Marketing Plan (Arial 12, BOLD)

5.1 Marketing Objectives

(i) To introduce new products or services.

As a new business in the cake sales industry, our main objective is to introduce our very unique and
delicious new products to the market after we have analyzed our market and the demand of many
customers. In addition, we want to produce a unique cake which is made from simple but unique
ingredients…

(ii) To estimate market acceptance and sale of new products or services.

In addition, by doing marketing we will receive a lot of comments and feedback on our products. So,
we can estimate the market acceptance and if there is a weakness we can do some improvement of
our products. Furthermore, we can estimate our product sales forecast in the long run and we can
design our products efficiently to minimize resources in producing our products more than market
demand.

In addition, we can also analyze the strengths and weaknesses of our competitors. By doing this, we
can make our products better by improving quality and price in order to compete with them at
market. Our store also focuses on promotional strategies to attract more customers to get our
products and ensure we achieve our sales targets.

5.2 Description of products (Arial 11, Italic)

Table 5.2.1 Product description

Product Description
Features  Shape: Round and square
 Type of cake: Chocolate,Layered pound,etc.
 Packaging; Square box.
Materials  flour,sugar, eggs, butter or oil or margarine, a
liquid, and baking soda.
 dried, candied, or fruit, nuts, cocoa, and extracts
such as vanilla
Benefits  It is used as a festive dish at ceremonies, such as
weddings and anniversaries.
 Provide energy
 Are body building and give strength
Cake can help beat depression

Table 5.2.2 Product illustration

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 Birthday Chocolate Cake

Wedding Cake

Mixed Fruit Cake

5.3 Target market (Arial 11, Italic)

A target market is a set of individuals who share common characteristics - they attract
businesses that sell products or services aimed at specific groups. This is the kind of business owner
people who believe will be the most loyal customers.Customers are individuals who buy and use our
products and are an essential element in making a product a successful sale.

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To attract customers to buy our products, we will ensure that our products are reasonable and
cheap and have been sold according to the right amount of recipe ingredients that will satisfy
customers. we decided to focus on many target area that would give us a large scope.

Our target market is based on three factors that must consider which is geographic segmentation
demographic segmentation and psychographic segmentation to choose target market.

5.3.1 Geographic Segmentation

Our main target place is in Peninsular Malaysia. We chose peninsular Malaysia because

of the convenience in terms of delivery and processing and has many customers here

who always order cakes with our store. Apart from that, because our cake shop branch is

only in peninsular Malaysia which consists of various states such as Johor, Pahang,

Kelantan, Terengganu and Kedah. Thus it is easier for us to promote and advertise our

products because we have direct access to other markets who also share in expanding

our cake business among them are mini markets, supermarkets, department stores such

as Tesco, Giant, Aeon and Mydin for providing adequate facilities to store our products.

5.3.2 Demographic Segmentation

Demographic segmentation consists of dividing the market into group based on variables
such as age, gender, income and occupation.This type of segmentation could help us to
identify the trend that might
shape future spending patterns in the target market. Our main target is customers from adults
because the cakes we provide are meant to make the celebrations remembered and thus they are
satisfied with the taste and delicacy of our homemade cakes. This is because in the cake menu we
provide birthday cakes, wedding cakes and many more.

5.3.3 Psychographic Segmentation

Psychographic segmentation is the group of the market into several groups according to

the lifestyle of the customer.Basically, Malaysians, especially the Malays, Chinese,

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 Indians, makes cakes as a culture to complement the ceremony, such as the wedding

day, anniversary and so on.

They like to eat cakes at the moment. This is because many opinions say that if there is no

cake, the ceremony is less cheerful. Not only that, even when celebrating this ceremony will

also be attended by children and children love cake. They like to try something sweet. Since

our products provide many benefits to beat depression, we are very confident that our

products will increase our product demand.

5.4 Market size (Arial 11, Italic)

5.4.1 Population table

5.4.1.1 Georgetown, Penang

Table 5.4.1.1 Georgetown, Penang (example)

Type of outlet No of outlet No of items Price/unit Total

to needed (RM)
(unit)
Retailer
 Shopping 5 18 210.00 18,900.00
Mall
 Mini Market 30 5 210.00 31,500.00
Wholesaler 20 3 210.00 12,600.00

TOTAL 26 63,000.00

5.4.1.2 Population 2

Table 5.4.1.2 Population 2

Type of outlet No of outlet No of items Price/unit Total

to needed (RM)
(unit)

TOTAL

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 5.4.1.3 Population 3

Table 5.4.1.3 Population 3

Type of outlet No of outlet No of items Price/unit Total

to needed (RM)
(unit)

TOTAL

Note:
1 unit = 1 box
1 box = 6 laundry bags
Price per box = RM210
Price per unit = RM 35

5.4.2 Total market size

Total market size = Georgetown + Population 2 + …… + Population n

= Total Table 6.4.1.1 + Total Table 6.4.1.2 + ……
= RM 803 040 /per month (example)

5.5 Competitors (Arial 11, Italic)

Table 5.5.1 Competitive analysis

Competitors Strengths Weaknesses

Misha Cake • Have a good quality of cake •Expensive
House taste •High cholesterol
•It has many flavored
• Affordable
Roti & Kek Manis •Cheap •Not attractive
• Self-created cake recipe •Unpleasant taste
• Many people aware about their
products
Kek Kayangan •Price reasonable •Not attractive
•Get a delicious cake from their •Lack of quality
store
• It has a good marketing strategy

5.6 Market Share (Arial 11, Italic)

5.6.1 Market share before the entry of Spongedrop Enterprise.

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Table 5.6.1 Market share before the entry of Spongedrop Enterprise

Competitor Before entrance Amount

(%) (RM)
Misha Cake House
Roti & Kek Manis
Kek Kayangan
TOTAL

Use pie charts for illustration

5.6.1 Adjusted market share after the entry of Spongedrop Enterprise.

Table 5.6.2 Market share after the entry of Spongedrop Enterprise

Competitor After entrance Amount Percentage of

(%) (RM) loss (%)
Misha Cake House Differentiation
before and loss
Roti & Kek Manis Differentiation
before and loss
Kek Kayangan Differentiation
before and loss
Spongedrop -

TOTAL

Use pie charts for illustration

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5.7 Sales forecast (Arial 11, Italic)

Table 5.7 Sales Forecasting

Month Sales Forecast

1 80,304.00
2
3
4
5
6
7
8
9
10
11
12
Year 1 Total Month 1 – Month 12
Year 2 Increment of 10% from Year 1
Year 3 Increment of 15% from Year 2

5.8 Market strategy (marketing mix) (Arial 11, Italic)

5.8.1 Product

Teava Enterprise invented a product that is good for our health. The

Butterfly Pea Tea is a unique fusion tea that came from Butterfly Pea

Flower and Oolong Tea.

5.8.1.1 Quality

Quality product is our priority and we do not compromise our quality just

to save cost. Quality product is very important because in long run

business it will help to establish brand image. It will also increase brand

loyalty from customer who buy our products.Butterfly Pea Tea provide a

fresh petal of Butterfly Pea Flower and fresh Oolong Tea. This will make

the customer stay healthy and energetic. Other than that, we also use a

natural flavor from Butterfly Pea Flower. Our customer will be satisfied

with our product quality since we did not use any artificial colour, flavor or

other chemical additives in our product because it is not good for the

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health. .

5.8.1.2 Design

Our product use the petal of Butterfly Pea Flower or commonly known as

Bunga Telang among Malaysian. The gorgeous blue colour will came out

from that flower. To retains its colour, we added in Oolong tea which

infuse in more benefits. Other than that, when lemon juices was added, the

tea will turn into light purple. We designed our tea bag in an oval stick that

made from wood. We come out with this design because we wanted to

reduce the usage of plastic for our product.

5.8.1.3 Packaging

We provide a box as packaging to our product in order to contain the tea

sticks and protect the quality of our product. The box are in the shape of

hexagon. This shape has an enough space to fit all 25 tea sticks. We

choose hexagon shape because we want to make a different packaging

from other similar products. Other than that, it will attract customer to buy

our product with the exclusive shape of box. In addition, this kind of box

can be recycle and it will save the environment from any plastic.

5.8.1.4 Product Differentiation

Butterfly Pea Tea is basically a tea that use Petal of Butterfly Pea Flower

as main ingredient. We would like to introduce a new type of tea which is

very unique and rare. Other than that, we would like to share the benefit or

uses of Butterfly Pea Flower that popular in “Nasi Kerabu” main

ingredient. We did not use any artificial colour

or flavor since we are using natural ingredient. From our survey, we find

out that our competitors use artificial colour in a large quantity to make

their product look attractive.This could be dangerous to the consumer

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health .

5.8.1.5 Labelling

In front of the box, we are covering it with our company’s logo, product’s

name and our product picture that can give the customer an illustration on

how its look like. At the back of the box, we put our company’s name and

address to inform the customer about our location. We also provide

barcode, description of our product such as halal logo, expired date,

manufacturing date, nutrition information and ingredient.

5.8.1.6 Product safety

Our product is a type of drinking product. So, we must make sure that it is

safe for consumer to consume. Our product should make people become

better instead of make them become sick. To ensure that the product is

safe to be consumed, all ingredient that we use is free from chemical

additives and we only use natural colour that come from Butterfly Pea

flower. Besides that, the printing of expired date label and HACCP logo on

the box

will be printed so that our customer will be aware regarding the expiration

date of our product. We also provide Hologram Meditag from Kementerian

Kesihatan Malaysia to make sure that our product approved for use and

not harmful for consumer.

5.8.2 Price

5.8.2.1 Cost based pricing

Our business used cost-based pricing as our pricing strategy. Cost

based-pricing is the simplest and most commonly used as a pricing

strategy. Cost-based pricing is based on the

total cost of the product plus a standard mark-up. The fixed cost included

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cost of material that we use, machine, labour, packing to produce one unit

of product, electricity and water supply will be added and it will be multiply

with 20 % mark up.

Selling price = Total cost per unit + Mark Up

= RM 18.20 + (RM 18.20 x 20%) = RM 21.84

5.8.3 Place

We distribute our product to local retailers at Alor Setar, Jitra and Sungai

Petani In Kedah, Whereas at Butterworth and Georgetown in Penang and

for Perlis at Kangar and Arau.

• Manufacturer

Teava Enterprise as a manufacturer that produce Butterfly Pea Tea in

Malaysia. We mainly focus on production and creating product and

finished product. We will sell our product to other business down chain

like retailer and wholesaler.

• Wholesaler

Wholesaler is the party that buys our product in a large quantity from us

as the manufacturer and they will sell it to retailers. They will take title to

goods, store, resells and ships the product. For Teava enterprise, our

wholesaler is Giant, Tesco and Mydin.

• Retailer

Retailer is the organization that sells products directly to consumer and

end users. As they are selling to consumer for personal use, the product

usually in a small quantity. Our retailer is Supermarket such as C-mart,

Yawata, Billion Supermarket and The store. We also have retailer from

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 Department store such as AEON and Parkson.

• Consumer

This direct marketing channel has no intermediary level and consist of

directly to consumer. Teava Enterprise sells their product through

website, Facebook, Instagram, Twitter and other social media.

5.8.4 Promotion

5.8.4.1 Advertising

Teava Enterprise advertise product using two advertising method which are through

internet and printing. For internet method, we advertise our product through website

and social media such as Facebook, Twitter and Instagram. For printing, we advertise

our product by printing our business card,

flyer and banner. We give our business card to those who are potentially buy and sell

our product such as wholesaler. We also give it to our clients and those people that

visiting our company or factory. For banner, we will hang it around Georgetown,

Penang and some crowd area. It will ensure the customer to gain information about

our product and they can also know the location of our company’s building.

• Facebook

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• Instagram

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5.8.4.2 Sales promotion

We are using sales promotion method in order to increase and build up customer

satisfaction. It will also help in persuading a potential customer to buy our product.

One of the sales promotion that we use is sampling by direct mail. By doing this, it

will break loyalty and persuade competitor’s customer to switch to our product. In

addition, by giving out free sample to the potential customer, we are actually

providing them the experience of consuming our product. If they like our product,

they will purchase in the future. Other than that, we also offer discount price. We are

giving 10 % discount for two weeks starting the first day our product is launch.

5.8.4.3 Public Relation

Our company will be taking aprt in Penang International Halal Expo & Conference

which are held at Spice Arena, Penang. During this exhibition, we will give promotion

up to 30% discount.

5.9 Organization Chart for Marketing Department (Arial 11, Italic)

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 Figure 5.9 Organizational Chart (Head of Marketing Department + workers)

5.10 Man Power Planning and Schedule of Remuneration (Arial 11, Italic)

Table 5.10 List of Marketing Personnel and Schedule of Remuneration: Head of

Marketing Department + workers

Position No of Monthly EPF SOCSO Total

Person Salary (13 %)
nel (RM) (RM) (RM)
(A) (B) (C) (A)+(B)+(C)

TOTAL

5.11 Marketing Budget (Arial 11, Italic)

Table 5.11 Marketing Budget

Item Fixed Monthly Other

Assets Expenses Expenses
(RM) (RM) (RM)

Fixed Asset
Signboard 123
Vehicle 456
Working capital
Transportation cost
Salaries
Promotion cost
Petrol
Other Expenses
Insurance and road tax
Banner

TOTAL

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.

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