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Maggi Magic Meals – Locally Inspired ?

By
Mini Me Insights
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Nestle has recently introduced Maggi Magic Meals recipe meals. This is how Nestle describes the product. “This is the first and only product in Malaysia designed to cook in the rice cooker. It is a breakthrough innovation whereby the dish is cooked in a special MAGGI cooking bag and cook together with rice in the rice cooker.”Wait a minute, did Nestle R&D staff got the inspiration for Maggi Magic Meals from beggar herbal chicken乞丐药材鸡, which is wrapped in aluminium foil sometimes with a layer of plastic to keep the herbal soup from leaching.  So this may be a case of a locally inspired product that has gone regional 🙂
 
http://mk-yummy.blogspot.com/2010_05_01_archive.html

 

KFC’s a.m getting darker

By
Mini Me Insights
-

KFC’s a.m. strategy seems to be failing due to the lack of imagination. Look at McDonald’s, the company has stormed the market with its headline-grabbing free breakfast campaigns. People were seen queuing at McDonald’s outlets since early morning to get their share of freebies. Yours truly was one of them. What the McDonald’s breakfast campaigns have achieved after giving out thousands of free burgers was to make consumers warm up to the idea of having burgers (US: breakfast sandwiches) and coffee/tea for breakfast. With the trial, the US fast food giant hopes to turn unique consumers into repeat users and better use of the underutilised morning daypart.KFC conducted a very much muted campaign by giving away vouchers for discounted breakfast meals as part of its March 2013 breakfast deals. However, the breakfast meals were not free and as a result of that it failed to excite consumers. Getting the coupons itself was a tough job too. The two contrasting marketing styles mean that consumers are more aware of McDonald’s breakfast offerings as many have tasted them through the free breakfast promotions. What KFC needs to do is to promote its breakfast fares to consumers and one of the best ways is to have a free breakfast day.

Alternatively, localisation of food can help drive visit. Porridge has already appeared in the breakfast menu of KFC, followed recently by McDonald’s. Malaysians love their nasi lemak. So why not introduce a Colonel Nasi Lemak Combo served with KFC chicken and sambal? What about soft boiled eggs with coffee and hash brown? OldTown is doing quite a good job with its affordable breakfast sets. Therefore, there are still a lot more KFC can do to make breakfast really interesting.

Have a Cuppa and Enjoy the Election

By
Mini Me Insights
-

In Malaysia, election is around the corner. On 5 May 2013, Malaysians will know if the ruling coaling BN or the opposition Pakatan will win. In the meantime, coffee companies are busy advertising on the newspapers to take advantage of the election fever.

Power Root (M)’s Ah Huat marketing is very innovative. The company cleverly uses Ah Huat as a politically neutral fictitious election candidate with a funny face to bring a lighter moment to the serious business of election. Regardless of who wins, a vote for Ah Huat means a vote for progress and development.

So have a cuppa, sit back and huat ah!

Tesco – Trying to be Ahead of the e-Grocery Game

By
Mini Me Insights
-

Tesco has launched Grocery Home Shopping Service, touted as the first online grocery shopping service in Malaysia by a hypermarket operator. Finally, one can do their grocery from the comfort of their office/house for a fixed delivery fee of RM 10. Delivery can be made from 10am to 10pm seven days a week. The address is at http://eshop.tesco.com.my/. Phase one will cater to residents living within the 20km radius of Tesco Mutiara Damansara.

This service is ideal for image-conscious office ladies who do not wish to carry products that are heavy like rice and edible oil and stuff that are bulky and not nice like toilet rolls. The service is also good for people without their own transport and those living in high rise apartments.

Key risk is consumer satisfaction: The price in the order confirmation email may defer from the final bill. That is why Tesco calls it guide price. Four reasons were given for the different prices – changing in-store prices, substitutions (when the product is unavailable on the day of the delivery, the customer will be given a substitution that they either accept or decline), weighted products (depending on the scale) and promotion dates (if your delivery slot is booked for after the promotion end date, the promotion price will not be applied).

Why e-store? Tesco is seeing its top line growth slowing down mostly due to strong competition from smaller store formats including minimarts with the likes of 99 Speedmart and KK Super Mart as well as the growth of local hypermarket chains/wholesalers such as NSK, TLC Hypermarket, Jaya Grocer and Econsave. E-grocery may add some growth momentum and excitement to Tesco.

Tesco (Malaysia)
2005/06
2006/07
2007/08
2008/09
2009/10
2010/11
2011/12
2012/13
Revenue (RM m)
1,113
1,678
2,564
3,297
3,543
3,876
4,345
4,591
yoy (%)
–
50.76
52.80
28.59
7.46
9.40
12.10
5.66
Hypermarket (no.)
10
19
19
28
31
37
45
47
Other (no.)
3
–
1
1
1
1
1
1
Source: Tesco Plc

I believe Tesco has also sensed the rising B2C market in Malaysia and the opportunities for online grocery shopping. Malaysians are not just spending huge on AirAsia air tickets but also on other stuff on B2C sites like Lazada and Zalora etc.

The e-commerce venture will be a cash-burning business in the initial phase unless volume picks up, which is the ideal case. The worst case is Tesco can easy fold it and try again another time.

Retro Campaign and White Coffee

By
Mini Me Insights
-

After the Milo throwback campaign in 2011, Nestle is engaging in another retro marketing for Nescafe, which is celebrating its 75th anniversary in 2013. This time, it is not about collecting old Milo delivery vehicles but celebrating more beautiful moments with Nescafe.

Retro sells in Malaysia when it comes to white coffee, a popular coffee originated in Ipoh. The coffee is usually roasted in margarine, brewed and served with sweetened condensed milk. Companies that can project the authenticity of their white coffee will thrive in the battle for a share of consumers’ spending. Market leader OldTown, which was the first to popularise the 3-in-1 white coffee blend and the modern kopitiam restaurant chain, has the natural advantage. The company was set up by the son of the owner of Nam Heong Coffee Shop in Ipoh. Nam Heong started selling one of the most genuine white coffees in 1958.

The popularity of OldTown white coffee has inspired a host of new competitors including Nescafe and Super Group and the only thing they share in common is the use of the Nanyang traditional coffee cup and saucer on their white coffee packaging and the occasional use of the word Ipoh to denote authenticity.

New comer Power Root (M) knew that in order to stand apart from the rest of the competitors, it had to do something differently. The company created the Ah Huat character, which means prosperity in the local Hokkien dialect. The middle-aged man is depicted as your friendly coffee expert who has been brewing and serving white coffee for a long time from his traditional kopitiam store. This fictitious character helps Power Root to lay claim to tradition and authenticity. The melody that accompanies the advertisement is catchy with the word “huat” featuring many times in the lyric. The music and the use of the word “huat” resonate well with Chinese consumers who love to “huat” or become wealthy (who doesn’t want to be wealth these days). The Ah Huat white coffee also markets well during Chinese New Year as gifts due to the prosperous connotation.

Beyond Malaysia, the Ah Huat white coffee can easily tap Chinese-speaking markets especially Singapore and China. The key disadvantage of the Ah Huat marketing is the difficulty to tap the Malay market in Malaysia.

For Nescafe, the key challenge is to convince white coffee lovers that its white coffee tastes authentic, just like what you get from the kopitiam in Ipoh. This may mean that the company may need to spin more retro tales to increase acceptance.

Greek Yogurt Aims for the Up Market

By
Mini Me Insights
-

The Greek yogurt craze has finally arrived on Malaysian shores with the Nestle Greek Yogurt, which comes in three variants – Natural, Strawberry Field and Peach Harvest. What makes Greek yogurt so expensive is its high protein content and thick texture. According to Nestle Malaysia, “every 2 servings of Nestlé Greek Yogurt Natural 135g provide 24% of adult daily protein requirement.”

Greek yogurt is not cheap. It is priced at the upper end of the market, making Nestle Greek Yogurt the most expensive yogurt in Malaysia by unit price.

Product
RM/gram
Volume (g)
RM
Premium
Nestle Greek Yogurt
0.0289
135
3.90
Elle & Vire 0% Fat Yogurt
0.0279
125
3.49
Milkana & Fruits
0.0260
100
2.60
Medium end
Fernleaf Calci-Yum
0.0185
60
1.11
Nestle Smooth & Fruity Selection
0.0181
135
2.45
Nestle Extra Creamy & Fruity Paradise
0.0178
135
2.40
Fernleaf Calci-Yum MAX
0.0154
110
1.70
Anlene Yogurt Mango
0.0150
110
1.65
Low end
Nestle Fat Free Yogurt Kiwi
0.0126
135
1.70
Marigold 0% Fat Yogurt
0.0110
150
1.65
Nutrigen LiteYo Yogurt
0.0107
135
1.45
Marigold Low Fat Yogurt
0.0103
150
1.55
 Source: Mini Me Store Check – Aeon Cheras Selatan and Aeon Big Bandar Tun Hussein Onn (April 2013)
Source: Image by Mini Me Insights taken at Aeon Cheras Selatan

Will customers give in to the temptation? Perhaps yes for the novelty of it. Given the low fat, high protein and most of all thick and creamy taste, this product will appeal to consumers who are looking to indulge in a premium yogurt. The distribution channel is also important. This product is more likely to appeal to consumers who are less price sensitive such as expats who are aware or have tasted Greek yogurt. Therefore, Nestle Greek Yogurt should be made available in areas like Mont Kiara and Bangsar where there are a large expat community.

Will local Marigold follow suit with a Greek yogurt of its own with a much lower price point? I really do hope so because RM 3.90 for a yogurt seems awefully expensive to me.

Coca-Cola in glass bottle has reappeared in Malaysia and this time, it is sold in hawker-style Chinese restaurant

By
Mini Me Insights
-
Coca-Cola in glass bottle has reappeared in Malaysia and this time, it is sold in hawker-style Chinese restaurants. The 250ml drink, enough to satisfy the thirst of the budget-conscious consumers, is priced at RM 1.20. Clever restaurant owners have even started selling the drink with ice cubes for an extra RM 0.20, thus bumping up the price to RM 1.40 but still cheaper than most beverages.
However, a survey by Mini Me has found not many consumers are actually ordering this affordable Coca-Cola in glass bottle. The reason is hawker-style Chinese restaurants have never been a place for consumers to drink carbonated soft drinks when eating their soup noodles or mixed rice. They would rather drink Milo, coffee, tea or Chinese herbal tea. Often times, people go for a particular hawker-style Chinese restaurant just for its drink like Nam Heong in Ipoh for its famous White Coffee.
To encourage more people to drink Coca-Cola in glass bottle, restaurant owners can consider selling the fizzy drinks at a discount with Western food. Yes, some of the hawker-style Chinese restaurants do have stalls selling Western dishes like steak. As always, carbonated soft drinks are best consumed with Western food such as French fries, steaks and burgers.  
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