Mister Potato Pestle Analysis

1.0 Introduction

1.1 Background

Mister Potato is a product line introduced in year 1991 by Mamee Double-Decker (M) Sdn Bhd, well known as Mamee. Mamee is a Malaysian based company founded in year 1971 with interests in the manufacturing, marketing and distribution of snack foods, beverages, and other products, which exports to nearly 100 countries internationally. Their representative products includes MAMEE Monster snack, Mister Potato Chips, and MAMEE Chef. With their company slogan "A World of Good Taste", Mamee is very popular in Asean Country such as Singapore, Indonesia, as well as European country such as Australia. MAMEE-Double Decker has set up manufacturing facilities in Myanmar and Indonesia in addition to support their massive production so that there will not be shortage in supply. All facilities have been awarded ISO 9000s, HACCP and Halal certifications. As for their achievement, their dedication to the industry has led MAMEE-Double Decker to win the Frost & Sullivan Award for Best Home-Grown Packaged Food Company (2013 & 2014), and a Putra Brand Award under the Foodstuff Category (2014). Last but not least, the other product MAMEE Chef Instant Noodle has been rated in the Top Ten Instant Noodle category consistently by the Ramen Rater.

In year 2000, Mister Potato Crisps was officially launched with much success. In the Mister Potato brand, KMM has over the years built a world-renowned brand by ensuring quality, investing in branding initiatives, promote product innovation and provide consumers with value-for-money products. (MATRADE, 2017) To its customers, Mister Potato symbolizes their self as active, adventurous, fun and modern lifestyle brand offering a variety of exciting and tasty snacks that enriches moments of FUN. In shorts, to enhance happiness of their consumer.

Mister Potato is now being enjoyed by consumers in over 80 countries including its home country of Malaysia. (MATRADE, 2017)

1.2 Pestle

1.2.1 Political

Political environment in Malaysia is said to be steady after all, at least for Mister Potatoes. Malaysia is a multi-party democracy country.  The ruling Barisan Nasional party has been in power over 25 years. This could be a twin edge to Mister Potato as country with a high degree of stability, which is important factor for businesses investing in the country. However, Corruption does exist in the country, as transparency International ranks Malaysia 47th of 180 countries in its Corruption Perceptions Index. 2018 is changing point for all Malaysian as people have successfully gone through a revolutionary advent, which is the change of government party, the outcome should be positive, at least this could be a cure in corruption and somehow slow down the rapid inflation rate in Malaysia. Even though it is a change of governing parties, people are less likely to afraid governing style by the government, this is because the president of the new governing parties is Tun Mahathir, a very experienced man that once hold the records of 22 two consecutive years as the Prime Minister  of Malaysia between year 1989 and 2004.  Therefore, the general sales of most product including Mister Potatoes in the market are likely to be steady.

1.2.2 Economic

As for the Economic, Malaysia’s main attraction as a location for business is its vibrant economy. Economic factors comprise many factors e.g. stability, income status, income parity, purchasing powers, unemployment rates, exchange rate, interest rates etc. there is no doubt that these factors plays a vital role in decision making for an industry or a business.  Over the last 10 years, economic growth has averaged 7% per year.  This rate of growth has led to a large increase in consumer incomes and therefore demand, which has attracted retailers to enter Malaysia Market. These companies includes IKEA, Familymart, and also one of the greatest rival of Mister Potatoes- LAY’S.  Malaysian location makes it ideally placed to engage in international trade.  Exports account for 37% of Malaysia’s GDP and the country achieves a healthy current account surplus. Economic factors comprise many factors e.g. stability, income status, income parity, purchasing powers, unemployment rates, exchange rate, interest rates etc. there is no doubt that these factors plays a vital role in decision making for an industry or a business. If there is any issues that may affects Mister Potatoes, or maybe the pricing strategy of the entire Mamee Double Decker Sdn Bhd, it will be the fluctuation rate of the currency of Malaysia.

1.2.3 Social-Cultural

Continue with Social-Cultural of Malaysia.  The Malaysian population consists of three main groups: Malay, Chinese, and Indian with scale of 6: 3: 1 accordingly. This mix of populations gives Malaysia a rich and vibrant culture, and the country is seen as an example of racial harmony as the different populations have existed peacefully together for years. (UKessays, 2015)The country is predominantly Islamic in its religion but it’s only the Malay Muslims who are bound by Islamic laws; the rest of the population are free to practise their own religions. Islam is considered official religion in Malaysia and more than 50% of population is follower of Islam in Malaysia. So naturally the concept of 'Halal' plays important role in Malaysian food industry. ( (Muhammad, Isa, Kifli, 2017), To respect the religious sentiment of Muslims and to comply government rules Mamee Double Deckers does not serve any pork item. Moreover, Mamee’s products follow strict 'Halal' compliances while buying the main ingredients.

1.2.4 Technological

The Malaysia is still on its ways in technology developing to enable competition in international markets. Luckily, high levels of investment in training and education, including the creation of a number of ‘Smart Schools’, and an excellent infrastructure. A good example will be Cyberjaya, a ‘self-contained intelligent city with world-class IT infrastructure’.  It’s this level of technological support that makes Malaysia an attractive place for foreign firms to do business.  In fact, Cyberjaya is considered one of the top three destinations for business support services and outsourcing in the world. The existence of Cyberjaya shows that Malaysians are becoming more and more technology oriented. Followed with social networking, which is playing vital role in every aspect of Malaysian people's lives especially the younger generations are heavy users of internet and other IT gadgets. (Editor, 2011)