COMPETITIVE ANALYSIS
Nourish Health Sdn Bhd (NH) is Malaysian's 1st HALAL healthy food delivery service. It is the premier website that provide above mentioned service and also known as 1st mover to the current market. However NH is not without competitive pressure. Major competitors include Ezy Meal and Mangkuk Tingkat and a company highly recognizable brand such as Pizza hut which is global leader of the Malaysian delivery food services.
Pizza Hut is global leaders of the Malaysian, pizza, quick service food categories. Pizza Hut (corporately known as Pizza Hut, Inc.) is an American restaurant chain and international franchise that offers different styles of pizza along with side dishes including pasta, buffalo wings, breadsticks, and garlic bread. Pizza Hut is a subsidiary of Yum! Brands, Inc. (the world's largest restaurant company with approximately 34,000 restaurants, delivery/carry-out locations, and kiosks in 100 countries.
Ezy Meal is the World's 1st English and Mandarin Online Meal Ordering Website. Ezy Meal also provides a search directory to provide up to date and comprehensive dinning guide which is useful tool for ideas of where to dine. They also provide food bloggers and forumers to search, post, and review and discuss all about the food. Though, the meals only cater for lunch meals from 11.00am until 2.00pm and currently limited to certain building in the Kuala Lumpur Golden Triangle area.
Mangkuk Tingkat is a program that provides meals for those wants to save cost and having proper and balancing diet meals. Besides that, Mangkuk Tingkat also introduced to help Malaysian housewives to gain extra income. All the food provided by Mangkuk Tingkat is certified by IMP (Islamic Manufacturing Practice) to ensure all the process of providing food is clean, safe and follows the Islamic's rules. Mangkuk Tingkat services only available on weekdays (Monday to Friday) and there is no delivery service on weekend (Saturday and Sunday). Indeed, the customer does not have any preferences to choose their own meals menu since Mangkuk Tingkat have their own daily Menu.
A MATRIX ANALYSIS ON COMPARISON BETWEEN NOURISH HEALTH (NH)
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'MANGKUK TINGKAT' AND 'EZY MEAL'
| MANGKUK TINGKAT | EZY MEAL | NOURISH HEALTH (NH) | |
|---|---|---|---|
| PRODUCT & SERVICES OFFERING |
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| PRICE RANGE & POLICY |
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| QUALITY |
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| UNIQUE FEATURES |
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| Three unique benefits:
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| MARKETING / ADVERTISING STRATEGY |
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| TARGET MARKET | Individual or group seeking lunch or dinner meals. |
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STRENGTHS / WEAKNESSES | STRENGTHS
WEAKNESSES
| STRENGTHS
WEAKNESSES
| STRENGTHS
WEAKNESSES
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| OPERATIONS |
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BASIS COMPETITION FROM MAJOR COMPANIES IN THE MARKETPLACE
Customer Support
One of the most recent trends in eating is the rise of interest in consuming healthier food. The best known example of this is the move toward healthy foodstuffs. Major companies of this industry realize that there is a significant percentage of the population in Malaysia that is demanding more and more naturally grown, organic meats and vegetables and the companies are well positioned to take advantage of this change.
The idea healthy food delivery came from thought a "Lazy" thought. Nowadays, we lead a busy life and very often forgot to eat due to our heavy job load. After spending the whole day working and when we have some free time, we all would like to take a good rest.
Lunchtime is the only period for workaholic to take rest and enjoying their meal. But every time they look out at the window, they will be so lazy to go out for their meals either due to the scorching sun or heavy downpour. But yet our lovely country always has these two types of weather. Even if they have a clear & windy day, they might be caught in the jam. In the 1 hour lunch time, 45 mins might be wasted on the journey and waiting for food. What's left is only 15 mins to eat the food.
The food delivery service will deliver their food to their doorstep, this saves the time of queue up for food, allowing them to sit back and relax in their office or home. They will never need to think of what to eat and no worries of taking too much MSG. Healthy food delivery solves all their problems and most importantly taking care of the customer health. Now they can relax comfortably in their office or home and enjoy healthy & delicious meal that provided to them.
Quality
Healthy food delivery companies serve wide range of quality healthy foods that can easily fit into individual diet needs based on the principles of balance, variety and moderation. Their varied menu and range of serving sizes make it easy to fit their food into a balanced diet and to create a range of meal combinations that fall within recommended guidelines for calories, fat and other nutrients.
With their cooking systems, customers can special order various menu items to help meet customer nutrition needs. Customer also can get nutrition information online. Simply visit the website for nutrition and ingredient information and to customize menu items to customers' needs.
Food quality assurance the foundation of all healthy food delivery companies responsible to supply efforts is their commitment to ensuring that all foods and beverages that served to customer are safe. They only do business with chef or suppliers that share this commitment and work with them to continuously monitor, test and track their ingredients.
New Product/Service
Every time when people talk about healthy food, we always think that it must be those tasteless, bland food. And now the competitors are going to change people's mindset, they are trying very hard to prove that a nutritious meal can also be delicious meal. Getting the balance between healthy nutrition and taste is their target to prove to the customer. With only 1 button click or just a phone call, they help customer to solve their meals problem.
The major competitors also constantly in the lookout for more merchant partners to add more product choice and to cover a wider service area to serve their customers. In fact, they also look to include groceries (including organic products) as a natural part of their ordering and delivery service.
BRAND LOYALTY
The internet industry is highly fragmented and competitive. Each company within this field has low capital costs and low margins which create this high intensity of competition.
There also exits a very high degree of rivalry among firms due to the perceived overcapacity in this field. The more influenced website often has cost advantages due to economies of scale that allow them to outcompete smaller rivals.
The barrier to entry and exit are very low in this industry. Switching costs are virtually nonexistent and the costs to entry and exists the market are low. The large number of competitors in this field including substitutes such as pizza hut, other local healthy food restaurants, Mangkuk Tingkat and EZY meal mean that the price for such service are very competitive. The only way to have an advantage in this industry is either a low cost leadership principal applied aggressively to all aspects of the business or to differentiate the entire eating experience through better and more unique food and to build up customer relations to a point where the switching costs are raised.
COMPETITOR PERCEIVE THEMSELVES
Repeat Business - Every customer who comes in once should return and recommend them. Word of mouth marketing is a powerful assistant.
Location – Wide delivery service.
The right food, variety meals (more than 2000 menus) with a price high enough to establish credibility but not so high as to limit customers.
The competitor use local radio as one of the means for promotion. In addition, they use flayers to local businesses, direct mailers, billboards and etc. Billboards and radio they used for the first six months to establish customer awareness and product attractiveness. Mailers and flyers used to advertised sales promotions that will help bring in customers.
SUSTAINABLE COMPETITIVE ADVANTAGE
Our pricing strategy will focus on providing high quality, healthy food that is quick and has unique flair. Because of this, we expect to be able to charge somewhat more our products than other competitors as long as the customers agree that the food is better than average.
The technological, organizational and financial activities of a company are excellent market position, which helps the SCA. NH's is undoubtedly rich in aspects such structure, technology and finance. To identify and implement these activities in the right direction in improving the company is all that is necessary.
Our channel of distribution is our own website because bring products or services to the right people and to reach the target audience. There are a number of different distribution channels available on the Internet which could be utilized efficiently to the benefits of our website. It can be proven and witnessed the growth of the Internet over the recent years and while everyone knows the traditional online distribution channels such as newsletters, and electronic press releases, it is time to have a look at some unconventional channels of distribution on the web.
Social Networks (Facebook, MySpace, Friendster)
The current trend of the Internet is social interactions, and the trend is here to stay for a while. Multi-million corporations are in the hunt to acquire popular social networking sites because they understand the potential and the impact social networking has on Internet users. Treating social networks such as Facebook and MySpace as our distribution channels mean reaching to more people and increasing awareness of our website.
Blogs
Use blog to provide up-to-date information and enables readers to engage in discussions via comments. By using blog as a distribution channel, businesses we can build a loyal readership and interact with our customer base.
Entering into this market will not easy, the industry is highly competitive with periodic overcapacity, low margins, and low entry/exist barriers. In addition, there are a larger number of substitutes and the suppliers to this market have a great deal of power.
In order to overcome these issues, the company has acquired an excellent locality in the city center area and intends to provide a suitably upscale environment to draw in the company's main target market segment, the business professionals. The company will seek to provide these customers with the maximum number of services to create the greatest sales volume during company's peak hours of operations.
The company will have a comprehensive marketing, advertising, and promotion campaign that will maximize word of mouth marketing and will consist of radio, printed material, and billboards.
The company has planned to offer its product at a slightly higher price that that of its competitors. This is to provide credibility to its cutomers as an upscale establishment that provides a unique menu. This will also provide the finds to cover the higher than expected operating costs due to the differentiated and expanded menu.
Our market place is not dominated by a few companies that control over 60% of the market. This is due to our companies is still growing market. Without a doubt, online food delivery businesses are the fastest growing trend in 2009. There are roughly 6.7 billion people living on the planet today according to the Internet World Stats: Usage and Population Statistics as of June 30th 2009 and of those 6.7 billion people, almost 25% of them are on the internet. That comes to about 1.69 billion people that are on the internet every day. The increased of usage internet leads our business grows in the market place. However, HALAL healthy food delivery in Malaysia is still new in the market compared to other online food delivery service.
