Changes in Socio-Cultural Trends and How It Affects the Marketing Mix of 2 Companies (Astro & Maggi) in Malaysia

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Assignment Question A Examine the scope and activities of your own country of residence, or one that you are very familiar with. 1. Identify and examine the key social-cultural trends, including demographic and lifestyle developments that have taken place within your chosen country over the past decade. 2. From your answer to (1) above, choose one example of ‘change’ for (a) a manufacturer and (b) a service organization and examine: i. ii. How this change has affected demand for the existing product / service. How the provider has reacted to this change in demand

Response to Question A – Part 1

The social-cultural environment affects how and why people live and behave as they do (McCarthy, 1993). It is made up of numerous variables including education levels, food consumed, clothing styles and awareness on global issues. The socialcultural environment is one that keeps evolving and can have far-reaching effects on customers’ buying behaviour.

Drawing from how changes in buying behaviour is based on changes in the various external stimuli exerted on the buyer (Wilson, 1994), we can assume that changes in the social-cultural environment is also based on changes in the various external stimuli impacting it as illustrated in Diagram1.

External Stimuli Demographics Economy Changes in the Social-Cultural Environment

Social-Cultural Environment

Political/Regulatory Environment

Technology

Diagram 1: Drivers of Social-Cultural change. Adapted from Wilson 1994, Strategic Marketing Management

In the following paragraphs, we will use this model to detail changes in external stimuli that have impacted the social-cultural environment in Malaysia over the past decade and the corresponding trends, i.e. change which has momentum and durability (Kotler, 1996). Marketing Strategy – Assignment 1 – Aug/Sept 2009 Page 1

Calvin Ronald R. Jacob - University ID : 7525813 Assessment Reference: MS/July 2009/1

Demographics The Malaysian population stands at 28.31 million and consists of multiple ethnic groups; speaking a myriad of languages and practicing various religious beliefs (refer Diagram-2). The last 10 years has seen few changes as far as these components are concerned. Ethnic Groups Religious Beliefs Languages

• Malay Language official National language • English widely spoken and used for business • Chinese dialects mostly Mandarin, Cantonese & Hokkien • Indian languages mostly Tamil, Telugu, Malayalam, Punjabi • East M’sian indigenous languages mostly Iban and Kadazan Malays & Other Natives (65%) Chinese (26%) Indians (8%) Others (1%) Islam (60%) Buddhism (19%) Christianity (9%) Hinduism (6%) Others (6%)

Literacy
• Definition : can read and write at age 15 • total population: 88.7% male: 92%; female: 85.4% (2002)

Diagram-2: Selected demographic components in Malaysia

The key demographic component impacting the social-cultural environment in Malaysia today is the increasing prominence of the large younger population specifically the Gen-Ys/Millennials who have started to gain employment and have higher purchasing power. Malaysian Gen-Ys have been able to socialise with peers globally via opportunities to study abroad and on-line networks. This has seen them starting to question many of the Malaysian norms e.g. special rights for the Bumiputeras (Malays and other natives), ethnic and religious compartmentalisation (allowing mixed marriages, etc) and being more outspoken. More importantly they are driving global issues in Corporate Malaysia, e.g. sustainability and climate change issues which affect their purchasing and career choices (2009

PricewaterhouseCoopers survey on millennials at work). *Reducing size of households was not discussed as it was more prevalent in the 1980s to 1990s. Economic Situation Malaysia is a growing economy with GDP per capita (PPP) of US$14,000 at growth rate of 5.7% (2008 – Department of Statistics Malaysia). The government plays a key role in development via...
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