Chapter 3 : Marketing Plan

CHAPTER 3: MARKETING PLAN

3.1 INTRODUCTION TO MARKETING

3.1.1 Marketing Objectives

i. To ensure that customers are attracted to purchase our two styles outfit in order to be
a leader and well-known outfit producer in Asia.
ii. To sustain and increase sales by encouraging repeat purchases. We will always
update our social media and do follow up to our customers, so that they will be aware
of our new designs and products.

3.2 INTRODUCTION TO PRODUCT OR SERVICE

To describe clearly the product or service that is offered to the customer. It should be noted that a
good product or service must have the ability to fulfill the needs and wants of the target customer.

i. The proposed product/service To styles outfit

ii. Brand Side to Side

iii. Selling Price RM 40 - 200

a. It has two styles.

b. Multi-functional clothing
iv. Product/Service features
c. A reversible clothing, which can be worn inside
out.
v. Product/Service Benefits a. Save money since one outfit can be wear in two-
styles.
b. Travelling light, packing will be a lot more easier
since there will be less clothes to be pack.
c. Less laundry, having an item of clothing that offers

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 Chapter 3 : Marketing Plan
many different looks means you will have less item
to wash.
a. Can be wear in two-styles.
b. Eco-friendly, to make a cotton t-shirt, it require
2700L of water. So, by buying our double-styles
outfit. We can help save the planet.
vi. Product/Service Uniqueness
c. The best in functionality and value for your money.
It means, with the value of money that you usually
spend for two outfits, now you can get one outfit,
with two functions, styles and colors.

3.2.1 Market area and business location

Our outlet is located in Jalan Plumbum Y 7/Y, Seksyen 7, 40000 Shah Alam, Selangor.

3.2.2 Collect information and data of customers

The business has to compile as much information and data as possible of the customers in the market
area selected. Information can be based on personal details and attributes of the population in that
area, their lifestyle and any psychological factors that may influence buying habits.

3.2.3 Segmenting the market

DEMOGRAPHY

I. Average income in Shah Alam is RM5879.00

II. Ethnic groups in Shah Alam.

Ethnicity Population Percentage

Bumiputera 354618 65.5%

Chinese 83079 15.3%

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 Chapter 3 : Marketing Plan
Indian 55867 10.3%

Others 4990 0.9%

Non-Malaysian 42752 7.9%

III. Average age in Shah Alam.

Age group Stratum Population

0 12 Children 227263

13 18 Teenagers 72110

19 45 Adult 453401

46 74 Senior Citizen 108426

TOTAL 861200

IV. Average age by gender.

GENDER POPULATION

MALE 457026

FEMALE 404174

TOTAL 861200

3.3 TARGET MARKET

Select target market from several market segments identified. The target market selected based on
the higher sales potential and profits this group is expected to produce compared with the other
market segments.

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 Chapter 3 : Marketing Plan
Target market can be defined as the group of customers that has similar needs and wants and that
can be satisfied by the business through the supply of products and services.

1. Based on survey: provide survey form

2. Based on observation

3.4 MARKET SIZE

Market size is the total potential purchase that is expected from the target market

The potential purchase includes purchases of the competitors product within the same market.

The market size is quoted in unit of sales (quantity) or sales (which would be in RM) or both for a specific
period which is daily.

Table 6: Market size

5

Market Segment Population Target Market Target Market

(%)

Teenagers 72110 40 28844

Adult 453401 40 181360

Senior Citizen 108426 20 21685

Market Segment Target Market Potential Total Potential Purchase

Purchase (monthly)

RM RM

Teenagers 28844 40/day (RM40 x 30 days) x 28844 =

34,612,800

Adult 181360 45/day (RM 45x 30) x 181360 =

244,836,000

Senior Citizen 21685 20/day (RM20 x 30 days) x 21685 =

13,011,000

TOTAL 292,459,800

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 Chapter 3 : Marketing Plan

Market size per year = RM 3,509,517,600 (292,459,800 x 12)

3.5 COMPETITORS

3.5.1 Analysis of Competitor

Table 7: Competitor Strengths and Weaknesses

Competitor Strengths Weaknesses

9 Years of experience. Does not have variety of

Nanano Vendor Open up 5 branches outfits. This vendor is more to
within 3 years. selling dresses.

2 years of experience.
Restricted operation hours in
Started with their own weekdays (10a.m. 5p.m.)
brand, Farabelle
Vendoroute

2 years of experience
Have variety of models There is no outfit with price below
outfits, including RM100.
wedding dress.
Butik Emas Pesona

Analysis the strengths and weaknesses of the competitors in terms of size, experience, number of years
in business, financial capability and product lines.

Maximum number of competitors is only three.

3.5.2 Analysis of Side to Side Opportunities and Threats

Table 8: Business Opportunities and Threats

OPPORTUNITIES THREATS

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 Chapter 3 : Marketing Plan
Acceptance of the internet as a marketing and Growing cost of employee benefits, which
customer service medium (Instagram and contributes to increased product prices.
Facebook).

Produce variety of clothing (mens and womens New designs is not produced too often.
outwear).

3.6 MARKET SHARE

Market share refers to the portion of how much of the market that the business can capture or control after
taking into consideration the market size and the competitors position in the same market.

3.6.1 Market Share before entry of Side to Side

Table 9: Market Share before entrance

Competitors Market Share Market Share/ yearly

(%) (RM)

Nanano Vendor 50 146,229,900

Vendoroute 30 87,737,940

Boutique Emas
Pesona 20 58,491 960

Total 100 292,459,800

3.6.2 Market Share after entry of Side to side.

Table 9: Market Share after entrance

Competitors Market Loss of Market Market Share/ yearly

Share Market Share (RM)
Share

(%) (%) (%)

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Nanano Vendor 50 5 45 131,606,910

Vendoroute 30 2 28 81,888,744

Boutique Emas
Pesona 20 2 18 52,642,764

Side to Side - - 9 26,321,382

Total 100 9 100 292,459,800

3.7 SALES FORECAST

Sales forecast is computed monthly for the first year and annually for the second and third year.

Table 10: Sales Forecast for three consecutive years

SALES PROJECTION/FORECAST
Year Month Sales Collection Reason
Month 1 779,108.00 First sale

Month 2 1,085,382.00 Gain attention from

customers

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 Chapter 3 : Marketing Plan
Month 3 1,542,456.55 Increase promotion
Month 4 1,873,853.05 There is no new design
Month 5 2,165,763.15 Create new design
Month 6 2,670,500.00 Increase promotion

Month 7 2,873,568.30 Gain attention from

customer

Month 8 2,030,568.00 Defeated by other

companies promotion

Month 9 2,363,487.00 Produced new design

and promotion

Month 10 2,506,782.25 Gain attention from

customers

Month 11 2,546,247.45 Maintain sales by keep

on promoting
Month 12 3,883,666.25 Year End Sale
2017 Total Year 1 26,321,382.00 -
2018 Total Year 2 Increase by 2%
2019 Total Year 3 Increase by 3%

CASH COLLECTIONS FOR SALES

In the month of sale 90%

1 month after sale 10%

2 months after sale -

TOTAL 100%

3.8 MARKETING STRATEGY

3.8.1 Product or service strategy

Brand : Side to Side

Quality :

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Design :Two-style outfit.

Packaging : The items bought by the customer will be put into a fancy paper bag.

Product differentiation : our outfit is different from because it is a multifunctional

and reversible clothing.

Labeling : allow customers to tell it apart from the competition and give important message
including instructions and uses.

After sales service : we do follow up to our online and direct customers to get positive or
even negative feedback so that we can improve our service or product. It is also to
promote our new product to the customers.

Delivery services : we do postages for our online customers, to reduce the expenses, we
will charge the customer for their postage according to their number of item.

3.8.2 Price strategy

1. Competition based pricing :

-we put our price based on the competitor prices

BUSINESS SELLING PRICE(RM)

Side to Side 40-200

Nanano Vendor 50-300

Vendoroute 50-250

Boutique Emas Pesona 80-2500

3.8.3 Distribution strategy

1. Direct to customer :
- We sell our products direct to the customers through social media and outlet.

3.8.4 Promotion strategy

1. Advertising :
- Advertise and promote through social media hang banner, and flyers.

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2. Sales promotion :
- We do sales once in a while, especially during festive season, year end sales and new
year sales.

3. Publicity
- Hire a well-known public figure to be the ambassador of our brand. This will attract
more people to buy our products.

3.9 MARKETING BUDGET

MARKETING BUDGET
Fixed
Assets Monthly Other Total
Expenses Expenses Expenses
Particulars (RM) (RM) (RM) (RM)
Fixed Assets
Signboard 2000.00 2000.00

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Motor Vehicle (type of motor vehicle) 40000.00 40000.00
Office Furniture and fittings (refer
4889.00 4889.00
Office Equipment 1626.00 1626.00

Working Capital
Remuneration (refer table) 12044.45 12044.45
Travelling expenses 50.00 50.00
Office supplies 314.10 314.10
Other Expenditure

Pre-Operations
Deposit (rent, utilities, etc.) 2000.00 2000.00
Business Registration & Licenses 200.00 200.00
Insurance & Road Tax for Motor
Vehicle 370.00 370.00
Other Pre-Operations Expenditure 500.00 500.00
Total 48515.00 12408.55 3070.00 63993.55

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