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MARKETING PLAN FOR AAM CATERING ENTERPRISE

1) Executive Summary
ISMA Catering Enterprise was established in 2012, a small family-owned company
headquartered in Jitra, the northern area of Kedah. Its core business is providing
catering services for weddings, dinners and government official events. With the
kosher, fresh and hygienic oriented that makes ABC Enterprise more committed and
looking for the opportunity to provide the best quality of service to meet the
customers needs in total. After 2 years of operation, the management having
problem paying its workers when there is no reservation made at certain times. This
is because ABC Enterprise is a highly seasonal business where its greatest demand
will come during festive season and school holiday usually in March, June and
December. In the other months, all equipment and workers are idle. Thus the major
challenges for ABC Enterprise for the next 5 years is how to increase the demand
and fully utilize its resources during the off season.
To overcome this situation, ISMA Catering Enterprise will inject new menu into its
catering to serve as attraction to increase the demand regardless of what season.
The roasted lamb served with a "homemade mint sauce and also special lamb
sauce consist of mixture of the black paper and rosemary sauce. The goat is
imported from southern region of New Zealand with weight approximately 13 to 14
kg. The best grade of young lamb marinated with special recipe from our home chef
are available at extra cost of RM1000 for 200 pax. With this new menu, the company
hopes that the demand for catering services will be increase significantly in
forthcoming peak season.
2) Environmental Analysis
Founded as a catering service company, the ISMA Catering has involve in providing
catering service offers creative, high quality, fresh, kosher and hygienic food
presentation for government official events, wedding dinners and other special
events. As it is consider a startup company, thus marketing is critical to its success
and future profitability. Upon the first year of operation, catering services carried out
by the company has received an overwhelming response from consumers. To
ensure that the company continues to operate and making profit, the company is
thinking of the new product or menu to meet customer needs.
Marketing Environment
i. Competitive Forces the competitive in the catering business is very huge
and strong on a local and regional. This is based on the number of caterer in
Jitra alone, not less than 150. That does not include restaurant operators who
run a catering business as well. Thus the price competition in this business is
very critical. When we put a set of biryani at RM7.00, there will be another
caterer who put lower price until the minimum of RM5.00. One of the effective
way to counter this problem is to inject new menu to attract customers.
However, the traditional way to maintain customer reliability is by providing
hot dishes, clean equipment, unique banquet and continue the hygienic

MARKETING PLAN FOR AAM CATERING ENTERPRISE

practice after the event.


ii.

Economic Forces No doubt, nationwide many caterers has reduced their


overall budget including for promotion as they face the need to cut the
expenses. This trend are expected to continue as a weak and slow growth
economic forces, most caterer or other restaurant operators to focus more on
the quality food and the value for the customer.

iii.

Political Forces There are no expected political influences or events that


could affect the operations of ISMA Catering.

Sociocultural Forces todays society is no longer practice 100% the helping or


mutual cooperation culture in its community while holding the event such as wedding
ceremony, especially in the urban areas. Furthermore the number of guests invited
is small, thus catering service will be the first choice for their events compared to
rural areas.
3) Market Summary
Since it start up, ISMA Catering possesses good information about the market and
knows a great deal about common attributes of our customer. We will leverage this
information to better understand who is served, their specific needs and how ISMA
Catering can better provide the food servicing to our customer.

Market Analysis:

Potential Customer
Private Sector
Customer
Government
Customer
Other Customer
TOTAL

2012

2013

11%

250

278

25%
5%
14%

40
350
640

50
367
695

Growt
h

MARKETING PLAN FOR AAM CATERING ENTERPRISE

Market Needs
ISMA Catering is providing its customers with a progressive menu offering creative,
high quality, fresh, kosher and hygienic food. At this moment, ISMA Catering still
meeting the market needs of a wider menu offering for the event and seek to fulfill
the following benefits that are important to their customer:

Selection : A wide selection of Malay cuisine and western dishes.


Accessibility : ISMA Catering prepares all of the meals at their own
kitchen and able to cater events within the greater area.
Customer Service : Customer will impress with the level of serve that
they receive.
Competitive Pricing : All the offering price will be relatively competitive to
the other caterer in the northern region.

Market Trends
The market trend indicate an increasing demand for the catering service. An
increase in dual income households creates greater discretionary funds for catering
at private event. Though the economic forces has affected the number of catering
events held by the government but the increasing size of population at urban area
has created a greater demand for catering services. Catering service customers
today are focus on :

Food Quality : The preference of higher quality, fresh and hygienic


ingredients is increasing as customer are being subjected to better halal
food.
Innovative Creation : More innovative items or menu are being demand
as people recognize that food could be dull if it served in the same menu.

MARKETING PLAN FOR AAM CATERING ENTERPRISE

Market Growth
In year 2012 upon ISMA Catering started its business, the catering industry is rising
tremendously. As more variety offered, the market growth is forecasted to increase
year to year. Besides, the growth of the population and local business in the area
should help the economy rebound quickly including the catering marketplace.
However, the demand for catering service tends to fluctuate during the year as it
reach the peak demand for special occasions. Demand increase during school
holidays, festive season and wedding. Additional events that utilize the catering
service are political events, corporate parties and banquets and private events.
4) SWOT Analysis
i. Strengths
Strong relationship with departments of government and firms.
Excellent stuff who are highly trained and very customer oriented.
Superior service offering with high quality food, halal and hygienic.
Hotel class trained chefs
Good connection with goat farms enable continuous supply of goat.
List of unique dishes menu giving options to customer and its different
from competitors in the market.
ii.

Weaknesses
Struggle to create new menu or other attraction to customers.
Limited budget to do promotion
The difficulty to find candidate with enough culinary skill to assist chefs.
Depending to single sourcing could expose ISMA Catering to goat
supplies crisis due to natural disaster, disease attack or dissolution of
current supplier.
The seasonal nature of catering industry will create bottlenecks in cash
flow which eventually places excessive stress on personal, be it
management or workers.
Lack of allocation budget for promotion has caused ISMA Catering still
did not get much publicity, especially in the northern region.

iii.

Opportunities
High percentage of demand in catering business year to year will
provide greater opportunity to get more customer in future.
To fully utilize the social media such as Facebook and Twitter to
promote the business.

MARKETING PLAN FOR AAM CATERING ENTERPRISE

iv.

Threats
Hard to get the workers.
Competition from similar service providers in northern region.
Often last minutes receive of stock from supplier.
Difficulty to adopt the steps to save the energy particularly electricity,
cooking gas, water and fuel resulted in increase of operation cost
significantly.
Communication skill with workers and customers need to further
improve.
Economic downturn that will decrease the customers budget for the
events or parties.

5) Marketing Objectives
Based on the analysis of ISMA Catering, the following marketing objective is set for
this marketing plan :
The marketing goal for ISMA Catering is to become a viable company in the
catering business in northern region Peninsular of Malaysia serving individuals,
business and government with high quality food and service.
Other marketing objectives are:
Maintain positive, steady growth through quarterly monitoring.
Experience an increment of the new customers who are eventually
turned to be regular customers.
Decrease the market expenses as a percentage of sales
6) Marketing Strategies
ISMA Catering offers special foods and unique catering service individuals, business
and small to medium consumer groups. The overall strategy is a growth strategy
with concentration on creating awareness. The concept of awareness strategy is to
start in a local market through an integrated marketing approach then use the
experience and positive word of mouth to move into wider market.
ISMA Catering has outlined 5 marketing strategies to fulfill the customer demand :
Customer orientation
Quality monitoring based on Total Quality Management which includes
hygienic, efficiency, fresh and halal.
Convenience focusing on the comfort and enjoyments.
Speed in the sense of reducing the time to respond to customers request.
Service priority and customer satisfaction

MARKETING PLAN FOR AAM CATERING ENTERPRISE

Target Market
The clientele of ISMA Catering can be divided into two segments, the individuals
who has desire for social contact through social events and celebration of wedding
ceremony. The second segment of the target market includes mid-size to large size
business and organization both profit and nonprofit as well as government. These
group consist of organizations and business that engage in community and
corporate affair.
The second segment of the target market willing to spend more money and offer
more event than the previous segment. Their activities include work, social events
and entertainments.
Marketing Mix
ISMA Catering marketing mix is comprised of the following approaches to product
strategy, distribution strategy, advertising and promotion strategy and pricing
strategy.

Product Strategy
ISMA Catering not only provide catering service to its customer but also
link with event planner, florist and photographer to provide a complete set
of the event. Our main product is offering top quality of food and beverage
catering with best service quality. We guarantees on time delivery of
goods and services and ensures each customer that their satisfaction is
our first priority.
We are very confident that our catering product will be able to compete
any other catering in the market. The dishes cooked by our experience
chef have a special taste and it is differ from other catering at surrounding
area. Most of the customer who have been tested our food expressed
their satisfactory and based on the testimony, our food are tasty and it can
overtake the famous catering in northern region.
Even though ISMA Catering offers services comparable to many of other
caterers in the surrounding area, but yet we develop a strong reputation
for ourselves. There are approximately 20 to 40 advertised caterers
surrounding us and all of them basically offers the same services from a
wide variety of entrees to choose, preparation of food and beverage,
delivery of food and beverage and servers to serve the prepared meals.

Distribution Strategy
ISMA Catering serves the greater northern region of Kedah in any type of
facility. Our deals mainly in direct sales and promoting via word of mouth.
Building a website may allow large groups and companies as well as
individuals to know more about ISMA Catering. Potential customer to visit

MARKETING PLAN FOR AAM CATERING ENTERPRISE

the website to have access to the services offered and discover more
information about the business.

Promotion Strategy
In order to increase the profit as well as market share, ISMA Catering will
establish an aggressive awareness campaign using newspaper
advertisement, tradeshows, networking, personal word of mouth and
website. We will actively expending the advertisement endeavors by
placing ads in any media especially during peak season such as school
holiday and festive season.
ISMA Catering also will develop a colorful brochure for the catering
business, including pictures and the distinctive characteristics of our
business. This brochure will be designed for sales, tradeshows and
inquiries.
Tradeshow are an excellent venue for reaching customer and businesses.
We will carefully select the tradeshows that will maximize the companys
exposure.
The website will creating better recognition and welcoming more
customer. Our website will be link with other service especially those that
are related to the events such as weddings. Building mutual partnerships
with local wedding planner, florists, retail wedding stores and
photographers will create win win situation to benefit both parties.
Other promotional strategy includes special priced for wedding package
and sponsorship catering for an iftar at the nearby mosque or surau.

Pricing Strategy
ISMA Catering pricing scheme is based on a per plate, per person or per
table charge. At this moment, our pricing is equivalent and competitive
with the other caterer in the market.
The reasonable prices will generate better profit to both supplier and
caterer where the supplier will gain around 15% to 20% and once the
ingredients are cooked and sold, we will gain up to 50%.

MARKETING PLAN FOR AAM CATERING ENTERPRISE

7) Competitor Analysis
There are many competitors (caterer) in the northern region of Kedah. However, we
believe that the future of our business will continue to grow because not many
caterer able to retain their regular customer due to several factors.
No

Competitors Name

Shawal Catering

Keramat Catering

Sinar Emas Catering

Al-Hayyu Catering

Katering Sedap

Strength
Established and many
branches
Large selection of
dishes
Large selection of
dishes
Established
Large selection of
dishes

Weakness
No food choices
only Malay cuisine.
Expensive and food
taste not consistent
Less skilled chef and
food taste not
consistent
Expensive
Expensive

8) Marketing Tactics
In order to achieve our marketing objectives, ISMA Catering will focus on a simple
marketing tactics to produce impressive profits. Here are 4 dynamic marketing
tactics that weve practiced :

Strive to get more customers from all levels to increase the income
of profits of the company by continually reviewing and improving the
quality of our products and services that meet customers requirement
from time to time.

Focus on the best customer to get more new customer who will make
a catering reservation equally as our regular customer. ISMA Catering is
constantly analyze our regular customers on why they become our regular
customer and will apply the same approach to our new customers. This
will certainly boost ISMA Catering sale by increase the number of new
clients who reserve the catering service.

Increase our products profitability most customer usually get the


catering service to save their money and time. ISMA Catering will offer
them a chance to have both. In this way, we will increase our sales. For
example, in our campaign we will emphasize the theme of saving money if
the customers reserve the catering and pay a deposit within a specified
time.

MARKETING PLAN FOR AAM CATERING ENTERPRISE

Make the reservation a simple task by simplify the way customer


make a reservation, customer will feel more comfortable and the decision
making process to enlist our catering service will be easy and fast.

9) Implementation
Before officially launch our marketing plan the below key dates has been develop
and the cost of each component being estimated as well. To ensure a successful
completion of the marketing strategy, fund will be earn marked for each components.
By spreading the cost over a year, ISMA Catering can use monies generated by the
business to support the marketing effort. Based on our analysis, we recommend the
following matrix:
Ste
p

Activities

Start

Implementatio
n Date

Estimated
Cost

Develop newspaper ads

Mar
2014

May 2014

RM1,500.00

Run News Paper


Advertisement

May to Dec
2014

RM15,000.00

Colored brochure

Apr 2014

RM10,000.00

Website Design

Jul 2014

RM3,500.00

Mar
2014
May
2014

10)Evaluation and Control


The ISMA Catering companys performance will be evaluated in four keys area
namely sales, profits, awareness and image.
Sales
Company sales will be compared with the competitors if this information possible to
be obtained. All data will be recorded and report out the performance. This will assist
the monitoring process.
Profits
The sales revenue and cost from the previous year will be compared to the current
year. Actual and estimated profits will also be compared to determine the
differences. Cost control system will be develop to maintain cost that remain within
the specified budgets.
Awareness
The awareness will be measured on a regular basis. This activities will be conducted
by the assigned marketing research firm or an independent agency to ensure validity
of the study.

MARKETING PLAN FOR AAM CATERING ENTERPRISE

Image
The image of the overall plan can be measured along with awareness at the end of
each year to determine if the marketing campaign has changed or develop the
image of the ISMA Catering.
Reference
1) Strategic Marketing David W Cravens, Nigel F. Piercy
2) Understanding Marketing, William M. Pride and O.C Ferrell, Texas A & M University,
1985.
3) Pengurusan Pemasaran Strategik (Translated from Strategic Marketing
Management, McGraw-Hill Companies Inc., 2009.
4) Strategic Marketing Management, Gordon R. Foxall, Croom Helm Ltd, 1981.
5) http://jurnalusahawan.blogspot.com/