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CHAPTER 1 : PRODUCT OVERVIEW

1.1 Introduction

A&W Restaurants is a chain of fast-food restaurants distinguished by its draft root


beer and root beer floats. A&W was the bought over by KDU in 2001 and in 2008
embarked on an aggressive expansion drive to revamp and expand its reach. A&W
(Malaysia) Sdn Bhd has outlets in Penang, Selangor, Kuala Lumpur, Negeri
Sembilan, Melaka, Johor, Pahang, Terengganu and Kelantan. The company was
founded in 1919 and is headquartered in Petaling Jaya. It operates as a subsidiary of
KUB Malaysia Bhd. In 1963, A&W Malaysia entered The Malaysia Book of Records as
the 1stFranchise Restaurant in Malaysia. A&W Jalan Tuanku Abdul Rahman (Batu
Road) was the first fast food franchise restaurant in Malaysia and Asia. The
restaurant is still in operations until today. A&W serves typical fast food menu of
burgers and onion fries, as well as hot dogs. Their signature A&W Root Beer is
made from real cane sugar and a proprietary blend of herbs, bark, spices and
berries where the mug would be kept in the freezer prior to being filled with root
bear and served to the customer. Other than that, they also serve sweet and treats
like waffle and ice cream. Customer can choose to walk-in dining through the drive
through section, and delivery section. A&W is different from others fast food
restaurant like Mcdonalds, PizzaHut, KFC, Subway and etc. A&W is committed to
provide customers with safe, delicious meals and operation restaurants that meet
the highest food safety standards. A&W mission is to satisfy your cravings for a
quality, tasty meal.

1.2 Problem statement and issues

The fast food industry is growing rapidly. Example like Mcdonald, Pizza Hut, KFC,
Subway, andBurger King has more doubled in a few years. Within this year, A&W
lost its market and plan to close down 24 outlets in Malaysia because they wish to
reposition its business and operations to achieve sustainable growth in future. They
are undertaking a corrective strategy and reviewing the performance of each outlet.
Due to the lack of advertising, A&Ws market gradually being replaced by others
fast food restaurant. A&Ws branding is not strength enough to state in customers
mind, A&W brand image is easily replaced by other fast food restaurant that always
doing all kinds of propaganda.

1.3. Objective

1.
To enhance a better advertising strategy to reposition the A&W brand image
and increase the popularity to compete with others fast food restaurant.
i. Find a proper marketing strategy on how to advertise their products to market.
Example,
- Broadcast TV commercial or radio commercial to reach their audience.
- Internet media, email, website, internet and ect.
ii. Create brand awareness by involving in more event or campaign. Example,
having booth exhibition in event or
campaign.
iii. Get more improvement on A&W website and social network to let the people
easily get the updates and
information from A&W. v. A&Ws website can create games in their sites to entice
gamers to visit their website.

2. To identity why A&W popularity decrease in this few years.


i. Survey analysis to find out the problems.
ii. Situation research about their target market.
iii. Research feedback and comments from A&Ws customers

Aims:
1. To reposition A&W brand image in the market.
2. To increase the popularity and awareness of A&W.

CHAPTER 2 : PROJECT PROFILE


2.1 Product Name: A&W Malaysia

2.2 Product Classification

The foods and beverages all are serving in high quality, fast served with typical
menu. A&W is committed to provide their customers with safe, delicious meals and
operating restaurants that meet the highest food safety standards. This
commitment is at the heart of their operations and their supply chain managementfrom raw material procurement, including livestock and produce, to their restaurant
food preparation and delivery.

2.3 Product Characteristic

A&W serves a typical fast food menu of burgers, french fries, as well as hot dogs.
A&W is famous for its frosty mugs Root Beer. Below are the details for each main
course available:

Main

Mains
Price
Double Mozza Burger
Rm8.20
Cheese Burger
Rm5.50
Double Deluxe Burger
Rm6.70
Chicken Sandwich
Rm7.60

Coney Dog
Rm6.70
Golden Aloma Chicken (2pcs)
Rm6.90
Golden Aloma Chicken (3pcs)
Rm9.90
Golden Aloma Chicken (9pcs)
Rm28.90
HotDog Basic
Rm3.50
Marina Fish Sandwich
Rm6.20
Grilled Chicken Burger
Rm5.70
Mozza Burger
Rm7.20
Sesame Chicken Bites (6pcs)
Rm6.50

Classic Combo

Classic Combo
Price
Coney Dog, combo meals are served with Rootbeer (Reg) and French Fries (Reg).

Rm10.35 *Go large for RM1.20


Double Mozza Burger, combo meals are served with Rootbeer (Reg) and French Fries
(Reg).
Rm10.95 *Go large for Rm1.20
Cheese Burger, combo meals are served with Rootbeer (Reg) and French Fries (Reg).
Rm9.25 *Go large for Rm1.20
Chicken Sandwich, combo meals are served with Rootbeer (Reg) and French Fries
(Reg).
Rm9.95 *Go large for Rm1.20
Golden Aloma Chicken, combo meals are served with Rootbeer (Reg) and French
Fries (Reg).
Rm10.35 *Go large for Rm1.20
Grilled Chicken Burger, combo meals are served with Rootbeer (Reg) and French
Fries (Reg).
Rm9.25 *Go large for Rm1.20
Marina Fish Sandwich, combo meals are served with Rootbeer (Reg) and French
Fries (Reg).
Rm9.95 *Go large for Rm1.20

Side

Sides
Price
Curly Fries
Rm3.90
French Fries (Reg)
Rm2.90

French Fries (Large)


Rm3.90
Onion Rings
Rm4.80

Sweet & Treats

Sweets & Treats


Price
Waffle with ice cream (single scoop)
Rm6.50
Waffle with ice cream (double scoop)
Rm7.20
Waffle with syrup and butter
Rm5.90
Vanilla Sundae
Rm2.90

Beverages

Beverages
Price
Root Beer (Reg)
Rm2.90
Root Beer (Large)
Rm3.40
Root Beer Float Single Scoop Ice Cream (Reg)
Rm3.90
Root Beer Float Single Scoop Ice Cream (Large)
Rm5.30
Milo
RM3.80
Nescafe (Hot)
Rm2.90
Orange Juice
Rm3.80
Ice Peach Tea
Rm3.50
Mineral Water
Rm2.10

Breakfast

Breakfast

Price
Jump Start 1 (Scrambled egg, fish fillet, chicken sausage, muffin, toast bread and
butter, served with hot coffee or tea)
Rm7.90
Jump Start 2 (Baked beans, scrambled egg, chicken sausage, waffle and butter,
served with hot coffee or tea)
Rm7.90
Jump Start 3 (Scrambled egg, chicken sausage, toast bread and butter, served with
hot coffee or tea)
Rm6.50

Beary Meal

Beary Meals
Price
Meal 1 (Beef Burger, 12oz Root Beer, Small fries, 1 premium item. Upgrade to Milo
for only RM1.00)
Rm7.50
Meal 2 (Hotdog Basic, 12oz Root Beer, Small fries, 1 premium item. Upgrade to Milo
for only RM1.00)
Rm7.50
Meal 3 (1pc Golden Aroma Chicken, 12oz Root Beer, Small fries, 1 premium item.
Upgrade to Milo for only RM1.00)
Rm7.50
Meal 4 (4pcs Sesame Chicken Bites, 12oz Root Beer, Small fries, 1 premium item.
Upgrade to Milo for only RM1.00)
Rm7.50

2.4 Product Range

Burgers
Breakfast
Beary Meals
Sandwich
Double Mozza Burger
Jump Start 1
Meal 1
Chicken Sandwich
Cheese Burger
Jump Start 2
Meal 2
Fish Sandwich
Double Deluxe Burger
Jump Start 3
Meal 3
Grilled Chicken Burger
Meal 4
Mozza Burger

Hotdog
Coney Dog
Hotdog basic

2.5 Distribution

A&W products are direct distributed to their customers because they have dine-in,
drive thru &delivery services available in their fast food restaurant. Customers can
order and get their food ready after they pay. Customers can get their foods and
beverages through drive thru and delivery services that only provided in certain
A&W outlets.

2.6 Product Life Cycle

2.7 The Brand

On 20th June 1919, Roy Allen opens the first Root Beer stand in Lodi, California to
sell a proprietary beverage made from a secret blend of 14 herbs, spices, barks &
berries. Soon after, Allen goes into partnership with one of his employees, Franks
Wright and three new outlets are established in Houston. The partners give their
Root Beer the famous A&W name. The A&W franchise was brought into Malaysia in
1963 by Mr and Mrs Lie Boff from USA. The Lie Boff family opened their first outlet in
Jalan Tuanku Abdul Rahman making it the first fast food outlet in Malaysia. This was
followed in 1965 with the first Drive-in restaurant in Petaling Jaya. A&W's goodwill
Ambassador Mascot, the Great Root Beer is created in 1974 to participate in grand
openings and perform community service, such as entertaining at children's
hospital. A&W Malaysia was bought over by KUB in 2001, and in 2008 embarked on
an aggressive expansion drive to revamp and expand its reach. A&W Malaysia is
committed to provide their customers with safe, delicious meals and operating
restaurants that meet the highest food safety standards. This commitment is at the
heart of their operations and their supply chain management , and is evidentin

every aspect of their business - from raw material procurement, including livestock
and produce, to their restaurant food preparation and delivery.

2.8 Brand Image and Implication

A&W with a bear mascot who wears orange sweater and orange hat.

Market share among the competitors:

Competitor
Market Share
McDonalds
With over 35,000 locations in 119 countries, it serves 47 million customers each
day, and employs 1.5 million people. (about 70 percent of the world's McDonald's
are franchise)
Subway
Subway is one of the fastest growing franchises in the world with 37,000 restaurants
in 100 countries and territories as of June 27, 2012.
KFC
Market share of over 35%. With over 540 KFC restaurants in Malaysia, Brunei and
Singapore

Wendys
Wendy's was the world's third largest hamburger fast food chain with approximately
6,650 locations

2.9 Strength and Weakness

Strength

A brand thatdifferentiates from other competitors with the different menu. It


serves as American typical fast food with variety menu of burgers and onion fries,
as well as hot dogs and their signature A&W Root Beer
Serve varieties of side dishes in their restaurants
Different taste profile
Different rapidly growing (18-34) consumer segment

Weakness

Does not advertise their products like their competitors do


Lack of marketing strategy
Weaker association with pre-teens
Less of an international appeal

2.10 Advantages and Disadvantages

Advantages

Producing more advertisements on their products


Open new branches in major city all around the worlds and some rural areas
Open new outlet in other states of Malaysia which will greatly improve their sales
Product improvement and brand improvement

Disadvantages

Competitor in market
Cost to produce the burger during inflation and lack of sales
Health concerns among general public

2.11 Unique Selling Point (USP)

Our key strength is our product, said A&W. But, A&W does not consider that their
unique selling point. However, they take much pride in their root beer and their
other signature products like the coney dog and waffles.

2.12 Promotional History and Advertising Schedule


-

2.13 Positioning Statement

A&W produces delightful sides dish and high quality root beers and hot dogs with
large variety of menus to ensure the superb taste for high taste preferences .

3.1 Company Overview

The A&W franchise was brought into Malaysia in 1963 by Mr and Mrs Lie Boff from
USA. The Lie Boff family opened their first outlet in Jalan Tuanku Abdul Rahman
making it the first fast food outlet in Malaysia. This was followed in 1965 with the
first Drive-in restaurant in Petaling Jaya. A&W Malaysia was bought over by KUB in
2001, and in 2008 embarked on an aggressive expansion drive to revamp and
expand its reach. A&W Malaysia is committed to provide their customers with safe,
delicious meals and operating restaurants that meet the highest food safety
standards.

3.2 Business Description

A&W offers drive-up service in addition to dine-in seating, provide a menu featuring
hamburgers, hot dogs, onion rings, and fries, along with its signature root beer.
A&W traces its roots back to a California root beer stand business started by Roy
Allen in 1919.

3.3 Company History

A&W Restaurants, Inc is a chain of fast-food restaurants, distinguished by its


draftroot beer and root beer floats. A&W was arguably the first successful food
franchise company, starting franchises in 1921 in California. Today it has franchise
locations throughout the world. It serves typical fast food menu burgers, French fries
as well hot dogs. The company name was taken from the last name initials of
partners, Roy Allenand and Frank Wright. In 1963, Mr and Mrs Lie Boff from USA
brought the first A&W franchise into Malaysia. The Lie Boff family opened their first
outlet in Jalan Tuanku Abdul Rahman making it as the first fast food outlet in
Malaysia. The most famous A&W outlet with the first Drive-in restaurant in Petaling

Jaya, a satellite city of Kuala Lumpur opened in 1965 and quickly became a
favourite gathering place for students, especially from the nearby Assunta and La
Salle Secondary Schools. The unique A&W root beer mug was often collected by
these young customers. It was the filming location for Malaysia movies during the
197-s and early 1980s. Customers from the 1970s will recall Tuesdays as Coney Dog
Day. During the mid-1980s, A&W also operated a second Petaling Jaya outlet at the
Atria Shopping Complex in Section SS22 Damansara Jaya. In Penang, A&W had an
outlet at KOMTAR and Penang International Airport and has close down. Another
new store has been opened at malls around Penang. During the 1990s, A&W
operated an outlet at Terminal 3 of the former Subang International Airport. This
outlet ceased operations when the Kuala Lumpur International Airport shifted from
Subang to KLIA in 1998. To date, several more A&W outlets have been opened,
mostly in shopping malss. An A&W outlet opened for a number year in Likas Square,
Kota Kinabalu but was close down in 2004.However, A&W had a declining business
era from 1997 - 2000. A&W Malaysia was bought over by KUB in 2001. KUB is the
licensee of A&W in Thailand and Malaysia since 2002. Currently, it has 40 outlets in
Malaysia and 40 in Thailand. KUB was currently undertaking a corrective strategy
and reviewing the performance of each outlet. Any outlet that is not making money
will be shut down or relocated. A&W need to be business and bottom line-drive.

3.4 Key People


Director Operations/ Administrations.

KUB Malaysia Sdn Bhd

Group Managing Director

Wan Mohd Nor Wan Ahmad

3.5 Location and Subsidiaries

Location

Head office: A&W (Malaysia) Sdn Bhd


1 Jalan Selukat 33/27, Shah Alam
Technology Park, Section 33,
40400 Shah Alam, Selangor.
Phone No: 603 - 51227770
Fax No: 603 - 51227771

Outlets :

1.

Alamanda

2.

Nilai Avenue

3.

Batu Road

4.

Petaling Jaya

5.

Batu 3, Shah Alam

6.

Petronas Service Station Batu3

7.

Seksyen 7, Shah Alam

8.

PSS Jalan Plumbum, Seksyen 7 40000 SHAH ALAM

9.

Seremban

10.

Pekan, Pahang

11.

Jusco Permas Jaya, Johor Bahru

12.

Zoo Melaka

13.

Melaka

14.

Sungai Buloh

15.

Kota Damansara

16.

Equine Park, Seri Kembangan

17.

Damai Perdana

18.

Mahkota Cheras

19.

Pantai Batu Buruk, Kuala Terengganu

20.

Bandar Kinrara, Puchong

21.

Dataran Pahlawan, Melaka

3.6 Brands, Major Products and Services

A&W is subsidiary of KUB Malaysia Bhd in 2001. A&W is the first fast food restaurant
which entered Malaysia in early 1919. A&W serves typical fast food menu of burgers
and onion fries, as well as hot dogs. Their signature A&W Root Beer is made from
real cane sugar and a proprietary blend of herbs, bark, spices and berries where the
mug would be kept in the freezer prior to being filled with root bear and served to
the customer. Other than that, they also serve sweet and treats like waffle and ice
cream. It provided dine-in, take away and delivery services for customers.

3.7 Corporate Vision

A&W has a rich history of bringing people together to share great food, great root
beer & friendly hospitality. Its this combination of friendly people of All-American
Food that build our legend.

3.8 Corporate Mission

- To build a stronger brand identity and brand awareness level with the support of
advertising and promotion.
- Constantly improving and optimizing the resources in existing outlets to better
serve its customer
- Reinventing fresh new menus to attract the new market consumers.

3.9 Companys Current Promotional Strategy

2011

- Double Fortune Burger Contest

- Golden Aroma Chicken Combo Promotion

- XXXtra Hot Sauce Combo

- XXXtra Long Coney Dog Combo Promotion

- Tangy Duo Promotion

- Story Contest

- New Year Prosperity Promotion

2012 Current

- Sen Savers Rm2.80 lunch value

3.10 Product Sales History

A&W contributed about RM60 million in term of revenue to KUB, which posted
revenue of about RM800 million last years, announced by Group managing director,
Datuk Wan Mohd Nor Wan Ahmad. KUB posted a net loss of RM61.86 million for
financial year ended Dec 31, 2011 compared to a net profit of RM11.48 million in
2010.

3.11 Current Marketing Objective

Short Term:

- Undertaking a corrective strategy and reviewing the performance of each outlet.


Any outlet that is not making money will be shut down or relocated.

- Establish back the brand identity by having more advertising to compete with
other fast food restaurant.

- Maintain A&W loyal customers and tackle new segments like teenagers,
youngsters and lower-middle income earners via value treats.

Long Term:
- Increasing the domestic demand through expanding the outlets and product
diversification

- Improve on the advertising and marketing strategy to create awareness for public
to after they relocated or open new outlets in Malaysia.

- KUB targeted to list A&W on Bursa Malaysia in 2014 or 2015.

3.12 Media Expenditure

Currently A&W advertising is not strong enough compared to their competitors and
they only focused in few medium of advertising. Lately when KUB Sdn Bhd
announced that they are planning to close down 24 outlets in Malaysia, it is getting
less advertising about their brand in market. Meanwhile they just spread the news
through social network and flyers

4.1 Current Consumers Characteristics

4.1.1 Demographics

Age : 18 to 35 years old


Gender : Male and Female
Education : Undergraduate, postgraduate and above
Occupation : Homemakers, students to working adults
Income Range : RM1000 RM4500
Allowance : RM200 RM 1000
Race & Ethnicity : All races
Geographic Location : Urban

4.1.2 Physiographic

Perception : Consumers who want something in a short time without waiting for
long, seek for materialistic, image appearance, social awareness, high quality food
and services.
Learning : Newspaper, social network, magazines, blogs, friends.
Motivation & Needs : Good service, feel the delicious and satisfaction of food while
enjoy the environment in the restaurant.

Attitude and Personality : Loyalty, value for time, brand and taste conscious
Lifestyle : Workaholic/ busy and passion with their work with standard society who
cares of being together with family and friends

4.2 Stakeholders Characteristics

4.2.1 Primary

- Chairman
Chairman is responsible in setting up goals and supervising company business and
developmentwith the board of directors.

- Board of Directors
Directing and managing the employees to achieve companys goals.

- Shareholders
Investing money to the company in interest of a share on its profit.

- Employees
Work for the company in cooperation with their directors in order to achieve
companys goals.

- Consumers
Spending money for the goods produced by the company which contributes to the
company revenue.

4.2.2 Secondary

- Distributors
Provide service and good while earning from the service provided.

- Media
Helps company to advertise the brands and the products to create awareness
among consumers when the company willingly invests for a scheduling time.

- Banks
Provides loan as funding backup to the company and as a finance agency that
makes financial procedure easier.

5.1 The Industry

5.1.1 Definition of the Industry

Fast food restaurants have spread rapidly throughout the country, even into small
towns. There is probably no universally accepted definition for the term fast foods.
Used loosely and in a wide sense, it can be taken to mean meals that are served on
demand and made available in a short time. This would include the franchised
western-type fast foods as well as local hawker foods. For the purposes of the
proposed guidelines, Ministry of Health has defined fast foods as foods that are
prepared in large quantities, following standardised procedures and served rapidly

in restaurants commonly known as fast food restaurants, which usually advertise


their services through the electronic and print media.

5.1.2 Shape of Industry

U.S. franchises dominate the fast food and restaurant industry and include the
following: Kentucky Fried Chicken (KFC), McDonalds, A & W, Burger King, Starbucks,
Seattle's Best Coffee, Dunkin Donuts, Pizza Hut, Domino Pizza, Shakeys Pizza, Kenny
Rogers Roasters, Long John Silvers, Dairy Queen, TGIF, Chilis, Hard Rock Cafe, Planet
Hollywood, Baskin Robbins, Haagen Dazs, Swensons, Famous Amos, Auntie Annes,
Outback Steak House.

Due to the high capital investment required for a foreign franchise, owners of
foreign franchises tend to be Malaysian conglomerates and wealthy investors. As
more and more manufacturing heads towards China and other neighboring low-cost
labor markets, Malaysian manufacturers are beginning to look towards services and
franchising as a way to diversify their operations, often in very different sectors.

5.1.3 Development of the Industry

Malaysia is a developing economy located in Southeast Asia. It is ideally located for


export business to Indonesia, China and India, and will likely benefit from the strong
economic growth predicted for these countries in the coming years. Malaysia also
has a young population and increasing wealth of its own. Because of these factors,
Malaysia is poised to become a major consumer of agri-food and seafood products
in the near future. This growing demand for agri-food and seafood products, as well
as the changing demographics and culture of the country, will likely spur growth in
an already fast-growing consumer food service industry.

The leading sectors in the Malaysian consumer food service industry are the
caf/bar segment, the full-service restaurant segment and the fast food segment.
These three segments of the foods ervice market account for over half of sales in
both value and volume terms. However, there are opportunities to be found in the
smaller sectors of the market as well.

The Malaysian food service sector is very diverse and offers an array of options for
consumers. Approximately 75% of the foodservice sector consists of small
foodservice chains or stand-alone operations (USDA, 2010). This means the sector is
highly fragmented and competitive as the varying operations battle for market
share.

According to the USDA, the sector is composed of the following groups (2010):
19% food caterers
8% full-service restaurants
3% fast food restaurants
70% other areas of the industry

Source: USDA, 2010

The Malaysian foodservice sector is in a period of expansion, with the value of sales
increasing faster than volume. In the review period of 2004 to 2009, Malaysian
consumers had more disposable income than ever before and were interested in
trying new and higher quality food products. This has allowed for significant growth
in the industry at a compound annual growth rate (CAGR) of 8.25%, and absolute
growth of 48.64%

In the period of 2004 to 2009, the fastest growing sector in the foodservice industry
was the pizza foodservice industry, which grew at a CAGR of 13.4% and by 87.11%
in absolute terms. However, the sector is quite small when compared to the fast
food sector (CAGR of 11.46%; absolute rate of 72.06%) and the caf/bar sector
(CAGR of 10.48%; absolute rate of 64.58%).
The fast food sector continued to grow in 2009, in spite of the economic downturn,
although at a slower pace. In 2009, the industry focused on boosting sales through
marketing and limited time promotions. This allowed the industry to continue to
increase volume and value of sales in the face of the downturn.
Again, the young population of Malaysia and rising incomes will likely drive growth
in this sector into the near future.

Similar to the caf and bar sector, the Malaysian fast food industry is on track to
provide more diversified offerings, presenting many opportunities for potential
exporters of new or different products.
It should be noted that the fastest growing area of consumption in the fast food
industry is poultry products. While Canada has supply management in place,
significant quantities of poultry products are still exported. Poultry products are
more popular in the Malaysian fast food industry because of religious restrictions
surrounding both pork and beef within the Islamic and Hindu populations,
respectively.

5.2 The Marketplace

5.2.1 Current Condition of the marketplace

The market of fast food restaurant is currently rapidly increasing as there are a lot
of different fast food restaurant in the market from new to old competing against
each other directly and indirectly. A&W is the first franchise which entered Malaysia
in 1919. With their famous A&W Root Beer, it attracted lots of loyalty customers
who visited to A&W. But currently with 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 or replaced their outlets in suitable venue.

To make the brand stand out from the competitors, A&W would wish to reposition
back their brand in market. With the marketing strategy, A&W have to be more
creative and promotions and in the product itself.

5.2.2 Changes in Marketplace

Positive = Successful reposition to compete with other fast food restaurant in the
market and produce higher quality thus boosting the growth of the industry.

Negative = Less promotion will cause it lost its popularity in the market and
increasing of competitors.

6.1 Direct competitors

6.1.1 McDonalds

McDonaldss first made its ways in December 1980 when McDonalds Corporation,
USA gave Golden Arches Restaurants Sdn Bhd the license to operate McDonaldss
restaurant in Malaysia. McDonalds Malaysia opened its first restaurant at Jalan
Bukit Bintang, Kuala Lumpur on 29 April 1982. To date, McDonalds Malaysia has
more than 200 restaurants located nationwide and is currently expanding at about
20-25 restaurants annually. The company was named as AON-Hewitt Best
Employers in Malaysia in 2009 and 2011, as well as AON-Hewitt Best Employers in
Asia Pacific in 2011. McDonalds has successful advertisement (Im lovin it!) which
stated in consumers mind. Other than that, McDonald's has rolled out new items
like coffees, smoothies and burgers, expanding the range of menu choices.

Outlets : 204 outlets in Malaysia

Strength : McDonald's has successfully rolled out new items like coffees, smoothies,
and burgers, expanding the range of menu choices. Advertisement slogan Im
lovin it! Latest year 2012, McDonalds has launched McCafe as another concept to
attract coffee lover in specialty coffees made with premium 100% Arabica beans.

Product range : Burgers (Beef, fish & chicken), Ayam Goreng McD, Bubur Ayam McD,
side orders (Chicken McNuggets, french fries & etc), desserts (apple pie, shake & ice
cream), kids meal, drinks

6.1.2 Kentucky Fried Chicken

The first Kentucky Fried Chicken at Malaysia was opened in 1973 on Jalan Tunku
Abdul Rahman. KFC has been franchising since 1952, with more than 5,200
restaurants in the U.S. and more than 15,000 units in 109 countries around the
world. While in Malaysia, there are more than 500 KFC Restaurants nationwide and
still counting. KFC is famous for its Original Recipe fried chicken, which is made with
the secret blend of 11 herbs and spices. Great tasting chicken has become
synonymous with KFC. In fact, KFC Malaysia has developed a distinctive Malaysian
personality of its own.

Outlet : 445 outlets in Malaysia

Strength : KFC was the first chain to enter fast food industry just before McDonalds
with the secret recipe initial home replacement strategy. Original Recipe fried
chicken, which is made with the secret blend of 11 herbs and spices. Kentucky
Nuggets is one of KFC's successes.

Product range : Kentucky Fried Chicken, Roasted Twister, Burgers (fish & chicken),
side orders (Kentucky Nuggets, Cheesy Wedges, fun fries, Tangy coleslaw, Whipped
potato & etc), desserts (egg tarts & jelly ice cream), kids meal, drinks

6.1.3 Burger King

In December 1997, BURGER KING returns to Malaysia with a different management


group that operates under a new franchisee i.e. Cosmo Restaurants Sdn. Bhd. The
first restaurant was located at Overhead Bridge Sg. Buloh. It was officiated by our
former Prime Minister i.e. Y.A.B Tun Dr. Mahathir Mohamad. There are currently, 3
franchise holders in Malaysia. The largest operating restaurant is managed by
Cosmo Restaurants Sdn. Bhd. While outlets located in KLIA are under the
management of Dewina Hosts Sdn. Bhd, outlets in Sabah are operated by another
franchisee, Living Bread Sdn. Bhd. The current concept in BURGER KING caters for
todays customer requirement for the trendy, modern yet tranquil.

BURGER KING caters to customers who love great tasting burgers, their way.

Outlets : 22 outlets in Malaysia

Strength : Brand internationally founded on customers' preference for Burger King


flame-grilled burgers and the company's commitment to quality, innovation and
differentiation. Burger King serves a lot of burgers that is typically not available in
other fast food restaurant. Some of the examples are, BK Mushroom Swiss which
serves beef patty and topped with mushroom sauted sauce, Grilled Chicken burger
which is prepared by grilling the chicken patty and others. Most of the burgers
prepared in Burger King are cooked by properly grilling them over fire.

Product Range : Burgers (beef, fish & chicken), side orders (onion rings, chicken
tenders, fries & etc), treats (pie, sundaes & ice creams), kids meal, drinks
6.2 Indirect Competitors

6.2.1 Pizza Hut

Pizza Hut is the first pizza restaurant chain in Malaysia. KFC Holdings (Malaysia)
Bhd, an associate of QSR Group, acquired control of Pizza Hut Malaysia in 1996. In
2002, Pizza Hut Malaysia was transformed from a local QSR company into an
international operator with the acquisition of Pizza Hut Singapore. Featuring a
delicious mix of nutritious Italian-American cuisine that includes the world's
favourite pan pizza and other delectable dishes, Pizza Hut offers a cosy, friendly
ambience in which to relax, unwind and have a great time with family or friends.
Pizza Hut Malaysia's success has been due to imaginative and innovative thinking in
continuously developing, marketing and promoting new pizza products with unique
and distinctive flavor, taste, style and appeal. Consistent introductions of various
products and promotions throughout the years have helped drive system wide sales
and reinforced the chain's reputation for 'serving the best pizzas under one roof'.

Outlets : 210 outlets in Malaysia

Strength : First pizza restaurant chain in Malaysia, promoting new pizza products
with unique and distinctive flavor, taste, style and appeal. Serving the best pizzas
under one roof

Product range : Appetizers (Smoked Deli Wings, Cheese Baked Meatballs (Beef and
chicken), Garlic Bread, Favourite Platter, French Fries, Salad, Soup & etc),
sandwiches, Western favourite, Pasta, Rice (Grilled Chicken Baked rice, Tempura
Prawn Garlic rice), desserts (Chocolate Volcano, Single Sensation, Double Delight,
Triple Pleasure).

6.2.2 Kenny Rogers Roasters

Kenny Rogers ROASTERS was originally set up by popular Country and Western
singer, Kenny Rogers, and former Governor of the state of Kentucky, John Y Brown
Jr., in 1991. Seeing an opportunity to provide healthy and delicious food in a
restaurant environment, Kenny Rogers ROASTERS opened its first restaurant in
Coral Spring, Florida in August of 1991. Berjaya Roasters (M) Sdn. Bhd. is the
franchise holder for Kenny Rogers ROASTERS ("KRR") in Malaysia. The company is a
wholly owned subsidiary of Berjaya Group Berhad and was incorporated in 1994.
Kenny Rogers ROASTERS is a mid-casual dining restaurant with roast chicken as its
main core item complemented by a rich variety of hot and cold side dishes. This is
made up of Kenny's famous home-made muffins, jacket potatoes, vegetable salads,
pasta, soups, desserts and beverages served in a friendly and comfortable
environment.

Outlets : 77 outlets in Malaysia

Strength : To promote healthy offerings, Less Fat. Less Salt. Less Calories.

Product range : Salad (Roaster chicken salad, Caeser salad, round-up platter & etc),
Sandwiches (Sunshine sandwiches toast, classic chicken sandwich, Rockies bowl &
etc), Kennys Chicken Meals, Kenny Home-made muffins, desserts (chocolate oasis,
muffin submarine, jelly sundae & etc).

6.2.3 Popeyes Louisiana Kitchen

Popeyes story began in 1972, when Al Copeland opened a quick-service restaurant


called Chicken on the run. The restaurant served traditional mild fried chicken to
the folks in the small New Orleans suburb of Arabi. Popeyes opened its 500th
restaurant, putting the brand on equal footing with national competitors. In a
nationwide taste test, Popeyes beat Churchs Chicken and KFC, Americas Fried
Chicken Champ The Spicy taste That Cant Be Beat. Popeyes opened the first
franchise in Malaysia at 2001. It continuously expanded the outlets in Malaysia.
Popeyes would like to take this opportunity to bring the excitement of Louisiana to
fellow Malaysians by satiating their taste with the spicy Louisiana taste in Malaysia.
Popeyes also serves its famous signature Bonafide chicken marinated in Louisiana
Seasonings, hand-battered and made fresh, in which patrons get to choose between
Mild or Spicy.

Outlets : 9 outlets in Malaysia

Strength : A piece of Louisiana in every single meal! Their Popeyes menu items
come with a special flare of Southern style preparation and cooking all their own.

Product range : Bonafide Chicken, Tenders (Fish Bites, Pepper nuggets), Chicken &
Seafood combo, Sandwiches (Chicken & Fish), Louisiana Leaux, Family & Kids'
Meals, Sides (Mashed potato, Cajun Fries, Coleslaw, Corn, Biscuits), Desserts,
Beverage.

SWOT ANALYSIS

7.1 Strength

- Arguably A&W is the first fast food restaurant originated in the United States in
1919.

- The A&W franchise was brought into Malaysia in 1963 by Mr and Mrs Lie Boff from
USA. A&W Malaysia has entered The Malaysia Book of Records as the first franchise
restaurant in Malaysia.

- A&W opened their first outlet in Jalan Tuanku Abdul Rahman in Malaysia. A&W also
became the first Drive-in restaurant in Petaling Jaya in coming 1965.

- A&W mascot, The Great Root Bear and their corporate orange color stated in
peoples mind.

- A brand differentiates from other competitors with the different menu. It serves as
American typical fast food with variety menu of burgers and onion fries, as well as
hot dogs and their signature A&W Root Beer

7.2 Weakness
- A&W is closing down 24 outlets in Malaysia due to the problems or relocated or
close down outlets that cost its lost profit because location is not strategic or rented
fee is too expensive. Currently A&W only have 19 outlets in nationwide. Compare to
the competitors, A&W is considering less outlets.

- A&W has not advertised extensively in Malaysia. People couldnt find the A&W
latest promotion around, but the competitors have strong advertise in anywhere
caused the people will almost forget A&W existing and lost its popularity in the
market.

- A&W need to improve their servicing & food quality in order to serve the food on
time and make sure the food quality is fresh.

- A&W is slightly pricing higher than their competitors, A&W is having a Sen Saver
lunch set, but is pricing from Rm4, included with the charge of beverages and
service tax, it cost around Rm10. For a normally student or worker which income is
not more than Rm500, this will cause them heavy expenses. Somehow they might
choose to go for mamak stall rather than fast food restaurant.

- A&W hardly updating their website and social network, example like A&W never
change their website information about their closing down outlets, when consumers
check the information in website, it still stated the old/ closing outlets in their
website, this will confusing the consumers about the outlets location.

7.3 Opportunity

- A&W can consider having reasonable saver lunch treat meal to target in young
8teenagers which allow them to have cheaper meal set with food quality but in time
can save their budget.

- A&W can plan to have more Festival Promotion (Chinese New Year, Ramadhan
dinner and etc) to attract another target market which likes family to have their
Ramadhan open dinner in A&W.

- Open new outlets in proper location with parking and drive-thru services in shared
facilities, example in petrol station or convenience store.

- Currently or within in a year, A&W can comes out with an idea of releasing
collectibles for any upcoming month. Example like in a duration time, A&W can

comes out with a new set meal with the collectibles gift but this is available in
limited time only.

- A&W should put more effort on updating latest news to the market to allow the
consumers gets to know follow their updates on time to time. Example like updating
their website and social network, always concern about consumers feedback and
improving all the times.

- A&W have to strengthen in advertisement or commercial, they need to advertise


their products or brand image wisely to avoid consumers forget about their existing
in the market due to the strong competitors in the market.

- A&W can corporate with some big event, like Running Day or visiting to
orphanage to increase publicity in market.

7.4 Treats

- Fast food restaurant in increasingly rapidly in the market. There are lots of others
fast food restaurant competitors are competing with A&W.

- The researchers concluded that having fast food will increase a persons risk of
health (weight gain and obesity).

- Expensive fast food restaurants rented fee costly in expanding franchise in


everywhere. Economics crisis, fast food restaurant chain change in approach of
leading in coming years.

TARGET AUDIENCE

8.1 Proposed Primary Target Audience

8.1.1 Demographic

Age : 18 to 23 years old Gender : Male and Female

Education : Secondary, undergraduate and postgraduate

Occupation : Students

Income Range : RM400 RM800

Allowance : RM200 RM500

Race & Ethnicity : All races

Geographic Location : Urban

8.1.2 Physiographic

Perception : Consumers who want something in a short time without waiting for
long, seek for materialistic, image appearance, social awareness, high quality food
and services.

Learning : Newspaper, social network, magazines, blogs, friends.

Motivation & Needs : Good service, feel the delicious and satisfaction of food while
enjoy the environment in the restaurant.

Attitude and Personality : Loyalty, value for time, brand and taste conscious

Lifestyle : Workaholic/ busy and passion with their work with standard society who
cares of being together with family and friends

8.2 Proposed Secondary Target Audience

8.2.1 Demographic

Age : 24 to 28 years old

Gender : Male and Female

Education : Undergraduate and postgraduate

Occupation : Working adults

Income Range : RM1000 RM2500

Allowance : RM500 RM1500

Race & Ethnicity : All races

Geographic Location : Urban

8.2.2 Physiographic

Perception : Consumers who want something in a short time without waiting for
long, seek for materialistic, image appearance, social awareness, high quality food
and services.

Learning : Newspaper, social network, magazines, blogs, friends.

Motivation & Needs : Good service, feel the delicious and satisfaction of food while
enjoy the environment in the restaurant.

Attitude and Personality : Loyalty, value for time, brand and taste conscious

Lifestyle : Workaholic/ busy and passion with their work with standard society who
cares of being together with family and friends

9.1 Marketplace Research

9.2 Market observation


An observation had done in A&W starting from 12pm until 3pm. From the
observation, I found that majority of the customers are in Malay race and in range of

18-35 years old. Most of them are family or in a group of students. In meanwhile, I
found there are lots of workers who visit to A&W in lunch hour.

9.3 Online Survey Analysis


The online survey was conducted from 13th to 15th of July 2012, with a total of 50
participants. The purpose of this survey is to investigate on the consumer
perception on fast food restaurant and the awareness towards A&W.

Question 1
What is your gender?

Question 2

What is your age group?

Question 3

What is your race?


Question 4

How much is your income/ salary per month?


Most of the responders are students, their basic income/ salary is not more Rm1500.
Overall coverage income is in between Rm500 to Rm1500.

Question 5

How often do you visit to fast food restaurant?

This question is to investigate on how often people visit to fast food restaurant. The
result showed that 21 of the responders normally visit to fast food restaurant in 2-3
times in a week. While there are 15 of the responders visit to fast food restaurant in
once a month. Only 1 responder never visits to fast food restaurant. 2 responders
visit fast food restaurant in everyday and another 2 responder visit fast food
restaurant 4-5 times in a week.

Question 6

Which fast food restaurant normally you visit to?

There are 44 of the responders normally visit to McDonalds. While there are 5
responders choose to visit KFC. Only 1 responder goes for Pizza Hut. Other option is
Carl's Jr. The other fast food restaurant like Burger King, Popeyes, Subway & A&W is
not the major choice for the 50 responders.

Question 7

Why you prefer that? (Refer back to Question 6)

26 of responders think that they prefer the fast food restaurant they choose
because of their promotion and cheaper (value set meal). Because nowadays
people want to save budgets for meal set, somehow the fast food restaurant is
having the value set food and beverages would cost no more than Rm10. 7
responders think that is faster and convenience to save their time like queue up or
waiting for seats. Another 7 responders prefer the fast food restaurant normally
they visit to because of their variety choice of food, some people would prefer for
burgers but some would choose for other food. So if the fast food restaurant is
having variety choices of food, this maybe is the reason for them to visit in often. 4
responders think that the services are good, so they would rather choose to go back
the fast food restaurant. 4 responders choose no reason. While another 2
responders prefer the fast food restaurant due to the accessible wifi provided.

Question 8

Are you aware of A&W?

This question is to find out the awareness of people about A&W. Because nowadays
the fast food industry is growing rapidly, refer back to Question 6, most of the
responders are visiting to McDonalds, KFC, Pizza Hut but not A&W. The bar shows
out of 50 responders, 26 of responders are average about A&W. 12 responders are
above average about A&W. While 5 responders are knowing excellent about A&W.
Meanwhile 6 responders are above average about A&W. Only 1 responder doesnt
know about A&W.

Question 9

Do you remember A&W logo?

This question is to concern either the responders remember the A&W logo or not.
Without showing the A&W logo, 75% of the responders remembered A&W logo, but
17% not sure and 8% cant remember the A&W logo.

Question 10

How you rate for A&W food?

Other than the awareness of A&W, this question is to focus at A&W food rate. 30
responders think the A&W food is average, 10 responders think is above average, 6
responders vote for below average and 4 responders think A&W food are poor.

Question 11

What is your favourite food in A&W?

After they rate for A&W food, this question is to investigate what is the responders
favourite food in A&W. 32 responders voted for Root Beer Float, 9 responders
choose for onion rings, 3 responders go for burgers, another 3 responders choose
hotdogs, 2 for French fries, each 1 responder choose waffle and fried chicken.

Question 12

How long have you been to A&W since last visit?

This question is to find out how long the responders been to A&W since their last
visit. 34 responders been to A&W within 3 month time, 2 responders been to A&W
in within this month. Only 1 responder went go A&W in this week time. Others 13
responders is more than 3 month never go to A&W.

Question 13

What issue do you think that is stopping you from going to A&W?

From the Question 12, an average percentage is showing that most of the people
never visit to A&W more than 3 month. What issue is stopping them from going to
A&W? 13 responders think that A&W is lack of advertising, people do not know their
latest promotion or get their update from A&W. 12 responders already forget their
existing. 9 responders choose for strong competitors. 5 responders dislike their
food. 3 responders think that A&W is more expensive than other fast food
restaurant and 2 responders not willing to go A&W because of their bad services.
Meanwhile 7 responders choose others option like less outlet, the responders cant
find the A&W outlets nearby their place.

Question 14

Are you aware of your preferable fast food restaurant promotional? Such as value
lunch or value dinner?

This question is to find out either the responders will follow or aware about their
preferable fast food restaurant update like promotional or not. 85% responders go
for Yes and 15% go for No.

Question 15

How did you notice about that?

This question is to find out how the responders get the update from their preferable
fast food restaurant update. 16 responders will follow their Facebook/ Twitter
updates. 13 responders get the update from their friend and family, word of mouth
and social network and blog reviews are more effective. 11 responders get the

updates from newspaper, magazines, flyer and etc. 7 responders watch TV


advertisement to get the updates.

Question 16

Will you prefer the fast food restaurant to provide Delivery/ Drive thru services for
you?

Question 17

Why? (Refer back to Question 17)

Most of the responders prefer to have delivery services because is convenience and
can save time, responders no need drive or queue in to buy the food.

Question 18

Do you know where is the nearest A&W to your house/ working area?

48% of the responders know where is the nearest A&W to their house/ working area,
31% responders is answering No, they dont know the A&W outlets nearby to their
house/ working area. While 21% is not sure about the A&W outlets.

Question 19

What is your comment about A&W?


Pick up some of the responders comments about A&W,

- A&W need to renew the food item, set up the promotion, change the environment
of the restaurant

- Hopefully A&W can improve on their advertising and marketing strategy so that
the public can remember them.

- Lack of effort in advertising. Their advertising is not as strong as McD or KFC. In


fact, I don't think they advertise at all anywhere. It's hard to find A&W compared to
McD which is located almost everywhere. Even their restaurants are sometimes not
as attractive as some other fast food restaurants. They need to be more adaptable
and attractive looks for their restaurant in order to attract customers.

- Maybe A&W can improve the customers services, set up more promotion, or
vouchers to promote their foods. Advertising is also very important, make peoples
aware of it.

- Price slightly higher compared to other brand. Bad service.

- Not outstanding enough compare to KFC and MCD

- A&W is not bad though, just their competitors are much more powerful and more
efficient & creative business-minded, so A&W have to pick up, that's it.

-I love their root beer, onion rings and burgers. Besides that, I also like their logo, it
brings me childhood memories. Seriously, what happen to A&W?

- A&W can provide more valuable combo set.

- A&W need to add more promotion and variety on their menu

11 References

- RM93mil plan to expand A&W chain in Malaysia and Thailand

http://biz.thestar.com.my/news/story.asp?
file=/2009/2/4/business/3176724&sec=business
- KUB to sell A&W Thailand, reduce stake in A&W Malaysia

http://www.thesundaily.my/news/413832
- KUB streamlining fast food A&W business

http://www.themalaysianinsider.com/business/article/kub-streamlining-fast-food-awbusiness/

- A&W Official Website

http://www.rootbeer.com.my/

- McDonalds Webiste

http://www.mcdonalds.com.my/

- Burger Kings Website

http://www.burgerking.com.my/

- Pizza Huts Website

http://www.pizzahut.com.my/

- Kennys Roger Roasterss Website

http://www.krr.com.my/v3/index.php