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.
• 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.
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
Our rival may have better stake in the
market and more experience along with
The competitor may formulate new
tactics for the new entrant
Any contamination to the food supply
and shortages
Possible increase in supplier costs#
Smoothielicious Enterprise will offers its customers with a variety of bottled smoothies that
are free of additives and artificial preservatives. These include:
Tropical Squeeze Smoothie – Mixture of strawberries, banana, pineapple, mango,
papaya, oranges, protein and honey.
Pina Colada – Mixture of pineapple, coconut, banana, and honey.
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.
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
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.
Nuvend Sendirian
QD Herbs Sendirian
Sendirian Berhad
Product Uniqueness
Relative Product Quality
Availability/ Convenience
Reputation / Image
Advertising and Promotional
Product Design
Calibre of Personnel
Raw material cost
Financial Condition
Production Capability
R&D Position
Variety/ Selection
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
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)
2 500
22 500
112 500
23 000
115 000
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
Nuvend Sdn. Bhd.
QD Herbs Sdn. Bhd.
Coffeeland Sdn. Bhd.
2nd Year
Nuvend Sdn. Bhd.
QD Herbs Sdn. Bhd.
Coffeeland Sdn. Bhd.
3rd Year
Nuvend Sdn. Bhd.
QD Herbs Sdn. Bhd.
Coffeeland Sdn. Bhd.
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
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
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.
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 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)
Kawasan Perindustrian,
Jalan Pantai,
Klang Selangor.
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
Business card
Total Marketing Expenditure
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.
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.
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
Identifying, grading describing or even promotion of the product.
Information about our manufacturer, the content of the product, and usage instruction.
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