An action research on e-commerce adoption for a frozen food manufacturer in Malaysia

Abstract

The objective of this research action is to introduce interventions into a frozen food manufacturer (CS), and assists the company venture into online sales channels. This research action will assist the company to generate income from a new profit stream as especially during this COVID-19 pandemic. This action research involved redesign product packaging, improve production process, design marketing strategy, and forming new delivery service provider collaboration. The intervention team identified Shopee.my is the suitable starting selling channel as it provides the most competitive advantage. The intervention team, launched a series of promotion and reach out the target group of customers by using Facebook advertisement. Along the intervention, there are some unintended results which affected the intervention plan, but the team was successfully overcome it. The intervention was taking place on 17th March until 16th May 2020 and successfully generate RM116,690 of revenue to the company and increase the gross profit margin from 25% to 33% for these online sales transactions. The intervention shown positive unintended results too which open up some distributor partnership at other state of Malaysia. Meanwhile for cycle two intervention, a distribution hub was setup in Oct 2021, in order to improve delivery service which is the main complaint issue received during year 2020 and 2021. The intervention is implemented and success maintaining Selangor area online revenue as the pilot project meanwhile other area revenue been decreased 35% to 67% due to the movement control lifted, and public tend to have dine in instead of cook at home. Overall, the action research assisted CS Foodstuff Sdn Bhd to setup an online store from zero, and provide new profit stream to the customer as well as improve CS product appearance in digital channel.