Analysis of Cepuros Food International Malaysia Case Study

Cepuros Food International Malaysia 0
Analysis of case study
Cepuros Food Malaysia
Student’s Name
12/15/2018

Cepuros Food International Malaysia 1
Determination of demand for baik sos products
Cepuros Food International- Malaysia introduced the Baik Sos to target the urban households
living in the Klang Valley region of Malaysia because here the households receive the salary
from dual sources and are generally not price conscious. The household in Malaysia demands
a premium quality product, which is halal certified and uses the natural ingredients in the
process of making. The demand for baik Sos gets an increase in the Klang Valley region of
Malaysia because here the consumers believe to use the packaged product rather than making
the meals from scratch. The people in Malaysia have busy lifestyles so they prefer the
packaged products, which help the household in making meals fast. They explore globally
and have the global travel experience, which shapes the craving to have exclusive, innovative
and global flavour profiles (Ferrell, 2014).
The demand for baik Sos increase, because the products made, is halal certified and do not
uses monosodium glutamate, it does not uses artificial colour or artificial preservatives and
fulfils the needs of the customers by providing good healthy sauce with premium packaging
in addition to the involvement of high-quality ingredients (Quelch and Hartman, 2018).
The products of Baik Sos were packaged using vacuum seal, plastic pouches with zip
closures and the recipes and the nutrition labelling were put at the back of the bottle. Such
packaging and the detailed information of the product helps CFI-M to gain the trust of the
customers and become a popular brand. Such a strategy helps the company in retaining its
customers and builds its market share (Quelch and Hartman, 2018).
In 2016, CFI-M introduced a single shelf based salsa under the brand name as Baik Sos salsa.
In comparison to Baik Sos cooking sauce, Baik sos salsa was mild spicy which was made by
mixing of a chunk of tomatoes, onions and lemongrass, chilly and garlic. It was inspired by
Mexican style salsas commonly used in the United States. This Baik Sos was introduced to
replace the sambal paste, which was very popular in Malaysia. It was priced as a premium
product to replace sambal paste and was promoted as first and only Malay- fusion salsa
(Quelch and Hartman, 2018).
A SWOT analysis of CFI-M 2017
Strengths

Cepuros Food International Malaysia 2
CFI-M deals in three product lines under the name baik sos. The brand was known for
being healthy as the company uses quality ingredients and do not add any kind of
artificial colour or preservatives. It offers two brands of cooking sauces i.e. the baik
sos sihat line and baik sos riang line. The sihat was positioned as super premium and
riang line was positioned as premium. In 2016, CFI-M introduced single, shelf stable
salsa under the brand name baik sos salsa which was positioned as premium product
and till 2017 it was the only packed sauce in Malaysia. It is analysed that baik sos was
the top seller in two of the largest premium supermarkets in Klang valley. It was
analysed that sihat and riang both has strong brand awareness, which was similar to
maggi and adabi (Scott, 2015).
Weakness
It is observed that baik sos salsa did not perform well in case of brand awareness
because only 19% of shoppers were known about the brand and out of them only 10%
shoppers have actually purchased the product. In Malaysia, people got confused
between baik sos sauce and baik sos salsa because baik sos sauce was used in cooking
and salsa was used without cooking which creates confusion in the minds of the
customer. It was analysed that the company has not used the promotion tools to create
brand awareness of baik sos salsa, which in turns leads to decline in sales of salsa as
people were less aware of the baik sos salsa (Schneider and Hall, 2011).
Threats
Introduction of new product lines by nestle or Heinz is a threat for baik sos salsa
because they will introduce at the lower prices and will capture the market share.
However to overcome such vigorous competition the baik sos salsa brand has to
create promotion and brand awareness within a short span of time. It can also cause
the dilution of the premium image of the brand (Proctor, 2014).
Opportunities
If the brand baik sos salsa introduces new flavours and promotes its brand by
increasing the selling expenditure it is analysed that there is growth opportunity and
the company can double the sales by the ear 2019 and the sales will increase by 15%
in the year 2018. The company has immense of growth opportunities if it introduces
the new product lines because the people in Malaysia have the global travel
experience and demands for unique and innovative flavour profiles. Such demand
leads to the creation of immense opportunities for the baik sos brand (Scott, 2015).