School of Business , Diploma in Business

Group Assignment

Business Communication, Semester 4

COM40603T0372

Supervisor/Teacher: Mary Morais

Table of Content

Company Profile 1

Introduction 2

Marketing Mix 4

Five Year Plan 8

Conclusion 9

Recommendation 10

Appendix 12

Reference 15

By Shamiha Khadija Saan ( 0327340)

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Company Profile

MyBurger Lab is a medium sized restaurant enterprise located in Malaysia where they make

gourmet burgers.The company was established by Cheah ChangMin and Teoh WeeKiat,

co-founders of myBurger Lab later was joined by Chin RenYi. They currently have four outlets

located in Subang and Cyberjaya. The enterprise of My Burger Lab was influenced from GBK,

In-N-Out and Grilld which is then they made their very own MyBurger Lab. Their main

objective is to make good, juicy , fresh and innovative burgers for value. The first outlet opened

up at SeaPark in July of 2012. My Burger Lab is a community based business.

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Introduction:

Small-medium sized businesses in

Malaysia is what makes its economy thrive. Majority of the small-medium sized businesses are

retail and service based that creates employment for the public which increases the countrys

GDP. In this report i will be discussing about the obstacles about MyBurger Lab faces and

recommending a solution to their problem. The aim of this report is to find a solution that will

solve their growth and sustainable problem that MyBurger Lab has been facing recently. They

are in a major need to revamp their management of the company in order to achieve growth and

sustainability. Ill be using both primary such as articles from the internet and secondary research

methods such as a personal interview with the company to conclude my report.

The current status of the company is not perfect as it seems with their low growth rate and cost

rising they seem to take a downward and staying relevant. The product they are marketing is

burgers which are a hype based product so its hard to stay relevant in the market. Many burger

restaurants or fast food joints pop up around Malaysia and the burger culture isnt strong as it is

in United States of America. Even though MyBurger Lab has its own selling point but they have

heavy competitions which makes them to reduce the prices in order to attract consumers which is

hampering their revenue. Another external obstacle they face is the governments GST and
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taxation that requires them to bump up the cost of their burgers. This makes MyBurger lab look

for substitutes without touching the quality of their burgers. MyBurger Lab is also slow on

growth compared to their popularity in Malaysia as they are taking things slowly. Some

companies choose to stay small or medium-sized to various factors as maintaining quality,

control, lower operating costs leads to increase in profit margins and lifestyle of the founders or

managers.However, there is a great opportunity for MyBurgerLab grow to be a franchise and go

multi-national or at least expand regionally referring to the SWOT Analysis opportunity section (

appendix:_). They are also based around Subang Jaya & CyberJaya only targeting mostly

students and middle-class workers when they have the potential to target families or becoming a

family resturants in higher income areas. They need to be more geographically diverse in order

to target more potential customers for their burgers so they can expand their restaurant. The

company is missing the opportunity on franchising their establishment which can make

MyBurgerLab a household name while minimizing large capital expenses while collecting fees

or royalties with every franchises under them.

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Market Mix: The Four Ps.

Product:

MyBurger Lab sells experience with their burger by differentiating it with their competitors as

they are more into selling quality gourmet burger with niche taste in their product. Their

signature Charcoal Black Buns created a brand image as most people refers the black buns

back to MyBurger Lab as the pioneers of it.

My BurgerLab also focuses on value with their

product as in they make sure you get a good

juicy burger for the price you are paying or

even better. They also use fresh ingredients and

try to make everything in-house such as their

special sauces and grinding their own patties. They also sell delicious unique side dishes and

main-food either than burger however the burgers they make are staple and most preferred in

their menu. Their packaging is simple and yet decorative with their take-away boxes to the color

scheme represents or gives MyBurger Lab an identity. The restaurant also provides other

services such as very fast free-wifi and home-delivery.

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Price:

My BurgerLab prices are affordable and in the range that everyone is able

to afford it. Compared to McDonalds its bit more expensive considering

its not doing mass production and using high quality ingredients.

My BurgerLab uses cost-plus pricing and adds value by that when they are

setting a price for their burger as you can see from the diagram(appendix 3.). They add value to

their product by the services they provide such as home-delivery fees and WIFI in their

restaurants. Cost-plus pricing is pricing strategy based on cost, its an easy method to set prices

on goods and services. The method is to add all the direct material, labor, overhead costs for the

product or service plus adding a markup percent to make a profit margin.

They also uses product-line pricing referring from their menu ( appendix:4). In product-line

pricing the method is used by retailers to divide goods into cost sectors in order to make many

levels of quality or price in the consumer psychology.

They instill the fairness and price-quality sensitivity effect where buyers perceive that the price

they pay for their burger is fair to the price they pay.Also the quality of the burger extends

because they are priced same as restaurant level foods instead like their fast food burger
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competitors McDonalds or KFC. Products with high price tags usually creates an image that

they are more quality worthy. These two concept affects the price sensitivity among the

consumers. Since Malaysia is going through a troubling economy, My BurgerLab uses

market-oriented pricing strategy where their price interrelated with the situation on the current

market state, which includes supply and demand or the pricing of the competitors burgers.

Joints: Average Price:

MCDonalds 5RM to 12RM

KFC 5RM to 9.50RM

MYBurger Lab 17RM

KGB 18RM

In comparison of price, KGB and MyBurgerLab has similar pricing tactics and belongs in the

almost alike category.

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Place

MyBurger Lab joints are located in Subang Jaya & CyberJaya where most of their target

consumers are based in. The places they choose usually meets their demographics and target

consumers. They follow a simple channel of distribution as they produce right in the kitchen and

sell it directly to the consumers. They do cover other places but mostly subang through their

home-delivery service where they use another method when distributing their product which is

producer to industrial distributor to consumers.

Promotion

MyBurger Lab doesnt really invest on advertising like its competitors ( aggressive marketing)

but rather follows the word of mouth method where they believe if they can provide a good

service or delicious meal it will catch on. This saves time and money while being effective or

efficient so in addition to that they save cost so the burgers can be more affordable or get a

higher profit margin.

However, MyBurger Lab operates various tactics to promote their products through social media

mostly about their offers, promotions and announcements. They use a multitude of

advertisements( posters and video adverts), sales promotions ( special prices and coupons),

personal selling and PR ( Corporate Social Responsibility and Engaging with consumers).

MyBurger lab uses sales promotions in form of coupons and offers through their facebook page
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and Foodpanda application. They uses these simple marketing tactics by combining various

promotions reference from appendix ( _ ) .

Five Year Plan:

In reference to my brief interview with the founder or pioneer of MyBurgerLab Chin Renyi he

had mentioned that in five years they plan to grow their enterprise. They would like to focus

more on becoming a household name like how McDonald's has become a treasure of United

States of America. If the current economy improves it will create a demand among public to eat

out so they planned to open more outlets first nationwide such as Malacca, Penang and Johor

Bahru which are mostly populated states in Malaysia. They also had mentioned that they would

like to open more stores in KL itself but also they would focus opening internationally. In

reference to one of the employees at Sunway branch of MyBurger Lab, they mentioned that in

the future they are planning to add more items to the menu in order to diversify such as last year

they added the burger Viviennes Husband that was aimed for catering to vegetarians.
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Conclusion

In summary, the problem that MyBurgerLab is facing is costing and growth.Business

Improvements could be made but the timescale and effort would take much longer to implement

them. The investment for rapid growth of MyBurger Lab is considerably high with many risks

such as international barriers, quality control and management. The possible scenario could be

the quality of their burger drops significantly and the cost of training new managers could be a

waste of energy. They are also facing issue with cost of making their burgers were they want to

keep the prices affordable with the sudden GST plus the economical crisis in Malaysia its

becoming almost impossible to keep their burgers in the same quality and price. MyBurger Lab

is already labelled as a gourmet burger store so the prices are expected to be high but not too

high according to their target consumer. The sudden hike in taxation has led many restaurants to

be aggressively compete by either lowering their price , finding substitutes and complements to

raise the revenue. Since Burger the main product MyBurger Lab is selling is a more of a hype

based item also a delicacy not a regular meal food such as Nasi Lemak or Mee Goreng in

Malaysia. MyBurger Lab should think of investment and cutting cost as a fuel to growing their

enterprise.
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Recommendation:

From my research i have a few recommendation to improve the problem MyBurger Lab is

facing. The problem they are facing is keeping the price and quality in control with the ever

increasing cost with that the another problem they are facing is growth. In summary the company

is having trouble with cost and sustainability. I recommend that MyBurger Lab should cut cost

and grow strategically as in use cost management as an advantage by thinking of it as an

investment. Since they use a cost-based pricing strategy its highly recommended to cut cost in

order to achieve a higher profit margin.Instead of cutting cost they can allocate their resources in

a more manageable way. Such as they can hire students at a lower salary in exchange of

experience or certificate of completion. Their restaurant lacks technology advancement so they

should try to get few things automated such as waiters can be replaced by ipads or self ordering

station which can take the cashier out of the picture. Automating tasks which are very repetitive

can save time and make the enterprise more productive after all its called fast food. Overstaffing

can be expensive so this recommendation should be higly considered. Also the company should

consider their potential as in try to branch out to target a new class of consumer such as instead

of sticking to students and office worker individuals they should focus on families. Opening

restaurants in high income family residential areas such as Bangsar, Ampang and Mont Kiara

can replace the McDonalds of that area. In areas where they currently opened, MyBurgerLab is

considered a delicacy as in its not a product that you can afford all the time like Nasi Lemak or

Nasi Kandar. Opening new outlets in Bangsar and Mont Kiara will create a demand since those

areas are hyped up places. They can add more complement goods to their menu such as side
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dishes and drinks. This will add more to the sales and raise the revenue. They can also do daily

catering like DahMakan and strategically plan out the delivery routes to cut cost. They need to

add more food to their menu in order to stay relevant since they are persistent on not pressuring

on advertisement. Another reason they should add new food to the menu because an effective

product line pricing means to have good amount of price gaps between product hence they can

target all sort of consumers. They can open more outlets and monitor them by softwares. To

source the funding of MyBurger Labs growth is to use the Franchise method which will take

them a while in measurement of time.

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Appendix:

1.

Strength: Weakness:

- Gourmet - Slow growth rate

- Daily Grinded home-made Beef - Only based around/nearby Subang and

- Black Charcoal Bun (differentiation) Cyberjaya ( Location)

- Hype based product

Opportunity: Threats:

- Go international - Competitor

- Franchise - Burger Culture

2.
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In-Store Promotion:

Wall posters, photo taking booths, concepts and designs.

Merchandises for sale and catering.

Local Store Promoting:

Freebies of free t-shirts during events and brochures.

Local media:

Youtube interviews, local magazines, webpages, university features and newspapers.

3.
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4.
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Reference

1.En.wikipedia.org. (2017). Pricing strategies. [online] Available at:

https://en.wikipedia.org/wiki/Pricing_strategies [Accessed 24 May 2017].

2.Mankins, M. (2017). Stop Focusing on Profitability and Go for Growth. [online] Harvard
Business Review. Available at:
https://hbr.org/2017/05/stop-focusing-on-profitability-and-go-for-growth [Accessed 26 May
2017].

3.Teoh, W. (2017). Wee Kiat Teoh. [online] Wee Kiat Teoh. Available at: http://weekiatteoh.com/
[Accessed 26 May 2017].