ENTREPRENEURSHIP IN ORGANISATION MARKETING PLAN

SHINE GLOBAL LOGISTICS

MARKETING PLAN

Prepared By:
VELAITHAM S/O NARINASAMY
(MARKETING MANAGER)

Date:
10 MARCH 2017

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ENTREPRENEURSHIP IN ORGANISATION MARKETING PLAN

Table of Contents
1.0 EXECUTIVE SUMMARY....3
1.1 Objective....4
1.2 Mission...4
1.3 Vision.4
1.4 Values4
1.5 Organization Structure..5
1.6 Product and Service...6
1.7 Assets.6
2.0 INDUSTRY ANALYSIS.....7
2.1 Target Market.8
2.2 Segmentation and Positioning8
2.3 Market Analysis.9
3.0 SWOT ANALYSIS....10
3.1.1 Strengths10
3.1.2 Weaknesses10
3.1.3 Opportunity11
3.1.4 Threats11
3.2 Competition....11-12
4.0 MARKETING STRATEGY13
4.1 Mission.13
4.2 Marketing Objectives...13
4.3 Financial Objectives.13
4.4 Marketing Mix14-15
5.0 FINANCIALS....16
5.1 Sales Forecast...16
5.1.1 Sales Forecast Chart...16
5.1.2 Total Sales Forecast Chart.17
5.2 Marketing Expenses Forecast..18
5.2.1 Expenses Forecast Chart18

6.0 APPENDIX 1.....19

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1.0 EXECUTIVE SUMMARY

SHINE GLOBAL LOGISTICS is a dedicated and established company that provides a

full transportation services at Peninsular Malaysia and Singapore. The past two years we are

provides for our clients to arrange for the movement of its goods through road transportation and

container haulage all over Peninsular Malaysia and Singapore. We are mainly focused on our

client from the chemical, furniture and electronics industries.

In the next year, SHINE GLOBAL LOGISTICS seeks to enter new target market which

is food and beverage industry in Peninsular Malaysia and Singapore. In this task, our marketing

manager plan to optimize its future position by diversifying its revenue streams and leveraging

its core competencies.

Food and Beverage Industry Chemical Industry Electronic Industry Furniture Industry

1.1 Objective

The objective of marketing plan is as shown below:

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 ENTREPRENEURSHIP IN ORGANISATION MARKETING PLAN

1. Effective moves people and freight where they need to go in a timely manner.
2. Efficient delivers the right infrastructure and services to the right level at the best cost.
3. Safe and Responsible - reduces the harms from transport.
4. Resilient meets our future needs and endures shocks.

1.2 Mission
SHINE GLOBAL LOGISTICS mission is to deliver services and solutions that are

convenient, effective and represent good value for money. We help our customer to make more

efficient, effective and safe transport choices.

1.3 Vision
SHINE GLOBAL LOGISTICS is being a leading transport and logistics services

company in the Peninsular Malaysia.

1.4 Values
SHINE GLOBAL LOGISTICS committed to providing our customers and employees

with an environment that fosters the following values:

1. Cooperation, dedication, honesty, creativity and trust.

2. Mutual respect and appreciation.
3. Professionalism.
4. Hard work and dependability that are measured and rewarded.

1.5 Organization structure

MARKETING
MANAGER

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 ENTREPRENEURSHIP IN ORGANISATION MARKETING PLAN

CLERK

DRIVER DRIVER

DRIVER

1.6 Product and Services

1. Cargo transportation services all over in Peninsular Malaysia and Singapore.

2. Container haulage services.
3. Custom clearance for export and import goods.

1.7 Assets
1. 3 units of prime mover with curtain sider container.
2. 10 units of container.
3. 10 units of prime mover with curtain sider from sub-contractors.

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2.0 INDUSTRY ANALYSIS

With over two year experience, SHINE GLOBAL LOGISTICS offers high level

expertise in the international logistics industry. Currently, it focuses on providing logistics

services in chemical industry is 40%, electronics industry is 40% and the balance 20% is

furniture industry. The breakdown of business services provides is 40% export to Singapore and

60% transportation in Peninsular Malaysia.

Because of the recent economy downturn, SHINE GLOBAL LOGISTICS primary source

of business, the electronics industry has slow down. As a result, next year SHINE GLOBAL

LOGISTICS intends to pursue the food and beverage industry in market which still continued to

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grow. By expanding into a new market, we will have the opportunity hedge its risk against any

future downturns affecting any of the industries in which it works.

35

30

25

20

Export Import
15

10

0
Chemical Industry Electronic Industry Furniture Industry

2.1 Target Market

The target market groups SHINE GLOBAL LOGISTICS is planning to focus on

aftermarket and wholesalers of food and beverage industry. The other target market groups under

consideration were direct manufactures in the Klang Valley, Seremban industrial park, Melaka

industrial park and Johor Bahru.

Due to SHINE GLOBAL LOGISTICSs prior experience in the electronics and chemical

industry business, the aftermarket food and beverage retails outlets and wholesalers needs were

the most similar to servicing the electronics and chemical industry business. This target market

groups have large distribution centers to which the goods are delivered.

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2.2 Segmentation and positioning

Table 1.0: Segmentation and Positioning

Food &
Chemical Electronics Furniture
Beverage
North
South
East
West
Central

2.3 Market Analysis

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50

45

40

35

30

25
Series 1 Series 2 Series 3 Series 4 Series 5
20

15

10

0
Nestle Food coca cola F& N Pokka Food Projected Revenue Growth
(RM in billions)
201 201 201 201 201
Potential Customers 0 1 2 3 4
33. 35. 37. 40. 43.
Nestle Food 1 4 2 7 9
29. 31. 33. 36. 39.
Coca Cola 4 8 2 4 5
26. 27. 29. 32. 35.
F&N 7 6 5 4 7
24. 25. 27. 28. 31.
Pokka Food 1 9 6 9 5

3.0 SWOT ANALYSIS

As a mid-size company, SHINE GLOBAL LOGISTICS is able to deliver customizable

personalized solutions for each of its clients. It has experience in the transportation services in

the past two year of service giving credence to its ability to deliver. SHINE GLOBAL

LOGISTICS further distinguishes itself by developing its own tracking GPS system. So the

company can accurately give real time responses to its clients about their products location.

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ENTREPRENEURSHIP IN ORGANISATION MARKETING PLAN

3.1.1 Strengths Unique Selling Point (USP)

1. True expertise. Over two years of success within the logistics industry.
2. A customer driven, privately owned organization with a reputation for exceeding

expectations.
3. GPS functionality is a giant step above traditional freight forwarder and carrier

applications.
4. Contacts. Years of industry experience yields word of mouth marketing, contacts and

channels that create networks for increased buying power.

5. Customs compliant and certified security conscious.
6. 24 hours service to our client.
7. Deliver high cost goods with security system to the destination. Example: Electronics

product delivers to airport with full security.

3.1.2 Weaknesses

1. Decreases in revenues from other segments (electronics) create fewer resources to

develop new markets.

2. Have not yet attended any trade shows.
3. Have bid on but not won any retails segment contracts.
4. Do not have a name brand such as SKYNET.
5. Not ISO certified boilerplate legal requirements.
6. Assets:
- Warehouses Rental
- Trucks Sub contractors (Refer to Appendix 1)

3.1.3 Opportunity

1. Food and beverage industry is growing by large percentage.

2. Export to overseas by road way. Examples: Singapore and Thailand.
3. Food and beverage industry hold up well in economic downturn.
3.1.4 Threats

1. Significant competition already exists within the food and beverage logistics industry.
2. There are not many barriers to entry therefore additional competitors can easily enter the

marketplace.
3. Other companies creating more competitive technologies.

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4. Maintaining profits under price pressures from customers and consistently delivering

cutting edge technology to customers.

3.2 Competition

The key elements in purchase decisions made by third party logistics clients include high

levels of customer service, reliability and tracking ability. Competition comes from several

forms:

1. National and well-known brands such as FedEx and DHL. A key disadvantage with well-

known brands is brand recognition, reach, additional services and negotiating power. A

key advantage in competition with major players is increased personalized service.

2. Niche providers. A key disadvantage is existing developed relationships and loyalty.

Advantage of SHINE GLOBAL LOGISTICS includes a think outside of the box

attitude and wider breadth of experience.

3. Specialized services. Potential strengths include exceptional know how. However, issues

can result from the lack of a larger knowledge base.

4.1 MARKETING STRATEGY

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4.2 Mission

SHINE GLOBAL LOGISTICS mission is to provide customized logistics

solutions incorporating the ultimate customer service and latest technology from a

professionally rewarding environment.

4.3 Marketing Objectives

SHINE GLOBAL LOGISTICS needs to build awareness of its brand by

positioning itself as a customer centric logistics provider within the aftermarket food and

beverage industry. Clients should be sought in both the aftermarket and wholesale

segments. The personal selling and networking strategies have already previously been

proven within the electronic industry.

Other activities should include being seen in major trade press, participating in

industry events and gaining recognition. Some measurable and specific objective is to

attend at least one major event and place at least one advertisement in an industry

publication: Food and beverage industry, Food and beverage logistics or Food or

beverage news and to join at least one food and beverage association.

4.4 Financial Objectives

The main focus for the coming year is to gain exposure in the marketplace.

SHINE GLOBAL LOGISTICSs annual sales begin in March leaving little time to

pursue marketing objectives and therefore meet solid financial objectives. An extremely

aggressive goal for 2016 would be for SHINE GLOBAL LOGISTICS to seek to sell 180

containers at average price of RM1500 per container in order to break even with

RM270000 in revenues. The stretch goal for the end of 2017 is to fill 360 containers at

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on average price of RM1400 per container, generating RM504000 in revenues. At a 10%

margin, RM50400 in profits would be generated.

4.5 Marketing Mix

As a mid-market company with both a global reach and local touch, SHINE

GLOBAL LOGISTICS is able to pay individual attention to customers. The

manufacturing of food and beverage industry grown exceptionally over the past 5 years.

Singapore and Thailand imports of food and beverage product from Malaysia have

grown by over 30%, making in an ideal target market. SHINE GLOBAL LOGISTICS

current existing presence in Asia makes expanding into additional industries a nature

product extension.

Pricing is determined by shipping companies and is typically standardized. Rate is

rather price inelastic given there are not many cheaper substitutes or alternatives

available. Importers and third party logistics are therefore forced to pay what the market

bears. Theoretically, if the ocean freight transportation costs became too high, importers

might stop importing and Singapore and Thailand manufacturing would be increase.

However, in the current environment, that is highly unlikely due to overseas labor cost,

the main component of the overall landed cost of goods is so low. Pricing is based off the

ocean container base rate from either Singapore or Thailand which is usually the same

rate to the final destination in Asia.

Personal selling, advertisements in industry magazines and trade show

participation are the key to promotion SHINE GLOBAL LOGISTICS as a new third

party logistics entering the Food and beverage logistics industry. Press releases and

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editorial articles can also demonstrate SHINE GLOBAL LOGISTICSs customer centric

focus as well as expertise and experience in the logistics industry. By positioning

themselves as superior channel specialists, credibility and awareness can be established.

Shine Global Competitor A Competitor B Competitor C

Logistics
Price Medium Low High Medium

Product / Import & Export Peninsular M'sia Import & Export Peninsular M'sia
Service (Singapore Only) Only (Worldwide) Only
Promotion / GPS & Security - GPS & Security GPS
Security escort escort
for expensive for expensive
goods goods
Place Good Medium Good Good

5.0 FINANCIALS
SHINE GLOBAL LOGISTICS current plan does not anticipate closing sales in 2015 as

its main focus is penetrating into the food and beverage logistics industry. In order to gain

exposure, the allocated marketing expenses are RM50000. If sales were achieved during the

penetration period, RM270000 in sales would be required to break even against the marketing

budget. RM270000 in sales equates to selling 180 containers at RM1500 per container shipping

to Singapore and Thailand.

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ENTREPRENEURSHIP IN ORGANISATION MARKETING PLAN

The plan assumes two important trends. First, a steady increase in sales as SHINE

GLOBAL LOGISTICSs customer base grows. SHINE GLOBAL LOGISTICS will have to take

risk on additional risk in order service the needs of its new clients of food and beverage

wholesalers and retailers.

Second, as SHINE GLOBAL LOGISTICS gain transaction in this new market, marketing

expenses should decrease as word of mouth and referrals become the primary source of

marketing. Initial marketing expenses must be quite high comparatively given that we are

building a reputation and marketing without the leverage of past marketing, starting from zero.

5.1 Sales Forecast

Industry in RM
2016 2017 2018 2019 2020
Food and Beverage 270000 504000 60000 700000 800000
Industry 0
Chemical Industry 125000 125000 10000 100000 100000
0
Electronic Industry 75000 70000 50000 60000 80000
Furniture Industry 25000 25000 25000 50000 50000
Total Sales Forecast 495000 724000 77500 910000 1030000
0

5.1.1 Sales Forecast Chart

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900000
800000
700000
600000
2016
500000 2017
400000 2018
2019
300000
2020
200000
100000
0
Food & Beverage Chemical Electronics Furniture

5.1.2 Total Sales Forecast Chart

1200000

1000000

800000
2016
2017
600000
2018
2019
400000 2020

200000

0
Total Sales Forecast

5.2 Expense Forecast

Marketing Expenses in RM

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Budget 2016 2017 2018 2019 2020

Design Advertising 1500 1200 1000 800 500
Magazine Advertising 5000 4000 3000 2000 1000
promotional items 3000 2000 1500 1000 1000
Total Marketing Expenses 9500 7200 5500 3800 2500

5.2.1 Marketing Expenses Budget Chart

10000

9000

8000

7000

6000 2016
2017
5000
2018
4000 2019
3000 2020

2000

1000

0
Design Ad Magazine Ad Promo Item Total Expences

6.1 APPENDIX 1

Sub-contractors list:

1. Hiap Lee Transport Agency 5 units Container.

5 units Prime mover with curtain sider container.

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2. PRS Agency 3 units Prime mover with curtain sider container.

3. PSM Global Ventures 5 units Prime mover with open cargo trailer.

4. SHATHI Transport Agency 10 units container.

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