Final Year Project: BASIC SITUATION ANALYSIS

Chapter 1 – Project Overview

1.1- Introduction

F&N Fruit Tree is a trusted brand with a range of exciting and freshly squeezed juices with real fruit bits available in pasteurized chilled and canned. F&N Fruit Tree refreshing juice range comes in exotic flavors.All made with real juice. They are healthy and refreshing juices with no preservatives that are full of natural goodness of fruits to excite the senses. Fruit Tree is gaining popularity as the unique juice you can eat. Fruit Tree is more than just juice. Tasty bits like Aloe Vera and Nata de Coco make it a unique thirst-quenching drink. There's also a world of benefits that comes packed in those fruity bits. It's a nutrition-packed drink for the healthy individual. This refreshing juice range comes in exotic flavours such as such as Orange Aloe. Lychee Nata de Coco,Apple Aloe, Mango Nata de Coco , Blackcurrant Aloe, Apple Carrot, Pineapple and Lime.

Certain individual may mislead F&N Fruit Tree as soft drink due to F&N is well known of soft drink long-standing homegrown brand.

1.2 Problem Statement & Issues

The fruit juice brands have become more innovative than ever to fight for more sales share in the market to survive the competition. The product line Fruit Tree Fresh has the tag line “Any fresher,you have to squeeze it yourself” which can be misleading, as the products are not made from freshly squeezed juice.

In the fruit juice market flavoring is no longer an added value in the fruit juice industry since every brand has the same amount of flavors to choose from.

The brand loyalty of other fruit juice products is posing threat to Fruit Tree because they used to drink the long-standing homegrown brand and refuse to try F&N Fruit Tree.

1.3 Objectives and Aims

1. 3. 1 Objective

· To express its benefits to the consumer.

· To reconnecting a message of freshness and healthy goodness, which the brand exudes.

· To enhancing its position as the preferred choice for health-concerned consumers.

· To identify the product competitors and their strategies.

· To know in depth and well about the product strength and weakness.

· To solve the problem encountered and identified by the company.

1. 3. 2Aims

· Getting consumers to buy F&N Fruit Tree over the other brands.

· Enabling the brand to get back its existing customer.

· Gaining exposure and setting and image as the freshness and healthy goodness.

       

Chapter 2 - Product Description 

 

 

2.1 Product Name:

                                                                 F&N Fruit Tree

2.2 Product Classification:

     F&N Fruit Tree is a trusted brand with a range of exciting and freshly squeezed juices with real fruit bits available in pasteurized chilled and canned. F&N Fruit Tree refreshing juice range comes in exotic flavor’s such as such as Orange Aloe. Lychee Nata de Coco, Apple Aloe , Mango Nata de Coco ,Blackcurrant Aloe, Apple Carrot, Pineapple and Lime. All made with real juice with no preservatives and are rich in vitamins. They are healthy and refreshing juices with no preservatives that are full of natural goodness of fruits to excite the senses.

2. 3 Product Characteristics:

 

Packaging	Price	Unit of Sale
Canned	RM1.40 – RM1.80	300ml per canned
Bottled	RM2.20 – RM4.99	350ml, 1.5 litre
Tetra Pack	RM4.99	1 litre

  

2.4 Product Range:

 

	Canned – 300ml Price – RM1.20 – RM1.80 F&N Fruit Tree refreshing juice range comes in exotic flavors such as such as Orange Aloe. Lychee Nata de Coco, Apple Aloe, Mango Nata de Coco, Blackcurrant Aloe, Apple Carrot, Pineapple and Lime.
	Bottle – 350ml Price –RM2.20 5 flavors available for the bottled juice packaging. They include orange, lychee, apple, blackcurrant and mango. 1.5Litre bottle for Orange and Apple flavor only.
	5 flavors available for the F&N Fruit Tree Fresh ·       Orange Juice with Orange Cell Sacs. ·       Apple and Aloe Vera Juice with Aloe Vera Bits ·       Blackcurrant Juice with Aloe Vera Bits ·       Guava Juice with Pear Bits ·       Mango Juice with Nata De Coco Bits
(Available in Singapore only)	1-Litre – RM7.20 250ml bottle – RM3.30 F&N Fruit Tree Fresh Collagenplus is available in two flavours : Peach and Mixed berries.
(Available in Singapore only)	F&N FRUIT TREE FRESH No Sugar Added Available in a range of healthy and exciting varieties: ·       Apple Juice ·       Orange Juice ·       Fruit & Vegetable Juice ·       Cranberry Pomegranate & Apple Juice ·       Carrot Mixed Fruit Juice with Wolfberry Juice ·       Pomegranate Mangosteen & Mixed Fruit Juice ·       Blueberry & Cranberry & Mixed fruit juice

2.5 Distribution:

This product is distributed both directly and indirectly. It is distributed directly to  

modern trade outlets such as major supermarkets, hypermarkets and convenience

store retail chains etc, while distributed indirectly through 150 appointed distributors

and wholesalers nationwide to serve single-retail outlets in every state.

                    Since it can be bought from almost everywhere, it is an intensive distribution.

2.6 Product life cycle:

 

Fruit Tree experience growth within the juice segment.

2.7 The Brand

    F&N Beverages Marketing Sdn Bhd is Malaysia’s largest soft drinks manufacturer and distributor. F&N Fruit Tree is a trusted brand with a range of exciting and freshly squeezed juices with real fruit bits available in pasteurized chilled and canned. In line with F&N’s food and beverage corporate identity, FNBM promises to offer healthy enjoyment in exciting ways. 

2.8 Brand Image & Implication:

     Over the years, the brands in F&N’s stable have continued to grow from strength to strength. Our divisions have worked aggressively to deliver on the respective brand promises through bringing our customers consistent and memorable brand experiences. F&N’s underlying commitment to innovation, quality and excellence undoubtedly enabled the brands in our stable to weather the challenges of the marketplace as well as forge ahead in their respective market segments.

2.9 Strength and Weakness

 

 

a.     Strength:

·      Made with real juice and tasty bits like aloe vera and Nata de coco.

·      Rich in Vitamin A,C and E without artificial preservatives.

·      Reasonable Price

·      The only brand in the market that offers exotic flavours.

b.     Weakness:

·       People don’t really recognize the product.

·      Overshadowed by other competitors such as Peel Fresh & Tropicana Twister.

·      Certain hypermarkets do not have F&N Fruit Tree in stock.

·      Unclear information given on the packaging, thus consumers do not know what kind of feature it actually provides.

 2.10 – Advantages and Disadvantages

a.     Advantage:

·        Affordable for all consumers.

·        Ready-To-Drink

·        Variety of flavor

·        Quenching the thirst of consumers

·       Taste good.

b.     Disadvantage:

·       Limited target user to fruit juice lover

2.11 – Unique Selling Proposition (USP)

F&N Fruit Tree is ready to drink freshly squeezed fruit juice that bursting with flavour and 
texture, targeted at health-concerned people who seek for a juice with personality and bite.

 2.12 – Promotional History and Advertising Schedule

·       The Outdoor Advert titled ORANGE SQUEEZE was done by Bates Malaysia advertising agency for product: Fruit Tree Fresh Juice (brand: F&N Dairy) in Malaysia. It was released in the Dec 2005.

·       Fruit Tree continued to make headway in the market by leveraging on the successful “Excite Your Senses” platform as well as concert and movie sponsorships.

·       Positive associations with popular events such as the Sally Yeh concert and Spiderman 3 movie continues to reinforce the brand’s innovative, young and vibrant positioning.

·       Web Marketing - Facebook F&N Fruit Tree Feel the Fruit contest.

·       Drink F&N Fruit Tree juice & win RM500 Cash on 29^th Jul 2010.

·       Majlis Mesra Gong Xi Fa Cai 2011 on 21^st Feb 2011

·       Sponsorship of 20,000 bottles of  F&N Fruit Tree Juice to The Star Education Fair on 18^th Feb 2011.

2.13 – Positioning Statement

F&N Fruit Tree is ready to drink freshly squeezed fruit juice that bursting with flavour and 
texture, targeted for generation aged 17 to 25 who seek for a juice with personality and bite.

Chapter 3: The Company

3.1 Company Overview

 

     Today, F&N is a leading Pan Asian Consumer Group with core expertise and strong standing in the Food and Beverage, Property and Publishing & Printing industries. Leveraging its strengths in marketing and distribution; research and development; brands and financial management; as well as years of acquisition experience, it provides key resources and sets strategic directions for its subsidiary companies across all three industries. F&N owns an impressive array of renowned brands that enjoy market leadership across a mix of beer, dairies and soft drinks; residential properties, retail malls and serviced residences; as well as publishing and printing services.

3.2 Business Description

 

    A renowned brand that has since become a household name to many, Fraser and Neave, Limited (“F&N” or the “Group”) has established itself as a leading player in the Food & Beverage arena in Singapore and Malaysia since 1883. Beyond soft drinks, it has successfully ventured into beer brewing, as well as producing, marketing, sale and distribution of dairy products such as milk drinks, ice cream, isotonic and Asian drinks, while building an increasing number of reputable brands in the region.

     F&N’s continuous commitment of providing the consumer with the highest quality products remains steadfast. Through the years, the Group has undoubtedly demonstrated this commitment through a vast array of nutritional products of the highest quality to satisfy changing consumer tastes. This is affirmed by the Group's leading positions in our markets across various products (for instance its isotonic drink, 100PLUS has close to 90% market share in Malaysia). With a rich and impressive heritage, a strong portfolio of brands and established distribution networks, F&N remains focus on strengthening the Group’s leadership position in the Food and Beverage industry and aims to reinforce its foothold in the Food & Beverage arena geographically across the Asia Pacific region and beyond.

3.3 Company History

 

     Fraser and Neave, Limited ("F&N" or the "Group") had its origins, more than a century ago, in the spirited decisions of two enterprising young men, John Fraser and David Neave, who diversified from their printing business to pioneer the aerated water business in Southeast Asia in 1883. From a soft drinks base, F&N ventured into the business of brewing in 1931, dairies in 1959, property development and management in 1990 and publishing & printing in 2000.

3.4 Key People

 

Y.A.M. TENGKU SYARIF BENDAHARA PERLIS SYED BADARUDIN JAMALULLAIL IBNI ALMARHUM TUANKU SYED PUTRA JAMALULLAIL
Malaysian, age 64
Chairman of the Board, Independent and non-executive director
Chairman of the Nominating and Remuneration Committees
Member of the Audit Committee

Tengku Syed Badarudin was appointed to the Board on 8 February 1987 and on 27 February 2001 was appointed its Chairman.

Y.BHG. DATO’ NG JUI SIA
Singaporean, age 58
Non-independent and executive director
Chief Executive Director

Dato' Ng has been appointed the Chief Executive Officer of Fraser & Neave Holdings Group on 1 August 2010.

Y.BHG. DATO’ DR NIK NORZRUL THANI BIN NIK HASSAN THANI

Malaysian, age 49
Non-independent and non-executive director

He was appointed to the Board on 7 November 2006. He also is a nominee director of Permodalan Nasional Berhad, a major shareholder of the Company.

MR KOH POH TIONG (Resigned w.e.f 30 Sept 2011)

Singaporean, age 62
Non-independent and non-executive director
Member of the Nominating and Remuneration Committees

He was appointed as a director on 1 October 2008. He is the Chief Executive Officer, Food & Beverage of Fraser and Neave, Limited, a major shareholder of the Company.

MR LESLIE OSWIN STRUYS

Singaporean, age 72
Senior independent and non-executive director
Member of the Audit, Nominating and Remuneration Committees

He joined Fraser and Neave, Limited in 1960 and in his career worked in numerous capacities in sales, marketing and production. He was based in various locations including KL and Ipoh and was the first Branch Manager of the new F&N bottling plant in Johor. His last position was Product Manager in the soft drinks operations in Malaysia and Singapore in 1972.

MR HUANG HONG PENG
Singaporean, age 50
Non-indepedent and non-executive

Mr Huang Hong Peng is currently the Deputy Chief Executive Officer (Food & Beverage) of Fraser and Neave Group. ("F&N Group") He sits on the boards of F&N Group subsidiaries and associates.

3.5 Location and Subsidiaries

 

Map to Fraser & Neave Holdings Bhd

GPS Coordinates Latitude & Longitude: 3.129626, 101.714054

Fraser & Neave Holdings Bhd
Level 17Menara Great Eastern
No. 303 Jalan Ampang
Kuala Lumpur
Malaysia

Fax: 60 3 42522626

E-mail: www.fn.com.my

3.6 – Brands, Major Products and Services

 

Food and Beverage

      A household name to many, F&N has established itself as a leader in the Food & Beverage arena in Singapore and Malaysia since the 1930s. Beyond soft drinks, it has successfully ventured into brewing beer in 1931 and dairies in 1959. The Group’s Soft Drinks and Dairies business, with operations and investments in Singapore, Malaysia, Thailand, China and Vietnam, are operated primarily through Fraser & Neave Holdings Bhd; while our Beer business, executed mainly through Asia Pacific Breweries Limited, operates 37 breweries in 14 countries in the Asia Pacific. Today, the Group owns a portfolio of reputable brands including F&N, 100PLUS and SEASONS for Soft Drinks; Magnolia, Nutrisoy, Fruit Tree Fresh and NutriTea for Dairies; and Tiger, Anchor, Baron’s and ABC for Beer. The Group’s consistent leading market shares across various products have led to F&N being conferred numerous brand awards. Through established distribution networks and joint partnerships, F&N aims to reinforce its foothold in the F&B industry geographically across the Asia Pacific, further expand its portfolio of brands and strengthen its research and development capabilities. 

Properties

       Frasers Centrepoint Limited (“FCL”) is a wholly owned subsidiary of F&N. From a single shopping mall along Orchard Road, FCL is now a leading integrated Singapore-based property company with a strong foothold in property development, property investment, serviced residences and investment funds. Its global footprint spans Australia, China, Japan, Hong Kong, Korea, New Zealand, Philippines, Thailand, UAE, Vietnam and the UK. With the objective to continue delivering sustainable earnings to our shareholders, the Group shall remain focused on building the integrated commercial real estate model and balancing its portfolio by diversifying overseas and across multiple sectors.

Publishing & Printing

      The rich intellectual capital of Times Publishing paved the Group’s entry into the knowledge-based economy. As Singapore’s largest publishing and printing company, Times Publishing has a well-established track record in publishing, printing, direct sales, distribution and retailing of books, magazines and the provision of educational services. It operates a global network spanning South-East Asia, Hong Kong, China, Japan, Australia, Europe and the USA.

 3.7 – Corporate Vision 

 

Vision: "To become the leading total beverage company in Malaysia and the region" 

3.8 – Corporate Mission 

 

Mission: "To be a world-class multinational enterprise providing superior returns to our shareholders, excellent
value for our customers and a rewarding career for our employees" 

3.9 – Company’s Current Promotional Strategy 

 

FNBM has implemented several strategic measures that emphasize its strong brand presence as well as invest 
heavily in advertising and promotions. 

Adopt 360 degree marketing strategies: 
· Road Shows 
· Contests 
· Television Commercials 
· Prints Ads 
· Sampling 
· Sponsorships 

Facebook F&N Fruit Tree Feel the Fruit contest

3.10 – Product Sales’ History 

 

      The Food & Beverage (“F&B”) division delivered another very satisfactory set of results for the year, supported by strong revenue and profit growth across all business sectors. Fruit Tree continues to experience growth within the juice segment.

3.11 – Current Marketing Objective

 

Short term Objective:

Providing superior returns to our shareholders, excellent value for our customers and a rewarding career for our
employees.

Long term Objective: 
To be a world-class multinational enterprise with an Asian base, providing superior returns with a focus on Food &
Beverages, Properties and Publishing & Printing business.

3.12 – Media Expenditure

 

· The Outdoor Advert titled ORANGE SQUEEZE was done by Bates Malaysia advertising agency for
  product: Fruit Tree Fresh Juice (brand: F&N Dairy) in Malaysia. It was released in the Dec 2005.

· Sponsor and active in many events: 
- F&N's handing over the sponsorship of 20,000 bottles of F&N Fruit Tree Juice to The Star Education 
Fair. 
- F&N Beverages Marketing Sdn Bhd will be distributing 20,000 bottles of fruit tree juice drinks for 
 visitors to the fair at the Penang International Sports Arena (PISA) in 18^th Feb 2011.

· Facebook F&N Fruit Tree Feel the Fruit contest

  Share the Fruit Moods and win weekly prizes and a Samsung Galaxy Tab  
  Publish on the facebook wall and get 1 point (Max: 5 pts per day), or Send to Friend. If your friend 
  accepts the mood and joins the page, get 10 point.