Question: Examine how the company implemented the localization strategies to suit the need oI

Malaysian customer
A & W Restaurants is the oldest Iast-Iood restaurant chain in the United States; it began business
in 1919. At its peak, it had 2500 restaurants, which, at the time, made it one oI the top two or
three largest restaurant chains in the world. The A&W Iranchise was brought into Malaysia in
1963 by Mr and Mrs Lie BoII Irom USA. The Lie BoII Iamily opened their Iirst outlet in Jalan
Tuanku Abdul Rahman making it the Iirst Iast Iood outlet in Malaysia. This was Iollowed in
1965 with the Iirst Drive-in restaurant in Petaling Jaya. A&W Malaysia was bought over by
KUB in 2001, and in 2008 embarked on an aggressive expansion drive to revamp and expand its
reach. A&W Malaysia are committed to providing A&W customers with saIe, delicious meals
and operating restaurants that meet the highest Iood saIety standards. This commitment is at the
heart oI A&W operations and A&W supply chain management, and is evident in every aspect oI
A&W business Irom raw material procurement, including livestock and produce, to A&W
restaurant Iood preparation and delivery.
The major objective was that, by the year 2000, they working with their Iranchises. To support
this objective, they established Iour inter-related strategies with their Iranchise community, as
Iollows:

(a) Improve their Operations
In order to do this they had to take a centralized operating organization and put their store
supervisors in the markets they supervised. They needed to improve the training, standardize
their menu, improve the quality oI the products and invest in a Iield operations organization to
provide their Iranchisees better support. Yum! strives to provide Malaysian customers with
quality, good-tasting Iood at highly competitive prices. It`s typical customers are middle-class
Iamilies looking Ior aIIordable meals on the go. As stated above, multi-branding appeals to many
groups oI people who would otherwise dine somewhere else..
(b)Accelerate Distribution and Put A & W Back On an Aggressive Growth Curve
Their distribution strategy was to create concepts ranging Irom 200 square Ieet to as big as one
wanted to make it so that they could retail their brand and core menu in non-traditional outlets
where they were intercepting other people's traIIic . A&W is indirectly a wholly-owned
subsidiary oI Yorkshire Global Restaurants, Inc. Currently, A&W operates restaurants and grants
licenses to operate restaurants under the names A&W and A&W All American Food. The
Restaurants are located with customer and oIIer A&W draIt Root Beer and Iood products such
as hamburgers, hot dogs and Iries. The Restaurants are usually located in an area with high
traIIic volume and typically are open Ior lunch, dinner and evening business. There are diIIerent
locations where A&W are placed such as airports, at gasoline stations, and Malls. DiIIerent
market is targeted per location, but they succeeded on the location on Malls and Gasoline
stations where students or the young are the bulk or the consumers.
Distribution through Iranchising. Franchise OIIer: There are two types oI Iranchise
oIIered:
a) Co-Brand Restaurant - A&W Restaurant that is to be operated in the same Iacility
as another branded restaurant concept


b) A&W express units - Based in so-called "captive audience" locations such as
military bases, colleges and universities, airports, interior mall locations
and similar venues.


(c) open their outlet in all area in malaysia

The most Iamous A&W outlet in Malaysia is undoubtedly the drive-in outlet near Taman Jaya,
Petaling Jaya, a satellite city oI Kuala Lumpur. It opened in 1965 and quickly became a Iavourite
gathering place Ior students, especially Irom the nearby Assunta and La Salle Secondary
Schools. The unique A&W root beer mug was oIten "collected" by these young customers. It
was also a Iavorite Iilming location Ior Malaysian movies during the 1970s and early 1980s.
Customers Irom the 1970s will recall Tuesdays as Coney Dog Day. During the mid-1980s, A&W
also operated a second Petaling Jaya outlet at the Atria Shopping Complex in Section SS22
Damansara Jaya. In Penang, A&W had an outlet at KOMTAR and Penang International Airport
and has since been closed down, but new stores have been opened at malls around Penang.
During the 1990s, A&W operated an outlet at Terminal 3 oI the Iormer Subang International
Airport. This outlet ceased operations when the Kuala Lumpur International Airport shiIted Irom
Subang to KLIA in 1998. To date, several more A&W outlets have been opened in Malaysia,
mostly in shopping malls. The largest A&W mall outlet is located in Suria KLCC, the most
prominent shopping complex in Malaysia. An A&W outlet opened Ior a number oI years in
Likas Square, Kota Kinabalu, but was closed down in 2004. Just like in Bangladesh, the Iood at
Malaysian A&W outlets is 100 halal.

(d) their product must suitable with consumer buying habits
shows that while slightly more than halI(51.5) oI the sample do not choose an particular day(s)
to patronise Iast Iood outlet almost an equal proportion (44.5) tend to do so during weekends.
This is supported by observations oI crowds during weekends. To persuade customers to
patronize during weekdays, A&W has come up with its Cone Day on Tuesdays when this item is
charged at lower price. Among the various groups, Irequent buyers are the most likely to
purchase on a weekend. Advertising campaigns will tend to increase weekend buyers. To
produce a more even number oI customers throughout the week, it is perhaps worthwhile
considering organizing promotion oIIers during weekdays. The most popular meals Ior which
respondent consume Iast Ioods are lunch or dinner (55.9). This is true across all groups oI
respondents. Furthermore, about one-quater (24.7) consume these Ioods as a snack, deIine as a
light, casual or hurried meal. The menu oIIered include items such as Iried chicken burgers,
pizzas (a dough- based product) an porridge; these could be taken as a substantial meal or snack.

(e) promotion made among varies oI people in malaysia

Promotional oIIers and a variety oI sales gimmicks (such as Iree giIts or sales oI masks, watches,
pouches, multi-purpose bags and mini cameras) Iorm part oI the strategies Iormulated to capture
the children's market. Children are also inIluenced by television advertisements, which display
colorIul and catchy scenes with the chain's relevant mascot (such as Ronald McDonald, A&W
Root Bear, Colonel Sanders oI KFC). These restaurants also represent import convergence points
Ior those who dine out their Iamily or Iriends, who are in the midst shopping, as a treat Ior their
children, such as good behavior, or who celebrate special occasions, such as birthdays. The
basics oI Iast Ioods, as implied by the name, are convenience (such as nobody has to cook or
clean up) and speedy service. These Iactors are must compared with behavior oI Malaysian. Due
to the short time lag between ordering and delivery oI the Iood, Iast Ioods go a long way towards
IulIilling the needs oI people who want a hurried meal or who may be compelled to eat while
driving. Besides, the American Iast Iood concept provides consumers with a convenient
alternative to a home-cooked meal. Distribution oI the product in Malaysia is based on
distribution through Iranchising. Franchise OIIer: There are two types oI Iranchise
oIIered:

a) Co-Brand Restaurant - A&W Restaurant that is to be operated in the same Iacility
as another branded restaurant concept


b) A&W express units - Based in so-called "captive audience" locations such as
military bases, colleges and universities, airports, interior mall locations
and similar venues.

Malaysian customers attach great importance to quality oI Iood, cleanliness and consistency.
Politeness oI staII and type oI service Iorm the next important group. The remaining menu,
environment, location and price Iorm the lowest group. It is noted that price is given the least
importance. Hence, Ior a Iast Iood chain to do well, great attention should be paid to the Iirst two
groupings to enhance Malaysian customers' belieIs oI these attributes. For example, improving
the nutritional value oI Iast Iood by providing a good balance oI vitamins and minerals and by
reducing oils and saturated Iats (cholesterol) would encourage more customers to Iast Ioods. It
may then be justiIied as an alternative to a home-cooked meal. There should have a support Irom
government so that the Iranchise will be successIul. In Malaysia, the government has a master
plan Ior Iranchise development. Malaysian Iranchises receive support to establish themselves
Iirst in their country.