3.1 Introduction Marketing is one of the most important elements in the business area. A marketing plan is the strategy that an organization or any companies apply to retail their services or product to the community. The goals of marketing are to achieve the target market of the organization and to make the companies to achieve a competitive advantage in the similar industry. Marketing can be defined as the activities that has been carried out systematically. The overall marketing activities that need to be planned and implemented in a systematic manner to avoid any errors and to achieve the organizational goals. If there is zero effort in the business area, all the main resources will be wasted such as manpower, time, money and energy. Furthermore, it will also be affecting the performance of our business that will lead to bankruptcy. Marketing is also an exchange activity between the business entity and the customers in a particular place. The customers can include the individual, while the business entities are the wholesalers and the retailers of some organizations. It encourages the customers to buy the products or services by attracting the customers with various strategies. Marketing manager carry the goals of the task to make sure he or she develop a long-term and also short-term marketing strategy of their top manager. The task of the marketing manager requires them to have an interaction with other related industry that retail the same product or deliver a similar service which includes research and development, manufacturing, and sales of that particular companies. In order to raise the sales of the product and services of the companies, a marketing effort are compulsory to carry out in order to attract customer to purchase the products or services of the companies. It is also important to make sure the companies can satisfy the customers and to enables the companies gain more revenue and always be the first choice of online shop by the customers. As a conclusion, the marketing manager must understand the information of marketing, so that it could lead to a better performance in the business. 3.2 Objectives The marketing objectives are important to enable the companies achieve the mission and the vision of the companies. Every companies should have their marketing objectives, so that they could use it as a guideline for them to make sure the business is running smoothly and gain profit. The objectives of our marketing are; To increase the profit of our company. To maintain the sales of our product. To enhance the attraction of customers to purchase the product from our application. Able to become a well-known online grocery shopping company that operates in the whole of Sarawak. 3.3 Product or Service Description SB Online Grocery Store will provide the customers an application that can be install from the AppStore or PlayStore, to make the customers easy to purchase their products or the customers can directly purchase the products through our official website while our operating office will be located at Metrocity. The application that goes with the same name of our company, SB Online Grocery Store provide retail products such as; Groceries Toiletries SB Online Grocery Store will also provide the customers delivery service. Once payment is made by using either online banking, debit card or credit card payment or Cash on Delivery (COD) method, customers just need to wait for the groceries to be delivered to their address for 30 minutes or more depending on the traffic of the area. 3.4 Target Market Target market is the particular group of people whom the business is trying to sell their product or services. Understanding the market will assist to determine potential customer base. Our target market for this business is for local residents that hardly make time for grocery shopping. In the area of Metrocity, our operating office which is located at SB Online Grocery Store Office, Lot 14212, Plot 79, Section 65, Metrocity New Township, Jalan Matang so it will be easier for us to deliver the product that been purchased by the customer. Some customer is unable to make time for grocery shopping due to multiple of works that they have to do. The residents in Metrocity area are mostly from the average income group and with the retail product that are affordable, we can attract the residents to purchase groceries from the application. Furthermore, the grocery shops or any market are far from the area and this enable them to use our application to purchase online. After the payment is made, we will deliver the product according to the addresses given by the customers. This shows that this area needs our services. 3.4.1 Market segmentation Segmentation Geographic Variables/description Metrocity (Matang Jaya, Kuching) Age:17 years and above. Gender: All genders Family, Young Adult Income: average income (workers) Demographic (RM1,500-RM4,000) Psycho-graphic Occupations Customers that need to buy groceries without going to the groceries shop They could purchase the product through Behavioral the application and website anytime when they need it. 3.5 Market Size Market size is the overall potential purchase that is expected from the target market. The potential purchase includes purchases of the competitors service within the same market. The market size is quoted in monetary unit, Ringgit Malaysia (RM) for specific period. For instance, daily, weekly, monthly, or yearly. Market size are important for every companies to help in determine the analysis of the sales forecast. Our company’s main objective is to provide services through an application from the smart-phones and website to the potential customer. In order to provide our services to the customers, we must make an assumption of our potential customers and for the sales forecast. The market size of our business is based on the group of customers that wants to purchase our product. Target market: Local Residents of Metrocity Area: Matang Jaya, Kuching Housing estate Estimated resident’s target Residency PR1MA Matang 30 4000 100 Taman Matang Jaya 30 4000 100 Taman Yen Yen 30 4000 100 Taman Lee Ling 30 4000 100 Taman Sri Perkasa 30 4000 100 Taman Sri Matang 30 4000 100 TOTAL 7,200÷4 = 1,800 Based on Population and Housing Census conducted by Department of Statistics Malaysia in 2010, it is roughly stated that as much as 87,923 people residents in Metrocity. 1.Population in Metrocity (2019) is There are residential areas based on the table above, assuming that each residential area have 4,000 residents; 4,000 × 20 = 80,000 people Assuming that 30% of the each residential areas needs our services =30% ×4,000 =1,200 people × 20 =24,000 people Assume there are 4 members in a family in the 20 residential areas: =24,000÷ 4 =6,000 people Overall potential purchase that is expected from the target market = Assume that one person spent RM40 on our services per month = RM 40 × = RM Market size per year: = RM × 12 months = RM 3.6 Competitors - Strengths and Weaknesses According to the research that we have conducted, our main competitors have some field, which contribute their strength and their weaknesses. These strength and weaknesses are different from others because of various term of marketing plan. In our business, there are three main competitors which are Shopee, LAZADA, and 11thStreet. Three of our main competitors have their strength and weaknesses. 1. Shopee online shop STRENGTH WEAKNESSES 1.Less Competitors 1. The app is likely to crash. Shopee online store have less The application often to crash due to competitors because it is the first choice of online shop by the community. 2. Trusted online shop Shopee online store are mostly guaranteed quality products and with this quality product, it enable this company gained trust from the customers. advertisement that appeared suddenly. 2. LAZADA STRENGTH WEAKNESSES 1. Numerous choice of product. 1. Time-consuming in terms of LAZADA consist of retail products delivering. such as electronic devices, home The delivery service are quite slow appliances, groceries, health and causing the customer dissatisfied beauty products and etc. with the services. 2. Affordable price. LAZADA provide a reasonable and affordable price of their product. It attract many customers due to the price of the products. 3. 11th Street STRENGTH 1. Fast delivery WEAKNESSES 1. Less trusted online shop. The delivery service are quick and it Even though it is the fast delivery increased the satisfaction of the service, it is one of the less trusted company. online shop due to the quality of the products that are different from the product description. 2. Expensive delivery charges. Instead lacked of quality of the product, the delivery cost for the product are expensive as compared to other online shop. 4. SB Online Grocery Store STRENGTH WEAKNESSES 1. One and only company that offer 1. Fresh items delivered might get grocery delivery service. spoil. Most of other companies unable to Fresh items that will be deliver to the provide delivery service for groceries customers might be spoil before product because they would not take reaching the destinations and this any responsible with spoil fresh will cause loss of revenue and items. wastage of products. 3.7 Market Share This schedule is referred before our company enters the market share in Metrocity. *Before entering the market share in Metrocity. No. Company Name Market Share Annual Share 1 Shopee 45% RM 2,629,152 2 LAZADA 35% RM 2,044,896 3 11thStreet 20% RM 1,168,512 TOTAL 100% RM 5,842,560 This schedule is referred after our company enters the market share in Metrojaya. *After entering the market share in Metrojaya. No. Company Name Market Share Annual Share 1 Shopee 48% RM 2,804,428.80 2 LAZADA 27% RM 1,577,491.10 3 11th Street 15% RM 876,384.00 10% RM 584,256.00 100% RM 5,842,560 4 SB Online Grocery Store TOTAL Pie Chart after EZGROCERY enters market share 3.8 Sales Forecast Sales Forecast Year RM January 2018 45,000 February 2018 45,000 March 2018 45,000 April 2018 45,000 May 2018 45,000 June 2018 45,000 July 2018 45,000 August 2018 45,000 September 2018 45,000 October 2018 45,000 November 2018 45,000 December 2018 45,000 Total 2018 540,000 Total 2019 + 10% 594,000 Total 2020 + 15% 683,100 Sales collection In the month of sales 10% One month after sales 90% 3.9 Marketing Strategy Marketing strategy is a process that can allow an organization to focus its limited resources on the greatest opportunities to gain the sales and achieve a sustainable competitive advantage. The marketing strategy is very important, and it is compulsory in the business to ensure our marketing strategy will bring revenue to our business. Another factor is for the purpose of avoiding a wastage that may decrease our business revenue. In order to achieve our accepted sales forecast, we must develop the appropriate marketing strategies generate our sales from the market. Elements 1.Product or service strategy We provide fast delivery service to the customers. We provide tagging and labelling for the products. Enable the customer to purchase groceries online We provide good quality products from good and trustworthy supplier. 2.Pricing Strategy Price is very important in the business area. As we all know, all the community want the price of a particular product that is affordable. The manager of the company should make the price reasonable with the quality of a product and services provided. SB Online Grocery Store provide an affordable and reasonable price for the services and the product. For instance, online services that is the customers can purchase the grocery through the application that is free installation on the smart-phones. Besides that, our business also provide delivery service with reasonable price and the price is based on the distance of the customers. The customer can make a payment through online banking, debit card or cash. We also have vouchers for the customers that giving constant support to our services. 3.Place and distribution strategy Place and distribution strategy should be deciding carefully so that the place that the company decided are strategic and easy to attract the customer. SB Online Grocery Store’s main office were located at. It is strategic place for us to run our business because it is located near the residential area enable us to deliver efficiently. The purpose of distribution strategy is to establish an organized and controllable distribution system to ensure the product offered reaches the target customer. We use the delivery service as our distribution strategy to attract more customers. 4.Promotion Strategy Every companies have different promotion strategy to attract the customers to purchase their product and using their services. SB Online Grocery Store provide a few promotion strategies to increase our revenue and enhance the target market. Promotion strategy is used to spread information about our company’s product and services to attract the target market and this will enable our company to gain more revenue. Our method of promoting is advertising our company through social media, and also printed media. We also have our official website, and this enable us to promote our product through online advertisement. Furthermore, we also give discount for delivery during festive season such as, Hari Raya, Chinese New Year, or others festive season. The table below shows our promotion strategies. Promotion Tools Signboard Description Located in front of our office. It is clear and easy for the customer to identify our main office from far. It is located near the main roads and roundabout in Metrocity where the people often pass by. Banner The banner also will hang in front of the office to attract the customers. The business cards are to tell the customers the location of our office, Business Card the main application of our company, fax number and our company’s email. Online advertisement is the easiest method of promoting our product and it can attract more people in a short time. Online Advertisement We promote our product and services through social media (eg: Facebook, Instagram, Twitter, YouTube etc) Brochures distribution is the best method to advertise our company Brochures during the opening ceremony of our company and during the promotions. 5. Service Strategy Service strategy is very important to increase the customer satisfaction and to gain trust from the customer so that it could maintain a good reputation of our business. We provide online service that is through an application that goes with the same name of our company, SB Online Grocery Store. It enables the customer to purchase groceries and toiletries online. The community can install our application that can be found on our official website for free. We also provide quick and safe delivery service to the customers. Once the payment has been made by the customer, we will deliver the products according to the address given by the customer. 3.10 Marketing Budget The market budget summarizes all marketing expenses planned and useful for the financial planning. ITEMS Fixed Assets Expenses (RM) Signboard 1,500 Monthly Expenses Other Expenses (RM) (RM) Promotion 200 banner 400 Stickers 200 Business card 100 Brochures 200 Online Advertisement 120 Salary 2,000 EPF 260 SOCSO 35.85 Total 2100 2615.85 300