TAKE HOME EXAM

QUESTION 1

INTRODUCTION

Brands can be seen on successful products in the market. Brands are a combination of

a set of ideas and expectations. It depends on how it interacts with consumers about

companies, products and services at all times. If the lack of awareness and no

effective management of the brand, then consumers and competitors will define the

brand according to what is displayed on the brand. This means that the brand should

be active in advancing its position so consumers will know why they choose the

company or the product and service compared to the competitors.

A good brand and logo will produce the first impression of a company, product or

service. A clear position will explain what a company's business is, what benefits it

will get and why it is more important than the competition.

A robust brand can be attributed to the benefits or benefits that shareholders value is

created, and raises awareness among consumers, employees and traders about the

benefits and benefits that will be achieved in the transaction. In other words, a strong

brand builds deep trust in a company due to its superior quality.

Successful brands today not only sell their products or services but they sell their

lifestyle and successfully touch the consumer in terms of psychology. The key word

for a brand to succeed is the satisfaction of the user. This is because the power lies in

the user and the user is entitled to make a choice. Users decide which brands to

choose based on their satisfaction. Satisfied customers and believe in a brand will be

loyal customers then use the brand regularly and this is known as "brand loyalty".

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3 NEW BRAND CHALLENGES

1) The shift from strategy to tactics: – With the increasing pressure to generate ever-

improving profitability, it is often considered a luxury for managers to develop long-

term strategic plans. This is further exacerbated by short-term goal setting, which is

frequently designed primarily for the convenience of the financial community.

Challenges that are often transmitted during the rebranding process of a product or

service are when a company changes its branding strategy to more effective tactics.

For example, what airline will you remember when you plan to go to Langkawi Island

during school holidays? You should be reminded of AirAsia. Why? Because in your

mind, the fare price offered is cheap. And both, they offer a fascinating flight

experience beside her red and gorgeous uniforms.

Have you ever wondered how you can be reminded of this cheap airline brand while

the price offered is not necessarily cheap? This is due to two key factors, which are

their marketing tactics that appeal to you using their services. And a memorable

positive experience after you use their flight service.

2) The shift from advertising to promotions: – As a consequence of the increasing

pressure on brand manager to achieve short-term goals, there is a temptation to cut

back on advertising support, since it is viewed as a long-term brand-building

investment, in favour of promotions which generate much quicker short-term results.

The right promotional channel medium will generate substantial returns to your

business. Customer demographics are very important as they live, how old their target

is, what level of education they are and most importantly what is the appropriate and

effective medium to deliver a message about your product so that it reaches them.

Examples of long proven billboard ads. Advertising on mamak shop counter,

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advertisement on public buses and taxis. Advertising on road billboards or at bus

waiting stations has long been practiced. The big billboards you see on the highways

cost around RM800 thousand a year.

Here are some examples of a transition from an easy advertising strategy to more

effective promotional methods. It is a big challenge for brand new products or

services on the market.

3) On-Line shopping: – In this digital era, online shopping has become a necessity,

not just for buyers but also for merchants. The two major players in this market

complement each other and create a new, revolutionary shopping style that is

efficient, easy and secure even though it never met physically.

The Internet is facilitating on-line shopping. On-line shopping is different from

traditional mail order because:

• Brands are available all the time and from all over the world;

• Information and interactions are in real time;

• Consumers can choose between brands which meet their criteria, as a result of

selecting information which is in a much more convenient format for them, rather

than the standard catalogue format.

3 NEW BRAND OPPOTUNITIES

1) Opportunities from technology: – Brand marketers are now able to take advantage

of technology to again a competitive advantage through time. Technology is already

reducing the lead time needed to respond rapidly to changing customers need and

minimizing any delays in the supply chain. When technology is growing rapidly,

internet users can buy items sold in America through e-commerce. The item will

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arrive within a few weeks or earlier. The world was once far away as it was in the

same field. People at the far right of the field can reach the left edge of the field in a

short period of time.

2) More sophisticated buyers: – In business-to-business marketing, there is already an

emphasis on bringing together individuals from different departments to evaluate

suppliers’ new brands. As inter departmental barriers break down even more, sellers

are going to face increasingly sophisticated buyers who are served by better

information system enabling them to pay off brand suppliers against each other.

3) The growth of corporate branding:- With media inhabiting individual brand

advertising, many firms are putting more emphasis on corporate branding, unifying

their portfolio of brands through clearer linkages with the corporation, which clarifies

the those all the line brands adhere to. Through corporate identity program functional

aspects of individual brands in the firm’s portfolio can be augmented, enabling the

consumer to select brands through assessment of the values of competing firms. Firms

developed powerful corporate identity programmes by recognizing the need first to

identify their internal corporate values, from which flow employee attitudes and

specific types of staff behavior secondly, to devise integrated communication

programmes for different external audiences.

QUESTION 2

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Brand 1

McDonald's Corporation is the largest chain of fast food restaurants in the world. The

company started in 1940 with a restaurant opened by Dick and Mac McDonald's

siblings, but was the introduction of their "Speedee Service System" in 1948 that

founded the principles of this fast food restaurant. However, McDonald's currently

declares its "inception" date as the opening date of the first franchise restaurant by

Chief Executive Officer Ray Kroc in 1955. Actually, Ray Kroc's restaurant is the

ninth restaurant for McDonald's.

Brand 2

Kentucky Fried Chicken (KFC) with operations center in Louisville, Kentucky,

United States is part of! Brands, Inc .. Founded by Colonel Harland Sanders, KFC is

known for its fried chicken which is a chicken chick in a mixture of wheat flour, salt,

black pepper, and a monosodium glutamate cooked with hot oil in a pressure cooker.

Sanders sold his KFC franchise in 1964 to US $ 2 million. Since then, the franchise

has been sold three times more. The latest owner is Pepsico who makes it a part of

Tricon Global Restaurants, now known as Yum! Brands, Inc. KFC Malaysia is held

by KFC Holdings Bhd., A company owned by Kulim Berhad.

POSITIONING

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Brand 1

The McDonald's brand is available in 119 countries around the world. 30,000 outlets

serve nearly 50 million subscribers daily. More than 70% of restaurants worldwide

are owned and operated by independent local entrepreneurs.

Additionally, the company runs other restaurant brands, such as Aroma Café, Boston

Market, Chipotle Mexican Grill, and minority ownership at Pret a Manger. As of

December 2003, it also has Donatos Pizza. McDonald's also owns a subsidiary,

Redbox, which started in 2003 as an automated 18-foot wide convenience store, but

since 2005

Most of the McDonald's separate restaurants provide counter and past driving

services, with indoor seating and outdoor seating sometimes. Last-drive services have

different names in different countries, such as Drive-Thru, Auto-Mac, or McDrive,

and often provide separate places to order, pay and receive food, although the latter

two steps are often combined. A part of the "McDrive" outpost by the highway does

not provide a counter or seat service. On the other hand, out-of-town high-density

townships often do not provide last-drive services. There are also a number of outlets

that are mostly located in the downtown area that provide Long Walk ("Walk-Thru")

services.

There are also specialty themed restaurants, such as the 1950s-themed "Rock-and-

Roll McDonald's". Several outlets in the suburbs and neighboring cities provide

indoor or outdoor playgrounds called "McDonald's PlayPlace" or "Playland". These

gardens were created in the 1970s and 1980s for the United States, but later prepared

internationally.

The McDonald's Corporation business model differs slightly with most fast food

networks. Apart from franchise fees, supplies, and sales commissions, McDonald's

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also collects partially related rent to sales. As a condition of the franchise agreement,

McDonald's Corporation owns most franchise properties. However, in the United

Kingdom, this business model is not in line with the international model, with less

than 30% restaurants being franchised and the majority are still the property of the

company.

McDonald's trains buyers and prospective franchise managers at their own

universities. The first McDonald's University is located in Oak Brook, Illinois, which

is in the same city as its headquarters. A similar "U Hamburger" school was

established around the world.

The Positioning Strategy is defined as performing different activities than competitors

or doing the same activities differently. This is the way the company becomes a

superior player in the industry. Many people describe their positioning on the basis of

their customers.

McDonald has made room for customizing local tastes without affecting the core of a

business such as in Europe for example providing children's gaming facilities and

selling local traditional foods to facilitate acceptance of products that are considered

to be foreign to them. Apart from that the same strategy is to become the first player

in a place as well as an aggressive promotion to ensure the presence of a restaurant

somewhere. At this stage of this good performance, McDonald's companies should

take the opportunity by choosing a growth strategy that will open as much of a branch

as possible to master the fast food market.

McCafé uses the concept of a bistro-shaped restaurant and is a McDonald's

Corporation effort to acquire a market share in the gourmet coffee sector that is very

popular solely to prevent its market share losses to companies such as Starbucks. With

original leather chairs and sofas, and a bistro-style table, the atmosphere is similar to a

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modern coffee shop. Customers who eat in the restaurant use pottery dishes and

stainless steel stacked cutlery, as opposed to plastic trays and paper wrappers.

The menu provides a standard bistro food, including panino sandwiches, miniature

coffee and espresso, and cakes and pastries. All meals can be ordered for retrieval.

Coffee compounds themselves are sold on a regular basis or in a can to brew at home.

Brand 2

As a market leader, KFC Malaysia continues to study market developments and

trends, to identify new opportunities that can be explored in order to increase profits.

In order to generate more market and returns, the QSR Group spends millions of

ringgit each year for advertising, promotional and other marketing support programs.

This aims to increase consumer awareness, as well as increase their purchase of the

products offered.

All KFC ads on radio and television show KFC restaurants as a fast-food-to-family

restaurant, with a cheerful, fun and fun concept. At all times, the advertisements are

carefully cautious and take into account the target audience category or its audience.

In the meantime, in order to enhance the long-lasting relationship with children, KFC

Malaysia took the initiative to publish a KFC Hour children's television show. The

show proved to be very effective and recognized as one of the most popular children's

programs on local television.

In addition, in an effort to solidify the network of "restaurants for families", KFC

Malaysia also organized several exciting programs to enhance its product market.

Among the programs are the creation of a children's club known as Chicky Club

(formerly known as Kid's Fun Club), holding a children's playground at selected

restaurants and introducing food products to suit the taste of the children - Chicky

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Meals. KFC also offers a birthday party service at its restaurant, featuring KFC's

cheerful mascot - "Chicky" with a council attorney who will present a variety of

exciting events and games. If there is a parent who is interested in organizing their

birthday at KFC, they can contact any nearby KFC restaurant.

In order to translate the company's policy so that KFC is better known by the

community and more customer-friendly, some studies on consumer behavior are also

carried out by certain research companies appointed by KFC. The data and results

obtained are then reviewed by the panel of internal researchers before tabling to the

Group's management. A survey on tens of thousands of Malaysian respondents makes

KFC better understand the needs of its customers and users.

Point-of parity and Point-of-Differences

McDonald’s and KFC are two of the most prominent fast food chains cherished by

numerous around the globe. In the matter of burgers, McDonald’s is dependably the

top choice while in terms of seared chicken; KFC is dependably the first thing that

springs to mind. The explanation behind this is on the grounds that the very results of

these two chains have turned into their trademarks and in this way, their personalities.

The contrast in McDonald’s and KFC boils down to for the most part the cooking that

they serve.

 Range:

 McDonald’s attention is fundamentally on hamburgers, cheese burgers and

broiled chicken and it have a wide range of burgers.

 KFC has a more extensive scope of approaches to get ready chicken. KFC

does wraps, servings of mixed greens and pieces (ala Popcorn Chicken) or

now and again even pies and kebabs.

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 Started:

 McDonald’s was started in year 1940.

 KFC was launched in year 1930.

 Market share:

 McDonald’s have 19% share in worldwide market.

 Whereas, KFC have only 9% share in worldwide market.

 Services and Prices:

 McDonald’s have very fast services and have relatively low prices for their

products.

 KFC have fast services and relatively higher prices for their products.

 Profits:

 McDonald’s annual turnover is almost 27 billion Dollars.

 KFC is having almost 684.5 million dollars turnover.

 Breakfasts:

 Both are also offers breakfast.

 Home delivery:

 Both offers the facility of home delivery.

Strength

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  The strength of McDonalds’ is strong brand name, picture, large share of

market, solid worldwide vicinity. By regional standards adjusted sustenance

menus and huge promoting spending plan.

 The strengths of KFC are huge famous brand name and high brand

dedication, more number of items, hygienic sustenance and snappy

administration, good promoting and showcasing, Strong trademarks

formulas.

How Might it be Improved?

Creative and critical !! Two important elements that are also among the major

demands in your mission to advance the business. In other words, you need to think

and work harder to make your business something different than others to attract more

customers. Businesses that have their own unique creativity will be more easily

recognized by additional users if the products or services provided are in line with the

needs of consumers. However, the creativity factor must be in line with your business

strategy so that the factors can really impact your business.

In addition, as an entrepreneur or trader, courage to take risks is very important. But

do not blindly take any risk without studying the factors and their effects first. In the

issue of seeing deficiencies as a golden opportunity, courage plays an enormous role.

Sometimes you may have discovered the shortage and have been thinking about how

to overcome it, but with the ability to be there are you so brave to implement it? Make

sure you complete the solution you want to take. Living in the business world is like

the profit of the crocodile aroused, thanks to the sinking stone. There are effects and

risks awaiting.

Attractive Business Promotion & Advertising

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The main strategy for leveraging business is through promotion and advertising.

Today, we can see how many billboards, banners, posters, advertising papers and

more of the way that traders use to spread their business. Undoubtedly, promotion and

advertising is indeed one of the most effective ways to attract customers. However,

more creative and engaging advertising revenue can certainly have a greater impact

than the other regular ads. And when it comes to creating creative and extraordinary

ads, you also need to ensure that the quality of the products or services you provide is

the same as what you have advertised.

In conclusion, creativity in business plays a very important role in the business itself.

There are many more ways and means to make a business more creative and

interesting. Every aspect of the business should be emphasized from the aspect of

promotion to sales so that the business is really profitable.

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