“Spritzer Berhad”

1. Introduction

1.1. About “Spritzer Berhad”

Everyone knows Spritzer as Malaysia’s best selling natural mineral water. The company was founded on May 26, 1993 and headquarter is in Taiping (Malaysia). Meanwhile, the Company, Spritzer Berhad is an investment holding company listed in Bursa Malaysia, which have been specialised in the manufacture and distribution of bottled and non-carbonated flavoured water since the late 1980’s. The Company operates through three segments. The Manufacturing segment produces natural mineral water, sparkling natural mineral water, distilled drinking water, carbonated and non-carbonated fruit flavoured drink, functional drink, toothbrushes, and packaging bottle. The Trading segment sells bottled water and other consumer goods. The Other segment focuses on investment and properties holding.

1.2. Purpose of launching the products

Health Energy Drinks are taking the business world by storm. Nowadays young consumers are trending toward more health-conscious lifestyle, for example they are willing to spend on healthy drinks, supplements, organic foods and etc. Furthermore, with the overwhelming responds on Spritzer BonRica, we can know that there is demand on healthy drinks. Consequently, three drinks of new flavours with different benefit are introduced to meet the customers’ demand. Spritzer hopes that the introduction of the drinks will compete for a greater share in the market and at the same time it will capitalise on the growing consumer demand for more natural and healthy products.

1.3. New product – Spritzer BonRica II

Spritzer BonRica is product rebrand from Spritzer+Fibre. It is a healthy beverage that contains soluble dietary fibres for optimal intestinal functions with its prebiotics effect. It also enhances calcium absorption for an increases bone mineral density. We have two flavours – Yogurt and Passion Fruit.

"Spritzer Berhad" Case Study

With the overwhelming responds on Spritzer BonRica, we are now going for Spritzer BonRica II. The products will be launched exclusively in Malaysia on 3rd January 2019, and is available in three flavours – Lemon, Grape and Orange. It is to be made from natural ingredients and does not contain artificial preservatives, colours, sweeteners and flavourings. Less sugar in the drink could also help to prevent damage to our teeth. The drinks will be packaged in 500ml plastic bottles and will retail for RM4.00. The plastic bottles are of stylish and unique design such that consumers can use them as water bottles.

2. Company position in the Industry

2.1. Positioning

Spritzer would like to uplift themselves in the different way other than natural mineral water. It has been only “natural mineral water” since 1993 and kind of no freshness feeling to the public. With the launching of Spritzer BonRica series, Spritzer wants to be positioned as a producer of healthy drinks in the market.

2.2. Targeting

Spritzer BonRica II targets the adult’s segment whose age is between 20 to 40 years old as the main consumers of buying healthy drinks. This group of people is mostly employed and have the spending power to buy frequently. Their lifestyle and working environment require them to consume healthy soft drinks to maintain competitive compare to others. For example, with refer to the benefits in the chart above, frequently drinks “Monster Energy” can produce feelings of alertness, wakefulness and productivity, meanwhile this will increase the working performance and become more competing in their company. “Monster Energy” can also be consumed by exercising people, this will give them more energy. On the other hand, this group of people can easily access to most of the marketing communication such as radio, internet, social media, and mobile phones. This can make our advertising more effectively reach our targeted consumers.

2.3. Message to the public

Our slogan on Spritzer BonRica series is “Renamed, Renewed, and Reborn.” This is not an ordinary soft drink; it is a healthy drink that will light up your day with energetic and powerful body. We want consumers to be renewed and reborn with healthier lifestyle from inner body to outer living atmosphere.

3. SWOT analysis

3.1. Strengths

Spritzer Berhad is an investment holding company listed in Bursa Malaysia, they have investor shareholder and a strong financial resources. The company have an established distributor network. Spritzer is a trusted brand and they already has an existing customer base, consumer has confident in trying any new product launch by them.

Spritzer’s image is favourable due to its social and environmental friendly techniques. For example, Spritzer actively support and sponsor on charity activities as well as education and sporting sector to make the social better. The Company also built “Spritzer EcoPark” in Taiping which brought the inception of preserving the nation’s heritage by merging fun, education and heritage to life.

3.2. Weaknesses

Spritzer has overly strong image of manufacturing and distributing natural mineral water in Malaysia, not all the people know that actually Spritzer do selling few range of products such as carbonated fruit flavoured drink, non-carbonated fruit flavoured drink, and functional drink. Spritzer Berhad has a weak marketing strategy because lack of advertisement promotion.

3.3. Opportunities

Spritzer will launch a new Automated Storage and Retrieval System (ASRS) warehouse project and is targeted for completion by the last quarter of 2019. On completion, Spritzer’s warehouse capacity will increase by up to 30% and will bring additional benefits of higher throughout rate due to improved operational efficiency.

Spritzer has strong growth opportunities in the segment if they have a strong marketing strategy to promote their second-line products to the market. Furthermore, there is increasing demand for healthy soft drinks and low barriers of entry to the market.

3.4. Threats

There is a possibility of imitations and launch of similar products by rivals. Change in taste among customer is also an issue that Spritzer needs to consider, they need to actively looking for consumers’ feedback toward their products.

4. Marketing Strategies

4.1. Advertising Media

Advertising can be in many communication forms, we choose a comprehensive way, which is both One-Way and Two-Ways communication, so that our message can reaches the targeted consumers effectively. One-way communication is the traditional way of sending message to our consumers, while Two-Ways communication is further enhance, we speak and listen to our consumers’ feedback, responding directly to their wants and needs. It’s important as we can know the room for improvement.

4.1.1. One-Way Communication

Website can be easily browsed by people nowadays with just a smart phone on hand at anytime and anywhere without hassle. Spritzer has all their products’ information in their official website. Consumer can find out the product details and even make online purchasing on the spot from their website, because Spritzer do provide delivery service to doorstep. Furthermore, advertisement can be placed at different ethnic online publications for example Malaysiakini, The Sun Daily, and Oriental Daily. We have picked “World of Buzz” because they are the most influential social news site in Malaysia with over 8.9 millions page views and 21.7 millions video views monthly by Malaysians.

Video advertising is also a straight forward approaching. Spritzer has their own video channel in their official website and the video clip can share to other social media such as YouTube, Facebook, Instagram or more. Video advertising in TV and YouTube can create awareness on new launching product. Certainly, the video content has to be interesting and meaningful to fascinate consumers to try our products. Therefore, video can mix with Jingle advertising to form a unique clip Jingle advertising through radio is always easily catches the audience provided the jingle is unique, fun and memorable. There was an Air-Conditioning brand called “YORK – the Cooling King”, we can always listen to its catchy jingle through radio in the morning when driving to work. Although the brand is no longer exist in the market, but when we think about air-conditioning, we will recall York, its song and the brand message – Cooling King. This is the power of Jingles; they are easy to remember with the repetition to the sound of music. Undoubtedly, Spritzer is going to have their Jingles – “Light up your day with a bottle of BonRica Yeah!!”

Printed material advertising will indicate the benefits of our healthy soft drinks; it can be in the form of magazine, newspaper, brochure, bunting, and poster. We target on newspaper such as The Sun Newspaper, Red Tomato Newspaper, and Oriental Daily Newspaper, because these newspapers are free to take and is distributed at subway station or area nearby office building which mostly working adult from my targeted group age 20 – 40 years old. Besides, brochure, bunting and poster can be placed at convenient store or relevant stores that we have distributed our new product for selling. As we also plan to place our new products in vending machine at Fitness Centre, poster is good to stick on the vending machine.

4.1.2. Two-Ways Communication

Social media advertising is virtually no limit to your ability to scale as long as the person access to internet. There is no better marketing strategy than social media advertising. Facebook, Instagram and Twitter are the best social networks for advertising because they have huge number of users. In third quarter of 2018, Facebook had 2.27 billion monthly active users; Instagram had 1 billion while Twitter had 326 million. Besides, we can interact with consumer in this social media, build up relationship in the way of responding to their comments, answering questions and addressing complaints.

4.2. Sponsorship

There are annual and regular sponsorships being undertaken by Spritzer such as sporting, entertainment, educational and cultural events. For example, SEA Games, marathon, charity run, Champions League and etc. These sponsorship activities could improve its’ branding and increase its’ exposure to the regional audience.

4.3. Collaboration with Mobile Apps

What do we think of when talk about healthy drinks? It’s “Healthy Lifestyle”. We will collaborate with the famous mobile application – JomRun, which is the best running application in Malaysia with 11,000 of “Like” in social media Facebook. We have the same intention which is to make Malaysians healthier. JomRun is by the way rewarding people for their running activities, accumulate points while running and make the end of a run much sweeter by redeeming discount vouchers in JomRun. While Spritzer can be the sponsorship of the reward item such as “Redeem a BonRica Lemon/Grape/Orange for Free”. We may not make any profit from this activity, but we will gain a great marketing exposure of our new launching product with this channel. We are confident that after their first try on our drink, they will try the second time.

5. Distribution

5.1. Collaboration with Fitness Centre

Gym and fitness centres are adding vending machine to their business equipment list as a way of adding services to their clients. The Company hopes to engage with customers in a new way and are confident that they will enjoy its sophisticated taste, hence placing our “Spritzer BonRica 2” in vending machine at exercise area of famous gym and fitness centre would be the best option. We have chosen “Celebrity Fitness + Fitness First” because they are the largest chain in local gym operators industry and it is believed to be the market leader with the highest number of members and outlets spread across Klang Valley.

5.2. Collaboration with Health & Wellness Company

It’s suitable to sell our healthy soft drinks at Health ; Wellness Company such as Eu Yan Sang, Multicare Pharmacy and Alpro Pharmacy because they are chained-company and have many outlets within Malaysia – Eu Yan Sang has 79 outlets; Multicare Pharmacy has 46 outlets while Alpro Pharmacy has 63 outlets. The most important is these companies have specialist and pharmacist that can promote our product to consumer, consumer will have more confident of buying when listening to advice from specialist.

5.3. Distribution Channel

Spritzer BonRica II will distribute to all retailing stores together with other Spritzer product, for example AEON, Tesco, Village Grocer, Mydin, Cold Storage, Jaya Grocer, NSK and other big hypermarket. However, we specially targets to penetrate subway, petrol station, and convenient store through distributors specialising in the segment. We would like to create a buying pattern of “Grab & Go” especially during peak hours in the morning where all people rushing to work, at the same time can start the day with drinking healthy drinks. Subway includes interchange stations or high population stations like KL Sentral, Hang Tuah, Bukit Bintang, KLCC and etc. Convenient store at petrol station such as Petron, Petronas, Shell, BH Petrol and Caltex. While convenient stores are 7-Eleven, Family Mart, 99 Speedmart and myNews.com

6. Conclusion

After conducting the study on the SWOT, newly marketing strategy and distribution channel of the company, there are considerable opportunities for the new products “Spritzer BonRica II” to be launched in the market. Besides, the level of threats is low and manageable. I therefore recommend the marketing plans to be implemented.