3.1 MARKETING DEFINITION

Marketing is an ongoing process of planning and executing the marketing mix for

products, services or ideas to create exchange between individuals and organizations.

Marketing tends to be seen as a creative industry which includes advertising,

distribution and selling. Good marketing must be able to create a “proposition” or set of

benefits for the end customer that delivers value through products or services.

Marketing is the performance of the business activities that direct the flow of goods and

services from the procedure to the consumer or user. Marketing are determine the

price, market size, target market, sale forecast and promotion performance.

Marketing activities is toward fulfilling customer’s needs and wants, as well as

contributing toward profit for the business. In all business activities, marketing plays an

important role in order to ensure the business survives the competition in today’s

market. A good management had to concern and make sure that plans run smoothly

and achieve its target. Marketing is a critical activity in any business because it acts as

the backbone to the total business effort in order to achieve profitable outcome.

3.2 MARKETING OBJECTIVES

A marketing objective is a statement of what the appointed company wants to

achieve through the marketing activities. In order for Freezy Freeze Ice Blended, we

have set up a few marketing objectives:

3.2.1 SHORT TERM OBJECTIVES

To introduce our business and gain confident from the public.

To increase our sales services to obtain maximum profit with the usage of

effective marketing planning.

To ensure our company will generate high quality goods for the satisfaction of

our customer depending on the business capability.

3.2.2 LONG TERM OBJECTIVES

Become a business that cam create a challenge for another competitor in

business field.

To extent our services to wider areas in phase, from West Malaysia and finally to

Thailand and Singapore.

3.3 MARKETING PLAN

The success of each business fully dependent on the success of the company

that offers the products wanted or needed by consumer. Products offered must be

suitable and coveted by the customers. Marketing is a collection of strategies, so to

speak, employed by the accordance to the ethics and religion in the region.

To conclude, the objective of marketing is to increase the efficiency of the

business operation by having a better and wider distribution of long tern loyal

consumers who will ensure the success of the business, evident by the desirable

amount of profit gained and the absence o flosses incurred.

3.4 MARKETING CONCEPT

The marketing concept visualizes the customer as the crucial point of all

marketing activities. An organization or business that practices the marketing concept

studies and integrate all activities within the firm toward helping the customer fulfill these

needs and wants while at the same time corresponding to the business to the

objectives.

The main objectives to marketing concept that can be indentified are:

Consumer orientation

Integrated effort

Correspondence with the business objectives

3.4.1 CONSUMER ORIENTATION

Customers are our clients. Their needs and wants will be guidelines to conducts

our business accordingly. Therefore, we must obtain as much information as possible

about our existing and potential customers. The priority is not just placed on finding out

what their needs are, but also to maximize our ability to serve those needs.

3.4.2 INTEGRATED EFFORT

Here, we are concerned with the balancing of making profit and providing the

highest quality work that we are able to. We must orient all our actions towards ensuring

that each and every customer that comes to obtain our services remains our customers.

Loyal or long tern customers are pivotal to avoid the uncertainties of the competitors’

developments and the economic progress. Each member of the company should also

strive towards making the same efforts, coordinating and cooperating with one another

to realize the goals together.

3.4.3 CORRESPONDENCE TO THE BUSINESS OBJECTIVES

We must ensure that whatever we strive towards achieving is in line with the

major business objectives, whether long term of short term. Also, to retain our hold on

the principles we decided on upon the commencement of the business. All the

marketing strategies must be safely ensconced within the ethics and guidelines of

business in Islam and the community at large.

3.5 TARGET MARKET

A target market is a group of potential buyers who share the common needs and

characteristics that our business aims to satisfy by servicing their needs and wants

through our products and services. As a results, our business will be using differentiated

marketing strategies whereby we will target several market segment refers to a group of

individuals or representing of business within a market that share one or more common

characteristics.

It is only by identifying the target market that business can offer their products to

current or potential customer s in the market and generates the desired sales. To top it

off, by doing this business manage to avoid the wastage of resources and manage to be

more frugal in order to sustain a higher company profit. This is not to say, however, that

the groups that are not targeted are neglected, because whatever sales they make still

amount to additional income for the firm. It is just means that the target group has more

likeness to become customer, and therefore they should be paid more attention for

optimization.

As an entrepreneur, we must have a good planning about a target market of our

business that can be satisfied by the business for our group customers. The planning of

the target market must be referring to what are customers or groups needs and wants.

We must group the customers who had different needs to provide supply a good quality

oyster to all level of society without concern about their ages of life. They should be

studied often as the trends and preferences might change due to many factors like

modernization, outside influences and the economy’s ups and downs.

TARGET MARKET

No. Segmentation Variables/Bases1. Geographic Humid and tropical wet climate.

2. Demographic Gender: Male and Female.

Occupation:

Education: All level.

Income level: RM 1,000 and above.

Race: Multiracial

3. Psychographic Status: Single, married and divorce.

Preferences: Like something cool and refreshed drinks.

Sensitivity to price: Moderate.

Motives of purchase: Hot and thirsty.

Loyalty to product: Different and better.

MARKET SIZE

Total population of citizen in Melaka: 788,706 person.

Salary LevelRM 0 – RM 1,000 - 10% x 788,706 person = 78,870.60 person

RM 1,000 – Above - 90% x 788,706 person = 709,835.40person

* Freezy Freeze Enterprise has estimated, with this total population of Melaka citizen with salary of RM1,000.00 and above (709,835.40person), only 55 percents out of it have all the demographic, psychographic and behavioral factors which had been stated in the previous page that will accept these kind of concept and products of any foodservice establishments. Thus, it is only 78,870.60 people.

We have estimated these percentages of our target market, Melaka’s citizen based on their salary level (RM1,000.00 and above) and spending pattern will buy our products as below:

Average spending pattern: RM20.00/pax

Thus,

RM20.00/pax x 709,835.40 person = RM 14,196,708.00

Total Market Size

Freezy Freeze has estimated its potential market sales for the first year based on the target market size in Melaka itself is RM14,196,708.00

COMPETITION

The Expected Competitors

No.Name of

CompanyStrengths Weaknesses

1. Cool Blog - Established since

2005 .

- Various product

lines.

- Well known to the

market.

- Expensive due to

well established

brand.

2. Each a Cup - Established since

2009

- Poor promotion.

Freeze Freezy

No.Name of

CompanyStrengths Weaknesses

1. Freezy Freeze - Reasonable

price.

- Specialty product

(using local

fruits).

- Effective

promotion.

- Quality Product.

- New to the market.

- Not yet established.

MARKET SHARE

Market Share before the Entry of Freezy Freeze

Competitors Market Share Sales Estimated (Annually)

Cool Blog 60% RM4,455,000.00

Each a Cup 40% RM2, 970,000.00

GRAND TOTAL 100% RM7, 425,000.00

Percentage Before Entrance

Adjusted of Market Share after the Entry of Freezy Freeze

Competitors Market Share Sales Estimated (Annually)

Cool Blog 50% RM3, 712,500.00

Each a Cup 34% RM2, 524,500.00

Freezy Freeze 16% RM1, 188,000.00

GRAND TOTAL 100% RM7, 425,000.00

Percentage After Entrance

SALES FORECAST

Year 1 – 2010

Year 2 – 2012

Sales increase by 10% (497,475.00 x %) = RM374, 294.40

Year 3 – 2013

Sales increase by 20 % (542,700.00 x 101.8%) = RM381, 031.69

Forcast based on monthly selling

Month Monthly Sales (RM)January 13,950.00February 25,200.00

March 41,850.00April 40,500.00May 41,850.00June 40,500.00July 41,850.00

August 41,850.00September 40,500.00

October 41,850.00November 40,500.00December 41,850.00

Grand Total 452,250.00

January

Flavor   Total Cup Sold Total saleschocolate   330   990  Fretto Chocolate   300   900  Vanilla   200   600  Cuppucino   280   840  Latte   250   750  chocolate Oreo 300   900  Grape   250   750  Honeydew 175   525  Sour Plum 120   360  Kiwi   140   420  Apple   217   651  Orange   245   735  Pineapple 147   441  Lime   140   420  Lemon   210   630  Strawberry 266   798  Sour Soup 191   573  Icez Rainbow 224   672  Blue Icez   154   462  Passion Fruit 175   525  Cendol   126   378  TropicalPunch   210   636  Total   4650   13950  

February

Flavor   Total Cup Sold Total saleschocolate   660   1980  Fretto Chocolate   600   1800  Vanilla   400 1200  Cuppucino   560   1680  Latte   500   1500  chocolate Oreo 600   1800  Grape   500   1500  Honeydew 350   1150  Sour Plum 240   720  Kiwi   280   840  Apple   434   1302  Orange   490   1470  Pineapple 294   882  Lime   280   840  Lemon   420   1260  Strawberry 532   1596  Sour Soup 400   1200  Icez Rainbow 300   900  Blue Icez   342   1020  Passion Fruit 180   540  Cendol   200   600  Tropical Punch   351   1053  Total   8400   25200  

March

Flavor   Total Cup Sold Total saleschocolate   990   2970  Fretto Chocolate   630   2700  Vanilla   840   1800  Cuppucino   750   2520  Latte   900   2250  chocolate Oreo 750   2700  Grape   525   2250  Honeydew 360   1575  Sour Plum 420   1080  Kiwi   651   1260  Apple   435   1953  Orange   441   2205  Pineapple 420   1323  Lime   630   1260  Lemon   798   1890  Strawberry 573   2394  Sour Soup 672   1719  Icez Rainbow 462   2016  Blue Icez   525   1386  Passion Fruit 378   1575  Cendol   630   1134  Tropical Punch   600   1890  Total   13950   41850  

April

Flavor   Total Cup Sold Total saleschocolate   1010   3030  Fretto Chocolate   900   2700  Vanilla   600   1800  Cuppucino   840   2520  Latte   750   2250  chocolate Oreo 900   2700  Grape   750   2250  Honeydew 554   1662  Sour Plum 340   1020  Kiwi   400   1200  Apple   631   1893  Orange   715   2145  Pineapple 421   1263  Lime   400   1200  Lemon   610   1830  Strawberry 778   2334  Sour Soup 553   1659  Icez Rainbow 652   1956  Blue Icez   442   1326  Passion Fruit 554   1662  Cendol   500   1500  Tropical Punch   830   2490  Total   13500   40500  

May

Flavor   Total Cup Sold Total saleschocolate   990   2970  Fretto Chocolate   900   2700  Vanilla   600   1800  Cuppucino   840   2520  Latte   750   2250  chocolate Oreo 850   2520  Grape   800   2400  Honeydew 530   2550  Sour Plum 365   1095  Kiwi   400   1200  Apple   971   2013  Orange   730   2190  Pineapple 446   1338  Lime   400   1200  Lemon   650   1950  Strawberry 790   2370  Sour Soup 581   1743  Icez Rainbow 670   2010  Blue Icez   464   1392  Passion Fruit 520   1560  Cendol   383   1149  Tropical Punch   630   1890  Total   13950   41850  

June

Flavor   Total Cup Sold Total saleschocolate   1000   3000  Fretto Chocolate   910   2730  Vanilla   640   1920  Cuppucino   800   2400  Latte   700   2100  chocolate Oreo 950   2850  Grape   750   2250  Honeydew 554   1662  Sour Plum 340   1020  Kiwi   431   1293  Apple   600   1800  Orange   710   2130  Pineapple 426   1278  Lime   410   1230  Lemon   600   1800  Strawberry 770   2310  Sour Soup 561   1683  Icez Rainbow 650   1950  Blue Icez   444   1332  Passion Fruit 554   1662  Cendol   530   1590  Tropical Punch   800   2400  Total   13500   40500  

July

Flavor   Total Cup Sold Total saleschocolate   900   2700  Fretto Chocolate   990   2970  Vanilla   640   1920  Cuppucino   800   2400  Latte   700   2100  chocolate Oreo 950   2850  Grape   700   2100  Honeydew 575   1725  Sour Plum 300   900  Kiwi   480   1440  Apple   600   1800  Orange   786   2358  Pineapple 400   1200  Lime   461   1383  Lemon   630   1890  Strawberry 798   2394  Sour Soup 570   1710  Icez Rainbow 675   2025  Blue Icez   460   1380  Passion Fruit 527   1581  Cendol   370   1110  Tropical Punch   638   1914  Total   13950   41850  

August

Flavor   Total Cup Sold Total saleschocolate   920   2760  Fretto Chocolate   970   2910  Vanilla   600   1800  Cuppucino   840   2520  Latte   720   2160  chocolate Oreo 930   2790  Grape   720   2160  Honeydew 555   1665  Sour Plum 340   1020  Kiwi   440   1320  Apple   626   1878  Orange   760   2280  Pineapple 460   1380  Lime   401   1203  Lemon   628   1884  Strawberry 800   2400  Sour Soup 550   1650  Icez Rainbow 695   2085  Blue Icez   200   1200  Passion Fruit 587   1761  Cendol   378   1134  Tropical Punch   638   1914  Total   13950   41850  

September

Flavor   Total Cup Sold Total saleschocolate   950   2850  Fretto Chocolate   960   2880  Vanilla   620   1860  Cuppucino   820   2460  Latte   725   2175  chocolate Oreo 925   2775  Grape   740   2220  Honeydew 564   1692  Sour Plum 330   990  Kiwi   441   1323  Apple   590   1770  Orange   720   2160  Pineapple 426   1278  Lime   410   1230  Lemon   650   1950  Strawberry 720   2160  Sour Soup 551   1653  Icez Rainbow 660   1980  Blue Icez   448   1344  Passion Fruit 550   1650  Cendol   520   1560  Tropical Punch   810   2430  Total   13500   40500  

October

Flavor   Total Cup Sold Total saleschocolate   920   2760  Fretto Chocolate   970   2910  Vanilla   610   1830  Cuppucino   830   2490  Latte   750   2250  chocolate Oreo 900   2700  Grape   700   2100  Honeydew 575   1725  Sour Plum 320   960  Kiwi   460   1380  Apple   620   1860  Orange   766   2298  Pineapple 420   1260  Lime   441   1323  Lemon   650   1950  Strawberry 778   2334  Sour Soup 390   1170  Icez Rainbow 655   1965  Blue Icez   420   1260  Passion Fruit 547   1641  Cendol   378   1134  Tropical Punch   630   1890  Total   13950   14850  

November

Flavor   Total Cup Sold Total saleschocolate   940   2820  Fretto Chocolate   970   2910  Vanilla   600   1800  Cuppucino   840   2520  Latte   735   2205  chocolate Oreo 915   2745  Grape   710   2130  Honeydew 594   1782  Sour Plum 310   930  Kiwi   461   1383  Apple   570   1710  Orange   740   2220  Pineapple 416   1248  Lime   420   1260  Lemon   620   1860  Strawberry 750   2250  Sour Soup 541   1623  Icez Rainbow 670   2010  Blue Icez   438   1314  Passion Fruit 560   1680  Cendol   510   1530  Tropical Punch   820   2460  Total   13500   40500  

December

Flavor   Total Cup Sold Total saleschocolate   930   2790  Fretto Chocolate   960   2880  Vanilla   620   1860  Cuppucino   820   2460  Latte   720   2160  chocolate Oreo 970   2790  Grape   690   2070  Honeydew 585   1755  Sour Plum 300   900  Kiwi   480   1440  Apple   640   1920  Orange   746   2238  Pineapple 400   1200  Lime   461   1383  Lemon   658   1974  Strawberry 770   2310  Sour Soup 395   1185  Icez Rainbow 650   1950  Blue Icez   420   1260  Passion Fruit 547   1641  Cendol   375   1125  Tropical Punch   633   1899  Total   13950   41850  

Freezy Freeze had identified factors that influence customers’ buying power:

i) Customer awareness

Freezy Freeze has just started its operation in January 2011, so it will takes a while to get customers attention.

ii) Seasonal Factors

Holidays and Observances:1 Jan New Year's Day

1 Feb Federal Territory Day

3 Feb Chinese Lunar New Year's Day

4 Feb Second day of Chinese Lunar New Year

16 FebMac

The Prophet Muhammad's BirthdaySchool Holiday

1 May Labour Day

2 May 'Labour Day' observed

17 MayMay

Wesak DaySchool Holiday

4 Jun The Yang di-Pertuan Agong's Birthday

31 Aug Hari Raya Puasa Day 1

  

31 Aug National Day

1 Sep Hari Raya Puasa Day 2

16 Sep Malaysia Day

26 Oct Deepavali

7 Nov Hari Raya Haji

27 NovNov & Dec

Muharram/New YearSchool Holiday

24 Dec Christmas Eve

25 Dec Christmas Day

26 Dec 'Christmas Day' observed

31 Dec New Year's Eve

MARKETING STRATEGY

The marketing strategy consists of 4P’s of marketing; product, price, place (distribution) and promotion.

1. Product/Service Strategy

i. Brand

- Our product name is Freezy Freeze.

- The name is derived from our specialty of beverage.

- It is easy to remember and commercialise.

ii. Quality

- We use very high quality of raw materials.

- We used local fruits for our product.

- Our product also proven HALAL by JAKIM.

iii. Design

- Our product is designed to be simple yet can enhance people’s appetite.

iv. Packaging

- We have two size of packaging (plastic cup) for beverage; large and small.

v. Protection

- We use plastic cup that have cover on the top to maintain our product quality.

- The packaging materials of our beverage product are made from high quality of resources to avoid the effect of plastic.

- Every perishable item like ours fruits is stored in the chillers to maintain the freshness.

vi. Ease for Use

- Our packaging; plastic cup is easy to use and durable.

- When customer purchases our product, it is ready to be drink.

vii. Product Differentiation

- Brain Freezer is a tasty homemade and secret recipe.

- It uses local fruits.

- The fruit is inserting inside the product for customer satisfaction.

viii. Attractive To Customers

- Our beverage packaging; plastic cup are design in two sizes; large and small.

- Attractive colours are use for our packaging.

ix. Product Safety

- Our packaging or take away cup can be recycling back in a way to save and preserve the environment.

- Easy to bring anywhere.

- The cup is design not to be danger for children below 3 years old.

x. Labelling

- Our product item is labelled with our logo.

2. PRICING STRATEGY

We use cost-based pricing strategy

It is based on the total cost of the product plus an amount of mark-up needed.

It simplest and widely used pricing strategy.

Regular cupPrice = total cost per unit + mark up (100%) = RM2.50 + RM0.50 = RM3.00

3. DISTRIBUTION STRATEGY

Distribution strategy is aimed at establishing a structured and controllable distribution system to ensure the product offered reaches the target customer.

We had chosen the direct marketing channel or Channel One.

Freezy Freeze Customer

4. PROMOTION STRATEGY

i. Advertising

Through internet; our own website.

Printed media such as magazines and news paper.

Pamphlet and flyers.

Yellow pages.

Signboard.

Banner

ii. Sales Promotion

Opening sales promotion – for the first two weeks, our promotion is buying 2 cups and gets free one cup.

Free sample will be given to our customers to experience the taste of our product.

We take any order through our website or hotline.

MARKETING BUDGET

No. DescriptionFixed Assets

Expenses(RM)

Monthly Expenses

(RM)

Other Expenses

(RM)

1. Signboard 500.00

2. Labelling 500.003. Sales Promotion 1,000.004. Advertising 2,500.005. Business Card 200.006. Grand Opening 600.00

Total 500.00 1,500.00 3,300.00Grand Total 5,300.00