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1.2 SWOT ANALYSIS
Table 1: SWOT analysis
Karisma Jaya Enterprise is a Micro enterprise located in Temerloh, Pahang. Karisma Jaya Enterprise distributes Muslim noodle products
through supermarkets and grocery stores in three districts: Temerloh, Mentakab, and Jerantut. In this section, a SWOT analysis is used to
describe in detail the background of the problems encountered as well as the potential for this business to grow. One of the strengths is
Karisma Jaya Enterprise's noodles have received a MeSTI certificate. As a result, consumers need not be worried about the 'Kasih Bonda
Mee Kuning brand's safety or quality. Furthermore, nowadays Muslim buyers are also concerned about the Halal status of the food they
consume, but consumers do not need to worry about the Halal status of 'Kasih Bonda Mee Kuning' because the brand is owned by Muslims.
As a result, customers should have no reservations on halal status of this brand and likelihood to purchase. In addition, among the other
strengths of this 'Kasih Bonda Mee Kuning' is the process of making these noodles without food preservatives. "We do not use any food
preservatives like other noodles on the market because we want to preserve the taste of this hereditary recipe" said the owner of 'Kasih Bonda
Mee Kuning'. Most noodle manufacturers in the market use food preservatives to allow the noodles to last longer, but the food preservative
will change the original taste of the noodles. The strengths mentioned above provide very broad opportunities for Karisma Jaya Enterprise
in the future. However, based on observation and interview with the owner it was found that sales and profitability at the company both
dropped. In addition, Karisma Jaya Enterprise also lack promotion activities and Kasih Bonda Mee Kuning's unique features are also not
promoted well to customers causes customers to choose products from competitors over Karisma Jaya Enterprise products. Therefore, there
is a need to study on brand equity among residences of Temerloh, Mentakab and Jerantut on the brand Kasih Bonda Mee Kuning to know
the effect brand equity toward their purchase intention.
"The Temerloh Agriculture Department has offered to expand the Karisma Jaya factory and provide some assistance in expanding this
business," says Kasih Bonda Mee Kuning's founder. The Temerloh agriculture department provided strong support for Karisma Jaya
Enterprise to expand and improve their business in order to compete with other major competitors. However, due to unfavorable sales over
the last two years, the business owner is still considering accepting the offer. According to the owner, Karisma Jaya Enterprise's business
has declined since the Movement Control Order (MCO) was implemented and the arrival of large competitors such as Gardenia, which now
produces noodles product names NuMee. Gardenia's loyal customers will easily select the product as the primary option without comparing
it to the 'Kasih Bonda Mee Kuning' product. Furthermore, Muslim Mee a large noodle brand from Terengganu, has entered the market in
this district, causing the sale of 'Kasih Bonda Mee Kuning' continue to fall and decline.
1.3 RESEARCH BACKGROUND
In Malaysia, the definition of SMEs is primarily based on annual sales turnover and total number of full-time employees. In Malaysia,
medium-sized businesses have between 50 and 150 full-time employees, small businesses employ between 5 and 50, and micro businesses
employ less than 5 employees (Khalique et al., 2011). Different supporting agencies in Malaysia have defined small and medium enterprises
(SMEs) in various ways. These distinctions are significant because how a key phrase like SME is defined and interpreted has a significant
impact on the creation and implementation of a policy, such as identifying qualified SMEs for assistance programmes.
The failure rate for the first five years is shockingly high, with the exception of the large SME establishment (Khalique et al., 2011). Indeed,
according to Husin and Ibrahim (2013), when looking at the reality in Malaysia, the failure rate is at 60%, requiring the authority's full
attention (Rahman et al., 2016). Despite government help and programmes aimed at new-entry micro SMEs, the failure rate is increasing
(Chong, 2012 cited in Rahman et al., 2016). The biggest cause for micro SME failure is that business owners are unaware of the problems
they face, particularly in terms of financial and management abilities (Beh, 2013 cited in Rahman et al., 2016).
In today's competitive market, most academics believe that a company's brand is a crucial aspect of its business and assets; many
companies want to learn how to establish a successful brand. Another competitive strategy is to build brand equity, which can assist various
firms and organisations in accomplishing their performance objectives. As a result, businesses must be aware of how they might build brand
equity. Brand equity, according to a top branding expert, is the sum of brand assets such as awareness, associations, perceived quality,
loyalty, and other proprietary assets that are tied to the brand name and symbols (Aaker, 1996 cited in Esmaeilpour et al., 2016).
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