UNDERSTANDING MSMES

CONSUMER BEHAVIOUR:
BEST PRACTICES FROM
MALAYSIA
JULIANA FRENCH
MONASH UNIVERSITY MALAYSIA
Let’s make learning comfortable 2
1. WHY IS CONSUMER BEHAVIOUR
IMPORTANT?

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 WHY IS CONSUMER BEHAVIOUR IMPORTANT?

 First, what is consumer behaviour?

 Go to https://answergarden.ch/2570189
 Type your answers

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TRY THIS EXERCISE

 Watch the video and try to

identify what was Coke’s
objective and why was it
successful?

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DISCUSSION

 Do you have anything similar in

Indonesia?
 Will this strategy work in Indonesia?

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 SPOTLIGHT ON COCA COLA

 Coca-cola remains the most chosen consumer brand globally

and continue to lead the rankings in both Europe and Latin
America regions. Given fierce competition coming from local
players in Asia, Coca-Cola has managed to maintain its position
with the Top 5 most chosen brands in 6 out of 8 Asian markets
within beverage sector.
Source: KANTAR Asia Brand Footprint 2021 –The most chosen consumer brands across Asia

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 COCA-COLA
POSITION ACROSS
ASIA

 Despite the negative

impact of COVID-19 on
beverage sector in 2020,
Coca-cola has managed
to grow its CRP in many
Asian markets such as
Chinese Mainland, South
Korea, Taiwan and
Vietnam.
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Source: KANTAR Asia Brand Footprint 2021 –The most chosen consumer brands across Asia
SPOTLIGHT MALAYSIA
2. UNDERSTANDING
CONSUMER BEHAVIOR

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POPULATION
MALAYIA 2021

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 THE BLIND
MAN AND THE
ELEPHANT

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 CONSUMER INTELLIGENCE

TRADITIONAL TOP DOWN BOTTOM-UP

 Supply-side perspective  Demand-side perspective
 Reactive  Proactive & innovative-driven
 Client-activated  Exploratory & limitless variables
 Hyphothesis-based  Consumer journey-focussed
 Problem-focussed  Continuous behaviour & attitude study
 Explanatory  Holistic consumer view
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 TOP 6 BEHAVIORAL
ARCHETYPES
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Source: DATTEL 25 Behavioural Archetypes for Consumer Marketing

 ARCHETYPE #1 - ACCESSORISE ME

Spends on accessorise
frequently, for various
occasions. Includes bags,
caps, jewellery, watches and
shoes.

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Source: Dattel 25 Behavioural Archetypes for Consumer Marketing

 ARCHETYPE #2 - BEAUTIFUL ME

Has a relatively complex

personal care routine and
uses various tools to
improve aesthetic
appearance

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Source: Dattel 25 Behavioural Archetypes for Consumer Marketing

 ARCHETYPE #3 - CHEF ME

Mainly responsible for meal

preparation, is adept at
cooking, and spends on
kitchen appliances

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Source: Dattel 25 Behavioural Archetypes for Consumer Marketing

 ARCHETYPE #4 - HOUSEPROUD ME

Particular about home

upkeep and uses home
care services regularly

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Source: Dattel 25 Behavioural Archetypes for Consumer Marketing

 ARCHETYPE #5 - QUICK / JUNK FOOD ME

Consumes fast food and

instant foods almost daily

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Source: Dattel 25 Behavioural Archetypes for Consumer Marketing

 ARCHETYPE #6 - SOCIAL MEDIA JUNKIE

Actively uses social media

for various reasons besides
shopping and work

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Source: Dattel 25 Behavioural Archetypes for Consumer Marketing

TRY THIS EXERCISE

 Which consumer archetype do

you most identify with?
 What kind of messages appeal
to you?
 Relate this to the blind man
and the elephant.

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 3. FOOD & BEVERAGE INDUSTRY MALAYSIA
JANUARY 2020 – JUNE 2021
JAHARI, FRENCH & ISMAIL (2022), COVID-19 AND THE METAMORPHOSIS OF THE F&B INDUSTRY IN MALAYSIA

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 DISRUPTION OF THE FOOD & BEVERAGE (F&B)
INDUSTRY
 Prolonged lockdown imposed due to COVID-19 caused considerable disruption to the
Food & Beverage (F&B) industry
 Unlike the West, F&B industry in South East Asia (SEA) is labour-intensive
 Forced food operators to move their business operations to digital platforms (less
labour intensive 7 more digitally enabled)
 Cultural transformation involves not only change in processes but change in habits of
people (consumers & employees)
 Dominated by small & medium enterprises (SMEs), F&B industry players found it
challenging to embrace digital technologies with limited resources
 Some revised their value proposition, others had transformative change 24
 DYNAMIC CAPABILITIES MODEL

DYNAMIC CAPABILITIES

SEIZING
TRANSFORMING
SENSING Designing and refining
Realigning structure and
Identifying opportunities business models;
culture
Committing resources 25
 SENSING – IDENTIFY & DEVELOP OPPORTUNITIES

 Pre-Covid , dining in accounted for 82% of F&B business that was immediately lost.
 Homecooked meal and food delivery became popular
 One restaurant Babe came up with an entirely new menu to cater to delivery time
turnaround
 Shift focus to customer delivery staff, train people to handle enquiries & food preparation
efficiently (ambience, look & feel less important)
 Cloud kitchens become more attractive (cost effective) as RM300, 000 to RM1 million to
set up physical restaurant.

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 SEIZING OPPORTUNITIES
 F&B operators responded by seizing opportunities using a combination of strategies
 Copper restaurant saw 80% drop in business and told employees to work from home. Flipped
the restaurant to serve medical frontliners supported by crowd funding. Made lunch and
dinner boxes supporting livelihood of employees, farmers & F&B ecosystem. Shift from fine-
dining to production-type product.
 Owner of Expressolab, a chain of speciality coffee outlets came up with two new products –
coffee sachets and Nespresso machine-compatible capsules delivered straight to consumers
houses
 Culinary arts students and chefs left without jobs did private dining – bringing the restaurant
to the customer
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 TRANSFORMING BUSINESS MODELS
 Siti Li Dining – pivot from traditional small, personal community restaurant to providing
packed food for delivery. In a short span of time the team learnt to take online orders, pack
the food and work with a third-party delivery partner. The team has picked up tech skills
and everyone from the kitchen crew to servers have digital roles in addition to duties at
restaurant.
 Cookhouse, the first co-sharing cloud kitchen help establish F&B players by offering cheaper,
faster set-up if they want to penetrate different market. Designed a 10,000 square foot space
with 5 private cooking studios, a shared co-cooking space that can facilitate Western & Asian
cooking and baking.
 kEATchen launched cloud kitchen for small street vendors who mostly derive their
livelihood from walk-in and dine-in customers. Provides a place for these vendors to prepare
their dishes and operate using a delivery-only model.
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If you start
feeling
like this .
IF YOU START
FEELING . .
LIKE THIS . . .

it’s MY fault! 29
TRY THIS EXCERCISE

 What are some changes in

consumer behavior observed in
Malaysia?
 How is this similar or different to
Indonesia?

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4. CONSUMER EXPERIENCE IN SOUTHEAST
ASIA

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 CUSTOMER
SATISFACTION

 Considering the disruption faced in

2020 across many industries, we might
have expected to see satisfaction levels
drop
 Consumers cross SEA consistently
rate their satisfaction with the
experience companies deliver.

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Source: APAC Consumer Trends 2021

WHAT IS DRIVING BUYING DECISIONS?

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  Buying decisions across Southeast Asia are influenced by
several factors:
 Product quality is a priority for customers
 Customer service is a differentiator for companies
 Not every market has the same appetite for low prices
WHAT IS  Customers will choose you or your competitor based on
your words and actions
DRIVING  While satisfaction, advocacy and trust has importance
BUYING individually, the power of a good experience shines
through when we look at them together
DECISIONS?

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HOW CUSTOMERS RATE SATISFACTION, TRUST AND
ADVOCACY BY INDUSTRY?

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HOW WILL CUSTOMER EXPERIENCES
CHANGE?
 Businesses are entering a reorient phase – where many
consumers are settling into patterns of behaviour that will
remain after all restrictions are lifted.
 The extent of change will vary across industry, some with a
bigger swing towards online while other slight shift back to
offline experiences.
 More transactional activities will continue trending online while
emotional activities will revert back to in person.
 Businesses must reposition their existing services, offerings and
capabilities to create forward looking operating norms designed
to improve customer experience.
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 HOW WILL THE BEHAVIOURS WE ADOPTED
DURING COVID-19 EVOLVE POST PANDEMIC?

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 HOW WILL THE BEHAVIOURS WE ADOPTED
DURING COVID-19 EVOLVE POST PANDEMIC?

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 Wish you
were
somewhere
else?

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TRY THIS EXCERCISE

 What is the biggest change in your

behavior as a consumer as a result
of COVID-19?

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5. CONSUMER BEHAVIOUR & DIGITAL
MARKETING

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  Restriction of foot traffic in malls and public spaces
affected many retailers
RESHAPING  14% increase in brand converting business online

THE
FASHION
INDUSTRY

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Source: Adqlo Life after Covid – How the retail industry is forever changed
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Source: Adqlo Life after Covid – How the retail industry is forever changed
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Source: Adqlo Life after Covid – How the retail industry is forever changed
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LEARNING IS
LESS LIKE A
MASSAGE…

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… AND MORE
LIKE EXERCISE.

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CONSUMER BEHAVIOUR IN MALAYSIA

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 MALAYSIANS ARE PESSIMISTIC ABOUT THEIR INCOME

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Source: IPSOS Market Context Q2 2021

 CHANGING SHOPPING BEHAVIOUR
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Source: IPSOS Market Context Q2 2021

E-COMMERCE
ADOPTION
IN MALAYSIA

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What have I left out?

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THAT’S ALL
FOLKS!!

QUESTIONS?

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