From Figure 1, it is clear that hypermarket’s own brand “Carrefour” is the lowest priced chicken nugget in the market, with price stood at about RM 7.50 per kg (Rp. 22,500/ kg). The highest price is “First Pride/FP” brand, with price stood at RM 12.50 per-kg (RM 35,000/ kg). The average price of Chicken Nugget in the market is about RM 9.00 per-kg (Rp. 27,000/kg).
At present the variety of own brand for poultry meat products are still not too many and large variations do occurs in each of the ASEAN countries. Nonetheless, as consumer’s demand for hypermarket’ own brand is very strong, especially in the time of uncertainty where price has become the main determinant, we may expect that in the near future, more products will be introduced by these hypermarkets. Those who didn’t do it yet, will jump in the bandwagon and introduce their hypermarket’s own brand in order to improve their profitability level.
All of the above will, directly and indirectly, negatively effect local poultry meat processors unless something radical being introduced by them. While poultry integrators may be in relatively better position, those independent processors are in more disadvantages. Hence, the time has come for poultry meat processors to re-evaluate their strategies on market positioning, product development and more importantly, their supply chain management and efficiency level. Increasing the range of products available in the markets, attractive packaging and competitive pricing should be done effectively. Relational transaction approach will be a very useful strategic approach as consumers feel ‘better’ and will choose products that they used to it, and more importantly products which they know they can ‘trust’. Commoditization must be avoided; otherwise market share will be at stake. Moreover, it has to be done now, not tomorrow. Forget it, and you’ll be forgotten.
Irfan Sungkar (email@example.com) is the Director and the Head of Research of Global Food Research & Advisory Sdn Bhd (GFRA), a Malaysian-based niche research and consulting company that provides market intelligence, industry research, strategic plan, market penetration strategy and consumer related research and consulting services to food, poultry meat & agri-based companies, multinational institutions and government’s agencies.