No. Table of Content Page
1. Introduction 2
2. Company Profile 3
3. Communication Activities 5
4. Critique 8
5. Suggestions 9
6. Conclusion 11
7. References 12
8. Appendix 13
Power Root Berhad also known as Natural Bio Resources Berhad was being well known in the world as an herbal energy drinks company. Power Root Berhad was founded on 23 July 1999 in Johor Bahru, Johor. On August 2016, the directors of the board had been change. The Independent Non-Executive Chairman, Dato’ Afifuddin bin Abdul Kadir and Alternate Director, Dato’ Tea Choo Keng who both joined the company on 16 August 2016. Based no Power Root Berhad Annual Report 2017, Power Root have 10 manufacturing company in Malaysia and 5 at overseas.
The herbal energy drinks that develop and promote by Power Root Berhad are mainly consist of two main rainforest herbs which are Eurycoma longifolia Jack or commonly known as “Tongkat Ali” and Labisia Pumilia and Pathoina or “Kacip Fatimah”. These herbs are indigenous to Malaysia. Most of the Malaysian are highly recommend the use of the rainforest herbs due to their properties which promoting physical well-being. The Power Root Group is working hard to bring the ultimate in taste and health benefits of coffee to their consumers by using high quality raw ingredients and safe manufacturing practices. They always work hard to produce new innovative products for their consumers.
Other than its coffee brand being Alicafe, Per’l and Ah Huat White Coffee, Power Root also manufactures instant premixed tea under the brand name Alitea, cocoa beverages under the brand name Oligo, Per’l Choco and Ah Huat Coco, and canned energy drinks known as Power Root Extra.
Power Root Berhad (Company No: 733268-U) is an investment holding company located at Johor, Malaysia. This company is mainly focus on production of beverages’ premixed instant powder. The main ingredient contained in the beverages that promote by Power Root are two main rainforest herbs: Eurycoma longifolia Jack (Tongkat Ali) and Labisia Pumilia (Kacip Fatimah). Both of the rainforest herb are indigenous to Malaysia and provided function like promoting physical well-being.
POWER ROOT (M) SDN. BHD. is now a subsidiary of a public listed company: POWER ROOT BERHAD (formerly known as Natural Bio Resources Berhad), a company listed on the Main Market of Bursa Malaysia Securities Berhad. Power Root had done many research and development on the traditional herbs in order to produce their own brand and own products. Power Root targeted to promote the local products in the international market.
In March 2001, Power Root established a marketing branch in Kuala Lumpur because Kuala Lumpur is a more suitable location to let them connect with their customers more effectively. In 2003, Power Root started its very own manufacturing plant in Johor Bahru to cater for growing demands. At early 2008, an 18 acre phase 1 manufacturing facility is expected to be completed, incorporating modern production technology to cater for the strong market demand locally, business development opportunities abroad and new formulations development.
Power Root always trying the best to produce high quality product for the consumers. They continue doing research to develop new product and in similar ways they also improving the existing product. This attitude has also accelerated the success of Power Root Berhad in the market. As such, the company was able to quickly establish a stable business foundation and thus, creates a very promising future for the company.
There are several brands of beverages are included in Power Root which are: Ali Café and Perl Café, Power Root, Alitea, Oligo Café and Nnergy.
Power Root’s Brands Product Description
Ali Café and Perl Café Canned coffee and premixed instant coffee powder infused with Tongkat Ali and Kacip Fatimah extracts
Power Root Energy drinks with Tongkat Ali extract
Alitea Premixed instant tea powder with Tongkat Ali extract
Oligo Café Premixed instant coffee powder with OligofructoseNnergyCarbonated energy drink wih added vitamins
Organizational communication can be divided into two, which is internal communication that happened within members in organization and external communication that happened between the organization and the groups from outside organization.
Internal Communication can be happened in upward, downward and horizontal. Internal Horizontal Communication is carried out during the Board Meeting. During the financial year, the Board meeting will be carry out to determine the overall strategic direction, development and control of the group. The Board had met 4 times during the financial year ended 31 March 2017. During the meeting of the Board, the Chairman will act as a facilitator to make sure that no board member dominates the discussion.
During the Board meeting, he company secretory will giving advices on issues relating to corporate governance, compliance with laws, rules, procedures and regulatory requirements to the board. This can be consider as an internal upward communication within the secretory and the Board members.
External Communication always being used by Power Root Berhad to carry out activities to promote their products. Power Root Berhad had took part in the 22nd edition Gulfood Exhibition 2017 in Dubai. Moreover, Power Root Berhad had appointed a popular TV personality and talk show host, Faizal bin Ismail as the ambassador for Tongkat Ali Range.
Besides, Power Roots also engaged with local university students to promote their Ali café slim can range. This event is carried out at various institutions throughout Malaysia. The activities that carried out during this event are product samplings, graffiti-painting competitions and flash mob dancing.
Apart from that, Power Root Berhad had sponsored the Mix Martial Arts (MMA) ONE Championship leg in Malaysia which held at Stadium Negara on September 2016 and February 2017. This event help to promote Power Root’s Extra Power Energy drinks as a high-octane sports drink to the consumers.
Furthermore, Power Root Berhad will have an annual general meeting with shareholders. The purpose of the meeting is to encourage and allow the shareholder s to seek clarification or ask question on relevant question.
Public communication is the communication that occurred in a large group with more than 20 peoples. The communication carried an objective which is to share information to the audience. Power Roots Berhad had used public communication to carry out a few events to promote their products to the public.
According to Power Root Annual Report 2017, Power Roots had launched a Parent’s Day Royal Caribbean Cruise Contest. This event is aim to promote Ah Huat’s white coffee to the public and in other hand provide an opportunity for families to get together. A luxury cruise trip is giving away to 10 winners during this event.
Apart from that, Faizal bin Ismail, the popular TV personality also used public communication to promote Ali café Tongkat Ali Range. Power Roots Berhad had organized a roadshows in October 2016 at Mydin Bukit Mertajam and UO Tampoi, Angsana Mall, Johor Bahru. The objective of the event is to enhance their brand equity where customers also have a chance to meet up with Faizal bin Ismail.
Power Root Berhad had used mass communication to promote their products through printed media and electronic media. In September 2016, Power Root Berhad had carried out a promotion by giving out thermal tumblers with description of product printed on the tumblers.
Besides that, Power Root Berhad had sponsored the “Sing! China” programme between Julys to September 2016. This programme was telecast through Astro and 8TV. By using electronic media, Power Root Berhad may promote their products more to their customers.
Further that, in October 2016, Power Root Berhad had launched an innovative interactive social media advertisement campaign featuring Ah Niu. This advertisement is about a prank whereby selected consumers a personalized call form Ah Niu. This campaign which using electronic media is consider successful since more than 1.5 million users had played this prank.
In September 2016 and February 2017, Power Roots also sponsored the Mix Martial Arts (MMA) ONE Championship leg in Malaysia. This event were broadcasted live on one of Astro’s sports channels. This help Power Root to promote the Extra Power Root Energy drinks as a high-octane sports drink.
The products of Power Root Berhad not only sell at Malaysia but also Singapore and China. For China’s customers, the products is sell through electronic media which is online shopping.
The Power Root Berhad had come out with several written report like Annual Report, Audit Committee Report and Statement of risk Management and Internal Control.
Besides, during the annual general meeting, the notice of the meeting and the annual report will be sent to the shareholder minimum 21 days before the meeting.
Power root SDN. BHD is a leading company develops and upholds herbal energy drinks. The power root energy drink has its own distinguishing features and unique compared to other energy drink. The plant is known as the ‘Bitter Cures’ (Tongkat Ali) because it is really bitter and can cure all kinds of ailments and diseases. The usage of extract Tongkat ali floured they mainly produce Ready To Drink (RTD) products ready-to-drink coffee, tea, chocolate malt drinks, cereal, and energy drinks. The company markets its products primarily under the Alicafe, Per’l Cafe, Oligo, Alitea, and Power Root brand names. It also distributes health and beauty products.
Power Root with its entrepreneur spirit is committed to provide consumers with the ultimate choice of a high quality product. Concentrated efforts in research and development to develop new and improve existing products have also accelerated its success in the market. As such, the company was able to quickly establish a stable business foundation and thus, creates a very promising future for the company.
In the span of the last few years, Power Root has established a strong and aggressive marketing network in Malaysia. These high quality products combined with aggressive promotional and marketing campaigns have made Power Root a leading brand in the Malaysia market. Other than that, on the export front, Power Root has tie-ups with foreign distributors in the countries where its products are marketed. With its acute awareness of shifting lifestyle trend, the company will continuously improve and target the market with different products.
In addition, Power Root is using their official website to promote their products and services. They also use other website to promote they are brands such as, halal stock, Carrefour, Giant, Tesco, which gives people to easy access about their product and price information. They have produced many TVC and Radio advertisement through all over the internet, television and radio. Since compared to other media such as radio and television the coverage of visual advertisement on the internet is very low. The interest of printing advertisements is very low compared to other brand such as, red bull and Livita.
There are some suggestions that can be emphasized by Power Root to produce high quality products that exceed customers’ expectations, which will subsequently improve the quality of its customers’ lifestyle and to continuously expand its product in the international markets and ultimately, to make its brand “Power Root” a household name globally.
Firstly, Power Root must improve the company efficiency. The employer and employee must eliminate communication barriers from within the company. Implement Smart Mobile Devices to all employees to improve communication systems among employer and employee. The employer must create an energy management program to all staff at this company. Besides that, Power Root should identify key performance and productivity factors, such as production stock and customer satisfaction. Power Root also needs to create an accident and disaster management plan, embrace feedback, consult ergonomic standards, streamline social media marketing efforts, analyse employee processes and set achievable goals.
Next, for implementation control, Power Root Berhad must improve the marketing strategy for their product. Power Root can improve by using healthy fruits in their drinks such as berries, oranges, grapes and so on. As a result, their drinks will be more flavours, healthier and suitable for all ages. Furthermore, they need to create drinks for senior citizens from herbs and healthy fruits which have the advantage to make their bones stronger and can avoid from diabetes, high blood pressure and much more. Besides, Power Root can extend their product from healthy drinks to dietary product from herbs that capable to give energy to people and to make people healthier inside and outside. Lastly, Power Root should make new packaging for the product like “Tongkat Ali” and “Kacip Fatimah” to look fresh in the market.
Other than that, Power Root must improve the promotion for their products to ensure their products known and popular among buyers. Power Root should use the new, fresh, and popular artist or celebrity for their product spokesman such as Fattah Amin, Fazura, Zul Ariffin, Neelofa or Siti Nurhaliza. Moreover, Power Root can make their own website or media social accounts such as Instagram and Facebook to promote their product. Power Root also can create a card that can give costumers’ point when they buy one of the Power Root products. The costumers can exchange to the prize when they achieve the point required.
In addition, Power Root needs to expand their products to develop country such as USA, Japan and China to make Power Root brand become stronger. They also can sell their product at a small booth at the big events such as Astro Gempak and many more. As well as, Power Root must add headquarter of Power Root at east and north to make the company organization more efficient and systematic.
Lastly, in terms of price of the Power Root product, Power Root can lower the price for “Oligo” since it is for children and students. They also can give a sale discount to the costumer when it’s the end of the year and special celebrations such as Father’s day and Mother’s day. Other suggestions for Power Root is they need to improve their marketing strategies and plan, capturing marketing insights, building strong brands, connecting strong brands, shaping the market offerings, delivering value, communicating value and creating successful long-term growth.
Power Root Berhad, an investment holding company, manufactures and distributes beverage products in Malaysia. The company offers coffee under the Alicafe, Per’l, and Ah Huat White Coffee brands, instant premixed tea under the brand name of Alitea, cocoa beverages under the Oligo, Per’l Choco, and Ah Huat Coco brand names, and canned energy drinks under the Power Root Extra name. It is also involved in the distribution of various beverage products. Besides, it also involve in property development, construction business and provision of accommodation facilities. Power Root Berhad also exports its products primarily to the Middle East. The company, formerly known as Natural Bio Resources Berhad, was founded in 1999.
Annual Report 2017. (2017, May 14). Power Root Berhad, p. 1-135.
Power Root. (n.d.) Retrieved 2003-17, from www.powerroot.com/malaysia/index.html
Company Profile. (n.d.) Retrived 2003-17, from http://www.powerroot.com/malaysia/profile_company_history.html
Jaafar, S. S. (2017, Sept 25). Power Root counts on exports as home competition rises. The Edge Financial Daily. Retrieved April 10, 2018, from http://www.theedgemarkets.com/article/power-root-counts-exports-home-competition-rises
Jamaluddin, J. (2015). Functions of Human Communication. Unpublished degree’s thesis. University Malaysia Perlis, Malaysia.