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Situation Analysis FYP1

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Table of Content 1 Project Overview 5 1.1 Introduction 1.2 Problem Statement and Issues 1.3 Objectives and Aims 2 Project Profile 8 2.1 Product Name 2.2 Product Classification 2.3 Product Characteristic 2.4 Product Range 2.5 Distribution 2.6 Product Life Cycle 2.7 The Brand 2.8 Brand Image and Implication 2.9 Strength and Weakness 2.10 Advantages and Disadvantages 2.11 Unique Selling Point (USP) 2.12 Promotional History and Advertising Schedule 2.13 Positioning Statement 3. The Company 14 1 | Page
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Page 1: Situation Analysis FYP1

Table of Content

1 Project Overview 5

1.1 Introduction

1.2 Problem Statement and Issues

1.3 Objectives and Aims

2 Project Profile 8

2.1 Product Name

2.2 Product Classification

2.3 Product Characteristic

2.4 Product Range

2.5 Distribution

2.6 Product Life Cycle

2.7 The Brand

2.8 Brand Image and Implication

2.9 Strength and Weakness

2.10 Advantages and Disadvantages

2.11 Unique Selling Point (USP)

2.12 Promotional History and Advertising Schedule

2.13 Positioning Statement

3. The Company 14

3.1 Company Overview

3.2 Business Description

3.3 Company History

3.4 Key People

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3.5 Location and Subsidiaries

3.6 Brands, Major Products and Services

3.7 Corporate Vision

3.8 Corporate Mission

3.9 Company Current Promotional Strategy

3.10 Product Sale's History

3.11 Current Marketing Objective

3.12 Media Expenditure

4 Consumer and Stakeholders 27

4.1 Current Consumer's Characteristic

4.1.1 Demographics

4.1.2 Psychographic

4.2 Stakeholder's Characteristics

4.2.1 Primary

4.2.2 Secondary

5 Industry and Marketplace 30

5.1 The Industry

5.1.1 Definition of the Industry

5.1.2 Shape of the industry

5.1.3 Development of the Industry

5.2 The marketplace

5.2.1 Current Condition of the marketplace

5.2.2 Changes in marketplace

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6 Competitive Situation 34

6.1 Direct Competitors

6.1.1 Ayamazz Roti Impit

6.1.2 Ayamas Frozen Food

6.1.3 Cathay Cineplex Hot Dogs

6.2 Indirect Competitors

6.2.1 McDonalds

6.2.2 KFC

6.2.3 Manhattan Fish Market

7 SWOT Analysis 41

7.1 Strength

7.2 Weakness

7.3 Opportunity

7.4 Threats

8 Strategic Target Audience 43

8.1 Proposed Primary Target Audience

8.1.1 Demographic

8.1.2 Psychographics

9 Research Development 45

9.1 Marketplace Research

9.2 Market Observation

9.3 Online Survey

9.4 Interview

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10 Precedent Studies 59

10.1 Advertising Strategy

10.2 Precedent Studies

11 References 71

12 Appendices 74

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Chapter 1: Project Overview

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1.1 - Introduction

1901 is a franchisor of fast food operations. They sells hot dogs as their main menu. 1901 also sells a variety of other foods such as fries, mash potatoes, burgers and drinks. 1901's main signature are their hot dogs, their most selling hot dogs are New York Chicken, Chicago Beef, Texas Ted, Coney Dog, Minnesota Bites and Deutsch Doodle Dang. Their sauce are made by them with their own signature ingredient to make the hot dogs taste as unique as possible.

Besides their popular hot dogs, 1901 also sells burgers which are quite tasty which is the Midwest Oval and the Classic Oval. Their burgers aren't the usual burgers we eat which is round in shape. 1901 burgers are oblong in shape and it not only looks different from other burgers it also taste as good as it looks. 1901 provides a variety of menus from topping bar sets, gourmet sets and even platters. The gourmet sets are different signatures kinds of hot dogs which are changed every month some of the new ones are Wild Wild West, Silenz of The Lamb, Ice Queen and Sate Riang.

Besides that they also sells drinks such as orange juice, pink guava, ice lemon tea, coke light, soya bean milk, milo, tea, chrysanthemum tea, mineral water and blackcurrant juice. 1901 hot dogs are low in calories as they are not grilled or cooked, it is instead steamed which is good for our health as it is less oily and greasy. 1901 has a lot of outlets in Malaysia which is around 70 in total whether it is from restaurants or push carts.

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1.2 - Problem Statement and Issues

Hotdogs aren't really one of the preferred food for Malaysians. It is not as famous as it is in America. 1901 hotdogs are healthy but they didn't really advertise to let people know about it. Their hotdogs are steamed and not fried. The set meals come with orange juice instead of normal soft drinks (you can only get Diet Coke here, no “full flavor” ones). 1901 hotdogs are low in calories compared to other hotdogs and they didn't really tell the customers about it, it could be a good selling point. Some other problem would also be that they have never mentioned how much calories we take per hotdogs. They said it's healthy yet they didn't tell us the amount of calories it has. When people think about hotdogs they will think it's expensive. But that is not the problem with 1901 hotdogs, their hotdogs are quite cheap as low as RM2.99 per hotdog(promotion price). People don't really know that 1901 hotdogs are cheap in price and tasty. Some other issue about 1901 Hot Dogs is that there is only some advertising done for it, the product does not push themselves in advertising to compete in the market.

1.3 Objective and Aims

Aim:

- The aim is to find a way or solution to let people know how cheap 1901 Hot Dogs is, at the same time making people know that hot dogs is an ideal food to eat on a daily basis.

- Using booth, television commercials and website to promote the product to increase public awareness of the product.

Objective:

- To find out the weakness and find the solution to solve it.

- Think of a new marketing strategy for 1901 which promotes more on daily consuming hot dogs(breakfast, lunch and dinner) and to let people know how affordable the hot dogs is.

- Think of a new way to advertise 1901.

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Chapter 2: Project Profile

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2.1 Product Name- 1901 (Nineteen O One)

2.2 Product Classification

Consumer

It is a fast food restaurant or stall where people can either choose to dine in or take-away at any time.

Non-durable

A fast food restaurant or stall that sells hot dogs, drinks, side dishes and many more which couldn’t last for a long time.

Convenient goods

Food beverages

Efficiency

Servers in a fast manner

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Hot Dogs Regular Price Great Price Drink Add-on Sauce Add-onNew York Chicken RM 5.90 RM 7.70 RM 1.00 RM 0.60Chicago Beef RM 5.90 RM 7.70 RM 1.00 RM 0.60Texas Ted RM 5.90 RM 7.70 RM 1.00 RM 0.60Coney Dog RM 6.50 RM 8.00 RM 1.00 RM 0.60Minnesota Bites RM 5.90 RM 7.70 RM 1.00 RM 0.60Deutsch Doodle Dang

RM 6.50 RM 8.00 RM 1.00 RM 0.60

Soakin' Ted RM 3.30 RM 4.20 RM 1.00 RM 0.60

Burgers Price Drink Add-onClassic Oval RM 6.60 RM 1.00Midwest Oval RM 6.60 RM 1.00

Drinks PriceOrange Juice RM 2.20Iced Lemon Tea RM 2.30Mineral Water RM 2.00Pink Guava RM 2.20Coke Light RM 2.20Bottled Mango Juice RM 3.00Bottled Blackcurrant Juice RM 3.00Milo RM 3.00

2.4 - Product Range

All products of hotdogs comes in 2 types which is regular or great size and packaged in a small box. (Refer 2.3)

Drinks varieties are available in orange juice, mineral water, iced lemon tea, mango, blackcurrant, pink guava, coke light and Milo. There is no medium or large sized drink. (Refer 2.3)

2.5 - Distribution

1. Direct

Prima Agri Products Manufacturing Sdn. Bhd. -> Franchises

2. Indirect

1901 Hot Dogs restaurant or cart stall are available in a total of 80 outlets around Malaysia. It is a unique restaurant which they will sell their own unique signature products and menus.

2.6 - Product Life Cycle

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2.7 - The Brand

The brand was formed in July 1997, which coincided with the National Hot Dog month in the USA. It is a bumiputera brand which is owned by two young entrepreneurs, Tengku Rozidar and Ahmad Zakir. The first outlet was located in Sunway Pyramid which is just a pushcart. To date, there is more than 80 outlets of 1901 Hot Dogs nationwide.

The brand has a tagline of 'food for friendship'. They treat their customers as friends with warmth & courtesy. Everyone is a friends and everyone can spend the quality time together at 1901. The brand also has its brand value which is love, peace and harmony. The mission and vision of 1901 will be meaningless without practicing these key values of the brand. They are an inherent part of 1901. Not only do they believe and internalize these values, but they also strive to externalize them to their stakeholders.

They sells hot dogs as their main menu. 1901 also sells a variety of other foods such as fries, mash potatoes, burgers and drinks. 1901's main signature are their hot dogs, their most selling hot dogs are New York Chicken, Chicago Beef, Texas Ted, Coney Dog, Minnesota Bites and Deutsch Doodle Dang. Their sauce are made by them with their own signature ingredient to make the hot dogs taste as unique as possible.

2.8 - Brand Image and Implication

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1901 Hot Dogs brand image is as the tagline says 'food for friendship'. They treat their customers as friends with warmth & courtesy. Everyone is a friend and everyone can spend their quality time together at 1901. That is the image that is shown by the brand. They sell hot dogs as their signature menu and is similar to Ayamazz Roti Impit, Viking Hotdogs and others.

Market share among the competitors

Competitors Market ShareAyamazz Roti Impit With over 28 outlets around Malaysia. Most stalls are available in Kuala Lumpur

and Selangor .Cathay Hot Dogs Available in eCurve Petaling Jaya and Johor BahruMBO Hot Dogs Available in 26 MBO cinema all around MalaysiaTGV Hot Dogs Available in 20 cinema all around Malaysia.Ayamas Hot Dogs Available in many mini mart, hypermarket, ayamas shop, and shopping malls for

everyone to buy and cook the frozen food at home.Farms Best Hot Dogs Available in many mini mart, hypermarket and shopping malls for everyone to

buy and cook the frozen food at home.

2.9 - Strength and Weakness

Strength

Serve a variety of hot dogs that is unique and not available elsewhere in other fast food or hot dogs stalls around Malaysia.

The buns and sausages are steamed and low in calories. Also serve burgers rather than hotdogs with a variety of drinks to choose from. As low as RM 10 per meal.

Weakness

Doesn't stand out as much as other fast food restaurant like Mc Donald's, KFC and other restaurants(competitors in market).

Can only be bought at 1901 stalls and GSC Cinema, unlike frozen food which could be cooked at home.

Does not advertise about their products that much on TV.

2.10 - Advantages and Disadvantages

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Advantages Available in almost all popular malls and Golden Screen Cinemas in Malaysia. Available to be taken-away or eaten at the restaurant. Open new branches in popular places in Malaysia and are also available in Internationally

in Arab Saudi, China Open new outlets in other states of Malaysia which will improve their sales.

Disadvantage

Easily replaced with other fast food brands like MCD, KFC and others. Competitors in the market Health concerns among the general public

2.11 - Unique Selling Point (USP)

The unique sweet relish as well as custom blend sauces - each created to satisfy the taste of discerning consumers. A variety of Hot Dogs ala US style hot dogs which comes in a variety of taste which is unique compared to other hot dogs.

2.12 - Promotional History and Advertising Schedule

Date Promotion / AdvertisingNovember 15 2011 Purchase a Purple Hugs, and every purchase RM1 will be donated to NASOMSeptember 2009 Aidilfitri Promotion. Hotdogs with Pau Bun for RM 6.50March 2009 4 Soakin' Ted for RM1011-31 December 2008 Hot Dog for only RM2.99May 2008 TVC on TV 'Food for FriendshipEvery month on the 19th New York Chicken and Chicago Beef for RM 2.99

2.13 - Positioning Statement

1901 Hot Dogs produce delightful and high quality hot dogs with a unique variety of menus to ensure a high taste preference with the unique sweet relish as well as custom blend sauces - each created to satisfy the taste of discerning consumers that is targeted on the age of 16 to 25.

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Chapter 3: The Company

3.1 - Company Overview

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The name Nineteen O One Sdn Bhd, the franchisor company, bears the year the term “hot dog” was born St Louis, Missouri, USA in 1901. Formed in July 1997, it coincided with the National Hot Dog month in the USA.

The company is the global franchisor for the 1901 Hot Dog and a registered franchisor with the Ministry of Entrepreneur and Cooperative Development (MECD). 1901 hot dogs are “Halal” certified and cater to all walks of life. This local born franchise has grown by leaps and bounds, and from strength to strength to become a premier fast food brand in the country.

Possessing a true entrepreneurial spirit, as well as being visionary and future focused, the founding members comprising husband and wife team of Tengku Rozidar Tengku Zainal Abidin (CEO) and Ahmad Zakir Ja’afar (ED), have propelled the company from its humble beginning of a single pushcart in Sunway Pyramid, to a total of more than 80 outlets today.

1901 sells from a variety of hot dogs. Some of their signature hot dogs are the New York Chicken, Chicago Beef, Texas Ted, Coney Dog, Minnesota Bites and Deutsch Doodle Dang. Not only do they sell hot dogs but they also sell some burgers such as Midwest Oval and Classic Ovals.

3.2 - Business Description

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1901 franchise concept offers a full business format franchise, reasonable startup investment and relatively easy franchise to manage and the outlets are located in most major shopping centers nationwide. Franchisee can expect a reasonably quick return of investment, depending on the outlet’s performance. At this moment, there are two different outlet formats to suit the franchisee’s budget and preference which is the pushcart and snack cafe. These formats have been developed to make it easy for franchisees to manage and operate the business. Besides to make it even easier to run the business, 1901 provides franchisees comprehensive training programme and guides them all the way - from business planning and financing to training and marketing. 1901 comprehensive training program and thorough documentation of their operating system make it easy to run their franchise. All 1901 require is the franchisee’s commitment and lots of enthusiasm.

At 1901 they make food that we feel good about serving to their customers. They only use quality meats cuts in their frankfurters. 1901 offer wide variety of tasty garnishes; wholesome, old fashioned goodness made of high quality ingredients. 1901 are a strong believer in moderate eating and providing their customers healthier choices. For instance, 1901 hot dogs are steamed - preserving the texture and flavor, while keeping them healthier. They also use low fat alternatives for their sauces and toppings. They prepare their hot dogs with care and responsibility; with special attention to quality ingredients and hygiene.

1901 treats their customers as friends, with warmth & courtesy. They endeavor to foster a long term relationship and to inspire them to embrace their values which is love, peace and harmony. As for their shareholders they provide a platform for them to contribute towards a greater good. They invest responsibly and with integrity while striving to offer our shareholders reasonable return of investment.

3.3 - Company History

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It was at the height of the Asian Financial Crisis. The country was reeling from the impact. Belts were tightened and many businessmen took conservative routes to ride the crisis over. In the midst of this turmoil, two young entrepreneurs, Tengku Rozidar and Ahmad Zakir, set up the first ever hot dog store in Sunway Pyramid, Malaysia. The rest, as they say, is history. From the first pushcart, 1901 now has grown by leaps and bounds with over 70 outlets by 2007.

For Tengku Rozidar and Ahmad Zakir, 1901 is the culmination of their dream. They believe that many fellow Malaysians would like to run their own business, just like they do. Therefore they decided to set up a franchise and make it affordable. That way, people who aspire to run their own business could pursue the dream. On the other hand, the design of pushcarts and stores were reminiscent of America’s hot dog stores. The approach was so successful that for a long time, many people had thought that 1901 is an American hot dog chain. The company have won a few awards like 'The Most Promising Franchisor of the Year for 2000/2001' by the Malaysian Franchise Association and Consumer Superbrand 2003/2004

For the founders, the success they have achieved is just a beginning. Now, they set their sight to soar to new heights.

3.4 - Key People

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Tengku Rozidar Tengku Zainal Abidin (CEO)

Ahmad Zakir Ja’afar (ED, Co-Founder)

Afzan Adenan (Brand Manager)

Raymond (Marketing Manager)

3.5 - Location and Subsidiaries

Headquarter:

No 3, Jln Keluli 15/16,

Off Jln Persiaran Selangor,

Seksyen 15, 40200 Shah Alam,

Selangor, Malaysia.

3.6 - Brands, Major Products and Services

1901 provides service to dine-in or take-away 6 different categories of products is provided which is hot dogs, gourmet sets, platters,

burgers, drink and topping bar sets. Franchises

3.7 – Corporate Vision

To build a world where everyone is a friend

3.8 – Corporate Mission

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Customers- We treat our customers as friends - with warmth & courtesy. We endeavor to foster a long term relationship and to inspire them to embrace our values.

Our Food- We prepare our hot dogs with care and responsibility; with special attention to quality ingredients and hygiene.

Our Outlets- We operate centers where friendships are built and fostered. We communicate our values in a friendly, safe and hygienic environment.

Our Buddies- As employees, we are called buddies. As buddies, we are encouraged to do our best at all times and unleash our full potential. We treat one another as friends, while maintaining a high standard of professionalism. We propagate our values by touching and inspiring people around us through our thoughts and actions.

Our Franchisees- We aim to support our franchisees to the best of our ability in a symbiotic and respectful relationship so that they can prosper economically and responsibly. Our franchisees are our ambassadors. They touch and inspire people around them through their thoughts and actions.

Our Business Partners- We treat our Business Partners with fairness and integrity. We aim to maintain a long-term relationship and prosper together.

Our Community- We strive to encourage our community to foster the spirit of friendship. We express our opinion, as well as lead, support and participate in activities with the aim to protect and enhance the well-being of our community.

Our Shareholders- We provide a platform for them to contribute towards a greater good. We invest responsibly and with integrity while striving to offer our shareholders reasonable return of investment.

3.9 - Company current Promotional Strategy

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Every 19th of each month, 1910 will discount their Chicago Beef and New York Chicken for only RM2.99 instead of the normal price which is RM5.90

Date Promotion / AdvertisingNovember 15 2011 Purchase a Purple Hugs, and every purchase RM1 will be donated to NASOMSeptember 2009 Aidilfitri Promotion. Hotdogs with Pau Bun for RM 6.50March 2009 4 Soakin' Ted for RM1011-31 December 2008 Hot Dog for only RM2.99May 2008 TVC on TV 'Food for FriendshipEvery month on the 19th New York Chicken and Chicago Beef for RM 2.99

3.10 - Product Sales' History

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The above information was provided by Suruhanjaya Syarikat Malaysia

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3.11 - Current Marketing Objective

Short Terms Objective- Remain profitable, maintain brand recognition, brand loyalty, customer satisfaction, and generate new customers.

Long Term Objective- Additional distribution channel (franchises) marketing and owner satisfaction.

3.12 - Media Expenditure

Website

The use of websites where they promote they brand, menus and franchise . They also use their websites to talk more about their goals, mission, brand value, headquarters location and others.

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Facebook Page

Using Facebook to talk about current events, promotions and sharing positive feedbacks of what they get from customers. Besides that they also provide customer support.

Twitter

Similar to the facebook page the twitter fan page is to talk about current events, promotion, sharing positive feedbacks and other important stuff from the company.

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1901 selling and sponsoring in events

1901 sells and promote their hot dogs at events that happened 3 years ago at the FIA Asia Pacific Rally Championship in April.

1901 also sells, promote and sponsor in an event in Putrajaya Shape & Men's Health Run in 2009 and also in Taman Tasik Perdana in 2008.

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1901 at Twestival KL where they serve 1901 Hot Dogs for free in an event about single mothers & children living with HIV/AIDS.

Food for the Homeless 1901 Event

1901 made an event to give free food to the homeless, with lots of people volunteering they were able to give food to the homeless people and urban poor in the street of Kuala Lumpur.

Print ads and digital media advertising

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1901 also promotes designers to advertise on printed media as well as digital media on the internet.

Television Commercials

1901 also advertise their products in television commercial to increase their sales and brand awareness.

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Chapter 4: Consumers and Stakeholders

4.1 - Current Consumer's Characteristic

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4.1.1 Demographics

Primary

Age Teenagers and Adults from 16-40 years oldGenders Male and femaleEducation High School, College, UniversityOccupation Student, White Collar Workers, Blue Collar WorkersAllowance range RM500 - RM1000 or moreRace & Ethnicity AllGeographic Location Urban area

4.1.2 Primary Psychographics

Perception People who loves to eat western food especially hot dogs.

People who loves to have a healthy menu which is low in calories and steamed instead of deep fried or cooked.

Served fast and hotLearning Internet, friends, peers and family members.Motivation and needs Something that is fast and hotly fresh

Low in calories and not so expensive and yet delicious

A place to spend time with friends and family while eating the food they love.

Attitude On the go, western food lovers, money saver, impatient, loves to hangout

Personality Trendy lifestyle, up to dateLifestyle Active, always on the go, student, family

oriented and social

4.2 - Stakeholder's Characteristics

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4.2.1 Primary Executive Director, CEO, Co-founder & Owner | Ahmad Zakir Bin Ja'afar

To implement the strategic goal and objective of the organization

Co-founder & Executive Chairman | Y.M. Tengku Rozidar binti Tengku Zainal AbidinSet the agenda, style and tone of board discussion to promote constructive debate and effective decision-making

Board of Directors | Shahrul Azlan Bin Mohd Zulkifli and Mohd Taib Bin AliDirecting the employees of the company to achieve the organization goal

Shareholders- Ahmad Zakir Bin Ja'afar Total of Share: 464,825- Y.M. Tengku Rozidar binti Tengku Zainal Abidin Total of Share : 477,675- Malaysia International Franchise Sdn. Bhd. Total of Share : 2,687,000

Develop and maintain business model by investing money to the company in interest of a share on its profit

Employees- Afzam Adenan as Brand Manager- Raymond Yap as Marketing Manager- Stephen A/L A F Pereira as Secretary

Improving professional skills through specialized training and specifically guided experience

4.2.2 Secondary Market place

Product's availability for sale in the marketplace

Distributors | Prima Agri Products Manufacturing Sdn. BhdAids the distribution of the goods produced while earning from the service provided

MediaHelp spread the news of the brand regarding new promotion, latest news and more.

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Chapter 5: Industry and Marketplace

5.1.1 - Definition of the Industry

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Fast Food IndustryFast food is the term given to food that can be prepared and served very quickly. While any meal with low preparation time can be considered to be fast food, typically the term refers to food sold in a restaurant or store with preheated or precooked ingredients, and served to the customer in a packaged form for take-out/take-away. The term "fast food" was recognized in a dictionary by Merriam–Webster in 1951.

Outlets may be stands or kiosks, which may provide no shelter or seating, or fast food restaurants (also known as quick service restaurants). Franchise operations which are part of restaurant chains have standardized foodstuffs shipped to each restaurant from central locations

5.1.2 - Shape of the industry

Malaysia’s food industry is as diverse as the multi-cultures of Malaysia, with a wide range of processed food with Asian tastes. The food processing industry is predominantly Malaysian-owned. It is estimated that the present global retail sales in food products are worth around US$3.5 trillion, and are expected to grow at an annual rate of 4.8 per cent to US$6.4 trillion by 2020.

Malaysia remains a net importer of food in 2011 (RM34.5 billion). Major food imports were cereals and cereal preparations (RM7.2 billion), vegetables and fruits (RM4.2 billion), cocoa (RM3.6 billion), sugar and sugar confectionery (RM3.4 billion) and animal feed (RM2.8 billion). Raw materials such as cereals and dairy products continue to be imported for further processing. In 2011, Malaysia exported food products worth RM20.6 billion to more than 200 countries, of which, processed food contributed about RM13.5 billion. The main exports were cocoa and cocoa preparations (RM3.8 billion), prepared cereals and flour preparations (RM1.6 billion) and margarine and shortening (RM1.3 billion). Major export destinations were Singapore, the USA, Indonesia and Republic of China.

The Malaysian food industry is dominated by small and medium scale companies. The major sub-sectors are the fish and fish products, livestock and livestock products, fruits, vegetables and cocoa. The fisheries product’s sub-sector includes processed seafood products such as frozen and canned fish, crustaceans and molluscs, surimi and surimi products. This sub-sector is export oriented and remains the main contributor to the exports of processed food.

5.1.3 - Development of the Industry

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Malaysia's food industry is a big market which combines manufactures, supplier international trades' foods exporter, and distributor. Malaysia is currently the largest cocoa processor in Asia. Although Malaysia is the world’s fifth largest cocoa producer, local cocoa bean production could not support the huge demand from local grinding and processing industry. Most of the cocoa beans are imported.

Malaysia is also a major producer of spice, being the world's sixth largest exporter of pepper and pepper-related products. Agriculture is one of the sectors identified in the National Key Economic Areas (NKEAs). It focuses on selected sub-sectors including aquaculture, seaweed farming, swift let farming, herbal products, fruits and vegetables and premium processed food which have high-growth potential. There is a growing demand for these high value products which provide opportunities for farmers to increase their income. In addition, the paddy and livestock sub-sectors were also selected due to their strategic nature in ensuring national food security.

Increasing consumer awareness in nutrition value and food fortification for healthcare has created the demand for functional/healthy minimally processed fresh food, organic food and natural food flavors from plants and seafood. Functional/health food produced in Malaysia is mainly in the form of food products that are enriched. Food ingredients such as customized formulations required by food manufacturers, natural food additives and flavors have the potential for further growth.

The halal industry in Malaysia provides immense opportunities for Malaysian manufacturers. It was estimated that the potential value of the halal food industry range between USD600 billion and USD2.1 trillion. The concept of halal is associated with food products which are of high quality in terms of cleanliness, sanitation and compliance with religious requirements.

Malaysia’s food manufacturer can contemplate joint-ventures with established food manufacturer’s particularly from Australia and New Zealand to service the ASEAN, Middle East, European and US markets which have sizeable Muslim populations. Local halal food products can gain easy access into these halal markets as Malaysia’s halal certification is globally recognized.

5.2 - The Marketplace

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5.2.1 Current condition of the marketplace

Nowadays most of the people are undergoing tight schedule in their daily life style over their work, school work and this makes the current condition of fast food marketplace to become better and more beneficial. They rather eat fast food as it save time rather than cooking at home which takes time to prepare.

5.2.2 Changes in marketplace

Positive point

People could not resist the good taste of fast food Fast food is a timer saver for those who are on the go and busy.

Negative point

Animal walfare issues Health problem

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Chapter 6: Competitive Situation

6.1 - Direct Competition

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6.1.1 Ayamazz Roti Impit

Market Place With over 28 outlets around Malaysia. Most stalls are available in Kuala Lumpur and Selangor .

Product Features Serve hotdogs with other signatures such as Pasta, Fettuchini, Spaghetti, Bubble Drinks and Snacks.

New Products Pasta Combo

Positioning Creative and healthy menus for all. To provide the best snack food that is tasty and affordable.

Current and Past Advertising Campaign

N/A

6.1.2 Ayamas Frozen Food

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Market Place Available in many mini mart, hypermarket, ayamas shop, and shopping malls all around Malaysia

Product Features Frozen food for instant cooking

New Products Ayamas Poppers

Positioning Nutritious and tasty, ready to eat food for convenient takeaway, ready-to-cook frozen products. High quality branded chicken that is hygienically processed and packed. Their new tagline First in Freshness,First in Quality

Current and Past Advertising Campaign

Current: Ayamas & You Fiesta! Roadshow at Aeon Big Alamanda. Win a mystery gift with every purchase of RM10 and above in 1 receipt.

Past: Ayamas & You Fiesta! Roadshow at Aeon Big Wangsa Maju. Win a mystery gift with every purchase of RM10 and above in 1 receipt.

Bubur Lambuk Dihatiku Bersama Chef Wan

6.1.3 Cathay Cineplex Hot Dog

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Market Place Available in Cathay Cinema which is located in e@Curve, Damansara and City Square, Johor Bahru

Product Features Serve hotdogs with their signature popcorns and soft drinksNew Products Despicable Me 2 Combo

Positioning To provide the best movie experience for each and every customer

Current and Past Advertising Campaign

Current: Free Burger King Voucher with every Ramadhan Combo purchase.

Past:Jumbo Hot Dog Tuesday - Enjoy an ala carte Jumbo Hot Dog @ RM5.50 only

Popcorn Wednesday - Enjoy Free refill of popcorn when you purchase of popcorn

Pepsi Monday - Enjoy a FREE Small Pepsi when you purchase a cup of soft drink

6.2 - Indirect Competitor

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6.2.1 McDonald's

Market Place There are more than 200 restaurants located nationawide and is currently expanding at about 20-25 restaurant's anually.

Product Features McChicken, Breakfast, Happy Meals, Desserts, Beverages and Mc Value Meal

New Products Smokin' BBQ McChicken

Positioning McDonald's mission us to be our customers' favouriute place and way to eat - with inspired people who delight each customer with unmatched quality, service, cleanliness and value every time.

Current and Past Advertising Campaign

Current: Samurai Burger is back TVC in TV.

Past: McValue Dinner Set TVCSmokin' BBQ McChicken TVCSpicy Chicken McWrap TVC

6.2.2 KFC

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Market Place There are more than 500 outlets nationwide and still counting.

Product Features Original recipe friend chicken that contains secret blends of 11 herbs and spices

New Products Spicy Korean Burger

Positioning To be the leading integrated food services group in the ASEAN group which serves consistent quality products and excellent customer-focused service.

Current and Past Advertising Campaign

Current:

KFC Spicy Korean Burger TVC in TV.

Past:

Spicy Korean Crunch TVCKFC Breakfast TVCKFC Golden Wrap Chicken TVC

6.2.3 The Manhattan Fish Market

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Market Place Manhattan Fish Market reputation still remains intact as one of the largest wholesales fish markets in the world over the past few years

Product Features Features starters, soups, salads, pasta, manhattan favourites, sharing platters, desserts and beverages

New Products None

Positioning Having meals in a special skillet. Be pampared by the ultra-fi service. Each dining experience with Manhattan is just simply fabulous.

Current and Past Advertising Campaign

Current: -Purchase any meal at RM 16.90 to get a free soup of the day and bottomless fizzy drinks

Past:-Discounts voucher

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Chapter 7: SWOT Analysis

SWOT Analysis

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7.1 Strength A wide variety of choices to

choose from, from hotdogs to burgers and others.

Unique hot dogs with their own signature like Spicy Bavarian

Freshly steamed and low in calories

Available in all GSC Cinema

7.2 Weakness Do not advertise their products in

television like others do High in price if it's not on

promotion Unhealthy perception of products

7.3 Opportunity Hari Raya Puasa Promotion Selamat Hari Raya Promotion FIFA World Cup 2014 1Malaysia

7.4 Threats Competitors in the market High rise of food cost Word of mouth Bad rumors

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Chapter 8: Strategic Target Audience

8.1 Primary Target Audience

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8.1.1 Demographics

Age Teenagers and Adults from 16-25 years oldGenders Male and femaleEducation High School, College, UniversityOccupation StudentAllowance range RM250 - RM1000 or moreRace & Ethnicity AllGeographic Location Urban area

8.1.2 Psychographics

Perception People who loves to eat western food especially hot dogs.

People who loves to have a healthy menu which is low in calories and steamed instead of deep fried or cooked.

Served fast and hotLearning Internet, friends, peers and family members.Motivation and needs Something that is fast and hotly fresh

Low in calories and not so expensive and yet delicious

A place to spend time with friends and family while eating the food they love.

Attitude On the go, western food lovers, money saver, impatient, loves to hangout

Personality Trendy lifestyle, up to dateLifestyle Active, always on the go, student, family

oriented and social

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Chapter 9: Research Development

9.1 Marketplace Research

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1901 Hot Dogs Subang Parade

In order to know more about the marketplace of my research, I decided to visit the 1901 Hot Dogs stalls in the Subang Parade Shopping Mall at Subang Jaya. The stall where small and only a few people could sit there and eat there. The stall where nicely designed with colorful colors and included in the stall are their themes which is 'Food for Friendship'. They also included the campaign which they are doing which is 'respect our differences' which includes the theme of love, peace and harmony. There was a few indirect competitors nearby which is Kenny Rogers Roasters and Boost Juice.

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1901 Hot Dogs Sunway Pyramid

Another marketplace research was conducted about 1901 Hot Dogs, this time it is at Sunway Pyramid where compared to the one in Subang Parade which is only a small stall, this one on the other hand is a small restaurant with more chairs and tables where more people could eat. The theme is the same as the one in Subang Parade which is 'Food for Friendship'. They also included the campaign which they are doing which is 'respect our differences' which includes the theme of love, peace and harmony.

9.2 Market Observation

Each marketplace that I've been to, have been observed for 2 hours, which in total is 4 hours when combined with 1901 from Subang Parade and Sunway Pyramid. Both are quite similar in the numbers of people interested in it but the difference is how many decided to dine and eat there or take-away their hot dogs.

Since the 1901 Subang Parade stall are small and has less space to eat most of the customers who bought it decided to take-away their food and eat it on the go. There are of course some who

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decided to eat there too. The amount of those who take-away their hot dogs is 4/5 out of those who decided to eat there. Most of those who bought it just bought the hot dogs and not their drink or their sets of meals. The customers also just bought the regular size 1901 Hot Dogs instead of the great size hot dogs. The most picked hot dogs that they choose are New York Chicken and Chicago Beef. The information of the most picked was not fully observed by me as I was not able to see most of what they picked. The worker who works at the store was kindly enough to answer my question when I ask her which hot dogs they ordered in the duration of that 2 hours. Most of those who passed by and decided to stop by at the stall are 1/5.

On to the next one which is the 1901 in Sunway Pyramid. The restaurant was bigger than the one from Subang Parade thus more people eat there compared to Subang Parade 1901. Although the amount of people eating there increase, the amount of people taking-away their hot dogs increase as well. The population of shoppers in Sunway are more, compared to Subang Parade. The amount of those who take-away their hot dogs are as the same as from Subang Parade which is 4/5, out of those who decided to eat there. Those who bought their hot dogs also didn't buy the meal set or drinks when buying their hot dogs when they take-away. The regular size 1901 Hot Dogs are also chosen more compared to the great size hot dogs. Surprisingly the most picked food in this restaurant was not really the hot dogs but the burger which is the Midwest Oval. The New York Chicken and Chicago Beef are also among the favorites. The amount of those who passed by the restaurant and decided to stop by is around 2/5.

9.3 Online Survey

A online survey was conducted on the 6th to 7th of July 2013 with a total of 30 participants. This survey is created to know more about the customers whether they know about the brand and its selling point, the customers behavior, customers profile and the customers perception towards 1901 Hot Dogs. The survey question and results are shown as below:

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12; 40%

18; 60%

Question 1. Your gender?

MaleFemale

This question is to know the gender of each participants. Result shows that 40% of them are males and 60% of them are females out of 30 participants.

26; 87%

3; 10%1; 3%

Question 2. Your age range

17 and below17-2526-3031-40

The question is to investigate the age range of each participants. The pie chart shows that 26 of the participants are at the age range of 17-25 years old which covers 87% of the pie chart. 3 of them are at the age of 26-30 which cover 10% of the pie, 1 of them are at the age of 31-40 which only covers 3% of the pie chart and none of them are at the age range of 17 and below.

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17; 57%8; 27%

5; 17%

Question 3. Your ethnic group?

MalayChineseIndianOthers

This question is to find out the ethnic group of each participants. Readings shows that 56% of them are Malay, 27% of them are Chinese, 17% of them are others ethnics and none of them are from Indian.

30 100%

Question 4. Your occupation

StudentWhite Collar WorkersSelf-employed

This question is to figure out the occupation of each participant. The pie chart shows that 100% of the are student and none of them are from white collar workers or self-employed.

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14; 47%

9; 30%

6; 20%1; 3%

Question 5. Average range of monthly allowance/income?

Below RM 500RM 500 - RM 1000RM 1000 - RM 3000RM 3000 and above

This question is to investigate the average range of monthly allowance or income. The most percentage shown is 47% which is below RM500. The 2nd most is at 30% which is at the range of RM 500 - RM 1000 with 9 participants, 20% of them are at the range of RM 1000 - RM 3000 and 3% of them which is only 1 participant are at the range of RM 3000 and above.

30; 100%

Question 6. Do you eat fast food?

YesNo

The question is to investigate whether the participants eat fast food or not. Pie chart shows that all of the students out of the 30 participants eat fast food which covers the whole 100% of the pie chart.

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17; 63%

8; 30%

2; 7%

Question 7. How many times per week do you eat fast food?

012345

A question was asked about the number of times per week each of the participants eat fast food. Result shows that 57% of them only eat once per week, 27% of them eat two times per week and 7% of them eat more than 5 times per week. 0% of them choose 0, 3 or 4 times per week.

24; 37%

11; 17%

20; 31%

3; 5%

3; 5%

4; 6%

Question 8. What are your reason for choosing fast food meals?

FastPriceTasteCleanlinessDiscountsValue for money

This question is a question where participants can tick more than one answer. The question is to investigate the reason why they choose fast food meals. 37% of them choose it because it is served fast, 31% of them because of its taste, 17% of them are because of the price, 6% of them are because of their value for money, 5% of them are because of cleanliness and another 5% of them are because of discounts.

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21; 70%

9; 30%

Question 9. Have you ever heard about 1901 Hot Dogs before?

YesNo

This question is to know whether the participant have heard about 1901 Hot Dogs or not. Answer shows that out of the 30 participant, 21 of them has heard about 1901 Hot Dogs which covers 70% of the pie chart and 9 of the others don't know 1901 Hot Dogs before which covers 30%.

6; 26%

17; 74%

Question 10. If Yes, how do you know about 1901 Hot Dogs?

Print AdsFamily and FriendsTelevision CommercialRadioThe Internet

Base on the previous question if the participants answers yes they are given an option how do they know about 1901 Hot Dogs. Base on the pie chart most of them know from family and friends which covers 74% of the pie chart and some from print ads which cover 26 percent of the

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pie chart. As for television commercial, radio and internet none of them know 1901 Hot Dogs from there.

2; 7%

28; 93%

Question 11. Do you know that 1901 Hot Dogs are low in calories?

YesNo

The question is to study whether the participant knows that 1901 Hot Dogs are low in calories or not. Answer shows that most of them don't know that 1901 Hot Dogs are low in calories which covers 93% of the pie chart. Only 7% of them know it is low in calories.

1; 3%

25; 83%

4; 13%

Question 12. Do you think 1901 Hot Dogs are

CheapAffordableExpensive

This question was asked to know whether the participant thinks the 1901 Hot Dogs are cheap, affordable or expensive. Most of them think it is affordable which covers 83% of the pie chart

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while others think it is expensive at 4% of the pie chart. 3% of them think it is cheap which is only 1 participant in total.

10; 33%

18; 60%

2; 7%

Question 13. 1901 Hot Dogs are range between RM 2.99 - 6.99 per hot dogs

It's CheapAffordableStill Expensive

Base on the previous question, I asked the question again from the participant but this time stating the price of the hot dog. The pie chart shows that 33% of them think it's cheap, 60% think it's affordable and 7% of them think it's still expensive.

2; 7%

13; 43%

7; 23%

8; 27%

Question 14. How often do you buy 1901 Hot Dogs?

Quite OftenSometimesWhen there is a promotionWhen I visit the shopping mall

The question is to study how often the participants buys a 1901 Hot Dogs. The pie chart shows that most of the participants buy them sometimes which covers 43% of the pie chart, 27% of

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them buys it when they visit the shopping mall, 23% of them buys it when there is a promotion and 7% of them buy them quite often.

18; 60%

8; 27%

3; 10%1; 3%

Question 15. Why do you buy 1901 Hot Dogs?

It's deliciousA variety of choicesGreat servicesGreat promotionLow in calories

The question can be answers can be ticked more than once. The question is to study why 1901 Hot Dogs where bought. The pie chart shows that a majority of them thinks it is delicious which cover 60% of the pie chart while 27% of them think it has a variety of choices. 10% of them thinks it has great promotion and 3% of them thinks it is low in calories. None of them have chosen great services.

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15; 19%

18; 23%

5; 6%5; 6%

20; 26%

14; 18%

Question 16. How would you like to know more about 1901 Hot Dogs

Print AdsTelevision commercialRadioThe internetBooth PromotionSocial Media

This question was asked to know more how the participants wants to know more about 1901 Hot Dogs. 26% of them thinks it should be on booth promotions, while 23% of them think it should be on television commercial, 19% on print ads, 18% on social media, 6% on radio and another 6% on the internet.

9.4 Interview

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Due to some information being hard to obtain on the Internet, magazine and books; I had arranged an interview with the director of 1901 which is Mr. Mohd Taib Bin Ali. I was able to get some information from him about 1901's share capital, their directors and officers, shareholders/members, summary of financial information and their company vision and mission.

Below are one of the email that was replied by the company.

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Chapter 10: Precedent Studies

Precedent Studies

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10.1 - Advertising Strategy

i. Current advertising strategies in promoting 1901 Hot Dogs

ii. Previous advertising strategies in promoting 1901 Hot Dogs

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Television commercial

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10.2 Precedent Studies

10.2.1 1901 Hot Dogs

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10.2.2 Ayamazz Roti Impit

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10.2.3 Ayamas Frozen Food

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10.2.4 Cathay Cineplex Hot Dog

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10.2.5 McDonald's

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10.2.6 KFC

10.2.7 The

Manhattan Fish Market

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+

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Chapter 11: References

References

1901's Information

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1901 official website. [Online] Retrieved from http://www.1901.com/product_home.asp 1901 Facebook page. [Online] Retrieved from https://www.facebook.com/1901HotDogs 1901 Twitter account. [Online] Retrieved from https://twitter.com/1901HotDogs Ahmad Zakir Ja’afar Linkedln account. [Online] Retrieved from

http://my.linkedin.com/in/zakirjaafar Where Capital and Business Meets. 1901 Franchisor Information. [Online] Retrieved

from http://www.capital.com.my/maincenter/index.php?option=com_content&task=view&id=617

Suanie. (2009). www.suanie.net. 1901 hot dogs food business with a big heart. [Online] Retrieved from http://www.suanie.net/2009/08/27/1901-hot-dogs-food-business-with-a-big-heart/

Industry and Market Information

Habibah Abdul Talib and Khairul Anuar Mohd Ali (2009) www.scialert.net The opportunity and quality aspects. [Online] Retrieved from http://scialert.net/abstract/?doi=pjn.2009.507.517

Malaysian investment development authority official website. (2012). www,mida.gov.my. Industries in Malaysia. [Online] Retrieved from http://www.mida.gov.my/env3/index.php?page=food-industries

Shahrul Azlan (2010) www.slideserve.com Experience in SME Franchise Financing. [Online] Retrieved from http://www.slideserve.com/arich/presented-by-shahrul-azlan-mohd-zulkifli-head-of-investment-division-perbadanan-nasional-berhad-pns

Competitor's information

Ayamazz Roti Impit official website. Menus and marketing. [Online] Retrieved from http://www.frankbuns.com.my/

Ayamas Frozen Food official website. Frozen Products. [Online] Retrieved from http://www.kedaiayamas.com.my/frozen.html

Cathay Cineplexes official website. Food and Beverage. [Online] Retrieved from http://www.cathayholdings.com.my/

Indirect competitor's information

McDonald's Malaysia official website. Menus and marketing. [Online] Retrieved from http://www.mcdonalds.com.my/

Wikipedia the free encyclopedia. McDonald's market share. [Online] Retrieved from http://en.wikipedia.org/wiki/McDonald%27s

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KFC's Malaysia official website. Menus and marketing. [Online] Retrieved from http://www.kfc.com.my/main.php

Manhattan Fish Market official website. Menus and marketing. [Online[ Retrieved from http://www.manhattanfishmarket.com/main.html

Online Survey

Google doc. Burger King Survey form. [Online] Retrieved from https://docs.google.com/forms/d/1qMXFh9HmEmUywQh8odD6rYgUm3mS_KRG-gXusu1Vgc4/viewform

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Chapter 12: Appendices

Online Survey Questionnaires

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Online Survey Result

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