INTRODUCTION TO MARKETING

Marketing can be defined as a satisfying needs and wants through an exchange

process. In addition, marketing also can be defined as the process of planning and
executing the conception, pricing, promotion, and distribution of ideas, goods and
services to create exchange that satisfy individual and organization objectives.
Famous marketing expert, Paul Mazur described marketing as the creation and
delivers of standards of livings.
Marketing is one of the most important elements in running a business. The success
of a business solely depends on the strength of its marketing. Without a suitable and
efficient marketing plan, business may never achieve its goals and could result in
wasting of resources such as money, energy and time.
A marketing plan sets out to clear objectives and lists the actions that can company
to achieve their respective target and goal. Even though, it will never guarantee your
company a sale, but a well-researched and coherent marketing plan will give
entrepreneurs a clear directions on how to build long-term, profitable relationships in
the business.
Realizing the importance of marketing to ensure continuity in the company's growth,
REMPEYEK WARISAN established the marketing department with tasked to
ensuring that all aspects of marketing can run entirely smoothly. The marketing
department is responsible for developing short-term and long-term strategies for the
company to ensure the company can continue to compete with other competitors.
The most important aspect of marketing is to satisfy the needs of customers. A lack
of understanding of the marketing can result in poorly developed product that fails to
meet the customers needs and wants. This can hamper marketing efforts and affect
sales performance, business expansion and progress. From our market research,
REMPEYEK WARISAN has recognizes that each individual has different tastes and
preferences. Therefore, that it is important for us to diversify our rempeyek product
as a respond to our customers demand. Moreover, it can give us more edge towards
our competitor.
Statistically showed that the rempeyek is one of the Malaysian favourite snacks, and
we can take advantage of that by innovatively introducing variety of rempeyek
product. REMPEYEK WARISAN plan to introduce variety of rempeyek product to

fulfil market demand such as, remepeyek udang, rempeyek kacang, rempeyek bilis,
rempeyek dhal etc. privileged of our rempeyek compared to other products in the
market lies in its authentic taste. It is a recipe inherited and we believed to be able to
give satisfaction to our customers while enjoying our products.

OBJECTIVE

To introduce variety of our rempeyek product to beloved customers.

To position ourselves as a local company, with strong ties to the community.
To increase our profits by at least 10% every year
To gain 30% market share by 2018
To ensure customers are satisfied with our products

PROFILE OF PRODUCT
Rempeyek Warisan produces a variety of Rempeyek such as:

PRODUCT DESCRIPTION
We produce various kinds of rempeyek class by the material put together with the
rempeyek such as anchovies, peanuts, dhal and almond. This variation gives more
choices to our customers to choose any type that suits their tastes. Or customers
also had the opportunity to try out the latest of our rempeyek products, rempeyek
badam. This opens up a new dimension to the rempeyek business in malaysia so as
to remain and evolve with the times.
One aspect that we will not tolerate is about the quality of the products we produce.
We just want to give the best for our customers. To ensure the guaranteed quality of
our products and the satisfaction of our customers, we decided to used high quality
plastic (Low Density Polyethylene), plastic container with lids and disposable food
container. It is to make sure the the products are in good condition and user-friendly.
It will protect the product during the process of transportation, storage, display and
sales until the product is ready for sales and use. Moreover, we also want to create
instant recognition of our product.

MARKET ANALYSIS

Market analysis is one of the main factors in marketing. It is a study designed to

define a companys markets, forecast their directions, and how to expand the
companys share and exploit any new trends. Things that include in market analysis
are target market, market size, competition, market share, sale forecast, and
marketing strategy.
Our company's target market is not limited to a particular class only. However, we
are realistic that for a start we need to build a strong presence in the state where
company is located. Even so, in this modern borderless world of today, we will not let
the opportunity to market our products through online. We are confident our products
will be accepted by the market. It is based on factors that snack is a favorite
Malaysian food and a choice of main dishes, especially during the festive season or
feast.

TARGET MARKET
Target market is the groups of people that can be the customers by fulfill their needs
and wants. The market of rempeyek is very large because all people eat and like
rempeyek very much. The REMPEYEK WARISAN target market is all people who
like to eat rempeyek. There are several market segments that had been decided by
the company.
Geographic

The main office and factory of REMPEYEK WARISAN is located at Sungai

Petani. So, the company will target the market at whole kedah area as well as

north of the country.

The sungai petani had located in the middle and bordered by island. This
makes the sungai petani as a very strategic location as the site of our
business. complete basic facilities such as link roads, highways and utilities
can help companies to develop properly. Besides that, the distribution
processes to these areas are easier because there are road and highway.

Moreover, there are many supermarkets and hypermarkets around here. So,

there is large target market to reach.

When the business of company is growing, the geographic segment will be
larger. We are planning to expand our target market to Pulau Pinang and
Perak soon.

Demographic

Rempeyek a favorite snack every level of society. Therefore, the market for

rempeyek is very wide and has the potential to generate profits.

But the company believes the majority of buyers will consist of students and
families. These groups like to eat rempeyek as the snack before the lunch
break or when they hang out with their family and during the tea time.

Behavioral

Rempeyek are suitable to be serving at a lot of occasion like parties, festivals,

feast and event. It show rempeyek are suitable at anytime and anywhere.
There are a lot of benefits when users eat the rempeyek. The rempeyek had a
very tasty taste, a lot of nutrient, can be bought at a reasonable price and they
can eat the rempeyek without any doubt because the rempeyek are 'halal'.

By identifying the target market, REMPEYEK WARISAN will be able to satisfy the
customer needs and wants. In order to do that, the company must do research and
development to produce the best quality of rempeyek.

3.2.1 EXPECTED TARGET MARKET

To make our product well known, we need to spread our product to our expected
target market. We act as a supplier to expand our product on a certain places. Below
is the list of our expected target market:

CUSTOMERS OUTLET
Retailers/Resellers/supermarket
Individual customers (offline)
Individual customers (Online)
Others (function, event etc.)
TOTAL

PERCENTAGE (%)
40
40
10
10
100

MARKET SIZE
Market size is the expected sales from target market. It is also including the
competitors that had offer the same line of product and be in the same industry.
REMPEYEK WARISAN target markets are the hypermarket, supermarket retail
store, reseller and individual and grouping customer around kedah, perlis and pulau
pinang.
Hypermarket and Supermarket
2500 Kg
Sales per month = 2500 Kg x RM 32.00 = RM 80,000.00

Retail store
1500 Kg
Sales per month = 1500 Kg x RM 32.00 = RM 48,000.00

Individual customer
1 000 Kg
Sales per month = 1 000 units x RM 32.00 = RM 32,000.00

Market size per month = RM 80,000.00 + RM 48,000.00 + RM 32,000.00

= RM 160,000
MARKET SIZE PER YEAR = RM 160,000 X 12 = RM 1,920,000.00

COMPETITORS
Competitors are the other companies that offer similar products or services in the
industry. As an example, in the automotive industry, Proton will compete with other
automotive companies that offer same products such as Perodua and Toyota. The
other companies also currently have the same target market with our company. The
competitors are usually the existing companies that have been in the industry for the
long period. In order for REMPEYEK WARISAN to get in the market of the industry,
our company must identify the competitors' strengths and weaknesses.

Competitors Swot Analysis

Rempeyek Bonda
STRENGHTS

WEAKNESSES

Opened everyday
Stable financial background
Comfortable shop
Had open 6 years ago until now
OPPORTUNITIES

high price
Do not have up to date equipment
Do not have special treatment
Do not have variation of rempeyek
THREATS

Growing fast food market

A new emerging and development
market
New potential in Malaysia market

Threat from local competitors in

same area
Global economic recession
Playing in mature and saturated
industry

DMelur Kerepek
STRENGTHS

Opened everyday
Have membership card
Have polite workers
Have cheaper price
Had open 2 years ago until now

WEAKNESSES

OPPORTUNITIES

Competition weaknesses
New healthier menu item
Local Urban Community
Marketing
Initiative
Government backing

The shop is not well manageable

Less quality of product
Not strategic location
Lack of quality and services

THREATS

Changing consumer eating

habits
Price wars
Exposing to rises in the cost of
cassava and dairy products.
Taxation

3.4.2. COMPANYS SWOT ANALYSIS

STRENGHTS

Have many variety of rempeyek

Have a special service from

workers
Supply for occasional event

Provide a comfort facilities to

customer
High quality of unique product
Provide delivery
OPPORTUNITIES

WEAKNESSES

Do not opened everyday

Do not have membership card
Undifferentiated of products and
services
Market position
Weak brands

THREATS

Co-branding with other

manufacturers of food and drink
Global demand of crispy chips via
suppliers
Increase in online ordering market
Changing customer tastes
Change in population agestructure

Market entry of many competitors

and copycat brands
Seasonal demand
Low levels of suppliers loyalty
New competition in the
market,possibly with new products
and or services

NO COMPETITOR

MARKET SHARE (%)

1.

Rempeyek bonda

40

748,800.00

2.

D'Melur Kerepek

30

561,600.00

3.

Others

30

561,600.00

TOTAL

100

PROFITS (RM)

1,872,000.00

MARKET SHARE
Market share is the percentage of the market that had been control of the company.
The table show the market size of other competitors for north of malaysia before and
after the entrance . rempeyek warisan has done some research and our market
share depends on it. From the observations that we made, seems like we have good
potential to do this business. This is because we find that some of our competitors
do not provide good services and less quality for their rempeyek. Based on random
survey that we made, almost all the feedback that we got were positive. About 8 over
10 people like our rempeyek taste. Many people would like to try our product and
said that this product is more delicious and has high quality compared from other
rempeyek products. Below is the market share that we have estimated before and
after the entrance of REMPEYEK WARISAN:
Table above shows the market share before the entrance of REMPEYEK WARISAN

Pie chart shows the market share before the entrance of REMPEYEK WARISAN
REMPEYEK WARISAN enters the market.
NO

COMPETITOR

MARKET SHARE (%)

PROFIT (RM)

1.

Rempeyek bonda

30

561,600.00

2.

D'Melur Kerepek

25

468,000.00

3.

Others

25

468,000.00

4.

REMPEYEK WARISAN

20

374,400.00

100

1,872,000.00

TOTAL

Table above shows the market share after the entrance of REMPEYEK
WARISAN

SALES FORECAST
Sales forecast is the expected sales that the company target to achieve.
REMPEYEK WARISAN target sales for the first year are RM 201,600.00. For the
second year, we estimate our sales will increase 10% from the first year which is
equivalent to RM 221,760.00. For the third year, the expected sales will be increase
15% from the second year which is equivalent to RM 255,024.00.
Months
July 2015
August 2015
September 2015
October 2015
November 2015
Decembers
January 2016
February 2016
March 2016
April 2016
May 2016
June 2016
Total

Kg
600
700
1000
700
1200
1500
800
800
900
1000
1000
1500
11,700

Sales Forecast (RM)

19200
22400
32000
22400
38400
48000
25600
25600
28800
32000
32000
48000
374,400

SALES FORECAST FOR CURRENT

YEAR, SECOND AND THIRD YEAR

MARKETING STRATEGY
PRODUCT STRATEGY
Products attributes
Products design: Mostly, the design of the rempeyek is important to make our
product become more interesting in terms of shape and thick of the rempeyek.
Products quality: Quality of our products must be getting a proven by Ministry of
Health and also from JAKIM that can give the HALAL logo for our company products.
This will make our customer more confident about quality of our products and can
contribute them to buy it.
YEAR
Total year 1
Total year 2
Total year 3
Increment for year 2
(%)
Increment for year 3 (%)

AMOUNT
(RM)

Products features: The raw materials that our

company use in production rempeyek must

374,400.00
411,840.00 be high quality to make all types of our
473,616.00

products become tastier.

10%
15%

Packaging

The important of packing is to make sure the condition of the products always in
good condition and durable of that product. Our company chooses to use eco plastic
and box to packaging our products.

The
packaging of our products depends on the quantity which is:
Plastic: For small quantity, our company will pack three rempeyek in one packet.
Then it will repackaging into one box which is one box contain 12 packet of
rempeyek.
Box: Our company use box in packaging strategy when to make delivery to our
dealer and wholesaler in terms of big quantity. It is to make sure the process of
delivery becomes easy and avoid any defect of our products.
DISTRIBUTION STRATEGY
Place or distribution market means that the channel that our company use to sell our
product in the market according to our target market. There are several channels
that our company uses which are:
REMPEYEK WARISAN

Consumer

First distribution market is REMPEYEK WARISAN Company sell directly to

consumer. Usually, this distribution is suitable for consumer who lives nearby our
company area. It was easily to sell directly to consumer without through the retailer
and wholesaler because it can save our cost of delivery product.
REMPEYEK WARISAN

Company

Retailer

Consumer

Next, REMPEYEK WARISAN Company sells the product through the retailer.
Retailer is one of the people who can make our product well known by the consumer.

Normally, consumers like to buy their goods from retailer, so this could be one of the
ways that our company uses to promote our product to the consumer.
REMPEYEK WARISAN

Wholesaler

Retailer

Consumer

The last distribution that our company uses is selling through the wholesaler. The
wholesaler will buy our product in big quantity and sell back to the retailer and
consumer. Examples of our wholesaler are Giant, Tesco, Mydin, Hypermarket and
Carefour. Many company in Malaysia use these distribution and it become one of the
trend to sell company product to the consumer. Without using this distribution, the
company product cannot sell their product easily and gain profit.
Promotion Strategy
Promotion strategy is the process of promoting a new product to the consumer
based on a several tools. It was important part to make the company sell their
product according to their target market. There are many tools that can be use which
are advertising, personal selling, sales promotion and publicity.
REMPEYEK WARISAN had decided to use several tools that suitable for our
product which are advertising and sales promotion.
Advertising
Our company is one of new entrepreneur in the Food industry, so our company
chooses to use the cheap advertising tools which are banner and brochure. If the
sales production increases, our company will advertise the product through the radio
and television.

Sales promotion
Our company will gives discount to the wholesalers and retailer that buy our product
in big quantity. Besides that, our company will gives extra one box to our customer
that buy the product more than five boxes. During festive season, our company also
will lower the price of our product depends on the market needed.
o
o
o
o

Give discounts to regular customers

Give discounts for bulk purchases
Big discount once a year
Give free extra rempeyek to customer that purchased at certain quantity

Online Promotion

Online marketing, also called digital marketing, is the process of using the web and
internet-connected services to promote your business and website. There are a
number of disciplines within online marketing. Some of these include social media,
search engine marketing (SEM), search engine optimization (SEO), email marketing,
online advertising and mobile advertising. We decided to make the most use of the
internet to promote our products. This is because the internet has become the main
communication medium of the present world. Our campaign will reach a wider
without boundary limit.

Price Strategy
Pricing strategy is an important strategic issue because it is related to product
positioning. Thus, REMPEYEK WARISAN Company had chosen cost-based strategy
and value-based strategy in implementing the strategy.
Cost-based Strategy
Cost-based strategy is the strategy on pricing the product based on cost plus a
mark-up profit. Mark-up is the profit that we get from selling the products.
Price per unit = Cost + Mark-up
= 20.00 + (60% x 20.00)
`

= 32.00

= RM 32.00/kg

Value-based Strategy
Value-based strategy is the strategy on pricing the product that can show the quality
of the product. REMPEYEK WARISAN used high quality of raw materials to ensure
that our company produces high quality of products that can fulfill the customers'
needs and wants.

MARKETING BUDGET
ITEM

Fixed asset
Signboard

Salary
Sales
Executives
EPF (13%)
SOCSO (2.5%)
Transportation
Advertising and
promotion
Business card
Banner and brochure
Sample rempeyek
Website/social media

PROPERTY
BUDGET
(RM)

MONTHLY
BUDGET
(RM)

MISCELLANOUS
BUDGET (RM)

3000

TOTAL
(RM)

3000

1500
195
37.5

1500
195
37.5

500

500
500
500
150
1500

500
500
150
1500

Other expenses
TOTAL

3 000

2232.5

2000
2 650

100
2000
9982.50