MKW1120 Assessment 3

1 COMPANY BACKGROUND
Fraser and Neave Holdings Bhd (F&N) is one of Malaysias oldest companies and its brand
enjoys the rare distinction of being a market leader and household name in many categories.
The company currently leads the market for soft drinks in Malaysia with a whopping 36.5%
off-trade value for 2014 as reported by Euromonitor International (Euromonitor, 2015). An
epic feat considering the fact that F&N only manufactures and distributes its carbonated
products within Malaysia without exporting to other countries.
Their success can be attributed to the large sales of their 100 plus line of carbonated energy
drink and the F&N Fun Flavour assorted carbonated drinks, both of which holds the top
position in terms of off-trade value percentage between the year 2011-2014 as reported by
Euromonitor International. The company also offers other non-carbonated drinks in their
Seasons and Fruit Tree line of soft-drinks.
F&N manufactures and distributes its products across all states in Malaysia and is located in
Shah Alam. More information can be found about the company and the products they offer
from http://www.fn.com.my/.

2 TARGET MARKET
The largest selling soft drink product for F&N has been their 100Plus line of drinks, as such
we will be looking directly at the target market that F&N has been advertising to for their
isotonic energy drink. The 100Plus sports drink was launched in Malaysia in 1983 as the first
sports drink in Malaysia (The Nation, 2015). At the time it was marketed as a soft drink for
athletes as it still does with professional badminton player Lee Chong Wei leading the helm
for most of the ads that the company use, and even international football legend Pel as of
late (Writer, 2015).
However, in 2013 F&N launched a rebranding
campaign to shift the scope of the drinks
market to reach out to consumers outside the
sports arena. In their efforts F&N rolled out ads
and commercial targeting the mass market with
an active lifestyle under the tagline Outdo
Yourself (YouTube, 2015). The ad clearly
shows the market segment that F&N is trying
to appeal to and further analysis of that market
Figure 1: 100PLUS "Outdo Yourself" ad Poster
segment can be seen on Table 1.
In evaluating the market segment we will first look at the segments size and growth. The
target market for the brand has always been young adults within the 18-29 age bracket that
mostly consists of workers in cities and towns, plus an increasing proportion in higher
education. Estimated by Euromonitor International to be numbered around 6.98 million, this
age bracket is the most populous in Malaysia (Euromonitor.com, 2014). The segments

structural attractiveness does not pose a problem as the brand has a well-established within
the country prior to any competitor within the energy drink field and control a ridiculously
large share of the sales. Finally the target market is well within the capability of the
companys resources and objective to handle given its large presence within the country.
Table 1: Target market segmentation

Variable

Segmentation
variables

Athletic
Individuals

Office Worker

Casuals

Geographical

Country

Malaysia and
Singapore

Malaysia and
Singapore

Malaysia and
Singapore

Demographics

Age

15-30

25-35

18-25

Income

RM0RM50,000

RM30,000RM80,000

RM10,000RM80,000

Behavioural

Occasions

Regular
occasion

Regular
occasion

Special
occasion,
holiday;
seasonal

Psychographic

Lifestyle

Active

Achievers

Strivers

3 VALUES DEMANDED BY TARGET MARKET

Readily available
Safe to consume
Healthy
Provide energy for day to day work

Has a good flavour/taste

Safe and attractive packaging
Recyclable packaging

 Affordable price

4 POSITIONING

Figure 2: Perceptual Map for Soft Drink in Malaysia

The perceptual map in Figure 2 shows the market positioning for some of F&Ns products as
well as the competitors. The attributes chosen for the horizontal axis is based on the how the
products are marketed and perceived by the consumer, be it fun and exciting or sporty and
adventurous. The vertical axis indicates the public perception of the healthiness of the soft

drinks primarily based on their sugar content. The size of the bubble indicates the percentage
of off-trade sales volume for the year 2014 as reported by Euromonitor International.
The maps shows that 100PLUS and F&N is unique in that they fill a gap that none of their
competitor can get close to in both end of the spectrum. 100PLUS is considered a sporty and
healthy drink due to its long standing presence in the country, it has been used for years as a
way to combat common ailment such as headaches, flus and severe dehydration (Jamie,
2008). The only other competitor that comes close to 100PLUSs position in the spectrum is
the 7-UP Revive that is marketed similar to the 100PLUS but lacks the branding foothold and
competitive edge.
On the other end of that spectrum we have F&N Fun Flavours with its colourful assortment
of drinks that are targeted to a more vibrant youth market that no other competitor does. The
inclusion of a wide variety of flavours that the competitors lack appeals to a wider audience
of different taste (Fnbm.com.my, 2015). Which also proves to be popular during the holiday
season given their aggressive pricing

5 DIFFERENTIATION
5.1 PRODUCT FEATURE
One of the ways 100PLUS differentiates itself from other competitor is to drive home the
point that its a thirst quencher and with that takes advantage of the hot tropical climate to
promote their product in their new Heat Buster campaign (100PLUS, 2014). To that end,
F&N is promoting the superior difference between its products to that of the competitor.
Promoting the fact that not only do their product alleviates thirst like no other but that it is
also the go to option for non-caffeinated energy drink.
The introduction of the 100PLUS Edge on the other hand brings
with it the unique feature of being a non-carbonated isotonic
drink (Fnbm.com.my, 2015). The product itself is marketed as
such with the added benefit of having vitamin B which F&N
claims aid in energy production. This makes it distinctive from
the competitor as none of them has similar offerings and also
superior in that it offers a better alternative to carbonated or
caffeinated energy drinks.
Figure 3: Promotional poster

Another advantage that 100PLUS gains over its competitors is

for 100PLUS Edge
via its endorsement by the National Sports Council of Malaysia,
and being the only sports drink in Malaysia to have such recognition might prove to make it
an important difference to target buyers (Fnbm.com.my, 2015).

5.2 IMAGE DIFFERENTIATION

F&N brands the 100PLUS with its distinct logo reminiscent of the Olympic rings in order to
better associate the drink with sports. The connotation is apparent at first glance to consumer
even without prior exposure to the brand. Most other isotonic drinks doesnt distinguish
itself as a sports drink with the logo as with 100PLUS and relies solely on the terms used
such as isotonic drink or the colour of the drink to associate itself with the medium.

Getting well recognized local brand ambassadors such as Lee Chong Wei proved beneficial to
the brand as it further distinguishes itself as a drink for top athletes and sports enthusiast
(Sportspromedia.com, 2009). The recent signing of international football star Pele and Oscar
Jr. further cements the brands message in the local and international market
(Marketingmagazine.com.my, 2015).

6 MARKETING MIX
6.1 PRODUCT
a) Core Benefit
An energy drink that supplements everyday work
An energy drink that promotes healthy lifestyle
b) Actual Product
A brand logo that reflects the active lifestyle that the
brand promotes
A stylish packaging that sets it apart from its
competitor and draws attention
A brand name that garners much loyalty due to being a
long-established brand in the country

6.2 PRICE

Figure 4: Packaging
comparison between
100PLUS and competitor

The price for drink remains mostly low as with any other carbonated soft drinks and like any
other brand of soft drink offers seasonal discount prior to a major holiday to take advantage
of the influx in sales.

Figure 5: Seasonal discount for major holidays

6.3 PLACES
F&N makes its product available via numerous sources and channels such as grocery stores,
hypermarkets, newsstands, vending machines etc. However, in its recent efforts to bolster
sales F&N and AirAsia has partnered up to offer their 100PLUS drink inflight (Club, 2010).

6.4 PROMOTION
F&N promotes its products through various competitions and
events with the most recent one being the Race Against The
Machine marathon in January where participant were runners
were fitted with a unique barcode and had to run for 6km
while avoiding being captured by remote controlled drones.
The event coincides with the brands image and message of
active and sporty orientated lifestyle while also showcasing its
uniqueness.

WORD COUNT: 1450

7 REFERENCES
Euromonitor. (2015). Carbonates in Malaysia: Euromonitor International.
Euromonitor.com. (2014). Consumer Lifestyles in Malaysia. Retrieved 6 October 2015, from
http://www.euromonitor.com/consumer-lifestyles-in-malaysia/report
The Nation,. (2015). F&N rebranding isotonic drink 100Plus to expand market share in
Malaysia - The Nation. Retrieved 4 October 2015, from
http://www.nationmultimedia.com/aec/F&N-rebranding-isotonic-drink-100Plus-to-expandma-30222899.html
Writer, S. (2015). 100PLUS launches campaign starring football legend Pel. Marketing
Interactive. Retrieved 4 October 2015, from http://www.marketing-interactive.com/100pluslaunches-campaign-starring-football-legend-pele/
YouTube,. (2015). 100PLUS How do you Outdo The Everyday?. Retrieved 4 October 2015,
from https://www.youtube.com/watch?v=60neM0MatAY
Jamie,. (2008). Illogical Ramblings of a logical mind: 100 plus can cure headaches!.
Callmejamie.blogspot.my. Retrieved 4 October 2015, from
http://callmejamie.blogspot.my/2008/04/100-plus-can-cure-headaches.html
Fnbm.com.my,. (2015). F&N Fun Flavours - F&N Beverages Marketing. Retrieved 4
October 2015, from http://www.fnbm.com.my/content.php?pagename=Our+Brand&id=25
Fnbm.com.my,. (2015). NSC, 100PLUS Renew Sponsorship for Three More Years - F&N
Beverages Marketing. Retrieved 5 October 2015, from
http://www.fnbm.com.my/news_details.php?nid=75
100PLUS,. (2014). 100PLUS - Heat Buster. Retrieved 4 October 2015, from
http://100plus.com.my/heat-buster/
Sportspromedia.com,. (2009). Lee Chong Wei lands 100Plus endorsement - Sports Personal
Endorsement news - Miscellaneous - SportsPro Media. Retrieved 5 October 2015, from
http://www.sportspromedia.com/news/lee_chong_wei_lands_100plus_endorsement4
Marketingmagazine.com.my,. (2015). Football Greats Pele and Oscar Are 100Plus New
Ambassadors!. Retrieved 5 October 2015, from
http://www.marketingmagazine.com.my/index.php/categories/breaking-news/10883-footballgreats-pele-and-oscar-are-100plus-new-ambassadors
Club, A. (2010). AirAsia Latest News: 100PLUS and Coca-Cola to be sold on AirAsia flights.
Airasiafansclub.blogspot.my. Retrieved 6 October 2015, from
http://airasiafansclub.blogspot.my/2010/01/100plus-and-coca-cola-to-be-sold-on.html