ETR Marketing PLAN 2 - NOTES PDF

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3. MARKETING PLAN 3.1. INTRODUCTION TO MARKETING Marketing is a business function and set of processes involved in delivering, creating and communicating value to customers, followed by managing customer relationships, resulting in mutual benefit for the business and its stakeholders. In addition, marketing is also refers to find out consumers’ needs and supplying various goods and services to the final consumers or users to satisfy needs. Basically, marketing is the performance of business activities that run by a company and it will direct the flow of goods and services from producers to consumers or users. There are some types of marketing the first one is traditional marketing, digital marketing uses the internet, social media marketing and last but not least is mobile marketing. The company or a marketer can choose any marketing types in their business in order to offer customers the best marketing experience. Traditional marketing includes offline channels. For examples, face to face selling, print advertisements, direct mails, billboards, radio and television to gain the target market’s attention. Next is digital marketing that uses internet to reach its markets through video sites, social media, websites, emails, mobile phones, applications and forums. Then, social media marketing is one of the most popular platforms for businesses to connect with and engage their target market or audiences and it is an effective market research tool. This platform will work best when used in conjunction with other marketing strategies. Last but not least is mobile marketing. Mobile marketing is like the third screen because mobile is one of the main marketing channels today. It involves what with the consumers getting their information on the go. All these types of marketing can be used by marketers as long as they can reach the goal of customers.

3.2. PRODUCT AND SERVICE DESCRIPTION The product that our company has created is towel jacket. Basically, towel jacket is two in one product which is a combination of towel and jacket. This product is multifunctional where it can be used as a towel like it can absorb sweat and also as a jacket which is an outerwear. This product is also can be a solution to travellers that have problems with not enough space in packing stuffs in bags. The size of the towel jacket is very compact and it can be fold easily. This product can be used and suitable for every age group of people. The towel jacket product has an innovative design. It is designed beautifully yet functional at the same time. It is also a new but different product. The purpose of creating this product is to solve people especially travellers problems. So, it will be no use to design this towel jacket beautifully if it is not reaching the purpose of creating it. The design of the towel jacket is perfect as it is a combination of a towel and a jacket. Both of the items are obviously has different function but this towel jacket can make both of the items be in a one product. Next is the material of towel jacket is really easy to wash. The material of the towel is usually made from material that can really absorb liquid very well. Customers does not have to be worry with coffee, lipstick or even period stains that is attached on the towel because the stains will easily come out from the towel once it is washed as the material used is very high quality and again easy to be washed. Next is about the pricing. The price of the towel jacket is affordable for everyone. The prices for this product that our company has put is also really fit in what is currently available now as it is not too pricey and everyone can purchase it. It is also not going to be sold in a very cheap price as the material used to make this product is high quality and the process to create this product is not easy. Instead, our company will make sure that everyone can purchase and use this towel jacket product. In addition, the place that the towel jacket product will be sell is at the shopping malls and any sport stores. These two places would be our target places because our customers especially travellers will go to these kind of places to find this product or any holiday’s stuffs. Last but not least is the requirement of the towel jacket. The towel jacket product that our company has created is made by special equipment. The equipment that is used to create this product is high quality and the towel jacket product will not be easily damaged even it has been use for several years.

3.3. TARGET MARKET The target market is one of the most important aspects in the market plan. These target customers are going to buy or purchase our product. The target markets of the towel jacket product are travellers. Mostly, travellers will be going to buy and bring the easiest and lightest holiday’s stuffs. The perfect example is the towel jacket. Our next target customers are college students. College students usually will need this kind of stuff as it will make their work become so much easier. This target customer will be going to purchase this towel jacket product as it is a simple and an affordable product. So surely they will love this product.

TARGET MARKET Travellers

PERCENTAGE 100%

3.4. MARKET SIZE Simple Travel is involved in selling towel jacket. The business has identified its own target market as the resident of the housing area within 20 km radius of the shopping malls and sport stores. There are two major market segments within the target area which are travellers. The amount of travellers is almost 40,000 living in the 20 km radius area. A survey showed that the travellers made purchases of about RM30,000 a week and RM120,000 a month on our towel jacket product. Based on this survey, Travelholic estimated the market size to be RM120,000 for a month. The business then proceeded to estimate the potential sales for the year as RM 1,440, 000 (i.e: RM120,000 x 12 months). Before estimating the final market size, the business took into consideration factors that may affect sales such as the season, New Year and school holdiday .Using this information, Travelholic estimate the market size to be only RM 1,200,000.

3.5. COMPETITORS In our business operating, there are many competitors that operate a same business like us. Competitors actually refer to other businesses that offer similar, substitute or an alternative products or services to the same target market. We have to analyze the strengths and weaknesses of our competitors in term of size, experience, years in business, financial ability and product line in order to compete together with them. Here we have identified some entrepreneurial that operate bakery business located in the same area: COMPANY Adidas

Universal Traveller

STRENGTH WEAKNESSES 1. It’s a well-known brand. 1. Premium price range 2. The company has a strong 2. Outsourced financial position. manufacturing 3. The company has diversified 3. Limited product line portfolio 1. Specially made for travelling 2. The company has already established

1. The price is quite expensive 2. Not for everyday use

3.6.

MARKET SHARE Market share refers to estimated potential sales of the business after taking into consideration of the market size and competitors influences. Based on our market size, RM890, 000 we can estimate our 20% share of market. The table below shows the market share ‘Travelholic’ before entered to market.

COMPANY Adidas Universal Traveller Total

PERCENTAGE (%) 60% 40% 100%

MARKET SHARE (RM) RM 720,000 RM 480,000 RM 1,200,000

The table below shows the market share ‘Travelholic’ after entered to market.

COMPANY Adidas Universal Traveller Travelholic Total

PERCENTAGE (%) 38% 29% 33% 100%

MARKET SHARE (RM) RM 450,000 RM 350,000 RM 400,000 RM1,200,000

3.7.

SALES FORECAST Sales forecast is expected purchases from the identified target market. There will be an increase in our sales every month for our one year forecast seems that the high demand for towel jacket in the market. There is a possibility that the customers need a better quality of the towel jacket and choose us as their new supplier. The following table shows the forecasted ell for the first year.

Month January February March April May June July August September October November December Total Year 1 Total Year 2 Total Year 3

Sales (RM) 40,000 30,000 33,000 32,000 34,000 36,000 31,000 33,500 29,500 28,000 33,000 40,000 400,000 440,000 460,000

Remark Chinese New Year Thaipusam Hari Raya Aidilfitri Agong’s Birthday Hari Raya Haji Merdeka Day Malaysia Day Prophet’s Muhammad Birthday Deepavali Christmas Day

3.8.

MARKETING STRATEGY 3.8.1 PRODUCT

Our company provides a good quality of product which is the towel-jacket product which is produce from a good quality of material. Other than that, the material that we use to make the towel-jacket is a very high quality material that can make customers wearing the towel-jacket in a long period of time. So, the customers do not have to be worry. The packaging of our towel-jacket product is closely interlinked with production, preservation, storage, transportation, and marketing. The packaging of the towel-jacket is really nice as it comes with a golden shiny box and a wrapping paper for the towel-jacket. It protects our product from the adverse effects of the environment. We expect that the package should not only protect the product but it is also can be used to put other things inside that depends on the customers’ creativity. Our business provides a clean environment and systematic company place or our physical store, which is very important for giving a view to our quality product. We produce the product with the cleanliness control and systematic. We will operate our physical store carefully to ensure that it's always been satisfy by our customers. In this business, we will be given a guideline for us to control our quality of products. To achieve the standard level of our product, we will make sure that our operation will operate according to the guideline given.

3.8.2 PRICE STRATEGIES In pricing strategy, we have chosen cost based pricing. Cost Based Pricing is based on the total cost of the product plus the standard mark-up. Price = total cost per unit x mark-up = 19.60 x (19.60 x 80%) = 19.60 + 15.68 = 35.28 = RM 35 So we have decided to sell our product at RM35.00. Pricing scheme is based on per unit for towel-jacket. The purposes we set low prices to our products are to ensure all of the potential customers are able to buy our product and also to make sure all of them are satisfy with the prices.

3.8.3. PROMOTION STRATEGIES We will do a grand opening at the first day Travelholic where we will invite families, friends and the people around our physical store. We start our marketing plan during the launching day by showing some of our towel-jacket collection. W e also provide discounts for every item on the same day. We will provide some foods and drink during our grand opening day. Therefore, the grand opening of travelholic will introduce customers and others about our company and product.

To promote our products, we also use flyers. Customers who are coming to the grand opening will be given flyers. By giving flyers, customer will be exposed about the background of our company and at the same time will recognize our product. Those are an important part of our

marketing efforts. Such ads will give us a medium for consistently getting our message and brand in front of a large number of potential customers. It will make up a large part of our target market.

Besides that, we will also be putting a beautiful signboard at our shop to attract the potential customers. Here, we choose light color which is pink colour that symbolizing our product is more to women so that the main potential customers will interest to come to our shop.

A. WEB PAGE

We develop a business web page for our company to enable people to access information about our company and products seems that Internet is the most important communication tool among the communities nowadays. All information regarding our business will be advertised in the homepage.

 INSTAGRAM

 FACEBOOK

B. SIGNBOARD

It's very important for each business to have a signboard to introduce the business and let everyone know the location of our physical store. Our business will have only one signboard that will be put in front of our office or our physical store.

C. LABEL

D. BUSINESS CARD

E. FLYERS

3.8.3. PLACE OR DISTRIBUTION STRATEGIES 1. Manufacturer Customer 2. Manufacturer RetailerCustomer For distribution strategy, we are using two types of distribution channel which is direct marketing channel and selling through retailers. For direct marketing channel, it is no intermediary to sell our product. We, ourselves directly will deal with the customers so that we can know them better.

Besides that, we also sell our product via retailer where will supply our product to them to sell it. Here, we will be supplying our product to shopping malls and sport stores. The shopping malls are at Tesco and Aeon Mall. For the sport stores are Decathlon and Sports Direct.com.

3.9.

LIST OF MARKETING PERSONNEL

Position Marketing manager Marketing Clerk

3.10.

No. of Personnel 1 1

SCHEDULE OF TASK AND RESPONSIBILITIES

Schedule of task and responsibility Task and Responsibilities Position Marketing Manager

1. Define the product concept 2. Develop marketing strategies 3. Determine target market

Marketing Clerk

4. Estimate the market size 1. Identify the competitors 2. Estimate the market share 3. Develop sales forecast

4. Prepare a marketing budget

3.11.

SCHEDULE OF REMUNERATION

POSITION

NO.

MONTHLY SALARY (RM) (A)

EPF (B) 12%

Marketing Manager Marketing clerk Total

1

2500

300

62.5

TOTAL AMOUNT (RM) (A+B+C) 2862.50

1 2

1500 4000

180 480

37.5 100

1717.50 4580

(RM) SOCSO (RM) (C) 2.5%

3.12 MARKETING BUDGET MARKETING BUDGET ITEMS FIXED ASSET

MONTHLY

OTHER EXPENSES

EXPENSES (RM) 1 500

Fixed Asset - Signboard Working Capital Salary

(EPF

&

SOCSO) -Marketing Manager

2862.50

-Marketing Clerk

1717.50

- Advertising Other - Grand Opening

5,000

- Business Card

135

- Flyers TOTAL

1,500

4,580

280 5,415...