munchys have been reformulating their range to feature less sugar, less salt, refuse fat and high nutrient content. Munchys believes that it must be a balance achieved between pricey enough apprehension and health. The CEO of the company Mr. Tan frequently utilize Team hold out as the key word to describe how the company has evolved and transformed. In order to work for teamwork, the staff from all levels must believe and have confidence with the brand of the company and be able to deliver the brand promise effectively to consumers. Munchys has various CSR (corporate social responsibi lity) programmes in place which mainly aid to orphanages and hospices for children. Munchy sustenance also aims to produce more fictitious character intersection points on par with planetary brands but reflecting a typical Malaysian identity by carrying the spirit of Malaysia Boleh.3.0.4 TechnologyMunchys tried to keeping up its standing in Malaysia as the countrys most groundbreaking and success biscuit brand, in fact Munchys keep looking forward at new strength wares and innovations as it kit and caboodle towards. They have an entire RD department that specifically focuses on new potential products and innovations to ensure the company always stay at the forefront of innovation. They believes that with the technologies and know-how todays, they could in all probability walk triple steps ahead compared to the old days when they could only do things step by step. Actually, Mr. Tan has been started its regional expansion plans where Munchys has sales and marketing teams in Singapore and Indonesia, while establishing teams in a bite of other Asian countries. Munchys always believed in the power of branding and automation and technology will gain benefits in a business. He spent RM500, 000 on IT systems for Munchys in 1997 and now a day he still investing on it because he believe that computerization will makes the productivity of company more efficient.3.1 SWOT analysisSWOT analysis is a basic, straightforward model that provides direction and serves as a basis for the development of marketing plans. It is an acronym used to describe the particular Strengths, Weaknesses, Opportunities, and Threats that are strategic factors for a specific company. It is the first stage of planning and military services marketers to focus on key issues. SWOT analysis is a tool for auditing an organization and its environment. Strengths and weaknesses are inner(a) factors. Opportunities and threats are external factors.3.1.1 StrengthMunchys always emphasizes the delic ious wafers that are do from only the finest ingredients. They believe that the only way to produce the highest quality wafer sticks is using the finest ingredients. Besides owning state-of-the-art machines, have a good and committed management team with a strong multinational background assist Munchys enthronement in talent and that is a factor that sets Munchys apart from the rest of the competition. other area of strength is their focus on brand-building, Mr. Tan engaged an international branding consultant to establish Munchys as a distinct brand in 2004. Although Mr. Tan believes in continuous product development and he knows that everything starts from the product so he put a lot of innovative ideas into designing the products from the packaging to brand image, the sharp and weight of the products, basically from all aspects. Until now, Munchys company still keeps idea on how to make the existing products remedy in innovative.3.1.2 WeaknessesAlthough Munchys company alwa ys thinking about how to make their product father more innovative, but what they done is entirely put endeavor on the wrapping of their product but not in the smack and the varieties of the product. Munchys should put effort on the variety of their product. For example like approach Company, their toil such as Milo drinks, ice cream, Chocolate and so on. The varieties of their products on the market strengthen the value of their product in the market.3.1.3 OpportunitiesIn laying the groundwork for their Asian expansion, Tan started to transform the company three years ago. This included bringing in an impressive senior management team with a strong MNC (Multinational Corporation) background. The idea is to vitrineually allow Malaysia to harmonise without him as CEO so that he can focus on its regional plans. With the need to bring in new skill sets, Munchys structure a supervising board which is filled by around of the brothers and also some very experienced former chief executives to back up pack the company forward. To produce best products, Munchys claims that it is the market leader in the wafer syndicate and the top three in the biscuits market share ranking. Invests substantially in RD, adding that research is an important aspect of branding and it is imperative to work nigh with consumers to understand their wants and needs.3.1.4 ThreatsMunchys intention to re-brand or remodel Munchys into an international brand which aimed at establishing home-grown Munchys as a global brand in line with its new business directives of aggressively expanding into foreign markets. Besides that they also plan to gain their export sales by 25% to RM50mil in year 2010 and the company is heading towards a new business direction for further market expansion. Munchy Food maintains its competitiveness through endless upgrading of its operations, marketing, sales and distribution, research and development, and most importantly, capital-intensive investments. Mos t of these heavy investments derive from world-class machinery and automation, computerization, and ERP engagement for its management.3.2 Benchmarking analysisBenchmarking analysis is an analysis contributes lessons are learned. This analysis is a process of continual advance which helps a company who is still growing to identify their trouble musca volitans and provides a systematic approach to improving outturn efficiency and profitability. approach is the worlds largest food and beverage company which leading in Nutrition, Health and health and they employs over a quarter of a million workers. Compare with Munchys, approach strategy is based on a broad range which the company overcome cultural barriers and customer resentments to foreign brands by purchases local brand names which the consumer is accustomed to. After these niches of basic food supply are filled near moves on into the more upscale segments such as chocolate, soft drinks and the like. Their strategy is to est ablish a basis and then expand into more niches as demand rises. Connected to the acclivity demand is the rising income level as the population can afford to spend more money on food products. As mentioned in the book, Nestle provides about 8500 brand names, but only 750 of them are registered in more than one country and only 80 are registered in more than ten countries.Many household names such as Nescafe, KitKat and Nesquik were Nestle produces and some other brands are also well known by consumers just they might not have realized that they were Nestle products. In 2002 Nestle had a sales turnover of over 38.3 billion on which it made a net profit of over 3.2 billion. The majority of this profit was re-invested in the business whilst the remainder was paid out to shareholders in dividends. Munchys put more effort in RD on their wrapping and brand-building. They have spending close to RM4 million on branding and ads every year and this budget is increasing. Besides that, the com pany also invested RM10 million to buy packaging machines from Japan. Munchys always thinking about how to make their product become more innovative, but what they done is just put effort on the wrapping of their product but not in the flavor and the varieties of the product. Munchys should have a broad range to improve their deed in production efficiency and profitability.4.0 Strategy homeworkStrategy formulation is the second phase in the strategic management process which produces a clear set of recommendations and living justification that revises as necessary the kick and objectives of the organization, and supplies the strategies for accomplishing them. Strategy formulation is the process of planning strategies such as corporate strategies and business strategies. Sometimes it is useful to think of corporate-level strategies as where to deal and the business-level strategies as how to compete in those areas.Strategy formulation includes the planning and decision making tha t lead to the establishment of the firms goal and the development of a specific strategic plan by assessing the external environment and internal line of work and integrate the result into goals and strategy.4.1 Corporate StrategicA corporate strategy depicts the corporate cultures perception of progress and growth. Besides that, this strategy is comprises a guiding strategy through a corporate vision and a mission statement. One of the most important enjoyments of this strategy is to define a companys soil of performance through selection of business areas in which the companys domain of activity through selection of business areas in which the company will compete.Portfolio analysis is an analysis which combines internal and external factors and could be dealt with in the discussion of strategy in a company. Besides that, portfolio analysis is an enterprise strategy development tool based primarily on the market share of business and the growth of market in which company busin ess exists. Munchys boasts a great range of portfolio that includes biscuits, wafers and wafer sticks. In order to achieve the best product quality, Munchys has invested in fully- incorporate conveyer system to state-of-the-art warehouses for its commitment to have facilities of the highest quality. This includes two wafer plants with the aptitude to manufacture up to 740 tonnes per month, four biscuit plants which can produce up to 3,400 tonnes per month, and four wafer-stick machines with 16 production lines that have the condenser to produce up to 250 tonnes per month. These manufacture enable Munchys maximize their production and now reach the capacity of 5,000 tonnes upwards per month.Few years ago, Munchys have the launch their new product, new Munchys Mini crackers and it affect the company in expecting export sales from RM90mil to RM100mil and a total revenue of over RM300mil, against RM250mil. In fact of this, Munchys had invested about RM75mil in new equipment in two yea rs before ingress this product and it resulted in the production of the new Munchys Mini crackers.4.2 Business StrategicBusiness-level strategy formulation pertains to domain direction and navigation, or how business should compete in the areas they have selected.Low- make up provider strategy is using by a company which securing a competitive advantage by avail a lower price than rival competitors. This is a strategy is an integrated of actions taken to produce goods or services with features that are agreeable by customers at the lowest cost compare to the competitors which just with features that are acceptable to customers. This strategy maintain present price, be content with present market share, and use lower-cost edge to earn a higher profit gross profit on each unit sold, thereby increasing total profits. Munchys mission is to bring joy and add flavor to every occasion with their high quality, affordable fun-eating sharpnesss. Munchys make an achievement in low overal l cost which by manufacturing nutritional biscuits in well-off packets as well as coated and cube wafers at lower prices than rivals. The products that Munchys produce are shortly include approximately of the consumers across all segments like kids, teenagers, and adults. So that Munchys product is offering the buyers consider essential with their various types of product.Differentiation Strategy is an reach which set an acceptable cost that let customers perceives the different on the produce goods or services. The objective of this strategy is to affect buyers to pick out Munchys product or service over brand of rivals. On the other way, it means that a company has to take an initiative action such as seminal idea on what is important to customer. With the constant line-up of new products and product innovation constantly introduced to the market, Munchys has become synonymous with innovation. Most new-fangledly Munchys was launched in solvent to the current trend and desir e for healthy snacks. This kind of healthy snack filled with healthy and scrumptious fruit, oats, and more, the Oat Krunch makes a delectable, healthy biscuit that one will reach out for anytime of the day. In the second quarter of 2009, Munchys launched the overwhelming master copy Munch which aimed their targeted at teenagers and kids. This product is enriched with Energy Plus that contains Vitamins B1, B2, B3, B6 and B12. This makes Captain Munch a source of vitamin and nutrition, as well as the accurate nutritious health snack solution for smart and active kids and teens. These recent additions products, Oat Krunch and Captain Munch have been reinforce Munchys commitment to providing more great-tasting snacks that help consumers strike a healthy balance in their insouciant lives. With their product which differentiating in features cause their rivals not easily to copy or matched. So, it may cause the buyers to prefer Munchys product or service over brand than rivals.Best-c ost provider strategy is a combination of a strategic which furiousness on low-cost strategy and differentiation strategy. In this strategy, company must make an upscale product at a lower cost to prove the customer that its benefit for the value. It works on deliver same features at a lower price than rivals or matches rivals on prices and provides better features. Munchys brand mission is to produce all kinds of fun-eating snacks for every home all over the world. Presently, its strength lies in its high quality and diverse product range which Coupled with marketing strategies like manufacturing nutritional biscuits in convenient packets as well as coated and cube wafers at lower prices than competitors. Munchys Food also aims to produce more quality products on par with international brands but reflecting a typical Malaysian identity. Besides interchange products at lower prices, Munchys always ensure that its products always in good quality, Munchys prize Assurance and Quali ty Control Department ensures that all production procedures that are in place are constantly adhered to. According to the international standards set by the many regulatory boards from which Munchys has received official certification. With their good-to-excellent performance at a lower cost than rivals, they may affect consumers who are sensitive to price and value.5.0 Strategy implementationStrategy implementation is the most important and most difficult part of the strategic management process which requires the organizations employees and managers at all levels to turn strategies into action. Actually, strategy formulation is described what a company going to do but strategy implementation is doing it. A in(predicate) strategy implementation requires support, discipline, motivation, and hard work from all managers and employees. In the aspect of management issues, Munchys has its own policies to operate on Munchys daily operation. Munchys prefer to focus on company and product development which boast a great range on produce its products with world class quality and build a long term brand. To produce the high quality product, Munchys has invested in full-integrated conveyer system to state-of-the-art warehouse which have two wafer plants, four biscuit plants and four wafer-stick machines with 16 production lines. With these systems, Munchys can have maximum production capacity of 5000 tonnes upwards per month.To keeping up its standing in Malaysia most innovative biscuit brand, Munchys always looking at potential new products and innovations. Although Munchys has already a strong presence in Malaysia, it still continues to raise the bar by constantly strengthening their product aggregation and market network in Asia and around the world. Besides that, Munchys believes in strong and effective in brand building, and achieves this through its strategic consumer-led promotions. To achieve this, Munchys is regularly brand-building through their numerous inn ovations and new products. One of the Munchys key on drivers in brand building is its active in sponsorship role. Munchys is a considerable player and firm believer in sponsorship and now being the high sponsor of major concerts organized by top concert and event organizers, television and radio stations. Before this, Munchys has sponsored the Miss Chinese Cosmos southeastern Asia Pageant with created its very own prenomen Miss Munchys Fun Fit. The title is in line with the launch of its new health range of product, Oat Krunch. Nowadays, sponsorships help Munchys increased in its mileage and the brand image is easily recognisable as one that offers high quality products.To ensure consumer can taste its keep supporting Munchys high quality products, Munchys Quality Assurance and Quality Control Department played an important role. This department ensures that all the production procedures that are in place are constantly adhered to the international standards set by the many re gulatory boards from which Munchys has received official. The department is function in three categories which is in-process quality control, incoming control and laboratories. In-Process Quality Control is used on monitoring the product quality parameters at various bear on stages from raw material until finished goods. Incoming Control is to monitoring of raw material and packaging at the entry level. The third grade is the Laboratories and this category is divided to 2 part which is Microbiology Laboratory that responsibility on see and minimize microbiology contamination of products, processing lines, operators and general environment, thus ensuring the products are acquit from harmful bacteria contamination. General Laboratory is responsibility to ensure that all the products meet legislative requirements, and are up to its consumers expectations.Munchys today boasts state-of-the-art manufacturing and storehouse facilities which cover more than 400,000 square feet in Batu Pahat, Johor, Malaysia. Besides that, Munchys products can be found in approximately 60 countries around the world. In fact of this, MunchWorld Marketing Sdn Bhd which set up in 1996 was played an important role as the marketing arm of all Munchys products. Munchys vantage point was its in-depth know-how into the successful marketing of fast-moving consumer goods or FMCGs, both locally and internationally. Munchys marketing prowess was proven through its own well-known, established and popular products among consumers. Besides that, MunchWorld was able to channelize invaluable insights into product development, having grown Munchys from scratch with our endless pool of resources and knowledge. This made us feel it was time to share our skills and expertise with other honorable brands that understood the potential and value of good marketeering.To strengthening their product appeal and market from rivals, Munchys products always attract consumers across all segments such as kids, t eenagers, adults. For example, Munchys launched the irresistible Captain Munch which aimed their targeted at teenagers and kids. This product is enriched with source of vitamin and nutrition as well as the perfect nutritious health snack solution for smart and active kids and teens. These products have been reinforce Munchys commitment to providing more great-tasting snacks that help consumers strike a healthy balance in their daily lives.6.0 ConclusionThe strategy used by Munchys make the company become stronger and stronger. The product their product are aimed on the teenagers and kids which enrich with health sources, and halal which mean the products are available to Islamic. Their RD which specifically focuses on new potential products and innovations will ensure the company always stays at the forefront of innovation. Every new products come out from Munchys are always back up by their chocolate lover. The main reason why the customers always supporting their product is Munch ys always emphasize on using the high quality ingredient to process the high quality product. The effort on using the high quality ingredient on process the high quality product ensures Munchys become successful.Referencinghttp//www.munchys.com/MY/html/history.aspxhttp//www.1000ventures.com/business_guide/strategy_formulation.htmlhttp//www.munchys.com/MY/main.aspxhttp//www.batupahat.org/?p=942http//www.nestle.com/AllAbout/AllAboutNestle.htmAuthor by CATHY A.ENZ, hospitality Strategic Management (concept and cases), second edition, summon 18.Author by Richard L. Daft, Patricia Lane, Management, page 191.