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Topics: Marketing, Pricing, Financial ratios Pages: 5 (1648 words) Published: February 22, 2013
Mamee Double Decker M Berhad Increase Profit Marketing Essay 1.1 INTRODUCTION
Mamee-Double Decker ( M ) Berhad or known with abbreviation of MDD is one of the leading company in Food and Beverages ( F&B ) industry in Malaysia. It has been incorporated since 1971 and have wide range of product lines which are snacks, confectionaries, beverages and instant noodles as well. Snacks being the most profitable contributor to the company’s profit margin with percentage of 59.2% [1] . In this commentary I will investigate what is the marketing mix used by the company and how does it helps the company to gain profit. From the survey I conducted, I’m going to thoroughly investigate the effectiveness of each of the strategies used by the company and how it relates to the contribution of an increase in profit of MDD. In this commentary, apart from using survey it will also be based on several newspapers reports and articles as well as from the company. Different sources of documents will give me different views in examining this issue. 1.2 Marketing Mix Analysis

According to The American Marketing Association marketing is “the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational goals” [2] . In this analysis, I am going to analyse the marketing mix used by the company which the responds from the consumers from a survey that I conducted are also included. From the MDD Quarterly Financial Report for 2010 it is found out that the gross profit of MDD roses from 32.6 million to 42.6 million. The increase is closely related to the marketing mix used by the company. Price plays the most important role as F&B industry are already concentrated with intense competitions. MDD use competition-based pricing as in the industry MMD have many competitors. MDD is the price setter for the industry as they holds 31.1% [3] of the market share as recorded in February 2010. As we can see the price set by MDD for its snacks products are almost the same like other company where it is at affordable price as low as 30 cents per packet. This is suitable as MMD customer’s target is mainly children. However, MDD also use the promotional pricing strategy to attract consumers to buy their products in which they use addition to the content of the snacks and competition as their main attraction. From the survey that I conducted, about 78.8% of the respondents felt that the prices set by MDD are reasonable and 21.2% of them buy MDD products because of the reasonable prices. Figure ; Reasonability of MMD products’ price.

This is further indicated by an increase in the profit of MMD in the first quarter which roses from 32.6million to 42.6million [4] . The increase in gross profit signed that consumers keep buying their products and one of the contributing factor is their reasonable price. In terms of the product, MDD offers a wide variation of its product line. These include Corntoz, Mamee Monster, Double Decker and Mister Potato. All the products are in their maturity stage of the product life cycle. During this stage, the products are well known to the consumers and from my survey it is found out that 97.1% of the respondents are aware of the existence of the MDD’s products [5] . Continuous research and development ( R&D ) findings [6] by the company in improving the taste and add in new flavours contributes to an increase in the profit margin. The main contributor to MDD’s snacks sales is Mister Potato 35% [7] of the total sales. 43.8% rated Mister Potato product as very good and from the survey also 43.1% of the respondents buy MDD products because of the good taste. The introduction of the new flavour of Mister Potato which is the Rice Crisps [8] product line is expected to increase the sales of the Mister Potato brand. In term of place of distribution of the products, MDD mostly distribute their products to supermarkets and convenience...
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