FACULTY OF BUSINESS & TECHNOLOGY

Marketing Management
GSRM7223

Group Assignment Work-Based Project

Ansoft Matrix – “Etika Tapping New Trends”

Prepared For: -
Puan Normaziah Binti Che Musa, Course Leader
&
Dr. Siti Nor Bayaah, Tutor

Prepared By: -
Aimi Badrillah MC200110489
Gunasekaran Muthu MC200110612
Irene Wong Hong Lei MC200110323
Manjula Sekaran MC200110448
Norhafida Ahmad Hafiz MC200110609

Date:
Sunday, 9th August 2020

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 Table of Contents

Company Overview…………………………………………………………….…….3

Etika ANSOFT Matrix ………...………………………………....………..…….....3-6

Company Product Mix and Product Lines……………….………………………...6-8

ANSOFT Market Analysis……………………………….……....………..…….........9

Market Penetration.…...………….……………………………………...9-14

Market Development…………….……………………………..………15-24

Product Development…………………………………………..………24-32

Diversification ………………………..………..………………………32-35

Conclusion ………………………………………………………………………….35

References ……………………………………………………….…..…..….…..36-37

Appendices ……………………………………………………….…..…..….…..38-41

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1.0 ETIKA Overview
1.1 Executive Summary
The COVID-19 pandemic has disrupted and impacted the exchange of goods
globally as companies continues to strive to mitigate the crisis while meeting the
increasing demand from consumers who are mainly working from home. Etika
Sdn Bhd, one of the country’s top beverage distributors on ready-to-drink in
Malaysia that are dealing with consumers directly is stepping up its production
strategy in the wake of sluggish economy fuelled by the coronavirus pandemic.

In responding to the pandemic, Etika has set a parameter to ensure its business
sustainment amid the virus outbreak by adapting a new normal in which Etika get
all its employees to work from home including employees in the sales, marketing,
and human resources as well as resume work as usual by trying to carry out the
same task with a minimum number of people involved as to comply with the
government’s social distancing measures.

1.2 The ANSOFT Matrix of Etika

Etika to date is the only fully integrated halal beverage company in the ready-to-
drink Malaysian market - a one stop beverage partner of choice for 18 brands. The
business has been pursuing a long-term strategy of diversifying its core offering
beyond beverages; this is designed to help differentiate the brand, which is very
important considering Etika is one of the many companies that are dealing with
consumers directly.

Hence, the product chosen for the ANSOFT matrix is WONDA Coffee. A
premium blend of coffee of ready-to-drink that serves customer a “just brewed’
taste to awaken the customer senses. The intention of this is to increase sales as
coffee was more than a beverage. Coffee is a culture that brings people together,
whether it is catching up with friends over a cup of coffee on a weekend or making
a fresh pot of coffee to start the day with family.

Though The coffee shop market is very saturated for Market Penetration to grow
sales significantly, however, Etika is casting its net to capture a bigger slice of the

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competitive and lucrative beverage market in the country. In terms of convenience,
Etika products are affordable and convenient in terms of pack size. The trends,
which Etika is paying close attention to are three-fold: convenience, health and
balance and retail formats.

For Market Development, Etika is growing sales by launching existing products

into new markets. Etika decided to venture into new markets based on the
marketing mix that helps Etika define the marketing elements for successfully
positioning its market offer. Etika used the best-known models, the 4Ps of
Marketing, which helps Etika to define its marketing options in terms of product,
place, price, and promotion.

The latest development is that Etika now plans to increase its sales by launching
new products into the existing market with the hopes to garner a larger market share
and presence by tapping on the trends in the fast-moving consumer goods (FMCG)
segment. Etika has come out with WONDA Coffee 3 in 1 Premium as well as
announced a new Coffee Energy Bar; a healthy ready-to-go snack which is branded
snack premium, due to its high-quality ingredients. This new Product
Development is a way of Etika trying to increase sales in the existing market as
sticking to a similar product will attract the consumer base as it builds on what the
consumer like from Etika and makes it an even higher quality. As for health and
balance, consumers are more health conscious and are increasingly seeking
healthier and nutritional products which is also in line with Etika’s goals.

As more competition comes onto the scene – notably fast moving consumer goods
(FMCG) segment venturing into their own brand of coffee/morning products, Etika
is forced to take more drastic approaches to Diversify because the market is quickly
becoming much more saturated. Etika has launching new products into a new
market, potentially increasing sales by a significant amount. Etika introduced
i-WONDA Booster Machine and Coffee Capsules, expansion into the coffee chain
industry allows them to tap into the difference of coffee market segments which
may increase sales. Shifting more attention onto the new market segments focusing
on demographics means Etika can grow sales and gain a competitive advantage.

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 Noting on the retail side, the company is continuosly seeing how it can improve on
the retailing of its products via digital technology and e-commerce platforms as
well as partnership tie-ups.

1.3 Background of Etika

“Etika” stands for ethics (or trust) and the company will always
continue to deliver Service for Excellence with trusted products and inherent brand
integrity. This has been announced after the acquisition of Etika International
Holdings, in 2014 and Permanis Sandilands Sdn Bhd, in 2011 by the Asahi Japan.
The consolidation of Permanis and Etika had been successfully completed and the
group announced they will now be rebranded as the Etika Group of Companies
(Etika).

The consolidation strengthens Etika’s position in the Malaysian beverage industry

as the company will be the only fully integrated Halal beverage company to offer
all 18 categories of beverages. The Group has expanded their footprint across key
markets in South East Asia. Sales in Malaysia is close to MYR1.5 billion. In
markets such as Singapore, Indonesia, Vietnam etc., the Group is leading the
market across the dairies business with the intention of expanding the beverage
offering over time.

Founded in 1997, the Group started as a manufacturer and distributor of sweetened

condensed milk and evaporated milk and in the years following its listing, has
evolved into a diversified regional
F&B player vide several
acquisitions. Etika Groups is
headquartered in Malaysia and has
established a distribution network
across Malaysia with over 40,000
direct customers. The Group also has presence across key markets in South East
Asia such as Singapore, Indonesia, Brunei, Myanmar, Philippines, and Vietnam.

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 Today the group is one of the leading FMCG companies in the country with market
leaderships position in beverage and dairy industry. Etika has established a
comprehensive distribution network across Malaysia and certified with ISO
management system standard with environmental occupational health and safety.

1.4 Etika Product Mix and Product Lines

The Group has exclusive rights to manufacture and distribute PepsiCo’s global
brands such as Pepsi, Sting, Evervess, Mirinda, 7Up, Revive Isotonic, Gatorade,
Lipton Iced Tea, Mountain Dew and Tropicana. These rights along with sales
offices and warehouses worldwide and a broad distribution network will also now
come under Etika’s wing.

Etika Dairies has been steadily increasing market share through its dairy brands,
“Dairy Champ” and “Goodday Milk”. A leading player in the regional F&B market
with interests in the dairy, packaging, and nutrition sectors, both brands have
maintained their dominance in their respective categories. In 2016, Etika again
grew its footprint by entering the Cultured Milk and Yogurt Drink category with
the launch of Japan’s first cultured milk drink, Calpis. Since the launch, the brand
has been well received by Malaysians and Calpis has had many recent campaign
successes. This includes the recent launch of Calpis Grape, a new addition to the
Mango and Original variants, which together have contributed towards the overall
business growth.

The company also manufactures, distributes and markets WONDA Coffee plus its
own brands like Dairy
Champ, Kickapoo (a
Monarch trademark),
Chill Asian Drinks and
Bleu Water. Etika are
now literally a one stop
ready-to-drink solution
in Malaysia and one of
the few companies in

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 Malaysia to cover all categories in the beverage market. The business in Malaysia
currently generates close to RM1.5 billion and is the key catalyst of growth in the
immediate future.

(i) Etika Product Mix

The product mix is a subset of the marketing mix and is an important part of
the business model of a company. Etika deals majorly with drinking beverage
products and hence, has more product mix consistency. Etika product mix is
illustrated as below image.

(a) Width
The width of the mix refers to the number of product lines the company has
to offer. Etika produces carbonated soft drinks, non-carbonated beverages,
and dairy products. This means its mix is three (3) products wide.
(b)Length
The length of the product mix refers to the total number of products in the
mix. Etika has three (3) product lines; 11 products under Pepsi Co brands, 3
products under dairy and 4 products under own beverages. Under the product
lines in which the length of the mix, the total products are 18.

(c) Depth
The depth of the product mix refers to the total number of products within a
product line. There can be variations in the products of the same product line.

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 Etika has different variants under the same product line of WONDA Coffee
such as WONDA Originals, WONDA Booster, WONDA 3 in 1 Premium,
etc.

(d)Consistency
Product mix consistency refers to how closely products are linked to each
other. Less the variation among products more is the consistency. Etika has
more consistency in its product mix as all its product lines are similar.

(ii) Etika Product Lines

The product line is a subset of the product mix. The product line generally refers
to a type of product within an organization. As the organization can have a
number of different types of products, it will have similar number of product
lines. Etika has carbonated soft drink, non-carbonated beverages and dairy
products. Conclusion, Etika’s product mix will be a combination of all the
product lines within the company as per below image.

2.0 ANSOFT Matrix

(i) Market Penetration Strategy
Market penetration strategy is a product market strategy which a company seeks to
gain dominance in a market which it already has an offering and always focuses on
capturing a large share of an existing market.

(a)Existing Market Penetration Strategy

i. Convenience
To success of the organization, at present Etika is putting potential emphasis on
the three issues. The three factors are convenience, health related issues and
balance in the retail formats. The Growth percentage of Etika rests in between

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5% to 6% annually regarding the consumption of statues by the consumers. This
trend has been observed by the organisation since a time limit of more than a
decade.

At present, Etika is the one and only completely integrated halal beverages
present within the market, which has 12 diverse
types of beverage and even some dairy kinds of
products. At this point of time, the company has
its business operations and collaborations with
some grand companies such as Pepsi,
Tropicana, Mountain Dew, and Revive Isotonic, Miranda and so on. Apart from
this, the company has some products of their own production like Wonda
Coffee, Dairy Champ, Chill Asian Drinks, Goodday milk and Bleu.

Another reason for which the products of this organisation are very favourite in
the market is its very apposite and affordable price and even very justified pack
size. Etika has business partnership with some hypermarkets, supermarkets, and
convenience where the products are supplied and available 24*7 such as7
Eleven, KK Marts, 99SpeedMart, Shell Select, Mesra Petronas, Family Mart,
MyNews.com and several other shops and beverage outlets.

As a leading beverage company, Etika always looks to offer its consumers a

more convenient and affordable way to purchase great tasting products, served
chilled and as freshly produced as possible. The organisation is very much
innovative in their strategy and at present, the company alongside with their
beverage operations is even proceeding towards the exploration to the
commercial non-ready to drink segment. In this regard, the company is also a
distributor of condensed milk. It is expected of the management of the
organisation that soon Etika would be able to emerge as a grand organisation in
the sphere of commercial non-ready to drink segment. Apart from this, they will
be able to offer more choice to the customers, convenience and finally diversity.

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ii. Collaboration with Singapore based Advent System Plc Lt
Based on the overview of the overall business performance of Etika Malaysia
SDN BHD, it is shown that this brand of Malaysia is using collaboration strategy
as one of its market penetration strategies. Use
of collaboration strategy is helping this brand in
deepening its presence into the vending
machine space by the purchased vending
machine which is Singapore based Advent
System Plc Ltd.

This is one of good strategies to provide services and products in front of their
customers within their existing business market. “Atlas Vending machines come
in various formats and some are equipped with proprietary telemetry technology
that eases everyday operations such as stocking machines, inventory
management, operating status, and stock levels, that reduce machine down-time
and stock out situations,”. In that context, this beverage company is buying
Singapore-based advanced vending machines for the performances of its market
penetration activities with developed and prosperous backgrounds. Through the
application of collaboration with the advanced technologies, this brand delivers
its services to their customers with ease. This process helps them to make their
active presence among their customers based on their high quality of services.

According to the press release on 9 December 2019, “with this acquisition, Etika
present is capable of managing the rank of 1 regarding the vending with more
than a number of 10,000 vending machines. This success rate of Etika has been
reported across Malaysia, with several types of services such as cold beverages,
hot beverages, for example coffee, canned and bottled drinks and cup noodles.
Here, vending brings a positive experience to consumers by making products
available at a higher number of locations and enabling them to purchase their
favorite drinks and snacks at more locations. They have several payment options
that include e-wallets, cash, credit cards and some other contactless payments.

With using the vending machine Etika to extract analytics for mapping the
customers journey as the Atlas vending machines with an additional capability

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 to retrieve the cashless sales data for understanding the trend of the transactions,
purchase of the products and also the timeline of the purchase. Having the data
and insights on hand, the company can make decisions quickly and act on any
challenges that may pose a significant threat to the business.

iii. Collaboration with Retailers

Understanding the imperativeness of the retailers, the management of Etika has
developed a retailer loyalty program. By this approach, whenever this
organization launches any new beverage products, the management makes sure
that the retailers know about the new launch and spread this in the market.

Apart from this, for understanding as per the sales of the products of Etika, how
many consumers are purchasing the products of Etika, the employees of the
organization conduct survey strategies for the retailers. With this, the company
gets acquainted with the flow of the sales.

Finally, to assert here, there is a potential agreement between Etika and the
retailers to give additional discounts on the products of Etika (the soft drinks)
especially during off-season. It intensifies the sales of the customers along with
customers’ gratification. These are some retailer-based marketing penetration of
Etika.

iv. Limited Edition

Introduction of a limited range of products is

noted as one of the first market penetration
strategies that this brand of Malaysia is doing in
their present-day context of business.

To maintain a limited edition within the product

ranges, this brand is launching Wonda coffee
edition to attract their customers towards their products. Special designed cans
for the presentation of the Wonda Coffee are representing the state that also
signifies the culture and heritage of Malaysia. Furthermore, designs that are used

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 within the coffee cans of the Wonda Coffee are special gifts to the people of
Malaysia, special gifts to Malaysian in conjunction with Malaysian Day. The
three new WONDA Coffee limited editions come with their own different tastes
depending on how these coffees were brewed. The limited edition with the
unique can designs have been a huge hit for WONDA Coffee fans and
collectors. This process offers extra attractiveness to the products of the
company and even that proved as the success factor in case of market
penetration of Etika.

(b) New Market Penetration Strategies

i. Digital Marketing and Advertising
One of the current trends of advertisement is using ‘Digital marketing
advert’. Today, more brands are experimenting with digital marketing
advertising. Studies have shown that
digital media can be up to seven times
more effective than printed posters and
that consumers will respond more to the
dynamic message system than the
earlier static print signage. Etika should
use digital marketing and advertising as
their new market penetration strategy.

In the case of using digital marketing and advertising strategies, they can use
pop advertising, social media influences and a brand storytelling method for
performing their market penetration operation with an accessible and
developed format. Pop advertising processes can help this brand to outreach
the attention of their customers in a simple and catchy manner. Pop ads are
one of the strategic forms of the internet advertising that is used by the
advertisers for the purpose of extracting the user’s attention. Apart from this,
with this strategy, more online customers can be targeted.

In this present scenario, social media is a type of part of human life as

maximum people use social media. Malaysia alone, 81% of the total
population is active social media users. Social media will help all to share

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 their views for any product, the difficulties they face while using a product
and so many. It is also used for product review purposes. Some vehemently
used social media platforms are social media are Facebook, Twitter, and Snap
chat. Therefore, influences of social media can be used based on the
partnership with social media companies. For example, of famous influencers
that can use such as Sugu Pavithra, she has already garnered 670,000
subscribers and more than 23 million views for their 80 over cooking videos
up to date.

This digital marketing and advertising strategy can be performed in the

breakfast hours (6.00 am to 10.00 am); teatime (3.00pm to 5.00 pm) and
nighttime (8 pm to 10 pm).This market penetration strategy can be applied to
attract customers and will be committed through digital online marketing
platforms. Through the collaboration with the social media sites by providing
voucher, coupon via online, retail markets examples – AEON, TESCO,
GIANT and convenience stores -7Eleven, 99SpeedMart, Shell Select, Mesra
Petronas, KK Mart, FamilyMart, MyNews.com, the success of this strategy
can be adopted.

Furthermore, brand storytelling methods will allow this company to share the
experiences of their customers based on the used products of this company.
It will help to attract the attention of new customers towards the existing
products of this brand.

ii. Product Availability (24/7)

Keeping products available to consumers

is a vital part of the retail business. Poor
availability means unhappy consumers,
and worse financial performance over the
long term.

Product availability is the other strategy that Etika can use as their new
market penetration strategy for the performance of their marketing operations
with the developed format. Based on the product availability strategy, this

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 company should maintain the availability of all their products within their
stores. It defines that the availability of coffee should be available anywhere
anytime throughout the year within the existing stores of this company. That
signifies the availability of all the coffee rages of Etika 24*7 in the retail
marts and convenience stores.

Furthermore, this company should also make their collaboration with the
tourism sectors such as hotels, tourism hot spots for the successful promotion
of their products to their customers and in the market. Within this context,
Etika should introduce new items within their ranges of beverages and that
must help them to attract the attention of their customers towards their
products and services.

Moreover, collaboration with the convenience stores, hotels and tourism

sports can allow this brand of Malaysia to perform their market penetration
operation with the fruitful context. This collaboration strategy must help this
company to reach their products to most of its customers with a fluent
manner. Availability of all ranges of beverages should be maintained with
the 24*7 throughout the year within the convenience store to adopt success.

(ii) Market Development Strategies

Market development strategy is one of key business growth strategies under the
Ansoff matrix besides market penetration strategy, new product development
strategy and market diversification strategy. Any business that is ready to bring its
growth to a next level will focus on the above four strategies to expand further.

(i). What is Market development strategy?

Market development strategy is a business growth strategy involving
introducing the company’s existing products to new markets. This strategy helps
businesses to identify and develop new opportunities to sell their current line of
products in the new potential market.

Market development is the lowest risk strategy to expand and increase the
revenue of the business besides market penetration, unlike product development
and diversification which involves high risk. However, this is also considered
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 to be riskier than market penetration as it can be difficult to understand the
complexities of new markets.

There are several methods for market development. The company should
analyse and perform a market research to decide which strategy suits best for
expanding their business. Below are some of market development strategies
used by many successful companies.

i. Geographic expansion - This involves expanding outside the current region

or selling to a new country or a new continent.

ii. New product dimensions or packaging – repackaging of the existing

product so that it can open a whole new market. For example, a company that
sold industrial cleaning products in 20-liter containers could break into the
domestic market by repackaging in smaller quantities and developing a
suitable brand image.

iii. New distribution channels - Transformation from high street retailers into
Internet retailers. For example, the sale of high-end sports equipment, which
is now almost exclusively sold online rather than through sports equipment
retailers.

iv. Different pricing policies to create a new market segment –

Implementation of competitive price structures with offers and discounts or,
to command a higher price, provide a product with more value than the
competitor's

(ii). Etika’s Market Development strategy:

After performing a detailed market analysis and research to figure out our
potential target market, we have decided to expand Etika’s existing product
to a new region using the market development strategy. Our market Analysis
was done through the most effective marketing mix tool which is the 4Ps -
Product, Place, Price and Promotion to identify our target market. Below is
our analysis on the 4P’s.

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(b) I. Place
Etika has ventured into many Asian countries and successfully growing its business
in these countries. Etika group has established a distribution network across
Malaysia, with over 40,000 direct customers and has presence across key markets
in South East Asia such as Singapore, Indonesia, Brunei, Myanmar, Philippines,
and Vietnam.

Since Etika’s brands are not new to Asian market and it has a strong brand name
across Asia, based on our market research, we have decided to step into a new
region and identified UAE (United Arab Emirates) as a potential target market to
grow the business. Below are the reasons why we decided UAE as a most potential
market to introduce Etika’s existing product.

i. Political and Legal

Historically, the UAE has one of the most stable political systems in the wider
Arab region. The federation has maintained stability since unification in 1971.
The United Arab Emirates constitutional federation consists of seven emirates
i.e. Abu Dhabi, Ajman, Dubai, Fujairah, Ras Al Khaimah, Sharjah, and Umm
Al Quwain. Each emirate is governed by a ruler, while the Federal Supreme
Council, highest constitutional authority of the Emirates, consists of all the
seven rulers. Abu Dhabi is the capital of the UAE. The UAE is considered a big
power in the Middle East and has considerable influences at the global stage as
well. It maintains very good diplomatic and trading relations with the United
States, Saudi Arabia, India, China, and many other countries in the region and
beyond. UAE is also one of the safest countries in the world with low crime
rates. Therefore, politically UAE is a safe and stable country for Etika’s market
development plan.

ii. Economic
The UAE is one of the richest countries in the world in terms of per capita
income. It has made remarkable economic progress over the years and the
factors that have mostly contributed to it are abundant natural resources,
economic diversification, innovation, and inflow of foreign direct investment

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 (FDI). According to the World Investment Report 2019, the total FDI received
by the country from 2016 to 2018 was 30.4 billion US dollars.

The general focus of the UAE’s economic policies is to diversify the domestic
economy and support economic growth while the Federal Government
continues to improve the business environment to encourage foreign
investment. With that said, certainly UAE is one of the economically powerful,
strong, and successful regions for investment.

iii. Social

The UAE is one of the most liberal countries in the Gulf, though it is
conservative traditionally. The total population of the UAE is approximately 9.8
million as of October 2019 (World Meters, 2019). Emirati nationals only
constitute 20% of the total population, making the country home to one of the
world’s highest percentage of immigrants. Most of the immigrants living and
working in the UAE are from India, Pakistan, Bangladesh, the UK, the USA,
Iran, Canada, China, Philippines, South Africa, and Nepal. In fact, according to
some sources, over 200 nationalities live in the UAE making it one of the
leading cosmopolitan hubs in the world. The majority of the UAE population
falls in the age group of 25 to 54-year-old (61.27%). A large part of this can be
attributed to the expatriate population of working men and women who fall in
the age category.

Source:
https://tgmresearch.com/uae-population-
and-demographics.html ; year 2018

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 iv. Positioning / Placing
To start introducing our product in throughout UAE, our main positioning
method will be through retail outlets including hypermarkets, supermarkets and
convenience stores such as Carrefour, Lulu hypermarket, Nesto, Union
Cooperative, Emirates Cooperative, Sharjah Cooperative, Safeer hypermarket,
Spinneys, Al-Maya group, Al Madina Supermarkets, Choithrams, Shaklan,
Westzone, Aswaaque, Baqeer Mohebi etc.

Basically, we will be positioning our products strategically in places where it is

easily accessible for consumers. Shelf placements in hypermarkets and
supermarkets is also our strategy to make our product noticeable to consumers.
While our product will be available in the market 24/7 throughout the year for
consumers to purchase and consume.

(b) II. Product

The product that we have chosen to introduce in the new market is one of Etika’s
successful brands which is WONDA Coffee. We have selected 4 signature flavours
of WONDA premium blended coffee in ready-to-go drink cans to start off the
business in UAE. The selected flavours are WONDA Original, kopi Tarik, Extra
Presso and Latte.

1. Wonda RTD Original - WONDA Original

contains more than 50% premium quality
Arabica coffee beans. Have an Original at hand
when you wake up in the morning or when you
are driving.

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2. RTD Kopi Tarik - WONDA Kopi Tarik is
made with carefully chosen coffee beans,
brewed to perfection to evoke the familiar taste
of Malaysians’ favourite local coffee. You can
now enjoy the premium ‘tastes like just brewed’
local coffee at your convenience.

3. RTD Extra Presso - WONDA Extra Presso

contains more than 50% premium quality
Arabica coffee beans. Its stronger coffee taste
gives you that extra kick for the day.

4. RTD latte - WONDA Latte is made with

smooth and creamy French vanilla flavoured
milk. Pick up a latte when you are hanging out
with friends.

Why Coffee, out of all other products of Etika?

Coffee is a fundamental part of food culture in many countries around the world,
and it is especially prevalent in the foodservice industry. Coffee is clearly the
beverage of choice for tons of people around the globe. According to coffee
statistics from the International Coffee Organization (ICO), UAE residents
consume an average of 3.5 kg of coffee beverages each year, nearly twice as
much as in any other GCC country, making it one of the fastest growing markets
by volume for coffee in the world. ICO also stated People in the UAE already
drink nearly twice as much coffee as anywhere else in the GCC and
consumption levels are set to continue to grow at around 12 percent per annum
until 2014.

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 Majority of the UAE population consist of urban working expatriates that are
increasingly leading hectic lifestyles from countries like India, China, Pakistan,
Nepal, Europe, Singapore, and other countries around the world. Without having
to say, coffee is a favourite drink for people around the globe. Many coffee
manufacturers target Middle Eastern countries as potential markets due to the
highest consumption level.

Therefore, we believe there is a huge potential for growth in this region and our
strategy is to expand in cities where there are two habits; the habit to appreciate
the coffee and the habit of shopping. Clearly this region has a habit of shopping
and they love coffee, hence the reason we have chosen coffee to market in here.

Our target market in this country is working adults and younger cohorts as they
represent most of the population in UAE (Age group 15-24 covers 13.53% while
age group 25-54 covers 61.27%). Most people are employed and part of the
middle-upper class therefore their purchasing power will be high.

The United Arab Emirates population mainly consists of urban working

expatriates that are increasingly leading hectic lifestyles. Convenience of
consumption, therefore, has become a key need to fulfil purchasing decisions.
Due to the current trends and busy lifestyles, young people and working adults
in UAE are increasingly on the go, and they’re looking for coffee and drinks
that are easy to carry around such as Ready-to-drink coffee like cans of pre-
made coffee that you can find in gas stations and convenience stores. Wonda
RTD coffee is perfectly poised to cater to this demand as consumers look to
purchase cooling beverages due to high temperatures in the summer. Caffeine
formulations that are served cold as well as score highly on taste even with low
sugar content, are especially popular. This is another reason we think our RTD
(Ready-to-drink) Wonda Coffee will be successful in UAE.

(b) III. Price

Pricing is the most important aspect of a business as it determines the profitability
and sustainability. We are introducing our Ready-to-Drink Wonda coffee in UAE

20
 with an affordable price of USD1.20 per 240ml can (AED 4.40) and USD7
(AED25.70) for a bundle of 6 cans (6x240ml).

Nestlé remained the leading player in RTD coffee in off-trade value and volume
sales terms in 2019 in the United Arab Emirates. Besides Nestle, RTD coffee
witnessed several new entries in 2019 in UAE. These included the Bonny Iced
Coffee brand, which is available in Latte Macchiato and Mocha flavour variants.

Our Wonda RTD drinks price is very competitive compared with any other RTD
drink brands in the UAE market without compromising on our product quality.
This makes us stand out compared with other brands in the market. Everyone is
affordable to purchase our product as it is cheap yet with premium taste and quality.

Apart from that, our packaging looks unique and catchy compared with other
brands. Attractive and unique packaging is one of
Wonda’s strategies to draw consumer’s attention.
With this strategy, Wonda may be able to compete
with other competitors in the UAE market and
certainly will grab the consumer’s attention and continue to progress in this region.

(b) IV. Promotion

People rarely buy a product or service they haven't heard of, nor will they buy it if
they don't know what your company offers, especially if it's a food category.
Therefore, a great promotion strategy is vital to grow the business. Promotion is a
strategy to influence people about the company’s product and boost customer’s
engagement. Promotional activities can build awareness about our product to target
customers, foster interest, purchase the product, generate demand towards the
product and help to establish stronger relationships with customers.

Wonda Coffee has also taken the promotional activities seriously to promote the
RTD coffee throughout UAE. Below are some promotional activities planned by
Wonda.

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 i. Road Shows
Roadshows are a great way to spread the word in an in-person, interactive
format and reach those you may not have been able to otherwise. Roadshows
are a great way to jumpstart the introduction of a product and for demand
generation. Successful roadshows can take Wonda’s message and brand to the
wider community. We will target several cities and urban cities to do
roadshows targeting crowded locations such as shopping malls, corporate
office locations, educational hubs, etc. This could increase customer’s brand
awareness and product knowledge about Wonda.

ii. Advertising through Billboards in major cities and near busy highways/
roads.

Despite the emergence of new media influence, one avenue still proves to be
effective in sparking audience interest is billboard advertising. There are a few
reasons why Wonda selected billboard advertising as one of the promotional
methods. One of it is, billboard advertising offers a lot of space and freedom
to be creative. There are many different forms and styles of billboards. The
more creative you are, then the more memorable your ad and message will be.
Wonda will utilize our creativity to stand out from competitive marketing
campaigns and win consumers over by having a well-designed billboard.
Aesthetics will capture people’s attention and if it looks unique enough, then
people will spread the image as well as remember our brand Wonda. Secondly
Billboard advertising can’t be avoided. Audience will be guaranteed when it
comes to Billboard advertising. As we will be choosing the most prominent
locations and spots to display our billboard, it will be difficult for consumers
to ignore your ad.

This goes the same to people in traffic. Since billboards are so huge and eye-
catching, some people literally get forced to look at the sign. Wonda will
design the ad according to latest trends and technologies to draw people’s
attention.

Unlike digital advertising, Wonda’s billboard ad will reach a broader audience.

Not everyone has a technological device to get on to see ads, but outdoor and

22
 indoor advertising cannot be avoided. People of all ages, gender, and races will
be exposed to our billboard advertising. Therefore, without having to say,
billboard advertising is the best method to reach out to a mass audience with
less effort.

iii. Collaboration with corporate companies – AirAsia and Emirates

Wonda will also tie up corporate companies like AirAsia and emirates to
promote Wonda coffee. Collaborative promotional activities are one of the
fastest ways to reach out to our target market. Wonda will conduct the
collaboration promotional activities for certain periods of time (3-5 months) to
create brand awareness. Free Wonda coffee RTD drinks will be supplied to all
AirAsia and Emirates passengers who are flying back to UAE. Due to our
premium quality taste, certainly consumers will get attracted with our product
and continue to purchase. Besides that since we are collaborating with well-
known corporate companies, automatically it will create some level of trust on
our products to customers.

iv. Sales promotions – Buy One, Get One (BOGO)

Lastly, Wonda will do sales promotions to attract more customers towards
buying our product. Though traditional discount sales are effective, Buy One,
Get One (BOGO) has become one of the more popular and effective
promotional methods lately. Shoppers like to get free items. To shoppers, no
matter how large the discount, it does not stand a chance against “free.”
Therefore, Wonda’s buy one get one strategy is a great discount technique to
use to appeal to consumers. By executing this strategy properly, we are certain
that Wonda will be able to increase its sales and demand.

(c) Product Development Strategies

To expand business to a step ahead, we have used the PESTEL strategy to
determine an understanding of changes that may be occurring within a given
market. We believe this strategy is the best method to influence the marketing
tactics that will be structured in introducing a new product with the business
market. As a business entity, we need to always think further in expanding

23
business, knowing ahead of time that a change may be occurring and helps in
making better business decisions. Below is the summarized PESTEL diagram:

(a) Marketing Environmental Forces

a. PESTEL Analysis

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b. Consumer Behavior Pattern
Through a research conducted by ACNielsen, it has been said that
Malaysians spend a large amount of their household income on food,
groceries, and personal care items. Roughly, the average spending would
be RM 505 per month solely on food and groceries.

Indeed, it is truly important to study the consumer behavior pattern as this

would help to improve the business marketing strategies by understanding
the psychology of consumers, how they think, feel, to know their
preferences and so on. Below are the supporting facts of trends in the
consumer behavior pattern that is happening in the marketing environment
that initiate a need for a new product:

i. Impulse item - handy and convenience

Impulse buying is a widespread phenomenon. Nearly everyone shops
on impulse (BetaBait, 2013, December). Based on best estimates,
approximately 40% of consumer spending is on impulse (C&E Vision,
2011, March). Impulse buying usually occurs when consumers are
given a strong, positive signal associated with a certain product. Due to
current hectic lifestyle, most people do not have much time to have a
proper meal and they prefer to grab food on the go. Most people prefer
some food-on-go that is satisfying and fulfilling to avoid further health
complications such as gastritis, gassy stomach and so on. Moreover,
Nielsen Research has proved that consumers want an instant but
healthy food options and convenience retailers prefers food products
that can be merchandised as impulse items or handy solution-sets.

ii. Changing of lifestyle

Most Malaysians have the habit of overeating unhealthy food as this

type of food are obtainable at drive through such McDonalds,
Starbucks, and even quick meal by pouring hot water like instant
noodle and many more. According to the National Health and
Morbidity Survey 2015, more than one million (9.2per cent) of those

25
 in the age group between 18 to 40 years old have diabetes, 1.7 million
(14.7 per cent) with hypertension and 14 per cent of them are obese.

As health issues has been alarming, it seems now that the local eating
patterns are shifting, as Malaysians are keener in moving towards
healthier options. Recent findings by the prominent dairy company,
Fonterra Brands Malaysia, and Kantar Worldpanel has found out that
oats and dairy products are the most vital selections of food in
Malaysian diet. The current trend is towards healthier eating as
consumers realized the nutritional benefit and impact food has on their
well-being. With an expanding middle-class and rising disposable
incomes across Asia, there is now a wider base of consumers willing
to spend on products that support their overall health,” says Karen
Leong, regional account director of Kantar Worldpanel.

c. Competitors Analysis
In this report, we have done a ground observation by visiting some
supermarkets and convenient stores to compare the energy bar prices:

Item Brand
Product Quaker Chewy Bar Kellogg's Nutty Choc
Cereal Bar
Price RM10.99 RM11.23
Weight Cereal Bar 4 x 25g Cereal Bar 4 x 25g
(100g) (100g)
Packaging Plastic wrapper Plastic wrapper

Placement Selected retail outlets Selected retail outlets

Most brands sell in box packaging with a certain quantities of energy bar.
Most competitors make full use of the savvy marketing, selling cheap
energy bars with promising healthy benefits yet, it is just nothing more
than a candy bar dressed up as health food. For example, some bars
covered in chocolate contain as much saturated fat as a Snickers bar and
others contain almost as much sugar.

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(c) Product Development: Coffee Energy Bar
Introducing Coffee Energy Bar, the first coffee flavour in Malaysia as we
believe, the new creation of this product suited well with to satisfies a newly
defined customer want or market niche.

The tagline “a cup of coffee in every bar” is being focused at all four (4)
flavours with its own significant feelings individually. This new product aim
to discerning the health from the junk which contains high fructose corn
syrup or excessive sugar.

(i) Product Details

The coffee energy bar is selling at RM8 per bar with lesser quantity of 25
gram only. What makes it unique by selling at an affordable price, the
ingredients used are all premium and certainly nutritional food selections.

What makes it more distinctive, the packaging is 100% to support no

wastage and environment friendly by using a paper food material wrapper.
The dimensions are (width x height x depth): 12 x 4 x 1.7 cm. Refer below
for further details:

Price RM 8.00 (per energy bar)

Weight 25 gram
Dimensions 12 x 4 x 1.7 cm
Packaging Recyclable wrapper

(ii) Product Image

Choosing the most premium coffee bean, Arabica is just the right choice
for many coffee enthusiasts. Due to its taste, Arabica beans have a
sweeter and more complex flavor, even those who are not into coffee
will like bnb,it. The product looks like below:

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(iii) Product Flavors and Product Ingredients
Customized with the appealing concept “The Coffee to Cater Your Every
Mood”, below are some guidance for consumer to choose based on their
feelings. The ingredients are a healthy dose of protein and fiber to be the
wise choice for a snack or mini meal. While the calorie per bar is range
from 100 to 225 calories only.
The Flavors / Mood Feelings Heathy Ingredients

• Every item comes with

below main ingredients but
differs in the coffee powder
used (espresso, cappuccino
latte, mocha, and caramel
macchiato).

• Nuts, Raw Honey, Organic

Oats, Tropical Fruits,
Ground Cinnamon, Dates,
Grated Coconut, Chia Seeds
and Maple Syrup.

(iv) Market Segmentation

Popularly known as supplemental bars which contains cereals and high

energy food, the energy bars are usually targeted to people who wants

28
 quick energy and has insufficient time for an appropriate meal. Hence,
the market segmentation is further derived into below detailing:

a. Demographic Variable:
Energy and nutrition bars are expressively more attractive to
consumers aged 18-44 than they are those aged 45 and older.

b. Physiographic Segmentation:
Aiming a market that has alike attitudes, values or lifestyle. For
example, people with active lifestyles will buy more energy bars
than individuals with no physical activity or cossetting in busy daily
schedule.

(v). Product Placement

Initially, energy bars have only evolved in sports nutritious as it is merely

hyping effectiveness for athletic fuel only. However, the healthy
ingredients surely benefited the consumers market wholly. While in the
Asia Pacific, the growing interest in health and wellness has provides an
opportunity to the market. Therefore, this product is easily obtainable at
anywhere as per below list of distribution channels:
i. Convenience stores
ii. Colleges and universities
iii. Vending machines
iv. Retail marts
v. Kiosk
vi. Business centres
vii. Airports

(vi). Product Promotions

In order to increase the expenditure on product innovation and marketing,
it is certainly important to take into account of categories such as health-
conscious consumers with a busy lifestyle whose levy a high impact on
the snack bar-consumption pattern, across the world. Thus, the

29
convenience form of product, packed with nourishing and energy-
boosting composition would surely hastens the market.

Geographically, The Coffee Energy Bar will direct its marketing and sales
efforts within the areas of Malaysia that tend to adopt new concept "food-
on-the-go" trends faster. As a growing product in a competitive market, it
is important for The Coffee Energy Bar to convey clearly and succinctly,
its reason for being. Below are the creative campaign methods:

a. Road Show
Partnering with local media broadcasters such as Astro and Media
Prima and using the local mainstream radio such as Hitz FM, Era, Hot
FM and Fly FM.

b. Retail Outlets and Convenience Stores

Entirely different from its missions, grocery stores are a destination for
consumers who need to purchase food and household products for both
everyday use and special occasions. While convenience stores, are
specifically for shoppers who need one or two products right away.
This product will be selling at 99 Speedmart, KK Mart, 7-Eleven,
Tesco, Mydin, Hero Supermarket and AEON Big.

c. Hot Spots
A physical location where people gather either to enjoy free internet
access or to just chilling with friends and families. The usage of
vending machine serves less hassles and targeted places are
recreational park, public library and public transport areas like LRT
and MRT stations.

d. Universities and Colleges

Caffeine helps to boost mental clarity. This on-the-go bar is the perfect
way to fit bliss when students juggles between classes, completing

30
 assignments and so on. Hence, it will be sold at every local public
universities and private colleges.

e. Offices
Easily purchase at any marts in the office buildings as working people
will have the audacity to select this item when rushing between meeting
clients, jumping from one meeting to another and so on.

f. Hype challenge in the media platforms

About 40% of people stated that they purchased a product online after
seeing it used by an influencer on YouTube, Instagram, Facebook and
Twitter. The voice of social media influencers helps to engage with the
public, hence, boost product demand and increase marketing
promotions. Examples like fitness guru and health conscious who
conducts own exercise programs are Sharifah Sakinah, Jordan Yeoh,
Pashini and more. These kind of social media influencers can help to
create a hype by producing a content and makes it an on-going
challenge to include The Coffee Bar as a part of must have product in
daily life activities.

g. Digital Coupons
The e-commerce industry is blooming and will continue to greatly arise
in years to come. Especially with current pandemic COVID-19, it is a
wake-up call to not solely focusing on traditional bricks-and-mortar
retail anymore. Therefore, this product sees the potential to
collaborates with local e-commerce companies such as ZALORA,
LAZADA and Shopee which is now expanding their business to serve
more variety food items. Moreover, digital coupons are a growing trend
in the online retail world. For instance, when customers purchase a
minimum of 10 energy bar in any of e-commerce platforms mentioned,
they can enjoy a special promotion code worth 15 percent discount.

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(d) Diversification Strategy
It is proposed to launch a new product, named as “i WONDA Booster Combo” into
the new market with the tagline of relaxing at your own comfort with premium
quality. The main objective of this new product is to increase the sales amount
significantly. The meaning of the new product name consists of technology
advancement elements and the usage of “i” can enhance the customer sense of
belonging.

(i).About i WONDA Booster Combo

i WONDA Booster Combo is a handy and automatic

coffee machine that comes with four (4) flavours of
coffee capsules which include Energetic (Espresso),
Happiness (Latte), Relaxing (Mocha), and Gloomy
(Caramel Macchiato). Either one of the flavours, it will describe well and
match customers' feelings of the day. Customers can relax at their own
comfort with the premium quality of the coffee whenever they are.

(ii).Total Consumption of Coffee in Malaysia and Price Per Combo

Based on Statista analysis on Malaysian regular beverage consumption in 2016,

it shows that coffee is the most regular beverage consumed by Malaysian.
60.83% of overall respondents stated they drink coffee daily. In 2018,
approximately six hundred thousand 60kg bags of coffee had been consumed in
Malaysia. Due to the high demand for coffee consumption and fast-moving pace
lifestyle nowadays, customers prefer handy and convenience products with high
quality at affordable prices. To fulfil customer needs and enhance the product
attractiveness and brand loyalty, we have designed i WONDA Booster Combo
based on a cost-efficient method and attractive packing. It is proposed to provide

32
 few promotion combos packages as below.

Category Price

Diamond RM1/rental & capsule with minimum 90 capsules per month

Gold RM2/rental & capsule with minimum 60 capsules per month

Silver RM3/ rental & capsule with minimum 30 capsules per month

Additional rewards include 20% off for two (2) year’s subscription and 10% off
during birthday month.

Assumption:
Assume that an individual only consumes a cup of coffee per day. Hence, the
monthly expense on coffee is shown below.

Category Quantity Unit Expense Per Month (RM)

(Based on 30 days per Price
month)

Diamond 90 capsules = 90 days or RM3 RM3 x 30 capsules = RM90

3 months

Gold 60 capsules = 60 days or RM4 RM4 x 30 capsules = RM120

2 months

Sliver 30 capsules = 30 days or RM5 RM5 x 30 capsules = RM150

1 month

(iii).Market Segments
a. Demographic
Our main target market is working adults from middle income level and
above (60% of total population in Malaysia) as they may have higher
purchasing power in the market compared to those categories which are
lower middle income and below.

33
b. Geographic
Borderless as customers can purchase i WONDA Booster Combo via
online purchase at www.wonda.com.my. The products will deliver to their
doorstep within seven (7) working days after successful payment.

c. Physiographic and Behavioural

When customers use this combo, it can reflect and enhance their self-
esteem status in society as our product is different from other commercial
products. Our “i WONDA Booster” is designed based on personalized
characteristics. Customers can choose the flavors according to their
feeling on the day and indirectly it can become a “need/habit” in their daily
life.

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3.0 Conclusion
Etika continue evolved as needed and at the same time observing how this pandemic has
shaped global markets in terms of presenting new challenges, opportunities and shifting
in demand of both global and local consumer behaviour in keeping itself constantly
updated with the consumers want and need. As a company that prioritises innovation,
Etika indeed have embraced challenges positively and believes that they have the right
recipe to continue delivery to meet consumers’ needs.

With the recent sugar tax in Malaysia, a 0.40 cents tax per little will be imposed on the
soft drink with more than 5gm of sugar per 100ml and on average, a single can of sugar
drink will contain about 40gms of free sugar; Etika does aware that sugar tax is nothing
new for the world of beverages as several countries has already accepted it in which
Malaysia is following suit. Thus, in an effort to contribute towards a healthier Malaysian,
Etika not only adhere to the government’s regulation but also tailor the consumer
preference versus competitors offers in the market to have products which are not
indulgence healthy but also has the meaning and purpose to the products itself.

A sugar tax is indeed a benchmark to ensure that the company/manufacturer embark

towards healthier Malaysia. Etika in fact, is committed to that and see the advantages
from that. Etika truly believes they have a strong internal capability to be able to create
product at a very fast pace which not only up to consumers preferred but is a step towards
a healthier product. Etika in fact, continuing to remain committed to provide fantastic
products that are safer, healthier, with great tasting and indulgence to the consumers.

35
4.0 References

About Etika Retrieved from https://www.etikaholdings.com/

Aashish Pahwa, July 12, 2020, What is Product Mix, Marketing Essentials,
Feedough.com, The Etnrepreneurs’ guide, Retrieved From
https://www.feedough.com/product-mix-explanation-examples/

Kasmiah Mustapha(2018), Aug 7, 2018, Snack on this, Retrieved from:

https://www.nst.com.my/lifestyle/heal/2018/08/398790/snack

Teck Chai Lau, Ching Seng Yap, Yet Mee Lim, Jan 4 2010, Online Search and Buying
Behaviour:Malaysian Experience. Retrieve from:
https://www.researchgate.net/publication/288023951_Online_Search_and_Buying_Beh
aviour_Malaysian_Experience

NST Team - November 16, 2017, Many young Malaysians not healthy because of their
lifestyle, Retrieve from:
https://www.nst.com.my/news/nation/2017/11/303943/many-young-malaysians-not-
healthy-because-their-lifestyle

ABIRAMI DURAI, 16 May 2019, Food trends in Malaysia show Malaysians are more
health-conscious. Retrieve From:
https://www.thestar.com.my/lifestyle/food/2019/05/16/food-trends-in-malaysia-
malaysians-more-health-conscious

R. Hirschmann, Jul 7, 2020, Total coffee consumption in Malaysia from 2009 to 2018,
Retrieve from https://www.statista.com/statistics/877125/malaysia-total-coffee-
consumption/

Fitriya Abdul Rahim, Goh Poh Jin and Cheah Lee Fong, 2019, Journal of Marketing
Advances and Practices

Das, G., Mukherjee, A., & Smith, R. J. (2018). The perfect fit: The moderating role of
selling cues on hedonic and utilitarian product types. Journal of Retailing, 94(2), 203-
216

Dodgson, M. (2018) Technological collaboration in industry: strategy, policy and

internationalization in innovation (Vol. 11) Abingdon: Routledge

Rob, M., Kemperman, A., & Borgers, A. (2017). Product availability insight as an omni
channel strategy for retailers. In 24th Annual Conference of the European Real Estate
Society (ERES), 28 June-1 July, Delft, The Netherlands, 149

Tuten, T. L., & Solomon, M. R. (2017) Social media marketing London: Sage

https://www.thestar.com.my/business/business-news/2019/08/05/etika-tapping-
new-trends

36
https://www.businesstoday.com.my/2020/07/29/etika-holdings-appoints-
santharuban-thurai-to-head-newly-acquired-advend-group/

https://themalaysianreserve.com/2020/04/30/crisis-management-amid-covid-19-
ensures-etikas-business-longevity/

https://www.nst.com.my/business/2019/12/546653/etika-expands-it-business-
portfolio

37
5.0 Appendices
(i). Etika Tapping into New Trends – Slides presentation
GSRM7223_Marketing Management_Group Assignment-Work Based
Project_Lesson 5_ETIKA Sdn Bhd_25072020_Final.pptx

(ii). Group Assignment – Work Based Project Instruction

38
 GROUP ASSIGNMENT – WORK BASED PROJECT
Lesson 5/Week 5

Task:
Choose a local company that sells convenience products, such as Julie’s, Yeo’s, Gardenia, or
Farm Fresh.
1. Product mix and product lines:
a. List all the company’s product lines. (2 Marks)
b. Evaluate the company’s product lines. Do you think the company’s product lines
are consistent? Explain. (2 Marks)

2. The Ansoff Matrix, also known as the Product/Market expansion grid, is a tool used by
companies to plan for growth strategies. It was developed by H. Igor Ansoff in 1957 and
published in the Harvard Business Review in an article titled ‘Strategies for Diversification.’

You need to suggest new marketing ideas for each of the matrix, i.e., something that the
company has not done before. Your suggestion should be supported by current trends and
facts.

a. Market penetration strategies. (10 marks)

Design TWO (2) marketing strategies and tactics that must be undertaken by the
company to grow further using a penetration strategy. Be specific in your suggestion in
terms of when, where, and how.

b. Market development strategies. (20 marks)

To grow further using market development strategy, construct marketing tactics for the
company to enter a new region or country by answering the questions listed below.
Explain why the new place is the best to go in. Support with facts and trends.

i. Place:
Where and how will the company be selling its product? (Different countries, sometimes
require different ways to sell convenience product)

39
ii. Product:
Which product would the company try to bring to this new foreign market?
Why do you think this product will be successful in this new market? Support your
reasons with facts based on any of these, but not limited to demographics, Socio-
cultural, etc.

iii. Price:
What pricing strategy will the company use? What is the appropriate price to set in this
new market? Justify and support with evidence. (For example, compare with
competitor’s product in terms of price.)

iv. Promotion:
How do you intend to promote this new place? What are common promotion methods
that you think is suitable to promote the product? Justify with reason.

c. Product development strategies (40 marks)

To grow further using product development strategy, develop a marketing plan for the
company’s new product, by explaining these:

i. Marketing environmental forces:

a. PESTEL analysis. Are there any new forces in the environment that increase the
need for a new product?
b. Consumer: Are there any trends in the consumer behavior pattern that is
happening in the marketing environment that initiate a need for a new product?
Provide facts.
c. Competitor analysis: Are there competitors selling a product to fulfill the needs
How much are they selling? Provide evidence.

ii. Product:
Recommend a new product to fulfill the needs based on the marketing environmental
forces above. How does the new product look like? What is the size of the new
product? Explain how this new product can fulfill the trends in the
macroenvironmental forces.

40
 iii. Target market:
Who is the target market for this new product? Explain why they need this new
product.

iv. Price:
How much is the price of the new product? On what basis do you set the price? Is it
cost-based, value-based, competitive pricing, or other methods you think is
appropriate? Support with evidence.

v. Place:
Where and how the company should be selling its new product?

vi. Promotion:
Create a ONE (1) A4 size advertisement poster to introduce this new product. Include
the benefit, image, or positioning on the advertisement poster.

d. Diversification strategy. (10 Marks)

To further expand using diversification strategy, propose ONE (1) new product for the
company, that target a new market segment. The suggestion should be creative as well as
guided by the company’s resources and expertise. This idea should also be supported by
strong evidence and facts in terms of customer needs as well as marketing environmental
trends.

41