AW

CONTENTS
1.0 INTORDUCTION ................................................................................................................... 1

2.0 SITUATIONAL ANALYSIS ................................................................................................. 2
2.1 External Environment Analysis .......................................................................................... 2
2.1.1 Political Factor.............................................................................................................. 2
2.1.2 Economic Factor ........................................................................................................... 3
2.1.3 Environmental Factor ................................................................................................... 3
2.2 TOWS Analysis ................................................................................................................... 4
2.2.1 Justifications ................................................................................................................. 5
2.3 Market Analysis .................................................................................................................. 8
2.3.1 Market Share ................................................................................................................ 8
2.3.2 Potential Market ........................................................................................................... 8
2.3.3 Fast food in Malaysia and Current Trend ..................................................................... 9
2.3.4 Generation Y and Fast Food ......................................................................................... 9
2.3.5 Generation X and Fast Food ......................................................................................... 9
2.3.6 Population of Generation X and Y in Malaysia ......................................................... 10
2.4 Competitive Analysis ..................................................................................................... 11
2.4.1 Marketing Mix of Carl’s Jr. ....................................................................................... 11
2.4.2 Marketing Mix of McDonald .................................................................................... 12
2.5 Product Life Cycle............................................................................................................. 14
2.6 New Product Description .................................................................................................. 15
2.6.1 Description of Product ................................................................................................. 15
3.0 OBJECTIVES STRATEGIES AND PROGRAMS ................................................................ 17
3.1 Brand Positioning .............................................................................................................. 17
3.2 Market Segmentation......................................................................................................... 18
3.3 Marketing Objectives ........................................................................................................ 19
3.4 Promotional Tools ............................................................................................................ 21
3.4.1 Advertising ................................................................................................................ 21
3.4.2 Internet/ Interactive Marketing .................................................................................. 22
3.4.3 Public Relations ......................................................................................................... 22
3.5 Pricing Strategy ................................................................................................................ 23
3.5.1 Cost-plus Pricing ......................................................................................................... 23
3.5.2 Odd Pricing.................................................................................................................. 23
3.6 Contingency Plans ............................................................................................................. 24
4.0 FINANCIAL PLAN ............................................................................................................. 25
4.1 Gantt Chart .......................................................................................................................... 25
4.1.1 Justifications ................................................................................................................ 25
4.2 Sales Forecast ................................................................................................................... 27
4.2.1 Justifications ................................................................................................................ 27
4.3 Pro Forma Cash Flow 2015 ............................................................................................... 29
4.3.1 Justifications ................................................................................................................ 30
4.4 Break Even Analysis ......................................................................................................... 31
4.5 Return on Investment ........................................................................................................ 32
4.6 Decision Tree .................................................................................................................... 33
4.6.1 Calculation of Expected Value for Both Outlets ......................................................... 34
4.6.2 Justifications ................................................................................................................ 34
5.0 CONTROL AND EVALUATION........................................................................................ 35
6.0 CONCLUSION ..................................................................................................................... 36
7.0 REFERENCES ...................................................................................................................... 37
8.0 APPENDICES ....................................................................................................................... 40
EXECUTIVE SUMMARY
This marketing decision making plan outlines situation analysis, objectives, strategies and
tactics for A&W to provide a consistent, cohesive brand message to introduce A&W
Collagen Burger in Malaysia within next twelve (12) months. It is anticipated the
marketing plan will play a role a significant role in increasing sales, improving brand
image, changing customer perceptions and attitudes, retaining current database of
customers and attracting new customers. A series of comprehensive measurement and
evaluation methods will be administered for marketing implementation to provide
valuable insight regarding precise areas where all the budgets are allocated efficiently and
effectively. The overall goal of the marketing plan is to improve the sale and increase the
market share and A&W is also planning to open new outlet at Sri Petaling.
BM032-3-3-MKTDM Page 1 of 43
1.0 INTORDUCTION
In 1919, A&W was founded by Roy Allens from California, United States. The A&W
franchise was brought into Malaysia 1963 by Mr and Mrs Lie and they opened their first
outlet in Jalan Tunku Abdul Rahman, Kuala Lumpur, making it as the first fast food
outlet in Malaysia. A&W offers menu featuring hamburgers, hot dogs, onion rings and
fries, distinguished by its draft root beer and root beer floats (A&W, 2014).
In 2001, A&W was sold to KUB Malaysia Bhd, an investment holding company (Public
Limited Company) operating in a range of industries, from energy to property,
engineering and construction. KUB followed up with an “aggressive expansion drive” to
widen A&W appeal and increase its sales (Securities, 2014). According to the newly
appointed Chief Executive Officer (CEO) of A&W Malaysia Mr. Samad Mohd Shariff,
the brand only “turned a corner” in the last two years after registering losses since 2001,
managing to rake in a profit of about RM1 million in 2013. Currently, KUB was
undertaking a corrective strategy and reviewing performance of each outlet. As many as
twenty-six (26) outlets were shut down last year (2014) in order to help curb losses,
leaving the current count at twenty-one (21) operating stores nationwide (Securities,
2014).
In the food sector of KUB, A&W records a decline in the sector’s revenue by 11% as
compared to the preceding year was mainly due to the cessation of its hotel business at
the end of year 2013 (A&W, 2014). Despite the cessation, the sector was affected by a
one-off payment of RM1.33 million for retrenchment benefits to the staff of KUB
Singgahsana (PJ) Sdn. Bhd, following the Group’s exit from the hotel business. KUB
foresees a potential for A&W to grow further, hence its intention to increase the market
share by opening another five (5) outlets (A&W, 2014).
A&W corporate vision is to bring people together to share great food, great root beer and
friendly hospitality. Meanwhile, the company missions are to build a stronger brand
identity and brand awareness level with the support of advertising and promotion, to
constantly improve and optimizing the resources in existing outlets to better serve its
customers and to reinvent fresh new menus to attract new market customers.
Asia Pacific University of Technology & Innovation UC3F1407KMGT/ TP026054

2.0 SITUATIONAL ANALYSIS

This chapter outlines thorough examination of internal and external factors affecting
A&W business. Potential customers, competitors and a realistic assessment are presented
to lead a better understanding of the factors that will influence the business.
2.1 External Environment Analysis

Opportunities and threats are measured as part of an external analysis. In this study,
political, economic and environmental factor are analyzed that may require a change
within the business.
2.1.1 Political Factor

According to Food Act 1983 and Food Regulations 1985, A&W must ensure all imported
and local manufactured food is safe and hygiene-concerned. Meanwhile, the company
should concern about “hard policies” such as regulations or fiscal policies (e.g. imposing
tax, removal of subsidies), that may be used to combat obesity in Malaysia (Ibrahim,
2012). This is because obesity has doubled over the past decade in adult Malaysian from
21% to 43% (1996-2006), high in adolescent (19%) and children (16.4%). As Malaysia
proceeds rapidly towards a developed economy status, the health of its population will
probably continue to deteriorate (Charlotte, Sandeep & Jean, 2001). Therefore, A&W
should take note of this regulation carefully.
In Malaysia, the reception of Halal logistics is very welcomed as supported by

Department of Islamic Development Malaysia (JAKIM), and is known as Halal
certification (Muhammad et al. 2009). A&W should cover the Halal logistics and supply
chain (Tieman, 2011), training in Halal logistics (Pahim et al. 2012), Halal transportation
(Syazwan et al. 2014), Halal packaging (Talib & Johan, 2012) and food supply chain
(Manzouri et al. 2013). Besides, special grants are given to A&W to become Halal-
compliant to enjoy double tax deduction on expenditure for obtaining Halal certification
and accreditation (MII, 2006).

2.1.2 Economic Factor

The Malaysian government has laid out a vision for the country’s economy. The vision is
working to increase the country’s Gross Domestic Products (GDP) eightfold helping the
country achieve “industrialized country” status by year 2020. The services sector is the
largest section in Malaysian economy, contributing almost 50% of the country’s GDP.
The food industry sector is growing quickly in importance and now accounts for 40% of
GDP (Ibrahim, 2012).
With economic success nationally comes rises in per capita income. Thus, the consumers
demand for high quality food, but must be provided at affordable prices. More than 60%
of the population is within the middle or upper income group (Charlotte, Sandeep & Jean,
2001). They are price-sensitive as well. Almost 45% of women in Malaysia are employed.
As women enter the workforce, they have less time to prepare family meals and,
therefore, rely on convenience food more often. Consumers between twenty (20) and
forty (40) years of age are most likely to rely on semi-prepared food or take-away meals
and can afford to do so (Charlottle, Sandeep & Jean, 2001). Many consumers are willing
to pay for products that they regard as having high quality and value. A large proportion
of the population is below 15 years of age. This group is increasingly exposed to global
and western influences and will be a driving force within Malaysia for higher value
products. Therefore, with the economic opportunity, A&W can take consideration in
offering value and healthy meals to the consumers.
2.1.3 Environmental Factor

Environmental lobbyists and governments are pressuring the fast-food firms to become
more “green”. This initiative is in tandem with Malaysia Environmental Quality Act 1974
for environmental protection, conservation and control activity (Chow et al. 2013).
Rainforests are being destroyed to increase the area of land for beef production to meet
the demand for beef-burgers. Recycling is a prominent global issue and in response,
A&W should adopt recyclable packaging (Chow et al. 2013). This is because increasing
environmental awareness among consumers provides the company with a significant
opportunity to position them as “green” to a garner customer loyalty.

2.2 TOWS Analysis

Strengths Weaknesses
T 1. Strong corporate orange 1. Not advertise extensively in
color image in consumers’
O mind
Malaysia
2. Strong support from parent 2. Outdated website and social

W brand network
3. First drive-in restaurant and 3. Inconsistent service and
S entered The Malaysia Book of
Records
food quality
4. Commitment to providing
healthy menu items
Opportunities SO Strategies WO Strategies
1.Growing health trends S1O1: Penetrate into healthy W1O1: Introduce healthy
among consumers menu choices lunch meal to target consumers
2. Growth of organic food S2O2: Combination of amino
ingredients collagen with high
antioxidants and food
3. Technological advances for S3O3: Innovations such as W2O3: High visibility in
ordering food apps and online ordering Facebook and Twitter and
systems for ease of acquiring create a website for online
food ordering
4. Diversification of food S4O4: Shifts towards natural W3O4: The company is
concepts and beauty concept inexperienced in different food
concepts and would need to
develop a sound plan before
starting a new concept
Threats ST Strategies WT Strategies
1.Perspective on “Rising food S1T1: Increase awareness of W1T1: Expanding operations
prices” due to GST GST and promotions creates the
implementation need for more sales
2.Ease of entry into the market W2T2: Intensive research and
development (R&D) and
market research
3.Impact of economic
downturn from recovering
economy
4. Change in consumer tastes S1T4: Maintain customer
and preferences loyalty would increase sales
Table 1.0: TOWS Analysis

2.2.1 Justifications
A&W product’s image is the Great Root Bear with orange color stated in consumer’s
mind. With the strong support from parent brand, Dr. Pepper Snapple Group, an
American soft drink company, and the entering Malaysia Book of Records, it is believed
that A&W can penetrate into healthy menu choices by offering organic food to
consumers.
SO Strategies
Over the past decade notions of beauty have been undergoing significant transformation
in Malaysia. Fair skin is also idolized and equated with notions of beauty (Charlotte,
Sandeep & Jean, 2001). Since there is a demand from health and beauty trend, the
company can penetrate into wider food industry, with a segment catering to the healthy
food market and, within this, a segment catering to the healthy fast food market,
developing meals that are easily accessible (quick purchase), delicious and not
harmful to health. One of the primary proteins in our body that play role in growth,
health and maintenance is collagen. From age twenty-five (25) onwards, the levels of
amino acids used to collagen and elastic fibers are reduced substantially; while at the age
of forty (40), our body stop produce collagen and lead to formation of wrinkles, skin
sagging, dryness and skin aging problems (Mohamed et al. 2013). Therefore, with the
strong support from parent brand and growing of health trends, A&W can shift towards
and diverse in offering healthy food to consumers.
WO Strategies
However, A&W is inexperienced in different food concepts as it is a fast-food based

restaurant. Studies showed that “90 percent of restaurants fail during the first year of
operation” that first stage is the most vulnerable (Parsa, John & David, 2005). One reason
for early failure is that new segment businesses typically have limited resources that
would allow them to be flexible or adapt to changing conditions. On the other hand, there
is a fine line between having a fresh perspective and being blinded by inexperience. By
offering lunch meal with collagen-ingredients to the target customers that allows online
ordering and increase visibility on Facebook and Twitter for promotion and enhance

two-way communication with consumers, it will help to improve business and expand
market share. One of the reasons of moving online is because the mass media repeatedly
emphasize the theme that people are busy and are looking for ways to save time. Internet
ordering is profiled as a potential time saver, because consumers can order any time, any
place and dressed any way (Chow et al. 2013). Plus, social media tools like Facebook and
Twitter bring advantages of “flatter”, more democratic and presumably more effective
communication networks for building long-term relationships with consumers.
ST Strategies
A&W may face the threats of consumers’ perception on “rising of food prices” that will
eventually cut costs on spending after implementation of Goods and Service Tax (GST).
To consumers, this may represent an effect to the aggregate prices of everyday goods and
services. While most consumers do not directly see the current 10% sales tax, many of
them experience the 6% service tax (Poskod Malaysia, 2014). Therefore, A&W needs to
educate the consumers about GST. Figure 1.0 shows the effects of service tax
abolished and 6% GST.
Figure 1.0: Differences between Service Tax and GST

Source: Poskod Malaysia (2014)
Another threat may faced by A&W is changing of consumer taste and preference. From
the marketing perspectives, this is a great signal because consumers demand on food
quality and choices in terms of value approaches, economics of information approaches
and satisfaction or dissatisfaction approaches. Therefore, A&W can introduce various
types of loyalty programs such as membership cards, vouchers and premiums to
rewards the loyal customers. Once the loyal customers get appreciated, they are easily
to become delighted customers (Chow et al. 2013). This is supported by the previous
studies that customer satisfaction influences purchase intentions as well as post-purchase
attitude. Referrals program can be initiated to invite the loyal customers to be part of the
company by inviting their friends and relatives to be the stakeholder. This will increase
the company sales as well as broadening market share.
WT Strategies
To targeting more customers and to decrease barriers of market entering, A&W should
conduct extensive research and development (R&D) and implement market
research to understand needs and wants of consumers. Meanwhile, consumer
behavior towards healthy fast-food can be examined to determine their likeability and
popularity (Mohammad, 2005). In the era of globalization, a comprehensive market
search plays a significant role in order to achieve organizational goals. Prior to that,
A&W can target their customers more precisely, for example, researchers have found that
eating out is becoming a trend especially for people who busy and going through the
hectic working life. Moreover, Mohamed et al (2013) posited that saving time and eating
healthy in better environments are the reasons of people to dine-out. These findings can
help the marketers to segment their market well and target the customers correctly.

2.3 Market Analysis

The goal of market analysis is to determine the attractiveness of a market and to
understand its evolving opportunities and threats as they relate to the strength and
weaknesses of the firm.
2.3.1 Market Share
Total Revenue (In Terms of Percentage)
McDonald
Carls. Jr
A&W
Others
Figure 2.0: Difference of Total Revenue
Source: Ibrahim (2012)
From the pie chart, it is identified that McDonald has the highest total revenue of 2
billion (38%) in Malaysia, followed by other companies which dominated around 1.8
billion (33%) in Malaysia, then followed by Carls. Jr has 14.3million of total revenue
(26%) in Malaysia and A&W has 1.5million of total revenue (3%) in Malaysia.
2.3.2 Potential Market

The total population in Malaysia is at 30.07million people (Indexmundi, 2013). As of
2013, Damansara claimed 613,977 residents living in the area of 51.4km per square fit
whereas Sri Petaling claimed 120,980 residents living in the area of 20.9km per square fit
(Indexmundi, 2013). Their population is made up of 55% Chinese, 30% Malays and 13%

Indians. The transportation facilities and infrastructure are well-developed in Sri Petaling
and Damansara that provides convenience to the residents and the business around.
2.3.3 Fast food in Malaysia and Current Trend

Looking at the trend of focusing on the healthy fast food in United States sue to the
consumer awareness on the importance of healthy food, the fast food restaurants in
Malaysia must considerably change their current marketing practices and focus on quality
or healthy food, so that consumers will not receive continuous encouragement to seek out
food that can damage their health (Harris, Schwartz & Brownell, 2010). Also, healthy
fast food products are predicted to receive a higher demand from the consumers due to
the rapid increase in lifestyle diseases, the increase in awareness towards overweight
issues and change in eating habits among consumers. According to Euromonitor (2010),
Malaysians who are more health conscious started to switch their food from unhealthy
food to a healthier food options.
2.3.4 Generation Y and Fast Food

Generation Y is a prime target for a food service business. Generation Y refers to the
members of the generation of people born since the early 1980s to 2000. Generation Y
are who seen as being discerning consumers with a high disposable income
(ThreFreeDictionary, 2011). Harris et al. (2010) reported that majority of fast food
advertising is targeted to Generation Y. In addition, past research from the NPD Group
(2009) shows that Generation Y orders more fast food than any other age group during
non-meal times, after school and in the evening or midnight. The marketers for fast food
industry are targeting the Generation Y as their main customers.
2.3.5 Generation X and Fast Food

The Generation X, which propelled fast food restaurants in the 60’s and 70’s are now
reaching its peak income levels (myStarjob, 2013). It has considerably discretionary
income to spend on pleasure and leisure. The boomers view food service dining as a form
of recreation and take much of pleasure in trying new restaurants and fresh menu ideas.
Moreover, they place a high emphasis on “food sophistication” with greater attention to
portion size and variety. As one ages, taste buds tend to become less sensitive, so aging
generations are demanding bolder/ higher impact flavors. A greater importance is also

placed on healthy diet options as the Generation X fight the realities of health problems
that come with age (myStarjob, 2013).
2.3.6 Population of Generation X and Y in Malaysia
Figure 3.0: Population in Malaysia
Source: myStarjob (2013)
Figure 2.0 shows the population in Malaysia. It shows that the majority of Malaysian age
group is from fifteen (15) up to fifty-nine (59) years old. Therefore, with the evidence,
Generation X and Y are the ideal target group of consumers for A&W.

2.4 Competitive Analysis

The purpose of competitor analysis is to obtain information about important competitors
and use the information to predict competitor behavior. In this study, Carl’s Jr. and
McDonald are chosen as A&W competitors.
2.4.1 Marketing Mix of Carl’s Jr.

Product
Carl’s Jr. new core product, the Lot Burger, has a wide gamut of benefits. The most
distinctive feature of most company’s products is quality. The new burger consists of
only healthy and natural ingredients, fresh lettuce leaves, beetroots slices, tomatoes and
onions, a slice of cheese, bacon rashers and an egg. All of these attract people who are
concerned about healthy. Furthermore, nutrition value of burger constitutes very large
amount and a lot of energy. This feature makes a sense giving a serious comparative
advantage in the fast-food chain market (Carlsjr, 2015).
Promotion
Carl’s Jr. uses famous sportsmen to influence target audience who are concerned about
the amount of a nutrition value found in the Lot Burger. The slogan for the whole
advertising campaign is “It’s new. It’s bigger. And it’s more delicious than ever before”
(Carlsjr, 2015). In addition, new burger is advertised using billboard at major roads that
by far attention to create comparative advantage. People’s testimonials, especially from
satisfied customers, are included in press releases to promote the company.
Price
Carl’s Jr. looks at other niche where consumers would be prepared to accept a higher
price because people feel that the company understand their needs better and what they
want. Thereby, the company follows the quality leadership pricing strategy-placed price
conveys the product quality to the consumers. Prices for the regular, kid’s and combo will
use the product line and optional pricing strategy corresponding to the quality leadership
strategy (Carlsjr, 2015).

Place
Carl’s Jr. enters Malaysian market with seven (7) outlets nationwide, and nowadays
expended it to fifteen (15). All of them are located at the biggest shopping malls due to
the trend of all Malaysian loves to shops in malls, allowing them to enjoy shopping
together with delicious food without going to another place (Carlsjr, 2015).
2.4.2 Marketing Mix of McDonald

Product
According to McDonalds (2015), the crucial thing to note when offering menu items to
potential customers is that there is a huge amount of choice available to those potential
customers with regard to how and where they spend their money. Therefore, McDonald’s
places considerable emphasis on developing a menu which customers want. There are
many situations where McDonald adapted the product because of religious laws and
customs in a country, for example, McDonald’s restaurant in Malaysia offers bubur ayam
(chicken porridge) and Double Beef Prosperity burger whereas McDonald’s restaurants
in India serve Vegetable McNuggets and a mutton-based Maharaja Mac (Big Mac). Such
innovations are necessary in a country where Hindus do not eat beef. However, the
structure of McDonald’s menu remains essentially uniforms the world over: main course
burger, fries and a drink (McDonalds, 2015).
Promotion
Using these tools, McDonald looks to localize its marketing communications strategy that
includes newspapers, television and magazine. The “I’m lovin’ it” campaign, launched in
2003 used celebrity endorsement to increase their appeal to younger consumers in
Malaysia. Justin Timberlake was used for vocals and the campaign was launched in
eighty-six (86) in English-speaking countries. In addition, McDonald does adopt global
strategy that alliance with Walt Disney in producing “happy meals” for films such as A
Bug’s Life, Toy Story and Tarzan (McDonalds, 2015). The company also enhances its
brand name with Olympic Games and the World Cup, the two biggest sporting events in

the global calendar. Due to the promotional activities, McDonald achieved 6th position on
“Best Global Brands 2011” as a result of continuous promotional activities.
Price
McDonald has come up with different pricing strategies for different countries and has
positioned itself as fast food restaurants offering low-cost food and drink. The affordable
menu has been adapted worldwide while maintaining their core goal of assurance.
Ongoing innovation has allowed new pricing strategies such as the “Saver Menu” that
offers value breakfast, lunch and dinner that is affordable by the consumers. In response
to increasing food costs, McDonald opted to increase prices by less than 1% adopting the
change gradually to the menu in order to retain price-sensitive customers (McDonalds,
2015).
Place
McDonald currently has over 24,500 restaurants in 116 countries across the world.
McDonald realize the potential for growth in international markets and plans to benefit
from the lessons that they learnt in the USA, for example, they used to add 300-400
restaurants a year, every year in Malaysia regardless circumstances. It was a strategy that
created a gap between them and the rivals (McDonalds, 2015).

2.5 Product Life Cycle
Carls. Jr McDonald A&W
Figure 4.0: Product Life Cycle
Source: self-made
From the graph, it is identified that Carls. Jr is in the growth stage whereas McDonald is
in the maturity stage. For A&W, it falls under decline stage because A&W PJ Drive Thru
has been revamped and will only be shut for the next three years till 2016 to facilitate the
construction of the KUB Tower project. Due to the increasing of competitors and lack of
advertising, A&W is losing its popularity against others. Due to the lost profit, A&W is
closing down their outlets and replaced them in suitable venue.
To make the brand stand out from the competitors, A&W would wish to reposition back
their brand in the market. And to give confidence to the consumers, A&W Malaysia also
planning to open two (2) new outlets to be located at Sri Petaling or Damansara July 2015.
This will provide alternative solutions to the consumers in the fast food choices.

2.6 New Product Description

The new product of A&W is illustrated as follows:
1
3
4
2
5
Figure 5.0: Breakdown parts of new product
Source: self-made
2.6.1 Description of Product

No. Breakdown Parts Explanation
1 Health-boosting Purple Tomatoes A team from the John Centre in Norwich,
United Kingdom has engineered tomatoes
using genes from the snapdragon flower to
give an extra helping of pigments called
anthocyanins. These have an anti-
inflammatory effect in the body. In tests,
the tomatoes slowed the progression of
soft-tissue carcinoma in cancer-prone mice
(BBC, 2014).
2 Cultured Beef Muscle stem cells from cattle have been

cultured in a nutrient broth by researchers
at Maastricht University in Netherlands,
and then mixed with collagen so they
formed strips of muscle tissue- the main
component of meat (BBC, 2014).
3 Diabetes-treating Lettuce Dr. Henry Daniell, a molecular biologist at

the University of Pennsylvania, works on

delivering drugs using plants. He has
created lettuces genetically engineered to
express a protein that stimulates the
pancreas to produce insulin (BBC, 2014).
4 Allergy-free Milk Milk allergies are often caused by a protein

called beta-lactoglobulin (BLG), which is
not present in human milk. A New Zealand
team has used genetic engineering to
create a cow that produces BLG-free milk
(BBC, 2014).
5 Reinforced Bread In 2012, scientists from the UK, Germany

and the US deciphered wheat’s complex
genetic code, identify about 96,000 genes.
The work paves the way to breeding wheat
varieties with higher yields, more disease
resistance and increased ability to cope
with drought and other climate-related
stressed (BBC, 2014).

3.0 OBJECTIVES STRATEGIES AND PROGRAMS

This chapter will outline key objectives, target market, positioning strategy, promotional
tools and pricing strategy that will be implemented by A&W Malaysia.
3.1 Brand Positioning

Positioning Statement 1: Collagen Burger helps maintain and promote health.
Unique Selling Point 1: The increase in non-communicable chronic disease, stress in the
workplace, lack of time and other consequences of our everyday rapid pace of life will
force individuals to eat healthier food more regularly in order to reduce negative effects
of this fast-paced life of their health. If we eat a balanced diet, our cells will be properly
fed and protected, which enable them to have effective immune systems.
Positioning Statement 2: Collagen Burger is both health and tasty for consumers.
Unique Selling Point 2: Many people think that burger is not healthy, but this is not true.
We choose from among many high quality and fresh ingredients to make up a burger. To
ensure the original taste of the burger, we serve our burgers within ten (10) minutes or
otherwise free of charge.
Positioning Statement 3: Collagen Burger is crucial for combating aging issues.
Unique Selling Point 3: An imbalanced diet can lead to problems with old people. A
wholesome balanced diet over a long period provides better and healthier lifestyle.

3.2 Market Segmentation

In fact, base on the market analysis above, A&W market segmentation can be
summarized by using demographic and behavioral factors.
Demographic Factors Criteria Explanation
Age Group 15-59 years old Majority of Malaysians are

Gen X and Y.
Family Size 1-2, 3-4, 5+ A&W is suitable for family

union and gathering.
Race Malays, Chinese and Indians Malaysia is a multi-cultural

nation.
Occupation Students, office workers, They are the target group

employed people that requires healthy meals
every day.
Income <RM1000 –RM4,000 and above The consumers can afford

the products offered by
A&W
Behavioral Factors Criteria Explanation
Benefits Quality products and service A&W will provide healthy

products to those looking
for quality products and
service.
Loyalty Status Medium and strong A&W targets all consumers

that are interested to try the
new menu offered.
Readiness Stage Unaware and aware A&W will utilize

promotional tools to
advertise the new product
offered.
Table 2.0: Market Segmentation of A&W
Source: self-made

3.3 Marketing Objectives

The objective of this marketing plan is to recommend a business proposition which is
measurable and attainable by firstly identifying A&W goals. The objective of the
marketing plan is to introduce a new product, Collagen Burger in April 2016 by
developing marketing strategies and plan.
Objective 1: To create brand awareness of A&W Collagen Burger to the consumers.
Goal 1: Obtain 15,000 “first-time” visitors to A&W outlet within six months of
implementation.
 Tactic: Implement new mobile app in webpage that allows customer to interact
with A&W “The Great Root Bear” in order to create viral marketing.
 Tactic: Offer special promotions such as vouchers and free gifts in the outlets for
customers who upload their photos with A&W “The Great Root Bear” on the spot.
 Implement new “A&W Way”, a shuttle program designed for customers from a
Kuala Lumpur area to A&W outlet in Sri Petaling or Damansara .
This goal is meant to reach potential customers without means or desire to travel to A&W
outlet. If a customer is made aware of the product line, they may be more willing to visit
A&W outlet and try out the new product, Collagen Burger. This is one of the buss
marketing strategies for A&W in the outlet.
Objective 2: To achieve sales target of $2,000,000 for the first year.
Goal 2: Achieve a ten percent referral-rate with newly acquired customers.
 Tactic: Refresh the A&W website Facebook page to integrate friendlier and
humanistic customer service to customers who “like” the page and reward those
invite their friends to like the page; The rewards can in the form of giving free
tissue wallet on their next purchase; increase number of “likes” by 20,000 within
one year.

Goal 2 targets families and individuals by making them feel special and desired. Gaining
trust through the customers will strengthen the relationships, potentially turning the
referrals into customers and then increase total sales of the company.
Objective 3: To achieve estimated 20% market share next 12 months.
Goal 3: Increase company reputation by utilizing positive media mentions nationwide by

ten percent with a 12 month period.
 Tactic: Create and disseminate press release on The Sun newspapers (the highest
circulated English newspaper, with a daily circulation of 305,000 copies),
focusing on positive accomplishments and activities that evoke good publicity
nationwide.
This goal aims to enhance public image of A&W. A press release can effectively help
change and build the public image of the company. Plus, well-written and distributed
press releases can help to communicate a positive brand image, improve customer
perceptions, enlarge economy of scale and increase bargaining power of the company
(Westwood, 2011).

3.4 Promotional Tools

Advertising, Internet marketing and public relations are selected as promotional tools for
marketing strategy.
3.4.1 Advertising
A&W Malaysia will use two means of advertising: print advertising and television
commercial advertising. Advertising has not been utilized aggressively by A&W
whereby the products and services can have their own advertisement, be it print or
electronic media, for example, A&W has its own print advertisement carrying tagline
“More Than The Usual”. The criteria and reasons of selecting the print advertising and
TV advertising are as follows:
Tools Reasons of Selection Criteria of Selection

Print It covers high degree of The Sun newspaper is chosen because
Advertising market coverage and it is cheap and the highest circulated
(Newspaper) penetration, it is flexible in English newspaper, with a daily
(Monday-Friday terms of producing and circulation of 305,000 copies. The ads
because this is the running the ads and it is will be published in first double page
working days for geographic selective. of the newspaper because those are the
the target captions that will attract reader’s
audience) attention (SheeHan, 2011). Refer to
appendix for price per insertion.
TV Advertising It has wider coverage, cost TV3 is chosen because it has the
(Television) effective, creates attention highest number of 19,000,000 page
(8pm-10pm and creativity to present views, contains 383,000 unique users
because this is the advertising messages. and the age group covers below 18
time most of the (11%), 18-24 (40%), 25-34 (30%) and
family will watch above 35 (19%). TV3 trading terms is
TV together) 30 seconds ads will charge for
RM1000 (SheeHan, 2011).

3.4.2 Internet/ Interactive Marketing

Internet Marketing, on the other hand will be focused on Facebook and Twitter on
creating viral marketing by using rationale and emotional appeal on A&W and at the
same time creates two-way communication between consumers and company. It is
suggested that A&W Malaysia can launch “Pimp My A&W” contest together with the
universities and residents around Sri Petaling or Damansara. The contest requires the
competing schools and the participants to take photo with the scene in A&W outlet. They
can “groupie” their moment with “The Great Root Bear” and Collagen Burger and the
ambiance in the outlet and then upload the photos into Facebook and Twitter. The photo
with the most “likes” wins. This will enhance the creativity among university students
and residents and at the same time promotes A&W stores and Collagen Burger is
certainly a great option of healthy meal for young and discerning teenagers and residents.
3.4.3 Public Relations

The objective is critical to introduce Collagen Burger to prospective consumers. The plan
for the convention is to invite people who cannot make it to A&W outlet by fetching
them along the way to the outlet in Sri Petaling or Damansara. The efforts including
sending emails to the consumers informing them about the conference and media alerts to
local media outlets informing them of the conference. The conference will feature
seminars on:
1. Who A&W is
2. Why A&W outlet exists
3. What is next for A&W Malaysia
4. Green-initiatives for A&W Malaysia
TV3 and The Sun media will be invited to the conference for A&W Malaysia. The
advertising time for TV3 is 8pm to 10pm because those are the time that most of the
families will spend their time watching TV and family activities (SheeHan, 2011).
Therefore, A&W can spread the new product launching news for the targeting family.
It is hope that A&W is able to gain large number of new customers and generates positive
media reports on A&W PJ and Collagen Burger.

3.5 Pricing Strategy

Pricing is an important strategic issue because it is related to product positioning. Further,
pricing affects other marketing mix elements such as product features, channel decisions
and promotion (SheeHan, 2011).
3.5.1 Cost-plus Pricing

The company can set the price at the production cost, including both cost of goods and
fixed costs at the current volume, plus a certain profit margin (Belch & Belch, 2001). In
A&W, the product and service cost $6.80 in variable costs (raw materials) and production
costs, and at the current sales volume the fixed costs come to $1.50 per unit. The total
costs are $8.28 per unit. The company decides that they want to achieve at a 25% profit
margin. Therefore, the targeted price should be ($8.30/1-25%) which is $11.00.
Below shows the calculation of variable and fixed cost per unit.
Variable cost per unit = $1,412,100/ 212,000 units
= $6.80 per unit
*variable cost is derived from utilities, raw material, transportation, salary, packaging,
advertising and promotion and conference
Fixed cost per unit = $312,000/ 212,000 units
= $1.50 per unit
*fixed cost is derived from total cost of equipment and insurance and rental fees
Therefore, Total cost per unit = $6.80+$1.50=$8.30 per unit
3.5.2 Odd Pricing

The company can use the technique known as odd pricing that prices end in odd number
(5,7,9) because the studies shows that selling for $10.95 appears cheaper than the
same item priced at $11.00. Psychological techniques such as odd pricing can be used to
certain customers’ interests (Belch & Belch, 2001).

3.6 Contingency Plans

While carefully planning was involved in setting the strategic goals for A&W, it may be
that these goals are not met. Therefore, for both sales and financial objectives, a 10%
negative deviation from expected sales and projection returns on assets will be accepted.
However, if sales objectives and return on investment are less than 90% of projections,
certain actions will be taken. These actions include:
No. Problems Solution

1 Unacceptable Sales Levels A&W will combat this problem by doubling in-store
during the First Year promotions in the outlet. A&W will arrange and carry
out these promotions on weekends at peak hours and
distribute vouchers in the shopping complex at peak
shopping times (Westwood, 2011). If sales do not
increase within one month of the in-store promotions,
A&W will advertise in the weekly shopping circulars
of the store for one month.
2 Unacceptable Return on In the event that the business lacks liquidity, A&W
Equity will examine the accounts receivable procedures and
to ensure that cash flow projections is reviewed to
determine if unforeseen cash expenses are
undermining the financial health of the company
(Westwood, 2011).
3 Unacceptable Return on If return on assets and owners’ equity fall below
Equity acceptable levels, A&W will first examine and
compare the cost of production per unit and marketing
with sales prices. If the margins are too thin, a price
increase for new product will be considered
(Westwood, 2011).

4.0 FINANCIAL PLAN

This chapter will outline financial plan as an estimation of cash needs and decision on
how to raise the cash. Sales forecast, pro forma cash flow, breakeven analysis and return
on investment are presented for A&W.
4.1 Gantt Chart
Feb- Mar- Apr- May- Jun- Jul- Aug- Sep- Oct- Nov- Dec- Jan-
Month 15 15 15 15 15 15 15 15 15 15 15 16
The Sun (Mon-Fri)
TV3 (8pm-10pm)
Facebook, Twitter
"Pimp My A&W"
Contest
Press Conference
Figure 1.0: Gantt Chart of A&W
Promotional Tools Reasons
The Sun and TV3 Base on the chart above, A&W will apply pulsing method on advertising
for both the Sun and TV3. The reasons are because on February and March,
there is Chinese New Year festival and holidays for the students; on June
and July, there are another holidays and Hari Raya celebration for the
Malaysians; and on November, December and January, there are school
holidays, Christmas and New Year festivals for the Malaysians too
(SheeHan, 2011). Therefore, by looking at the opportunities, A&W can
apply heavy advertising during peak selling periods to stimulate bulk
purchase from the consumers. On top of that, it is analyzed that during the
periods it may bring more profits to the company because of the demand
from consumers.

Facebook, Twitter In addition, A&W will apply continuous scheduling towards Facebook and
Twitter page. This is because these social media are very cheap, plus it is
used as a “trendy” tool that continuously reinforcement and penetration into
young consumers mind recollection at point of purchase. By keep updating
and responding to the web user’s comments and feedbacks, it is believed
that A&W can achieve effective two-way communication between company
and consumers (SheeHan, 2011). However, since A&W open its sources for
sharing contents, the company should prepare to respond for the “bad
comments” that may affect reputation of the company.
"Pimp My A&W" Furthermore, A&W will organize “Pimp My A&W” contest in continuous
Contest
style. It is divided into two parts, where the first contest will be organized
on half-yearly basis. The purpose of organizing the event is to follow the
trend and encourage young consumers to take picture about their moments
dining in A&W restaurant in Sri Petaling or Damansara. Hence, it is
predicted that the efforts may bring extra profits to the company because it
stimulate consumer behavior of trying new products and stand a chance to
win the contest (SheeHan, 2011).
Press Conference Besides that, A&W will be having press conference in a flighting style
during April-May and August-September. The reason of choosing those
four months is because there are few festivals, activities or events ongoing
for the particular months. Hence, the press conference will play a role to
achieve economic of scale and set as a reminder and most importantly,
create a viral messages in Malaysia that A&W is the first company that
offers free ride to the customers to the conference (SheeHan, 2011). Please
refer to appendix for table of holidays in Malaysia.

4.2 Sales Forecast
Month Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16
Sales (cash) 109,500 164,250 197,100 197,100 164,250 219,000 164,250 197,100 197,100 219,000 273,750 219,000
Sales
(units)@$10.95/unit 10,000 15,000 18,000 18,000 15,000 20,000 15,000 18,000 18,000 20,000 25,000 20,000
Total sales: $2,321,400 Total units: 212,000 units
Months Results Reasons
February 2015 Sales is predicted as 10,000 units of getting $109,500 A&W Collagen Burger is at the beginning stage to be
introduced to the consumers.
March 2015 Sales unit increased to 15,000 of getting $164,250 The result is due to the effort of promoting and advertising
through print advertising, social media and the contest.
April-May 2015 Sales are predicted to be increased and constant at 18,000 The result is due to the effect of advertising program that
units and getting profit of $197,100 increase awareness of the new product among the people.
June-July 2015 Sales are predicted to be dropped at 15,000 units for June The result is due to June is the fasting month for the Malays,
while the sales will be doubled on July. even though there are holidays and promotion is done. On
the other hand, sales is predicted to be doubled on July

because Malays will celebrate Hari Raya and this is the best
time to create awareness to the audience to maintain their
healthy lifestyle that A&W Collagen Burger is their best
choice during Hari Raya celebration.
August-October Sales are predicted to increase for the next three months and The result is because of the effect of the advertising and
2015 getting average profit of $190,000 conference setting by the company.
November- Sales are predicted to goes up to 20,000 and 25,000 units, The result is because there are holidays starting for the
December 2015 breaking records of the year. month and the children will accompany their parents to the
fast-food restaurant and Christmas festival will attract the
consumers to visit the store as result from promotion efforts.
January 2016 Sales are predicted to drop to 20,000 units This is because most of the families will save their money
for the purpose of coming Chinese New Year and planning
for other stuffs like investment, insurance, properties and so
forth.

4.3 Pro Forma Cash Flow 2015
Month Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16
Item
Cash Inflow
Balance Bring Forward 90,500 106,750 180,450 257,150 273,400 315,400 376,650 453,350 535,050 576,050 644,300
Sales 109,500 164,250 197,100 197,100 164,250 219,000 164,250 197,100 197,100 219,000 273,750 219,000
Shareholder Fund 100,000
Total Cash 209,500 254,750 303,850 377,550 421,400 492,400 479,650 573,750 650,450 754,050 849,800 863,300
Cash Outflow
Fixed Cost
Equipment & Insurance 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000
Rental 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000
Variable Cost
Utilities 1,000 2,000 2,400 2,400 2,000 3,000 2,000 2,400 2,400 3,000 3,500 3,000
Raw Material 20,000 40,000 52,000 52,000 40,000 60,000 40,000 52,000 52,000 60,000 80,000 60,000
Transportation 5,000 6,000 7,000 7,000 6,000 8,000 6,000 7,000 7,000 8,000 9,000 10,000
Salary 10,000 12,000 13,000 13,000 12,000 13,000 12,000 13,000 13,000 14,000 15,000 14,000
Packaging 10,000 15,000 18,000 18,000 15,000 20,000 15,000 18,000 18,000 20,000 25,000 20,000
Advertising &
Promotion 50,000 50,000 50,000 50,000 50,000 50,000
Conference 8,000 5,000 5,000 5,000
Total Cost 119,000 148,000 123,400 120,400 148,000 177,000 103,000 120,400 115,400 178,000 205,500 130,000
Gross Profit 90,500 106,750 180,450 257,150 273,400 315,400 376,650 453,350 535,050 576,050 644,300 733,300

A&W will seek funds from shareholders to gain the initial capital for the first month. As
the sales increases indicates that the cost of production also increases. Equipment and
insurance will be fixed at $20,000 while rental is $3,000 per month. Utilities and
transportation cost is proportional with the sales of the month. For the first month, A&W
will employ ten (10) full time workers. On the second month, two workers will be added
in. Part time workers will also be recruited during peak festivals and seasons. All the
funds will be managed efficiently and make sure all resources are not wasted.
$ Gross Profit
800,000
700,000
600,000
500,000
400,000
Gross Profit
300,000
200,000
100,000
0 months
1 2 3 4 5 6 7 8 9 10 11 12
Figure 6.0: Gross Profit of A&W
Source: self-made
As interpreted from the graph, it can be seen that the gross profit will increase gradually
for the next twelve months.

4.4 Break Even Analysis

Sales: 212,000 units at $10.95/unit $2,321,400
Shareholder Fund: $100,000
Gross Margin: $2,421,400
Less: Fixed Production Cost $312,000

Variable Production Cost $1,412,100
Net Income Before Taxes: $597,300
The firm’s breakeven output is calculated by using the formula:
Break even (unit) = Total Fixed Cost / {(Selling Price/unit)-(Variable Cost/unit)}
= $312,000 / {($10.95)-($6.80)}
= $312,000 / $4.15
= 75,180 units
Sales in dollar that required to break-even is calculated by using the formula:
Break even (sales) = Break even (unit) X Selling price (unit)
= 75,180 units X $10.95
= $823,221
If the variable production costs increase by $2 per unit, the new break even output will
be following the formula:
Break even (unit) = Total Fixed Cost / {(Selling Price/unit)-(Variable Cost/unit)}
= $312,000 / {($10.95)-($6.80)}
= $312,000 / $4.15

= 75,180 units
Assuming demand for the A&W Collagen Burger is 100,000 units, the margin of safety is
calculated by following the formula:
Margin of safety = {Demand-Break even (unit)}/ {Break even (unit)} X 100%
= {100,000-75,180}/ {75,180} X 100%
= 0.33 X 100%
= 33%
To earn a profit of $40,000, the break even in terms of target is calculated by using the formula:
Break even (target) = {Total Fixed Cost+Targeted profit}/{(Selling Price/unit)-(Variable
Cost/unit)}
= {$312,000+$40,000}/ {($10.95)-($6.80)}
= {$352,000}/ {$4.15}
= 84,819 units
4.5 Return on Investment

Return on investment (ROI) for A&W Collagen Burger is calculated base on the formula:
ROI = {Gain-Cost}/ {Cost}X 100%
= {$2,321,400-$1,688,100}/ {$1,688,100}X 100%
= {$633,300}/ {$1,688,100}X 100%
= 37.5%
Note: all formula adopted from Gulko (2010)

4.6 Decision Tree

Decision Tree
TOTAL REVENUE
$900,000
HIGH=0.2
$800,000
SUCCESS=0.7 MEDIUM=0.5
B
LOW=0.3 $700,000
SRI PETALING
A
$50,000
SUCCESS=0.6
COST=$400,000
FAILURE=0.3
C
$0
NOTHING=0.4
A&W $1,000,000
HIGH=0.3
$900,000
SUCCESS=0.6 MEDIUM=0.4
E
LOW=0.3
COST=$400,000 $800,000
DAMANSARA
D
$50,000
SUCCESS=0.6
FAILURE=0.4
F
NOTHING=0.4 $0
Software downloaded from: http://www.edrawsoft.com/decisiontrees.php

4.6.1 Calculation of Expected Value for Both Outlets
Expected Value of Sri Petaling and Damansara is calculated by using the formula:
Expected Value= Probability of Success+Probability of Loss- Cost
Expected Value for Sri Petaling
EVB = 0.2($900,000)+0.5($800,000)+0.3($700,000) = $790,000
EVC = 0.6($50,000)+0.4($0) = $30,000
EVA = 0.7($790,000)+0.3($30,000)-$400,000 = $162,000
Expected Value for Damansara
EVE = 0.3($1,000,000)+0.4($900,000)+0.3($800,000) = $900,000
EVF = 0.6($50,000)+0.4($0) = $30,000
EVD = 0.6($900,000)+0.4($30,000)-$400,000 = $152,000
A&W should develop and expand its business in the Sri Petaling outlet in Malaysia. The
reasons are because the expected value for opening an outlet in Sri Petaling is higher and
it is a long-term wise decision for the company in the future.

5.0 CONTROL AND EVALUATION

The evaluation and control activities will include quantitative methods to measure the
effectiveness of the marketing plan. The purpose of evaluation plan is ensure each
objectives set by the company are accomplished at the end of the integrated marketing
plan.
Objective 1: To create brand awareness of A&W Collagen Burger to the consumers.
Evaluation Plan 1:
Due to A&W proposed advertisements, it is advised that all advertisements in the

marketing plan under do positioning advertising copy testing to determine whether they
are relevant for the marketplace. Positioning advertising copy testing will help A&W
evaluate consumer attitude and purchase intentions, and allow for the consideration
alternative messages that may be more appropriate (Belch & Belch, 2001).
Objective 2: To achieve sales target of $2,000,000 for the first year.
Evaluation Plan 2:
One of the most economical methods will include intercept surveys. Intercept surveys are
highly effective and will provide instant feedback (Westwood, 2011). Since A&W is
concerning about getting more referrals, it is important to understand the reasons behind
missed revenue and the loss of potential customers. Intercept surveys can help A&W to
identify customers who made a purchase and those who did not and why and their
chances to recommend other friends to purchase.

Objective 3: To achieve estimated 20% market share next 12 months.
Evaluation Plan 3:
Theater testing will be used to identify strengths and weaknesses of broadcast marketing
messages and indicate how A&W Malaysia’s commercials will compare against its
competitors (SheeHan, 2011). Using theater testing, individuals will be told to watch and
critique television program, but their reception to A&W brand message will actually be
measure which, in turn, helps to determine brand preference among the target audience.
6.0 CONCLUSION
It is believed that Sri Petaling outlet will be the best decision expansion decision to face
the stiff competition in the fast food industry. It is also confident that by introducing new
product, A&W Collagen Burger would be able to compete with other major fast food
players in the near future. Therefore, each strategic business unit (SBU) like human
resource, information technology, media, finance, marketing and so forth, plays vital
roles in collaborating to shape a better corporate image. It will simultaneously create
competitive advantage to contribute to the company sustainability and profitability and
finally increase market share in Malaysia.
It is also believed that with the thorough internal and external analysis of the group and
company, A&W Collagen Burger will be launched successfully in the introductory stage
of the product life cycle. After all, one can succeed in the competitive market only after
understanding the complex consumer behavior because this enables the marketers to
undertake marketing decisions which are compatible with consumers’ needs.

7.0 REFERENCES
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[Accessed 8 Mar. 2015].
Charlotte, Sandeep, and Jean, (2001). The Food Service Industry: Trends and Changing
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Chow, Dickson, Tham, and Wong, (2013). Factors Influencing Dining Experience on
Customer Satisfaction and Revisit Intention among Undergraduates Towards Fast
Food Restaurants. Universiti Tunku Abdul Rahman, 1(1).
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8.0 APPENDICES
Date Holidays Applicable to
Kuala Lumpur, Putrajaya, Johor,
3 Feb 2015 Thaipusam Kedah, Negeri Sembilan, Perak,
Penang & Selangor only
19 Feb 2015 Chinese New Year National
20 Feb 2015 Chinese New Year (2nd Day) National
14 Mar till 22 Mar 2015 School Holidays National
1 May 2015 Labour Day National
3 May 2015 Vesak Day National
30 May till 14 June 2015 School Holidays National
17 Jul 2015 Hari Raya Puasa National
18 Jul 2015 Hari Raya Puasa (2nd Day) National
31 Aug 2015 National Day National
16 Sep 2015 Malaysia Day National
10 Nov 2015 Deepavali National except Sarawak
21 Nov till 3 Jan 2015 School Holidays National
25 Dec 2015 Christmas National
1 Jan 2015 New Year National
Source: http://www.onestopmalaysia.com/holidays-2015c.html

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CONTENTS

1.0 INTORDUCTION ................................................................................................................... 1

Asia Pacific University of Technology & Innovation UC3F1407KMGT/ TP026054

2.0 SITUATIONAL ANALYSIS

2.1 External Environment Analysis

2.1.1 Political Factor

In Malaysia, the reception of Halal logistics is very welcomed as supported by

Asia Pacific University of Technology & Innovation UC3F1407KMGT/ TP026054

2.1.2 Economic Factor

2.1.3 Environmental Factor

Asia Pacific University of Technology & Innovation UC3F1407KMGT/ TP026054

2.2 TOWS Analysis

2. Strong support from parent 2. Outdated website and social

Table 1.0: TOWS Analysis

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However, A&W is inexperienced in different food concepts as it is a fast-food based

Asia Pacific University of Technology & Innovation UC3F1407KMGT/ TP026054

Figure 1.0: Differences between Service Tax and GST

Asia Pacific University of Technology & Innovation UC3F1407KMGT/ TP026054

Source: Poskod Malaysia (2014)

Asia Pacific University of Technology & Innovation UC3F1407KMGT/ TP026054

2.3 Market Analysis

2.3.1 Market Share

Total Revenue (In Terms of Percentage)

Figure 2.0: Difference of Total Revenue

Source: Ibrahim (2012)

2.3.2 Potential Market

Asia Pacific University of Technology & Innovation UC3F1407KMGT/ TP026054

2.3.3 Fast food in Malaysia and Current Trend

2.3.4 Generation Y and Fast Food

2.3.5 Generation X and Fast Food

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2.3.6 Population of Generation X and Y in Malaysia

Figure 3.0: Population in Malaysia

Source: myStarjob (2013)

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2.4 Competitive Analysis

2.4.1 Marketing Mix of Carl’s Jr.

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2.4.2 Marketing Mix of McDonald

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Asia Pacific University of Technology & Innovation UC3F1407KMGT/ TP026054

2.5 Product Life Cycle

Carls. Jr McDonald A&W

Figure 4.0: Product Life Cycle

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2.6 New Product Description

Figure 5.0: Breakdown parts of new product

2.6.1 Description of Product

2 Cultured Beef Muscle stem cells from cattle have been

3 Diabetes-treating Lettuce Dr. Henry Daniell, a molecular biologist at

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the University of Pennsylvania, works on

4 Allergy-free Milk Milk allergies are often caused by a protein

5 Reinforced Bread In 2012, scientists from the UK, Germany