UNIVERSITI UTARA MALAYSIA

SECOND SEMESTER SESSION 2019/2020

BPME3033 ELECTRONIC COMMERCE
(Covid19)

GROUP PROJECT
B2B ELECTRONIC MARKETPLACE

Created by:

NO NO MATRIC NAME
.
1 268249 SHAFIRA VELLYA
2 26826 OKTANOV VICKY
4 268270 REZKY MUTIARA ZORENA
5 268273 ALFIKRI HAFIZ

2020
 MARKET ANALYSIS

At present, it has become a global pandemic affecting hundreds of countries with

positive victims reaching hundreds of thousands of people, including Indonesia. The
Corona virus in Indonesia was detected in early March 2020, at a dance event in Jakarta,
which has now infected thousands of people. The existence of the Corona Virus
pandemic has disrupted almost all business industries from various sectors except
health, and changed the behavior of the world community in all circles.

Why cloth mask? for healthy people, cloth masks can be used when in place.
Although the effectiveness of cloth masks is not as big as surgical masks in warding off
viruses, but these masks are also very important. Fabric masks are more environmentally
friendly. In contrast to medical masks that are only disposable, if this can be used
repeatedly, so that it will not produce waste. We can wear cloth masks by washing after
use.. Cloth masks have become a rare commodity in the middle of a corona pandemic.
Even if there were, the price soared several times higher. No wonder in every pharmacy
and health stores, masks are limited to prevent people from buying up and reselling at
high prices. As we already know, medical masks have become a rare item in the midst of
the COVID-19 pandemic. The majority of medical masks are green, N95 masks and the
like are hard to find on the market. Even if there is a price is also fairly expensive. When
the demand for an item rises, the supply of goods will decrease further. The decline in
these items, will result in scarcity so that prices will rise. With this, of course, the higher
business opportunities for cloth masks. No wonder that in several industrial conventions
there are already many manufacturers producing fabric masks because the demand is
quite large. Initially, the world health organization, WHO and the CDC did not recommend
using a mask if you are not sick or do not work in a place that has high potential for
disease exposure. However, recent research on the development of the corona virus or
COVID-19 states that it is feared that there are groups that are unwittingly vulnerable to
spread the corona virus.

The use of cloth masks also has other advantages, namely the price is more
affordable. This cloth mask can also be made at home using simple ingredients. This is
one of the advantages of fabric masks as an alternative way in the midst of increasingly
rare mask conditions. Not only is the price cheap and easy to make, the use of cloth
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masks can also be sparingly. Not without reason, the use of cloth masks can be washed
and reused so that it is not spared from wearing too wasteful. No need to worry about
hygiene, this cloth mask can return clean and sterile after washing properly. Its use is
economical and can be used repeatedly, making use of this fabric mask helps reduce
existing waste. The use of disposable surgical masks in general must be removed
immediately after use. This, of course, causes a lot of mask waste to accumulate in
landfills. Especially if this disposable mask is used by almost everyone. In fact, there are
also many business people who divert their business into cloth mask business.

Because seeing the current situation, we took the initiative to make something that
is needed at an affordable price. We make masks from cloth, as we know these masks
are not disposable but can be repeated, besides that cloth masks are also able to
minimize the spread of the corona virus into our bodies. Fabric masks are now much in
demand by consumers. In addition to the capital of a little cloth mask too many diacri and
of course we want our products to be easily obtained. Especially fabric mask products
also have a longer expiration period than the food business. So as to minimize the risk of
business loss in that field.

Previously the government and health workers advised to always keep a distance
of about 2 meters when meeting with others. However, recent research has revealed that
droplet particles can be thrown more than 2 meters and remain on the surface for some
time. The use of homemade cloth masks can certainly help in times of crisis as
emergency mask supplies, but physical distancing is still the key to preventing the spread
of the corona virus. Perform effective physical distancing by staying at home, away from
the crowd, and not traveling when it's not necessary.

Through entrepreneurship the community can also help the government reduce the
unemployment rate which is increasing due to the corona virus outbreak. It is also
through business that the income of the surrounding community will be helped amid the
economic difficulties of the family due to this outbreak.

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 A. About Company And Product

We established this online “cloth mask” business in March 2020, consisting of 4 men and 2
girls, we are Alfafri Hafiz, Oktanov Vicky, Rezky Mutiara Zorena, and Shafira Vellya. We all want to
enter 21 years now. We are from the dual degree unp program which we are currently studying at a
university in northern Malaysia. We are at UNP majoring in Dual Degree Management and at UUM
we are business administration.

We set up this business by seeing such enormous opportunities, especially in a pandemic like
this. As we know it is very important to maintain health to prevent the transmission of this corona
virus. With that who and the government has called for not forgetting to wear masks. Masks are very
much sought after today. So we took the initiative to why not try the mask business. Medical masks
can only be used once the wound is removed. We make cloth masks to be used repeatedly with only
using washed and dried again. It is not as effective as medical masks but this cloth mask is highly
sought after and can be used repeatedly.

We call this business "the Indonesian fabric mask" targeted by everyone, especially in
Indonesia. Our products are not only ordinary cloth masks but we also offer several choices such as
pearl cloth fabrics, character cloth masks, and basic cloth masks. We produce this so the buyer can
adjust it wherever he goes and it is also available in several colors. Even though we wear cloth
masks, it is not an obstacle for us to remain fashionable. Our fabric masks are very easy to get,
environmentally friendly and affordable prices.

Seeing a pandemic like this, we hope that this fabric mask of our product is very useful for
many people.

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 B. Industry Description And Outlook

Example of product :

Our fabric masks are made from quality fabrics. Even though our fabric masks are relatively
inexpensive, we continue to prioritize consumer cleanliness and comfort. This mask is made of quality
soft material that is easy to breathe. This mask measures 22 cm X 13 cm per pcs. We also provide
choices in several colors and various motifs with neat and strong stitches. This mask has the right
hook thickness, so it's comfortable not to make ears hurt. When viewed from the outside this mask
has a motive side of choice and if it is reversed it has a plain side so it doesn't interfere with
consumers to talk. This mask is very affordable at all, a plain mask at a price of Rp. 8,000 while a
mask that is patterned enough at a price of Rp. 9,900. by purchasing this mask once consumers can
wear it many times with the condition that it is used immediately and then washed again.

We also take advantage of this pandemic opportunity by opening up for suppliers, retailers to
dropshippers. This cloth mask business is perfect for those of us who have been working informally,
or as a way to earn extra income in this pandemic condition.
.
C. Market Needs

Businesses should start by knowing the consumer's interests, desires and needs. It’s easier to
sell what consumers want and need than try to sell something they don’t see the benefit in buying. In
a fast moving world, it should be a competitive edge having the chance of monitoring the market,
detecting what can be a source of a profitable new business. Market needs inform organizations
about what products develop, for what customers, at what cost, through which distribution channels,

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reducing the uncertainty that a new product/service development always brings with it. Mask is one of
the things that are needed by humans to protect themselves from various kinds of germs and viruses
that will allow entry through the nose and mouth. Especially during the COVID-19 pandemic such as
now. Not only that, people need masks to protect themselves from air pollution especially people who
live in big cities.

Indonesia is one of the countries most affected by COVID-19, many people stop working and
there are also people who are forced to continue working to support their families. At this time,
everyone is looking for a mask to protect themselves from this virus. There are even some circles who
hoard masks and sell them at high prices. Everyone is recommended by WHO to always wear a mask
when leaving the house. Seeing opportunities like this, we were moved to sell masks with fabric-
based materials at low prices and with lots of stock. The need for this fabric mask will be able to
replace conventional masks which are expensive and can only be used once and then discarded
while the cloth masks we sell can be washed and used multiple times.

D. Unique Sales Proposition

Unique Selling Proposition or also known as Unique Selling Point is a distinguishing factor in a
product / service that is not owned by competitors / competitors, products or businesses. Generally,
this USP becomes a determinant that will make the product / service more special for prospects /
customers.
The distinguishing factor of our products which has advantages over other mask products is
the material used to make masks, the motifs and colors of masks and the price offered. the material
used is cloth. this cloth can block viruses and air pollution from entering the body. This cloth mask can
also be washed and used repeatedly. masks that we sell have a variety of colors with plain motifs and
there are also various kinds of motifs. last is the price offered. We sell the price of this mask is lower
than the various health products that are currently on the market at high prices.

E. Competitive Analysis

Competitive analysis is a basic component of the company's strategy. Most companies do not
do this analysis systematically. Most people do a competitor survey only through experience, guesses
and intuition obtained from interesting news from information about competitors which every manager
gets continuously. We are taught to analyze competitors not based on the above things such as
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intuition, guessing and experience but through the data obtained. There are two data, secondary data
and primary data. Secondary data used are news, company reports, journals, speech transcripts and
other published information. For primary data, it can be obtained directly, such as interviews with
resource persons who publish information, meet face to face with the decision maker and all things
that cannot be obtained from secondary data. To obtain primary data, we can do this by interviewing
suppliers, customers, business review writers and government agencies such as BPS. After the data
is collected, one by one is identified which data are relevant and which are not. in serving clients who
need Competitor Analysis services is to identify the strengths and weaknesses of the company, then
do data collection (secondary data) to conduct a SWOT analysis of head to head competitors, then
conduct interviews with experts (experts in the industry being run) and who Finally, an analysis and
interpretation of the findings of the Competitive Intelligence has been carried out.

SWOT analysis is usually only used by companies to analyze the strengths of weaknesses and
threats and opportunities that exist within the company itself, but the actual SWOT analysis can also
be used to analyze competitors by filling in the characteristics of competitors in the existing matrix.
Following are examples of the SWOT matrix used to analyze competitors.

A. Strength

Strength is the internal situation of the organization in the form of competencies / capabilities /
resources owned by the organization that can be used to handle opportunities and threats.
Strengths of this product:

1. The concept of style offered is the latest or the latest trendy updates.
2. People's price or can be reached by all circles, with good quality materials.
3. Have a private website and forum.
4. Prioritizing the latest and latest models according to trends.
5. Security in the delivery of goods sold.

B. Weakness

Weakness is the internal situation of the organization in the form of competencies / capabilities/
resources owned by the organization that can be used to handle opportunities and threats.
Weakness of this product:

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1. Lack of ability to provide goods (ready stock) sometimes has to wait to be able to get the items
ordered.
2. Capital to develop a business is still lacking.
3. Large capital to purchase goods.
4. Still haven't made their own mask product as a superior brand.

C. Opportunity

Opportunities are potentially beneficial external situations of the organization. Organizations that
are in the same industry in general will feel disadvantaged when faced with these external
conditions. Opportunity of this product:

1. The market demand is continuously there, supported by the trend of masks that continue to
grow.
2. It is rare that online mask shops provide forums to share with each other.
3. Social media helps to market quickly, supported by the number of influencers that are
appropriate for the target market (not affected by the disease).

D. Threat

Opportunities are external situations of the organization that have the potential to cause
difficulties. Organizations that are in the same industry in general will feel disadvantaged / treated /
threatened if faced with these external conditions. Threats from this product:

1. Many online mask sellers have sprung up, offering prices that are sometimes much cheaper.
2. Prices from suppliers are increasingly expensive and tax regulations are changing from the
government.

F. Target Customers (Analysis)

How to determine the target is depends on the needs of the business that you are running. You
should pay attention to these three things:
1. New Consumer, determine segmentation based on new business so you need to find new
customers.

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2. Focused Consumer, This is usually done to find consumers that you have but to support a
sustainable business.
3. Supported Consumer, this Consumer is related to your supporting product needs.

From the segmentation analysis that has been done, it can be seen that the target customers
targeted by this online shop are middle to lower income consumers, with minimal needs that are
sensitive to price and quality. Masks sold today are premium masks at high prices, therefore this
online shop makes masks at affordable prices for middle-low consumers.

G.Pricing Strategies And Positioning

a. Price

Price is the amount of consumer money that must be paid to get a product. Price strategies
can be measured using: discounts, credit periods, price lists, payment periods.

From an organizational point of view there are 3 basic pricing strategies where a number of
tactics can be developed, including (Dann & Dann, 2007, p.291):
A. Above the market (above the market), i.e. premium prices supported through competitive
advantage.
B. At the market (according to the market), where the organization determines the same price as its
competitors.
C. Below the market, which needs to be supported by cross-funding from other parts of the company,
or depends on cost advantages.

Fabric masks are sold through this online shop and with limited products. The price of this
fabric mask is Rp. 8.000 and purchases are free of charge. The price is very affordable when
compared to other masks. While the competitor price of this fabric mask is in the range of Rp.
9.900.

b. Positioning

Where the company's positioning arrange market offers to place competitive positions with
competitors that can be embedded in the minds of consumers.

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The differentiation and positioning steps consist of three step:
1. Identify a set of competitive advantages different where to build positions.
2. Choose the right competitive advantage.
3. Choose the overall positioning strategy.

According to Hooley, Piercy, and Nicoulaud (2008), the marketing mix of products, prices,
promotions, and distribution is a term in which a company embodies its strategy of a statement of
purpose for doing business in the market. Guided by a marketing strategy, the company designs
an integrated marketing mix consisting of factors under its control - products, prices, places, and
promotions (4Ps). (Kotler and Armstrong, 2016, p.74).

To identify market positions, this online shop positions itself as an online shop that has an
affordable price. In addition, this online shop determines competitive advantage where the
products produced can be used for a long period of time, making it very safe for use by consumers
and very maintaining the quality of its products.

H.Promotion Strategy.

Promotion refers to activities that communicate the benefits of the product and persuade
targeted consumers to buy it. (Kotler and Armstrong, 2016). In the book Dann & Dann (2007,
p.293), promotion is the most visible part of the marketing process. Promotion also covers all
forms of communication with consumers and stakeholders from mass advertising to the
development of personal sales presentations. The key components of marketing communication
are included in the promotional mix, namely:

1. Advertising.
2. Public relations.
3. Personal selling.
4. Sponsorship.
5. Sales promotion.

In terms of promotion, this online shop relies on advertising to promote its products to
consumers. The online shop uses advertising promotions through Facebook and Instagram. Other
promotions given to consumers are free shipping.

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 Free shipping: Shipping costs are often cited as one reason consumers don't shop online.
Offering free shipping is a great way to increase conversions. Use this offer with minimum
purchase requirements to increase the value of consumer orders.

I. Online Marketing Strategy

To realize its vision and mission, the Cloth Mask Indonesia company uses Alibaba.com's
internet platform, through which we the company can grow. Alibaba.com is the right place to market
the Cloth Mask Indonesia company's products. Alibaba is the largest retail and e-commerce company
in the world. that's why we market it on Alibaba.com

Username Id : clothmaskindonesia

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 In addition to Alibaba.com, the company "Cloth Mask Indonesia" also uses it to promote it on
social media, namely Instagram. there the company posted all photos of the company's fabric mask
with a clear caption so that consumers know the details of the company's product results and do not
need to ask again. Indonesian cloth mask company also arranges background feeds on Instagram to
look neat and attractive to consumers.

J. Demographic And Segmentation

The importance of market segmentation is that it makes it easier to focus marketing efforts and
resources on reaching the most valuable audiences and achieving business goals.
Market segmentation allows you us get to know our customers, identify what is needed in your market
segment, and determine how you can best meet those needs with our mask product. This helps us to
design and execute better marketing strategies from top to bottom.

Age :
For this mask we sells for all age except for toddler under 2 years because mask will harm their
respiratory systems, this mask also good for teenagers because we have variation patern and
color so this mask can be a good fashion for young generation will use this mask.

Income :
For this mask we decide to set the price is very cheap so all people from low income until high
income can afford this mask.

Gender :
All gender can use this mask since we offer many variation color and pattern so men and
women can choose their own mask pattern that fit to they gender

Location :
Since we sells this mask online so we decide that we can deliver the mask too all cities in
Indonesia, and we will not have a offline both we only sells it through internet using shoppee
and others media.

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 K. Target Market (Location, Region, Etc.)

The target market is a group of consumers who are the target of a business or company
approach to buy the product being sold. Target markets are usually grouped by age ranges, traits, or
characters and habits that are almost the same.

The target market that we take is people from Indonesia from all ages ranging from children,
teenagers, adults and even parents. because at the present time, people really need a mask and do
not look at age and gender. A mask is an item that everyone believes can prevent viruses from
entering the body. in the target market of Indonesia itself, this mask will continue to be needed,
because Indonesia is a tropical country and in some cities have very poor quality, for example, the
city of Jakarta. we will sell this mask in one e-commerce in Indonesia, namely shopee.

L. Competition

Competition is the competition of sellers who are both trying to get profits, market share, and
the number of sales. Sellers usually try to outperform competition by differentiating prices, products,
distribution and promotion.

Competition in selling masks is very high and dense, at the time of this pandemic conditions
many new mask sellers have sprung up in all e-commerce in Indonesia.
medical masks sold in e-commerce are still sold at very high prices and the need for masks in
Indonesia will always be high because of the current conditions. this is the basis for us to win the
existing market competition, because the masks we sell are fabric masks that can be used many
times and can also be washed with plain motives and also have a variety of motives.

M. Barriers To Entry

Although it is not too severe, but it still has obstacles, get the price of cloth masks to make
Indonesian cloth masks, replace the cloth from before, so we still maintain the quality of products
made. because of this pandemic the cloth mask company also experienced shipping times that
occurred because there were certain restrictions in each region, which is usually 3 days until now
there is a pandemic until 5-7 days.

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N . Other Related Contents

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