Chris's FYP

5. Industry & Market Place

5.1 The industry

5.1.1 Definition of the Industry
The industry of food & beverage is based on manufacturing & processing food materials, packaging & distributing them. All these products are for human consumption & vary here in Malaysia between “Halal” & “None Hala” food & beverage.

5.1.2 Shape of the Industry
Malaysia’s Food industry is as diverse as the multi-cultures of Malaysia, with a wide range of processed food with Asian tastes. The food processing industry is predominantly Malaysia-owned. However, the food industry is the life of human industry, is one of the most ancient and timeless evergreen industry. With the global economic development and scientific and technological progress, the world's food industry has made great development. Although the new industries are emerging, but the food manufacturing industry is still the world's largest industry.
The level of modern food industry has become reflected in the level and quality of life of an important symbol of national development But In the past half-century, the food and beverage industry has blossomed from a collection of mom-and-pop operations to a trillion-dollar powerhouse led by huge international corporations. Familiar names like Coca-Cola, Starbucks and McDonald's can be found in every corner of the globe. The overarching theme dominating the food and beverage industry is exploding global demand and rapidly rising food prices. The breakneck economic growth of countries such as China, India, Brazil and Vietnam gives billions of people the ability indulge in ways previously enjoyed only by those in developed nations. A massive influx of consumers onto the global food market has resulted in a rapid and sustained increase in food prices, stoking global inflation.
Social stability, rising living standards, safety, health, nutrition, substantial growth in demand for food will continue to promote the rapid development of Malaysia's food manufacturing. Food as a necessity by our government's attention; in order to promote the health food industry, health, stability, development, food manufacturing for different countries developed different policies and measures to ensure the long-term health sector development. Therefore, the next few years, the food manufacturing industry in Malaysia will be even stronger.

5.1.3 Development of the Industry
Baking bread industry trends for the species will show a diversity of fresh, fast, high-fiber, low-fat nutritional cereal grains flour baked goods business opportunities. Developed based raw materials, food additives, processing equipment, packaging materials, packaging machinery has become highly standardized, serial, professionalism; advanced detection instruments, complete quality control system, the majority of enterprises passed the ISO9000 quality certification system, is the bakery industry has been the most reliable product quality assurance.

Since 2004, the bakery industry has been responding to changes such as consumers’ preference for convenience products and health food products. The market is expected to grow at a steady rate of 8% from 2010. New analysis from Frost & Sullivan called The Trend Analysis of Ingredients Applications in Bakery Industry, finds that the market earned revenues of over $161.4 million in 2007 and estimates this to reach $278.1 million in 2014.

The food industry is riding on a health wave; an increase in consumer awareness about health concerns has led to most of the bakery products being augmented with health benefits from fiber and whole grains. However, the addition of whole wheat and fibers disrupts the gluten network, which could lead to processing difficulties, changing organoleptic properties and causing quality problems.

5.2 The Marketplace
5.2.1 Current Condition of the Marketplace
The market of bakery industry is a fast growing industry in Malaysia this few years. The market of the bakery products is extremely competitive, which there are more brand risen up in the market. Even the RT Pastry is established in 2003 but the target audience is almost the same with other competitor, no matter is well-known brands or new brands.
Since RT Pastry is still weak in advertisement, it should come up with the strategies in marketing/advertising such as promoting their variety of the products to attract consumers and creates loyalty in consumers.

5.2.2 Changes in Market Place
Positive:
- Competition in the market lead to better quality of food and services in addition it leads to more effort in innovation to growth the industry.

Negative:
- Competition in the market might give some loss in profit according to the high competition and spending money on new advertising strategies.