Marketing Analysis 1
MARKETING ANALYSIS OF MAMEE DOUBLE DECKER (M) BERHAD
by Hiew Kar Yee
Mkt 501 Marketing Management
Prof Dr Eddie Phun
HELP University
Assignment 1
June 8th, 2019
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Marketing Analysis 2
ASSIGNMENT 1 – MARKETING ANALYSIS
The purpose of this assignment is to prepare a Marketing Plan by analyzing and
studying the marketing case of a chosen company in Malaysia – Mamee Double Decker (M)
Berhad (MDD). This assignment will mainly focus on one main product among various
product lines, which is the Mamee Monster noodles snack. It has consisted of a few parts
which include the product and service, the market analysis, marketing strategy and
implementation. SWOT Analysis (Strength, Weakness, Opportunity and Threat) will be
covered in the marketing plan to evaluate the internal and external challenges encountering
by the enterprise.
A1. Introduction to the Company, the Product and Brand
Malaysia has the perspective and potential to lead the processed food and beverage
(F&B) industry to the Asia-Pacific region. As the government has emphasized on the national
agriculture sector, the F&B market does play an essential role in the agro-based industry,
especially in the fast food outlets manufacturing. Consumers concern mainly in preparing
meals, snacks, and beverages for immediate consumption and nutritious. In Malaysia, one of
the famous food manufacturers that fulfilled the market needs in this field is the Mamee
Double Decker (M) Berhad (MDD).
Mamee’s story began in 1971 when founder, Datuk Pang Chin Hin and his companion
began a small-scaled built-up plant in Malacca that mass-produced instant noodles. It is a
Malaysia food processing, snack and dairy product company. Mamee was initiated from
modest establishments made its way to success after 48 years of persistence, enthusiasm, and
honest hard work. Today, it serves over 50 products, including instant noodles, snacks, chilled
beverages, confectionery, etc. Mamee Monster, Double Decker, Smax cracker snacks, Mister
Potato Chips and Mister Potato Baked Crackers are marketed under MDD snacks’ category.
They sell instant noodles under Mamee Chef brand, Mamee Instant and Sllrrp! Noodles.
They also offer Cheers Beverage, Nicolet Swiss Herb Candy and the most recent additions,
Nutrigen Cultured Milk and Lite-Yo Yogurt Drinks.
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Marketing Analysis 3
After multiple trials and researches, the founders finally launched the first ever
product – Lucky Instant Noodles and Vermicelli. Later on, Tan Sri Pang Tee Chew observed
rubber tappers were consuming raw instant noodles right away from the pack due to lack of
kitchen facilities at a rubber plantation. The Pang Father-Son duo was driven their noodle
making in a innovative way and launched the tremendous crunchy noodle snack: The Mamee
Monster. They named it Mamee, which homophones “Mummy” to represent the person with
whom a child has the most robust emotional connection. As time goes on, Mamee has made
itself a basic in homes all across Malaysia and abroad.
The company has a mission to spread happiness and excitement through food
experiences to the consumers, and their vision is to be worldwide recognized provider in
nutritious food products with a slogan “World of Great Taste”. By implementing those
statements, MDD is practising their core values of involvement, innovation, collaboration,
integrity and fun. The company extended its products worldwide and selling internationally
in more than 100 countries, such as Malaysia, Singapore, Indonesia, Australia, Saudi Arabia,
Myanmar and France. Although it conducts operations through three manufacturing facilities
in Malaysia, Indonesia and Myanmar, the company has a qualification of ISO 9000s, Hazard
analysis and critical control points (HACCP) and Halal Certifications over all the facilities in
the factory. In term of awards, MDD won 2008 Anugerah Kecemerlangan Industri Award,
also known as Industrial Excellence Award from the Ministry of International Trade and
Industry (MITI). In the year 2013 and 2014, MDD has been presented the Frost & Sullivan
Award for Best Home-Grown Packaged Food Company, following with a Putra Brand Award
under the Foodstuff Category in the year 2014.
Mamee’s strong financial performance has delivered stellar earnings in the past three
fiscal years. Its net profit more than tripled to RM42.8 million or 29 sen per share for the year
ended Dec 31, 2010 (FY10) from RM14 million or 12 sen per share in FY07 (The Edge
Markets, 2011). For FY10, it posted a revenue of RM482.54 million. As of Dec 31, the
company had cash reserves of about RM53 million against borrowings of RM3.7 million,
which translates into net cash per share of 32.5 sen. Excluding the money, Mamee’s business
is valued at approximately RM3.30 per share or RM500 million (The Edge Markets, 2011).
The Mamee Monster noodle snack is locally produced with Halal certified. It is an
energy-boosting healthy snack that provides three types of seasoning flavours: Chicken, BBQ
and Spicy. It has a memorable blue monster as the brand’s mascot to remind people of their
favoured childhood snack. Recently, it has just launched a new taste named “Xtra Krunchy”
to fulfil the consumer’s satiation. In collocation of the target audience of young children,
together with the idea of pushing the brand beyond boundary with an innovative spirit, Pierre
Pang Hee Ta, the company general manager for sales and marketing and also the grandson of
the founder has created the mascot to be part of the brand identity. With the blue Mamee
Monster retentions firmly as the brand mascot through several packaging reforms for the
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Marketing Analysis 4
noodle snack, it is currently commanding an 80% slice of the market (KINIBIZ, 2014). The
pricing for the Mamee Monster noodle snack is very judicious and inexpensive for the
concern of all. It costs about 30cents in Malaysia for a pack of Mamee Monster snack.
A2. Marketing Analysis
STRENGTH
One of the strength for Mamee is the strong brand reputation among consumer. The
company has a well-organized distribution system where end users can easily access to
Mamee products from a little food retail shop to big ace hypermarket. Mamee had never
failed to meet consumers’ expectation when it comes to product supply as it has 150 vans
conduct deliveries jobs from 13 distribution centres to more than 1000 points of sales (Swot
Mamee, 2011).
Mamee has substantial equity in the low-price snack product category, retains its
image and reliability through the consistency of product quality and taste. The brand is so
famous among Malaysian because the majority have had the noodle snack since they were a
kid. Therefore, the brand itself, also the blue Mamee Monster mascot, representing more than
just the product – it’s symbolic of nostalgia, childhood memories, family bonding time and
party snack.
Following with the other strength Mamee poses is they can develop their corporate
network by penetrating new exports field. In 2002, Mamee faced a progress of 6.2% in
venturing to new exports market, and this could be a good start. Within ten years, it had
increased from RM 242 million to RM 257 million with a revenue before tax documented
double-digit growth of 57.3% from RM 9.6 million ([Link], 2011). They emphasize
on improving quality, business network and applicable market tactic which empower them to
remain competing in the market. Also, no doubt that they have a reliable marketing team to
conduct the great promotion. MDD has generously invested around RM 15.1million into
advertising and promotions annually to drive consumer ([Link], 2011). As a long term
strategy, this company always aim to occupy the larger slice of the market share.
The next strength of Mamee will be the big trade title as it had accomplished
numerous awards locally and globally. In the year 2016, Founder of Mamee, Datuk Pang
Chin Hin, has won the Putra Brand Personality Award. In the year 2013 and 2014, Mamee
has honoured the Frost & Sullivan Malaysia Excellence Awards as the best home-grown
packaged food company of the year. [Link]
Mamee had also been rewarded globally acknowledged as ISO 9002 standard together with
China Awards Certificates. Also, it is halal, and HACCP certified.
WEAKNESSES
One of the weakest point for MDD at the moment is the company has not yet won in
deriving a market portion in China. From the statistic shown at Mamee Double-Decker Food
(Suzhou) Co. Ltd, it has a low market demand from China, thus making little sales and
revenue and causes the company had experienced a higher forfeiture. Even though the
company is fronting difficulty with space limitations in the existing factories to set up the
essential manufacture lines, they do not plan for expansion yet until it breaks even in coming
years. Not to mention the pressure from competitors from the same range such as Wangwang,
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Marketing Analysis 5
Khongyuen and Oishi that already have their loyal customers in China. However, MDD never
lost their hope in extending their products to the China market. They even hired an advisor to
resolve this issue.
Another weakness from MDD is the high dependency of raw material origin from
Europe. The cost price fluctuated according to the rise of the Euro against USD the MDD is
earning. It gives force per unit area to its net income margin when the monetary value of
natural stuff increasing. Therefore, Mamee required to develop more in R&D to lower down
its reliance from an external supplier.
OPPORTUNITIES (PESTLE)
Politics & Economy
Uncertainty over government policy could be weighing down on local food
manufacturers like Mamee. A businessman has difficulty in having confident towards
government policies due to the uncertainty that may affect their investments. For an instant,
the government had changed its decision on levy fees for foreign workers who have worked
in the country for longer than ten years, which might directly affect the margin price of
Mamee production line. According to the FMM-MIER survey, data expected a declination for
sales, production, capacity utilization and employment in the first half of 2019. During
September 2018, the government has introduced sales and service tax (SST), has indirectly
increased the cost of doing business among Mamee by up to 10% (Lee, 2019). The rising of
uncertainty could be an opportunity for Mamee to look for fresh, innovative solutions to help
control their costs and still grow. For example, Mamee could look for any other rising brands
to help add new product lines versus investing in their R&D to help save time and cost, as
well as reach new customers.
Social
A significant trend nowadays is the rises of health-conscious by overall consumers as
it provides opportunities to Mamee in inventing a new product that is healthier with more
options. To expand its product feature and value, Mamee plans to conclude its product to be
part of the healthy diet snack. It has identified several suppliers to negotiate in providing
health suppliers of food. Due to consumers' busy lifestyle, they are increasingly opting for
convenience yet nutritious and health benefits foods. Generation-Z consumers even
categorized themselves as “clean eaters” and have a keen attentiveness in whom and how the
product has been made (Musa, 2015). By understanding the culture, Mamee started to
produce corn snacks in addition to noodle snacks. Also, they know that transparency into how
food is prepared and where will be the key. They also plan to present more variety of snack
foods in Myanmar due to the high demand for snacks in the country.
Also, Mamee adopts a lot of Corporate Social Responsibility (CSR) program
throughout the years because they believe in giving back to society. Mamee’s CSR good
reputation can be proven when they distributed 6,000 “Mamee Classic” and “Mamee
Monster” packs of noodles and snacks with secondary students of IDEAS Academy, an
Education Centre for refugee students in 2018. Since 2011, Mamee has established “Mamee
Prihatin” (Mamee Cares) banner that was representing their position in CSR campaign to
conduct charitable deeds. They cover not only refugee students but also orphanages, old
folks’ homes, natural disaster victims, etc ([Link], 2018). By doing more and
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Marketing Analysis 6
more CSR programs, Mamee can potentially benefit from better brand recognition, positive
business reputation, sales increases and accumulate more loyalty customers.
Technology
In the year 2018, Mamee adopted Japanese robotics technology worth RM 2 million
for its noodles production. This technology that supported by the Malaysian Investment
Development Authority can meet the industry’s requirement in term of safeguard products
quality, cleanliness and food safety. It empowers the business to stay competitive in a
challenging marketplace. With the advanced technology, it enhances the manufacture of
noodle snack and reducing dependence on the workforce. According to the Chief Executive
Officer Datuk Gary Choo, the technology would boost productivity as much as 10%
increases, with leaner manpower required too ([Link], 2018).
Every year, Mamee will spend 90% of its RM 100 million capital expenditure
(CAPEX) on upgrading its facilities and machinery in one of its Malacca plants. By doing so,
the company could keep abreast with the newest technology in the industry for further
growth. For example, they have just launched the new thinner and crunchier noodles that give
the iconic snack an irresistible extra crunch. Besides, instead of just spending on traditional
mediums like radio, TV and print for promotional tools, they also open to embracing
alternative media like online advertising and social media, which comes with high efficiency
and lower costs. [Link]
upgrade-facilities/
Legal
JAKIM gets more than 100 applicants yearly for its halal certification from global
firms, especially those from China, Japan, South Korea and Taiwan (KLSE Screener, 2018).
Numerous Chinese and Japanese exporters have struggled to export their foodstuffs to Arab
countries using halal certificates released by China, but the exports have rejected the
admission. However, it is a plus point for Mamee to hold a halal certificate issued by
Malaysia government because it is recognized and accepted by other nations as well,
especially Arab countries. Therefore, Mamee has the ascendancy to export the noodle snack
for more significant coverage.
For example, in the year 2017, Mamee has teamed up with South Korea’s Shinsegae
Food to generate halal food merchandises for Islamic countries. Through sharing their
proficiency in the industrial and amenities of F&B, Shinsegae Mamee Sdn Bhd provides the
best platform for both parties to reinforce and expand in the Asia-Pacific region as a joint-
venture company. The president of Shinsegae Food, Mr Choi Sung-Jei, targeted to be a one-
stop halal F&B supplier of tremendous and dependable quality products with authentic
flavour and services served specifically to all food vendors. It is a stepping stone for Mamee
in discovering and presuming into South Korean halal food services and industrial.
Environmental
The Mamee team in Kuala Lumpur will be moving into luxury co-working space at
Colony @ Mutiara Damansara in Petaling Jaya, Selangor. The area is about 19,000 sq ft,
which is located five-minute walk to The Curve shopping mall, with Grade A facilities, Green
Building Index Gold Certified and MSC Status building (Khoo, 2019). The Deputy General
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Marketing Analysis 7
Manager Pierre Pang desires to send the signal to everyone that they are committed about
having a great working environment for their team as Colony is one of the beautiful luxury
workplaces that would boost workers’ productivity to 110% (Khoo, 2019).
THREATS & CHALLENGES
Consumers tend to concern on the ingredients and qualities of products before
purchasing because people nowadays are more educated and conscious about health. Not
only that, but they will also make price comparison with similar product from other brands.
Therefore, the risk of MDD is the competitors in the market like, for example, Munchys,
Nestle, Unilever foods. Changing of consumer preferences is one of the challenges Mamee
encountered too. Consumers nowadays want fortified and practical foods that promote gut
health, fuel their brains and benefits their physical appearance. With today’s timely access to
info, a consumer will never leave it behind if they couldn’t understand or figure out the origin
or content of a particular ingredient in the product.
Moreover, competitors in China is a more significant external threat, especially in
Shanghai due to the complexness of the market in China that manufacturing various of snack-
food products that targeted the same market.
SUMMARY
Product innovation and differentiation play an essential role for Mamee’s future path
because there are so many different products accessible for purchase in a mass of channels –
from a retail store, grocery shop, supermarkets, hypermarkets, online, social media, etc. A big
company like Mamee should have a well-thought plan to emerge with technologies, mergers
or acquisitions, so that can adopt changes to meet consumer’s needs. The elements of
personalized and focus on details, from raw materials of the product to colour usage of the
packaging, could lead Mamee to the next level too.
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Marketing Analysis 8
REFERENCES
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Khoo, N. (2019). Malaysia’s largest snack company moves KL office to Colony@Mutiara
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colonymutiara-damansara [Accessed 6 Jun. 2019].
KINIBIZ. (2014). The start of the noodle company. [online] Available at:
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6 Jun. 2019].
KLSE Screener. (2018). Mamee to share halal expertise at Winter Olympics in South Korea.
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[Link]
inter_Olympics_in_South_Korea [Accessed 6 Jun. 2019].
Musa, Z. (2015). Mamee plans new product line - Business News | The Star Online. [online]
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privatisation-target [Accessed 6 Jun. 2019].
[Link]. (2018). Mamee to adopt robotics technology worth RM2mil - Business
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[Link]. (2018). Mamee’s CSR contribution. [online] Available at:
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Jun. 2019].
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