SAUDI ARABIA

GROUP MEMBERS :
1. NOR ADDIERA YEOZIERA BINTI MOHD BAKHTIAR 62215118527
2.MOHAMMAD AZRI BIN MOHAMAD AZMI 62215217083
3. NOR AMIRUL AZWAN BIN NOR AZMAN 62215118114

PREPARE FOR: DR. MOHD HISHAM HASHIM

DATE SUBMISION: 17th JULY 2019

 1. Executive Summary

Figure 1: Logo of the Adabi

Adabi has become a prominent household brand in the food manufacturing industry
in Malaysia. With the existing products of more than 100 types under 10 main
categories which is powered spice mix, processed paste, flour mix, sauce, canned
food and beverage.

1.1 Company Background

In the beginning, the first batch of Adabi products was created in 1984 at a small
factory in Batu Caves Light Industrial Area.

Then in 1990 and 1992 because of the sudden rise of demand for Adabi products in
the market, Adabi open another 2 more in factories in Taman Ehsan Light Industrial
Area.

The current situation for Adabi Consumer Industry Sdn Bhd. (ACISB) is another
sudden rise in consumer demand, and they open another factory in Rawang
Integrated Industrial Park in a 4 acre land. Its a big factory where all the company’s
production sites, warehouses, corporate office as well as administrative facilities
were placed there.
 1.2 Company Ownership

This company is 100% owned by Adabi Consumer Industries Sdn Bhd.

The lists of join venture’s company of Abadi Consumer Industries Sdn. Bhd.

1. Baktisan Pertama Sdn Bhd – Sungai Petani, Kedah.

2. Adabi Penang Distribution Sdn. Bhd. – Pulau Pinang.

3. Berkat Serbaguna Sdn. Bhd. – Ipoh, Perak.

4. Bekal Baru Sdn. Bdn. – Selayang, Selangor.

5. Alzas Edar Sdn. Bhd. – Kepong, Selangor.

6. Adabi Consumer Industries HTO Sdn. Bhd – Batu Caves, Selangor.

7. Adabi NS Trading Sdn. Bhd. – Senawang, Negeri Sembilan.

8. Nyala Satria Sdn. Bhd. – Muar, Johor.

9. Produk Optima Sdn. Bhd. – Johor Bahru, Johor.

10. Amalan Sanjung Sdn. Bhd. – Kota Bharu, Kuala Trengganu.

11. Adabi Distribution Sdn. Bhd – Mentakap, Pahang.

12. Adabi Sabah Distribution Sdn. Bhd – Kota Kinabalu.

13. Stasuria Enterprise Sdn. Bhd. – Kuching, Miri, Serawak.

1.3 Area of Operation

1. Target Market: We intend to serve the entire Saudi Arabia.

The whole country map of Saudi Arabia

The google map of Riyadh, Saudi Arabia.

2. Google Street of Adabi Consumer Industries Sdn. Bhd. Company position in Saudi
Arabia.

The street of King Abdullah

3. Adabi Consumer Industries Sdn. Bhd. company address in Google Map

Al Waseel Shopping Center 4728 King Abdullah Ibn Abdul Aziz Rd, Al Hamra, Riyadh
13216 6926, Saudi Arabia.
1.4 Product

Detail description of Adab Consumer Industries Sdn.Bhd. company

1. Adabi commercial will make the appearance as less as possible and follow Sharia
Law.

2. Adabi advertising will follow Saudi's culture such as family cook together in the
weekend as a trend.

3. Adabi will obey all the advertising and commercial law & also copy right law.

1.5 Company’s Value Proposition

What Adabi will offer to the customers.

1. Variety of choices for each type of Adabi products ( especially the one that you
cant found in Saudi)

2. Saudi 's products will be cheaper than Adabi & Adabi will be more cheaper than
other export products

3. Advertising & commercial follow the Saudi culture & religion culture

1.6 Vision, Mission & Objectives

VISION

To become the 1st Largest Packed Food Manufacturer in Saudi Arabia by 2020.

MISSION

To get more publicity for promotion in Saudi Arabia

OBJECTIVES

To ensure that Saudi Arabia people can eat good quality products and always
improve the products quality from time to time
2. Situational analysis

2.1 Industrial outlook

For the Kingdom of Saudi Arabia (KSA), 2017 demonstrated to be a momentous year, as the
arrangement for the route forward was detailed. It is anticipated that 2018 would stamp the
beginning of the execution and usage process for the significant changes spread out in 2017.

The objective to accomplish the monetary parity has been pushed to 2023 from 2020, while
appropriation justification will proceed with this year. The legislature had expanded costs of
certain energizes as of December 31, 2017. It might declare extra value climbs sooner rather
than later to stay on track with its financial guide. By revealing the biggest spending plan in
the Kingdom's history, the administration has plainly shown its forceful extension plans.
Gross domestic product development hindered in 2017, to a great extent driven by a
decrease in the oil division's commitment. Be that as it may, non-oil division is by all
accounts the salvage entryway as the GDP development in the not so distant future will
progressively rely upon it, particularly with the presentation of a few new expenses and
demands.

Consumer Purchasing power

The 2018 Middle East Sentiment Survey by McKinsey and Company featured the quick move
in the practices of Arab buyers, who have turned out to be more cost-cognizant, and less
brand-steadfast. The report demonstrated that more than 55 percent of buyers in various
Middle Eastern markets, particularly in Saudi Arabia, look for chances to spare through
numerous imaginative ways and strategies to bring down their spending.

The review was propelled a week ago at the Retail Leaders Circle in Dubai by Peter Breuer
and Gemma D'Auria from McKinsey and Company. The study found that just about 35
percent of purchasers presently hope to purchase their favored brands at any expense as
opposed to evaluating elective brands at less expensive costs. This is down from right
around 45 percent in April 2017. The study likewise uncovered that 78 percent of customers
in the locale changed their purchasing propensities to set aside cash. Multi-channel
customers have cut spending in all channels and progressively support markdown
configurations and chain markets.
LEVEL OF INFLATION

Saudi Arabia's purchaser costs fell 1.9 percent year-on-year in April 2019, after a 2.1 percent
decrease in the earlier month. It was the fourth back to back month of emptying, as the
effect of VAT execution in 2018 blurred. Costs dropped less for lodging and utilities (- 7.8
percent from - 8.1 percent in March); decorations and family unit hardware (- 0.3 percent
from - 0.4 percent); and apparel and footwear (- 1.0 percent from - 1.5 percent). Also, cost
of transport bounced back (0.3 percent from - 0.9 percent). Then again, costs hindered for
nourishment and refreshments (1.0 percent from 1.2 percent) and eateries and inns (1.3
percent from 1.5 percent). Additionally, cost of correspondence diminished at a quicker pace
(- 1.2 percent from - 1.1 percent). On a month to month premise, buyer costs were
unaltered, subsequent to falling 0.1 percent in the earlier month. Swelling Rate in Saudi
Arabia arrived at the midpoint of 2.55 percent from 2000 until 2019, achieving an untouched
high of 11.10 percent in July of 2008 and a record low of - 2.20 percent in February of 2019.
SAUDI ARABIA INTEREST RATE

The benchmark loan cost in Saudi Arabia was last recorded at 3 percent. Loan fee in Saudi
Arabia found the middle value of 3.68 percent from 1992 until 2019, achieving an untouched
high of 7 percent in May of 2000 and a record low of 1.50 percent in March of 2004.

In Saudi Arabia the financing costs choices are taken by the Saudi Arabian Monetary Agency
(SAMA). National bank authority financing cost is the Official Repo Rate (ORR). This page
gives the most recent announced an incentive to - Saudi Arabia Interest Rate - in addition to
past discharges, verifiable high and low, transient conjecture and long haul expectation,
monetary logbook, review accord and news. Saudi Arabia Interest Rate - real information,
recorded outline and schedule of discharges - was keep going refreshed on June of 2019.
MARKET SEGMENTATION

1. DEMOGRAPHIC

a) GENDER

- All gender but especially to cooker, housewife and restaurant

b) AGE

- All age. Its suitable all ages including child age.

Diagram show population of Saudi Arabia

The complete populace in Saudi Arabia was evaluated at 33.4 million individuals in 2018, as
per the most recent statistics figures. Thinking back, in the time of 1960, Saudi Arabia had a
populace of 4.0 million individuals.
2. GEOGRAPHIC
The Kingdom of Saudi Arabia lies at the furthermost piece of southwestern Asia. It is
circumscribed by the Arabian Gulf, United Arab Emirates and Qatar in the east Red Sea in
the west Kuwait, Iraq and Jordan in the north Yemen and Oman in the south. The Kingdom of
Saudi Arabia occupies about four-fifths of the Arab Peninsula, with a total area of around
2,000,000 square kilometers. 

The geographic what adabi find is focusly on Jeddah, Arab Saudi which the main place that many
people at that place. It causes Jeddah is capital city of arab Saudi, so many tourist will come there
and known the adabi product.

3. BEHAVIOUR
As we know, Saudi arabia citizen, they love put some spices into their food. In Saudi Arabia,
as in numerous different nations, the run of the mill suppers fluctuate contingent upon the
district you are visiting. A portion of the customary dishes of Saudi Arabia are; Kabsa, Quran,
Mtaziz, Motabbaq, Masoob, Mandi, Arikah, Assidah, Haneedh, among numerous others. We
certainly suggest attempting the awesome Middle Eastern food while remaining at our
lodging in Jeddah.

These neighborhood dishes have sound healthy benefits, giving enough solidarity to work.
The fundamental components making most out of the Saudi dishes are basically wheat, rice,
sheep, chicken, fava beans, yogurt and dates.

MARKET NEED
The product is spices and ad-taste food. Suitable for the age 3-80 years old because they are
suitable for any age and can be consume easily. The price is also reasonable and affordable.
Although, they really need spices, so we from adabi try enter market to arab Saudi.

MARKET TREND
The spices industry in the Saudi Arabia have slowed down since 2015 while some of
production such as sugar and meat has witnessed a significant decline. The domestic food
and beverage sector in Saudi Arabia has become increasingly relying on imports as
consumers in Saudi Arabia are increasingly looking at foreign brands as a source of quality
and trustworthy.
MARKET GROWTH EXPACTATION (Short term 6-12 month)

INTERMEDIATE (1-5 years)

LONG TERM (5-10 years)
SWOT analysis

STRENGTH WEAKNESS

• 1. We adabi have good 1.Adabi didn’t have any trust from any
feedback from Malaysia. foreign company
Almost 80% citizen confident
our product.
2. Poor supplier chain
• 2. have strength of the
product in terms of taste is
distinctive and nutritious.

OPPORTUNITY THREAT

• 1. Produce Halal product • 1. Changes in consumer tastes

• 2. Growth high market • 2. Competition from others

companies that produce food-based
• 3. Can be export to foreign
products
country
a) External Factor Evaluation(EFE)Matrix

b) Internal Factor Evaluation(IFE)Matrix

SFAS ( Strategic Factor Analysis)

3.0. Marketing strategy:

3.1. Mission and objective of marketing strategy

Companies do not have a single strategy. At any times they are need executing a range of
different strategies. A company might simultaneously execute on strategies to enter a new
market, grow market share in an existing market, and improve organizational efficiency.
Strategy at the corporate level will guide the development of strategies for each function,
including marketing. Business strategy must identify a plan that will use the company’s
resources most effectively to achieve its mission and goals. Likewise, the marketing strategy
must identify a plan that will use the marketing function’s resources and expertise most
effectively to achieve its mission and goals. In marketing, there are many ways on how a
business can enter the International Market. We are need a strong market entry strategy in
order to penetrate the foreign market and to sustain locally so we are using the strategy of
importing spice abroad as it works well for starting company.

3.1.1. Mission

Providing consumers with products of the highest quality is assured through strictest
standards of requirements set on the processes and the quality of the material used.
3.1.2. Objectives

Adabi Consumer Industries Sdn Bhd. (ACISB) is the parent company and the main player of
Adabi Group. It inspires produces and markets products under the brand name of Adabi.
ACISB is managed and run professionally, fully product-driven and gives equal emphasis to
both Research & Development as well as Sales & Marketing.

It has a strong and creative pool of research personnel, all of whom are dedicated to
creating new, innovative food products. The rapid growth of the company, from a staff of 25
and annual sales of RM2 million in 1984, to its current position of more than 552 personnel
and an annual sales of RM200 million can be attributed to the success of the range of new
products it has introduced through the decades.

New products introductions are effectively supported by dynamic sales and marketing
management teams and continuous mass media promotion of the Adabi brand. Today,
Adabi’s brand awareness stands at par with other famous international food product brands
sold in Malaysia

ACISB’s continuous commitment in providing consumers with products of the highest quality
is assured through strictest standards of requirements set on the processes and the quality
of the material used. Therefore, all Adabi products are guaranteed 100% halal, hygienic,
wholesome and healthy.

In recognition of this commitment to quality, Adabi has received numerous awards and
accolades. In fact, Adabi products were the first to receive Halal certification from the
Islamic Affairs Division of the Prime Minister’s Department. Among other awards received
are Superbrand Status (Reader’s Digest Malaysia) and International Food & Beverage Award
(New Millennium Award – Paris)

Today, ADABI has become a prominent household brand in the food manufacturing
business. With the existing products of more than 100 types under 10 main categories –
Powdered Spice Mix, Processed Paste, Flour Mix, Sauce, Canned Food and Beverage, Adabi
will continuously strive to identify and develop products to cater households and market
needs.
3.2. Target market strategy

Concentrated Marketing is a strategy whereby a product is developed and marketed for a

very well defined and specific segment of the consumer population. Concentrated marketing
is particularly effective for small companies with limited resources because it enables the
company to achieve a strong market position in the specific market segment it serves
without mass production, mass distribution, or mass advertising. As we know Adabi is a
product type for household, so they target market are limited to a few consumers. Some
features of concentrated marketing are a concentrated marketing approach aims at a
narrow, specific consumer group through one specialized marketing plan catering to the
needs of that segment and Concentrated marketing is popular for small firms for these
reasons first, mass production, mass distribution, and mass advertising are not necessary.
You can create a niche advertising strategy so that you reach your target group and the
strategy gives result. Second, it can succeed with limited resources and abilities by
concentrating efforts – because a small firm has lesser resources, it cannot expand a lot.
Hence this type of marketing actual work for them.

3.2.1. Product strategy

Adabi portfolio has a wide range of product such as curry and soup product, sauce product,
paste product, flour product and instant product. The brand is trusted for its high quality and
food safety standards, which are achieved through strict verification procedures. Inspections
are carried out on raw materials, work-in-progress, as well as on the end products, which are
regularly sent to accredited external laboratories for chemical and microbiological tests by
Adabi. The company demonstrates an unwavering commitment toward implementing the
best technology and systems, in order to achieve the highest product quality. This has led to
investments in equipment and facilities that range from fully integrated conveyer systems,
to state-of the art warehouses Adabi.
3.2.2. Adabi product

The company’s positioning is reflected in all their activities, both internal and external. This
can be seen from products, work premises and right down to corporate culture. With a
strong belief that they are set apart from the rest, this differentiation has been the
cornerstone of their success. As a growing household name, the Adabi brand is on a
continuous challenge to provide and consistently deliver the highest quality products to the
Saudi Arabic consumers. Despite its established brand, the company is still continuously
trying to grow its market share and are applying the latest technological advancements in
order to produce the best kind of food products. They are still riding a moving train towards
local and global success. Adabi continuous commitment in providing consumers with
products of the highest quality is assured through strictest standards of requirements set on
the processes and the quality of the material used. Therefore, all Adabi products are
guaranteed 100% halal, hygienic, wholesome and healthy.

3.2.3. Price

Perceive value pricing where is that value which customers are willing to pay for a product or
service based on their perception about the product. Perceived value pricing is not based on
the cost of the product, but it is the value which the customer thinks that he/she is deriving
from consuming a product or a service. Adabi set to ensure the customers get the product
same value with what they pay.

The Mark-up pricing is the method of adding a certain percentage of a markup to the cost of
the product to determine the selling price. The benefit of using the mark-up pricing is that it
is very simple to calculate and understand. Also, the same type of pricing used by all the
firms in the industry, the price tends to be similar and hence, the price competition reduces
in the market. Adabi use mark up price to gain small profit as they priority is to delivery
product at affordable price for all they customer. They set the price of the product based on
the features of the product and purchasing power of the customer.
3.2.4. Promotion

Adabi promote themselves by involving with community surrounding by join charity

movement. Example from NSTP- Daily News (Perak): Cooking and daily necessities such as
sardine Adabi and canned food are provided to 500 families at Pasir Salak, Batu Gajah and
Perak Utara areas. Adabi also involve activity with orphans by sending they staff help
cleaning and coking and contribute adabi product also money for them to sustain.

3.4. Product life cycle

As same with other company Adabi also has they own cycle. During product development
Adabi thinking which product suitable with people of Arabic country. During introduction
Adabi use promotion to promote themselves as they way of entry they will sell they product
by mark up pricing so the product not too expensive. During growth Adabi will continue they
current strategy until decline where they may introduce new product and new packaging.

3.4.1. Product innovation strategy

Adabi’s differentiated their products based on ingredients and tastes. Nowadays, customers
are aware about the taste of quality food that they buy worth the money or not. Most
customers believe that home cooking is the best for them because they can estimate what
kind of ingredient they want to use. Because too much flavoring for example in outside food
will makes them feel a bit distressed which they believe that may can affect their health. But
Adabi are guaranteed 100% percent Halal, hygienic, wholesome, and healthy. To avoid that,
Adabi’s decide to produce their product by minimize amount of permitted flavoring and
good cooking-oil inside, special mixed spices which can provide special quality in
consideration for the customers health. Adabi has seemed that considers of its customers’
needs because this paste contains all in one flavor. Adabi also introduce new line of product
as a way introducing new taste and cooking to customer.
3.4.2. Product packaging

Adabi packaging is different by kind of product as they aim product can keep for long time
and no hassle. Adabi also introduce different type of packaging from small to big so the
product price can be range by type of packaging and ease the mind of customer that they
may want buy in small size or big size so the product will not spoil if the customer no use it
most time. Adabi has product advantages and differences in customers’ minds. For instant,
most people aware that Adabi is a household name in every home in Malaysia. Because of
that they got an idea to create the Logo which is represented by the established Royal Malay
Palace of Malacca in the sixteenth decade. The Malay palace denotes the fact that Adabi
products have a very well-built heritage, similar with the quality food that was served to the
royalties in the past.

3.5. Competition

Any person or entity which a rival against another is. In business, a company in the same
industry or a similar industry which offers a similar product or service. The presence of one
or more competitors can reduce the prices of goods and services as the companies attempt
to gain a larger market share. Competition also requires companies to become more
efficient in order to reduce costs.
3.5.1. Competitive analysis

Competative Attributes
Service
Product Product (Before & Product Promotion &
Company Price Packaging Quality After) Positioning Advertising
ADABI 4 3 4 3 4 4
PALACE OF SPICE 3 4 3 3 3 5
JOBAR TRADING 3 3 4 4 2 2

Adabi conform with two company such as Palace of Spice and Jobar Trading that has be
there many years. But, Adabi has their own advantage in price, product quality and product
positioning that can help Adabi sustain themselves at Saudi Arabic. To success Adabi need
make sure competitions are part of your overall marketing strategy. Competitions need to
be incorporated into your marketing strategy not just tacked on the side as an afterthought.
Target the right customers. Target the right customers for your competitions in order to
achieve the maximum result. Broaden your communications medium Multiple mechanisms
such as Facebook, Twitter, phone, SMS, email, online website and post mail.
3.6. Channel strategy

A channel strategy is a vendor's plan for moving a product or a service through the chain of
commerce to the end customer. Direct sales are the simplest approach is the direct channel
in which the vendor sells directly to the customer. The vendor may maintain its own sales
force to close deals with customers or sell its products or services through an e-commerce
website. Direct selling via catalogue represents another possibility, although this business
has been largely subsumed by e-commerce. Adabi also may use indirect sales where vendors
can also pursue sales via indirect channels involving one or more intermediaries. Indirect
sales models include retail, which can involve selling through a physical store or an online e-
tailing company. In addition, vendors can sell through value added reseller (VAR), companies
that bundle a vendor's product or service with other products and services to provide an
overarching solution for customers. The vendor-to-VAR-to-customer channel is sometimes
referred to as a one-tier distribution channel strategy. In two-tier distribution, the vendor
sells to a distributor, which, in turn, provides the vendor's products and services to a
network of VARs.

3.7. Marketing research

The process of gathering, analyzing and interpreting information about a market, about a
product or service to be offered for sale in that market, and about the past, present and
potential customers for the product or service. We use online survey as our medium to
research about satisfaction consumers toward ADABI. Food Expo as our ground to introduce
our product to them.
FINANCIAL STATEMENT ADABI

INPUT

Raw and cost

Profit and loss

CASH FLOW
METRICS
5.0 Control

5.1 Marketing Organization

A. Overall Company (The Company Overall Organizational Chart)

Nor Addiera Yeoziera

President

Mohd Amirul Azwan

Chairman

Mohd Azri

Corporate Affairs Director

Nor Aida Farzana

Chief Executive Officer

B. The Marketing Department or Section or Unit Organizational Chart (Who is the
head and people involved)

Akhtiera Yeoziera
Head of Advertising

Mohd Bakhtiar
Head of Distribution

Rahmah Rashid
Head of Raw Material

Akhtiera Yeoziera
Head of Planning

Effah Syamiera
Head of Customer Service

Syahriez Albar
Head of Monitor

Cinta Ammara
Head of Sales

Aizzat Emmir
Head of Finance
C. Human Resource Deployment (where are the marketing people positioned in the
organization? example sale department, distribution and others and describe each of
the functions they do)

Marketing people positioned

Sales Department: Help the sales people on how to sell products & understand more
about the products

Corporate & Training Department: To train staff about the marketing process

Distribution Department: To educate

 5.2 Implementation Plan

I Tasks Resources (Persons) Budget 

D Allocated

1 Advertising, Promotion & Oth Akthiera Yeoziera
er Media Head of Advertising 14,000

2 Distribution Channel Network Mohd Bakhtiar 2,600

Head of Distribution

3 Material procurement Ramah Rashid 20,000

Head of Raw Material

4 Marketing Staff Nor Aniera 14,000

Planning & Training Head of Planning

5 Customer Relationship Effah Syamiera 20,000

Management Head of Customer Service

6 Control & Monitoring Syahriez Albar 1,700

Head of Monitor

7 After Sale Service Cinta Ammara 10,000

Head of Sales

8 Marketing Budget &  Aizzat Emmir 5,000

Financial Head of Finance

Total = 87,300
5.3 Contingency Planning

Best Case Senario

Worst Case Senario

Product Prices in Saudi Arabia

Chicken and Beef Curry price in Saudi Arabia

Chicken & Beef Curry

Price (Riyadh)

Small: 2 Riyadh
Medium: 3.50 Riyadh
Large: Riyadh