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Case Study Company Hup Seng Perusahaan Makanan Marketing Essay

Hup Seng Perusahaan Makanan (M) Sdn Bhd value proposition is within producing Cap Ping Pong Cream Crackers. They have been in the biscuit creation industry since 1958 and said to be always a leading biscuit producer in Malaysia. Currently their business activities spans across Asia, Africa, Oceania, European countries and THE UNITED STATES. Since getting into the voyage, Hup Seng Perusahaan Makanan (M) Sdn Bhd has received numerous awards in terms of food quality and food cleanliness which really helps to build a strong system of self-assurance among the customers. Among the accolades also include the HALAL qualification which allows their biscuit products to focus on the Islamic Malay society throughout its business activities.

Their business ventures are conducted via Business to Business (B2B) activities. Their key customers are wholesalers and sellers which could absorb in a sizable volume with vast distribution influence in the particular market. The intent is so that, the consistency of the circulation within the prospective market are constant and the purchase price are reduced to as minimal as easy for the finish consumers. As Trond and Kjell (2009) highlights, "Value-creation in orders is best handled by seeking common transparency, adaptations, appropriate logistical planning, and the useful flow and control of information between parties". Hup Seng target market generally speaking is of those in the lower and middle class group. However, over the years, the concentrate has simply been keeping the prevailing consumer base rather than a whole lot on creating new users.

Consumer's Profile Table



Shopping Objectives

Bulk purchase for regular family supply

Convenience shopping to top-up supply

Consumer's Profile

Loyal low income great buy hunters

Loyal medium income looking for best value & convenience

Age Group

10 - 60 years old

10 - 60 years old

Ethnic Group

Malay / Chinese / Others

Malay / Chinese / Others

Household Income

RM 1500 & below

RM 1500 & above

Basket Size

RM 100 & below

RM 100 & above

Frequency of Visit

Once Weekly

Twice Weekly

Price Strategy

Low Price and Great Value

Best Value for Money

Table 1 Consumer's Profile Table

Source: Personal Communication


Hup Seng Perusahaan Makanan (M) Sdn Bhd shortage in producing new users over time. Also to add sodium to damage, the product packaging design for all their product line has not change over the years. Even if the design has altered, it has not been noticeable enough to catch the attention of the younger generation of teens and mums. Furthermore, their years of success in functional packaging, may have also been an obstacle to allow them to reach out to a more recent market. Their cream cracker biscuit is definitely packed in either a huge tin box or a large plastic load up. In terms of convenience, Hup Seng still has much to explore.

The reason the writer decided to examine Hup Seng Perusahaan Makanan (M) Sdn Bhd is basically because despite relying only on existing customer foundation and non-differentiated design over the years, the company is still stable and remain competitive on the market. Hence, the writer strongly feels that the business must still offer value to its consumers and made a decision to check out the strategic options that are being applied within the business. To price from Vincent (2004), "Value proposition emerges from the identified market gaps found out during opportunity scoping".

Figure 1 Strategic Options

Source: David

Based on the tactical options in physique 1, in the author's judgment, Hup Seng Perusahaan Makanan (M) Sdn Bhd matches the criteria for at least 6 from the 11 strategic options. The 6 proper options include: [1] Product Attribute Benefits; [2] Niche market Specialist; [3] Value; [4] Quality; [5] Brand Familiarity; and [6] Emotional / Self Expressive Benefits. The facts of the following strategic options will be duly talked about in this record.

Product Feature Benefits

Hup Seng's Cover TABLE TENNIS Cream Crackers has been known because of its richness in taste when consuming it on its own especially among the younger kids and the elderly adults. There has also been a recognised eating culture among the list of culture to dunk the cream cracker into a cup of coffee and then eat it during breakfast or tea time. The tastes has been accepted and accepted as a wholesome breakfast time diet generally one of the consumers.

Niche Specialist

Hup Seng Perusahaan Makanan (M) Sdn Bhd concentrates much on the one part of the product line which is the Cover TABLE TENNIS Cream Crackers. The Cream Crackers are practically everywhere in virtually any typical restaurant which many older folks frequent. In fact, their presences are very strong in small unbiased shops which low income group commonly expenses their daily household products. Their enthusiasm for the business enterprise is so that the cream crackers are available to all.


The Cap TABLE TENNIS Cream Crackers often called the 'any men's food' has situated itself all of this years so that it is able to cater to the lower and medium income group which is the largest inhabitants in the market. They have successfully created an inexpensive culture among the consumers and effectively managing their prices over time with not much obvious increase despite the rise in recycleables. Robert and Graig (1997) discussed that, "Perceived customer value is the entire benefit produced from the product, nevertheless the customer identifies it, at the purchase price the client is ready to pay". Therefore, Hup Seng is constantly on the provide confidence among the consumers ensuring that they can always have the best for value purchases.


Many consumers of crackers like Cap TABLE TENNIS Cream Crackers since it does not crumble easily even though it is dunk in the espresso, it does not break off till nibbled off. The saltish crunchy in the mouth area is construe by the consumer as a good quality cracker which affordability. Mark (2008) state governments that, "it is essential that you are able to mention how your product or service is exclusively position to provide the customer the complete outcome they are seeking to achieve with your product or service".

Brand Familiarity

Hup Seng's Cover TABLE TENNIS Cream Crackers has been a familiar brand among older people as the best match when creating a casual caffeine drink with relatives and buddies. The knowing of the brand is strong one of the older years whom attended accustomed to its taste. In addition, the brand Cap TABLE TENNIS has been set up over the years and has gained reputation as an adult brand. Therefore, there exists a strong foundation of loyal people that provides Hup Seng with competitive gain. According to Dennis (1998), "Ultimately, customers that feel good about the brand and feel they have a say in the delivery of the brand experience become advocates for the brand".

Emotional / Self Expressive

The mental benefits stemmed one of the faithful consumers by Hup Seng are designed through experience of indulging the Cap TABLE TENNIS Cream Crackers over time. It offers consumers with a wholesome and warmth feeling when eating the cream crackers with relatives and buddies. The pleasurable and satisfaction feel while eating the cream cracker is the psychological benefits that Hup Seng has regularly been targeting.

The author firmly believes that the current strategic options are still manageable to meet the existing faithful customer platform. However, to be able to reach out to younger generations, a few of the current strategic options can be further explored to improve its competitive edge as a ecological strategy for Hup Seng. The author will detail the value of Hup Seng using SWOT examination in further in the article (make reference to appendices).


Based on the author's critical analysis, the author firmly believes that despite Hup Seng Perusahaan Makanan (M) Sdn Bhd has been neglectful in their creativity in attracting services or having a solid branding among the newer generations, they have been consistently targeted in protecting their existing customer founded whom appreciated their fundamental offering such as low value with good quality. In the process of maintaining and meeting the prevailing consumer needs, they are very mindful in differing their designs or repositioning their brands. However, to remain competitive in the foreseeable future market, in the author's thoughts and opinions, Hup Seng could have a vivid move by changing designs progressively and rebranding themselves without fear of dropping their current faithful consumers. As Lyndon & Sally (1998) points out, " As the perspectives on what constitutes a nice-looking market are recognized to vary, the linkage between market appeal and business success is more popular".

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