UiTM CAWANGAN JOHOR, KAMPUS SEGAMAT

MKT 243 – FUNDAMENTALS OF MARKETING

NISHA LIPMATTE

PREPARED FOR: MADAM SITI FARRAH BINTI SHAHWIR

KUMPULAN: JAC 1105 K
SESI: SEPTEMBER 2019 – JANUARY 2020
SUBSMISSION DATE: 1 NOVEMBER 2019

NAME STUDENT ID
AINA SOFIA BINTI MD SHIH 2017835696
IYLIA ARINA BINTI MOHD KHIRUDDIN 2017215034
NAYLI FARZANA BINTI RAFIE 2017260196
NUR SAKINAH BINTI AHMAD BAKARI 2017204248
NOOR HANIS ATHIRAH BINTI NOOR HESHAMUDDIN 2017212336

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 ACKNOWLEDMENT

Alhamdulillah, first of all we would like to thank God as finally we were able to complete
our assignment that have been given by marketing’s lecturer to us. This task had been done
with all effort by group members even though a little bit problem were happened among us
while doing this assignment. Luckily, all the problems can be settled down and we were able
to adapt properly and wisely.

In performing our assignment, we had to take the help and guideline of some
respected persons, who deserve our greatest gratitude. The completion of this assignment
gives us much pleasure. We would like to show our gratitude to Madam Siti Farrah binti
Shahwir, lecturer of Fundamentals of Marketing (MKT243) for giving us a good guideline for
assignment throughout numerous consultations. We would also like to expand our deepest
gratitude to all those who have directly and indirectly guided us in writing this report.

Many people, especially our classmates and team members itself, have made
valuable comment suggestions on this assignment which gave us inspirations to improve our
assignment. We thank all people for their help directly and indirectly to complete our
assignment.

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 TABLE OF CONTENT

NO. CONTENT PAGE

1. Introduction 4
2. Main Issues 5
3. Product 6-8
4. Price 9
5. Promotion 10-14
6. Place 15-16
7. Conclusion 17
8. Appendixes 18

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 INTRODUCTION

Marketing is the method by which the companies build customer value and develop
strong customer relations to capture customer value. Marketing also includes the
management of efficient customer relations. The marketing strategy is to attract new
customers by offering superior quality and by providing value, to sustain and establish current
customers.

Marketing mix indicates that a company uses a series of actions or strategies to

market its brand or product in the market. Marketing mix consists of 4Ps which are product,
price, place and promotion. Generally, product refer to the item actually being sold while price
refers to the value that is set for a product. Place refers to the point of sale and promotion
refers to all activities undertaken to make the product or service known to the consumer. The
further explanations of 4Ps will be discuss in this report.

For this assignment, we are required to produce cosmetic or skincare or healthcare

product. Hence, we will produce a cosmetic product with our own brand which is Nisha
Lipmatte. In order to market Nisha Lipmatte we need to ensure the 4Ps is being met.
Therefore, this report explained all the details that need to be met to ensure Nisha Lipmatte
satisfy the marketing mix.

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MAIN ISSUES

Cosmetic industry has gained important command in the global market since the last
few decades. Since then, the industry has become more and more lucrative. However, there
are some issues that our company need to face and overcome it. Some of the most challenges
issues include halal certification, notification from National Pharmaceutical Regulatory Agency
(NPRA), green formulation and social impact.

Malaysia is Muslim majority country that is trying to play an important role in producing
halal products or services in order to achieve high potential as a new source of economic
growth. For the cosmetic product, the product must be safe for the consumer to use it. In
Malaysia, the department of Islamic development Malaysia (JAKIM) is responsible body for
regulation and certification of halal products including cosmetics. Therefore, our company is
responsible in order to ensure that all the ingredient used in the formula of Nisha Lipmatte is
comes from a halal sources in order to be qualified as Halal cosmetic product.

Furthermore, all cosmetic product marketed in Malaysia must first be notified by to the
National Pharmaceutical Regulatory Agency (NPRA) and must comply with the requirement
stipulated in the Guidelines for Control of Cosmetic Products in Malaysia. We need to ensure
that our lip matte must not contain any ingredients listed as banned substances or substances
used beyond its allowable conditions such as restricted concentrations and uses. Hence,
Nisha Lipmatte is formulated based on the ingredient that have been approved by NPRA.

Green formulation is defined as cosmetic products using natural ingredients produced

from renewable raw materials. Nisha Lipmatte is made formulated from the organic ingredients
such as organic castor, olive, apricot, jojoba oil and natural vanilla extract.

Most cosmetic and personal care companies are focusing on environmental impact
however Nisha Cosmetic is focusing on the social impact. Nisha Cosmetic is not only for the
women who wants to look good but it is for the society as a percent from the sales of products
will be donated to the charity institutions.

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1. PRODUCT

1.1 PRODUCT DESCRIPTION

In marketing, product can be defined as everything that is favourable or unfavourable

that a person receives in exchange. A product is an object or system that made available for
consumer use, it is anything that can be offered to a market to satisfy the desire or need of a
customer. Products can be classified into consumer products and business products.
Consumer products means that product bought to satisfy an individual’s personal wants as it
consists of convenience products, shopping products, specialty products and unsought
products. It is contrast with business products which is a product used to manufacture other
goods and services to facilitate an organization’s operations to resell to other consumers.

Nisha Cosmetics produce its product which is “Nisha Lipmatte”, a cosmetic product that
focuses on lips. This product fall under shopping product which requires comparison because
it is usually more expensive and found in fewer stores. As we notice, cosmetics products are
found in several stores such as Watsons, Sephora and Elianto. Thus, it requires consumer to
make a comparison to purchase in order to fulfill their wants.

Nisha Cosmetics emphasize on the ingredients of its lipmatte that contain organic
ingredients such as organic castor, olive, apricot and jojoba oil and natural vanilla extract that
enhance its feature of moisturizing. This lipmatte also highly colour pigmented and lightweight
formulas make lips pop in just 60 seconds. This feature is non-transferrable and kiss proof,
make it comfortable on the lips due to organic based.

The net content of lip matte is 15ml of liquid based lip matte that have about 5gm of
weight. The life span can be used of 2 years according to manufacturing date. The product is
currently available in 3 colours from mauve to pink. The colour code start with 01 named
Anggun, 02 named Mekar and 03 named Warda. The usage is basically apply directly to lips
as the lipmatte is provided together with brush for easy to adjust and handle.

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1.2 PACKAGING AND DESIGN:

According to Kotler, packaging is defined as an activity of designing and producing the

container or wrapper for a product. Packaging is the art of enclosing or protecting products for
distribution, storage, sale and use. Packaging also refers to the process of designing,
evaluating and producing packages. Packaging acts as a contain and protect the products,
promote to the potential buyers, facilitate storage, use and convenience and facilitate
recycling.

Nisha Cosmetic focus on the packaging of Nisha Lipmatte in order to establish an

impression of the product together to promote the product to the potential buyers. The liquid
lipmatte comes with glass cylinder container covered by the name of the product with the
height of 11 cm. It is protected with a silver lid cap that merge with brush, make it convenience
for consumer to place in their bags or even bring it along. The product also covered with a
3cm X 12cm X 3cm of rectangular box. It is to prevent the product from any spoilage, spillage
or even being expose with heat and light. We are using mostly red and pink colour as the main
colours of the packaging to indicate the main product itself. Red shows the energy, action,
passion, excitement and strength of the product. Using red as the packaging enable to
stimulate the senses of potential purchaser. Furthermore, using the pink colour as the
combination of the packaging shows the feminine and youthful suitable for cosmetics product
line.

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1.3 LABELLING AND DESIGN:

Labelling is the display of label in the product. A label contains information about the
products on its container, packaging or the product itself. It helps the product to stand out in
the market and identifies it as a part of a brand. Labelling can be in two forms either persuasive
or informational. Labelling can be said as persuasive if the type of package labelling is focuses
more on promotional theme or logo. However, the type of package of labelling is said to be
informational if it is designed to help consumers make proper selections.

Nisha Cosmetics concerns more on the informational labelling as it created to help

consumers in choosing the best selections together to reduce cognitive dissonance. In front
of its packaging consist of name of the product which is Nisha Lipmatte and the tagline of
“Reveal Yourself”. Nisha Lipmatte labelling consist information of ingredients, retailing
company, batch number, expiration, barcode, halal and local brand certified logo at the back
of its packaging. On the top of its packaging consist of colour code and colour name.

FRONT BACK TOP

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1.4 BRANDING :

Brand is a name, term , sign , symbol, design or combination of them intended to identify
the goods or services of one seller or group and to differentiate them from those of the
competitors. It tells them what they can expect from your products and services. Your brand
derive from who you are, who you want to be and who people perceive you to be. Branding
consists of brand name, brand mark, brand equity ,master brand and also copyright.

Nisha Cosmetics is a brand of Nisha Lipmatte. The brand name include letters that can
be spoken. In terms of brand mark, Nisha Cosmetics has established its logo to attract the
potential buyer about the product released. As the logo is focusing on the exclusiveness of
the product and the strength of the company. Thus, colour effect play a vital role in order to
be known to the target customers. Nisha is mostly using red and pink colour to show the
product existence to the potential buyers. The tagline of “Reveal Yourself” to indicate the
potential customer must have a confidence to show true their beauty.

Brand Name and Brand Logo

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2. PRICING STRATEGY

We are using status quo pricing where we will charge a price for our products identical
to the other competitors. We have decided to sell our products at:

Types of Lipstick Lipstick’s Code Price

Anggun 01 RM 29.90

Mekar 02 RM 29.90

Warda 03 RM 29.90

We already considering all the cost that are incurred in producing our products such as
labour costs, raw materials and packaging costs. Since we are still new in the market, we will
give an affordable price to our customers. We are using psychological strategy as our main
pricing strategy. The RM 29.90 is our introduction price and we will stick to that price for two
months and we will sell back at our original price which is RM 35.00. As we are using
psychological strategy, we put RM 29.90 to attract customers as the customers will read the
slightly lowered price and the customers will treat it lower than the price actually is. We put
RM 29.90 but conveyed by the customers as RM 29.00 and not RM 30.00, treating RM 29.90
as a lower price than RM 30.00.

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3. PROMOTION

3.1 DESCRIPTION ABOUT PROMOTION TO BE USED

Promotion that be used in our project is in the advertisement concept. We make an

advertisement to introduce our cosmetic product to the customer in the market. We apply AIDA
concept for our advertisement. From an advertisement, it can help people to know our product
better. The platform that we use to make customer know our product is social media platform
such as Facebook, Instagram and Twitter. Other than that, we use another media platform to
make our product well known. Another media platform that we use is to promote our product
in the television advertisement.

3.2 TRADITIONAL CONCEPT

For traditional advertisement, we gave our customers brochure when they purchase our
product. The content of our brochure is we provide a product descriptions so that our
customers is well known about our product. Besides, we make an advertisement in the
magazine to increase our product awareness

Description in details every medium of promotion used

1. Instagram

For Instagram, we make and advertisement in our product Instagram

(NishaLipmatte.co). In this account, we update all of our cosmetic product. We
make sure our customer know all about our product. We sometimes make an
Instagram live to explain our product in detail in term of the ingredient, the
advantages of product. We make sure that our customer will get information quickly
when we make promotion such as discount of product.

2. Twitter

On Twitter (NishaLipmatte), we always update our product to make sure our

product reach the customer’s knowledge. We do not take online order from Twitter.
Twitter platform is just to inform our customer and if they want to but our product
we will make sure our customer contact us through our direct message in
Instagram or Facebook or WhatsApp our staff to order the product.

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 3. Facebook

For Facebook, we give it to our staff to manage. We always make sure that our
staff doing their work well to update product from time to time in our Facebook page
(Nisha Lipmatte) because customer always waiting for our product to release a
new product. From this, we can make our staff doing their work in a better way.
From Facebook, our staff will take an order from customers and update it in the
office to make and product online transfer.

We also make a video advertisement to introduce our product in a better way. We are
implementing AIDA concept.

For attention, we are using this scene to gain attention from potential customers. By
having said that the customers become aware of our product.

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 For interest, we use this scene to make our customers having more interest of our
product. As stated in the video, it will make our customers interested by learning about benefit
of product.

For initiate the desire of customers, we use this scene. It will develop a favorable
deposition towards the product. Besides, this scene is for action. We persuade our customers
to purchase our product.

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From a good action, it will attract customers to buy our product.

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3. PLACE

3.1 CHANNEL USED AS A MEDIUM OF DISTRIBUTION

Nisha Lipmatte is using three level channel and four level channel. Three level channel
mean the manufacturers use retailers to distribute our products to the end users. Four level
channel involve agents where retailer will distribute small amount of stocks to the agent to sell
the products to the end users.

Manufacturer Retailer Consumers

Manufacturer Retailer Agents Consumers

3.2 LOCATION TO BE DISTRIBUTED

Location:
1. Angsana, Johor Baharu
2. Distribute to agents for selected areas:
 Batu Pahat, Johor
 Kota Tinggi, Johor
 Jasin, Melaka
 Shah Alam, Selangor
 Puchong, Selangor
 Setia Alam, Seangor
 Cheras/ Klang, Selangor

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3.3 PLACE STRATEGIES
We choose shop lot in Angsana Mall Johor Baharu as our main place to sell our product
because:
1. In term of rental price, the shop lot in Angsana Mall is a lot cheaper than others.
2. Angsana Mall is one of the well-known mall that offer an affordable price of products
that majority consumer more prefer to buy, this lead to the large number of consumers
comes to the mall and indirectly contribute to our sales.
Shop layout
1540 sqft (below floor only) RM 1,600/month

STORAGE
ROOM

The design of the shop layout help customers easily identify what kind of products that
we sell. We provide sufficient space between fixtures and products to ensure customers are
comfortable in our shop to enjoy the testers before buying.

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 CONCLUSION & RECOMMENDATION

The concept of marketing mix and four P’s have been strongly dominant paradigms
marketing stage for many companies including Nisha Cosmetic. The product is the part of
marketing mix, along with the price, place and promotion. Products can meet the need or
requirement and offers the market in order to attract attention, use or consumptions. Hence,
Nisha Cosmetic launch a lipmatte in order to meet the needs and wants of the customer.

For the pricing strategy, we are using psychological strategy in order to attract the
potential customer to purchase our product. Furthermore, for the promotion strategy, we are
using varies method of promotion however we are mainly focus on the social media platform
and video advertisement since it is the most effective way to promote our product. Nisha
Cosmetic is using three level channel of distributions and four level channel in order to
distribute the product to the consumers. Nisha lipmatte will be available at Angsana Mall, Johor
Bahru which the customers will easily get the product.

For the future, Nisha Cosmetic need to expand its business to Asian market as there
are a number of potential buyers in this continent. The business could also expand its
manufacturing units due to the presence of number of skilled and youth personnel.

As more people are turning interest these days, hence Nisha Cosmetic could improve
its formulation of their lipmatte in order to attract more potential buyers. Nisha Cosmetic can
improve their product by using more organic product since people nowadays are avoiding in
using the product that contain any chemical ingredients.

The productivity of the business is moderate at present but the demands in the market
are increasing at a rapid race. To meet this requirements, the business could increase its
productivity by reaching out for remote markets also and even diversifying its products to target
other market segment also.

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