Professional Documents
Culture Documents
Business Com MM Final LL LLLLL
Business Com MM Final LL LLLLL
Group Assignment
COM40603T0372
Table of Content
Company Profile 1
Introduction 2
Marketing Mix 4
Conclusion 9
Recommendation 10
Appendix 12
Reference 15
Company Profile
MyBurger Lab is a medium sized restaurant enterprise located in Malaysia where they make
gourmet burgers.The company was established by Cheah ChangMin and Teoh WeeKiat,
co-founders of myBurger Lab later was joined by Chin RenYi. They currently have four outlets
located in Subang and Cyberjaya. The enterprise of My Burger Lab was influenced from GBK,
In-N-Out and Grilld which is then they made their very own MyBurger Lab. Their main
objective is to make good, juicy , fresh and innovative burgers for value. The first outlet opened
Introduction:
Malaysia is what makes its economy thrive. Majority of the small-medium sized businesses are
retail and service based that creates employment for the public which increases the countrys
GDP. In this report i will be discussing about the obstacles about MyBurger Lab faces and
recommending a solution to their problem. The aim of this report is to find a solution that will
solve their growth and sustainable problem that MyBurger Lab has been facing recently. They
are in a major need to revamp their management of the company in order to achieve growth and
sustainability. Ill be using both primary such as articles from the internet and secondary research
The current status of the company is not perfect as it seems with their low growth rate and cost
rising they seem to take a downward and staying relevant. The product they are marketing is
burgers which are a hype based product so its hard to stay relevant in the market. Many burger
restaurants or fast food joints pop up around Malaysia and the burger culture isnt strong as it is
in United States of America. Even though MyBurger Lab has its own selling point but they have
heavy competitions which makes them to reduce the prices in order to attract consumers which is
hampering their revenue. Another external obstacle they face is the governments GST and
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taxation that requires them to bump up the cost of their burgers. This makes MyBurger lab look
for substitutes without touching the quality of their burgers. MyBurger Lab is also slow on
growth compared to their popularity in Malaysia as they are taking things slowly. Some
control, lower operating costs leads to increase in profit margins and lifestyle of the founders or
multi-national or at least expand regionally referring to the SWOT Analysis opportunity section (
appendix:_). They are also based around Subang Jaya & CyberJaya only targeting mostly
students and middle-class workers when they have the potential to target families or becoming a
family resturants in higher income areas. They need to be more geographically diverse in order
to target more potential customers for their burgers so they can expand their restaurant. The
company is missing the opportunity on franchising their establishment which can make
MyBurgerLab a household name while minimizing large capital expenses while collecting fees
Product:
MyBurger Lab sells experience with their burger by differentiating it with their competitors as
they are more into selling quality gourmet burger with niche taste in their product. Their
signature Charcoal Black Buns created a brand image as most people refers the black buns
special sauces and grinding their own patties. They also sell delicious unique side dishes and
main-food either than burger however the burgers they make are staple and most preferred in
their menu. Their packaging is simple and yet decorative with their take-away boxes to the color
scheme represents or gives MyBurger Lab an identity. The restaurant also provides other
Price:
My BurgerLab prices are affordable and in the range that everyone is able
its not doing mass production and using high quality ingredients.
My BurgerLab uses cost-plus pricing and adds value by that when they are
setting a price for their burger as you can see from the diagram(appendix 3.). They add value to
their product by the services they provide such as home-delivery fees and WIFI in their
restaurants. Cost-plus pricing is pricing strategy based on cost, its an easy method to set prices
on goods and services. The method is to add all the direct material, labor, overhead costs for the
They also uses product-line pricing referring from their menu ( appendix:4). In product-line
pricing the method is used by retailers to divide goods into cost sectors in order to make many
They instill the fairness and price-quality sensitivity effect where buyers perceive that the price
they pay for their burger is fair to the price they pay.Also the quality of the burger extends
because they are priced same as restaurant level foods instead like their fast food burger
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competitors McDonalds or KFC. Products with high price tags usually creates an image that
they are more quality worthy. These two concept affects the price sensitivity among the
market-oriented pricing strategy where their price interrelated with the situation on the current
market state, which includes supply and demand or the pricing of the competitors burgers.
KGB 18RM
In comparison of price, KGB and MyBurgerLab has similar pricing tactics and belongs in the
Place
MyBurger Lab joints are located in Subang Jaya & CyberJaya where most of their target
consumers are based in. The places they choose usually meets their demographics and target
consumers. They follow a simple channel of distribution as they produce right in the kitchen and
sell it directly to the consumers. They do cover other places but mostly subang through their
home-delivery service where they use another method when distributing their product which is
Promotion
MyBurger Lab doesnt really invest on advertising like its competitors ( aggressive marketing)
but rather follows the word of mouth method where they believe if they can provide a good
service or delicious meal it will catch on. This saves time and money while being effective or
efficient so in addition to that they save cost so the burgers can be more affordable or get a
However, MyBurger Lab operates various tactics to promote their products through social media
mostly about their offers, promotions and announcements. They use a multitude of
advertisements( posters and video adverts), sales promotions ( special prices and coupons),
personal selling and PR ( Corporate Social Responsibility and Engaging with consumers).
MyBurger lab uses sales promotions in form of coupons and offers through their facebook page
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and Foodpanda application. They uses these simple marketing tactics by combining various
In reference to my brief interview with the founder or pioneer of MyBurgerLab Chin Renyi he
had mentioned that in five years they plan to grow their enterprise. They would like to focus
more on becoming a household name like how McDonald's has become a treasure of United
States of America. If the current economy improves it will create a demand among public to eat
out so they planned to open more outlets first nationwide such as Malacca, Penang and Johor
Bahru which are mostly populated states in Malaysia. They also had mentioned that they would
like to open more stores in KL itself but also they would focus opening internationally. In
reference to one of the employees at Sunway branch of MyBurger Lab, they mentioned that in
the future they are planning to add more items to the menu in order to diversify such as last year
they added the burger Viviennes Husband that was aimed for catering to vegetarians.
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Conclusion
Improvements could be made but the timescale and effort would take much longer to implement
them. The investment for rapid growth of MyBurger Lab is considerably high with many risks
such as international barriers, quality control and management. The possible scenario could be
the quality of their burger drops significantly and the cost of training new managers could be a
waste of energy. They are also facing issue with cost of making their burgers were they want to
keep the prices affordable with the sudden GST plus the economical crisis in Malaysia its
becoming almost impossible to keep their burgers in the same quality and price. MyBurger Lab
is already labelled as a gourmet burger store so the prices are expected to be high but not too
high according to their target consumer. The sudden hike in taxation has led many restaurants to
be aggressively compete by either lowering their price , finding substitutes and complements to
raise the revenue. Since Burger the main product MyBurger Lab is selling is a more of a hype
based item also a delicacy not a regular meal food such as Nasi Lemak or Mee Goreng in
Malaysia. MyBurger Lab should think of investment and cutting cost as a fuel to growing their
enterprise.
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Recommendation:
From my research i have a few recommendation to improve the problem MyBurger Lab is
facing. The problem they are facing is keeping the price and quality in control with the ever
increasing cost with that the another problem they are facing is growth. In summary the company
is having trouble with cost and sustainability. I recommend that MyBurger Lab should cut cost
investment. Since they use a cost-based pricing strategy its highly recommended to cut cost in
order to achieve a higher profit margin.Instead of cutting cost they can allocate their resources in
a more manageable way. Such as they can hire students at a lower salary in exchange of
should try to get few things automated such as waiters can be replaced by ipads or self ordering
station which can take the cashier out of the picture. Automating tasks which are very repetitive
can save time and make the enterprise more productive after all its called fast food. Overstaffing
can be expensive so this recommendation should be higly considered. Also the company should
consider their potential as in try to branch out to target a new class of consumer such as instead
of sticking to students and office worker individuals they should focus on families. Opening
restaurants in high income family residential areas such as Bangsar, Ampang and Mont Kiara
can replace the McDonalds of that area. In areas where they currently opened, MyBurgerLab is
considered a delicacy as in its not a product that you can afford all the time like Nasi Lemak or
Nasi Kandar. Opening new outlets in Bangsar and Mont Kiara will create a demand since those
areas are hyped up places. They can add more complement goods to their menu such as side
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dishes and drinks. This will add more to the sales and raise the revenue. They can also do daily
catering like DahMakan and strategically plan out the delivery routes to cut cost. They need to
add more food to their menu in order to stay relevant since they are persistent on not pressuring
on advertisement. Another reason they should add new food to the menu because an effective
product line pricing means to have good amount of price gaps between product hence they can
target all sort of consumers. They can open more outlets and monitor them by softwares. To
source the funding of MyBurger Labs growth is to use the Franchise method which will take
Appendix:
1.
Strength: Weakness:
Opportunity: Threats:
- Go international - Competitor
2.
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In-Store Promotion:
Local media:
3.
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4.
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Reference
2.Mankins, M. (2017). Stop Focusing on Profitability and Go for Growth. [online] Harvard
Business Review. Available at:
https://hbr.org/2017/05/stop-focusing-on-profitability-and-go-for-growth [Accessed 26 May
2017].
3.Teoh, W. (2017). Wee Kiat Teoh. [online] Wee Kiat Teoh. Available at: http://weekiatteoh.com/
[Accessed 26 May 2017].