Seminar assignments - Marketing Planning and Implementation PDF

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MKW3121 Marketing Planning and Implementation Marketing Plan for Lecturer Tutor : Dr Nicholas Dr Sharon Tutorial Time : Monday, 11am Wednesday, 1am Word Count : 6, 250 Prepared : Team Chameleon Foo Aun Hua 25869604 Leong Shian Wey 25069519 Low Way Onn 22824529 Tham Jing Wei, Gabriel 26421674 1 Execu...

Description

MKW3121 Marketing Planning and Implementation

Marketing Plan for

Lecturer & Tutor

: Dr Nicholas // Dr Sharon

Tutorial Time

: Monday, 11am // Wednesday, 1am

Word Count

: 6, 250

Prepared by: Team Chameleon Foo Aun Hua

25869604

Leong Shian Wey

25069519

Low Way Onn

22824529

Tham Jing Wei, Gabriel 26421674

1

Executive summary The purpose of this report is to produce an effective marketing plan for Touch ‘n Go (TnG) to extend its customer reach and stay relevant in the market over the next 2 years. Touch ‘n Go Sdn Bhd (TnGSB) is a company that allows users to perform cashless micro-transactions in the most simple and convenient way possible. A detailed PESTLE analysis is used to analyze the macro-environment of the industry. Based on Porter’s five forces analysis, the industry is concluded to be profitable and attractive in electronic highway sector and in competitive position in retail sector. TNG face several main competitors, such as Visa, MasterCard, ONECARD and Sunway Pal.

TNG customers are categorized into three segments in business-to-business market – micro, small medium enterprises and conglomerates; business-to-consumer markets are categorized in to 4 markets – young techies, techies, old techies and tech novice. Internal analysis capability analysis of TNG showing that TNG has strong non-marketing capabilities in human resources and it offers strong products to its customers. However, TNG has weak marketing communication strategy, which causes low brand awareness of TNG.

In the proposed marketing plan, “Young Techies” and “Techies” are chosen as the target market. TNG will focus on its value proposition and position itself as a high security and high ease of transaction micropayment company. The marketing mix revolves around 7ps (Price, Product, Place, Promotion, Physical Evidence, People, and Process). To further create value to the customer, Touch for More and Touch & Connect campaign is created.

IMC tools used in the program include social media, event marketing and broadcast, supported with an execution timeline for each IMC tools. A detailed cost budgeting has been developed for the two-years marketing plan to ensure MYR 3.5 million budgets given are fully utilized. The report ends with a detailed monitoring and controlling plan to ensure the marketing plan runs effectively along the five years period. A contingency plan, such as reallocation of budget to focus more on Touch for More strategy, is suggested to ensure the marketing objectives are reaches.

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Contents 1.0 Introduction................................................................................................................................... 1 1.1

TnG’s Business Definition and Scope............................................................................1

1.2

Purpose of Marketing Plan................................................................................................. 1

2.0

Situation Analysis....................................................................................................................... 2

2.1

Macro Environment................................................................................................................... 2 2.1.1

Socio-cultural and demographics............................................................................ 2

2.1.2

Economic.......................................................................................................................... 4

2.1.3

Legal................................................................................................................................... 5

2.1.4

Technological.................................................................................................................. 5

2.2

Industry analysis: Porter’s Five Forces..........................................................................6

2.3

Competitor Analysis.............................................................................................................. 7

2.3.1

Visa..................................................................................................................................... 7

2.3.2

MasterCard...................................................................................................................... 8

2.3.3

ONECARD...................................................................................................................... 9

2.3.4

Sunway Pals.................................................................................................................. 10

2.4

Customer Analysis and Segmentation......................................................................... 10

2.5 Internal Analysis........................................................................................................................ 14 2.5.1 Internal Capabilities......................................................................................................... 14 2.5.2 2.6

Critical Success Factor............................................................................................. 16

SWOT and Problems & Issues Statement..................................................................17

2.6.1

SWOT analysis............................................................................................................ 17

2.6.2

Problems & Issues Statement................................................................................. 17

3.0

Marketing Objectives.............................................................................................................. 18

4.0

Target Market & Targeting Strategies............................................................................... 18

5.0

Value Proposition for the Target Market and Desired Positioning........................19

5.1

Value proposition................................................................................................................. 19

5.2

Desired positioning............................................................................................................. 19

6.0

Marketing Mix and other Value Creating Strategies...................................................21

6.1

Product..................................................................................................................................... 21

6.2

Price.......................................................................................................................................... 21

6.3

Place.......................................................................................................................................... 22

6.4

Promotion............................................................................................................................... 22

6.4.1

Online advertising...................................................................................................... 22

6.4.2

Event marketing.......................................................................................................... 22

6.4.3

Broadcast....................................................................................................................... 23

6.5

People....................................................................................................................................... 23 3

6.6

Process..................................................................................................................................... 23

6.7

Physical evidence................................................................................................................. 23

6.8

Value creating strategies.................................................................................................... 24

6.8.1

Touch for more............................................................................................................ 24

6.8.2

Touch & Connect........................................................................................................ 24

7.0

Action Plan – Integrated Communication Strategy.....................................................24

7.1

Place.......................................................................................................................................... 24

7.2

Promotion............................................................................................................................... 25

7.2.1

Social media advertising.......................................................................................... 25

7.2.2

Event marketing.......................................................................................................... 26

7.2.3

Broadcast....................................................................................................................... 26

7.2.4

Direct Marketing......................................................................................................... 26

7.3

Customer relationship management..............................................................................26

7.3.1

Loyalty program.......................................................................................................... 26

7.3.2

Mobile application – Touch & Connect............................................................. 27

7.4

Timeline.................................................................................................................................. 28

8.0

Budget/profitability Analysis............................................................................................... 29

9.0

Monitoring and Control......................................................................................................... 30

9.1

Contingency Plan................................................................................................................. 31

References................................................................................................................................................. 32

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1.0

Introduction

1.1

TnG’s Business Definition and Scope

Touch ‘n Go Sdn Bhd (TnGSB) is a company that allows users to perform cashless micro-transactions in the most simple and convenient way possible. Currently, TnGSB holds exclusive intellectual property rights to the Touch ‘n Go (TnG) system, which is now the only Electronic Toll Collection (ETC) operator on all highways in Malaysia and the main payment system for major public transportations in Malaysia. Aside from being a cashless payment system for highways and public transportation, TnG has diversified their services by forming alliances with various branded retail outlets that could associate with TnG’s mission of providing secure, swift and convenient cashless payment mode to all. This is done with the hope to enhance their presence nationwide to achieve their vision of being the number one electronic payment system for micropayments towards realizing a cashless society in the near future (TnG, 2016).

1.2

Purpose of Marketing Plan

There is a growing opportunity in the market as Malaysian consumers are constantly increasing their demand for convenience on their daily routines and seeking safer ways of transaction by reducing the need to carry cash. TnG can leverage on being a pioneer of cashless transaction in the region (Euromonitor International, 2015). Hence, the purpose of this report is to produce an effective marketing plan for TnG to extend its customer reach and stay relevant in the market over the next 2 years.

This two-year marketing plan comprise of succinct marketing objectives and strategies that will be developed to ensure that TnG remains the pioneer of cashless transaction and to reach out to potential customers that were not in their former reach. The report will further incorporate TnG’s situational analysis, their opportunities, and issue statement to develop an appropriate marketing strategy to reach out to its market for the next two years.

1

2.0

Situation Analysis

2.1

Macro Environment

2.1.1 Socio-cultural and demographics According to Euromonitor International (2015), Malaysia’s per household annual disposable income is RM85,061 in 2014, and it has reported a growing average annual real rate of 4.6% per year since 2009. This implies that Malaysian household will consume more given that their disposable income has increased almost every year. This gives a positive effect on various industries such as retail, motor vehicle and housing. According to Chart 1, the mean of monthly household consumption expenditure has increased by 9.8% from RM2,190 in 2009 to RM3,578 in 2014. It has also been found that W.P. Putrajaya recorded the highest mean monthly household consumption expenditure (RM5,627), followed by W.P. Kuala Lumpur (RM5,559) (Department of Statistics Malaysia, 2015).

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Chart 1: Mean monthly household consumption expenditure by state (Department of Statistics Malaysia, 2015).

This reflect the rising living standards in Malaysia, which will allow households to channel their income to discretionary spending categories like education, clothing and communications. From Chart 2, there exists a “youth bulge” that creates a large segment of Malaysian consumers. Research has revealed that the highest concentration of total gross income in Malaysia falls in the age band of 15 – 32.

Chart 2: Malaysia total income in 2014 (Euromonitor, 2015) Consequently, this age band of 15 – 32 are the heavy users of smartphones in Malaysia (Mohd Mothar, Abu Hassan, Haji Hassan & Nizam Osman, 2013). As the culture of smartphone is heavily immersed in Asian countries, it has been found that Malaysian consumers rapidly adopt the mobile lifestyle. Even rural consumers are adopting such lifestyles to catch up with the latest trends (Euromonitor International, 2016). Besides that, Malaysian consumers are increasingly trusting of Internet retailing and this is particularly applicable on younger, more technologically savvy consumers. Hence, this will increase the demand of consumer in purchasing goods

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and services in more sophisticated method that offer portability and connectivity to match their lifestyles.

2.1.2 Economic Retailing business is growing stably as compared to previous years. As the implementation of the Goods and Services Tax (GST) are now introduced nationwide, consumers are slowly adopting the implementation of tax (Euromonitor International, 2016). According to Table 1, Department of Statistics Malaysia (2016) reported an increase of RM6.7 billion in sales value compared to last quarter as of January 2016 and this implicates that the growth of retail business is still an incremental gain. For traditional retailing, payments are still mainly being done by cash. However, there is a growing number of consumers who use credit or debit cards for safety reasons and general movement away from cash.

In the retailing business, the business cycle trend has come to Internet retailing. In Malaysia, it has been reported that Internet retailing sales has increased 15% to MYR1,866 million in 2015. Although some Malaysian consumers remain reliant on physical stores, the emerging trend of Internet retailing is changing the trend of the retail business. Moreover, it has been concluded that mobile Internet retailing continues gaining share, reaching a 12% share of overall Internet retailing value sales in 2015. In 2016, The Star (2016) reported that digital influences 34% of consumer purchases and financial services industry is planning to invest about RM1.1bil between 2015 and 2020 to enhance payment card infrastructure, including to provide broader coverage of payment transactions (The Star, 2016).

According to Department of Statistics Malaysia (2016) as shown in Table 1, sales value of motor vehicles sub-sector went up by 6.9% to RM36.3 billion and number of persons engaged registered an increase of 2.6%. This implicate that as more motor vehicles are purchased, consumers will be likely to engage in toll transactions which will benefit TnG.

4

Table 1 : Performance of distribution trade sector

2.1.3 Legal As the consumers are slowly adapting to the implementation of toll hikes in January 2016, Association of Malaysian Highway Concessionaires further announced that all 21 tolled highways in the Klang Valley are expected to be fully electronic by the end of 2016. This is to provide convenience to consumers and also to move towards cashless transaction (Abas, 2016). Therefore, this could benefit TnG, due to the exclusivity for toll transaction, government policy on cashless toll will lead to major increase of TnG cards’ usage.

2.1.4 Technological In Malaysia, mobile phone network has evolved from 2G to 3G and to LTE. Now, a faster speed of 4G is introduced to data plan subscribers. 4G networks allow consumers to connect to the internet at a faster speed compared to 2G or 3G networks, satisfying consumers’ desire for “Always On” connection (Euromonitor International, 2016). Hence this technology allows consumer to engage into mobile lifestyle in terms of work, entertainment and shopping. It also makes mobile transactions easier due to the fast speed connectivity.

Other than technology advancement in mobile networks, the southern state in Malaysia, Johor is testing on the Vehicle Entry Permit (VEP) on the Causeway and second bridge that links Malaysia to Singapore. The Johor government is planning to issue the smart code radio frequency identification (RFID) tags which allows cameras 5

and sensors to identify vehicle number plates and RFID tags when the car is passing through the lane. On top of that, the fee of entry could be paid via TnG (Asia One, 2016). This is a new technology that will soon be implemented to the infrastructure of tolls in Malaysia, and it could benefit both TnG and consumer for convenience and technology advancement.

2.2

Industry analysis: Porter’s Five Forces

Diagram 1 : Components of Porter’s five forces

Forces

Degree of threats

Elaboration

Competitive

or power Low-medium

Competitive rivalry is low in terms of highway operations as monopoly is applied in this industry.

rivalry

Hence, there

are very

few competitors. The

competition is medium in the retail industry; customers have various payment methods such as Bargaining power of buyers

Medium

cash, credit...