Ovlatine - 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 It was originally made as a nutritional drink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 it’s 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
Product Packaging Pricing Range Unit Per Sale
Ovaltine Melted Chocolate Powder Soft Pouch RM 3.70 150g

Ovaltine Melted Chocolate Powder Soft Pouch RM 6.90 400g
Ovaltine Melted Chocolate Powder Soft Pouch RM 15.90 1kg
Ovaltine Melted Chocolate Powder Jar RM 5.90 200g
Ovaltine Melted Chocolate Powder Jar RM 8.70 400g
Ovaltine Melted Chocolate Powder Jar RM 19.30 1.2kg
Ovaltine Melted Chocolate Drinks Soft Pouch RM 12.35 35gx 20 packet
3 in 1
2.4 Product Range
 Ovaltine Melted Chocolate Powder (Soft Pouch)
Ingredient Sugar, Alkalized Cocoa, Whey, Malt

Vitamins and Magnesium Oxide, Dicalcium
Minerals 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).
Packing 150 g
Vitamin B1 (Thiamin
Hydrochloride).
Packing 400 g
Vitamin B1 (Thiamin
Hydrochloride).
Packing 1 kg
 Ovaltine Melted Chocolate Powder (Jar)

Vitamin B1 (Thiamin
Hydrochloride).
Packing 200 g
Vitamin B1 (Thiamin
Hydrochloride).
Packing 400 g
Vitamin B1 (Thiamin
Hydrochloride).
Packing 1.2 kg
 Ovaltine Chocolate Malt Drinks 3 in 1
Ingredient Sugar, Alkalized Cocoa, Whey, Malt,

Skimmed Milk Powder, Palm Oil
Vitamin B1 (Thiamin
Hydrochloride).
Packing 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
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 Malaysia’s 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 Malaysia’s diversified blue chip
companies with leadership of the nation’s 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&N’s 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 Group’s
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 company’s 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 ice–cream products in 1974, the launch of 100 Plus isotonic
drinks in 1984 , and the acquisition of Nestlé’s 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 Remuneration Committee
Mr Anthony Cheong Fook Seng

Mr Lee Kong Yip

Mr Leslie Oswin Struys

Senior Independent Director
Y.Bhg. Dato' Dr Mohd Shahar bin Sidek
Y.Bhg. Dato' Anwarrudin bin Ahamad Osman

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: cosec@fn.com.my
Subsidiaries
F&N Dairies (Malaysia) Sdn Bhd F&N Beverages Marketing Sdn Bhd
70, Jalan Universiti 1, Jalan Bukit Belimbing 26/38
P.O. Box 19 Persiaran Kuala Selangor
46700 Petaling Jaya Section 26, 40400 Shah Alam
Selangor Darul Ehsan Selangor Darul Ehsan, Malaysia
Malaysia Tel: +603 - 5101 4288
Tel: +603 - 7952 6000 Fax: +603 - 5192 3957
Fax: + 603 - 7956 6950 Website : www.fnbm.com.my
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
3.6 Brand, Major Products and Services
Over the years, the brands in F&N’s 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&N’s 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 Company’s 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. Age : 25- 45 years old

b. Gender : Female
c. Education : Secondary and above
d. Occupation : Housewife, Homemakers
e. Income range : RM 1000 - RM 4000
f. Race & Ethnicity : All races
g. Geographical Location : Urban
4.1.2 Psychographics
a. Perception : Consumers who are concern

about their family health.
b. Learning : Through the media which is
newspaper, radio, television
advertising, website, friends and
relatives.
c. Motivation & Needs : Products that beneficial to health
d. Attitude& Personality : Health conscious and taste good
e. Lifestyle : Healthy diet
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
Malaysia’s 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 Malaysia’s 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 world’s
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 Milo Soft pack

Price RM18.30
Unit of sale 1kg per pack
Product Milo Soft pack

Price RM 35.40
Product Milo Tin

Price RM29.70
Unit of sale 1kg per Tin
Product Milo 3 in 1 Fuze

Price RM14.90
Unit of sale 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.
Product Vico Pounch

Price RM29.30
Product Vico Pounch

Price RM 6.90
Unit of sale 400g per pack
Product Vico Pounch

Price RM3.90
Unit of sale 200g per Tin
Product Vico Tin

Price RM18.90
Unit of sale 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.
Product Cadbury Hot Chocolate

Drink 3 in 1
Price RM12.00
Unit of sale 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 Vitagen
Price RM3.9
Unit of sale 5x15ml
Product Vitagen less sugar

Price RM4.5
Unit of sale 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 “Malaysian’s 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 WEAKNESS
 In compliance with food safety  Lack promotion
standards requirement.  Less information provided
 Ovaltine contains more health  Less popularity
benefits.  Lack competitive strength, and
 Attractive of the color representative. low market share.
 Ovaltine has been a over 100 years in  Less activity of promotion and
the market. event.
 Cheaper price  Lack morale and commitment.
 Consumers can get the product easily.
OPPORTUNITY THREATS
 Promotion helps market  No R&D (Research and Development).
development.  Environmental will affect the sale.
 Reset the market strategy  too much of competitor
 technology and innovation now  With the demand of chocolate drinks
 More healthy based products are increase, competitor increase.
introduced in global market.  Inflation.
 Exportation of product  Consumers prefer soft drinks compare
 Product price are affordable than healthy drink.
 In compliance with HALAL  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

b. Gender : Female
c. Education : Secondary and above
d. Occupation : Housewife, Homemakers
e. Income range : RM 1000 - RM 4000
about their family health.
relatives.
8.2 Proposed Secondary Target Audience
8.2.1 Demographics

b. Gender : Male and Female
c. Education : Primary and Secondary
d. Occupation : Student
e. Income range : RM500 and below
about their health.
relatives.
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 didn’t sell whole series of Ovaltine products. Price if
Ovaltine’s 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 Ovaltine’s products with free gifts, like
biscuits, milk, corn flake and so on. Most of the Ovaltine’s 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 Ovaltine’s 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 Alamanda Pacific

9 Nov 2011 (Putajaya) (Batu Pahat)
6pm -8 pm 10 Nov 2011 11 Nov2011
6pm -8 pm 6pm -8 pm
Milo 3 5 2
Ovaltine 0 1 0
Vico 0 1 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:
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:
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:
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
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: jinnychong@fn.com.my
To: yiho_ho@hotmail.com
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: jinnychong@fn.com.my
To: yiho_ho@hotmail.com
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
From: yiho_ho@hotmail.com
To: jinnychong@fn.com.my
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 Ovaltine’s
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-others-
ovaltine.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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Chapter 1: Project Overview

Chapter 1: Project Overview

1.2 Problem Statement and Issues

Less information that provided to Consumer, a smart consumer they need to

1.3 Objective and Aims

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

Product Packaging Pricing Range Unit Per Sale

Ovaltine Melted Chocolate Powder Soft Pouch RM 3.70 150g

2.4 Product Range

 Ovaltine Melted Chocolate Powder (Soft Pouch)

Ingredient Sugar, Alkalized Cocoa, Whey, Malt

 Ovaltine Melted Chocolate Powder (Jar)

Ingredient Sugar, Alkalized Cocoa, Whey, Malt

 Ovaltine Chocolate Malt Drinks 3 in 1

Ingredient Sugar, Alkalized Cocoa, Whey, Malt,

2.6 Product Life Cycle

2.7 The Brand

Ovaltine was a chocolate malt beverage band, it was developed in Berne,

2.8 Brand Image and Implication

2.9 Strength and Weakness

 Low market share

2.10 Advantages and Disadvantages

 Consumers cannot get the products in every where

2.11 Unique Selling Proposition

2.12 Promotional History and Advertising Schedule

In 1994, Ovaltine had broadcasted a Television Commercial in Malaysia television

2.13 Positioning Statement

Chapter 3: The Company

3.1 Company Overview

3.2 Business Description

F&N’s continuous commitment of providing the consumer with the highest

3.3 Company History

3.4 Key People

3.4.1 Non- Executive Directors

Y.A.M. Tengku Syarif Bendahara Perlis Syed Badarudin Jamalullail Ibni

Y.Bhg. Tan Sri Dato' Dr Lin See Yan

Mr Koh Poh Tiong

Mr Anthony Cheong Fook Seng

Mr Lee Kong Yip

Mr Leslie Oswin Struys

Y.Bhg. Dato' Dr Mohd Shahar bin Sidek

Y.Bhg. Dato' Anwarrudin bin Ahamad Osman

Y.Bhg. Dato' Dr Nik Norzrul Thani bin Nik Hassan Thani

Mr Huang Hong Peng

Mr Hui Choon Kit

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