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SWOT Analysis

Extracts from this document...

Introduction

2.0 Introduction 2.1 Purpose of the Report * To identify the weaker company between Yeo Hiap Seng (M) Bhd and F&N Coca-Cola (M) Sdn Bhd. * To identify the strengths and weaknesses in the current marketing strategy and compare with the competitors. * Recommend marketing strategies to improve market growth of the weaker company. 2.1 Method of analysis The theory which stated in this report is based on Kotler and Keller (2006). Beside that, the others information which had been used in this report are: annual report for the two compaies (YHS Company and F&N Company), financial report, newspaper ( The Star) and companies website. 2.2 Structure of the Report The scope of the project is based on YHS Company with the two key areas of the marketing activity which are: Product Mix of the company and Marketing Communications. This report gives an overview of the YHS (M) Bhd and followed by an outline of each competitor's strengths and weakness. Recommendations are given on how YHS (M) Bhd can improve in the soft drink areas in the future and growing the organization's market share. 3.0 Background In Malaysia, YHS focus in the manufacturing and marketing the soft drinks and packaged food products. Yeo Hiap Seng Company's key brands are Yeo's, Fizzi, and Justea (Global Market Information Database). YHS Company's share is the third spot in overall off-trade volume sales among the companies in the soft drinks industry (Global Market Information Database). In 2005, YHS Company retained its position through its strong presence in Asian specialty drinks. Graph 1: Group Sales for Yeo Hiap Seng and F&N Companies Source: Taken from 'Company Announcements' for F&N Company and Yeo Hiap Seng Company for the year 2001 until year 2005 of the group sales (Bursa Malaysia, 2006). According to Bursa Malaysia (2006), the group sales for YHS Company are lower than F&N Company (Graph 1). From year 2001 until year 2004, the group sales for YHS Company had dropped but there are slightly increased at year 2005. ...read more.

Middle

Therefore, YHS Company has not produced a well known brand in Malaysia. 6.0 Why Marketing Communications is Critical? * 6.1 Advertising YHS Company didn't use marketing communication tools effectively as it advertises their products less in TV commercial as compared with F&N Company. YHS Company advertises during festive season but F&N Company advertises through TV commercial frequently such as Coca-Cola in TV commercial and Malaysia reality show as stated in the F&N annual report. Another form of advertisement which is billboard advertisement, as YHS Company advertise their Justea product in a cartoonist way. The advertisement shows a cartoon kid is holding the drink while cycling. This type of advertisement will only attract younger consumers but not for older consumers. The annual report for YHS Company (2003) stated that, the new launch product is to target younger consumers. This shows that a Justea beverage is only for younger people. * 6.2 Sales Promotions The problem in sales promotions which faced by YHS Company is because they held less sales promotions as compared with F&N Company. YHS Company held promotions for Justea brand during festive season, stated in (GMID) in year 2005. However, Company held brand promotions at five local supermarkets in Kuching and Coca-Cola singing can promotion (Appendix 1). YHS Company only give samples for promoting their product but compare to F&N, they give samples of their product during the break of fast in mosques, orphanages, petrol stations and also supermarkets (Appendix 1). It shows that F&N build a stronger image to the consumer as compared with YHS Company. * 6.3 Events and Experiences Beside that, YHS Company didn't use this tool effectively because the company only held three events within two year which are, three month long campaign "Great Health, Great Taste", Chinese New Year campaign and Brand Building events (Appendix 1). However, F&N Company held 3 events in a year (Appendix 1). YHS Company can have the chance to deliver their brand name to the publicity but it fail because of fewer events as compared with F&N Company. ...read more.

Conclusion

Sdn Bhd 34.2 34.2 34.1 35.1 35.7 Permanis Sdn Bhd. 11.9 11.8 12.5 12.1 12 Yeo Hiap Seng (M) Bhd 10.1 10.1 9.9 9.6 9.6 Ace Canning Corp Sdn Bhd 7.4 7 6.8 6.5 6.2 Malaysia Milk Sdn Bhd. 4.5 4.3 4.3 4.2 4.1 Spritzer Bhd. 3.7 3.8 4 4.1 4 RO Water (M) Sdn Bhd. 2.4 2.5 2.5 2.5 2.5 Pokka Ace (M) Sdn Bhd. 2.6 2.6 2.6 2.5 2.4 Sime Oleander Sdn Bhd. 1.7 1.8 1.8 1.9 Nestle (M) Bhd. 0.9 0.9 0.8 0.9 0.8 Source: Global Market Information Database. 10.3 APPENDIX 3: Top 10 Brands at The World: 2005 2004 Brand name Parent Company Country 2005 2004 Change Brand Brand brand value brand value in brand Rank Rank ($ Mil) ($ Mil) value (%) 1 1 Coca-Cola Coca-Cola U.S. 67525 67394 0 2 2 Microsoft Mircrosoft U.S. 59941 61372 -2 3 3 IBM International U.S. 53376 53791 -1 Business Machines Corporation 4 4 GE GE U.S. 46996 44111 7 5 5 Intel Intel U.S. 35588 33499 6 6 8 Nokia Nokia Finland 26452 24041 10 7 6 Disney Walt Disney U.S. 26441 27113 -2 Company. 8 7 Mcdonal's Mcdonal's U.S. 26014 25001 4 Corporation 9 9 Toyota Toyota Motor Japan 24837 22673 10 Corporation 10 10 Marlboro Altria Group U.S. 21189 22128 -4 Source: The McGraw-Hill Companies 2006 'The 100 Top Brands' 10.4 Appendix 4: Top 10 Brands * #1 Dunhill (Cigarettes) British American Tobacco * #2 Carlsberg (Beer & Stout) Carlsberg Marketing * #3 Marlboro (Cigarettes) Philip Morris * #4 Guiness (Beer & Stout) Guinness Anchor Berhad * #5 Tiger (Beer & Stout) Guinness Anchor Berhad * #6 Salem (Cigarettes) JT International * #7 Milo (Health Food Drinks) Nestle Products * #8 Benson & Hedges (Cigarettes)British American Tobacco * #9 F&N (Soft Drinks) F&N Coca-Cola (Malaysia) * #10 F&N (Sweetened Cond Milk F&N Dairies (Malaysia) Source: ACNielsen (2002, sourced from Top 100 Brands Listing) Appendix 6: Position map for Yeo Hiap Seng Company, F&N Company, Permanis Company and also Ace Company. ?? ?? ?? ?? Great Health, KYH Consultants Great Taste. 1 ...read more.

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