CHAPTER 3: MARKETING STRATEGY

A. RESEARCH AND ANALYSIS

3. Introduction

The purpose of running a business is to gain profits and growth. The

fact is that we cannot run out because there is no one that run a business just
finish up their initial capital and wate their money. This is where the
importance of marketing plan plays an important role since it is one major step
that contribute in achieving business objective. Marketing process including
the execution of concept, assessment and satisfaction of present and
potential customes, determining prices, developing distribution strategies and
also deliver ideas, good and services to create satisfaction for organization
objectives.

Basically, a marketing plan acts as a guidance that sets out to clear

objectives and lists the actions that can help us to achieve our target. It also a
basis for all marketing strategies and ecision making. Every marketing
manager should be advice to be aware of this matter so that they can ensure
all the plans are running according to plans and can overcome any obstacles
so that we can achieve the goals and objectives of the company. Marketing is
a crucial and critical aspect in business and always referred as the backbone
to any business in achieving a profitable outcome.

Our company will concentrate on target market, competitors and

promotional strategies in marketing to reach our sales target. Our business
mainly priority is to maximize profit without neglecting our customers
satisfaction. In addition, it is important for our company to plan a great
strategies on achieving our customer satisfaction and gain their trust.
Marketing Objective:
1. To ensure that our customer satisfied with our beverages and services.
2. To be responsible in providing the best quality of juice to customers.
3. To produce awareness about our new products that gives good
benefits for people who concern about their health.
4. To expand our business.

3.1 Product Description.

Our company mainly produced of 100% juice and juice beverage that
provide products that offer more than simple refreshment. Many of these juice
products also deliver vitamins, minerals and antioxidants. Including a glass of
fruit juice each day, as part of a healthy and varied diet, is a great tasting way
to improve intake of important nutrients which are vital for wellbeing. Each
glass of 100% juice is contain full of anti-oxidants, essential minerals,
vitamins, and phyto-nutrients that can provide long term benefits for people
who concern with their health.

We packaged our products using high quality plastic and recyclable

(Polyethylene Terephthalate) and Polystyrene cups. It is to make sure the
quality of products in a good condition and easy to use. It also able to protect
and secure the product during process of transportation, storage, display and
sales until its ready to use.
3.2 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 for example, target market, market size, competition,
market share, sale forecast, and marketing strategy.

For our business, our target customer is universal. There is no

limitation and specification for certain people because everyone can enjoy it.
Common characteristics of our customer is people that love nutritious yet
healthy drinks. We will focus on segmented marketing which we only target
particular market segments. In this business, we only target for those that
living in Malaysia.

3.3 TARGET MARKET

To ensure that marketing effort fulfil customers needs and wants as

well as bring profits, we have taken steps to identify and focus our effort on a
selected group of customers. It is important for our company to identify target
market so that they can evaluate thus predict the number of actual and
potential customers in the market that would actually use the service offered
by the company since they will be the one who is going to generate the sales
and contribute to our business. Target market is defined as the group of
customers with needs and wants that can be satisfied by business through
supply goods and services. With a clearly defined target audience, it is much
easier to determine where and how to market our company. Other than that,
the importance of identifying the target market is so that we can estimate and
do an early estimation on weather our product and service is good enough to
compete with other competitors.
 After much discussions and planning, we have a specific target market.
That being said, it doesnt mean we only focus on this group of people and
ignore others that are not in our target market, as the other group is our
secondary market and could also bring income to our business.

We have segmented our market based on these three factors, which

are geographic, demographic, and psychographic. Market segmentation is
the technique that we apply in order to identify our market which greatly helps
in deciding our target market, finally our business in a long run. It involves the
process of defining and subdividing a large homogenous market into clearly
identifiable segments having similar needs, wants, or demand characteristics.
Its objective is to design a marketing mix that precisely matches the
expectations of customers in the targeted segment. This is because, mistakes
in market segmenting may cause business to lose sales.

Demographic Segmentation

Demographic segmentation consists of dividing the market into groups

based on variables such as age, gender, income, occupations, and health
conditions. Our company is located at the town where the people or
customers came from different background or lifestyle. This type of
segmentation helps us to identify the trend that might shape future spending
patterns in the target market. There are a few characteristics of population
that has been identified as our target market. They have different background
of education, income, social class and occupation. This is because the Klang
Valley area is considered as a big town. The people are from all level of
incomes.
 Psychographic Segmentation

Psychographic segmentation divides the market into groups according

to customers lifestyle. Activities, interests, and opinions surveys are one tool
for measuring lifestyle. It considers a number of potential influences on buying
behavior, including the attitudes, expectations and activities of consumers.
From our research, we identified that our target market is people that come
from all level of incomes from both genders. As we know, we are competing
with other companies and shops in producing juice beverages. These
differences can attract customers to come to our company, besides the fact
that our product is a very new and unique product. Because of this reason, we
have decided to use only the best qualities of fruits and other raw materials.
Plus, we also provide the best services at reasonable prices. All these are
important to ensure that our customers are satisfy with our services.

Behavioural Segmentation

Behavioral segmentation use the unique relationship you have with

your customers to have a very personal conversation. In this segmentation,
our target market are those who concious about their health and their lifestyle.
dividing into groups based on characteristics such users as knowledge,
relationships, character, or the reaction product using it. Here, by the ratio of
mean stable, favorable or unfavorable evaluations, feelings and tendencies to
act in relation to certain subjects and ideas, it strongly influences the behavior
of buyers. In accordance with this segmentation, the circumstances of use,
based on gains, based on the status of the user, based on the intensity
consumption, based loyalty based on the stage of readiness for the buyer to
make a purchase.
3.4 MARKET SIZE

Market size can be defined as the number of buyers or potential

customers in a certain market from the target market. The target market for
our business is targeted to all types of people that have different backgrounds
of educations, income, social-class, occupation and races. Our main business
is located in Bangsar, Kuala Lumpur. The population in Bangsar, Kuala
Lumpur is 120,000 people. The majority living in Bangsar consists of Malays,
Chinese, Indians and others. This research and survey done included all type
of ages such as adult, teenagers and also children. The result of market size
obtain is as follows:

PERCENTAGE (%) NO. OF PEOPLE

Adult 35 42000
Students/Teenagers 37.5 45000
Children 27.5 33000
Total market size 100 120,000

From 120,000 people, we had targeted about 70% as our target market to
increase our sale:

Children : 20%
Teenager/ Youth : 35%
Adult : 15%
70%
3.5 COMPETITION

Competitors often defined as other firms or independent entities that

offer similar services or goods in the marketplace. Knowing the competitors
and what they are offering is very significant in setting up a new business. It
will trigger us enhance our products, services and marketing. Other than that,
it will allow us to set our prices competitively and help us to respond to rival
marketing campaigns with our own initiatives and efforts. Currently there are a
lot of juice bars existed in the surrounding marketplace which means a lot of
rivals existed. In business, a company in the same industry or a similar
industry which offers a similar product or service is assumed to be the
competitor. As an entrepreneur, competition is positive way for our company
to improve the business that will help us to stay on focus of our business. We
can also identify the strengths and weaknesses of our services.

We knew that every competitor has their own strengths and

weaknesses, so we have engraved more in order to move a step ahead in
order to compete with current competitors. Therefore, we will create marketing
strategies that take advantages of our competitors' weaknesses, and improve
our own business performance. Assessing the threats posed by the
competitors is important in order to manage our business successfully. Below
are the lists of our current potential competitors:

3.6 MARKET SHARE

Market share in strategic management and marketing is the

percentage or proportion of the total available market or market segment that
is being serviced by a company. It also refers to the estimated potential sales
of the business after taking into consideration the market size and
competitors influences. JUICYLICIOUS JUICE 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. Based on random survey that
we made, almost all the feedback that we got were positive.
3.7 SALES FORECAST

This is important in order to measure the profit, loss or achieve breakeven by

company. Besides that, it also can be used to decide employment
requirement levels. The expected sales of our product for our customer are
shown below:

Sales Forecast For 3 Consecutive Years ( RM )

Month
First Year Second Year Third Year Total Sales Remarks
January 35000 45832.5 50415.75 131248.25
February 36500 45832.5 50415.75 132748.25 Festival Month
March 38000 45832.5 50415.75 134248.25
April 38500 45832.5 50415.75 134748.25
May 39700 45832.5 50415.75 135948.25
June 40500 45832.5 50415.75 136748.25
July 42300 45832.5 50415.75 138548.25
August 45500 45832.5 50415.75 141748.25
September 50000 45832.5 50415.75 146248.25 Festival Month
October 49500 45832.5 50415.75 145748.25
November 53000 45832.5 50415.75 149248.25
December 55300 45832.5 50415.75 151548.25 School Holiday
TOTAL 523800 549990 604989 1678779
3.8 MARKETING STRATEGY

A business marketing strategy is the single biggest factor which

determines the success or failure of once business. Marketing strategy is a
business's marketing policy, usually outlined in a formal marketing plan. The
marketing strategy usually meshes with the company's corporate image and
product brands. Marketing tactics are some of the activities that carry out the
marketing strategy. Each promotion tool has unique characteristics and costs.

Basically, there are for key variables involved in the marketing

strategies which are also known as the 4Ps of marketing. It is used by
business to assist in pursuing the businesss objectives. These four variables
are:

1) Product Strategy

Special attention needs to be given to the following asects in this strategy.

Brand

We found that the brand name of products offered is really important to

attract customers. The brand name must be unique, desirable and catchy. Our

brand name is Healthy, Delicious and Fresh which means that we are really

committed and dedicated in producing healthy, delicious and fresh with

flavours added and no preservatives.

Quality

In order to get customers satisfaction and trust, we must sustain high

standards and quality of our based products. Customers nowadays are very

concern about their health. Hence, Juicy Juice is the best choice to fulfill their

needs and wants since we are not only providing high quality of fruits but also

healthy and fresh.

 Design

Product design or service package plays an important role in satisfying and

delighting the target market. We have the power to create instant recognition

of our products. As a new brand in the market, we realized that we must

differentiate our products from the competitors products. For instance, we

decided to make different packaging styles and designs of our products

compared to all the other outlets.

Packaging

a. Protection

The packaging must be able to protect the products during the process of

transportation, storage, display, and sales until the products are ready for use.

To protect our products from being contaminated, we pack them in the high

quality of transparent bottle containers with strong materials.

b. Product differentiation

As we know in market, each product has their own identities and

specialties to attract customers. We have the power to create instant

recognition of our products. As a new brand in the market, we realized that we

must differentiate our products from the competitors products. For instance,

we decided to make different packaging styles and designs of our products

compared to all the other outlets.

c. Attractive

The packaging must be able to attract the customers attention.

Therefore, we used a high quality plastic (PET) that have attractive design

and several of sizes and shapes as well as nice label for our products.
 d. Labelling

Labelling performs several functions such as identifying, grading,

describing or even promoting the product. Label is one of the important thing
that consumer have to take attention. In addition, we also put all the
ingredients and content label at the package to ensure customers about the
healthiest of our product which not be made from artificial ingredients. It is
safe for the children to eat our products. We are at most concern on our
customers health and satisfaction. The more important thing is the halal
logo that certificate from JAKIM which is can convince the consumer
especially Muslim to purchase our products. This is to ensure all the
ingredients that we are used is from food standardization and not made from
non-halal ingredients that could be make sensitivity of Muslim consumer.
2) Pricing Strategy
As a new comer, our pricing strategy is to introduce our products in the
market at lower prices so as to create huge demand in the market and then
compete with other competitors. As we come up in the demand, we will
increase our prices and will provide more efficient and affordable juices. Our
product will be lie on penetration strategy with high quality and low price. For
introducing new product, price low to capture market share. Objectives such
as these and how a business generates profit in comparison to the cost of
production need to be taken into account when selecting the right pricing
strategy. There are several pricing strategies, namely, cost based pricing,
value based pricing, and competition based pricing. Each one of these has
their own pros and cons based on the product or service offered itself.
3) Distribution Strategy
Distribution strategy is important in order to make sure that our product
is in good condition when it arrives to the customers. Our product will be
sending direct to the retailer based on our contract.

Manufacturer Retailer Consumer

 Our product only can be sending to the retailer after the process quality

checking.

4) Promotion Strategy

Promotion represents all of the communications that a marketer may use

in the marketplace. Juicylicious Juicy will be using plenty of methods and
approach to advertise our product and service offered. This is very important
since it has been seen that a good promotional strategy may influence and
increase a companies income based on several major companies that has
already made an impact in the business industry. The main objective of
conducting a promotional strategy is to make sure that the customers are well
informed about our offer promotion and discounts. Another reason for
informed about our programme and other important agenda happening.
Another reason for promotional strategy is to attracted potential customers to
come to our place and at the same time can promote our business. This will
be some of the promotional strategies that we will be implementing for our
business.
Juicylicious Juice use different sources to communicate their target
marketing by using a channel that attract the customer and give fully
information about juices through these electronic media. As our target
consumers are elder people, children and all health conscious people, the
advertisements will be given in television, radio, internet, magazine,
newspapers, and billboards. Advertising themes will be changed with time and
promotional activity will be carried out to generate the consumer. We also
promote our product with the help of our packaging system. In packaging we
mainly follow that the product will packaged in an attractive form, that make
consumers interest on our product.

I. Advertising
a. Newspaper/ magazine

This is one of our promotion strategies in introducing our

company. Newspaper is a part of medium in transferring
information to the residents in our marketplace. So, we will
advertise our product including our companys contact details.
 However, in order to minimize the cost, we will choose the hot
selling newspaper and magazines in the residential area. It also
will reduce the waste of advertising useless promotions.

3.9 Marketing Budget

Fixed Assets Other

Items Expenses (RM) Expenses (RM)
Signboard 1,500
Fruits Display Fridge (2 units) 16,000
Furniture
Round Aluminium Table (3 units) 270
Aluminium Chairs (12 units) 600
Stool (10 units) 1190

Promotion
Price list 500
Banting 150
100
Banting stand

Grand Opening 100

Balloon 40
Coupon 50
Others accessories
60
Business Card (100 pieces x 5) 400
Workers T-Shirt ( 8person x 2)
Total 19560 1350