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Industry Codes and Regulations

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    It is actually a yardstick for measuring a market environment looks at various listed factors, in a selected market with a view to finding out how they are related to he business nowadays. On the other hand, a marketing environmental analysis is an essential step in understanding the external local, national or international forces that might affect a small business. These factors are largely outside our direct control, however can adapt the business and marketing strategy to take advantage of the opportunities they present while minimizing the potential threats.

    Another analysis which is commonly use to undertake such review beside PEST is PESTLE, which stand for Political, Economic, Social, Technology, Legal and Environmental factors, which need to be consider as well. First step or applying the PEST to a market environment analysis is to conduct a study of the political factors that may either have a positive or negative effect towards the company. For example, the various codes and regulations imposed on different industrial sectors. This might be seen under the construction industrial sector. What is the different between an Environmental Analysis and SOOT Analysis?

    Normally few companies use several types of analyses as a barometer for health food business industry. Some would reveal on how the company can better utilize the cash flow, while others show how the price of inputs may double in he coming months. A SOOT analysis and an environmental analysis are the additional tools used by the organizations. Though both, giving the businesses insight into potential barriers and shortcomings. Environmental Analysis Environmental analysis is a survey of the business landscape to determine how the external variables will affect its decision making, environmental influences as either source or proximity.

    Definition of sources is including the political, economic, social and technological factors, and these factors form of what it’s known as PEST analysis. Business is not always in a position to control these rabbles, but it can only plan for them and make the decisions accordingly. Company normally uses an environmental analysis to prepare for a variety of potential scenarios. For instance, an organization may prepare for a downturn in the economy by drafting several production schedules which are contingent on different levels of consumer demand.

    Benefits of Environmental Analysis A PEST analysis prepares the business for handling an external factor. PEST analysis helps business be proactive with market trends, instead of reacting to market forces. PEST analysis gives the business the tools to prepare for potential asks. For instance, this type of analysis may disclose that government legislation will increase the cost of raw material by 20%, or if the business can preempt this as a possibility, it can switch vendors, stock up on raw materials or find cheaper alternatives.

    Such preparation ultimately saves more on company moneys and in turn gives it a competitive advantage. SOOT Analysis A SOOT analysis reviews the business’s strengths, weaknesses, opportunities and threats. As like the case with an environmental analysis, a SOOT analysis also surveys external circumstances. However, this type of analysis also sakes into consideration of its internal components. Within the strengths and weaknesses section of the SOOT analysis, the company assesses factors unique to the organization.

    For example, this component may include the business’s leadership abilities, patents and intellectual property, technology available within the company and the strength of its brand name. Company can control these factors so it attempts to strengthen its best assets and improve its apparent weaknesses. Benefits of a SOOT Analysis A SOOT analysis offers a well-rounded, holistic picture by revealing both internal and external issues. Though the “opportunities” and “threats” sections of the analysis do not differ much from a PEST report, however, the “strengths” and “weaknesses” components highlight the internal issues of the organization.

    More additional questions about how these strengths, weaknesses, opportunities and threats can help the business prepare for future event as well. This turns the SOOT analysis into an insightful tool that allows the company to capitalize on future possibilities and avoid potential pitfalls. QUESTION 2 Conducting a market research and report the Malaysian consumer’s behavior with particular reference to food. Consumer behavior signifies on how individuals make their decisions to utilize their valuable resources such as time, money and effort, or consumption related matters, such as what they buy, when they buy and how they buy.

    Thus, refers broadly to the study of individuals and processes consumers like search, select, use and dispose of products, services, experience or ideas to satisfy on their needs as well as its impact on the consumer and society buy (via Priest, Carter and state, 2013). Consumer behavior can be defined as well as study of selected consumers either in individuals or roofs in buying, using or disposing of products, ideas, services or experience to satisfy own desires and needs.

    The satisfaction of desires and needs are closely related to hunger, personal status and thirst to love as well as spiritual fulfillment (Solomon, 2007). Consumer behavior consider as dynamic because the changes of perception, feelings and activities of individual purchaser or a group consumers. There are various type of marketing strategies, is the answer to the question of consumers’ response. As many other markets, the fast food market all over the world, including Malaysia, has been growing fast and becoming more popular.

    Along with this positive development in the fast food industry, the food habit and overall consumption pattern of the inhabitants of every country of the world has also been changing with a similar pace. Fast food industry is chosen in order to investigate the consumer behavior in consuming fast food which can help in Forecasting as well as developing a proper marketing strategy for the food industries in Malaysia. Market research has proven of the consumer behavior, where the interaction between changes in price and quantity consumer demand is an important context.

    As for the fast food market is highly nominative and food items are close substitutes, the changes in price of the food items can have a significant influence on the quantity of purchase. Reduction in price of the fast food will cause a consumers increase in quantity of demand of that food items. However, consumers’ satisfactions can categories into six (6) which are:- Food Quality Service Food variety Atmosphere Food price Location Quality of the foods also associated with the nutritious and health ingredients that provide extra food.

    Researched shown that satisfied consumers testify that any fast food outlet is quality oriented and good for health are certified Wailing and Larson, 2009). The quality of the fast food should be positively influence consumers satisfaction. Service provided by the fast food outlets to the consumers should positively influence consumer satisfaction, where the satisfactions occur when a company intentionally utilizes the services as to engage the individual consumers in ways that creates a memorable event. Wide range of varieties of foods provides more choices to the consumers.

    The varieties of foods should positively influence the satisfaction of the food consumers, and therefore, one of the most promising things to start is maintain wider varieties f foods. The atmosphere of the fast food outlets should positively influence the consumer satisfaction for who, used to come to the restaurants for seeking enjoyment, clean, cozy and quite atmosphere of the restaurant, which provide them the enormous satisfaction. Prices are important factors that can affect the demand of purchasing goods and services negatively.

    Therefore, cheaper prices of the foods can stimulate the consumers to consume more frequently and can induce more satisfaction. Location is one of the most important factors in business and marketing relationship. The location of the food outlets would have good communication systems which are conducive to build up a strong consumer relationship and to boost up overall satisfaction. Example of McDonald’s in Malaysia In December 1980, McDonald’s Corporation, USA has approved and gave license to Golden Arches Restaurants SD. Bed. To run McDonald’s restaurants in Malaysia. The first ever McDonald’s Malaysia restaurants was opened at Clan Buick Binging, Koala Lump, which is in the heart of the big city on 29 April 1982. Now, there are 204 restaurants situated nationwide and currently there are about 20 to 25 restaurants will be opened annually as its expanding steadily. Moreover, McDonald’s employed almost 10,000 local citizens in different states, to success the restaurants and 120 support staffs at its head office to handle day to day operation of McDonald’s business (McDonald’s, 2011).

    It is obviously that McDonald’s is very successful company and leader in the fast food industry in Malaysia, which attracts millions of customers visits to the restaurant every day. Thus, this research is basically about the consumer behavior towards the fast food especially McDonald’s. The main objective of this research is to discover the factors that influence consumer behavior to choose fast food as their meal. Consumer Behavior Analysis Factors which affecting the Consumer Behavior Service Quality:- is actually the judgment from consumers’ evaluation of the service they received.

    Service quality can be divided into technical quality, where what is done and functional quality or how it is done. It’s also being further explained as two dependent variables which are perceived service and expected service. Expect service is referring to consumer’s previous experience with a service, which might influence the consumer behavior, while the perceptions of consumer towards the service itself are called perceived service.

    In McDonald, DOD service quality is very essential because it is one of the fundamental determinants of consumer satisfaction which directly influence the success of the company in the industry. Presently, every fast food company has to pay more focus on their service quality by their own different ways in order to boost up the satisfaction level of consumers, and indirectly raise the intention of purchasing as well as loyalty towards the restaurants. Once the restaurants successfully attain or go beyond the anticipation and expectation of consumers, definitely consumers will be satisfy with the services that provided.

    From time to time, McDonald has change from being a product centric approach to customer centric approach due to the high expectation from the consumers and competition from other companies. Product Quality:- means advancing people’s life expectancy and cut down the mortality rate of society (Aware, 2011). As high competition and environmental influences rise internationally, there are lots of hard work of other fast food companies on quality improvement and cost saving in order to satisfy consumers and protecting consumer behavior as well as increasing the organization profit and value.

    Quality management is being judged as competitive weapon, in which it shows the competitive advantages to consumers to attract more business, product quality is totally will influence the company profit since the quality of product mirrored out the reputation of the McDonald’s. Relationship between product quality and profit of company is that product quality being enhanced will increase the reliability and production of certain product. From the study, they found out that the product quality was ranked at the first place and then followed by price (Antipodal, 2003).

    Promotion: – armorial are created by marketers to tell the information about their products or service, in order to attract consumers to buy them. Promotion strategies normally experience by consumers, which might influence consumer behavior due to the social and physical aspects from the environment factor. McDonald’s always put more effort to promote them as a global image and they concern about the people from the market they are entering. McDonald’s has different types of advertising campaigns in different countries and globally to suit the culture and society of people from different background. As an example, UK

    McDonald’s appointed England legendary footballer, Alan Shearer to promote their products while in French, they used French world cup winner goalkeeper Fabian Breather (Vaginal, 2001). Besides, McDonald’s also concern about the public relationship with customers, know and understand more about their customers. In 1997, McDonald’s had broadcasted that they will corporate with Walt Disney, which allowed them to share special marketing rights from food to films for the following ten years. This is actually the beginning of the producing toys, which include in their “Happy Meals” for films like Toy Story, Madagascar, Alvin and the Chipmunks and etc.

    Furthermore, McDonald’s, UNESCO and Walt Disney corporate together to launch a program called Millennium Dreamers Global Children’s recognition program, which allowed young people from the whole world have the chance to express their dreams, ideas and plans as well as hopes in the future (Vaginal, 2001). In addition to it, good product quality also includes the taste of the foods. Every consumer wants to eat tasty foods, as a general motive to satisfy their needs towards food and increase their appetite. Furthermore, the taste of foods also has to localize to suit the local taste and lawful the needs of consumers (Gordon Chug, 2009).

    For instance, the taste and flavor of McDonald’s French Fries is magnificent and marvelous for a lot of consumers (by Closer, 2001). Place: – defined as location where products and services being distributed, to be purchased by the consumers. It can contain every physical stores and virtual stores on the internet. The choice of place has always be an important factor to be considered when operating a business. McDonald restaurant for example, mostly being set up in a place where there is a significant in number of moving people.

    Currently, McDonald’s restaurant are ore than 32000 outlets in 117 countries all over the world. The effectiveness of manages its capital expends by strategic expansion in every country. Every year McDonald’s operate hundreds of new restaurants globally to undergo strategies that create a gap between its competitors in term of accessibility and convenience to consumer (by Swankiest et al, 2001). Annual report of the company in year 1994 shoes that McDonald’s had launched a strategy called, “in- your-face” strategy. Report stated that “McDonald’s want to have a site wherever people live, work, play or gather.

    Our convenience strategy is to monitor their hanging lifestyles of consumers and intercept them at every turn. As we expand customer convenience, we gain market share” (by McDonald’s USA annual report, 1994). This is because McDonald’s understand that consumers prefer to go nearby to buy food for saving time and cost. So, McDonald’s want that, there are their outlets everywhere in the world which can bring convenience to consumers to buy foods. Moreover, most of the McDonald’s outlets operate 24 hours every day to serve their consumers and people may taste the foods of McDonald’s whenever they want to (by Jaeger, 2007).

    In addition, McDonald’s also provide livery service to consumer’s home, which bring convenience to consumers who do not like to queue up in the crowed restaurants, but prefer to eat at home while doing their works. Drive-thru system also being introduced by McDonald’s in most of the outlet to serve consumers, who plan to take away the food. Economic Environ meet The economic condition in Malaysia currently slowing, as the household incomes and business activity decelerates due to the effects of current economic down turn. However, McDonald Malaysia is still not in a recession period as compared to Singapore or United States.

    Even with the depreciation of Ringing, real SAG growth is forecast an increase from 5. 0% to 5. 2% in 2009 (by Euro Monitor International 2009 based on the World Bank). Even with current economic condition, McDonald’s remain optimistic. According to Business Times (2009) “McDonald’s Malaysia expect its delivery service business to jump 40% this year as it’s a new call center can handle more orders”. They invested over two million ringing for setting up the new call center. In addition, the Managing Director Zamia Safer said, the company plans to invest 80 million ringing to open between 15-20 new restaurants. QUESTION 3

    Present your marketing plan for the above company (incorporating the various marketing mix and highlighting the specific marketing tools and techniques to be applied) Consumer expenditures for fast food in Malaysia rose during the end of year 2000, followed by the recovery of Malaysia’s economy. The increasing number of new establishments such as fast food franchises, fancy restaurants and gourmet bakeries around Malaysia has shown a significant growth in this sector. Food spending is around 56% of total consumer expenditures in Malaysia, and consumer spending on leisure and recreation which made up of 13% of total nonuser spending.

    Mix marketing apparently must focus on the product, price, promotion and placement of the items, in order to make it successful. Marketing strategies must feature customer orientation, input and accessibility in the fight to the top of the market. Products Strategies Product, service or program must include both, tangible and intangible elements. Tangible is of course, are those things that the consumer can see, touch, feel, taste or smell and intangible is include such things as the image of the offering, in which, it would include the image of the organization making the offer, the psychological aspects of the pricing.

    For example, breakfast menu like Big Breakfast, Chicken Deluxe Sandwich and etc. , were the examples of how the company tried to appeal to a wider range of consumers. By retain the key strengths quality and consistency will make the innovation and experimentation results creating a new profits of the company. Developing a new products is crucial to any business even those that successfully relied on a limited menu for many years. As a consumers tastes change, menu innovation can injects enthusiasm, allowing the business to explore the markets which previously overlooked or been ignored.

    Product: Value – priced, fast-serviced meal. Pricing strategies Customers’ perception is an important determination on the price charged. Normally customers draw their own mental picture of what a product is worth. Product is more than physical items, which are also, have its psychological for the customers. It is dangerous to use low price as a marketing tool as the customer may feel that the quality of the products is being compromised. Very important that when deciding on the price, it is needed to be fully aware of the brand as well as its integrity.

    Further consequence of the price reduction is that competitor’s match prices may resulting in no extra demand. This means, the profit margin has been reduced without increasing the sales. By offering a quality food quickly to customers at a good value is a great pricing structure to support. By offering a variety of menu items that appeal to variety of people from those who just want a great burgers, to those who just want a quick health meal, by offering an affordable menu, combination meals and free toy with Happy Meals. Customers are “Value Pricing’ which means offering just the right combination f quality and good service ATA fair price.

    Price is what the customer pays. It includes direct and indirect costs as well as opportunity costs. The benefits of the product have to be a great enough to warrant the price. Price includes all cost associated with the product, service as well program. Promotion Strategies Some customers do go to the fast food restaurant for taking a quick break from their days activities because it provide a ten second faster that other food restaurant, which are the competitors. Putting a certain phrases to products is important to catch people’s interest and attention.

    For example, McDonald, the marketing executives putting previously the phrase of “Have you had your break today? ” while it’s continue with a new developing of ideas with “You deserve a break today’, and now, it change to “I’m Loving’ It! Even though it does not seem to have so much punch as the earlier catch phrase, but yet still, it seems to be a favorite. McDonald’s has taken price competition out of the picture because their customer feels that they have gotten a quality, convenience, service as well as value and yet, they still makes all customers feel like they are getting a break in hectic day.

    Quite important that by using the phrase it will make business products looks different from the others and it is actually a very successful way of differentiating the products from other competitors. Creating catch phrases are only one kind of promotion and other kind of promotions is needed as well to keep the products at the top of the industry. Engaged in many short-term incentives for consumer promotion through limited value menus, promotional games to promote old or new items on the menu, for example Happy Meal Toys, Big Mac Football Contents etc. And indirectly it can be one of the active life style.

    Promotion need to include all forms of communication been used to communicate on the benefits of the products been offered to the target markets. The objective is to persuade the consumers in such a way that they recognizes, the products which been offered is uniquely qualified to meet their needs. The term promotion mix is commonly used to refer to the type of communication that is available, such as advertising, public relations, personal selling, publicity and sales promotion. Some would include the direct marketing. However, word of mouth, though seldom discussed, is to believe the powerful promotion.

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    Industry Codes and Regulations. (2018, May 15). Retrieved from

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