PPT3301 PRINCIPLES OF AGRICULTURAL MANAGEMENT AND MARKETING SEMESTER 2 SESI 2010/2011

DR. GOLNAZ REZAI

GROUP MEMBERS NAME:
1.

CHOONG YOON KHONG

152619 153338 151845 152276

2. LIM EU RIANG 3. NURSYUHADA BINTI MD. ANUAR 4. NURUL ALMAS BINTI RAHMAT AZMI

1.0 Executive summary

Unza is the parent company of Safi. It was founded and based in Asia while having Singapore as headquarter. Unza manufactures and markets leading brands across 36 territories within South East Asia, Greater China and beyond producing a number of 48 brands with over 275 products in 1500 packaging formats that are sold in over 36 countries. Major categories of the personal care market under Unza including skin care, hair care, body care, childrens toiletries plus female and male fragrances. Among the leading brands that were produced include ENCHANTEUR, SAFI, EVERSOFT, ROMANO, IZZI, SUMBER AYU (personal care products) and VIGOR AND MAXKLEEN (household products).

MISSION STATEMENT: y To attain a position of selective prominence in the household and personal care markets across Asia as a marketer of high quality and innovative brands, which enhance the lifestyle of our consumers, y y To provide a good return on investment for theirs shareholders. Allow their employees to realize their personal ambitions.

Safi is a leading Halal brand with a unique and comprehensive range of skincare, personal care and toiletry products. It was developed exclusively to meet the needs of modern Muslim women and men, producing products with fines natural ingredients that conform to Muslims Syarak requirements. The company firmly steeped in Muslim traditions by producing products that are alcohol and gelatine-free. The list of products category under Safi including skin care, hair care, body care and oral care with the oral care production line producing Siwak extract for whitening purpose, Sea cucumber for gum protection and Herbal Orange for the purpose of generating fresh breath.

MARKETING OBJECTIVES: The purpose of us having this marketing plan is to introduce new variant of toothpaste into the market, where by combining both sea cucumber and Kayu Sugi, we can produce the effect of both whitening and gum protection purposes. Besides that, with the growing health consciousness in consumers, this product will be able to satisfy the needs of consumers while providing another option for them from a variety of toothpaste products.

2.0 Industry analyses

SWOT ANALYSIS STRENGTH y New technology - to culture sea cucumber y y y Well-trained workers Production quality - well known Wide distribution channel THREATS y y Local company Pollution can disturbed the culturing program of sea cucumbers y Changing of customer favors - when there is new product in market. y y Government policy and taxes Other products with Halal certificates y WEAKNESS y Rear combination of ingredient-

sometimes cannot be accepted by customers. Limited sources

OPPORTUNITIES y y y y y y Changing of customers favors. Natural resources Halal certificate Unique and new in market Health care Well-known company

Safi toothpaste products have long been in the market and have its own share of market. Together with the tagline Safe and Pure it becomes public choice nowadays. With the strong reputation behind us, we would like to present our new product which is toothpaste with combination of Siwak extract together with sea cucumber. This product has its own strength as its works with the new technology to get the best extraction from those natural resources. It is at the same time, the weakness of this product as it depends heavily on availability of the natural ingredients especially the rare gall tree (Siwak), and depletion of sea cucumber. Therefore, as to conserve the resources, Safi will go with the plan to culture sea cucumber. Together with the already established company, Safi has well-trained workers. These factors can help Safi to resolve the resources constraint. Therefore, the quality of this product will be at its highest level. With the advantage of having a wide distribution channel due to Unza being Safis parent company, this new product will easily penetrate into the market once being introduced to the public. Based on observation, this product will become people choice for certain factor. First, the changing customer favors. As the product is new in market, people will be interested to try this product. Although Safi comes from local company but it still can be people choice as they will buy something based on their necessity. There are a lot of toothpastes based on Siwak and sea cucumber extraction but neither of them has the combination of these two natural source. It is better in terms of health consciousness than toothpaste with chemical basic that will give long term effect. Secondly, change of lifestyle. Healthy lifestyle is recommended for each person and such health care lifestyle also can change their choice of toothpaste. Their choice should be natural basic material as it can be considered as safe in long term. The natural resources of ingredients make this product differ from other toothpaste. Together with Halal certificates given from JAKIM, people awareness about Halal product can be recovered. Most of the Malaysian is Muslim, where they will choose what is best for them following syarak. Nonetheless, this can also be quite a challenge for Safis product because there are much other companies having this Halal certification such as Colgate, Mumin

and a few more. If we put Safis product into competitors list, it also can give competition to other companys product. Although this toothpaste can be considered as new product but since the company is well known, publishing the product should be a walk in the park. Besides that, all companies will face the same problem which is the government policy and taxes. We, as the producer cannot expect the changes made on taxes. Therefore this is one of threats that exposed to each company and we need to consider this under total cost from each product. By hook or crook, we has to tackle all the problems arises in order to develop the company. We must consider everything to ensure this product can penetrate the market and compete with other products. PORTER FIVE FORCES In these economic issues, rivalry can drive the business profit to zero and perhaps to worst condition. Due to this situation, porter five forces actually can help to identify the firm strategy for rivalry. Any firm need to organize owns strategy for their product being penetrated the market. There are five factors which need to take concern as in business that are competition in the industry, potential of new entrants into industry, power of suppliers, power of customers and threat of substitute products. Refering to the first force that is competition in industry, the closes competitors for this Safis sea cucumber and Siwak extract are Colgate, Mumin, Fresh and White and also Sensodyne. There is little relationship between each product that makes it the competitors for this Safis new product. For example, Colgate also gets the Halal certificates from JAKIM as well as Mumin. Fortunately, Mumin toothpaste is too minty and makes it not suitable for children but both of these competitors has yet to come out with the combination extract as our new product. This makes our product differ from others. As for Sensodyne, they are far differ from this Safis toothpaste as their products were produced chemically comparing to our naturally produced product. The second force is potential of new entrants into industry. When analyzing industry competition, it is not only important to analyze the existing competitors currently within the industry, but also any competition from a potential new entrant into the industry. Due to this

situation, there are potential of new toothpaste product come into market. The differences that can be made to differentiate those products are the price elasticity, brand and also the product quality as well. Furthermore, the power of suppliers and power of customers are also very important forces that must be taken into consideration. Without the existence of supplier, this product cannot be processed and the customers interest can influence the profit of firm. As supplier, they have the power to control the cost of material that they supply which can also affect the total cost of production. While for customer, they have the power of purchasing. They will choose the best among all products in the industry before deciding where to put their money on. Besides that, the threats of substitute products also give some pressure towards our business. This is due to the fact that substitution product will always follow the present product but with better quality or extra benefit to the purchaser. If this situation occurs, we still have strategies to compete with them. Through marketing strategy, the four P whish is price, place, promotion and product still can help this business to keep on its track. The competition will become more intense if the company can play with prices and advertise the product widely. If there are any companies try to substitute our product with their new product, this will increase the forces on power of supplier and power of customers. Therefore, based on Porter five forces, company need to take consideration of everything to ensure the product maintain as peoples preferences.

3.0 PRODUCTS and CORRESPONDING TARGET MARKET

GEOGRAPHIC FACTORS: y y Whole MALAYSIA with population of 28.3 million. Total targeted population is 25.6 million of citizen aged above 5 years old.

DEMOGRAPHIC FACTORS:  Malaysian citizens with 5 years old and above.  90% and above of the Malaysian population can use our product.  Consumer have a house-hold income > RM 300  60%++ from the population are Muslims.  Majority of the consumer required Halal products.

BEHAVIOUR FACTORS: y Consumer taste and preferences to toothpaste with certain characteristic or function.eg. whitening and fruit flavor. y y y Consumers are more proportional to choose the products with lower price. People who often have oral problem. Muslims is proportional to choose Halal product.

MARKET NEEDS: SAFI, having the idea to produce the toothpaste that can, not only able to whiten the teeth but also to cure and prevent oral problem, for example, ulcers. This product is considered new in the

market where there is no other company that is producing such product. Besides, the toothpaste is designated to produce with natural resources which are sea cucumber and Kayu Sugi, a type of herbal crop. This is definitely adapted to market needs, which are harmless and natural. Last but not least, this product is a Halal product. MARKET TREND: Since the world getting developed, cost for getting resources for production are increasing, some irresponsible person used some harmful substituent in the production and cause health problem and even death to the customer, are alarming the world and wakening the public awareness towards the safety of the new products in the market. Safety control and inspection for product are a must. Besides, consumers nowadays are more concern towards health promoted products, natural and chemicalfree products will attract their sight. Since Malaysia is an Asian country containing majority of Muslim citizens, the market will be more concerned on Halal certified product. This can be easily seen, as most of the products in the markets are certified as Halal products. In order to capture consumers interest, something new and special are required. The product can only survive, only by adapting to the market and consumers flavor.

4.0 MARKETING STRATEGY

Marketing strategy includes overall marketing objectives and mission statement in this section. Firstly is the products positioning. Our company is a well known company in all over the country. We are famous of producing products made from natural resources. Therefore, product positioning for this newly introduced product shouldnt be a problem as the consumers are all but familiar with the companys production. General strategies that we use are all based on the direction to reach the objectives and fulfill the mission statement. The mission statement of our company based on the new product is the target sales. The target sales that we made are based on the quality of our new product. Another mission statement is to address the oral problem of our customer. Furthermore, our marketing objectives are to send out the message about our new product and to increase the companys profit and variability. Therefore, based on our objectives and mission statement, our

general strategies is to make an advertisement in all sorts of ways like television, radio, Facebook and so on in order to promote our new product. Besides, other general strategies are by giving samples to customer like in a road show tour. Then, our products marketing mix is based on four Ps. The first one is the product itself. We had designed new toothpaste that is more portable and comfortable to carry compared to an old design. This comes with varies kind of sizes. Our product mains function is to treat people or citizen with oral problem. Second is the products pricing strategy. The target price that is agreed is the range of between RM4-RM9 and each of it has the prices based on the sizes, function and the company. Some of our pricing strategies are like combining old product with a new product and skim and penetration. For example, by buying old product, customer can get new product for free. The company also includes segmented pricing like different price for different function or natural resources. Furthermore, our distribution channels include many places like supermarket, online and groceries store. All of the distributions are in Malaysia. However, the company also plans to widen the distribution channel to Asian country and Middle East country like Egypt where Muslims promise a significant share of market. Our promotional activities are like health campaign or road show. For example, Safi toothpaste can be distributed to customers or patients after a minor checkup of oral and teeth. Our product also can be promoted through advertisement, giving sampling to customers besides conducting some contest like collecting the product, enter contest and win. Since Safi is under parent company namely UNZA, there will be another alternative for the promotion of our product. For example, compiling our product with another product which is under the same company with Safi as a tester for customers to experience whether our new product matches their tastes.