MARKETING PLAN INTRODUCTION Marketing can be defined as the activities that are carried out systematically to encourage and increase sales of products or services as long as the activities are in line with religious and ethical practices. Marketing is one of important factors that can help the company to increase the sales of its products. Consequently, this can transformed the company’s profit to increase significantly. Besides that, the customers need and want also can be fulfilling if the marketing project of a company works. For example, variation of the company product can make the customer satisfied and felt that their needs are fulfilled. The variation done by the company is good marketing strategy because every customer has different taste and by doing this strategy; this can increase the support from the customers to the company. Thus, the company sales can be improved. MARKETING OBJECTIVE • Sales Volume – Our goal for sales volume is to sell roughly 2000 smoothies each day. Prices will vary depending on number of ingredients used in each smoothie. Our smoothies will come in 12 oz. sizes bottle. • Market Share- We intend on taking a large share of the college-aged market very quickly by providing a form of convenience that isn’t available from the traditional smoothie shop. Smoothielicious predicts taking a 20% market share within 3 years of starting the business. • Return on Investment- By meeting our sales volume goals, we will be able to provide a high return on initial investment. • Other Objectives- We intend on taking the market very quickly through an aggressive marketing campaign which will make all other smoothie business in Selangor area obsolete. SWOT ANALYSIS Strenghts Opportunities The Smoothie market is a widely known and successful industry Smoothielicious will provide quality products than the leading competitor including using fresh fruits, free from Future developments in the smoothie recipes and further business expansion. Provide allergy free products such as peanut free drinks and chocolates any artificial preservatives, and artificial flavours as well as absence of high fructose corn syrup and trans-fat. Successful due to the unquestionable ability to provide top of the range products including healthy options. Professional products that will be sold to supermarket and gyms Weakness Threats Our rival may have better stake in the market and more experience along with knowledge The competitor may formulate new tactics for the new entrant Any contamination to the food supply and shortages Possible increase in supplier costs# PRODUCT DESCRIPTION Smoothielicious Enterprise will offers its customers with a variety of bottled smoothies that are free of additives and artificial preservatives. These include: i. Tropical Squeeze Smoothie – Mixture of strawberries, banana, pineapple, mango, papaya, oranges, protein and honey. ii. Pina Colada – Mixture of pineapple, coconut, banana, and honey. iii. Mango Smoothie – Mixture of mango, coconut, banana, protein and honey. Smoothielicious use real fruits as the main ingredient in our smoothies, along with our own line of supplements in order to provide more vitamins and boost protein, which will help customers attain their personal goals. We can assure our customer that our smoothies are free from any artificial preservatives, and artificial flavours as well as absence of high fructose corn syrup and trans-fat. PRODUCT ILLUSTRATION TARGET MARKET Our target market is specifically comprised of Malaysia young to middle-aged person, who have health consciousness and are trying to pursue health lifestyle. The determination of this target market is based on the following two (2) market segmentation, namely, demographic and psychographic segmentation. Demographic Segmentation Demographic segmentation is a market segmentation, that is based on observable and quantifiable information, which includes age, race/ ethnic, religion, geographical area, gender, income level, occupational status, education level and marital status (Weinstein, 2013). At Smoothielicious, we focus on market which is demographically segmented based on age and geographical area. a) Age At Smoothielicious, we focus the marketing of our product on young to middleaged person, who are numerically aged between 18-64 years old. The selection of this age group is because they are more educated and aware of the current struggle to be healthy. Those with a high school, and college education will be crucial in our success. The relatively low prices (relatively low, because a good product will cost a bit more money) of our smoothies should be financially capable for our target demographic b) Geographical Area For the sake of the marketing, the geographic market we will be targeting are Selangor and Kuala Lumpur (for retailers). These two states are well-known as the economic centre in our country. With this remarkable status, both Selangor and Kuala Lumpur enjoy rapid development, such as buildings of more shopping lots, gym and fitness centre, and university which make it easier to reach the young people. Apart from that, this rapid development is also characterized with the creation of a comprehensive public transportation, which comprised of LRT, MRT and taxi service. Consequently, this has attracted more young people, which then contribute to the rise of density in Kuala Lumpur and Selangor, compared to other areas in Malaysia. The availability of more commercial areas, along with density population in two states are the primary reason behind the selection of this market segmentation. But for whole seller (supermarket – Tesco, Giant, and Mydin), our target market is for whole Malaysian. There are 65 Tesco, 54 Giant stores and 25 Mydin hypermarket whole Malaysia. The supermarket is a shop usually 50,000 square feet (Loulou Brown, 2001). Large supermarkets offer more choice of food items or non-food to consumers. The product being sold is a combination of items products sold in supermarkets and warehouses (Aini Hayati Mohamed et al., 2007). Supermarket Large is a free-standing building, ie it is located separately from everywhere other buildings and usually located in the suburbs and in the middle. Be found onsite warehousing facilities and extensive parking (Loulou Brown, 2001). Because of these advantages, our products can be marketed more widely and guarantee future profits. Psychographic Segmentation Psychographic segmentation, as the term implies, refers to the grouping of people based on their activities, interests and opinions (Weinstein, 2013). Since our smoothie is health-oriented product, which is free from colouring, preserving and sugar, it is essential that we concentrate our product on people who have health consciousness and are pursue healthy lifestyle. If this consumer is not segmented accordingly based on interest and lifestyle, there is a higher tendency for mismatch between product and consumer. POTENTIAL MARKET ANALYSIS Malaysia has established a National Health Vision through the Ministry of Health to develop a nation of healthy individuals, families and societies through a fair, affordable, and technologically sound system of health. This health system will emphasize on promoting health and respecting human dignity and promoting individual responsibility and community involvement towards a better quality of life. The government’s goal is to increase peoples’ knowledge of the benefits of healthy consumption as well as to buy more fruit and vegetables. Additionally, legislations that occasionally come from various governmental health and food departments can also affect the market. A good example is that of the Food Standards Agency which has altered a new labelling legislation where people can be aware of the level of transfats used in the product they consume (BBC, 2007). Nowadays in Malaysia, the high amount of unemployment and the low level of the populations’ income are significant factors for market conditions. In such economic events, people are more conscious of what they pay as they spend money only on necessities. Lifestyle, value, trends and ethics are some of the elements that characterise the Social window of the external’s environment. For instance, Mintel (2010) states that ice cream consumption is not a seasonable product anymore as it is consumed throughout the year. In addition, a large number of people are aware of and care about healthy consumption. The Technological concept has recently taken another dimension as social networks and brand communities have given consumers the ability to give-and-take opinions for products and services (Mitchell, 2001). Smoothies, either fruit or vegetable, are among the fastest-growing segments in the beverages market, currently (Mordor Intelligence, 2017). Over the few years. the Juice and Smoothie Bars industry has shown a healthy level of growth in the developed, as well as, in emerging markets. As the 38th largest economy in the world, Malaysia which have population of more than 30 million, has shown higher a demand on beverages, particularly, fruit juice and smoothie. According to Statisca (n.d.), the revenue generated by juice market in Malaysia amounts up to USD 137 million in 2018, and this market is expected to grow annually by 2.9 percent in term of CAGR (Compound Annual Growth Rate), from 2018 to 2021. Within this juice market, the largest segment is currently dominated by smoothies with a market volume of USD 59 million in 2018. COMPETITIVE PROFILE ANALYSIS Nuvend Sendirian QD Herbs Sendirian Coffeeland Berhad Berhad Sendirian Berhad Product Uniqueness High Low Low Relative Product Quality High Moderate Moderate Price High Moderate Moderate Service Low Low Moderate Availability/ Convenience High Low Low Reputation / Image High Moderate Low Location Moderate Low Moderate Advertising and Promotional High Moderate Low Product Design Moderate Low Moderate Calibre of Personnel High Moderate High Raw material cost Moderate High Moderate Financial Condition Moderate Low Moderate Production Capability Moderate Low Low R&D Position Low Low Low Variety/ Selection High Low Moderate Effectiveness MARKET SIZE Market size is the total potential purchase that is expected from the target market. We had identified our target in Selangor and Kuala Lumpur Gymnasium for retailer and for the whole seller, we will put our product in large supermarket like Tesco, Giant and Mydin. So we target 25 percent of people from each of the places will purchase for our product. Increasing consumer awareness in nutrition value and food fortification for healthcare has created the demand for functional food, healthy minimally processed fresh food, organic food and natural food flavours from plants and seafood. Food ingredients such as customised formulations required by food manufacturers, natural food additives and flavours have the potential for further growth. Smoothielicious will penetrate the smoothies beverage industry by creating and deploying new smoothies products.The business will locate in a logical and more accessible area. Shopping Centres & Gyms are the busiest places that a lot of consumers go to for recreation. Since that smoothielicious is promoting healthy beverages it is a right step in locating in a gym. We want to let the customer experience a fast and friendly service without the inconvenience of waiting too long for their purchase. The business is for a customer that wants a quick drink on the go and who wants to get in and out fast. Statistics Department data shows that Malaysia's population is estimated at 32.4 million people in 2018 with an annual population growth rate of 1.1 percent. Percentage population aged 15 to 64 (working age) increased from 69.6 per cent in 2017 to 69.7 per cent in 2018. There are 22, 304, 000 people among this target group. We estimate that gym and fitness center customers in selangor and kuala mud are as many as 2000 people a month. And the number of visitors visiting the supermarket center is a total of 90 000 people a month. Target Market Number of People Sales per month (RM) 500 2 500 Supermarket 22 500 112 500 TOTAL 23 000 115 000 Gymnasium and fitness centre MARKET SHARE Market share is the division of market or sales between companies that are running the same type of business activities. It will be considered number of competitors, experience, strength and weaknesses. The following table explains about the market share division before and after our company enters the market. Due to well established companies already in this market, we expect to initially have a small market share. However, once we have an advertising campaign in place we expect this to rise to approx. 5% within one year. 1st Year 5% 25% Smoothielicious 40% Nuvend Sdn. Bhd. QD Herbs Sdn. Bhd. Coffeeland Sdn. Bhd. 30% 2nd Year 23% 15% Smoothielicious Nuvend Sdn. Bhd. QD Herbs Sdn. Bhd. 27% 35% Coffeeland Sdn. Bhd. 3rd Year 20% 25% Smoothielicious Nuvend Sdn. Bhd. QD Herbs Sdn. Bhd. 25% 30% Coffeeland Sdn. Bhd. SALES FORECAST MONTH January February March April May June July August September October November Disember TOTAL SALE FORECAST (RM) 115 000 117 300 119 800 122 300 124 800 127 300 129 800 132 300 134 800 137 300 139 800 142 300 1 542 800 Total Sales for Year 2019 : RM 1 542 800 Total Sales for Year 2020 (Increase 5%) : RM 1 619 940 Total Sales for Year 2021 (Increase 15%) : RM 1 862 931 MARKETING STRATEGY Smoothielicious has identified that the market is busy and the potential target customers will range from college goers to business people who will be passing by the supermarket or go to gymnasium and fitness centre at regular intervals and that is why location is a number one success pattern. In addition, smoothielicious is providing a quality product and delicious items, to ensure customer awareness and loyalty, as well as positive public and media support, Smoothielicious can continue to offer more promotions if it deems to be a successful smoothie bar. Other than that, Smoothielicious can use a combination of push and pull strategies as Pickton and Broderick (2005) suggest that a combination of those can reduce any potential dangers. Considering pull strategy, the company can focus its promotion activities to increase demand for the product at the end consumer while push strategy seeks to boost the trade channel to drive and promote the product until the end user (Fill, 2009). In order to create awareness and desire to purchase the product in the target market, the audience should be approached with a persuasive marketing communication message that emphasizes on the importance of the pure ingredients laden with health benefits. In addition, the target market should also be informed about the product and its ingredients and how the product can be a ‘no-added sugar and sweeteners, concentrates and preservative. The marketing communication messages should embrace ‘100 percent fruit’ quality of the product. The marketing communication plan should be developed while making considerations of relationship marketing as suggested by Peelen (2005). These are: obtaining knowledge of the customers; establish strong relationship with the customers, and lastly persuasive communication along with value proposition of the customers. The marketing communication plan should also embrace a combination of exciting and validating plead, persuasive enough for the target audience. An exciting or emotional plead can be formed through connecting the product with peoples’ hearts such as ‘care for the family by giving them 100 per cent healthy product made only with fruits’. This can even extend to family members who are diabetic. The Smoothie market is currently occupied, in Malaysia, by a few company, like Nuvend Sendirian Berhad, QD Herbs Sendirian Berhad, Coffeeland Sendirian Berhad, and Four Winds Trade Services. All this companies are at present the only realistic competition to the introduction of a new franchise of smoothie bavarages. The creation of smoothies vending machine would most certainly result in direct retaliation from this major competitor and plans must be put in place to differentiate the products that smoothies intend to sell from those of Nuvend. Similarly, other areas of competition, such as coffee houses like Coffeeland must be planned for. An emphasis on the healthier aspects of a smoothie over things like coffee must be stressed in an early advertisement campaign. As there only a few competitor in this area there is obvious room for growth in the market. An informative and cost effective advertisement campaign would be essential and would have to be run early in the life of the company, perhaps even before the first Smoothie bar opened. This obviously will result in a high start up cost; however the lack of any effective advert campaigns currently from this companies would result in excellent market coverage for said ad campaign. ADVERTISING AND PROMOTION As already stated, it would be essential to run an informative advertisement campaign early in the company’s development. This would be necessary in order to corner the market early on in the business’ development. It would be a recommendation to run this advert campaign before the first store opened its doors in order to generate some anticipation and create a slogan about the new franchise or product. It would also be wise to run discounts and offers for the first few weeks of existence, in order to draw in more potential customers. Deals would have to be good enough to pull current smoothies product customers away from their usual purchases. An advert campaign would get people buying smoothies instead of other commodities such as coffee should also be run, targeting young professionals. It should be noted that, in the morning, a full smoothie has just as much energy providing substances as coffee, and is substantially healthier. This campaign should be run later in the company’s development, as the already high start-up costs do not need to be added to from the get go. It should also be made clear that our smoothies and juices are significantly cheaper than the competition (and we will have to make this the case, at least in the first one to two years of the company’s life) in order to draw potential clients out from other competitor and bring them in to us. High quality produce would be required, with an emphasis on fair trade fruits in order to increase popularity with the public. Perhaps a companywide statement saying smoothielicious will only buy fair trade produce would be in order. This would also be an excellent selling point for the new business and would hopefully draw in new customers. PROMOTION STRATEGIES Promotion strategies are important in order to inform our product to the customer. This is to make sure all the customers know about Smoothielicious. To inform them that we make a product that has a high quality and the pricing that offered are affordable. As a new company, advertisement is an important rule. To make sure that our product to be well known in market, we have to plan a few systematic strategies that are: 1) Personal sales A salesman will promote our product face to face with the retailer. 2) Pamphlet We distribute our pamphlets within the area of our target market. Pamphlets are financially viable and sustainable, convenient to carry around and to sell at readings and capable of being printed to order, saving on storage costs 3) Business Card We had a business card to enable customers to deal with us easily. This card completed with company’s name, logo, address, contact number and email address. Managers who want to disseminate to the customers and friends can use this personal promotions. 4) Sales Promotion We Provide short term incentives or special offer to encourage purchase or speed up the purchase decision Examples: Discounts and allowances (Retailer) BUSINESS CARD, PHAMPLET, SIGNBOARD ROHAYU AWALUDDIN Manager Kawasan Perindustrian, Jalan Pantai, Klang Selangor. 0186578942 SALES STRATEGY A fundamental approach of marketing communications which generates extra value to the product so as to improve sales and other marketing purposes (Brassington and Pettitt, 2006). This type of strategy has been very successful with food and beverage industries and we have no doubt that this type of strategy will give smoothielicious the start-up success it needs. Free samples through the point of sales and information leaflets will be given by Smoothielicious in such a way so as to encourage consumers. Marketing Expenditure Signboard 1,000.00 Pamphlet 2,000.00 Business card Total Marketing Expenditure 500.00 3.500.00 PRICE Our smoothies will be sell RM5 per 12 oz bottle. Smoothielicious pricing scheme is quite better and attractive than other companies pricing scheme. For example, Nuvend Sdn. Bhd products are much more expensive (RM10 per cup) than smoothielicious which would help the consumer on choosing a product for less. It would be a decision of supply and demand. PERSONAL SELLING Brassington and Pettitt (2006), define personal selling as the method of face to face communication made by a company in order to encourage and influence potential customers by providing something of importance. TRADE SHOWS To provide a further boost to the product promotion, trade shows will be arranged specifically targeted to B2B customers. The objective of trade shows will be a) to educate stakeholders about the product and its associated health benefits so that their confidence and trust LABELLING Identifying, grading describing or even promotion of the product. Information about our manufacturer, the content of the product, and usage instruction.