Botak Jones Segmentation

...

Malaysia was ranked the 1st country for ease of getting credit due to its good financial system. This means that businesses in Malaysia will be able to get loans from banks easily. As Botak Jones will require a large amount of capital to expand to various locations in Malaysia, Botak Jones can consider getting credit from banks.

The pricing in Malaysia are different from the pricing in Singapore. The local currency is Ringgit Malaysia (RM). Therefore, Botak Jones has to be certain of the prices they have to set in order to attract people to patronise their stores. However, they have to be sure that they are making a profit as well. Furthermore, Botak Jones has to be sure of the people’s spending power in Malaysia. Botak Jones should take into account the new 4% GST before setting the prices for their Malaysian outlet.

Botak Jones has to be aware of the prices of raw materials in Malaysia. High prices of raw materials may mean lesser profit if they keep the price of their food constant. Therefore, they have to research on the prices before deciding to expand into Malaysia.

The disposable income per capital increases throughout the years as the economy was improving after the economic crisis in 1997. At the end of 2007, the annual disposable income was RM12,313 per capital compared to RM7,167 per capital in 1997. The increase in disposable income results in the increase of the consumer expenditure. This is a good opportunity for Botak Jones to expand to Malaysia as spending power of consumers in Malaysia is increasing.

2.3 Social

There are different social factors that will affect Botak Jones in expanding into Malaysia.

The culture there is very different from the culture in Singapore. This is because the majority of people (60.4%) there are Muslims according to the Population and Housing Census 2000 figures; hence they do not eat pork. Fortunately, Botak Jones is halal-certified. Botak Jones will have to cater more to the Muslims as compared to Singapore with 4 out of the 12 Botak Jones outlets in Singapore being Halal. Therefore, Botak Jones has to be aware of the culture differences so that everyone will be able to patronize Botak Jones.

Botak Jones has to be aware of the taste preference of people in Malaysia. The people there have a preference for spicy food. Having more choices of spicy food in their menu will help in attracting more consumers for Botak Jones in Malaysia. Another dish that Malaysians like to have in their meals is rice. It is popular in many dishes. Botak Jones would benefit by changing their menu to suit the taste preferences in Malaysia.

Language is another factor for Botak Jones to consider when entering Malaysia. This is because the main and official language spoken in Malaysia is Bahasa Malaysia. Therefore, Botak Jones has to be sure that they understand the language and learn how to communicate with the people there in order to be able to serve them better.

Malaysia has a high literacy rate of 88.7%, where males (92%) have a higher percentage of literacy rates than females (85.4%). However, Botak Jones has to be sure of the literacy rates in different states in Malaysia. This is because some states in Malaysia have a low literacy rate. A lower literacy rate means that customers will have issues understanding the menu which is all words. Having pictures will ease the ordering process for customers as they know what the food they are ordering looks like. Pictures, even though not as effective as the food itself, are effective in whetting appetites.

There are 19.2 million people (68.1%) in Malaysia aged 15 to 64 years old, while the remaining 31.9% are below 15 years old and above 64 years old. Therefore, by attracting the larger target market, Botak Jones would be able to reach out to more people in Malaysia.

Different states in Malaysia have different population sizes. The larger states are Selangor, Johor and Sabah with more than three million people in each state. The most populated state by number in Malaysia is Selangor with slightly over 5 million people living there. That is the larger than the population of Singapore itself. The second most populated state is Johor with over 3.3 million people. Kuala Lumpur is the most populated federal territory with slightly over 1.6 million people.

All these factors will help Botak Jones understand the culture, lifestyle and demographics of Malaysia so that they would be able to set up stores at the right places which will ideally help them gain competitive advantage in the industry.

2.4 Technological

There are different technological factors that will affect Botak Jones in expanding into Malaysia.

Food has to be served quickly in order to get as many customers as possible. However, the quality of the food has to be taken care of too. Therefore, Botak Jones has to improve on their technological advances to cater to their customers’ needs.

Mobile connectivity and internet service is increasing in Malaysia. From statistics, more people are starting to use subscribe mobile plans and internet. Botak Jones can tap on social media to let people know about them in Malaysia. Social media is now a very popular platform that almost everybody is connected to.

Malaysia’s transportation systems in the urban areas are well-developed. It would be easy for people to travel around. There are various highways that serve the metropolitan areas and travelling from one state to another would be fast and simple. Hence having a stall in one state does not limit the places where customers come from.

3. Competitor Analysis

Main Competition in Singapore

Aston’s

First opened in 2005, Aston’s started out in a small, humble coffee shop located in the heartlands of Katong. With the purpose of bringing top quality western cuisine to the public at affordable prices, Aston’s has since gathered a large group of loyal customers. Because of this success, Aston’s today has opened up a total of 26 outlets all across Singapore, in the city and also in heartlands.

Aston’s is seen as the main, and biggest competitor to Botak Jones because of their similar goal, target market and offerings. Firstly, both Botak Jones and Aston’s have the same target market and main purpose for their business, which is as said, to bring top quality western cuisine to the general masses.

Secondly, Aston’s and Botak Jones have similar product offerings – Burgers,