BMR 3164 BRAND MANAGEMENT ‘POWER ROOT’ No |Name |Student ID |Hp No | |1 |DHEEPAN A/L PRANTHAMAN |1061111669 |017-7648515 | |2 |TEH AI ZEK |1051103950 |016-7628762 | |3 |NURUL AQILAH MOHD NAJRI |1041105941 |013-6286479 | |4 |AZWIN BINTI KHAIRUDDIN |1051101309 |017-2477010 | |5 |ONG LEE YING |1051103227 |012-7640604 | SEMESTER 1 08/09 MULTIMEDIA UNIVERSITY (436821-T)
MELAKA CAMPUS, JALAN AYER KEROH LAMA, 75450 MELAKA, MALAYSIA. Tel 606 252 3594 Fax 606 231 8799 Contents ¦ Brand audit objectives, scope, and approach————————————————————-2 ¦ Background about the brand (self-analysis)—————————————————————4 ¦ Background about the industries—————————————————————————–5 ¦ Consumer analysis (trends, motivation, perceptions, needs, segmentation, behavior)—–7 ¦ Brand inventory ¦ Elements, current marketing programs, POPs, PODs———————————–10-13 ¦ Branding strategies (extensions, sub-brands, etc.
————————————–14-16 ¦ Brand portfolio analysis————————————————————————17-19 ¦ Competitors’ brand inventory—————————————————————–20 ¦ Strengths and weaknesses———————————————————————-22 ¦ Brand exploratory ¦ Brand associations———————————————————————————24 ¦ Brand positioning analysis———————————————————————–25 ¦ Summary of competitor analysis——————————————————————— —-25 SWOT analysis————————————————————————————————-26 ¦ Brand equity evaluation————————————————————————————29 ¦ Strategic brand management recommendations —————————————————30 ¦ Reference——————————————————————————————————–31 Brand Audit Objectives
• To enhance our understanding of the brand audit process.
• To enhance our understanding of how a successful brand works.
• To showcase our teamwork.
• To experience being a brand manager.
• To study the Power Root brand. Scope
In designing our brand audit study, we chose to limit our scope to the local arena.
There are several reasons for this. First we feel that the examples in our textbook are mostly international brand to which we have no strong affinity or understanding. Secondly, by choosing a local brand we will have access to more information which will be readily available compared to foreign brands. Finally we feel that it is a better choice to start with something at home to learn about brand audit and it also to show that we are proud of our homegrown brands.
These are the reasons as to why we chose Power Root. Our scope of study will cover many aspects of the brand.
We will study the background, followed by the brand’s inventory (elements, branding strategies, and marketing strategies), brand associations, perceptions and positioning and we end with some recommendations to enhance the brand. Approach There have to be a way of how to conduct a brand audit. Our approach is this: Format First we came up with a format on the things that needed to be included in the study. As brand audit covers a wide variety of things to discuss and analyze, a proper format is vital in order to ensure the audit progresses smoothly and achieves its objectives. We included important areas such as brand inventory, brand exploratory and we included recommendations on how the brand can be further enhanced. Information Search The group had an intensive information search in order to do a thorough audit.
The search was conducted via Internet, library database, newspaper, magazine and television. Group discussion A group discussion was held in order to analyze the Power Root brand. The group discussed various aspects of the brand based on the information gained during the search. Task allocation Task was allocated among team members for report compilation. Background Power Root is a homegrown brand and is a true success story when it comes to Malaysian brands. The story of Power Root began in 1999. This brand was born in Johor and officially launched on 23 July 1999 and since then it has not looked back ever since. Owned by the parent company NatBio Resources Sdn
Bhd, Power Root has grown from strength to strength for the past 9 years it had been in existence. Their main and core product strategy is by commercializing the well know aphrodisiac more well known as Tongkat Ali (Eurycoma Longifolia) and Kacip Fatimah (Labisia Pumilia). These 2 herbs is popular in Malaysia due to wide believe about its ability to give energy and enhance sexual prowess. They are also commonly used for ensuring good health and physical well being. From 2 main products, they have grown and extended into many products by using the same brand name. More information about the brand portfolio of Power Root is in the inventory segment.
They first established a branch in Kuala Lumpur in 2001 for the purpose of co-ordinating logistics and also to enhance customer service. Power Root have 2 manufacturing plants, the earliest was established in Johor in 2003 and was followed by another manufacturing plant in Kuala Lumpur. In 2007 Power Root via its holding company Natural Bio Resources Sdn Bhd was listed in the Second Board of Bursa Malaysia. Power Root’s operational objective is ‘Quality, Innovation & Sharing’. To stay true to this mantra, they have invested heavily in R & D to come up with a line of brand that best signifies quality. They are also committed to bringing these herbs beyond Malaysian shores across the globe to enhance its popularity and bringing benefit to the product in return.
All in all Power Root’s is a success today stems from its entrepreneurial spirit, concentration in research and development in improving existing products and commitment in providing consumers variety choices of its high quality products. Background of the Industry When we talk about industry, first we need to identify the elements that constitute the industry. What is the background of the industry that Power Root is operating in. Power Root is geographically located in Malaysia. In terms of the industry, Power Root can be concluded as being in several different segments within the larger beverage industry. They are mainly in the instant coffee drinks segment with the core product being Ali Cafe TongkatAli drinks. This instant coffee segment is a large and very attractive segment. Due to changes in lifestyle, current trend shows that people value speed.
This to the extend something as simple as making coffee is required to be simplified which explains the phenomenal growth of instant coffee drinks. Can drinks is another segment they are operating in. Can drinks is a big market with almost all beverage having a can product. People like can drinks for its convenience and cool factor. The cereal market is another industry segment where fierce competition is common. Due to the high consumption nature of breakfast foods, this segment is lucrative to capture. Chocolate drink segment is fast growing. Although not as strong as in US but cocoa based drink trend is catching on in Malaysia. Power Root knows this and hence the release of Cocoa based drink like Pearl Cafe’ Choco.
A little background about Tongkat Ali which is being used as the main ingredient not only by Power Root but also by Power Root’s competitors. Tongkat Ali also known as Eurycoma Longifolia Jack is a common herbal shrub usually found along the slopes of hilly terrain of the Malaysian rainforests. This shrub is identified as the ‘Bitter Cures’ because it is really bitter and it also can cure all sorts of ailments and diseases. ‘Pasak Bumi’ or the ‘Earth Fixer’ is also one of them and because of its solid and long winding roots, it got its name and the name is Tongkat Ali. The name is said to be associated with a dashing warrior, the hidden meaning to the name- the spirit of manliness and health. The herb helps to revitalize tired minds and body and soothes a person.
In addition, Kacip Fatimah is another common herb found in the rain forests of Malaysia, it contains element of antioxidants and photo estrogen, where these two elements are known to provide goodness and health to both women and men. These 2 herbs together present a multimillion or perhaps a multibillion dollar market to be exploited. With the emerging trends and unfulfilled needs in terms of personal healthcare this industry’s core has a long way to go. The general situation right now in the industry is the intense competition among the manufacturers of such herb based beverage drinks. Since taking the herb in pill or medical form does not interest consumer much, beverage is seen as the next best way to sell such products.
Hence many entrants have made the fight hard especially when some competitors purposely copy the entire brand elements of another successful brand. Consumer Analysis Needs There is a real need for energy and herbal based drink in Malaysian market. Hence Power Root is seen as a natural choice because they contain Tongkat Ali and Kacip Fatimah, 2 most well known energy boosting herbs. Because of these two main herbs in their products, customer demands are increasing because they believe that Power Root products can help them in their daily lifestyles in all ways. They believe they will feel re-energized and be more energetic after drinking it. These herbs are indigenous to Malaysia and its properties for promoting physical well-being are highly regarded by Malaysians.
There is also a real need for an integrated product that combines energy herbs and a daily beverage of people’ choice be it coffee, tea or cocoa drinks. These needs are however not restricted to local arena alone as there high demands from foreign countries such as Brunei, Indonesia, Middle East signifying the universality of the need. Segmentation First and foremost, Power Root as a family brand targets almost everyone in the market. However when it comes to selecting and targeting segments then they become selective. There are several segmentations as practised by Power Root: Race: Power Root has segmented the market into racial segments and it actively targets the Malay market.
Its entire branding, marketing and promotional strategies are very much focused on this segment. There are attempts to court other racial segments such as the Chinese segment but it is largely limited. Gender: Usually tongkat ali is targeted towards the male customers whereas Kacip Fatimah is targeted to the female audience. Tongkat Ali is seen as the male aphrodisiac while Kacip Fatimah on the other hand is associated with women. Both herbs can be consumed by both genders considering that there are similar benefits between them but for marketing purposes, they are marketed separately to different segments. Age group: 18 – 49 Power Root has chosen to target this group age segment.
The reason could be that this age group has the purchasing power necessary to buy and consume the products. Besides that as this time period is where they grow up, they will seek energy boosting beverages more than any other age group. The brand also has access to various ways to reach this age group as they are widely exposed to various mediums. Health conscious segment: This segment is hard to measure and to find out considering that it is hard to measure intangible things. Nevertheless this health conscious segment is visible enough to be noticed by Power Root to be targeted aggressively. Behaviour When it comes to behaviour, here the analysis will have to focus on the behaviour of Power Root’s consumers towards the product.
Power Root’s consumers are very loyal to the brand especially from the Malay market segment. With a strong positioning, we can actually see that the support is strong from this segment alone. Even when similar products and brands got launched, Power Root remained strong due to the loyalty to the brand. Customers of this brand are enthusiastic about the brand, have high brand awareness, brand recall and brand recognition of Power Root. They support the marketing programs and also love the brand ambassadors which they think relate well with them. Trends In this competitive world, companies must always understand about customers’ trends in order to attract and best serve them. Since customer’s trend keep n changing their taste, the companies must always formulate strategies to satisfy them. Current trend shows that there is a significant shift in consumer’s mindset towards living a healthy lifestyle and taking care of one’s own body. Due to proliferation of healthy living lifestyle on various mediums such as TV, movies, magazines and others lifestyle trends, more and more people are looking for products that are good for their body. Also due to changing pace of life and hectic, busy lifestyle led by most people on earth today, energy boosting beverages has seen a spike in demand. Motivation Since Power Root has become more and more famous among consumers, so this can be a reason to motivate customer to buy their products.
The company had created their own brand image, once consumer want to purchase instant coffee or tea or even energy products, Power Root will become one of their choices. As mentioned before, Power Root are producing few types of instant drink products such as coffee, tea, energy drink and etc. By providing customers with lots of choice, this can be one of the reasons to motivate people to buy it. Beside that, the price of Power Root products can be another point that can motivate customers to purchase it. Most of the consumers are finding out that the prices of Power Root are reasonable compare to other brand. In addition, Power Root Company always is doing promotion in order to attract customer.
It is one of the ways to increase the motivation of consumers toward Power Root products. Consumers are always interesting with products promotion, so Power Root sometimes will organize some activity such as competition or products sampling in order to increase the interest of consumers toward their products. Perceptions According to the majority of consumers, when they think of Power Root, naturally energy drinks, stamina and health will come to their mind. Power Root’s current standing is good and hence consumers’ perception towards it is good as well. In most of the consumers’ mind, Power Root products always fulfill customers’ need which is to give energy.
Consumers perceive Power Root as a brand that has a variety of products that satisfies many different people. The taste is seen as different and unique to Power Root. Consumers also have a perception that the products has a reasonable price. Brand Inventory Elements Logo Brand Mantra: Quality, Innovation & Sharing Slogan: Infinite Energy Brand jingle/Catchphrase: Cut, Cut, Cut Ali Cafe URL: www. powerroot. com. my Packaging: Marketing Programs Power Root has a very sound marketing program in place which explains their success so far. The high sales and high business activity can be attributed to the brand cleverly taking care of its 4 major part that constitutes marketing. Product
Power Root invests a lot in R&D funding in order to come up with good and delicious products to satisfy the market needs and demands. All their products so far according to the analysis show that all of them have gone through rigorous vetting process before being launched into the market. Each and every product has its own distinctive packaging, clear name, colour and taste. For example, Pearl Cafe serves the women market while Ali Cafe serves the male market. There are also products to cater to market needs for low sugar products such as the non-sugar instant drinks. Place When it comes to place it basically relates more to the distribution network that is responsible to distribute and sell the product.
Power Root has a very strong distribution network in place with good connection and working relationship with the wholesaler and retailers. The brand is easily available in all major hypermarkets, supermarkets, mini markets, sundry shop and convenient shops Brand is easily available and has high brand visibility. The good working relationship shows especially when seeing that Power Root always get the strategic and most visible place on the shelves’. Price Power Root have a range of price that is neither very expensive nor very cheap, it is there in the middle affordable for all. The pricing for each product is different but each price reflects the value of the product. |RM (+/-) | |Ali Cafe |14. 50 | |Pearl Cafe |11. 20 | |Can Products |2. 50 | |Oligo Cereals |14. 50 | |Pearl Choco |16. 00 | Promotion
• They have promotions such as extra packs in the main packets with every purchase.
• They have free gifts when the customers buy two or more packets. Free gifts may include things like umbrella, mugs and so on.
• Power root sometimes gives out incentives to shopping malls so that hey keep their shelf full of power root products everytime and a merchandiser can keep track of it as well.
• Sometimes they give out discounts to customers in the form of free coupons such as the one being distributed in TESCO receipts. POP (Points of Parity) A point of Parity is when the attributes of a brand is similar to other brands in the market. Power Root shares these POPs:
• Same market (Malay majority)-What Power Root is currently targeting and heavily investing in is also pursued and served by other competitors. And these competitors not only come from those with instant coffee background or herbal energy giving beverage but also anyone with the interest of capturing the sales from the Malay market segment. Coffee drink- There are a lot of companies producing coffee products and instant coffee brands are one to many sometimes. Power Root product coffee, others also produce coffee.
• Instant beverage- The age of convenience has brought us this trend, instant beverages and Power Root’s instant formulas or way of packaging its products are similar to other instant beverage brands.
• Pricing- The pricing is almost similar to other competitors and there is no large variation among the brands showing that price is something common among them. POD (Points of Difference) Points of Difference is the part that where differentiation takes place and aids positioning process in consumer’s minds. There are 3 main PODs for Power Root: Health and herbal products- Power Root has exploited the health benefits of the herbs and making sure it becomes synonymous with the brand itself. Now whenever someone mentions Tongkat Ali or Eurycoma Longifolia they are quickly reminded of Power Root first before being followed by other products.
• Unique Pink, Black, Gold Packaging- Power Root’s packaging are distinctive and has their own place in consumer’s mind and heart. The packaging is easily recognizable and differentiated from its competitors. Besides that, there are different colours for each flavour or product.
• Delicious taste and aroma- Power Root has a distinctive taste and aroma to its products so much so that the moment someone smells it, they will be quickly reminded of the brand showing high brand awareness.
The aroma is also strong in nature and can easily fill a room with its sweet smell. Branding Strategies Brands today are no longer like the way it was once before where brands were merely a name assigned to a product. Today consumers respond positively to brands and the more powerful a brand is the greater opportunities that brand will have especially in terms of profit. Power Root is only 9 years old and barely a teenager but in Malaysia they have become one of the number one brands in beverages. And today they are venturing into exporting their products to other countries like Indonesia and to the Middle Eastern Region like Dubai. In getting to where they are today Power Root has made efforts in their branding strategies.
Some branding strategies they have applied are using spokespersons, sponsoring events, having road shows around Malaysia, organizing contests through publicity, billboards, advertising and having sub brands or extensions. Power Root has invested in using public figures and celebrities to be their spokespeople. Using a spokesperson is when an organization uses a person to represent the organization. Power Root have employed four very well known Malaysian celebrities in representing their brand who are Rosyam Nor one of Malaysia’s number one leading actors, Adam and Faraf from the very popular reality show “Akademi Fantasia” and one of Malaysia’s songbirds Nurul. They have been used in promoting Power Root’s products via commercials, road shows, and ads. Another brand strategy used by Power Root is by sponsoring events.
Some of the events sponsored by Power Root are the ‘Dance with Nnergy’ competition which is a dance competition during Jomheboh, one of Malaysia’s very popular carnivals handled around the country. Power Root has even sponsored drama series on TV 2 entitled “Dilemma Wanita”, and “Rafflesia”. Another event they have sponsored is Smart Kids 2006 (Aerospace Educational Planet). Every event they sponsor is a way for them to publicize their product to the public and create brand awareness. Linking a brand to events helps consumers to build their trust towards a brand and also it portrays a more likeable image for the consumers. Power Root has also organized road shows around Malaysia. Road shows are travelling exhibit as a way to promote a company’s product.
In this case, Power Root has gone around Malaysia from Penang to Johor to promote their products and also some of their contest like promoting one of their biggest contests the “You Can Be a Millionaire” contest. Through road shows Power Root can also build positive rapport with their loyal customers and plus achieve new customers. Power Root has also organized many contests in the past in order to stimulate sales and at the same time build brand loyalty. These contests include the search for gold and prizes under the tab of the can products and the most recently is the ‘Be a Millionaire’ contest. Publicity or public relation is used to promote or protect a company’s image or products.
Over the years Power Root have conducted various forms of publicity in promoting their brand. For example in the year 2006 Power Root organized a press and conference and simultaneously officially launched their new Power Root Ambassadors for that year. By organizing this sort of publicity they have created again brand awareness for the public. Another example of their efforts in publicity is through having official events to launch their contests so that consumers especially Power Root loyal customers are aware of their contest which they can participate and maybe have some opportunity in winning grand prizes. Other than that Power Root has also put up billboard along the PLUS highway.
They have organized a continuous of 20f x 60f Billboard Campaign along the PLUS highway. The PLUS highway is the main highway to get from North to South of Malaysia and many Malaysian citizens use this highway to get from one destination to another. By putting up billboards along the highway, Power Root has great exposure because many Malaysian citizens use the highway daily. Power Root has also used many forms of advertising to promote their brand. Like mentioned before using billboards and such, Power Root has also used other ways of advertising their product for instance through television commercials, radio commercials and print advertisements.
With their ambassadors, they use them in their commercials to promote their brand. Choosing the right form of advertisement is crucial so that Power Root can reach the right customers. Lastly, another form of brand strategy Power Root has adopted is through brand extensions and sub-branding. There are two forms of brand extension which are line extension and category extension. Power Root has adopted both the line extension and category extension. Line extensions use sub-brands to target a new market segment within the same category. For example under the Power Root brand name in the coffee line, they have come up with Ali Cafe targeting male consumers and Pearl Cafe to target female consumers.
As for category extension, it is a form of extension by using the parent brand in a different product category. Power Root has used the brands distinctive taste which is tongkat ali and kacip fatimah in another form than instant products like can drinks. Brand portfolio analysis Power root is known for the energy drink they produce which is Alicafe Tongkat ali and automatically the product is the core product for this brand. Power root is mainly associated with tongkat ali gingseng and therefore when it comes to Power root, consumer will think of energy drink or tongkat ali. Power root has come out with many sub brands which are instant cafe and tin product: Instant beverage
Alicafe Tongkat Ali instant: premix coffee drink with Tongkat Ali. A wonderful blend of coffee made from Robusta & Arabica fine coffee beans, combined with quality creamer from Europe for smoothness and heavenly aroma. Also contains water soluble Tongkat Ali and Gingseng extracts. Alitea tongkat ali instant: Premix tea drink with Tongkat Ali. Also known as “Power Root teh Tarik Tongkat Ali instant”. Quality red tea mixed with imported skimmed milk and creamer from Europe for a fresh and aromatic flavour. Per’l cafe instant: Mildest blend features a smooth and flavourous coffee specially made from the finest Arabca & Robusta coffee beans. It is catered mainly for today’s women.
Also includes premium quality creamer and chocolate from Europe and contains water soluble Kacip Fatimah extract. Per’l choco instant: premix chocolate drink with Kacip Fatimah and Collagen. Made from imported Cocoa, Kacip Fatimah, Collagen, Sugar and Non-Dairy Creamer. Oligo cafe instant: premix coffee with Oligofructose. It is a natural ingredient extract from the chicory root. Oligofructose has many beneficial effects on the human body studied by scientist. The chicory root, where its beneficial effects have been known for a long time, contains large amount of inulin. The chicory root is also one of the most researched food substances by scientists for its nutritional benefits. Oligo cereal instant: cereal drink mixed with B-Glucan and Oigofructose.
This product consists of fine blend of oats, cereal, B-Glucan, Oligofructose, sugar and non-dairy creamer. It is rich in amico acids, minerals, vitamins and dietary fibre and fulfills the modern era dietary principles to maintain health & diet. Oligo choco instant: formulated from cocoa, DHA/EPA (categoriesed as an Omega- fatty acid, one of the essential fatty acids), sugar and fat-free dairy ingredients, and rich in oleic acid, linoleic acid,stearic acid, palmitic acid, protein, various vitamins, minerals, fibre and flavonoids. Ali cafe no sugar added: a wonderful blend of coffee with no sugar added specially formulated for the health conscious public.
It is made from Arabica & Robusta fine coffee beans, combined with quality creamer from Europe for smoothness & heavenly aroma. It also contains water soluble Tongkat Ali Gingseng extracts. Per’l cafe no sugar added: the mildest blend features a smooth and flavourous coffee with no sugar added, specially made from the finest Arabica & Robusta coffee beans. It is mainly catered to health conscious female public. It is also includes premium quality creamer and chocolate from Europe and contains water soluble Kacip Fatimah extract. Can products Nnergy carbonated energy drink: a special carbonated energy drink formulated with Caffein, Taurine, and Vitamin B6 & B12 that helps the release of sustained energy.
Nnergy is slightly sour and coupled with the fizzy sensation, ensure of tickling taste. The energy derived from the drink helps to increase concentration especially for derivers on a long journey, students and busy professionals who require the additional boost in energy. Extra carbonated energy drink: A special carbonated energy drink formulated with Tongkat Ali, Caffeine, Taurine & Vitamis B6& B12 that will give you the energy boost reduce fatigue. The great refreshing tast and fizzy sensation makes the drink more refreshing with the additional energy derived. It helps to increase concentration especially for drivers on a long journey, students and busy professionals who require the additional boost in energy.
Extra honey tongkat ali: energy drink with Honey and Tongkat Ali extracts. Per’l kacip fatimah: Energy drink with Kacip Fatimah extract exclusively for women. Ali cafe tongkat ali: coffee drink with Tongkat Ali extract. Gingseng tongkat ali: energy drink with Tongkat Ali and Gingseng extracts. Honey dates tongkat ali: Honey dates Energy drink with Tongkat Ali extract. Per’l cafe cofee drink with kacip fatimah: Coffee drink with Kacip Fatimah extract. Competitor’s brand inventory Any brand has their own competitor’s if they are in the same market, as for Power root their competitors are other brands that produce energy drinks, gingseng and tongkat ali drinks. Jabar root
Jabar root is owned by The Al-Jabbar Group, a Bumiputera-owned company that offers herbal based medications. The company aimed to market their product particularly in Brunei, Indonesia and West Asia. Jabar root packaging for their tin product for tongkat ali and kacip fatimah are almost similar with Power root. The only difference is the name of the product which is Puteri Serapat and Jabar root. The company selected Zamarul Hisham and Diana Rafar as their celebrity endorsement. The retail price of a can Jabar Root and Puteri Serapat is RM 2. 50. Nescafe Nescafe is actually official product owned by Nestle and it is a brand of instant coffee.
Nescafe produce instant drink and can drink such as Nescafe classic, Nescafe original, Nescafe Gold Range, Nescafe Espresso, Nescafe Premium Range, Nescafe Decaff, Nescafe Cappuccino, Nescafe Frappe, Nescafe 3 in 1 Power root has become the competitor to Nescafe or vice versa. Long jack Long Jack Tongkat Ali is owned by Orang Kampung. Herbal Tea, Kacip Fatimah Capsule, TOngkat Ali Capsule, Resdong Pills, Longjack Capsule, Evergreen Tea, Penambat Pills, Gamat Oil, Liniment, Gamat Jelly, Slimmatee Capsule, Maajun Tongkat Ali, Extract Morinda and De5 are products that Orang Kampung produces. This company also produces can drinks such as Long Jack. CNI Tongkat Ali CNI Enterprise (M) Sdn. Bhd. introduces CNI Tongkat Ali gingseng coffee and CNI cafe in their sub brands. The Group’s principal activities are marketing healthcare and consumer products.
Other activities include manufacturing, trading and packaging consumer, health and personal care products, operation of food and beverage outlets and investment holding. The Group operates in Malaysia and Singapore. Super power Super launched a new range of ‘Super Power coffee variants with added Tongkat Ali, Gingseng and Misai Kuching in Malaysia on April 2007. Their pre-launch sales for ‘Super Power’ cofeemixes and energy drinks have exceeded expectations. The company will focus to expand their market in Southeast Asia countries such as Thailand, Myanmar, Malaysia and Vietnam. Kopi RADIX Kopi RADIX originates from Indonesia and has a large following among the traditionalists and in a more rural setting. Its product comprises mainly of Tongkat Ali herbs with not much variation. Kopi Jantan
Produced for the older generation and for those in a rural setting. This is also similar to Kopi RADIX in the sense that they focus more on the power or aphrodisiac part of the product. Strengths and Weaknesses Here in this part the analysis is largely centred on uncovering the brand’s strength and weaknesses. Strengths i. As mentioned, Power Root is getting more and more famous among Malaysian, this can be one of the strengths. It is a well known home grown Malaysian brand that specializing in coffee, cocoa and energy beverage products. The company has grown leaps and bounds since first established in 1999 and currently has 19 products under its wings.
Although there are various brands of instant drink products in the market, Power Root with its entrepreneuring spirit, is committed to provide consumers with the ultimate choice of a high quality product. Concentrated efforts in research and development to develop new and improved products have also accelerated its success in the market. The founders started off with an herbal energy drink, while coffee-based products were only introduced in 2003. Power Root, the company that owns Ali Cafe, set up its business in 1999 and was quick to realize that consumer preferences and lifestyles were evolving. As such; the company was able to quickly establish a stable business foundation and thus, creates a very promising future for the company. ii.
Besides that, Power Root and its range branded canned and premixed powder drinks has become one of the most successful and recognizable local brands within a short span of 7 years. Power Root’s brands include: Ali Cafe and Perl Cafe –canned coffee and premixed instant coffee powder infused with Tongkat Ali and Kacip Fatimah extracts respectively; Power Root – a range of flavored energy drinks with Tongkat Ali extract; Alitea – premixed instant tea powder with Tongkat Ali extract; Oligo Cafe – premixed instant coffee powder with Oligofructose; and Nnergy – a carbonated energy drink with added vitamins. Power Root’s commitment towards its brand promise is epitomized by its co-sponsorship of the 2006 World Cup live Malaysia telecast and on the local front, the hugely popular Jom Heboh!
Since the brand is easily recognizable and most people would have no trouble recalling it from their mind either so it has a strong presence in consumers’ mind and is well positioned. The products generate positive reviews and the company invests heavily in marketing and branding iii. The key of Power Roots brand is the quality level which begins at the material procurement stage, ensuring best technology, while offering fortified nutritional and health benefits that meets the needs of the modern lifestyle consumers. Currently, the company has created three successful brands in the UAE and Middle Eastern markets which have their unique taste and appeal to tea and coffee loving populace here.
No doubt therefore Power Roots is the first Malaysian beverage Company that made it big in the UAE and Middle Eastern Market. In 2006 Power Root acquired, the prestigious GMP, and HACCP certification, giving consumers a better peace of mind. In the UAE, Power Root has aggressively promoted its brand in order to carve out a market share. A huge promotion outlay has also been provided at the ongoing Global Village, at Seef Road and the Night Souk where Power Root stalls are attracting good crowds. Weaknesses i. As we can see there are a lot of strengths for Power Root Company, but there are also some weaknesses that can be found in the company. As mentioned, Power Root, a truly Malaysian success story main target consumer is Malay majority market in this country.
With the limitation of the Malay target market, it may cause Power Root lack of visibility among non-Malay market. As we know Malaysia is a country which comprised of Chinese, Malay and India citizens, if the company only limit the scope by only concentrates in Malay market however it will neglect the non-Malay consumers and lose a very good chances to increase their profits. ii. Although Power Root is a well-known company in Malaysia, the brand information is not that easy to find. It is very easy to find the brand’s products but it seems hard when consumers wish to search the information about the brand. Therefore, lack of information regarding brand is another weaknesses of Power Root. Brand Associations
Brand Positioning Analysis Positioning refers to the place a brand has in the consumer’s mind. The consumer should be able to recall what the brand is associated with in a flash. The moment they see they should be able to think what Power Root stands for. Power Root’s main positioning strategy seems to focus a lot on the energy drink mantra. They have marketed and branded it so intensively by focusing on the energy giving aspect of their products. So much so that most consumers when asked today will immediately think of energy provider, health drink, stamina provider and some even regard it as a mild aphrodisiac. Summary of Competitor Analysis.
In a nutshell, Power Root’s competitors have 1 thing in common, they all focus on the same thing that Power Root target but their approach seems to take a bit of sexual undertone. The competitor’s products are branded as an aphrodisiac for sexual prowess with the focus being centred on Tongkat Ali herb. Tongkat Ali is widely used and is used more than Kacip Fatimah in fact. Power Root’s competitors either become a follower by following the same business methodology and branding strategy or they start of on their own by launching it using their own strategy. The more upscale brands such as Super Power tend to have a more urban approach while the less known brands like Kopi RADIX have a more traditionalistic approach.
SWOT analysis Listing of a company’s strengths and weaknesses are a normal part of any attempt at strategic planning for virtually all companies. To be sure the company is headed in the right direction, a competent, thoughtful review and updating of the company’s strengths and weaknesses is a fundamental element of a good strategic planning. Strengths
• Household name- Power Root is a true Malaysian success story, it has presence in several country and no other companies has such a hold especially in the Malay majority market in this country.
• International presence- Presence in international markets such as Indonesia, Singapore, Korea and UAE. Product success- Power Root’s products are currently making waves in the market such as Alicafe, Per’l Cafe, Alitea and so on.
• Convenience- Each of these products is ready to drink convenient brand, one just has to add hot water and drink it.
• Strong distribution network- Power Root has access to most outlets and thus effectively found the end-users due to a well-developed distribution network nationwide. They have a networking of key dealers, wholesalers, supermarkets, retailers and overseas distributors. Today, we can find the products almost everywhere in 7-Eleven stores, petrol stations, Giant, Tesco, Carrefour, Jusco, just to name a few. Weaknesses Lack of Information- Power Root has limited information on their product and have a weak online presence as well.
• Packaging sizes- No various choices in packaging of instant cafe. They should produce various size of packaging. For example, providing a smaller package for instant cafe.
• Over focus on beverage- Power Root focus more on beverage products only. They should expand and explore to another market such as capsule or food but they need to still maintain the product reputation.
• Lack of presence in non-Malay market- The overfocus on 1 segment means that Power Root may be losing out on opportunities from other market segments as well.
• No slogan for the brand- Power Root is yet to have a distinctive brand slogan. Opportunities Arrival of new technologies- With the upcoming technologies in the world today businesses can be done online. Power Root can promote their brand via internet as internet advertisement is becoming a more and more popular form of advertisement as it’s cheap yet accessible. Other technologies that can be used is online banners, television, satellite and such
• Free Trade Agreements (FTA) approvals- In the current issue today Malaysia is moving into efforts of getting the FTA approval. Achieving this approval Power Root can export products to countries like the U. S. Power Root has already made efforts in exporting to countries like Indonesia and Dubai.
Having greater opportunities to export in other parts of the world is a plus for the brand and also the country.
• Unfulfilled customer needs- Power Root has ventured into a market that targets the use of Malaysian herbs into beverages. Not many quality brands out there provide this category of product. Therefore Power Root has the opportunity to intensively market their product to Malaysian consumers and also other neighbouring ASEAN countries who also share the same value of herbs as healthy drinks like Thailand, India and China. Threat
• Competitors- As mentioned and analyzed above, Power Root faces a lot of competitors in various forms and sizes. Oversaturation of market- The entry of many new players intend on capitalizing on the Tongkat Ali craze means that the market may become too overcrowded and in the process may hurt Power Root strategies. Brand Equity Evaluation “The differential effect that brand knowledge has on consumer response to the marketing of that brand. ” Keller, 1993 That is the general definition of a what a brand equity is. Brand equity serves as a platform where companies with brands learn from the past and guide their future plans accordingly. The consumer’s brand knowledge is the most important thing when it comes to building brand equity. Power Root consumers have sufficient knowledge when it comes to the brand itself. They are able to form brand associations fast.
When consumers are able to define what are the characteristics associated with Power Root such as the events they are involved in, their brand elements, and their sponsorships and so on it shows that the consumers are able to form fast connection in their mind about Power Root. It also proves that many consumers have been exposed to the brand many times before. Brand knowledge consists of 2 core, brand awareness and brand image. Power Root has a very strong brand awareness among the consumers especially their target market the Malay market. Even those not targeted are sometimes aware of the brand proving the awareness level for the brand. Second is brand image.
Power Root has a very strong image in terms of its brand elements such as logo, packaging, colour and so on. Consumers are able to pinpoint which is Power Root fast as they have the correct description in their minds. However brand image needs to be something that is strong and favourable and it does seem like Power Root matches all the criteria of a brand with high brand knowledge among consumers. To evaluate customer based brand equity of Power Root, there are several dimensions to be looked into. Salience Depth of brand awareness- Customers are able to easily recall information and image about Power root Breadth of brand awareness- When it comes to purchasing and consuming Power Root, consumers don’t seem to mind or think twice before buying.
They know what they are buying and don’t spend too much time analyzing before buying. Performance- Power Root has performed up to consumer’s expectation so far. What consumers want when they buy the drink is what they get or perhaps even better. It is a value buy for them relative to the price. Imagery- Power Root has portrayed the right image in terms of consumer profile, who they are, where the product should be located, association with strong personalities that best showcase the brand itself and so on. Judgement- In terms of brand quality, Power Root is the front runner. No one invests in R like Power Root in the industry and that explains the high quality since they emphasize a lot on quality.
The brand is seen as credible and superior compared to other competitors. Feelings- Consumers love this product and they love how it is being branded. Resonance- This can be seen in how attached some customers become to the brand. They call it their comfort drink and form an attachment to it. They are many consumers who have made this drink as their daily staple proving their loyalty. And judging from the many support Power Root gets to its events and contests, it shows just how the brand has formed an alliance with consumers and resonate well with them. Strategic Brand Management Recommendations There are always room for improvement even if the brand is already very successful.
Power Root despite its successes, still has room for improvement. There are 4 recommendations by how Power Root can be further improved.
• Target & Introduce to Non-Malay markets Non-Malay market presents an opportunity for Power Root as their purchasing power is yet to be tapped into. Many are not aware of the product yet and most competitor are very focused on Malay market just like Power Root. Perhaps by diversifying their target, they can enhance their presence in the local market and tighten their stronghold as well.
• Increase & Expand international presence Power Root currently has only expanded to 4 countries, namely Korea, Indonesia, Singapore and UAE.
There are many countries where coffee drinking is a craze such as France and US and presents untapped opportunities.
• Create a slogan Power Root currently has a void to be filled and that is clear, catchy slogan. Being an important brand element, slogan can help improve brand awareness and brand recognition.
• Enhance online presence The website needs to be more interactive and should be enhanced with more information. Currently it lacks in terms of interactivity and access to interesting informations. Reference 1. www. thestar. com. my 2. www. nst. com. my 3. www. powerroot. com. my 4. www. google. com 5. Strategic Brand Management- Building, Measuring and Managing Brand Equity, Kevin Lane Keller. ———————– [pic]