Assignment 2
Assignment 2
0 EXECUTIVE SUMMARY
After the second world war, demographic and lifestyle changes led to rapid growth in
the field of food technology and led to the growth of the fast food industry in the United
States. The success of the fast food industry and the increasing competition in the local
market have stimulated entrepreneurs to find new markets located in developing countries.
The Asian region has been the focus of fast food companies in recent years. Rapid
economic growth has boosted revenue and changed the lifestyle and consumer tastes,
which are among the reasons why fast food companies are focusing their attention on
opening up fast food chains. In Malaysia, most fast food restaurants began operations in the
late 1970s and early 1980s.
In Malaysia, the first KFC restaurant opened in January 1973 on Jalan Tunku Abdul
Rahman, Kuala Lumpur. As a result of high demand from the community, KFC now has over
457 chain restaurants across Malaysia as well as 26,000 employees.
KFC Malaysia is owned by KFC Holdings (Malaysia) Bhd., A company owned by
Kulim Berhad. KFCH currently has about 500 KFC restaurant chains in Malaysia, Singapore
and Brunei, while there are approximately 37 Rasamas chain restaurants in Malaysia. KFC
Group also owns 27 Ayamas Stores and 4 Ayamas Stores, making it the leading branded
chicken and chicken chain retail chain in the country. To complement its core activities,
KFCH has been involved extensively in the field of agriculture and is also host to small
businesses such as vegetable cultivation, bakery and sauce production. Having undergone a
successful restructuring, and a high reputation for producing its products, through customer
service and financial strength, KFCH has become a strong company in the corporate world
of Malaysia.
KFCH, too, is part of Quick Service Restaurants Brands Berhad (QSR Berhad), a
leading company fully integrated as a local fast-food restaurant and franchise that also
operates KFC and Pizza Hut. Meanwhile, QSR Brands is a subsidiary of Kulim (Malaysia)
Berhad, a conglomerate company that focuses primarily on oil palm operations, bio-diesel
production and fast-food restaurants. With over 26,000 staff members in Malaysia,
Singapore and Brunei, KFCH is one of the largest staffing companies in its sector.
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2.0 BACKGROUND OF THE BRAND
KFC Restaurant is one of the best brands ever established in the Western fast food
restaurant market. It is the most popular brand in the Malaysian restaurant chain, accounting
for an estimated 35% market share. With a chain of about 500 restaurants in Malaysia,
Brunei and Singapore, KFC finds that millions enter its network each year.
Next, with the latest product innovations like O.R. Chicken Chop, Cheezy BBQ Meltz,
Chick N Fingers, H&S X-tra, Zinger Maxx and even Fish Sandwich, KFC offers their
customers with a variety of chicken-themed food alternatives. At the same time, they
continue to expand the tradition of chickens by introducing varieties such as Colonel Burger
and X-meal for teens and also providing new promotions and combinations.
KFC's products are the largest chain of fast food restaurants in Malaysia and Brunei,
serving the world-renowned fried chicken recipe containing 11 secret ingredients. In addition
to serving delicious food, KFC continues to target high quality food by cooking products at
the minimum temperatures recommended by the World Health Organization (WHO). To fry
all products, KFC has used non-hydrogenated palm oil which contains insignificant fat and
100% without cholesterol.
Thus, KFCH has developed standard procedures that minimize the risk of ceiling
contamination between raw and edible materials. To make it easier for customers to plan a
complete and balanced meal, KFC has provided nutritional information for each of their
products.
Furthermore, KFCH has a team of food technology experts who are constantly
experimenting with new flavors and creative concepts to provide more value and healthier
choices for customers. In addition to introducing international products to the local market,
KFC has also developed several local flavors designed to enable its customers to enjoy the
delicacies of local food.
KFCH has a team of quality assurance personnel serving in the field service, also
known as the Hazard Analysis Critical Control Point (HACCP). Their job is to conduct regular
assessments at every KFC restaurant across the country. Evaluation covers all aspects of
CHAMPS, including the cleanliness and sanitation of premises and equipment, personal
hygiene, service and hospitality, accuracy of order delivery, good maintenance, quality of
output and speed of service.
Next, KFC has set up a strict temperature control system and storage times to
ensure that every meal provided to customers is clean and fresh. A mystery client program
known as “CHAMPSCHECK” aimed at assessing customer satisfaction at KFC restaurants
is also being introduced.
KFCH has selected a reputable monitoring company to evaluate this CHAMPS
concept. Each restaurant will be rated and rated by setting a minimum of 90% as a passing
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score. While the feedback from this assessment will be reviewed and used to improve the
quality of the restaurant.
KFCH has established the Hazard Analysis Critical Control Point (HACCP) program
for KFC restaurants. This program is a management system for food safety. The process or
task assigned to HACCP is to identify, assess and control the physical, biological and
chemical hazards to ensure food safety. The HACCP procedure is applied starting from the
meal to the customer. KFC's KLCC branch, for example, has been audited and accredited
by a certified certification body since 2005. All of these critical control points have now been
included in the daily operation checklist used by all KFC restaurants nationwide.
Based on the above facts, KFCH has assured consumers that all products sold in
Malaysia at all restaurants or outlets operated by KFCH namely KFC and Rasamas are
guaranteed. This was confirmed by the Halal Industry Development Corporation (HDC) by
issuing a halal certificate along with a halal logo.
Each meal provided by KFC contains nutritional information that aims to make it
easier for customers to understand the value and quality of their fast food. The information
also helps customers make food choices according to their dietary needs.
In line with the development of modern technology and the rapid growth of the
economy, the Malaysian public has been exposed to the modern lifestyle. The results of the
country's rapid growth have significantly changed people's social and cultural lifestyles,
especially in nutrition. The concept of open skies has accelerated the growth of fast food
restaurants so the practice of visiting fast food restaurants in people's lives has become a
habit.
Indirectly, it has changed the culture of the local community which brings with it many
positive and negative effects. These include establishing a culture of inter-racial integration,
applying western culture and changing the culture of family life.
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3.0 OVERVIEW OF MALAYSIAN MEDIA LANDSCAPE
Technological advancements have transformed the landscape of the media industry
by creating competition between traditional and new media. At the same time, the definition
of media credibility has also changed with the changing media landscape. This study aims to
develop and test new measures of media credibility. Also the focus of this study is how
education and perception influence media use and how media use and media credibility
influence audience participation in voicing opinions.
The Malaysian media landscape has shifted over the past couple of years, changing
the way Malaysians interact with each other, how they form their opinions and how they
make purchase decisions. We are in the midst of an exciting time for Malaysian media, as
digital media continues to grow and traditional media innovates to keep pace and stay
relevant. The rise of digital media, however, does not mean that traditional media is no
longer relevant in Malaysia.
Significantly, data also showed that more than 90% of young Malaysians between 15
and 24 years old consumed both traditional and digital media; only 1% of this demographic
consumed digital media exclusively during the time period.
Digital media consumption continued its year-on-year increase, with a total reach of
73% and a growth of 4% in 2017. Among Internet users, smartphone penetration in Malaysia
was high at 98% in 2017, while 93% of those online subscribed to a mobile data plan.
It is therefore unsurprising that Malaysian Internet users spend 15.8 hours per week
on their smartphones, which is another reason why we believe that mobile adspend will
continue to grow as Malaysians increasingly consume digital content using their
smartphones.
Increased Internet usage has also positively impacted Malaysia’s e-commerce
industry. Among the 17.4 million Malaysians aged 15 and above, 10% have shopped for
products or services online past month. Online shoppers tend to be younger (the majority
are under the age of 39), and among the most affluent (with a household income of more
than RM8000) online shopping rises to a healthy 25%.
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4.0 PRINT MEDIA ANALYSIS
4.1 Summary of Articles from Selected Newspapers
For a week, advertising for KFC was relatively low in the local press. Through
select newspapers such as the Daily News and the New Sabah Times, the
advertising space no longer contains KFC ads. However, there are newspapers that
still load ads from KFC such as Metro Daily.
Featured articles are like opening a new branch or introducing some new
menus. The news writers in the newspaper also gave the KFC company a good deal
of attention by writing news that was of high value to the readers.
The news that KFC is introducing a new menu has a positive impact on
readers. The source of information is obtained from reliable sources from the KFC
manager at the branch itself.
If this news comes from a competitor, it gives KFC quite a bit of competition.
This is because the ads that are served can attract both readers and customers to
come.
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4.2 Summary of Articles from Selected Magazines
As for local magazines, KFC is more likely to include promotional ads as well
as discounts held over a period of time. News in the form of articles is somewhat
lacking in magazines.
However, the impact is rather broad as readers now prefer to see ads that are
more compact with information and less use of sentences. It gives the company a
positive image.
Reporters also need to be smart in organizing sentences to look more
attractive and use images that appeal to both KFC's readers and customers.
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5.1 Summary of Articles from Selected local online media
During the week-long observations made on local online media, most of them
featured the latest news on the selected organization KFC. Not only is advertising but
every local online media featuring various articles about new menus, technology
used, new outlets and more.
One of the selected articles is about the introduction of boost technology at
every KFC branch nationwide. This news has a very positive impact on the
organization and its readers. It provides readers with an opportunity to stay informed
on the organization.
Reporters are also very sensitive to current issues by keeping up with the
latest developments in the organization by obtaining information from reliable
sources. In an article quoted in the Daily News, Axiata Digital Sevices Chief
Executive Officer Mohd Khairil Abdullah said the collaboration was also to strengthen
the country's growing cashless payment landscape through e-wallet facilities. They
are always looking for ways to digitally enhance their customer experience and
enhance their lifestyle. This partnership with KFC enables them to provide more
access, availability and additional facilities for Malaysians to make cashless
transactions with Boost while at the same time enjoying cashback rewards.
Trust is another important factor driving advertising success, and consumers
express significant faith in advertising on local content sites Beyond advertising,
satisfaction with local content is high overall, and portals and media sites each have
strengths. Portals lead in satisfaction among all local content visitors.
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Influencers (SI), especially through the social media platform Instagram. It is a
combination of e-WOM and product placement. It is a very subtle way of advertising,
and that is why it seems to work so well.
A company wanting to advertise its product on social media, does not (only)
need to use its own professional profile or page anymore. It simply pays a SI, to
recommend the product on their profile by posting a picture. In that way, the
company can reach larger networks, in very specific niches. And, more importantly, it
does not “taste” like an advert in the mouth of the receiver. Some “followers” do not
even notice that this is pure Marketing, they simply think the SI is genuinely
recommending a product in the picture he or she sees.
In addition to the local and international online media, KFC also uses
influencer media to convey information to customers. This means that SIs on
Instagram can reach a huge number of readers, which creates numerous possibilities
for companies operating in specific sectors wanting to do Marketing on social media.
5.5 Analysis
News coverage of online media focuses largely on issues pertaining to digital
platforms for use in the business and political sector. These stories discuss digital
tools and applications used for professional development and civic engagement that
pertain to adults. Online media is also commonly referred to in the news to bring
attention to the risks associated with digital media usage.
Both the media and the public focus on the dangers and distractions of the
use of online media. Because of these shared patterns, public thinking and media
coverage are likely to coalesce and contribute to a powerfully co-constructed and
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mutually reinforcing narrative about digital media as dangerous and distracting. This
association both explains current skepticism about, and predicts further public
resistance to, increased use of online media in communities.
A leading scholar on framing in the media, most stories in the media are told
in an episodic style. This style of presentation highlights stories about discrete
occurrences or persons and, in so doing, places issues in the private or individual
realm. Thematic stories, by contrast, focus on issues and trends over time. This type
of story examines issues at a community or systems level and directs attention to
more ecological solutions in public policy arenas. In this analysis, the vast majority of
the stories in the media are told in an episodic fashion. Rarely does the mainstream
media discuss online media in relation to larger issues that affect society.
The media’s use of episodic stories creates the perception that online media
is primarily an issue at the individual level of impact. This obfuscates the notion that
online media is a topic with social or extra-individual significance. In the news, online
media are presented as occurring in discrete contexts (rather than as part of a
process over time) among individuals who accrue individual benefits. The media fail
to portray online media in terms of a collective endeavor with societal impacts. This
hinders the public’s ability to view digital media as having a larger significance for
society.
6.0 CONCLUSION
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Print media is just one-way communication. It gives information to the public, but
consumers cannot share their opinions. Even though some newspapers publish readers’
mails, it is not user-friendly.
To search for articles on a piece of particular news in the newspapers or magazines
archives is a very difficult task.
Print media cannot target a specific audience, whereas digital media can show
different ads to a different type of audience and thereby can generate more revenue.
Print media is not helpful for some people with disabilities. For example, digital media
helps people with visual impairment by providing audio versions of the content.
Digital media gives fast updates and enables us to be aware of the latest
happenings, whereas with print media we have to wait till the next day. This makes it easy to
spread important news among the public.
Digital media is two-way communication. Consumers can share their opinions,
thoughts and feedback in an instant. This can also give consumers a sense of community.
It is Eco-friendly, whereas print media requires paper which is harvested from trees.
The famous newspapers are also establishing their own online news portals. This is
because of the growing importance of digital media.
We can search for a piece of information easily in digital media.
Small companies can easily advertise on digital media platforms because it is less
expensive than advertising on print media.
Digital media platforms can generate revenue from old contents too. So, they will get
more revenue and hence can invest more in the quality of the content. Digital media
is democratic unlike print media, which is often run by big businesses.
Smartphone users are increasing rapidly, and so many digital media platforms
are offering content for free due to advertisements. So, people can easily read and watch
content without spending much.
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