Chapter 3: Marketing Plan 2017

CHAPTER 3: MARKETING PLAN

3.1 INTRODUCTION TO MARKETING

3.1.1 Marketing Objectives

Marketing objectives support the achievement of a business mission and vision.

Example:

1. The total marketing activity needs to be planned and implemented in a systematic

manner in order to achieve the business objectives.

2. To ensure that customers are attracted and motivated to purchase the product or service
offered.

3. To sustain and increase sales by encouraging repeat purchases.

4. To apply a basic set of ethics that protect the society at large from any harm that can
result from the business marketing activities or usage of the product.

3.2 INTRODUCTION TO PRODUCT OR SERVICE

To describe clearly the product or service that is offered to the customer. It should be
noted that a good product or service must have the ability to fulfill the needs and wants
of the target customer.

The proposed product/

i. service :

ii. Brand :

iii. Selling Price :

iv. Product/ service features :

v. Product/ service benefits :

vi. Product/ service uniqueness :

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vii. List of product or service (if appropriate)

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3.2.1 Market area and business location

A market area can be segmented by certain geographical factors, such as region, states,
cities, towns or districts.

3.2.2 Collect information and data of customers

The business has to compile as much information and data as possible of the customers in
the market area selected. Information can be based on personal details and attributes of the
population in that area, their lifestyle and any psychological factors that may influence
buying habits.

3.2.3 Segmenting the market

Market segmentation is the process of dividing a market into categories of

consumer types or segments using different variable with respects to geographic
variable such as

1. Geography (district, state, country, climate)

2. Demographic (age, occupation, gender, education, income, family)

3. Psychgraphic (status, preferences, hobbies, loyalty to product)

3.3 TARGET MARKET

Select target market from several market segments identified. The target market selected
based on the higher sales potential and profits this group is expected to produce
compared with the other market segments.

Target market can be defined as the group of customers that has similar needs and
wants and that can be satisfied by the business through the supply of products and
services.

1. Based on survey: provide survey form

2. Based on observation

3.4 MARKET SIZE

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Market size is the total potential purchase that is expected from the target market

The potential purchase includes purchases of the competitor’s product within the same market.

The market size often quoted in unit of sales (quantity) or sales (which would be in RM) or both
for a specific period; daily, weekly, monthly or yearly.

Table 6: Market size

Market Segment Population Target Market Target Market

(%)

Teenagers 4,000 50 2000

Families 1,500 20 300

Adult 2,500 30 750

Market Segment Target Market Potential Total Potential Purchase

Purchase (monthly)

RM RM

Teenagers 2000 10/day (RM10 x 30 days) x 2000 =

600,000

Families 300 2000/month RM 2000 x 300 =

600,000

Adult 750 100/week (RM100 x 4 weeks) x 750 =

300,000

TOTAL 1,500,000

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Market size per year = RM 18,000,000 (1,500,00 x 12)

3.5 COMPETITORS

Competitors refer to other businesses that offer similar products, substitute or alternative
products or services to the same target market.

3.5.1 Analysis of Competitor

Table 7: Competitor Strengths and Weaknesses

Competitor Strengths Weaknesses

Competitor 1
Business Name

Competitor 2
Business Name

Competitor 3
Business Name

Analyse the strengths and weaknesses of the competitors in terms of size, experience, number
of years in business, financial capability and product lines.

Maximum number of competitors is only three.

3.5.2 Analysis of “insert business name” Opportunities and Threats

Table 8: Business Opportunities and Threats

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Opportunities Threats

1. Growing healthy, organic 1. Difficulty convincing cost conscious

ingredients consumer to spend

2. Acceptance of the internet as a 2. Growing cost of employee benefits,

marketing and customer service which contributes to increased
medium product prices

3.6 MARKET SHARE

Market share refers to the portion of how much of the market that the business can capture or
control after taking into consideration the market size and the competitor’s position in the same
market.

3.6.1 Market Share before entry of “insert business name”

Table 9: Market Share before entrance

Competitors Market Share Market Share/ yearly

(%) (RM)

Saga Enterprise 50 9,000,000

Molek Creative 30 5,400,000

EnaQ Enterprise 20 3,600,000

Total 100 18,000,000

(same as total Market Size)

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3.6.2 Market Share after entry of “insert business name”

Table 9: Market Share after entrance

Competitors Market Loss of Market Market Share/ yearly

Share Market Share (RM)
Share

(%) (%) (%)

Saga Enterprise 50 5 45 8,100,000

Molek Creative 30 1 29 5,220,000

EnaQ Enterprise 20 2 18 3,240,000

“insert business - - 8 1,440,000

name”
(this is total sales forecast)

Total 100 8 100 18,000,000

(same as total Market

Size)

3.7 SALES FORECAST

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Sales forecast is computed monthly for the first year and annually for the second and third year.

Table 10: Sales Forecast for three consecutive years

SALES PROJECTION / FORECAST

Year Month Sales Collection

85000
Month 1

98000
Month 2

100000
Month 3

120000
Month 4

110000
Month 5

130000
Month 6

110000
Month 7

122000
Month 8

150000
Month 9

120000
Month 10

135000
Month 11

160000
Month 12

2014 Total Year 1 1,440,000

2015 Total Year 2 (increase by 2%) 1,468,800

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2016 Total Year 3 (increase by 3%) 1,512,864

CASH COLLECTIONS FOR SALES

In the month of sale 90%

1 month after sale 10%

2 months after sale -

Total 100%

3.8 MARKETING STRATEGY

3.8.1 Product or service strategy

 Brand
 Quality

 Design

 Packaging, protection, ease of use

 Product differentiation, attractive to customer, product safety

 Labeling
 After sales service.
 Delivery services (carriage outward cost)

3.8.2 Price strategy (choose one strategy)

1. Cost based pricing

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Selling Price = Total cost per unit + Mark up

2. Value based pricing

A business using value-based pricing must research the price the customer is
willing to pay for the product. Attach: survey form

3. Competition based pricing

A business bases its price largely on the competitor’s prices. Prepare table to
compare business selling price with competitors selling price.

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Chapter 3: Marketing Plan

3.8.3 Distribution strategy

1. Direct to customer

2. Selling through retailers

3. Selling through wholesalers

4. Selling through wholesalers and retailers or agent

3.8.4 Promotion strategy

1. Advertising

2. Sales promotion

3. Public relations

4. Publicity

3.9 MARKETING PERSONNEL

The position listed here are confined to marketing staff only

Table 11: Position and number of personnel

Position Number Of Personnel

Sales Assistance 1

Total 6

3.10 SCHEDULE OF TASKS AND RESPONSIBILITIES

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Table 12: Schedule of Tasks and Responsibilities

Position Task and Responsibilities

To plan and monitor the promotion

strategic of the business
Sales Assistance

3.11 SCHEDULE OF REMUNERATION

The remuneration schedule that list the salary and wage structure for each position.
Additionally, it should include the contribution that a company has to allocate to different
provident funds like Employees Provident Fund (EPF) based on the rate stipulated in the Third
Schedule of the EPF Act 1991 (www.kwsp.gov.my) and Social Security Organization (SOCSO)
contribution to be paid is based on the SOCSO Contribution Schedule (www.perkeso.gov.my).

Table 13: Schedule of Remuneration

POSITION No. Monthly EPF SOCSO Total

Salary Contribution Contribution

(RM) (RM) (RM) (RM)

Sales Assistance 1 2200 143 37.65 2380.65

TOTAL 1 XX XX XX XXX

3.12 LIST OF OFFICE FURNITURE AND FITTINGS

A list of office furniture is necessary for budget considerations.

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Table 14: List of Office Furniture and Fittings

Item Quantity Price/per unit Total Cost

(RM) (RM)

File cabinet 2 units 800 1600

Total 1600

3.13 LIST OF OFFICE EQUIPMENT

A list of office equipment is necessary for budget considerations and required for maintenance
expenses

Table 15: List of Office Equipment

Item Quantity Price/per unit Total Cost

(RM) (RM)

Total

3.14 MARKETING BUDGET

MARKETING BUDGET
Fixed

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Assets Monthly Other Total
Expenses Expenses Expenses
Particulars (RM) (RM) (RM) (RM)
Fixed Assets
Signboard - -
Motor Vehicle (type of m.vehicle) - -
Office Furniture and fittings (refer
table) - -
Office Equipment (refer table) - -

Working Capital
Remuneration (refer table) - -
Travelling expenses - -
Office supplies - -
Stationaries
Other Expenditure
- -
Pre-Operations
Deposit (rent, utilities, etc.) - -
Business Registration & Licences - -
Insurance & Road Tax for Motor
Vehicle - -
Other Pre-Operations Expenditure - -
Total - - - -

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