Final Year Project

Chapter 1: Project Overview
1.1 Introduction
Ovaltine was a chocolate malt beverage. It was a hot malt drinks including hot chocolate and low calorie options of all your old favourites. Simply add water or milk for a high energy, delicious, caffeine free drink at any time of the day. Ovaltine drinks are full of vitamins and minerals making them ideal for all ages. Ovaltine has also been available in the form of chocolate bar, chocolate Easter eggs, parfait, cookies, and breakfast cereals, but it only available in other country. Ovaltine registered trademark of Associated British Food. Ovaltine has been a family favourite for over 100 years, providing energy, vitamins and nutrition all in one tasty, warm drink. It was originally made as a nutritional drink for children but its delicious malty taste was so good, it wasn't long before it became a nourishing daily beverage for the whole family. Ovaltine contains more delicious, concentrated chocolate that transforms into a thicker, tastier drink. A stronger taste means more saving. A richer, darker chocolaty powder makes more cups as you will need to use less Ovaltine per serving. Ovaltine, one of the leading chocolate malt beverages, is made from quality ingredients to deliver better taste and aroma. These days we're all running around doing a million and one things, and thinking about ourselves is often the last thing we do. But taking a brief pause in the day to re-gather yourself and enjoy a warming mug of Ovaltine could really do you some good. Original Ovaltine is a delicious combination of Malt, Milk and Cocoa with 11 essential vitamins and 4 key minerals. Press the pause button with Ovaltine and you'll soon be back to your brilliant best and ready to tackle the rest of the day.
1 | Situation Analysis
1.2 Problem Statement and Issues The popularity of Ovaltine in Malaysia was very low. They had less advertisement, campaign and promotion had been done in Malaysia, so this brand was not so familiar among Malaysians Ovaltine had low market share in Malaysia. Market share is a key indicator of market competitiveness, from market share this company can know how well a firm is doing against its competitors. One of the reasons that affect the market share of Ovaltine in Malaysia is too much of competitors in Malaysia market. In Malaysia, they had so many of chocolate malt beverage brands in the market. The competitors had strong concept to gain well publicity. Other than that, competitor used good advertising and market strategies to promote their products. Less information that provided to Consumer, a smart consumer they need to know more about the product, so Ovaltine need to give more information to consumers through the packaging, website, event and etc. Some of the consumer perception is the product quality of well- know and famous brand are better that infamous brand.
1.3 Objective and Aims 1.3.1 Objective To advertise the brand To let the public know the important of health To provide healthy beverage to consumer 1.3.2 Aims Build awareness of the brand Consumer get to know important of health Increase awareness and important of healthy beverage.
Chapter 2: Project Profile
2.1 Product Name Ovaltine Melted Chocolate Drinks
2.2 Product Classification Ovaltine is a healthy chocolate melted drinks, it developed in Berne, Switzerland.
2.3 Product Characteristics Product Name: Ovaltine Type: Beverage Packaging Soft Pouch Soft Pouch Soft Pouch Jar Jar Jar Soft Pouch Pricing Range RM 3.70 RM 6.90 RM 15.90 RM 5.90 RM 8.70 RM 19.30 RM 12.35 Unit Per Sale 150g 400g 1kg 200g 400g 1.2kg 35gx 20 packet
Product Ovaltine Melted Chocolate Powder Ovaltine Melted Chocolate Powder Ovaltine Melted Chocolate Powder Ovaltine Melted Chocolate Powder Ovaltine Melted Chocolate Powder Ovaltine Melted Chocolate Powder Ovaltine Melted Chocolate Drinks 3 in 1
2.4 Product Range Ovaltine Melted Chocolate Powder (Soft Pouch)

Ingredient Vitamins and Minerals
Packing Ingredient Vitamins and Minerals
Packing
Sugar, Alkalized Cocoa, Whey, Malt Magnesium Oxide, Dicalcium Phosphate, Vitamin C (Ascorbic Acid), Vitamin E Acetate, High Chromium Yeast, Ferrous Orthophosphate (Iron), Biotin, Zinc Sulfate, Niacinamide, Vitamin A Palmitate, Copper Gluconate, Vitamin B5 (Calcium Pantothenate), Vitamin B1 (Thiamin Hydrochloride), Vitamin B12, Vitamin B6 (Pyridoxine Hydrochloride). 150 g Sugar, Alkalized Cocoa, Whey, Malt Magnesium Oxide, Dicalcium Phosphate, Vitamin C (Ascorbic Acid), Vitamin E Acetate, High Chromium Yeast, Ferrous Orthophosphate (Iron), Biotin, Zinc Sulfate, Niacinamide, Vitamin A Palmitate, Copper Gluconate, Vitamin B5 (Calcium Pantothenate), Vitamin B1 (Thiamin Hydrochloride), Vitamin B12, Vitamin B6 (Pyridoxine Hydrochloride). 400 g Sugar, Alkalized Cocoa, Whey, Malt Magnesium Oxide, Dicalcium Phosphate, Vitamin C (Ascorbic Acid), Vitamin E Acetate, High Chromium Yeast, Ferrous Orthophosphate (Iron), Biotin, Zinc Sulfate, Niacinamide, Vitamin A Palmitate, Copper Gluconate, Vitamin B5 (Calcium Pantothenate), Vitamin B1 (Thiamin Hydrochloride), Vitamin B12, Vitamin B6 (Pyridoxine Hydrochloride). 1 kg
Ovaltine Melted Chocolate Powder (Jar)

Packing
Sugar, Alkalized Cocoa, Whey, Malt Magnesium Oxide, Dicalcium Phosphate, Vitamin C (Ascorbic Acid), Vitamin E Acetate, High Chromium Yeast, Ferrous Orthophosphate (Iron), Biotin, Zinc Sulfate, Niacinamide, Vitamin A Palmitate, Copper Gluconate, Vitamin B5 (Calcium Pantothenate), Vitamin B1 (Thiamin Hydrochloride), Vitamin B12, Vitamin B6 (Pyridoxine Hydrochloride). 200 g Sugar, Alkalized Cocoa, Whey, Malt Magnesium Oxide, Dicalcium Phosphate, Vitamin C (Ascorbic Acid), Vitamin E Acetate, High Chromium Yeast, Ferrous Orthophosphate (Iron), Biotin, Zinc Sulfate, Niacinamide, Vitamin A Palmitate, Copper Gluconate, Vitamin B5 (Calcium Pantothenate), Vitamin B1 (Thiamin Hydrochloride), Vitamin B12, Vitamin B6 (Pyridoxine Hydrochloride). 400 g Sugar, Alkalized Cocoa, Whey, Malt Magnesium Oxide, Dicalcium Phosphate, Vitamin C (Ascorbic Acid), Vitamin E Acetate, High Chromium Yeast, Ferrous Orthophosphate (Iron), Biotin, Zinc Sulfate, Niacinamide, Vitamin A Palmitate, Copper Gluconate, Vitamin B5 (Calcium Pantothenate), Vitamin B1 (Thiamin Hydrochloride), Vitamin B12, Vitamin B6 (Pyridoxine Hydrochloride). 1.2 kg
Ovaltine Chocolate Malt Drinks 3 in 1

Packing
Sugar, Alkalized Cocoa, Whey, Malt, Skimmed Milk Powder, Palm Oil Magnesium Oxide, Dicalcium Phosphate, Vitamin C (Ascorbic Acid), Vitamin E Acetate, High Chromium Yeast, Ferrous Orthophosphate (Iron), Biotin, Zinc Sulfate, Niacinamide, Vitamin A Palmitate, Copper Gluconate, Vitamin B5 (Calcium Pantothenate), Vitamin B1 (Thiamin Hydrochloride), Vitamin B12, Vitamin B6 (Pyridoxine Hydrochloride). 200 g
2.5 Distribution Ovaltine this product is that distributed to the customer indirectly. Ovaltine are available in supermarket and hypermarket. Customer may get the product from those are the places. Another way that customer can buy Ovaltine is through ecommerce website. Some of the trader will get the products from the factory of Ovaltine, and sell it to the customer via internet, and then they will ship the products to the customer.
2.6 Product Life Cycle
Chapter 2: Project Profile 2.7 The Brand
Ovaltine was a chocolate malt beverage band, it was developed in Berne, Switzerland, and its original name called Ovomaltine. When 1909 Ovomaltine was exported to Britain in trademark registration they led to the name to Ovaltine in English Speaking. After that they built a factory in Kings Langley to export the products well in United States. In 1915, Ovaltine was being manufactured in Villa Park, for the US market. The formulation of the Ovaltine has change over the decades and several of formulation was sold in some parts of the world. Then lastly, in US after purchasing the US rights, Nestle changed the formulation and the flavour profiles are very close to other Nestle chocolate beverage, the product called Nesquik. In Malaysia, Ovaltine was under the agency of F&N Dairies Sdn. Bhd. Ovaltine started to cooperate with F&N Dairies Sdn. Bhd from 2009. It located at Jalan University, Petaling Jaya, and F&N Dairies also supply these products to other companies, and those companies will sell Ovaltine in ecommerce website, hypermarkets and supermarket in Malaysia.
2.8 Brand Image and Implication In Malaysia, Ovaltine has lost its popularity to it competitor Nestle Milo. Ovaltine was targeted family market, and Ovaltine was sold in packs for cold serving and widely available in shops and supermarkets of Malaysia, yet it has a low profile compared to similar beverages in the market. Ovaltine was operated in Malaysia more than 10 years, and their product cycle life was dropped to peak. Ovaltine market was getting less and less even it provides a lot of health benefits to their customers.
2.9 Strength and Weakness 2.9.1 Strength Beneficial to health Naturalness Without any chemical ingredient Cheap Packaging with strong colour
2.9.2 Weakness Low market share Strong competitor in the market Less promotion and advertising Lack of suppliers Not necessary can get this product in every supermarket, hypermarket or convenience store.
2.10 Advantages and Disadvantages 2.10.1 Advantages Affordable price Reduce risk of common health concerns Eye catching Naturalness ingredient Environmental Packaging
2.10.2 Disadvantages Consumers cannot get the products in every where No taster for consumers Popularity of the product low
2.11 Unique Selling Proposition Ovaltine drinks are provided full of vitamins and minerals making them ideal for all ages.
2.12 Promotional History and Advertising Schedule Promotions can help to increase the sale of the products. Ovaltine had come out with some of the promotion to attract the consumers to help them to increase their sale. Ovaltine was offered the promotions that buy 1kg soft pouch of Ovaltine free 150g soft pouch of Ovaltine with price RM 13.90. For another promotion, Ovaltine had given the free gift like toys, stationery, and sticker to their customers once they purchase 400g of Ovaltine jar and 3 in 1 Ovaltine chocolate drinks. In 1994, Ovaltine had broadcasted a Television Commercial in Malaysia television station TV3. Below are some screen shoot of the television commercial of Ovaltine.
2.13 Positioning Statement Ovaltine drinks are provided full of vitamins and minerals making them ideal for woman between 25-30 who care about their family members health.
Chapter 3: The Company

3.1 Company Overview In Malaysia, F&N operates under the banner of Fraser & Neave Holdings Bhd (F&NHB), which is the Malaysian arm of Fraser And Neave, Limited. F&N is amongst the regions and Malaysias oldest companies and its brand enjoys the rare distinction of being a market leader and household name in many categories. A well loved brand in Malaysia, today, F&N has spread its wings to more than 20 countries worldwide and established itself as a regional player. From purveyors of carbonated soft drinks, the F&N Group is one of Malaysias diversified blue chip companies with leadership of the nations beverages and dairy products.
3.2 Business Description The Group has grown from strength to strength with an annual turnover in access of RM4 billion from its core business in the manufacture, sale and marketing of soft drinks, dairies, non-carbonated beverages as well as property. A renowned brand that has since become a household name to many, Fraser and Neave, Limited (F&N or the Group) has established itself as a leading player in the Food & Beverage arena in Singapore and Malaysia since 1883. Beyond soft drinks, it has successfully ventured into beer brewing, as well as producing, marketing, sale and distribution of dairy products such as milk drinks, ice cream, isotonic and Asian drinks, while building an increasing number of reputable brands in the region. F&Ns continuous commitment of providing the consumer with the highest quality products remains steadfast. Through the years, the Group has undoubtedly demonstrated this commitment through a vast array of nutritional products of the highest quality to satisfy changing consumer tastes. This is affirmed by the Group's leading positions in our markets across various products (for instance its isotonic drink, 100PLUS has close to 90% market share in Malaysia). Today, F&N Magnolia fresh milk provides consumers the ideal quick pep up for the day, while an ice cold Tiger Beer brings it to a satisfying close, and in between, a refreshing F&N Fruit Tree or 100PLUS can always be relied on to satisfy the palate and revitalise the soul.
With a rich and impressive heritage, a strong portfolio of brands and established distribution networks, F&N remains focus on strengthening the Groups leadership position in the Food and Beverage industry and aims to reinforce its foothold in the Food & Beverage arena geographically across the Asia Pacific region and beyond.
3.3 Company History With a unique blend of quality and innovative products that have stood the test of time, the F&N brand has resonated with Malaysians for over 128 years. The company has come a long way since 1883 when John Fraser and David Chalmers Neave formed The Singapore Straits Aerated Water Company. Years later, F&N was consolidated and the companys love affair with the food and beverage industry began. Our corporate milestones include, among others, the pioneering and launching of the sweetened condensed filled milk in 1973, launching of a complete range of icecream products in 1974, the launch of 100 Plus isotonic drinks in 1984 , and the acquisition of Nestls canned milk business in Thailand and Malaysia in 2007.
3.4 Key People 3.4.1 Non- Executive Directors Y.A.M. Tengku Syarif Bendahara Perlis Syed Badarudin Jamalullail Ibni Almarhum Tuanku Syed Putra Jamalullail Chairman & Independent Director Chairman of the Nominating Committee Chairman of the Remuneration Committee Member of the Audit Committee Y.Bhg. Tan Sri Dato' Dr Lin See Yan Independent Director Chairman of the Audit Committee Member of the Nominating Committee Mr Koh Poh Tiong Member of the Nominating Committee Member of the Remuneration Committee Mr Anthony Cheong Fook Seng Member of the Audit Committee Mr Lee Kong Yip Member of the Remuneration Committee Mr Leslie Oswin Struys Senior Independent Director Member of the Audit Committee Member of the Nominating Committee Member of the Remuneration Committee Y.Bhg. Dato' Dr Mohd Shahar bin Sidek Y.Bhg. Dato' Anwarrudin bin Ahamad Osman Member of the Audit Committee Y.Bhg. Dato' Dr Nik Norzrul Thani bin Nik Hassan Thani Mr Huang Hong Peng (Appointed on 1 March 2009) Mr Hui Choon Kit (Alternate to Mr Koh Poh Tiong)
3.4.2 Executive Directors Y.Bhg. Dato' Ng Jui Sia 3.4.3 Company Secretaries Mr Joseph Tan Eng Guan, (MIA 8834) Ms Gan Mee Ling, LLB (LS01360) 3.4.4 Group Management Y.Bhg. Dato' Ng Jui Sia Chief Executive Officer Mr Joseph Tan Eng Guan, ACCA, MBA Chief Financial Officer Mr Jeffrey Bok, B. Sc (Hons.) Group Human Resource Manager Ms Gan Mee Ling, LBB Hons (Malaya) Group Company Secretarial Manager Mr Ong Kok Choon, MA (UK), FCMA (UK), CIA (USA) Group Internal Audit Manager Mr Loong Wei Hin, B.Econs (Hons.) Harvard B. School (1991) Senior Manager, Business Development, Export Ms Tiah Oon Su, B. Econs (Accounting), LLB Monash University Australia Head, Group Legal 3.4.5 Business Unit Senior Management SOFT DRINKS: Mr James Teo Hong Beng, B.A.Sc., MBA (Resigned w.e.f 30.Sep.2011) Managing Director DAIRY PRODUCTS: Mr Tony Lee Cheow Fui, B.Com, CA (Aust.) Chief Operating Officer Mr Somsak Chayapong, BSc (Chula), PED (IMD Business School, Lausanne) Country Head - Thailand & Indochina PROPERTY: Mr Cheah Hong Chong, BSc (Hons), M.Phil (Cantab), MBA MIEM, P.E. General Manager
3.5 Location and Subsidiaries Head Office Fraser & Neave Holdings Bhd (Registered Address) Level 8, F&N Point No. 3, Jalan Metro Pudu 1 Fraser Business Park Off Jalan Yew 55100 Kuala Lumpur, Malaysia Tel: +603 - 9235 2288 Fax: +603 - 9222 7878 Email: [email protected] Subsidiaries F&N Dairies (Malaysia) Sdn Bhd 70, Jalan Universiti P.O. Box 19 46700 Petaling Jaya Selangor Darul Ehsan Malaysia Tel: +603 - 7952 6000 Fax: + 603 - 7956 6950 Website: www.fndairies.com F&N Properties Sdn Bhd F&N Point No. 3, Jalan Metro Pudu 1 Fraser Business Park Off Jalan Yew 55100 Kuala Lumpur, Malaysia Tel: +603 - 9235 2288 Fax: +603 - 9222 3782 Website : www.fnproperties.com.my F&N Beverages Marketing Sdn Bhd 1, Jalan Bukit Belimbing 26/38 Persiaran Kuala Selangor Section 26, 40400 Shah Alam Selangor Darul Ehsan, Malaysia Tel: +603 - 5101 4288 Fax: +603 - 5192 3957 Website : www.fnbm.com.my
3.6 Brand, Major Products and Services

Over the years, the brands in F&Ns stable have continued to grow from strength to strength. Our divisions have worked aggressively to deliver on the respective brand promises through bringing our customers consistent and memorable brand experiences. F&Ns underlying commitment to innovation, quality and excellence undoubtedly enabled the brands in our stable to weather the challenges of the marketplace as well as forge ahead in their respective market segments.
Soft Drinks F&N Fun Flavours 100 Plus Seasons Fruit Tree
Dairy Products F&N Sweetened Condensed Milk F&N Evaporated Milk Cap Junjung, Ideal, Tea Pot and Carnation brands of condensed & evaporated milk Farmhouse and Magnolia brands of pasteurised milk Magnolia brand - sterilised & UHT milk Fruit Tree fresh brand of pasteurised juices Sunkist brand of pasteurised juices Ovaltine melted chocolate drinks Magnolia (Ice-cream) brand
3.7 Corporate Vision To become the leading total beverage company in Malaysia and the region.
3.8 Corporate Mission To be a world-class multinational enterprise providing superior returns to our shareholders, excellent value for our customers and a rewarding career for our employees.
3.9 Companys Current promotional Strategy The F&N Out-Do-Yourself Award (2010) The Sudut IQRA - Reading Corner (2010) The F&N IT Corner (2010) Buka Puasa Treat (2010) Going Back To Nature (2010) F&N Retirees Club (2010) Sports Sponsorship (2008/ 2009) Environmental Awareness (2008/ 2009)
3.10 Product Sales History
3.11 Current Marketing Objective 3.11.1 Long Term

Become a leader in the production of food and beverage products in Malaysia.
3.11.2 Short Term Fulfill current market demands and increase sales thru various promotional activities.
3.12 Media Expenditure F&N Holdings. Bhd had making full use of the media in their promotional activities, which is radio commercial, television commercial, newspaper, magazines ads, banners and etc. Through the media, F&N can bring the message to their target audiences of all demographics effectively.
Chapter 4: Consumers and Stakeholders

4.1 Current Consumers Characteristics 4.1.1 Demographics a. b. c. d. e. f. g. Age Gender Education Occupation Income range Race & Ethnicity Geographical Location : : : : : : : 25- 45 years old Female Secondary and above Housewife, Homemakers RM 1000 - RM 4000 All races Urban
4.1.2 Psychographics a. Perception b. Learning : : Consumers who are concern about their family health. Through the media which is newspaper, radio, television advertising, website, friends and relatives. Products that beneficial to health Health conscious and taste good Healthy diet
c. Motivation & Needs d. Attitude& Personality e. Lifestyle
: : :
4.2 Stakeholders Character 4.2.1 Primary Chairman The person who is holding the office is typically elected or appointed by the members of the group.
Board of Director Directing and manage the organization to achieve company goal.
Shareholder Individual or institution that legally owns one or more shares of stock in a public or private corporation. Shareholders own the stock, but not the corporation itself. Stockholders have an immediate stake in a corporation because it is their money that is funding the company. If a company does well, their stock gains value and they earn money.
Employees A person in the service of another under any contract of hire, express or implied, oral or written, where the employer has the power or right to control and direct the employee in the material details of how the work is to be performed.
Consumers An employee's stake in the company is a job at the company. If the company does well, a good employee may see a promotion, a raise and other benefits.
4.2.2 Secondary Suppliers Suppliers or wholesalers who provide a product or service used to create or administer another company's product or service benefit if their materials are used for a reputable and well received business. If the business they are supplying does not do well, then the supplier's reputation and business may be jeopardized. Media Media help company to advertise the brand and the products, it help company deliver message to the consumers so that it can help to increase the popularity of the brand and products. Government Help the company when dealing with the environment or legislation. Bank Provide financial service to the company when the company facing financial problem especially loan and capital.
Chapter 5: Industry and Marketplace

5.1 The Industry 5.1.1 Definition of the Industry Beverage Industry
The beverage industry is enormous, with new products introduced almost daily. There are hundreds of different drinks on the market, all produced and bottled in different and attractive packaging. Worldwide, there are thousands of successful beverage companies. The food and beverage industry is a complex, global collective of diverse businesses that together supply much of the food energy to population of the world. Beverage Industry today is the information source for analyzing trends, formulation, technology and products shaping the beverage. Global market forces are driving the continual evolution of the food and beverage industry.
5.1.2 Shape of the Industry

The beverage industry includes manufacturers and distributors of soft drinks, bottled water, energy drinks, sports drinks, milk products, coffee and tea based products, nutritional drinks, and alcohol products. Some factors that influence the consumption of these products can include the time of day or other environmental situations, but consumer tastes, demographics and lifestyles are the engine that drives the demand for beverages. Large companies benefit from economies of scale in production and distribution. Small companies can compete by producing new products, catering to local tastes, or nimbly reacting to changes in the marketplace. The beverage industry is a huge part of our economy that affects many different sectors. The market for Malaysia milk and dairy products, both domestically and internationally has been growing dramatically in recent decades. As a result, Malaysia farm milk production has grown to about 190 billion per year. Although milk is processed, it is not an engineered or fabricated food. It is about 87 percent water and 13 percent solids. The fat portion of the milk contains fat-soluble vitamins. The solids other than fat include proteins, carbohydrates, water-soluble vitamins, and minerals. Fragmentation occurs when many competitors jockey for dominance in a category. For example, the top 50 companies in the beer wholesale industry account for about a third of industry revenue. The wine and spirits wholesale industry is concentrated, with the top 50 companies account for more than 70 percent of industry revenue.
5.1.3 Development of the Industry

Malaysias beverage industry is a high-growth industry. In 2010, beverage industry in Malaysia is not significantly affected by the global financial crisis, and they show upward trends, sales growth, inventory downward trend, the amount of profit grow rapidly, sharp decline in growth rate of industry losses. Beverage industry Malaysia in 2010 achieved total sales revenue and industrial sales output value in 2009 showed a 20% year on year growth rate, growth rate than the same period last year increased by 3% -5%. According to the analyst of food industry, the beverage industry presents four trends in the future. First, follow the health awareness of consumers. Second, the current beverage market in Malaysia is still dominated by children's drinks, at the same time the competition of the market will growing up. Third, they focus on consumer demand. Beverage products from single type become multiple type of product. Fourth, because of customers awareness health, beverage industry will product more fruit and vegetable drink compare with fruit drinks. The beverage industry in 2011 will achieve the overall size of the expansion of its production growth will save about 14%. Although the growth of Malaysias beverage production increases, but the level of consumption in U.S., EU and other developed countries still different with our country. The future of the beverage industry will be further healthy development of the beverage industry demand will continue to rise, more expansion of production capacity, industry structure will be further improved and optimized.
5.2 Marketplace 5.2.1 Current Condition of the Marketplace

Beverage industry has growing fast in recent year. They have more that 5 and more brands have risen up in the market. For the market of chocolate melted drinks, there are getting more and more brands existing to the market and cause current market in intensive competition. The competing of chocolate melted drinks market may in directly and indirectly. Every brand should come out with best strategies to attract consumer. Chocolate melt drink had carried out some promotion and event. It will help the chocolate melted drink industry more famous and increase the popularity of the product. However, it will help attract consumer to purchase the product.
5.2.2 Changes in Marketplace

There have a lot of competitor in the market, either direct competitor and in direct competitor, it would help the industry to increase the noticeable and leads more effort in innovate the industry growth. Yet more competitors in the market are hard to get visible with the competitor. The brand or company in this industry will need to cost more in their promotion and advertisement to increase the sale of the products.
Chapter 6: Competitive Situation

6.1 Direct Competitors Milo
Milo is very popular in Malaysia and Singapore, where the brand name is synonymous with chocolate flavoured drinks: Milo has a 90% market share in Malaysia (not the often quoted 90% worldwide share of Milo consumption), and Malaysians were said to be the worlds largest consumers of Milo. This is because Milo was once used as a nutrient supplement when it was first introduced in the country, and has thus gained a reputation as a 'must have' drink for the old and the younger generations. Milo manufactured in Malaysia made to dissolve well in hot water to produce a smooth hot chocolate drink, or with ice added for a cold drink. "Milo Vans" were often associated with primary school's sports day where pupils queued up to collect their cups of Milo drinks using coupons Milo.
Product Price Unit of sale Product Price Unit of sale
Milo Soft pack RM18.30 1kg per pack Milo Soft pack RM 35.40 2kg per pack
Product Price Unit of sale
Milo Tin RM29.70 1kg per Tin
Milo 3 in 1 Fuze RM14.90 20x 33g
Vico
Vico was a brand of chocolate milk manufactured by the company Dairy Producers. When Dairy Producers were bought out by Dairyland in 1995, the Vi-Co line was abolished. It was only available in Saskatchewan, Canada and a few parts of Manitoba. The term 'Vi-Co' is still occasionally used today in Saskatchewan as a slang term for any chocolate milk. It is a notable regional attribute for the province of Saskatchewan and is frequently cited as a defining feature of the province's folk history. In the mid-90's a punk band called Vico performed regularly in Vancouver, British Columbia, Canada. Two of the members of the band were originally from Humboldt, Saskatchewan.
Vico Pounch RM29.30 2kg per pack
Product Price Unit of sale Product Price Unit of sale Product Price Unit of sale
Vico Pounch RM 6.90 400g per pack Vico Pounch RM3.90 200g per Tin Vico Tin RM18.90 1.2kg
Cadbury
In 2008, Cadbury launched a new form of drinking chocolate - Hot Choc Chunks. Just add these chunks of real chocolate to hot milk, to create a mug of rich and creamy hot chocolate. Cadbury Highlights was first developed in 1991 to cater for those looking for a lower-calorie alternative to drinking chocolate. The drink contains only 40 calories and less than 1% fat per serving, while still having the rich taste of the Cadbury cocoa bean. In Malaysia, Cadbury launched the 3 in 1 hot chocolate drink only.
Cadbury Hot Chocolate Drink 3 in 1 RM12.00 400g
6.2 Indirect Competitors Vitagen
Back in 1977, Malaysia Milk Sdn. Bhd. (MMSB) introduced VITAGEN to Malaysians, making VITAGEN the first cultured milk in Malaysia before other brands of cultured milk drinks. The introduction of VITAGEN also helped to educate the Malaysian public about the benefits of cultured milk drinks for a healthy digestive system. Today, VITAGEN is still the popular choice for cultured milk for many Malaysians and continues to satisfy the increasing needs of health-conscious Malaysian consumers. VITAGEN is a cultured milk drink made by fermenting skim milk with billions of live probiotic cultures to help maintain a healthy digestive system. These probiotic cultures are specially imported from Chr. Hansen Laboratory in Denmark, a world leading cultures laboratory supplying high quality probiotics worldwide. Probiotic cultures in VITAGEN can withstand bile and acidic stomach juices and reach the intestines alive to inhibit the growth of harmful bacteria in the intestines. With the presence of these probiotic cultures, the environment in the colonic flora becomes unsuitable for harmful bacteria to grow. They also remove toxins and waste from our body. The longer waste matter remains in the lower intestines, the higher the chances of intestinal distress and possible cancer when carcinogens attack normal cells. Thus, VITAGEN contributes positively to our health because it promotes good colon health and improves our immune system. It increases resistance to harmful bacteria and takes care of good digestion.
Product Price Unit of sale Product Price Unit of sale
Vitagen RM3.9 5x15ml Vitagen less sugar RM4.5 5x15ml
Baskin Robbins
Baskin Robbins is a ice-cream brand in the market. Baskin Robbins offer over more than 31 type flavor of ice- cream. Baskin Robbins ice- cream is sugar free, fate free, and light. This brand was provided more health benefit to their customers. The ice-cream product that selling in Malaysia is fully imported from United States. And we are just as innovative about the places and the ways we serve these fine products to our customers. Baskin Robbins primary objective is to make each and every visit to Baskin-Robbins memorable and deliciously fun. We intend to stay Malaysians Favorite Premium Ice Cream in every way. Variety and quality are the main ingredients of Baskin Robbins' international appeal. Feast on our range of custom-made desserts ice cream rolls, clown-cone, cake slice and more made with World's best ice cream flavors. It's hard to imagine walking into an ice cream parlor and being limited to just vanilla, chocolate and strawberry. But that was the extend of ice cream variety during the first half of last century. From its initial concept of a flavor for every day of the month, hence the big "31" - Baskin Robbins has created more than 1,000 different flavors. Each year, more than 100 different flavors rotate in the stores.
Haagen Dazs
Haagen- Dazs is one of the ice-brand that we can found in Malaysia market. Haagen- Dazs find is purest and finest ingredients in world and craft them into the best ice- cream, sorbet, and frozen yogurts. Haagen- Dazs provide variety of ice- cream and flavour. The ice cream comes in many different flavors and is a "super-premium" brand, meaning it is quite dense (very little air is mixed in during manufacture), uses no emulsifiers or stabilizers other than egg yolks, and has a high butterfat content. Haagen-Dazs is also meant to be kept at a temperature that is substantially lower than most ice creams in order to keep its intended firmness. It is sold both in grocery stores and in dedicated retail outlets serving ice cream cones, sundaes, and so on. From the beginning, Haagen-Dazs has been special. Its mouth-watering flavors, dense, creamy texture, and innovative products all reflect a deep commitment to quality. It took six years, for example, to find strawberries sweet enough to carry the Haagen-Dazs name. Now sold at retail and in more than 900 Haagen-Dazs Shops in 50 countries, Haagen-Dazs ice cream is savoured around the world. Decades come and go, but Haagen-Dazs remains true to its passionate commitment to quality, creativity and, above all else, taste.
Chapter 7: SWOT ANALYSIS
Chapter 7: SWOT Analysis

7.1 Strength
It providing energy, vitamins and nutrition all in one tasty, warm drink. In compliance with HALAL and Hazard Analysis and Critical Control Point (HACCP) food safety standards requirement. Ovaltine contains more delicious, concentrated chocolate that transforms into a thicker, tastier drink. Color of packaging (red) can gain the attraction of the customers. Ovaltine has been a over 100 years in the market. Ovaltine contained Magnesium Oxide, Dicalcium Phosphate, Vitamin C (Ascorbic Acid), Vitamin E Acetate, High Chromium Yeast, Ferrous Orthophosphate (Iron), Biotin, Zinc Sulfate, Niacinamide, Vitamin A Palmitate, Copper Gluconate, Vitamin B5 (Calcium Pantothenate), Vitamin B1 (Thiamin Hydrochloride), Vitamin B12, Vitamin B6 (Pyridoxine Hydrochloride). The price of Ovatine is affordable to the consumers and it is cheaper than their competitor. Consumers can get the selling product from every way such as hypermarkets, supermarket, and convenience shop. Original Ovaltine is a delicious combination of Malt, Milk and Cocoa with 11 essential vitamins and 4 key minerals. Natural ingredients and free form preservation.
7.2 Weakness
Lack promotion cause people unaware about the brand. Less information provide to consumers, so that they do not know the benefits of Ovaltine. Less popularity in Malaysia and Singapore, even it provides more health benefits compare with other competitor band. Lack competitive strength, and low market share. Less activity of promotion and event, to promote the product and brand. Under organized by other beverage company, because the company only concentrates in their own products. The core activity and distraction that Ovaltine did before are not effective enough so the stop to organize this kind of activity. Lack morale and commitment.
7.3 Opportunity
Promote the product by using promotion and advertisement will help for market development. Reset the market strategy Nowadays parent are more care about their children health. Due to the technology and innovation now, Ovaltine can come out more new products for easy portable, to attract consumers. Ovaltine should have their own website to let the consumer get more information from there. More healthy based products are introduced in global market especially with incompressible quality. Ovaltine can export their product to cool weather country to increase their sale. Product price are affordable In compliance with HALAL, attract more Muslim consumers and may export to other Muslim countries.
7.4 Threat
No R&D (Research and Development). Environmental will affect the sale of Ovaltine. There have too much of competitor in beverage industry of Malaysia. With the demand of chocolate drinks increase, many brands have been introduced in this chocolate drinks market. The prices the product increase is cause by inflation. Consumers prefer soft drinks compare than healthy drink. Lack of new technologies that use for produce the product, it may become the quality of the product decrease. Without IT development will cause inconvenience of customers,
7.5 SWOT ANALYSIS TEMPLATES
STRENGTH In compliance with food safety standards requirement. Ovaltine contains more health benefits. Attractive of the color representative. Ovaltine has been a over 100 years in the market. Cheaper price Consumers can get the product easily. OPPORTUNITY Promotion helps market development. Reset the market strategy technology and innovation now More healthy based products are introduced in global market. Exportation of product Product price are affordable In compliance with HALAL
WEAKNESS Lack promotion Less information provided Less popularity Lack competitive strength, and low market share. Less activity of promotion and event. Lack morale and commitment.
THREATS No R&D (Research and Development). Environmental will affect the sale. too much of competitor With the demand of chocolate drinks increase, competitor increase. Inflation. Consumers prefer soft drinks compare than healthy drink. Lack of new technologies Without IT developments cause inconvenience of customers.
Chapter 8: Strategic Target Audience

8.1 Proposed Primary Target Audience 8.1.1 Demographics a. b. c. d. e. f. g. Age Gender Education Occupation Income range Race & Ethnicity Geographical Location : : : : : : : 25- 45 years old Female Secondary and above Housewife, Homemakers RM 1000 - RM 4000 All races Urban
8.1.2 Psychographics a. Perception b. Learning
: :
: : :
Consumers who are concern about their family health. Through the media which is newspaper, radio, television advertising, website, friends and relatives. Products that beneficial to health Health conscious and taste good Healthy diet
8.2 Proposed Secondary Target Audience 8.2.1 Demographics a. b. c. d. e. f. g. Age Gender Education Occupation Income range Race & Ethnicity Geographical Location : : : : : : : 13- 15 years old Male and Female Primary and Secondary Student RM500 and below All races Urban
8.2.2 Psychographics a. Perception b. Learning
: :
: : :
Consumers who are concern about their health. Through the media which is newspaper, radio, television advertising, website, friends and relatives. Products that beneficial to health Health conscious and taste good Healthy diet
Chapter 9: Research Development

9.1 Market Research Isetan KLCC
Alamanda Putrajaya( Carrefour)
Alamanda Putrajaya( Cold Storage)
Pacific Batu Pahat Mall
I had visited a few of hypermarkets and supermarkets to do the market research of Ovaltine to research about products price and placement with its competitors. The places that I went are Isetan KLCC, Alamanda of Putrajaya, Pacific of Batu Pahat Mall in Johor. Based on my observation, most of the hypermarkets are selling 2 or 3 Ovaltine s products only, and they didnt sell whole series of Ovaltine products. Price if Ovaltines products in 3 of these places are totally different and I think that maybe 3 of this hypermarket targeted different type of target audience. Other than, expect Isetan KLCC, most of the hypermarket sell Ovaltines products with free gifts, like biscuits, milk, corn flake and so on. Most of the Ovaltines products are not place on the eye level view place, and it will become one of the factors that affect the sale of Ovaltine.
9.2 Market Observation

I had done a market observation in few places within 3 days. There have not many of people purchase Ovaltines chocolate melted drinks in hypermarket and supermarket. I chosen 3 of different places to do my observation because they target different type of target audience so that I can know which type of the consumer will attract by Ovaltine. I went to Isetan of KLCC in first day. Second day, I went to Alamanda of Putrajaya and last day I went to Pacific of Batu Pahat Mall. Some of the consumers will stand in front the products and they will start compare the price of Ovaltine and other products. Some of the consumer will look through the ingredient of the product. The gift that was offered by Ovaltine also gains the attraction of audience. Isetan KLCC 9 Nov 2011 6pm -8 pm Alamanda (Putajaya) 10 Nov 2011 6pm -8 pm 5 1 1 Pacific (Batu Pahat) 11 Nov2011 6pm -8 pm 2 0 0
Milo Ovaltine Vico
3 0 0
According to the observation that I done, I realize that people more interested with the brand that they know. Milo is a very popular brand in Malaysia, so it is first choice of consumers. Even Ovaltine provided cheaper price and free gifts, also very hard to persuade consumers.
9.3 Online Survey

I am a student from Multimedia University (MMU), Faculty of Creative Multimedia (FCM) majoring in Media Innovation. This questionnaire designed is exclusively for the purpose of Final Year Project research. All information that you provided will be kept strictly confidential. Hope you can spare 5 to 10 minutes to answer this questionnaire. Your cooperation will be highly appreciated. Thank you for your kind cooperation. * Required 1. Gender * Male Female
2. Age * 15- 20 21- 25 26- 30 31- 40 41- 80
3. Occupation * Student Homemaker Working Adults Other:
Chapter 9: Research Development 4. Monthly Income/ Allowance * RM 1 - RM 599 RM 600 - RM 1500 RM 1501 - RM 3000 RM 3001 - RM 5000 Other:
5. Nationality * Local ( Malaysia) Other:
6. Which of the following brand of melted chocolate drinks you purchased? * Milo Vico Ovaltine Dutch Lady Cadbury Other:
7. Do you know the benefits of melted chocolate drinks? * Yes No Other:
Chapter 9: Research Development 8. Do you like melted chocolate drinks? * Yes No Other:
9. Where did you usually purchase melted chocolate drinks? * Mini market Hypermarket ( i.e. Giant, Tesco) Other:
10. Which type of promotions will attract you to buy melted chocolate drinks? * Buy 1 get 1 free Tie in promotion with free gifts Discounts Discount vouchers
11. What is the factor you took for when you are buying melted chocolate drinks? * Taste Brand Price Health Other:
Chapter 9: Research Development 12. Are you familiar with Ovaltine? * Yes No
13. What do you think about Ovaltine?
14. How you get to know Ovaltine? Newpapers/ Magazine TV/ Radia commercial Recommend by friends or relatives Find it by yourself Other:
15. Do you want to try the products of Ovaltine? Yes No
Chapter 9: Research Development 16. Base on your experience, how do you rate for Ovaltine? Excellent Good Average Poor Bad
9.4 Interview First, I sent an email to the F&N Dairies Company and then gave the relative information for me, and after that, I was use phone call to interview the company because according to the person in charge it is more comfortable for him.
Here are the email that we use for communicate,

From: [email protected] To: [email protected] Subject: RE: FINAL YEAR PROJECT OF MEDIA INNOVATION Date: Mon, 7 Nov 2011 09:00:25 +0800 Dear Xin Yi, Here are the only television commercial that we have. Thanks Best Regards, Jinny Chong
Dear Jinny, Hi Jinny, Ho Xin Yi here. Thanks for your coporate, you kind assistance is highly appreciated. Thank you very much. Regards, Ho Xin Yi From: [email protected] To: [email protected] Subject: RE: FINAL YEAR PROJECT OF MEDIA INNOVATION Date: Fri, 4 Nov 2011 09:11:09 +0800 Dear Xin Yi, This is Jinny here, I think you can get the information from here http://new.fndairies.com/product-others-ovaltine.html http://www.fn.com.my/ 2 of this website I think it is enough for your projects. if any problem you can give me a call during the office hours. Me and my colleagues will try to provide the information for your but the information about Ovaltine are limited. Thanks Best Regards, Jinny Chong 47 | Situation Analysis
From: [email protected] To: [email protected] Subject: FINAL YEAR PROJECT OF MEDIA INNOVATION Date: Wed, 2 Nov 2011 16:00:36 +0800 Dear Ms Jinny, Hi Ms Jinny, I am Ho Xin Yi, final year student of Multimedia University, Faculty of Creative Multimedia. I had been assigned to do my Final Year Project and needs a support from your company to get the information about Ovaltine to help me complete my FYP project. I also attach with my recommendation letter. Hope you can reply me when you are free. In addition, I would like to wish thousand of appreciation for the kind help. Thanks Regards, Ho Xin Yi
Other that the email, I had call the person in charge to get the information of Ovaltine, about market price and the advertisement history of Ovaltine, but Ms Jinny told me that Ovaltine company actually are facing some organization and some financial problem, so that they do not have any promotion within this few years. F&N cooperate with Ovaltine pass 4 year ago so the information they can provide are limited also.
Chapter 10: Precedent Studies

10.1 Advertising Strategy According to the information that given by company, in this few years Ovaltine do not have any promotion or advertising to promote their products, that because Ovaltine having some organization and financial problems, so they are not focusing on the advertising. It is one of the issue affect the sale of Ovaltines Products. According to the information that provided, in 1994, Ovaltine had broadcasted a Television Commercial in Malaysia television station TV3. Below are some screen shoot of the television commercial of Ovaltine. That is the only television commercial that Ovaltine have.
10.2 Precedent Studies
Chapter 12: Appendices
Chapter 11: References

C.W.Mackie PLC (2009) Ovaltine goodness - Good for the whole family [Online] Available: http://www.cwmackie.com/Ovaltine.html [2011 November 25] F&N Dairies (2010) [Online] Available: http://new.fndairies.com/product-othersovaltine.htm [2011 November 25] F&N Dairies (2010) [Online] Available: http://www.fn.com.my/ [2011 November 25] Beverage industry today (2010) beverage marketing [Online] Available: http://www.fn.com.my/ [2011 November 23] Beverage industry (November 14, 2011) Quest for the crown [Online] Available: http://www.bevindustry.com/articles/85059-quest-for-the-crown [2011 November 22] Godfrey.T & Reichelt.J (1 Jan 1982) Industrial enzymology: The application of enzymes in Industry Eda Atilgan & Serkan Akinci (ND) Determinants of the brand equity: A verification approach in the beverage industry

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What is Ovaltine and its history?

What is Ovaltine and its history?

What are some of the issues Ovaltine is facing in the Malaysian market?

What are some of the issues Ovaltine is facing in the Malaysian market?

Chapter 1: Project Overview

Chapter 1: Project Overview

Chapter 1: Project Overview

Chapter 2: Project Profile

Chapter 2: Project Profile

2.1 Product Name Ovaltine Melted Chocolate Drinks

Chapter 2: Project Profile

2.4 Product Range Ovaltine Melted Chocolate Powder (Soft Pouch)

Packing Ingredient Vitamins and Minerals

Packing Ingredient Vitamins and Minerals

Chapter 2: Project Profile

Ovaltine Melted Chocolate Powder (Jar)

Packing Ingredient Vitamins and Minerals

Packing Ingredient Vitamins and Minerals

Chapter 2: Project Profile

Ovaltine Chocolate Malt Drinks 3 in 1

2.6 Product Life Cycle

Chapter 2: Project Profile 2.7 The Brand

Chapter 2: Project Profile

Chapter 2: Project Profile

Chapter 2: Project Profile

Chapter 3: The Company

Chapter 3: The Company

Chapter 3: The Company

Chapter 3: The Company

Chapter 3: The Company

Chapter 3: The Company

Chapter 3: The Company

3.6 Brand, Major Products and Services

Chapter 3: The Company

3.10 Product Sales History

3.11 Current Marketing Objective 3.11.1 Long Term

Chapter 3: The Company

Chapter 4: Consumers and Stakeholders

Chapter 4: Consumers and Stakeholders

c. Motivation & Needs d. Attitude& Personality e. Lifestyle

Chapter 4: Consumers and Stakeholders

Chapter 4: Consumers and Stakeholders

Chapter 5: Industry and Marketplace

Chapter 5: Industry and Marketplace

5.1.2 Shape of the Industry

Chapter 5: Industry and Marketplace

5.1.3 Development of the Industry

5.2 Marketplace 5.2.1 Current Condition of the Marketplace

5.2.2 Changes in Marketplace

Chapter 6: Competitive Situation

Chapter 6: Competitive Situation

Product Price Unit of sale Product Price Unit of sale

Product Price Unit of sale

Milo Tin RM29.70 1kg per Tin

Product Price Unit of sale

Milo 3 in 1 Fuze RM14.90 20x 33g

Chapter 6: Competitive Situation

Product Price Unit of sale

Vico Pounch RM29.30 2kg per pack

Chapter 6: Competitive Situation