ABDULHIZA BIN IBRAHIM

830102-14-5183 MRS151118
MRSE1103 STRATEGIC MARKETING
MARCH 30th, 31st & APRIL 6th, 7th 2016
DR. WAN NORMEZA & DR. NIK NADZIRAH
MAY 9th, 2016

 TABLE OF CONTENT
1.0 EXECUTIVE SUMMARY ............................................................................................... 1

1.1 Vision & values ........................................................................................................... 2

1.2 Objective ..................................................................................................................... 2

2.0 SITUATION ANALYSIS ............................................................................................. 3

2.1 Market Summary ......................................................................................................... 3

2.2 SWOT Analysis........................................................................................................... 4

2.2.1 Strength ..................................................................................................................... 4

2.2.2 Weakness .................................................................................................................. 4

2.2.3 Opportunities............................................................................................................. 4

2.2.4 Threats....................................................................................................................... 4

2.3 Competition ................................................................................................................. 4

2.4 Product Offerings ........................................................................................................ 5

2.4.1 Java Blenz ................................................................................................................. 5

2.4.2 Tropicaland ............................................................................................................... 5

2.4.3 Teazane .................................................................................................................. 5

2.4.4 Coffee Beans ............................................................................................................. 6

2.4.5 Clipper....................................................................................................................... 6

2.5 Distribution Method ......................................................................................................... 7

2.5.1 Direct selling ............................................................................................................. 7

2.5.2 Wholesale.................................................................................................................. 7

2.5.3 Appointed Agent ....................................................................................................... 7

3.0 MARKETING STRATEGY ........................................................................................ 8

3.1 Marketing Objectives ................................................................................................ 10

3.1.1 Financial Objective ............................................................................................ 10

3.1.2 Strategic Objective ............................................................................................. 11

 3.2 Target market ............................................................................................................ 12

3.3 Positioning ................................................................................................................. 13

3.4 Strategies ................................................................................................................... 13

3.4.1 Product .................................................................................................................... 13

3.4.2 Pricing ..................................................................................................................... 13

3.4.4 Distribution ............................................................................................................. 14

3.4.5 Marketing Communication ..................................................................................... 14

3.5 Marketing Mix........................................................................................................... 16

3.6 Marketing Research................................................................................................... 16

4.0 FINANCIAL STRATEGY ......................................................................................... 17

4.1 Estimated Sales ......................................................................................................... 17

4.2 Cost Breakdown ........................................................................................................ 18

4.2.1 Printed Material Items Cost .................................................................................... 18

4.2.2 Entertainment Cost.................................................................................................. 18

4.2.3 Information Technology Marketing Cost ............................................................... 18

4.2.4 Exhibition Cost ....................................................................................................... 19

5.0 CONTROLS ................................................................................................................ 20

5.1 Implementations ............................................................................................................. 20

5.2 Marketing Organization ................................................................................................. 20

REFERENCES....................................................................................................................... 21
1.0 EXECUTIVE SUMMARY

Coffeeland (M) Sdn Bhd was founded in 1998 by Mr. Adli Wong, back then a
marketing graduate and proven to be one of the promising SME brand in Malaysia by
accolade of awards such as 2010 National Mark of Malaysia Award and 2014 SME Rising
Star Award. Its operation is centred at Puchong, Selangor with the capacity 23 workforce
spreading between 3-storey main office and factory / distribution centre.
Since its foundation, Coffeeland product line has increased to 60 gourmet flavours,
ranging from coffee to non-coffee products branded as Java Blenz, Tropicaland, and
Teazane. Apart from serving the hotel, restaurant and caf (HORECA) industry and export
market worldwide, Coffeeland also provides caf total solution ranging from pre-mixed
beverage and the equipment such as coffee machine, commercial blender and accessories.
Being in the industries for 18 years enabled them to transform from micro defined SME
organization to current medium defined SME based on Bank Negara Malaysia definition.1

Figure 1: Coffeland Turnover

Revenue has been growth steadily with an average of 9.8% increased from 2010 to
2015 with the record highest of 17.647% increase in 2012 revenue. Booming economic
condition in Malaysia buoyed by election mood was the contributing factor to this sharp hike.
Coffeeland financial calculated from first day of July and ends last day of June of fiscal year.

1
Circular on New Definition of Small and Medium Enterprises (SMEs)\
http://www.bnm.gov.my/files/2013/sme_cir_028_1_new.pdf

1
1.1 Vision & values
Coffeeland vision of Bringing out Joy and Happiness inspired by its founder
dedication on making the business not only for financial gain but to harness the best from any
entities that it associated. Furthermore, standing by core values below would ensure
Coffeeland continuity and sustainability in the Malaysian business scene.
Innovation - Apart from being innovative in products development, it does take place
everywhere, at all departments and condition such as handling and solving problems
and challengers or planning up a marketing and sales strategy.
Commitment - Commitment is a two way roads in Coffeeland and commitment effort
will be synergized when 2 parties provides their 100%. CL commitment is to their
staffs, customers, suppliers, society, environment and nation.
Quality - Coffeeland emphasis Quality on its brands and products, our people and
service, on their works and deliverables.

1.2 Objective
Coffeland Five Year Marketing Plan shall span from FY2016 till FY 2020 with 3 main
objectives:
Transforming it status from medium defined SME to small defined SME by acquiring
sale turnover of RM 5,000,000 projected by the end of FY2016.
Increasing the number of local agent in Malaysia and ASEAN region with possibility
to venture Japan & Korea market as both countries are developing coffee culture.2
Introducing speciality coffee product such as Kopi Luwak for signature taste and
health related mixture such as Tongkat Ali for energy & supplement. Specialty coffee
is the term used to refer to premium coffee. The increasing income of the middle class
and the need for differentiation among the companies has led to a growth in the
specialty coffee segment and is now the most rapidly growing segment of the coffee
industry. Increasing number of retailers and associations have been working on
developing blends and specialty coffees with the intent of catering to the growing
demand in major markets.3
Nurturing coffee connoisseur and fresh graduates interested in setting up a caf
business with optimal capital.

2
http://www.nielsen.com/us/en/insights/news/2011/koreas-coffee-craze-perks-up-opportunities-for-retailers-
and-manufacturers.html
3
ASEAN Coffee Industry: Brewing Sustainability through Differentiated Coffees Learning Team Project for
ABS (ASEAN 2015), Nov 25 2013, Carlos, Leonado, Martinez, Panda, Pilukuli, Ponnuswami

2
2.0 SITUATION ANALYSIS

Malaysia coffee market had been started since the operation of kopitiam and kedai
kopi by Chinese immigrant and Malay entrepreneurs in the early 1900. In the early days,
supply chain of caf business involves only planters as roasting and grinding will be
performed by the operators. In modern environment, this flow seems to be time consuming as
the caf operators need to prioritize in over the counter operation and marketing of their
establishment.
In the 21st century, Malaysia coffee market was rejuvenated with the entrance of
Starbucks in 1998, the year Coffeland starts it operation and 18 years later, our caf scene is
seeing variations of local and international caf operators serving in form of franchisor such
as Old Town and Coffee Bean & Tea Leaf. Coffeland aims to become supply chain members
of these operators with our product offerings. Furthermore, early 2000s sees the increasing
number of coffee connoisseur among Malaysians that had possibility to amplify their interest
by opening self-owned coffee establishment to channel their passion besides as source of
income.

2.1 Market Summary

Coffeeland market is a business to business (B2B) market that requires compelling
brands, consistency and high affordability in pricing and cohesiveness in client / agent
relations. Its market encompasses of regional and local operators of hotel, restaurants and
caf (HORECA) and coffee connoisseur.
Regional markets for coffee spans throughout ASEAN countries with the highest
consumption in Philippines with ratio of 0.608 cup per capita followed by Singapore with
ration of 0.379 cup per capita.4 Malaysian coffee consumption had been increased steadily
even though without availability of concrete data as the opening of new caf and coffee stall
is on rise since early 2000s.
At the moment, gourmet coffee market in Malaysia almost reaching its maturity as it
has been 18 years since Starbucks, a benchmark for gourmet coffee in Malaysia starts it
operation. Nonetheless, the evaluation of the coffee market based on the product cycle may
evolve as gourmet coffee is not only view beverages but widely accepted as a new culture in
Malaysia.

4
http://www.theatlantic.com/business/archive/2014/01/here-are-the-countries-that-drink-the-most-coffee-the-us-
isnt-in-the-top-10/283100/

3
2.2 SWOT Analysis
2.2.1 Strength
Acquired own facility to processed and packaged the coffee beans.
Close relationship with the agent and distributor.
String of regular customer across hotel, restaurant and caf owners since 1998.

2.2.2 Weakness
Unable to directly promote the brand to the end user.
Did not venture in to healthy beverage line.
Did not penetrate Japanese market. (highest coffee consumption in East Asia)

2.2.3 Opportunities
Reductions of costs associated with international trade upon TPPA.
Strategic geographic location of worlds largest coffee exporter.
nd th
(Vietnam 2 , Indonesia - 4 )
Strategic geographic location of premium coffee producer Kopi Luwak (Indonesia)

2.2.4 Threats
Competition from regional coffee supplier.
(Koon Kee Coffee Penang, Kopi 434 Johor, Teck Lee Seng Coffee Sarawak)
Independent agent or coffeehouse movements.
Increasing number of competitor due to possible influx of South American coffee
upon TPPA

2.3 Competition
Coffeeland competitors strength lies on the home based establishment. Their
operation focuses within its vicinity with moderate expansion and in gradual manner. Some
of the competitor had been in the market for over 50 years due to their nature as family
business.
Coffeeland Notable Competitor
Region Company Established Year
Northern Peninsula Malaysia Koon Kee Coffee Georgetown, Penang 1950
Southern Peninsula Malaysia Kopi 434 Muar, Johor 1953
Teck Lee Seng
East Malaysia Kuching, Sarawak 1969
Coffee

4
2.4 Product Offerings
2.4.1 Java Blenz
Java Blenz, symbolize new modern lifestyle of coffee drinking in this trend favoured
by Gen Y, the young and affluent group. It offers the irresistible sensation that every dynamic
generation looking forward to experience with six variation of flavour. Packaging comes in
1.5kg x 8 packets/carton.

Figure 2: Java Blenz Logo

2.4.2 Tropicaland
Tropicaland is healthy flavored smoothies made from superiors natural ingredients
including fruit and natural sugar. The advantage for the restaurant owners is the smoothies
can be stored for a longer period than conventional beverages of its kind. It is naturally
temperature flexible smoothies. Tropicaland real smoothies are suitable for trendy drinking
with eight variation of flavour. Packaging comes in 2.7kg x 8 tubs/carton.

Figure 3: Tropicaland Logo

2.4.3 Teazane
Teazane Matcha is made from shade-grown tea leaves also used to make gyokuro.
Matcha helps to cleanse and purge the body of harmful elements. Chlorophyll the element
that gives green tea and other plants their signature verdant color is also a powerful
detoxifier, helping to eliminate both chemicals and heavy metals from the body. This nramd
comes with three variations and in 1.8kg x 10 packets/carton.

5
 Figure 4: Teazane Logo

2.4.4 Coffee Beans

Coffeeland roast beans are imported from Java, Central and South America. A variety
of Dark roasted in-house perfection, providing coffee lovers a rich body, full fine aroma and
a full satisfaction of a perfect.
Coffeeland Roasted Brands
Brand Description Roasting Taste
A 100% Arabica beans from Latin America and Superior Medium Fruity
Medium
Italiano Indonesia Sumatra Mandheling. Providing a light bodied & Delicate
Dark
and a woody aroma. Mellow
Combination of Arabica coffee from Central America
Medium Groundy, Nutty
Brazilia and Rich Indonesia coffee. A high flavourful thick crema
Dark and Winery.
and the blend as a full bodied and medium acidity.
A blend of Robusta from Asian Region. Provide full-
Dark Earthly, Harsh
Classic bodied, bold, yet very smooth finish with a rich head of
Roast and Robust.
crema.
2.4.5 Clipper
Clipper Co. had been making teas in Dorset since 1984. From small beginnings in a
Dorset kitchen, now its the 6th biggest tea company in the UK. Clipper Co. believe that
every cup of tea is important thus strive to deliver the best tasting tea, using the highest
quality ingredients from ethically source.

Figure 5: Clipper Logo

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2.5 Distribution Method
As Coffeland is a Business to Business (B2B) modelled company, distribution channels
applied are:

2.5.1 Direct selling

Direct sales to hotel, restaurant and caf operators are limited to established customer
that had been dealing with Coffeland prior 2008, even though the numbers of these customers
are increasing, new customers are redirected to appointed agent or wholesale point to avoid
disruption in the pricing structure, supply chain fluidity and to ensure a good relationship
between Coffeeland and its business affiliates.

2.5.2 Wholesale
Coffeland managed to reach agreement from three whole sellers from Penang, Pahang
and Johor that shall cover the market demand for their region. Whole seller has no exclusive
right for distribution thus apart from Coffeeland product; these companies do market other
brands.

2.5.3 Appointed Agent

At the moment, Coffeeland appointed agent that act as distributor for its product are
available throughout ASEAN region. Those countries are Indonesia, Singapore, Thailand,
Philippines and Laos. In the Far East region, Coffeland had appointed agent in Shenzen that
covers Hong Kong and Taiwan market.
Coffelands distributors located around vicinity of Greater Kuala Lumpur region with
the farthest located in Nilai, Negeri Sembilan to the south and Raub, Pahang to the east.
Other locations are in Petaling Jaya and Ampang. Distributor has exclusive right for
distribution of Coffeeland product thus they are not allowed to market other brand.

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 3.0 MARKETING STRATEGY

Beverages business requires edge, variations and creativity in its marketing even
though its an industry with inelastic demand.5 The pricing and fluidity of supply chain for
the coffee product need to be constantly monitored because unlike the industry, changes in
price of the product will influence consumers choices as plenty of options in the market.
Furthermore, any lags in the supply chain will affect Coffeland relationship with its affiliates.

Coffeeland Wholeseller /
Farmer Exporter packaging Distributor
harvest / dried bulk export & bulk sales to
distribution customer

Figure 6: Coffeeland Supply Chain

Keys for successful marketing of Coffeland products as listed below and in line with
Cooffeeland objectives in section 1.2:-
i. Well-defined targets
Coffeeland segmented its target market based on their financial capability. For
entrepreneur development program, Coffeland will consider participant with specific
amount of capital to ensure their commitment once the program stated.
ii. A deep contextual understanding
Coffeland effort to develop customers contextual understanding is by taking the time to
analyse and understand its buyer business process and recognize type of assistance that
can be provided to help get customers propel forward.
iii. Clear conversion goals
Once Coffeeland understand the personality of target customers, their concerns and their
customer buying process; Coffeeland will focus on strategy to convert them into paying
customers in stages by setting a smaller conversion goals.

Technical /
First meetup Follow-up on Issuance of
Commercial
with target first encounter purchase Order
meeting before
market. Identify issues by customer
ordering.

Figure 7: Conversion Goals in Coffeland Marketing Flow

5
http://www.investopedia.com/university/economics/economics4.asp

8
iv. Appropriate points of contact
Throughout the plan, Coffeeland shall ensure its marketing team established and maintain
communication with appropriate point of contact to ensure the target market being
receptive to contents Coffeeland content offerings. Coffeeland marketing team shall
ensure the decision maker group of the target market to be in the loop during sales
encounter.
v. A process for alignment
Coffeeland aligned all the marketing efforts by creating a matrix that will ensure all these
moving parts are monitored and adhered.

Unaware Aware Interest Research Purchase

Target Market Buying Flow

Acceptance of
Technical /
First meetup Follow-up on Purchase Order
Commercial
with target first encounter (Target market
meeting before
market. Identify issues become paying
ordering.
customer)

Figure 8: Coffeland Marketing Flow Alignment

vi. The ability to scale

Coffeeland marketing strategy will always scale and suit the marketing content to fit
target market capability and needs. The content and information provided shall be
updated in timely manner to suit target market needs.

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3.1 Marketing Objectives
3.1.1 Financial Objective
Coffeeland targets to achieve revenue of MYR 5,000,000.00 by end of FY2020;
with average annual growth of 6.225% from 2016 till 2020. A moderate growth of 2.5% is
projected for the first two years followed by sharp hike of 15% within 2017 to 2018 then
ended with average 5.6% increased till 2020.
Factors considered for the projected sharp hike is the political environment that will
be buoyed by Malaysia 14th General Election in 2018 and Indonesia Presidential Election in
2019. Both events highly influenced the behaviour of consumer coffee demands due to
increase number of gatherings and social events in both countries.

Figure 9: Coffeland Forecast Turnover 2015-2020

Figure 10: Coffeland Forecast Turnover (%) 2015-2020

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3.1.2 Strategic Objective
Coffeeland Marketing Plan 2016-2020 underlines four strategic objectives to be achieved by
end of FY2020. Those objectives are:-
i. Increasing the number of local agent in Malaysia and ASEAN region at least two fold
in selected area. Currently, Coffeeland secured fifteen appointed agents in West
Malaysia and three in Eat Malaysia while in the ASEAN region, Coffeeland is
presence in Indonesia, Singapore, Thailand, Philippines and Laos.
Area No. of Agent Projected No. of Increment (%)
Agent by 2020
East Malaysia 3 6 100%
West Malaysia 15 18 20%

Area No. of Agent Projected No. of Increment (%)

Agent by 2020
Indonesia 3 6 100%
Singapore 1 - -
Thailand 2 4 100%
Philippines 2 4 100%
Laos 2 3 50%
China 1 3 200%

ii. Established a venture in Japan & South Korea market as both countries is developing
coffee culture. Coffeland targets to appoint agent in Japan & South Korea by the end
of FY2020 in order to penetrate gourmet coffee market in both countries. Coffeeland
shall focus on Tokyo and Seoul market, capital of Japan and South Korea.
iii. Positioning a speciality coffee product by introducing Kopi Luwak for signature taste
and Kopi Tongkat Ali for energy & supplement by the end of FY2017. Coffeeland
shall collaborate with Malaysia Ministry of Health and National Poison Center on a
development of analytical methods of both products to ensure safety for consumption.
Furthermore, Coffeland shall ensure the imported coffee Luwak beans acquired in
ethical ways by collaborating with People of Ethical Treatments for Animal (PETA)
to identify ethical producer.
iv. Coffeland target to nurture coffee connoisseur and fresh graduates interested in setting
up a caf business with optimal capital by collaborating with local bank and offering
special discount and rebates. By the end of FY2020, Coffeeland projected twenty
outlets setup spread around Malaysia by these two groups.

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3.2 Target market
Coffeeland target markets are separated into primary and secondary. Primary target markets
are those market segments to which Coffeeland marketing efforts are primarily directed and
secondary markets are complimentary6.
i. Primary target markets :-
a. Foreign or local company with capacity to place minimum order of MYR
50,000.00
b. Foreign or local individual with capacity to place minimum order of MYR
25,000.00
c. For Coffeelands caf operator development programmed, eligibility is opened to
Malaysian over 18 years old with working capital of MYR 15,000.00 and
willingness to oversee day to day operation of the establishment at least for 36
months.
ii. Secondary targets markets are any individual, entrepreneur or independent operator
that able to guarantee minimum monthly order of MYR 5,000.00 for a year.

Figure 11: Coffeeland projected percentage of primary target markets.

Coffelands estimated percentage reflects the target market makeup for FY 2015-2016 with
the highest proportion shall be number of new appointed agent in Malaysia, Coffelands
home base.

6
Chapman, Devenish, Dhall, Norris (2011). Business Studies in Action. Milton, QLD Australia: John Wiley &
Sons Australia Ltd. pp. 190196

12
3.3 Positioning
Coffeeland will be position as leading coffee beans and pre-mix beverage distributor
for hotel, restaurant and caf operators in Malaysia and selected ASEAN countries by
leveraging its competitive edges to achieve the desired positioning. Coffeeland competitive
edge comes from the advantage of having established relationships with F&B wholesalers
and independent operators since 1998.
Coffeeland gathered information of the demand for its product in the form of requests
from F&B wholesaler, independent operators and structured market research. Furthermore,
Coffeeland products are a superior product offering because of the competitive of price
structure, larger average size of the bean and it is sourced from growers that use less than 2%
of chemicals and pesticides. In addition, payment term of 60 days makes Coffeeland a
favourite option by most of the wholesaler that prefer to stretch the settlement period

3.4 Strategies
The marketing strategy aims to create wholesalers and trading community awareness
regarding the Coffeeland products, develop the customer base, and work toward building
customer loyalty.

3.4.1 Product
All Coffeelands sixty gourmet flavours, ranging from coffee to non-coffee products
are certified halal by JAKIM and accredited for Malaysian Hazard analysis and critical
control points (HACCP) and ISO 22000.
Coffeeland also provide caf total solution ranging from its core product of pre-mix
beverages and coffee beans until the equipment such as coffee machine, commercial blender
and accessories with aim to cultivate entrepreneurial culture among coffee connoisseurs.

3.4.2 Pricing
Pricing structure for Coffeeland products are flexible with discount eligibility based on order
amount and product brands.
i. Discount by order amount
Order amount Discount
1.5% for Java Blenz and coffee beans brand stated in the purchase
MYR 25,000.00
order.
1.75% for Java Blenz and coffee beans brand stated in the
MYR 50,000.00
purchase order.
MYR 100,000.00 Exclusive discount treated on case by case basis.

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 ii. Discount by product brands
Brands Discount
Teazane 1.5% for purchase of MYR 50,000.00 of the brand
Clipper 1.5% for purchase of MYR 50,000.00 of the brand
3.4.4 Distribution
Coffeeland channel strategy is to use selective distribution, marketing its through
established wholesalers and F&B operators. Currently, Coffeeland have coverage in all
Malaysian F&B operators markets and the product is included in the wholesalers list. In
support of channel partners, Coffeland will provide demonstration products, detailed
specification hand-outs, and displays featuring the product.

3.4.5 Marketing Communication

Coffeeland seeks to ensure its name is synonymous with the highest quality beverage
and the message will be communicated through methods opted below.
i. Printed sales material that will detail all of the different products offered by
Coffeeland. During the exhibition or business visit, Coffeelands will distribute it to
potential customer during face to face session. Coffeeland will also collaborated with
academic communities in research related to coffee product and placed the findings
in industry journals to increase brand awareness.
ii. Strengthened the strategic relationships with existing Coffeelands customer.
Coffeeland recognizes that developing close, communicative relationships with them
is very important to maintaining a high quality, sustainable business.
For established customer, Coffeeland will continue its tradition of Client Appreciation
Programs started in 2000 to show gratitude in the business relationship. It will be
organized twice a year, with combination of appreciation dinner with all Coffelands
affiliates that will be held in the month of December, the other planned event that is
exclusive for Coffeelands affiliates with accumulate yearly order of MYR
100,000.00 in financial year.
iii. Used of internet such as marketing via the website that enables interested parties from
around the world to view information about Coffeelands products and commitments.
Furthermore, website is a fairly rich, comprehensive resource that is accessible at all
times.
iv. Involvement in trade and food exhibitions and conference throughout Far East region
would enable Coffeeland to increase brand awareness and equity to business

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community. From FY2016 - FY2020, Coffeland plans to involve in most of F&B
exhibition throughout Asia as medium to communicate with potential customer.
Target
Exhibition Name Exhibition Date Venue Occurrence
Audience
China,
First week of May Taiwan,
Shanghai Annual
May 5th- 7th, 2016 Hong Kong
Salon International Macau
de lalimentation
Japan
Second week of May
Seoul Annual South
May 10th- 13th, 2016
Korea
Seoul Food
Thailand,
Last week of May Laos,
Bangkok Annual
May 25th- 29th, 2016 Cambodia
ThaiFex Malaysia
China,
Last week of June
Taiwan,
June 29th July 1st, Guangzhou Annual
Hong Kong
2016
Coffeexpo Macau

Last week of
Japan
September
Tokyo Annual South
World Speciality September 28th -30th,
Korea
Coffee Conference 2016
& Exhibition
Second week of
November South
Seoul Annual
November 10th- Korea
Seoul International 13th,2016
Caf show
Second week of
November ASEAN
Jakarta Annual
November 9th- Region
Salon International 12th,2016
de lalimentation
Indonesia,
First week of April Malaysia,
Jakarta Biannual
April 5th-8th, 2017 Brunei &
Food & Hotel Singapore
Indonesia 2017

15
3.5 Marketing Mix
Coffeeland marketing mix utilizes E. Jerome McCarthy 4 Ps of the marketing7 that
emphasize on the element of:
i. Product
Coffeelands research shows that gourmet coffee product is on long maturity cycle
and have the bright prospect. Nonetheless, Coffeeland will invest for the product mix
by introducing two more brands by the end of 2017.
ii. Price
Coffeeland applies the neutral pricing strategy while promote to increase the customer
perceived value of its brand.
iii. Promotion
Coffeland aims to promote heavily in the public relations through involvement in
exhibitions, conferences, seminars or trade fairs and events.
iv. Place (Distribution)
All Coffeeland products are accessible throughout our agents and over the counter on
the customers establishment.

3.6 Marketing Research

Before the marketing plan development, Coffeeland issued a comprehensive
questionnaire to its customers and performed qualitative study on Malaysian coffee market
based on Coffeeland sales team experience and top management input.

7
Needham, Dave (1996). Business for Higher Awards. Oxford, England: Heinemann

16
4.0 FINANCIAL STRATEGY

4.1 Estimated Sales

For 2016 2020 periods, Coffeeland forecast a sluggish Malaysian coffee market for the
first two years until mid of 2017 before a sharp growth till election date projected mid of
2018 and moderate till 2020.

Figure 12: Coffeeland Projected Revenue

Coffeeland Malaysia capped value for marketing amount is 3.5% from actual revenue
of previous year in line with U.S Small Business administration guidelines8. Summary for
estimated marketing cost FY2016-FY2020 as below:

Figure 13: Coffeeland Projected Expanditure

8
https://www.sba.gov/blogs/how-set-marketing-budget-fits-your-business-goals-and-provides-high-return-
investment

17
 Estimated Marketing Percentage Estimated
Year Estimated Revenue
Cost Revenue
2016 RM 131,250.00 RM 3,843,750.00 3.41%
2017 RM 134,531.25 RM 3,941,765.63 3.41%
2018 RM 137,961.80 RM 4,523,176.05 3.05%
2019 RM 158,311.16 RM 4,771,950.74 3.32%
2020 RM 167,018.28 RM 5,037,986.99 3.32%
Total Estimated
RM 269,211.80
Marketing Cost
4.2 Cost Breakdown
4.2.1 Printed Material Items Cost
The material is part of marketing communication tools that will be distributed during
Coffeeland involvement in exhibitions or trade show. The printing cycle will be on yearly
basis to capture attention of the potential customer.
Printed Material Unit Unit Cost Total Unit Cost
Flyers 750 RM 0.15 RM 112.50
Catalogue 750 RM 1.75 RM 1,312.50
Pen 750 RM 1.25 RM 937.50
Gift Bag 1250 RM 0.85 RM 1,062.50
Premium Gifts 500 RM 2.75 RM 1,375.00
T-Shirts 250 RM 17.25 RM 4,312.50
Total RM 9,112.50
Estimation did not factor in 2.5% yearly increment due to inflation adjustment.

4.2.2 Entertainment Cost

Coffeeland top management personnel are entitled to entertainment allowance for marketing
purpose at cost and subject to discretion Chief executive Officer.

4.2.3 Information Technology Marketing Cost

Coffeeland shall outsource the Information Technology service for maintenance of its
website on quarterly basis. Estimated yearly cost for the service is RM 3,600.00 per annum.

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4.2.4 Exhibition Cost
Exhibition participated by Coffeland will be attended by Chief Executive Officer, Marketing
Manager and Sales associate.
Exhibition Accomodation Air Travel
Fee Total Cost
Name (3 pax) (3 pax)
Salon Intl.l de
RM 12,500.00 RM 2,250.00 RM 3,600.00 RM 18,350.00
lalimentation
Seoul Food RM 12,500.00 RM 2,250.00 RM 3,600.00 RM 18,350.00
ThaiFex RM 8,750.00 RM 2,250.00 RM 1,500.00 RM 12,500.00
Coffeexpo RM 8,750.00 RM 2,250.00 RM 3,600.00 RM 14,600.00
World Coffee
RM 12,500.00 RM 2,250.00 RM 3,600.00 RM 18,350.00
Conf
Seoul Intl. Caf
RM 12,500.00 RM 2,250.00 RM 3,600.00 RM 18,350.00
show
Salon Intl. de
RM 12,500.00 RM 2,250.00 RM 1,500.00 RM 16,250.00
lalimentation
Food & Hotel
RM 8,750.00 RM 2,250.00 RM 1,500.00 RM 12,500.00
Indonesia 2007
TOTAL RM 129,250.00
Estimation did not factor in 2.5% yearly increment due to inflation adjustment.

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5.0 CONTROLS

5.1 Implementations
The following perimeters will be monitored to gauge Coffeland performance:
Revenue - quarterly and annual.
Coffeelands accounting team shall be responsible to table quarterly and annual venue
during the board meeting for monitoring purpose. Expenses of the marketing plan
shall be revised in the event the projected amount of the revenue is short.
Expenses - monthly and annual.
All expenses shall be disbursed by the accounting team except for local travel and
accommodation allowance which are reimbursable upon receipt. Coffeelands
management team is accountable for any anomalies in the spending
Customer satisfaction.
Coffeelands marketing team is accountable to gather information on customer
satisfaction for the duration of the marketing plan. Any complaint or suggestion that
requires further explanation will be brought to the management meeting held on
monthly basis

5.2 Marketing Organization

Marketing Manager

Sr. Sales Associate

Sales Associate Sales Associate Sales Associate

Figure 14: Coffeelands Marketing Team Organization

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REFERENCES

1. Circular on New Definition of Small and Medium Enterprises (SMEs)\

http://www.bnm.gov.my/files/2013/sme_cir_028_1_new.pdf
2. http://www.nielsen.com/us/en/insights/news/2011/koreas-coffee-craze-perks-up-
opportunities-for-retailers-and-manufacturers.html
3. ASEAN Coffee Industry: Brewing Sustainability through Differentiated Coffees Learning
Team Project for ABS (ASEAN 2015), Nov 25 2013, Carlos, Leonado, Martinez, Panda,
Pilukuli, Ponnuswami
4. http://www.theatlantic.com/business/archive/2014/01/here-are-the-countries-that-drink-
the-most-coffee-the-us-isnt-in-the-top-10/283100/
5. http://www.investopedia.com/university/economics/economics4.asp
6. Chapman, Devenish, Dhall, Norris (2011). Business Studies in Action. Milton, QLD
Australia: John Wiley & Sons Australia Ltd. pp. 190196
7. Needham, Dave (1996). Business for Higher Awards. Oxford, England: Heinemann
8. https://www.sba.gov/blogs/how-set-marketing-budget-fits-your-business-goals-and-
provides-high-return-investment

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