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
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