Marketing Plan

Gardenia is a strong brand in Malaysia. Gardenia has produced a lot of kinds of breads such as the latest one-Butterscotch, Breakthru, Delicia, Twiggies and many others. In order to satisfied different level of customer, every Gardenia product has its own special features. For example, Gardenia Breakthru breads is not only bread, but consumers have the perception that it is a healthy food.

It contains 38% less carbohydrates, 7. 3x more dietary fibre, 15% less calories, 59% more proteins, low gylcaemic index (42), low gylcaemic load (6. 5), prebiotic properties, low fat, no trans fat and no added sugar. The price of Gardenia breads is low and almost the same as others competitors. In fact, the pricing of Gardenia bread is controlled by the government. This is because of the ingredient of the bread, flour, which is one of the products that are under the control of the government in Malaysia.

Gardenia makes widespread distribution either in urban or rural area to make sure everyone can have their breads. As all of us know, Gardenia baked products are well known by everyone. Gardenia has over 20000 outlets throughout Peninsular Malaysia. Their wide varieties of products are available in almost all hypermarkets, supermarkets and even neighbourhoods stores. Here, Gardenia seeks for market share through intensive distribution, a strategy in which they stock their products in as many outlets as possible.

Their breads and cakes can be conveniently obtained by consumers wherever and whenever consumers want them. Gardenia implements mass promotions. For instance, it uses mass media such as television to promote its products and to introduce new products to the customers while ensuring customers to remember about their existing products. Gardenia has used advertising strategies to promote its products. Among the various alternatives media, television advertising and newspaper are mostly used by Gardenia.

In short, major advertisement of Gardenia’s bread have established Gardenia slogans as part of its popular culture, such as “It’s fresh! It’s good! So good…you can even eat it on its own! ”. Brief History In 1969, an American named Horatio Sye Slocumm was sent by International Executive Service Corporation (IESC) to East Malaysia to start a bakery. Mr. Slocumm brought with him 35 years of baking experience with one of America’s leading chain of bakeries. Gardenia was born. Gardenia Bakeries (KL) Sdn Bhd rolled the first loaf of bread off its line in 1986.

Within a short period of four years, it became the bread market leader with an astounding 99 percent brand recall rate and 80 percent top-of-mind recall. Gardenia’s range of products grew and evolved through the years, becoming better and better with each step. Leveraging on its brand strength, Gardenia produces variety of baked products to satisfy consumer’s demands. Gardenia has four factories which locate at Shah Alam, Subang, Puchong and another one. The factory at Puchong is specified in producing new products.

Sdn Bhd 2005: Universal Integrated System- ISI2020, Research Institute of Standards in Islam 2006, 2007: Low Glycaemic Diabetic-Friendly, Diet friendly Seal, Glycemic Research Institute, Washington D. C. 2007: Highly Commended Product Award, Malaysian Institute of Food Technology (MIFT) 2. 0 Situation Analysis Gardenia Bakeries (KL) Sdn. Bhd rolled the first loaf of bread off its line in 1986. Within four short year, it become the bread market leader. Gardenia has for many years been at the forefront of producing fresh, tasty and yet nutritious bread.

Gardenia’s flagship bread has improved through the years, becoming better and better each step of the way. Today ,it is known as Original Classic and is enriched with 14 vitamins and minerals. To meet the changing expectation of today’s customers, Gardenia is constantly adopting industry innovations, new baking techniques and product development. 2. 1 Market Summary Gardenia possesses good information about the market and knows a great deal about the common attributes of the most prized customer.

This information will be leveraged to better understand who is served, what is their specific needs are, and how Gardenia can better communicate with them. Target Market The target markets of Gardenia Bakeries Sdn. Bhd are customer market, reseller market, and also government market. The customer market consists of individual and household while reseller market consists of retailer, supermarket (Carrefour & Tesco), and convenience stores (7-Eleven and stores at petrol station) and finally the government market which includes the hospitals. 2. 1. 1 Market Demographics

The profile of the typical Gardenia customer consists of the following : demographic environment, economic environment, natural environment, technological environment, political environment. Demographics Environment Demography is the study of human populations in terms of age, density, gender, location, occupation, race, size and other statistics. Basically, demographic environment has major implications for business. This is because the demographic environment involves people, who play an important role in making up the markets. Generally, populations are becoming more educated.

The rising number of educated people will increase the demand for quality products especially when health is highly concerned nowadays. Therefore, Gardenia has come out with Gardenia Breakthru, a health-conscious product. Gardenia Breakthru is formulated with beta-glucan that can help to lower cholesterol levels and stabilize blood glucose levels. Economic Environment The economic environment consists of factors that affect consumer purchasing power and spending patterns. Consumers at different income levels will have different spending patterns. For upper-class and middle-class consumers, they have a better standard of living.

They are willing to go for the good quality products. Consequently, although food, such as bread, is just daily basic needs, they tend to select more sophisticated products. For instance, consumers with higher income will choose more expensive bread with special features such as Toastem. On the other hand, the underclass consumers usually make further consideration before buying to reduce their expenses when purchasing. So, they may possibly buy normal white bread as their daily meal. Thus, the economic forces will also affect a company’s marketing plans. Natural Environment

The natural environment involves the natural resources that are needed as inputs by marketers or that are affected by marketing activities. Nowadays, the world environmental pollutions have reached an alarming level. Hence, marketers should be aware of several trends in the natural environment especially the deteriorating pollution. For example, manufacturing company like Gardenia commonly produce toxics gases and chemical wastes during their daily production. They also use non-biodegradable plastic bags as packaging materials. All activities leads to the pollution of the environment.

So, to be environmentally responsible, the company should develop better solutions to reduce pollutions. However, it needs vast fund to do so causing the company to face financial burdens and indirectly posing threat to the company. Technological Environment Technological environment consists of the forces that create new technologies, new products and marketing opportunities. The recent technology boom has created a new digital age. For example, the explosive growth in computer, telecommunications and information has had a major impact on the ways companies deliver value to their customers.

For Gardenia, they apply computer systems to manage its operation such as tracking inventories, recording accounting transactions, and storing customer’s profiles. The usage of information technology has smoothened and fastens the process of the commercial activities. This enables the company to become more competitive as well. Thus, in this contemporary, if manufacturing company such as Gardenia ignores latest technologies, their business may decline. Political Environment The political environment composed of laws, government agencies, and pressure groups that influence or limit various organizations and individuals in a given society.

Basically, marketing decisions are strongly affected by the developments in the political and legal environment. The increasing emphasis on ethics and socially responsible actions encourages for-profit organizations to implement their social obligations. For instance, Gardenia has made positive response and they take this responsibility by supplying bread free of charge to old folk homes, disabled people centres and other charitable organizations. By doing so, a better public image of the company can be built. Indirectly, this also help the company to gain exposure to more marketing opportunities.

Market Needs Gardenia has produced a lot of kinds of breads such as the latest one-Butterscotch, Breakthru, Delicia, Twiggies and many others. Every product has its own special features. Price The price of Gardenia breads is low and almost the same as others competitors. One of the examples is the white breads of Gardenia (jumbo size) which have more slices but at a cheaper price. Quality For the company’s designing marketing plans, marketing management takes other company groups into account. For example, Gardenia Bakeries Sdn.

Bhd makes Research and Development to be the top of Malaysia’s favourite bread, and also innovators. Gardenia invests heavily in R&D. Its latest product, Gardenia Breakthru, demonstrates its commitment to giving only the very best to their customers. Gardenia Breakthru passed extensive clinical tests at the Glycemic Research Institute in Washington D. C. and are certified Diabetic-Friendly and Diet-Friendly. This latest result reaffirms Gardenia Breakthru’s extraordinary qualities. 2. 1. 3 Market Trends Nowadays consumers are generally health conscious and prefer bread with nutrients and less sweet.

Gardenia Malaysian believes strongly in ensuring that our consumers enjoy the finest quality and freshest bread daily. We take our Gardenia Assurance very seriously and consumers of Gardenia products are aware of our commitment to the highest quality, food safety and freshness. To cater to Malaysians’ changing demands and lifestyle needs, Gardenia’s marketing and R&D teams are constantly researching and exploring new product innovations. For example, we were the first in Malaysia to identify an unmet demand in the market for low glycemic index bread to meet the special dietary needs of diabetics as well as for weight management.

Even though awareness of glycemic index and its correlation to our blood sugar level (low glycemic index foods result in slow release of sugar in the blood and is hence diabetic-friendly) is still in the infancy and as such, low glycemic products are still considered a niche market, figures show that diabetes in Singapore is unfortunately on the upward trend and this is a group of people whose needs are not sufficiently addressed. For example, for Gardenia Breakthru breads, it is not only a bread, but consumers have the perception that it is a healthy food.

It is consists with Beta Glucan which helps to lower cholesterol, this has been clinically tested and certified Diet Friendly by the Gylcemic Research Institute, Washington D. C because it has Low Adipose Tissue Fat-Storing Capacity and will assist our body in having better control over obesity. It is also certified as Diabetic Friendly which helps to maintain stable blood sugar level that typically follows a meal. It is also have 38% less carbohydrates, 7. 3x more dietary fibre, 15% less calories, 59% more proteins, low gylcaemic index (42), low gylcaemic load (6. ), prebiotic properties, low fat, no trans fat and no added sugar too.

The market trend are showing continued growth in all direction of healthy lifestyle. 2. 1. 4 Market Growth The increases in the cost of raw materials and energy have been remarkable this year. What strategy did Gardenia International utilize to reduce the impacts of these costs on profitability? How successful have you been in implementing such measures? Have you had to increase the prices of your products this year? Over the past two years, there have been continual upward price pressures especially for flour and fuel, which we have tried to absorb initially.

This has led to a great increase in the costs of operations and therefore a review of the pricing of the products. As the market leader in the bread category however, Gardenia is mindful of the fact that many Malaysian depend on us for their daily bread and as such, we have tried to contain the price increase to so as to minimize the impact of the rising inflationary costs amongst our fellow Malaysian. 2. 2 SWOT Analysis The following SWOT analysis captures the key strengths and weaknesses within the company and describes the opportunities and threats facing Gardenia. 2. 2. 1 Strengths

The strengths of Gardenia in Malaysia are that it has brand strength in marketing. Gardenia has built up a very strong brand in Malaysia, it almost generic to the product categories. Since Malaysian is mind-set, when they think about bread, they think about Gardenia. As we can seen its product is being sell in whole Malaysia, which is nationwide. Everyone can get it easily from grocery shop, minimarket, supermarket and hypermarket. Besides that, Gardenia also has the strength in product innovation, as we can seen that it continuously introducing new product and keep bringing more choices to the customers.

Moreover, Gardenia, in their move to develop health bread has teamed up with a group of a researchers attached to a medical faculty from a local university, to formulate bread using special functional ingredients. On the other hand, Gardenia is involved in social work. Every day, it deliver complimentary fresh bread to over 45 charitable organizations like old folks home, orphanages and centers for the disabled, eight of which have been on Gardenia’s delivering list since 1991. To continue maintain this strength, Gardenia should do more promotion through media such as newspaper, radio and television.

The advertisement should contain creative and funny element so it could easily attract more customer. To make the product fully nationwide, Gardenia should increase more and more retailer in the future in order to reach its product to every Malaysian. 2. 2. 2 Weaknesses The weakness of Gardenia is about its packing. Until now, the baked products that produce by Gardenia are still weak in its packing, which is not enough attractive. Conversely, the packing of High 5 Bread is more attractive if compare with Gardenia. Here are some sample and comparison between Gardenia and High 5 according to the packing. [pic] [pic][pic] [pic] [pic]

By looking to the pictures above, it is obviously that the packing of High 5 are more attractive than Gardenia. The packing of High 5 is more attractive with its colorful plastic bag and the vivid design. To overcome this problem, Gardenia should put more effort on the packing. For example, Gardenia can distribute survey form to the public by asking them what kind of packing could more attractive. After that, Gardenia could hire some designer to design the packing that they desired. Why packing is so important? It is because for first buyers who never know about the product, they will buy the product based on the packing.

That is why Gardenia should improve its packing in order to gain competitive advantage. 2. 2. 3 Opportunities Increase awareness of health and fitness Nowadays, the number of Malaysian suffer from diabetes are increasing day by day. Gardenia is working closely with the National Diabetes Institute (NADI) on the “Fight Against Diabetes” programme, a major educational drive to bring public awareness on the prevention and management of diabetes. And now Malaysian has more knowledge in nutrient and they are emphasize the nutrient contains in food and the calories of food.

Before they going to buy the food in package they will look at the label of contains nutrient in the package to help them choose food which is more wisely. They will watch for these key terms and know what they mean. • “Free” has the least amount of a nutrient. • “Very Low” and “Low” have a little more. • “Reduced” or “Less” always means the food has 25 percent less of that nutrient than the reference (or standard) version of the food. Malaysian people are more concern to the calories, fat, cholesterol and so forth they taking in the food daily.

For example, they try to eat food less salt, sugar and oil to keep them healthy. Thus, Gardenia will keep working hard to produce more healthy bread in order to fulfill consumer’s need. Increase number of working youth Increasing numbers of working youth in Malaysia cause an increasing demand in convenience for everything for life. For example incensement for demand for fast-food (KFC, Pizza Hut and Mc Donald) instant drink( soft drink, Milo, Soya and so on), online shopping and so on. This is because they are too busy in working. For this reason, Gardenia hopes to bring a convenient and healthy meal for these busy groups.

No matter how busy is the life, craving for healthy food is a need. While busy with life, Gardenia is always standby to provide a convenient and healthy meal. 2. 2. 4 Threats Threats that facing by Gardenia is: Future / potential competition from an already established market participant There are few bakeries companies which compete with each other in Malaysia. Besides the strong competitor, High 5, Gardenia is compete with some smaller bakeries which is family owned, structured and are usually started as a single shop before extending to more outlets.

These family bakeries however, do not only emphasize on the bread products, but also produce higher margin delicacies such as cakes and cookies. These bakeries operate in the city where the flow of people is high and most importantly, where the more affordable working group is. Among the few local confectionary retail chain shops are the King’s Confectionary, which started in 1973 in Kuala Lumpur and now with 49 retail outlets, the Season’s Confectionary and Bakery, the Angel Cake House etc.. Threat matrix Probability of occurrence Competitors develop superior new product line. |Decrease Malaysian people eating bread. | |Major prolonged economic depression.

Higher cost |Legislation to reduce foreign product. | HighLow 2. 3 Competition Strong Competition Two national local bakeries, which cater to various regions, namely Gardenia and Stanson Bakeris, were dominated the Malaysian bread industry at present. These two companies hold approximately 76% of the retail market in 2002.

They compete between themselves through prices, product characteristic, distribution choices, and even communication. Investment in advertising in incredibly high and the market segmentation never ended. • Stanson Bakeries ( High 5 Bread) Stanson Bakeries and its marketing unit are subsidiary companies of the Stanson Group under the Silver Bird Group Bhd. The Stanson Bakeries manufactures the European variety of breads, namely High 5. The group, which started in 1999, is currently contributing about RM46 million, close to 90% of Silver Bird’s turnover in year 2004.

The Stanson Bakeries, has 250 trucks plying the peninsula’s North-South expressway 24hours a day, to reach their outlets overnight, on a daily basis. Their strong distribution network has enabled the company to supply more than 8000 retail outlets throughout the country in the year 2004. High 5 breads are made from the finest selected ingredients and baked to a unique European recipe, High 5 has the balance of 5 main nutrients with no artificial preservatives that our body needs that give us the energy, growth and good health to live a full life.

Wholesome, well-balanced and nutritious, that’s the secret recipe of High 5 bread. High 5 bread is freshly baked everyday from state-of-the-art single largest stand-alone bakery line in ASEAN using a unique European Recipe that makes your favorite bread softer, tastier and healthier. It contains all of the five essential nutrients from each of the five important nutritional groups – carbohydrates, protein, calcium, vitamins and irons. It also has folic acid, which is recommended for vitality and growth of our body, especially for expecting mothers and babies; and is cholesterol and bromated free for good health.

The High 5 Promise – Soft ; Tasty high quality bread which emphasizes good health and nutrition. High 5 bread is produced by integrating state-of-the-art food processing technologies with professional management techniques. High 5 cares to give you the best in bread, beginning with our Unique European Recipe, so from taste to texture, consumer can tell the difference in every bite. That’s why every High 5 bread has essential nutrients that contribute to a healthy, well-balanced and nutritious diet for the whole family A bread museum called the High 5 Bread Town is built by The Silver Group in their RM100 million new plant premises.

It present the history of bread making that ps more than 500 years ago, from Ancient Egypt, through the Iron Age, the Roman and Viking periods, right through the industrial revolution of the present day. It uses colorful murals and interactive displays with sound to give lively hands-on experience to visitors. It is claimed to be is the first of its kind in the world. It even portrays bread in futuristic years, in the form of pallets and pills to be taken during a spaceship expedition. It is fascinating with ideas being so well transformed for educational purposes.

In October 2004, Stanson Bakeries announced their official acquisition of licensee for the manufacture and distribution of Roman Meal breads from The Roman Meal Company in the US (best known globally for their nutritional and health bread over the century). The following is the list of the product by Stanson Bakeries : ? High 5 Cream Roll ( flavors : chocolate, vanilla and corn) ? High 5 Double Cream Roll ( flavors : chocolate & vanilla, espresso & cream, Blueberry & cream, apple & cream) ? High 5 Fruit Roll (flavors : raisin & cherry, raisin,apricot & walnut) ?

High 5 Filled Bun ( flavors : ikan bilis, spicy tuna, classic sardine, coconut, red bean, kaya and chocolate) ? High 5 High Grain ? High 5 Roti Kok 2. 4 Product offering The first loaf of bread was rolled by Gardenia in 1986. Through the years, Gardenia leveraged on its product strength and until now, it produces a variety of baked products to satisfy customer’s demand. The following are the products that produce by Gardenia: ?

Gardenia Twiggies ( flavors : cream dream and choc-a-lot) ? Gardenia Toast’em (flavors : raisin oatmeal and apricot raisin wheatgrain) ? Gardenia Summerset Cottage Wholegrain Fibremeal Gardenia Squiggles (flavors : funky strawberry and choco-malto) ? Gardenia Quick Bites (flavors : double chocolate and banana) ? Gardenia Classic and Classic Jumbo ? Gardenia Muffin Cip Coklat ? Gardenia Frankfurter Rolls ? Gardenia Delicia Soft Roll ( flavors : milky chocolate, coffee cinnamon, butter toffee and black sesame) ? Gardenia Delicia Sambal Bilis ? Gardenia Delicia Pandan Butterscotch Bread ?

Gardenia Delicia Hazelnut Choco Spread ? Gardenia Delicia Cream Roll ( flavors : vanilla, kaya,jagung and chocolate) ? Gardenia Delicia Coffee Caramel Bread ? Gardenia Delicia Chocolate Spread Gardenia Delicia Choco chip Raisin ? Gardenia Delicia Butterscotch ? Gardenia Breakthru Formula Mutliwholegrain Fibremeal ? Gardenia Bonanza Big Saver & Big Value 2. 5 Keys to Success “So good you can even eat it on its own. ” The phrase is synonymous with Gardenia.

Gardenia moved with their demands as consumers getting more conscious about nutrition over the years. It started manufacturing loaves with no trans fat, no cholesterol and chockfull of vitamins. More than that, they make that extra healthy choice plan to see on its nutrition labels. As an understanding manufacturer, Gardenia is continuously to fulfill customer’s need.

Critical Issues In year 2008, there was a critical issue that rose between QAF Limited and LB (Lian Bee) Confectionery Sdn. Bhd. , pursuant to section 45 and 46 of the Trade Marks Act 1976 for an order that the Trade Mark Registration No: 01005742 for “Squiggles” in Class 30 in the name of QAF Limited be expunged and removed from the Register of Trade Marks Malaysia would be success or not. Before this, QAF Limited and Gardenia entered into a Licensing Agreement dated 12. 9. 1996 whereby QAF Ltd granted Gardenia Bakeries the right to use trade marks on bread and bakery products produced using the Gardenia Bakery System.

This includes the registered trade mark “Squiggles”. In this case, the court held that LB (Lian Bee) Confectionery Sdn. Bhd. is dismissed with costs and the application by the company is failed. As a conclusion, the trade mark “Squiggles” is still belonging with Gardenia Bakeries. 3. Marketing Strategy The key to the marketing strategy of Gardenia is focus on satisfied consumers’ demand by introducing the different kinds of product, eating healthy life style and also the Halal status of Gardenia in Malaysia. Gardenia’s range of products grew and evolved through the years, becoming better and better with each step.

Leveraging on its brand strength, Gardenia now produces a variety of baked products to satisfy consumers’ demands. Gardenia also stress about the eating healthy life style by introducing the Gardenia Breakthru bread with the statement– eat well and stay well with Gardenia Breakthru, the diabetic-friendly bread that’s better for you. While for the Halal status of Gardenia bread, a special Halal Committee is formed to scrutinise every aspect of the Halal regulations and to ensure that all requirements are stringently adhered to.

As an added measure to control and safeguard of Halal status, Gardenia has appointed an independent consultant whom Gardenia could refer to in ‘syariah’ related matters. 3. 1 Mission Gardenia as a food company that manufactures a wide variety of breads has the mission of becoming “The Premier Company in the Baking Industry. ” Being a consumer-focused and branded food company, Gardenia is singularly driven and aligned behind delivering superior consumer value through providing consumers with superior brands. The main objective is to project that Gardenia trademark means value and it is respected all over Asia.

By delivering uncompromising excellence in product quality and service, Gardenia consistently drive the market forward, setting standards for the industry to follow. At Gardenia, the science of baking an art is made. 3. 2 Marketing Objectives First, to ensure the aroma and taste of the bread are consistently being maintained on the shelf. Second, while exploring new market, current customer loyalty is retained. Third, within four short years, Gardenia became the bread market leader with an astounding 99 percent brand recall rate and 80 percent top-of-mind recall.

 Financial Objectives First, maintain a significant research and development budget to spur future product development. Secondly, continue heavy promotion to further increase the company’s profit margins. 3. 4 Target Markets The target markets of Gardenia Bakeries Sdn. Bhd are customer market and reseller market. The customer market consists of individual and household. Usually the customer market will buy only in small quantity but with a large number of customers, a great sell could be achieved.

While for the reseller market consists of retailer, supermarket (Carrefour ; Tesco), and convenience stores (7-Eleven and stores at petrol station). The reseller market usually characterise as an assist to the customer market. They help to distributed product and make it available anytime anyway. 3. 5 Positioning Competitors are those who serve the target market with similar products and services against whom a company must gain strategic advantage. Now, Gardenia Bakeries Sdn. Bhd. has 70% share market in the bread’s industrial and it is a leader in this industry.

This is because Gardenia has positioned their offerings strongly against competitor’s offerings in the minds of the consumers. For example, it has its own song to make consumers remember its bread which is “So good… You can even eat it on its own”. As we know, the demographic environment involves people, who play an important role in making up the markets. Generally, populations are becoming more educated. The rising number of educated people will increase the demand for quality products especially when health is highly concerned nowadays.

Therefore, Gardenia also comes out with Gardenia Breakthru, a health-conscious product that strongly positioned in the markets. Gardenia Breakthru is formulated with beta-glucan that can help to lower cholesterol levels and stabilize blood glucose levels. 3. 6 Strategies There are a few strategies that have been use by Gardenia to penetrating its own bread market. Generally, Gardenia focuses on three aspects to delivery its product value to the customer where as marketing intermediaries, suppliers and public. Marketing intermediaries help the company to promote, sell, and distribute its goods to final buyers.

There are a lot of marketing intermediaries like reseller, the physical distribution firms and the marketing service agencies. Gardenia uses intermediaries’ distributions and also direct selling method to offer its product to the final buyers. The company uses the resellers to distribute its products in order to make sure that their products can be delivered to the customers. Its start its bread delivering operation at 4 a. m. every working day so that customers are able to get its breads early in the morning. The customer can get the products easily in any retails without going to the main warehouse.

Gardenia also uses the physical distribution firms to help them to stock and move goods from their main warehouse to final buyers, wholesalers and retailers. For supplier’s aspect, Gardenia knows that suppliers form an important link in the company’s overall customer value delivery system. They provide the resources required by the company to produce its goods and services. So that Gardenia put an important insight to the supplied resources. For example, due to the short-lasting validity of flour, Gardenia prefers to purchase its resources from the local suppliers to ensure that the resources received are fresh.

While for publics, a public is any group of people that has an actual or potential interest in or impact on an organization’s ability to achieve its objective. In order to achieve its objective, Gardenia is using different public media for different motive. For example it uses television to promote and also to ensure consumers remember about Gardenia’s products, be it new products or existing products. Gardenia also encourage to having a factory visit where Gardenia called it ‘Bread Time Story Tour’. The free factory visit has attracted over 25,000 visitors annually since 1991.

More specifically, Gardenia even owns a theme song that we familiar heard from the broadcasting of advertisement. 3. 7 Marketing Mix Gardenia marketing mix consists of the following approaches to product, pricing, distribution, and promotion. 3. 7. 1 Product Product is anything that can be offered to a market for attention, acquisition, use, or that might satisfy a want or need while service is any activity or benefit that one party can offer to another that is essentially intangible and does not result in the ownership of anything.

Products that are marketed are divided into two, which are consumer products (convenience product, shopping product, specialty product and unsought product) and industrial products (materials and parts, capital items and supplies and services). Gardenia has produced a lot of kinds of breads such as the latest one-Butterscotch, Breakthru, Delicia, Twiggies and many others. Every product has its own special features. This is because of the customer buying behaviour; customers who make frequent purchase, little planning, little comparison and low shopping effort before make purchasing.

Price; the price of Gardenia breads is low and almost the same as others competitors. One of the examples is the white breads of Gardenia (jumbo size) which have more slices but at a cheaper price. Distribution; Gardenia make widespread distribution either in urban or rural area to make sure everyone can have their breads, and also promotions; Gardenia implements mass promotions. For instance, it uses Mass Media such as television to promote its products and to introduce new products to the customers while ensuring customers to remember about their existing products by using radios..

Referring to the product level, the core benefit represents what the buyer is really buying. The core benefit provided by Gardenia Bakeries is to make their consumers have the feeling that what they are consuming is not only bread, but the experience. For example, for Gardenia Breakthru breads, it is not only a bread, but consumers have the perception that it is a healthy food. It is consists with Beta Glucan which helps to lower cholesterol, this has been clinically tested and certified Diet Friendly by the Gylcemic Research Institute, Washington D.

C because it has Low Adipose Tissue Fat-Storing Capacity and will assist our body in having better control over obesity. It is also certified as Diabetic Friendly which helps to maintain stable blood sugar level that typically follows a meal. It is also have 38% less carbohydrates, 7. 3x more dietary fibre, 15% less calories, 59% more proteins, low gylcaemic index (42), low gylcaemic load (6. 5), prebiotic properties, low fat, no trans fat and no added sugar too. The actual product represents the design, brand name, and packaging that deliver the core benefit to the customer.

For this company, the actual products are all kinds of Gardenia breads. 3. 7. 2 Pricing Price refers to the amount of money charge for a product or service. It is the sum of all the value that consumers give in order to gain the benefits of having or using the product and services. Price has been the major factor that influences buyer choice and it remains as one of the most important element that determine a firm’s market share and profitability. Besides, price is the only element in the marketing mix that produces revenue and it is also a part of a company’s overall proposition.

More importantly, it plays a key role in creating customer value and building customer relationships. Theoretically, price competition is the number one problem faced by many marketing executives. Yet, we get to know in our interview that Gardenia did not compete by using their price, they make customer feel worth by providing bread with high quality. It also focused on the product differentiation, such as creating new products in order to attract customers. In fact, the pricing of Gardenia bread is controlled by the government.

This is because of the ingredient of the bread, flour, which is one of the products that are under the control of the government in Malaysia. The producers are unable to change the price as they like and they must follow the price fixed by government. Despite of this limitation, Gardenia will also consider several major aspects when setting the price. The first aspect that is taken into consideration is the product cost. They will ensure that the price set is able to give profit to the company and at the same time, maximizing customer satisfaction. Gardenia will also consider about the overall marketing strategy and market demand.

The price for Gardenia bread must be reasonable and affordable by everyone and it must also the same regardless of what location the bread is sold in Malaysia. 3. 7. 3 Promotion Promotion is one of the four key aspects of the marketing mix. Gardenia realizes that a good promotion is vitally important to create growth for the company. In the early years, a lot of efforts have been put into the promotion of the bread, but once consumers have accepted it they will be loyalty to the product. Promotion includes advertising, sales promotion, personal selling, publicity and public relation.

Advertising consists of paid personal communication through various media with the purpose of promoting the products and is used by marketers to reach target markets with messages designed to appeal to business firms, profit organizations, or ultimate consumers. Gardenia has used advertising strategies to promote its products. Among the various alternatives media, radio commercial, television and newspaper are mostly used by Gardenia. Radio is the most common medium used to remind existing customers about Gardenia products while television advertising is usually used to promote new products.

The advantage of television advertising is that marketers are able to reach local and national markets. Television advertising offers the advantages of mass coverage, powerful impact on viewers, repetition of messages, flexibility and prestige. That is all the reason why Gardenia chooses television to advertise their products. Newspapers act as an effective way to countdown new product for Gardenia because it can reach specific target market. In short, major advertisement of Gardenia’s bread have established Gardenia slogans as part of its popular culture, such as “It’s fresh!

It’s good! ”. Besides that, sales promotion is one of the ways Gardenia use in promotion. In October 2003, a marketing drive was launched to promote an existing product of Gardenia. Consumers were required to collect four empty packaging of the Gardenia bread to redeem one free loaf Gardenia bread. The campaigns were successful in recreating awareness for these products and have lead to significantly increased sales. In addition, Gardenia is also using publicity and public relation. It has been actively involved in charitable causes.

For example, Gardenia delivers complimentary fresh bread to over 45 charitable organizations like old folk’s homes, orphanages and centres for the disabled each day and these charitable organizations have been on Gardenia’s delivery list since 1991 while the Twiggies Wagon has been dispensing free Twiggies to schoolchildren during special events and functions since 2002. Moreover, as a responsible corporate citizen, Gardenia also helps in fighting the obesity epidemic in Malaysia.

It is working closely with the National Diabetes Institute (NADI) on the “Fight Against Diabetes” programme, a major educational drive to ring public awareness on the prevention and management of diabetes. Another example is that Gardenia has opened their factory doors to the public in order for them to share their journey, aspirations and progress with customers since 1991. Now, they welcome over 25,000 visitors annually and take them on a personal tour of Gardenia bread factory absolutely free of charge.

The visitors will be given free sample of bread during the factory tour. 3. 7. 4 Place Currently, Gardenia Bakeries (KL) Sdn Bhd has covered the domestic markets all around the Peninsular Malaysia. However, Gardenia’s baked products are only available in Peninsular Malaysia.

This is because the delivering process to East Malaysia is time-consuming and the products are no longer fresh. Hence, East Malaysia which includes Sabah and Sarawak are not within Gardenia Bakeries’ distributed areas. As all of us know, Gardenia baked products are well known by everyone. Gardenia has over 20000 outlets throughout Peninsular Malaysia. Their wide varieties of products are available in almost all hypermarkets, supermarkets and even neighborhood stores. Here, as we can notice, Gardenia seeks for market share through intensive distribution, a strategy in which they stock their products in as many outlets as possible.

Their breads and cakes can be conveniently obtained by consumers wherever and whenever consumers want them. Actually, their success in manufacturing products and making them available to final customers requires building and managing a continuously evolving value delivery network. What is value delivery network? It is a network that made up of the company, suppliers, distributors, and ultimately customers who collaborate with each other to improve the performance of the entire system. This network consists of both ‘upstream’ and ‘downstream’ partners.

Upstream partners are the set of firms that supply the raw materials, components, parts, information, finances, and expertise in order to create a product. On the other hand, the downstream marketing channels or distribution channels partners are made up of such as wholesalers and retailers. For Gardenia Bakeries, they work closely with their upstream partners such as flour suppliers to avoid problem of shortage of raw materials, which will critically affect their daily production. Normally, to maintain good relationship, a win-win situation must be created.

For instance, Gardenia will always make payments to their suppliers on time. Besides that, Gardenia also forges marketing channels, especially retailers, such as hypermarkets, supermarkets and convenience stores, to act as intermediaries to help distributing their baked products available for consumption by the final consumers. In a final word, all firms are unable to deliver value to customers by themselves. Instead, they must cooperate with other firms in a larger value delivery network. Of course, by doing so, they will be able to attain the goal of creating superior customer value.

Marketing Research Gardenia prides itself in being the leader in its field by introducing several firsts in the bread industry. Gardenia is the first in the country to use a unique automated G-lock on the packaging to seal its bread products and retain freshness. This plastic clip is placed on the “neck” of the bread package with the “Best Before” date and retail price printed on it. Gardenia breads also packed in colourful and informative packaging displayed in an upright fashion unlike the conventional flat display.

With this new marketing research, Gardenia will achieve the market penetrating status. In addition, adhering to the international policy of keeping only fresh stocks on the store shelves, Gardenia deliver freshly-baked breads to the stores on the same day they are produced. With an extensive distribution network, Gardenia delivers everyday, seven days a week. For the unsold breads, it will be pulled out from store shelves and replaced with only newly baked ones during every day of delivery. 4. 0Financials This section will offer the financial overview of Gardenia Company related to marketing activities.

Gardenia will address break-even analysis, sales forecasts, expanse forecast, and indicates how these activities link to the marketing strategy. The marketing plan is built in these truths:

1. The marketing budget is based on a percentage of sales value, currently the value is set at 25%.
2. Building a strong brand and brand loyalty is a critical to the success of Gardenia Company.
3. The understanding of the need for strong branding and emphasis on marketing gives us a competitive edge over others bread market.

Based on the graph above, we can notice that the break-even analysis for these three years indicates that RM161, 445,140 with 40,711,709 unit sales will be required in yearly sales revenue to reach the break-even point. Gardenia will make profit if the company reach above the break-even point or loss money when below the break-even point. Such break-even analysis helps Gardenia by showing the unit volume needed to cover the costs.

If production capacity cannot attain this level of output, then Gardenia should not launch this product. However, the unit break-even volume is well within Gardenia’s capacity. 4. 2 Sales Forecast Gardenia feels that the sales forecast figures are conservative. Based on the past trend views, the revenue of sales had almost 16% growth rate from RM331 million to RM383 million in year 2007.

It continues increase by 23. 34% to RM473 million in year 2008. We have an idea sales will growth from year to year. Thus, we can predict a growth rate of 25% in sales for the next four years which is year 2012. It will steadily increase sales if the advertising budget allows. [pic] Based on the Gardenia’s income statement from year 2006 to 2008, the overall performance of Gardenia Company is quiet good that shows the increases of the net income especially in year 2008 which had increased by 28. 23% compare with the year 2007. Cost of goods sold was increasing within years 2006 to 2008 which increased by 17. 8% in year 2007 and 26% in year 2008.

As a result, the gross profit of Gardenia was declining based on its sales of each year that gives 33. 87% in year 2006 to 31. 36% in year 2008 but the company still having the increasing of gross profit. The gross profit was increasing in year 2007 by 12. 35% and 17. 89% in year 2008. Operating profit was increasing by 15. 41% in year 2007 and 28. 09% in year 2008. However, the company should more concern about the proportion of the net income gained by its sales which had declined from 7. 77% to 7. 21%. It may be caused by the increases of marketing and distribution expense in these three years that had contributed the largest percentage in company expenses especially in year 2007 which is almost 24% of the its sales.

Therefore, Gardenia should control the expenses of the company to earn more profit for the future years, 2012. 4. 3Expenses Forecast Based on the Gardenia’s income statement from year 2006 to 2008, the total expenses are shown as below: |  |2006 |2007 |2008 |2006-2007 (%) |2007-2008 (%) | | | | | | | | |Administrative expense | 7,438,655 | 8,142,244 | 9,944,788 |9. 6 |22. 14 | |Marketing and distribution expenses | 82,335,562 | 91,234,568 | 104,093,079 |10. 81 |14. 09 | |Other expenses | 666,333 | 736,678 | 887,934 |10. 56 |20. 53 | |Total expenses | 90,440,550 | 100,113,490 | 114,925,801 |10. 70 |14. 80 | | | | | | | | |Revenue 330,662,232 |383,411,553 |472,896,480 | |Total expenses on sales (%) |27 |26 |24 | |

Marketing and distribution expenses on |25 |24 |22 | |sales (%) | | | | Gardenia had contributed their expanses wisely which had shown the decreased in the proportion of total expenses from 27% to 24% based on the sales each year. According from year 2006 to 2007, total expenses had increased by 10. 7% and continue increased by 14. 8% in year 2008. The marketing budget will consistently approximately around 25% of sales. One of the strongest strengths is marketing and brand building capabilities, and the aggressive marketing budget is a reflection of the importance to attribute in marketing activities. 5. 0Marketing control

We must evaluate Gardenia marketing efforts continually to ensure its performance is on track against Gardenia’s objectives. Objective 1: Produce high quality products Gardenia tends to produce the best quality products for their customer. They will maintain their quality through: i. JAKIM Certification All Gardenia products are certified Halal by JAKIM. Regular factory inspections are conducted by officers from JAKIM to monitor and ensure that the overall operations are following the guidelines set by them. ii. PPIM Gardenia works closely with Persatuan Pengguna Islam Malaysia (PPIM) for the interest of Muslim consumers. PPIM determines Gardenia’s status as a Muslim Friendly Organization(MFO). iii. ISI 2020

Gardenia’s close collaboration with PPIM has also resulted in significant accolades like the ISI 2020 certification by the Research Institute of Standards in Islam (RISIS). This certification acknowledges Gardenia’s corporate and management philosophies, principles, cultures and practices that reflect the Islamic principles which are universally accepted and profoundly outlined by RISIS in the system. Objective 2: To build loyal customer Produce good quality products to customer and Gardenia are require a more personal relationship with customer. Every relationship takes on additional significance as the sales potential of each customer increase. Satisfied customer needs will make them rebuy Gardenia product when they are familiar with the product. Objective 3: Fulfill customers satisfaction

Gardenia should always alert the latest the changes of the product in the market. After determine the kind of the products, they should update their product according to the market trend to attract a large number of customers. 5. 1Contingency plan 1. Decrease in Sales If the sales number decline, Gardenia must take the step send an offer product that is related to what they bought. Offer a discount for them who purchase in a big amount. 2. Ineffectiveness of promotion strategic If the promotion strategic fail to attract more customers and increase sales performance, the way that Gardenia can use is arrange all the promotion strategic. They can send out the brochures to the masses about their product.

This will encourage them to buy our product . 3. Retaining customers Customers evaluate every aspect of the product. This includes time of purchase, product disposition, the purchase experience and so on. This results in the consumer’s satisfaction or dissatisfaction with the product and purchase decision. They must do researches about customer’s taste to get feedback from customers and putting the feedback into action. 5. 2RECOMMENDATION Promotion Gardenia should continue their heavy promotion to further increase the company’s profit margins. It is suggested that Gardenia perform online marketing and publish their advertisement through online networking.

Due to a very high demand of bread by the students in the universities, Gardenia can take this opportunity to increase its volume of sales by conducting a campaign on its products and implementing Gardenia Campus Plan. This is an innovative idea to attract more business and support from the students and staffs by entitling the holders to special discount on purchase.

Besides that, Gardenia can introduce a new bonus-link system where every purchase are recorded into the purchasers’ account using member cards and frequent purchasers are given varieties sample of breads and other baked products for free. This encourages bread consumers to purchase Gardenia products and indirectly promote the new products of Gardenia. Place For place, it is recommended that Gardenia expands their baked products’ markets to more places.

For instance, they can consider distributing their breads and cakes to East Malaysia. To do so, Gardenia can expand their business to Sabah and Sarawak by setting up their own manufacturing factory over there. Thus, not only residents from West Malaysia but that of East Malaysia will also have the opportunities to purchase fresh baked products daily.

Conclusion

After investigate from Gardenia Company, we discovered that this small medium company, Gardenia, has been obtaining the excellent respond from its customers in the Gardenia’s products. With the help of a variety of promotion sales and effective pricing strategies, Gardenia is able to have its own market of its products in Peninsular Malaysia.

Furthermore, Gardenia has a strong team work in carrying out all the activities and tasks to achieve these satisfying results. In the past few years, Gardenia has been

Silk Soap Industries Ltd. Marketing Plan Letter of Transmittal To Course Teacher Faculty of Business ASA UNIVERSITY BANGLADESH. SUB: – Application for Term paper on Marketing Plan. Dear Madam I am the students of” Marketing Management” course; here I would like to present you Term paper on “Marketing Plan” of Silk Soap. I am really appreciated by you for that this sort of term paper you give me.

To prepare this marketing plan i endeavor to follow your instruction and i also tried to provide information about my plan, I want to state that this sort of term paper is assisting, gathering preconception before entering my Career life about Marketing Plan. I hope that within a very short time i enrich my Term paper in much depot knowledge with great devotion. Thank you for your kind co-operation and time. Sincerely yours, Acknowledgement First of all I would like to show my gratitude to almighty Allah for kindness to me make the job done without any hesitation.

Then i would like to give thanks my honorable maim Husna Ara, her kind appearance and instruction in every problem make me capable to preparing this term paper successfully. Table of Content Title| Page| Executive summary | 06| Chapter-1(Introduction)| 07| 1. 1 Organization Description | 10| 1. 2 product description| 13| Chapter-2( Situation Analysis)| 15| 2. 1 Competitor analysis| 16| 2. 2 Distribution channel| 18| 2. 3 Market share| 19| Chapter-3(SWOT Analysis)| 20| 3. 1 strength | 21| 3. 2 Weakness| 21| 3. 3 Opportunity | 22| 3. Threats| 22| Chapter-4( marketing Strategy)| 23| 4. 1 Target marketing| 24| 4. 2 Market segmentation | 24| 4. 3 pricing | 26| 4. 4 Distribution| 27| 4. 5 Positioning | 27| 4. 6 Marketing communication| 28| 4. 7 Product management| 29| 4. 8 Marketing research | 29| 4. 9 Promotion| 30| Chapter-5(Action Program) | 31| Chapter-6(Financial projection/Analysis) | 34| Chapter-7( Implementation) | 39| Chapter-8( appendix part)| 40| Chapter-9( Conclusion)| 43| Chapter-10( Reference )| 44|

Executive Summary In Bangladesh soap manufacturing business is now in maturity stage. At present time many companies are producing soap. That is why we have so many competitors. I have learnt about various weakness and limitations from data that I have collected from many companies. So i decided to set up a soap industry by overcoming these limitations and weaknesses. my ultimate goal is capture the market as within 5 years by providing superior value to the customer at reasonable price and will be able to build strong brand image.

However I have a plan to enter domestic market and subsequently the international market with its own brand once it has stabilized its procurement base, production process and quality of product and generated enough financial resources. I financed my business both equity and debt financing (60:40). And i manufacture two types of soap. Fairness and Anti-bacterial soap these two types of soap I will manufacture. Both the soap weighs differently. The fairness soap is 120 gm and the Anti-bacterial soap is 100 gm both the soap will be manufactured in the usual methods.

I will use a systematic distribution channel by which will be able to reach my target customers and also will follow different marketing strategy to capture the market. But first one or two I may face loss due to my new in the market and also I have to launch huge promotional activities to attract my target customers. Finally I will implement my plan and periodically it will review and new strategy will adopt over the time due to continuing the product development process. Chapter – 1 Introduction I. Origin of the Report:

This marketing plan was assigned by Husna Ara, lecturer and course instructor of MKT-331 (Marketing Management) as an individual assignment on April, 25, 2011. As instructed, this plan is about the analysis Marketing plan of a particular company and after evaluating different possibilities the researchers have chosen to do the marketing plan ‘Silk soap Industries ltd. II. Objective of the study: The purpose of doing this report is to fulfill the requirement of the course Marketing Management (MKT-331) as it is compulsory to submit this Assignment.

By doing this marketing plan it will enable the researchers to implement the knowledge gained by doing this course in a more practical manner. III. Scope: As the topic of the assignment suggests would focus on the different types of marketing efforts and activities of Silk soap industries ltd. It should be mentioned here that this Assignment has been prepared in the context of Bangladeshi market and different segmentations and promotional activities analyzed in this report are solely based on the Bangladeshi consumers’ perspective. IV. Limitations: A lack of written material to collaborate with my findings also posed of a source limitations.

Time constraint and lack of raw materials won’t allow us to delve deeper into my assignment. None the less i will try to give my best to make this Assignment a good one and despite of many limitations in my approach, I expect that the reader of this assignment will have broader view and idea about impact and practice of marketing and sales activities of this new soap industry. V. Methodology: The assignment has been prepared in a very constructive and methodological manner. The assignment not only focused on describing different Marketing strategy, it is also somewhat analytic. Primary Source of Information:

The primary information will be obtained from observation and discussion. Secondary Source of Information: The secondary information will be collected from internet, books etc. 1. 1 Organization Description Silk soap industries ltd. Founded : – 2011| Headquarters : – Celebration Point, Road # 113 A, Plot 8 & 9, Gulshan, Dhaka, Bangladesh | Key people:- CEO(Mahfuzur Rahman)| Industry:- Consumer goods| Products: – Anti-bacterial & fairness soapEmployees: – 205Factory: – Marta, gazipur Slogan : – Feel the new sense Website: – www. Silksoapbd. com. Mission: -The mission of my company is to achieve my vision.

My mission is that to identify the target market and perform according to the identifying needs and consumer’s satisfaction. Vision: -Silk soap industry Ltd. is a soap manufacturing company. My company main philosophy is to ensure the whole society fair, beauty and health safety. And create goodwill in the society. Goal: -My company goal is consumer’s satisfaction earning Goodwill to the consumer’s and I will spread my market internationally within 6 years. Objectives:To achieve the goal I will produce yearly 19, 75,000 fairness soaps and yearly 18, 50,000 health soaps.

The objectives of my soap industry are as follows: * Ensuring better quality. * Ensuring proper compensation to the employees. * Ensuring good working condition. * Ensuring interpersonal relations. To accomplish my objectives as I have mentioned above, I will correct the opinion from the customers, wholesalers and retailers by providing an opinion book. | | Board Of Director:| | Chairman Managing Director Head of Marketing & Sales dept. Head of Finance & Accounting dept. Head of HRM dept. Head of Production dept. General Manager General Manager General Manager General Manager Deputy Deputy Deputy Deputy

Executive Executive Executive Executive Figure: – managerial Hierarchy 1. 2 Product Description A product consists of all the tangible and intangible (goods, service or idea) characteristics provided in an exchange between a seller and a buyer. People buy product for the benefits and satisfaction it gives. There are two kinds of products, which used by organizations in producing goods and services or in carrying out their operations are industrial products. Products Items:- My Company product is soap and I will manufacture two types of soaps. Fairness and Anti-bacterial soap these two types of soaps I will manufacture.

Both the soaps weights differently. The fairness soap is 120 gm and the Anti-bacterial soap is 100 gm both the soaps will be manufactured in the usual methods. * FAIRNESS SOAP: Every woman wants to be looking beautiful. In Bangladesh and sub-continent every woman wants to be fair. It is a psychological advantage of this product. Now in the market just two types of fairness soaps are available. But those entire products prices are very high. Our product will available in standard price. So it can use all class. But our main target is High middle and High-class family. We are looking for good quality not high profit.

We hope this soap will be the best soap for beauty seeking women. Include in Fairness Soap: Name: LOREN fairness soap. Target market: women (every women wants to be looking beautiful and fairness) Net Weight: 120 gm Price: TK 17. 00 Element: Aqua, Plamitie Acid, Stearie Acid, Potassium hydroxide, Lauric Acid, PEG-7 glyceryl Cocoate, PEG-150-Distearate, Methyl Paraben, Licorice Extract, Aloe Vera Gel, Vitamin B3, Vitamin C150, and Fragrance. * EXITE ANTI-BACTERIAL SOAP: Anti-bacterial makes for all persons of any age. So, its market is larger than Fairness soap. Every person is my target. Male, female and children can use this soap.

It is an international standard soap. People who are conscious for their health, my anti-bacterial soap are for them. So my main target is the cities of the country. Include in Anti-bacterial Soap: Name: EXIT anti-bacterial soap. Target market: For all persons of any age Net-Weight: 100 gm Price: TK 14. 00 Element: Active B Protection, Sodium Cocoyl Isenthionate, Stearic Acid, Sodium Tallowate, Aqua, Sodium Stearate, Perfume, Sodium Plam, Tri-sodium EDTA, Zinc Stearate, Aloe Vera Gel, and TFM 63%. Chapter – 2 Situation Analysis 2. 1 COMPETITOR ANALYSIS Now a day the business strategy is changed.

There are lots of competitors in the market for the same product. My Silk Soap Industry will produce two types of soaps, Fairness soap and Anti-bacterial soap. To survive in the market each company have to face a challenging competition between each other. So that knowing about the competitors is very important developing business strategies. Competitor’s Product:- Fairness Soap: 1. Name: Fair & Lovely fairness soap[Made by fair & lovely Cosmetics Limited] Net Weight: 150 gm Price: 35 TK. Main Element: Vitamin B3, TFM 73%, GR 2. 2. Name: Lily Soap [Made by Lily Cosmetics Limited] Net Weight: 90 gm

Price: TK. 15. 00 Main Element: Vegetable fat 100%, milk cream with vitamin E, Herbal Extract, Glycerin. 3. Name: Keya [Made by Keya Cosmetics Limited] Net Weight: 90 gm Price: TK. 14. 00 Main Element: Vitamin E, Moisture Rich Nutrients, Jojoba Oil, Jasmine Fragrance and TFM 80% 4. Name: Lux [Made by Unilever Bangladesh Limited] Net Weight: 135 gm Price: TK. 20. 00 Main Element: Herbal Extracts, Rose Extracts with milk cream, TFM 76%, Grade I. Anti-Bacterial Soap: 1. Name: Lifebuoy Gold Net Weight: 100 gm Price: TK 15. 00 Evaluation: Rate is high as weight. 2. Name: Dettol Soap Net Weight: 95 gm Price: Tk 14. 00

Evaluation: Does not contain well flavor. 3. Name: Savlon Soap Net Weight: 100 gm Price: TK 15. 00 Evaluation: Rate is high but does not contain well flavor. 2. 2 Distribution Channel To marketed my products to the targeted customers. My channel will be like follows: Manufacturer Wholesaler Jobber Retailers Consumers * Manufacturer: Silk soap industry is the manufacturer of Loren Fairness soap and Exit-antibacterial soap. So soaps will be distributed from its production plant to wholesalers directly. * Wholesaler: I will have six authorized wholesaler, as the agents in the each divisional cities to where I will offer my products.

These wholesalers will represent my products with the help of different retailer and also advertise, store, distribute and do other promotional activities as well. * Jobber: Under the each authorized wholesalers, I will have around 15-20 jobbers to each divisional wholesaler, who will act as the sub- agents of the wholesaler and influence the market and retailers to use and present the product. These jobbers will be appointed on commission basis. * Retailers: My retailers will actually offer my products to the actual and potential customers. They will collect the soaps from the wholesaler and marketed them frequently.

In each and every public places like market, and near the commercial areas, I will have retailer’s shop and outlets so that they can easily collect my product and use it. By this way I will reach to the customers. * Consumers: At the final level of the process come the consumers who will consume my products. They are the target customers for my company and reaching them, should be my main goal in order to market my products. They will give the final and overall feedback of my products and according to their demands the company must set their objectives and strategies. 2. 3 Market Share

This is the new company in Bangladesh my company position in the investor’s mind will be slightly difficult but over the time I will be able to build up a unique and strong brand image in publics minds, that will be helps my company to attract the investors and capture the market share at good percentage. my goal is, within 5 years I will be able to targeted area. According to my projection I will capture: 22% of the target market share within 2 years 45% of the target market share within 4 years 65% of the target market share within 5 years or more. Chapter – 3 “SWOT” ANALYSIS 3. 1 Strengths It provides better quality and more quantity than any other brand in the market with a very eye-catching brand name and package. * It has sufficient manufacturing plant with the capacity to meet the demand. * Strong, Skilled, Professional & Dedicated Manpower; * Strong Administration * Latest, Modern & High Qualified Machinery * R&D will have Done Regularly * The Decisions will make into Action without Any Delay * We are offering the affordable price than other competitor’s firm * No side effect of our product. 3. 2 Weaknesses * Lack of much experience * Needs more time to research on consumer behaviors We need to follow more different marketing strategies for different demographical situation * Loren fairness soap is mainly made for female * Lack of brand Establishments. 3. 3 Opportunities * Approved by Bangladesh Standard Testing Institute (BSTI) * Certified by London Soap Research Institute (LSRI) * Huge Demand for quality fairness and anti-bacterial soap. * The market is large in this business. * Chance of introduce it in rural market & export it in international market in future. 3. 4Threats * Political Instability * Highly competitive market * Govt. duty & fees * Availability of quality & low priced raw materials Upcoming competitors * Taste of consumers changes rapidly Chapter – 4 “Marketing strategy” 4. 1 Target Market Silk Soap Industry ltd. has different types of target market. My company produces two types of soap, our target markets are also different:- FAIRNESS SOAP: Every woman wants to be looking beautiful. In Bangladesh and sub-continent every woman wants to be fair. It is a psychological advantage of this product. Now in the market just two types of fairness soaps are available. But those entire products prices are very high. Our product will available in standard price. So it can use all class.

But my comany main target is High middle and High-class family. My company looking for good quality but not high profit. I hope this soap will be the best soap for beauty seeking women. ANTI-BACTERIAL SOAP: EXIT anti-bacterial makes for all person of any age. So, its market is larger than Fairness soap. Every person is my company target. Male, female and children can use this soap. It is an international standard soap. Peoples who are conscious for their health, our anti-bacterial soap are for them. So my company’s main target is the cities of the country. 4. 2 Market Segmentation “Silk Soap Industry” expects large number of target markets.

So, I have segmented our total market into different segments. We divided our target markets two different segments. First, Geographic and second is Demographic segmentation strategy. Geographic segmentation: In the first time I will introduce my soaps in Bangladesh. I reached my company products every cities and district of the country. As my company produce international standard soap and will export my company products in different countries. Demographic segmentation: From the segmentation strategy we have segmented the market as following. LOREN Fairness soap Age: Especially made for female. From 15-30 years.

Gender: Specially made for female skin; also male can use. Income range: my company soap is for the high middle class and high-class people. But our rate is not high from the other. Occupation: Generally College and Universities women’s will use our soap widely. EXIT Anti-Bacterial Soap Age: For all Gender: Male and Female Use: EXIT soap is content anti-bacterial formula. So home and office everywhere people can use this soap for protection. Occupation: all of them 4. 3 Pricing Basically, a price needs to review four factors to arrive at a price: pricing objectives, cost, competition and demand.

Along with company pricing objectives, cost, and demand we will give emphasis on competitor’s price while setting our one. As fairness and anti-bacterial soap market in our country comprising a large number of active firms like lux, Tibbet and meril, Keya,sandalina etc. ,the competition is fierce. On the other hand, among the two principal pricing strategies, skimming and penetration, company are going to adopt penetrating pricing that means our products price will be relatively low during the initial stage to penetrate the market quickly and deeply in order to attract a large number of buyers quickly and win a large market share.

High price elasticity of demand of the beauty and fairness cream is another reason why we are adopting penetration strategy. Internal Factors * Marketing mix strategy * Marketing objectives * Marketing costing * Organizational consideration. Price decision External Factors * Competitors price * Market and demand * Environmental factors * Economic factors Product| Price (In Taka)| Loren fairness soap (120 gm)| 17| Exit anti-bacterial soap (100 gm)| 14| 4. 4 Distribution Distribution strategies are concerned with the flow of goods and services from manufacturers to customers.

My company going to use indirect distribution channels means our distribution process will involve the use of different intermediaries such as wholesalers and retailers to reach the optimal number of customers in a timely manner at the lowest possible cost while maintaining the desired degree of control. Company channel strategy is to use intensive distribution to have company product Loren fairness Soap and Exit anti-bacterial soap sold through each and every retailer stores of the country. Time to time we will also evaluate our channel-members based on their performance and will modify the process if needed.

To resolve any kind of conflict, if arise, we will nominate any of company employee to act as a diplomat among channel members. We will also welcome the frequent formal interaction with the channel members to develop an appreciation of each other’s perspectives. And all distribution activities will be conducted according to our distribution channel. 4. 5 Positioning Positioning is the act of designing the company’s offering and image to occupy a distinctive place in the target market’s mind. Such as create lots of awareness about the product.

I have to position of company brand “Loren fairness and Exit anti-bacterial soap” by the desire of the target consumer: “Loren fairness and Exit anti-bacterial soap” is a brand which is different from another fairness and anti-bacterial product. In the positioning stage I am thinking about value proposition. Value proposition is the way where I reflect the core things what I will provide as per as the desire of the target consumer. So the positioning should be such where the core things will be reflected. 4. 6 Marketing Communication

Silk soap industry will use personal presentation by the firm’s sales force for the purpose of making sales and building customer relationships. Integrated marketing communications will help the Company to produce better communications consistency and greater sales impact. This company will reinforce the brand name and the main points of product differentiation, specially our exclusive varieties of flavor by integrating all messages in all media. Research about media communication patterns will help Loren and Exit soap’s advertising agency choose appropriate media and timing to reach prospects before and during product introduction.

There, after advertising will maintain brand awareness and communication various differentiation messages. It leads to a total marketing communication strategy aimed at showing how the company and its products can help customers solve their problem. To attract, retain and motivate channel partners for a push strategy. It will also use trade sales promotion to channel partners. 4. 7 Product Management A product consists of all the tangible and intangible (goods, service or idea) characteristics provided in an exchange between a seller and a buyer. People buy product for the benefits and satisfaction it gives.

There are four kinds of products, which used by organizations in producing goods and services or in carrying out their operations are industrial products. Specific items: my product is soap and I will manufacturing two types of soap. Fairness and Beauty these two types of soap we are manufacturing. Both the soap weighs differently. The fairness soap is 120 gm and the beauty soap is 100 gm both the soap will be manufactured in the usual methods. Production methods: The production methods include what would be the cost of an individual soap. The cost includes labor cost, machinery cost, raw materials and some other elated costs. Stages of development of the products: New products are vital for a firm’s long-term success. Developing new products with high growth potential is no simple task. Around 1,000 new products are brought to the marketplace each year in our country, but many of them fail. So our products will be developing from the beginning stage Business that fails to develop new products may limit their potential for growth and eventually become vulnerable to competitors. I have considered a new product to be one that a particular firm offers for the first time, whether or not similar products exist in the marketplace.

So our products will compare will the competitors from the beginning and we will emphasize specially in quality. I will also emphasize on pricing. 4. 8 Promotion I will choose most effective media with reasonable cost for advertisement. We will prefer- Banner:- It will be effective for informing peoples about my company soap. I will set banners in front of markets and other public places, where a large number of peoples will be able to know about my company soap. Newspaper/ Magazine: – I will publish my company advertisement regularly to the newspaper, and four days in a month to the magazine.

Before any occasion I will use expensive portion of newspaper for advertising purpose. Broadcast Media: – I will broadcast about my company products in radio, and television. I will provide all of information in theInternet. Signs: I will give my company products information on the store of the towns and cities. I will use billboards on the side of the road and through ad on the cabs of the cities. I will give sponsors of the Charity programs, Cricket matches, and fashion shows. I will also take part in the Trade shows, like Dhaka International Trade Fair, Chittagong International Trade Fair, and

Khulna International Trade Fair. That will be very helpful to reach our product to the consumers. And these way consumers will be able to know about our products quality. 4. 9 Marketing Research By conducting research Silk soap Industry has identified the specific features and benefits that the target market segments value. Feedback from market tests, surveys, and focus groups will be helped to develop the product. Silk soap Industry is also measuring and analyzing customer attitudes towards competing brands and products.

Brand awareness research will help us determine the effectiveness and efficiency of our messages and media. Finally, This Company will use customer satisfaction studies to gauge market reaction. Chapter – 5 Action Program Following are summary of the action programs I will use during the first six months of next year to achieve our stated objectives. JANUARY: In first week on January I will make an announcement on TV & Internet for the people, “A new Fairness soap is coming soon only for ladies &anti-bacterial soap for all. ” The announcement will continue till second week.

In third week I will give another announcement “Girls Do you want soft and fair skin? A Fairness soap is coming soon only for you” and it will continue to end of January. At this time I will shoot my company first visual advertisement with a famous celebrity. We will begin Tk. 10, 00,000 trade sales promotion campaign to educate dealers, consumers & create excitement for the product. I will train some people about the product and make some groups, who will go beauty parlors and markets for the promotion. They will educate the beauty parlors workers and keep contact with the dealers. FEBRUARY:

In first and second week of February before launching the product on 14th Feb, I will give some voluntary product on beauty parlors, colleges and universities. In this time I will educate my company print and media partner about the product. I will start an integrated print, radio and internet campaign targeting the dealers and consumers. The campaign will show how the fairness Soap to glow the skin in quick time of period without any side effect on skin and also show how anti-bacterial soap remove bacteria within 10 seconds from body, better and quicker than any other fairness soap available in the market.

In first week of February I will show my company first visual advertisement on TV, radio and internet. On 14th February I will arrange the launching party in a five star hotel. As the day is the “Valentine Day” I will arrange a beauty contest. I will find “Miss Valentine” from the launching party and I will give her a crown and price money and one year free contract of the product. MARCH: In March we will continue our multimedia advertising. We will Chose one or two famous female model or TV or movie actress, and bring them under the roof of our product, who will do promotion for the product.

At the end of the month we will do a newspaper contest to know how our product is accepted to our consumers. We will ask “Why you like the product” write your opinion in hundred words and give a packet of the product and 100 lucky winners will get one year free product. APRIL In first week of April i will give the prize of the newspaper contest. In the middle of the April I will try to get title sponsorship of beauty contests like “Miss Bangladesh” If it is not possible I will start a beauty contest on any of the popular TV channel. The contest will continue whole April MAY:

In the end of the may I will End Company contest and give the prize to the winners. I will give them money and one year free product. I will give the first winner crown and bring her under the roof of company product. I will continue company advertising on print and television. JUNE: In June I will give company consumers some benefits to increase the sale again. I will give them offer like “If you buy a Loren fairness soap and Exit anti bacterial soap, you will get Silk mini pack shampoo free. I will do an attractive advertisement with the winner of the beauty contest.

In addition, I will mark & analyze the consequences of consumer satisfaction by surveys for future promotions & getting feedback of product. In the end of the June I will plan to produce a new version of the products with different features & flavors. Chapter – 6 Financial projection/ Analysis I have projected to sale 80, 50,000 taka in the first year of my company operation with an average whole sale price of 16. 10 taka per unit taking 110 gm as base. Particulars| Amount (Taka)| Projected First Year Sales -| 80,50,000| Projected First Year Sales in unit| 5,00,000|

Variable Cost| 45,00,000| Fixed cost| 47,00,000| Variable cost per unit| 45,00,000/5,00,000 | Per Unit Whole Sale Price| 16. 10| * Unit Cost = (Variable Cost + Fixed Cost) / Unit Sales = (4500000 + 4700000) / 500000 = 14000000 / 500000 = 18. 4 We intended to earn a 13 percent mark up on sales. * Mark up Price = unit cost / (1 – Desired Return on Sales) = 18. 4 / (1 – . 13) = 21. 14 = 21 Tk * Break Even = Fixed cost / (per unit sales price – per unit variable cost) = 4700000 / (16. 10– 9) = 661972 units Financial projection/Analysis for Loren fairness soap:

Year | | 2011| 2012| 2013| 2014| | | | | | | Expected Market Share| | 22%| 32%| 45%| 65%| Per Unit Price| | Tk 17| Tk 17| Tk 17| Tk 17| Expected No. Of Packets Sold| | 5,000,000| 7000000| 92000000| 11000000| Sales Revenue| | 300,000,000| 420,000,000| 5,520,000,000| 660,000,000| (-) Goods Purchase| | 174,250,000| 177,250,000| 181,250,000| 186,250,000| (-) Import Duty/ Tariff (2%)| | 3,485,000| 3,545,000| 3,625,000| 3,725,000| Gross Margin| | 122,265,000| 239,205,000| 5,335,125,000| 470,025,000| (-) Expenses:| | | | | | Selling & Admin. Expenses| | | | | |

Salaries & Wages| | 1,050,000| 1,050,000| 1,050,000| 1,050,000| Rent Expenses| | 500,000| 500,000| 500,000| 500,000| Utilities| | 110,000| 110,000| 110,000| 110,000| Sales Commission (1%)| | 3,000,000| 4,200,000| 55,200,000| 6,600,000| Transport & Distribution| | 5,000,000| 5,000,000| 5,000,000| 5,000,000| Insurance Premium| | 10,000,000| 10,000,000| 10,000,000| 10,000,000| Interest on Bank Loan| | 4,000,000| 4,000,000| 4,000,000| 4,000,000| Advertisement:| | | | | | Newspaper Ad. | | 4,000,000| 6,000,000| 8,000,000| 10,000,000| Television Ad. | 22,000,000| 42,000,000| 62,000,000| 82,000,000| Billboards and Neon Signs| | 7,000,000| 12,000,000| 17,000,000| 22,000,000| Vehicle Ad. | | 7,000,000| 9,000,000| 11,000,000| 13,000,000| Mobile Team/ Meeting| | 600,000| 800,000| 1,000,000| 1,200,000| Total Selling & Admin. | | 64,260,000| 94,660,000| 174,860,000| 155,460,000| Net operating Income before tax| | 58,005,000| 144,545,000| 5,160,265,000| 314,565,000| (-) Income Tax (10%)| | 5,800,500| 14,454,500| 516,026,500| 31,456,500| Net operating Income after tax| | 25,00,000| 30,00,000| 50,00,000| 70,00,000|

Financial Projection for Exit Anti-bacterial Soap: Year| | 2011| 2012| 2013| 2014| | | | | | | Expected Market Share| | 22%| 32%| 45%| 65%| Per Unit Price| | Tk 14| Tk 14| Tk 14| Tk 14| Expected No. Of Packets Sold| | 3,200,000| 5500000| 8000000| 8000000| Sales Revenue| | 192,000,000| 330,000,000| 480,000,000| 480,000,000| (-) Goods Purchase| | 174,250,000| 177,250,000| 181,250,000| 186,250,000| (-) Import Duty/ Tariff (2%)| | 3,485,000| 3,545,000| 3,625,000| 3,725,000| Gross Margin| | 14,265,000| 149,205,000| 295,125,000| 290,025,000| (-) Expenses:| | | | | | Selling & Admin.

Expenses| | | | | | Salaries & Wages| | 5,050,000| 5,050,000| 5,050,000| 5,050,000| Rent Expenses| | 500,000| 500,000| 500,000| 500,000| Utilities| | 110,000| 110,000| 110,000| 110,000| Sales Commission (1%)| | 1,920,000| 3,300,000| 4,800,000| 4,800,000| Transport & Distribution | | 5,000,000| 5,000,000| 5,000,000| 5,000,000| Insurance Premium| | 10,000,000| 10,000,000| 10,000,000| 10,000,000| Interest on Bank Loan| | 4,000,000| 4,000,000| 4,000,000| 4,000,000| Advertisement:| | | | | | Newspaper Ad. | | 4,000,000| 6,000,000| 8,000,000| 10,000,000| Television Ad. | 22,000,000| 42,000,000| 62,000,000| 82,000,000| Billboards and Neon Signs| | 7,000,000| 12,000,000| 17,000,000| 22,000,000| Vehicle Ad. | | 7,000,000| 9,000,000| 11,000,000| 13,000,000| Mobile Team/ Meeting| | 600,000| 800,000| 1,000,000| 1,200,000| Total Selling & Admin. | | 67,180,000| 97,760,000| 128,460,000| 157,660,000| Net operating Income before tax| | -52,915,000| 51,445,000| 166,665,000| 132,365,000| (-) Income Tax (10%)| | -5,291,500| 5,144,500| 16,666,500| 13,236,500| Net operating Income after tax| | 27,00,000| 32,00,000| 49,00,000| 75,00,000|

Graphically represent financial projection of fairness soap (within 4 year): Graphically represent financial projection of anti-bacteria soap (within 4 year): Chapter – 7 Implementation My planning is that tight control measures to closely monitor quality and customer service satisfaction. This will enable us to react very quickly in correcting any problems that may occur. Other early warning signals that will be monitored for signs deviation from the plan include monthly sales (by segment and channel) and monthly expenses.

We are planning to control our market by penetration pricing also I have planning to control company market by creative sales promotion. Chapter – 8 Appendix Parts Appendix COST OF TV ADVERTISEMENT: This company ad is a 20 second ad which we will show 2 X 30 X 3=180 times in three channels a month. The cost of displaying the ad in one transmission is given below: Average Advertising cost For the Three Channels:| Just before NEWS-| 20 seconds duration-| -8000 tk| In mid break of any Program/Film-| 20 seconds duration-| – 5000 tk| The ad will be displayed on the ATN for per month:

So, the cost will be— 42 times a week for 1 month: Total = 42 times X 4 weeks =168 times 1st week: (Just before NEWS) Total cost on 1st week= 7 times X 3 channels X 8000 =168000 1st week: (In mid break of any program/Film) Total cost on 1st week = 7 times X 3 channels X 5000 =105000 2nd week: (Just before NEWS) Total cost on 2nd week= 7 times X 3 channels X 8000 =168000 2nd week: (In mid break of any Program/Film) Total cost on 2nd week= 7 times X 3 channels X 5000 =105000 3rd week: (Just before NEWS)

Total cost on 3rd week = 7 times X 3 channels X 8000 =168000 3rd week: (In mid break of any Program/Film) Total cost on 3rd week = 7 times X 3 channels X 5000 =105000 4th week: (Just before NEWS) Total cost on 4th week = 7 times X 3 channels X 8000 =168000 4th week: (In mid break of any Program/Film) Total cost on 4th week = 7 times X 3 channels X 5000 =105000 Total cost for Television Advertisement 🙁 168000X4 + 105000X4) =109200tk. NEWSPAPER ADVERTISEMENT: Our target markets are generally the urban women with sound income.

Most of our target markets are educated & usually read newspaper. The main advantage of newspaper is the high degree of market coverage. It can cover a high area at a relatively low cost. We are going to give our ad in “PROTHOM ALO” because “Prothom Alo” is the most read daily newspaper in our country. We are also going to give our ad in “NAKSHA” of “Prothom Alo” on Tuesdays. COST For “Prothom Alo” per day cost is calculated as follows- 5 column (width) X5” (height) X 1000Tk = 25000Tk For “NOKSHA” 3 column (width) X 3” (height) X 600Tk =5400Tk

Per months Budget For “PROTHOM ALO” 25000 TK X 4 days (on Fridays only) = 100000 TK For “NOKSHA” 5400 TK X 4 days (on Tuesday) = 21600 TK Total News Paper cost 121600 9. Conclusion “First of all I think my company is a new and unique organization in our Country and I hope that my company will touch to success within very few time or without any types of hesitation . my Company’s every employees are very professional and also highly skilled. They take and implement various decisions depending on their previous knowledge and experience.

I will invest my maximum effort to my company for the success. At the same time will provide high quality full products or service better than other company to the customer. 10. Reference I got a lot of help from these books. So I am really grateful to the authors. The names are given below: * Principles Of Marketing (11th edition) – Philip Kotler & Gary Armstrong * Principles Of Marketing – Lamb Hair MC Daniel * Marketing Management (13th edition) -philip Kotler, Kevin lane * Other Information will collect from Internet and my won knowledge.

Lyceum of the Philippines University General Trias, Cavite Marketing Plan Submitted by: Alvarado, Jovelyn Austria, John Kerwin Bayya, Mark Angel Blasco, Thyrone Luigi Casimiro, Ardee Darren Casitas, Vergel Ramirez, Jonathan Rosella, Julius Tanael, Joanna Terrobias, Juan Paolo Villanueva, Neill Joshua I. Executive Summary As a requirement for the marketing subject, we, the third year students made this marketing plan regarding a souvenir shop.

We chose to name the shop, Treasure Chest, because treasures are connected with the Pirates trade mark of the Lyceum of the Philippines University. Treasure Chest will be located in the ground floor of the new building of LPU-Cavite Campus, near the Bookstore and will operate this coming June 2013. Treasure Chest specializes in an assortment of high-quality merchandise ranging from customized t-shirts, varsity jackets and different accessories. Since located inside a private university, Treasure Chest caters from middle to upper class students, faculties and visitors.

What differentiate our company from other specialty shops are our “one-of-a-kind” product line and a number of exclusive, proprietary products we designed ourselves and aside from that Treasure Chest will be also the first and only souvenir shop that will be established inside the Lyceum of the Philippines University- Cavite Campus. Treasure Chest plans to generate moderate income in the year one for the business is still growing. We also plan to develop our company website and hire individuals to help us design more for the business in the coming years.

We also plan to broaden our product line if the customers have easily accepted our business. II. Current Marketing Situation Market Treasure Chest target market will be all of the people within the university. To be exact, market will be comprised of the groups from: * Generation Z – This is composed mainly of high school students and lower college year level which are born with complete technology. Because they are more into internet especially the social networking sites, they also know the trend nowadays of customized and specialized clothing.

They’re smarter, and they’re demanding we take them seriously as major consumers. * Generation Y – This is composed of mostly college students in the second to fourth year and just like the generation Z, is still into Internet world. They also tend to engaged into online shopping, that’s why a website will be developed in the next year to cater them also. They are more ethnically diverse and is experiencing tremendous growth in spending power * Generation X – this group is composed mainly of the faculties in the younger years and still we consider them as markets for they are also following the trend of nowadays.

Some are married also and will be having children so they can buy our product not for them but for their child as a gift which mostly in the generation Z. As a souvenir shop located inside a private university with a population of almost six thousand, we are expecting to have a market from middle to upper class and consisted of a mix of male and female customers. These are mostly students, faculties and also the visitors. They are educated and find “word-of-mouth” and referrals from friends and colleagues extremely significant when making decisions.

Even though of the economic situation nowadays, research have found consumers have continuously been focused on how they look, how they dress and are they still in for the fashion. Treasure Chest will sell affordable products but not sacrificing the quality. We ensure to provide products that will guarantee customer’s satisfaction Product Mix Treasure Chest offers an assorted ensemble of t-shirts, varsity jackets and other accessories designed to fit the client’s personal style. Our souvenir shop also incorporates exclusive proprietary products made by us. What started out as a hobby for us soon evolved into a promising business venture.

After meeting we realized that we shared interests and a similar hobby. We have assembled an array of talented and approachable vendors, Joanna Tanael and Jonathan Ramirez along with skillful craftsmen, Kerwin Austria, Thyrone Blasco and Ardee Casimiro and business entrepreneurs who will showcase a unique product line that will embody Treasure Chest’s tag line “Pirata ako! Sa damit, gamit at iba pa”. The following are the product line offered by Treasure Chest: * T-shirts – Our offering of specialized and customized garment to reflect a university college and individual style will surely enhance the customer’s wardrobe.

We use graphic imagery along with the help of great artist, Juan Paolo Terrobias. Price in this product ranges from 150. 00php to 350. 00php. * Varsity Jackets – The popular varsity jackets will be even more popular because of the newest and coolest design offered by Treasure Chest in addition to extraordinary fabrics. Price in this product ranges from 300. 00php to 500. 00php * Accessories – Our product line of accessories is a collection of modern accents that customers can certainly connect with. This includes; * Ballers – Price ranges from 20. 00php to 50. 0php * Ballpen – Price ranges from 10. 00php to 20. 00php * Pin – Price ranges from 50. 00php to 100. 00php * Key Chain – Price ranges from 20. 00php to 35. 00php * Caps – Price ranges from 100. 00php to 300. 00php Sample of the products we offer are displayed on the next page. Competition Specialty gift retailers have the ability to distinguish themselves merely by the types of products and/or services that they offer and Treasure Chest is no exception. Even though this is the first souvenir shop inside the university and there is no competition inside.

We still have identified and conducted an in-depth analysis of two of our competitors located near the campus. To aid in a more effective analysis, Neill Villanueva and Vergel Casitas visited all two competitors to observe pricing structures, company image, traffic-flow, location and range of service. The analysis proved to be valuable to Treasure Chest in identifying our competitive edge, areas of uniqueness, and marketing “niche. ” * SM City Dasmarinas – SM City Dasmarinas is a Supermall located along Governor’s Drive, Brgy. Sampaloc 1, Dasmarinas City, Cavite.

The mall attracts a daily pedestrian count of 400,000 during weekends and 100,000 during weekdays, making it one of the most profitable and successful SM Supermall built and operated by the leading mall developer. As a mall many stalls inside tend to offer the same product line as we offer. Their target market varies, from baby boomers to generation z. Price ranges from 100. 00php to 1000. 00php. Hours of operation are Monday through Sunday 10 a. m. — 9 p. m. * Robinsons Place Dasmarinas – is a shopping mall owned and operated by Robinsons Land, the second largest mall operator in the Philippines.

It is the 13th mall opened by Robinsons and the 2nd mall in Cavite province. Located within the corners of the busiest highways in the province, this 3-level shopping mall has over 150 shops, dining outlets, entertainment facilities and service centers. Across the structure is its rival mall, SM City Dasmarinas. And just like SM, it has the stalls that can offer the same product as we do and market also varies. Robinsons operates from Monday to Sunday, 10:00 am to 8:00 pm. Distribution Treasure Chest sells t-shirts, varsity jackets and accessories that is customized and personalized by us.

Raw materials such as t-shirts and plain jackets will be from a known supplier, Blue Corner, while accessories will be from a novelty shop and with our creativity will create new and interesting products. Treasure Chest is engaged in a zero-level distribution wherein we directly sell what we had manufactured. Word of mouth will be used, so that networking through family and friends will help inform new and existing customers about our products. III. Opportunity and Issue Analysis Strengths * Treasure Chest is the first and only souvenir shop located inside the university. We offer unique and one of kind souvenirs, designs is especially made by us. * Some accessories are handmade and is surely to be incorporated with quality. * We are composed of creative staff and can work in harmony. * We have a good educational background and can handle a business successfully because of the quality education we had received. Weaknesses * The range of our products is considered small in relation to more established businesses. Yet these items are engaging and personable. The location of the store cannot be easily seen from afar and is too far from the entrance that visitors might not notice it. * Our schedules might not be suitable for operating the business. Opportunities * Specialized souvenirs such as t-shirts are rapidly increasing in popularity. * Teens nowadays demand for a high quality product that is still in line with the current trend and fashion. * Internet is almost available for all and we can use this for promoting our product Threats * As the first and only souvenir shop inside the campus, competitors might emerge suddenly. Due to unstable economic conditions, prices might also change drastically especially from our supplier. * The current trend may shift unexpectedly. * The business will be not be operational in all days especially holidays. IV. Objectives In the following years of Treasure Chest’s operation, we are planning to add more product line so customers would not be looking for the products we don’t offer. A website will be also developed within the first year of operation to help us promote our product more aside from the word-of-mouth.

We are also expecting to have an increase in the percentage of our returning customers to 5% and at the same time, also increase the number of new customers. The figure above is projected sales forecast. We can see that the shop increase in sales during December because of the gift –giving practice during Christmas, many students chose to buy items from Treasure Chest and make them as a gift. We can also see that there is declining sales in every end of each semester for most of students are on their vacation and will go to school seldom.

In this month, the sales are mostly from the visitors who enter the school for inquiry purposes and enrolment. Treasure chest expects to generate moderate income for the first year of operation and gradually increase the profit in the following years. Another objective of the business is to increase the customer’s satisfaction and lessen their complaints by attending to their needs. V. Marketing Strategy Although Treasure Chest products are high-end and stylish, our pricing structure remains affordable and in-line with other specialty gift retailers.

Our pricing structure is also based on the value the customers place on these products. We will promote the product by first introducing it to our friends and let the word-of-mouth to happen. Promos will be also available like the discounts and buy 1 take 1 for some slow moving items so that we can showcase new products. Moreover, we can advertise using different social networking sites like the facebook and twitter for free. Another thing is that, establishing a rapport and connection with the customer directly affects a business’ sales.

That’s why a suggestion/comment box will be available to customers near the shop’s entrance. This provides Treasure Chest with direct customer feedback concerning areas of improvement or enhancements. Training staffs also are in the list for it will help on how they communicate with customers properly and how to build a good sound relationship with them. This training will also make staffs to be more helpful and personable assuring customers’ satisfaction and exceeding their expectations and needs. For the sales to increase, Treasure Chest needs to stay close to the product and market trends.

Treasure Chest will continue to develop creative and stylish products that will continue to strengthen our brand positioning and company image. VI. Actions Plan 1. Store Location Confirmed * Done on May 4, 2013 * By Kerwin Austria * 0. 00php 2. Grand Opening Advertisement * Done from May 27, 2013 to June 8, 2013 * By the whole company * 1500. 00php 3. Advertisement thru Social Networking Sites * Done from June 9, 2013 to June 9, 2015 * By Ardee Casimiro and Julius Rosella * 0. 00php 4. Train Staffs * Done from July 13, 2013 * By Juan Paolo Terrobias * 7500. 00php 5.

Develop creative and new stylish products * Done from August 21, 2013 to December 31, 2014 * By Joveln Alvarado and Thyrone Blasco VII. Projected profit-and-loss statement The profit and loss figures show Treasure Chest balances on the knife edge of profitability. The owners are aware that they may forego salaries in any given month to insure profitability and positive cash balance. VIII. Controls As Treasure Chest operates, all the members are responsible in monitoring the plans we had made. Controlling should be done in order to ensure that the business still moving to achieve its goals.

When problem arises, we should determine the ways on how to solve it so if the same problem happens again, we can easily top it. Standards will be also set and will be followed by measuring the employee’s performance. For instance, our craftsmen must maintain a rejection rate of not more than 2% and must complete their work within a week of the assignment. After evaluating the employee’s performance, taking corrective actions will be the next step to enhance poor performance and to still establish a better working quality. Customers are also one of the important factors.

With the help of the comment box, we will be able to know their feedbacks, comments and suggestions, we can also adjust our marketing plan with the results of feedback thus increasing the guest satisfaction and minimizing our cost, for example a newly product we release is not popular on them. Actual sales in the target market are compared to the marketing plan projections to see if any changes need to be made. If sales are down, then further market research needs to be done to see why the target audience is not responding to the marketing. Budgeting will be also done to minimize spending and maximize profitability.

McBride is a financial service provider that will handle mortgage application processes for its clients. Its target market are mortgage applicants from a five-state area including Idaho, Montana, Wyoming, North Dakota, and South Dakota. Its short-term objectives are to break even within the first six months of operations and to become profitable within the first year. It has an available online interface upon launching which will allow clients to place orders, submit necessary documents, and make payments over the internet. The overall marketing strategy is to use the most appropriate media given strict financial constraints to gain maximum exposure for McBride to potential clients.

Target Market Analysis

Primarily, there are several groups identified as potential customers in the market where the product will be made available. These groups include professionals and retirees purchasing either a primary or secondary residence, and families and/or individuals purchasing recreational properties. The SIVA can be used to create a criteria of what types of marketing vehicles should be used for this McBride’s target market (Guiltinan, 1996). In any of the groups mentioned above, what stands out as a common characteristic is clients’ the lack of available time to go through the mortgage application process on their own.

Many clients are also confused with the many procedures that they have to go through and so would rather opt not to be troubled by such procedures and just pay someone else to do it for them. This underscores the most outstanding expectation that clients will be looking for in the service: convenience. Therefore, the marketing strategy must directly and strongly convey that this expectation will be met and exceeded. Next, the habits of potential clients when it comes to collecting information should be considered. The potential clients for the service are diverse and they can be found everywhere from major city areas, to more remote places of work such as universities, factories, and farms.

Conventional mass media such as television, radio, and newspapers have the ability to cover such vast areas. Although diverse, one common denominator of a big chunk of the target market is that they are professionals, and many such individuals travel a lot from state to state on business matters. Hence, places such as airports, convention centers, and other areas where there is a sizeable level of commerce are good venues to launch focused ad campaigns. Lastly, clients who are seriously considering taking up a mortgage would usually canvass through local realtors for available property.

This makes such realtors exceptionally important contacts to make linkages with. In making decisions as to what marketing strategies to use, what must factor in are the financial requirements of the company as well as the expected spending power of potential clients. An inference that can be drawn from the potential market is that they would not be extremely affluent because if they were, they would be better off buying property on cash basis. Therefore a minimal budget should be considered in selecting strategies to make the company goal of breaking even more achievable.

Lastly, the target market’s access to the service should be considered in order to limit strategies only to potential clients who have access to the product. However, since the product is available online aside from having strategically situated offices in target states, there is little to no value to trying to find limiting agents based on market access as there probably are none.

Marketing Vehicles and Advertisement Content

Based on the target market analysis, four vehicles are selected to drive the marketing strategy for McBride. These are local television, radio, and newspapers, information handouts in airports and tourist attractions, and linkages with local realtors. Local T.V., radio, and newspapers were selected as opposed to more popular national channels since they are more cost effective given the target which is geographically limited (Kaiman, 2004). In such media, all of the target groups would be represented and the focus on convenience will be greatly stressed as the advertisements’ theme (Kaiman, 2004).

For airports and tourist destinations where there will be available handouts to capture potential markets composed of businessmen and traveling retirees, the content of the handouts would be specialized depending on the expected market. For businessmen, the content would be focused to how much more they can achieve when they do not have to busy themselves with the details of mortgage applications. For retirees, the focus would be the relief brought by hassle-free applications in getting the retirement house they’ve always wanted.

The most challenging in terms of acquisition would be the realtor linkages since McBride would have to compete with other companies who are also courting such institutions. However, these linkages are also very significant because realtor clients represent the filtered market that the business is targeting and this filtered market are those that are most likely to avail of the product (Reimonds & Yenks, 2000). Hence, measures to obtain support from such institution should be sought with ample effort and spending.

Conclusion

The marketing strategies available to McBride can effectively gather the exposure it needs in order to obtain sufficient market share. The minimal budget allotted for marketing is sufficient to sustain the devised strategies. It is expected that McBride will be able to reach its short term goals with the use of suggested marketing strategies.

References

Guiltinan, J. (1996). Marketing Management: Strategies and Programs. McGraw Hill/Irwin

Reimonds, A. & Yenks, L. (2000). Modern Marketing for Contemporary Businesses. N.Y.: Doubleday

Kaiman, H. (2004). Current Issues in Marketing Management. London: Gray & Tiller.

The 4P’s Of (i)Product •Nike offers a wide range of shoe, apparel and equipment products, all of which are currently its top-selling product categories. •Nike started selling sports apparel, athletic bags and accessory items in 1979. Their brand Cole Haan carries a line of dress and casual footwear and accessories for men, women and children. •Nike’s foremost focus is athletic footwear and apparels designed for sports and everyday usage with the brand name. •The production facilities are located close to the raw material to have low labor prices. New product offerings under the name of brand include sport balls, timepieces, eyewear, skates, bats, and other equipment designed for sports activities. •The most famous product categories of Nike includes running, basketball, cross-training, outdoor activities, tennis, golf, soccer, baseball, football, bicycling, volley ball, wrestling, cheerleading, aquatic activities and other athletic and recreational use. •Moreover, they also utilize the auxiliary bodies to sell te sports related raw materials and products including Cole Haan Holdings, Nike Team Sports, and Bauer Nike Hockey. ii)Price •Nike’s pricing is designed to be competitive to the other fashion shoe retailers. The pricing is based on the basis of premium segment as target customers. Nike as a brand commands high premiums. Nike’s pricing strategy makes use of vertical integration in pricing wherein they own participants at differing channel levels or take part in more than one channel level operations. This can control costs and influence product pricing. •The company has designed its pricing structure in a way to make it competitive to other shoe sellers. The price of the products is variable depending on the type and the size for example a comfortable and good pair of shoes would cost from 70 to 150 dollars. (iii)Placement •Nike shoes are carried by multi-brand stores and the exclusive. •Nike has its individual stores and also available at major malls and departmental stores selling shoes all over the globe. •They have more than 20000 retailers in United States and also in other 200 countries. •The companies also sell its products through individuals, auxilianes and licensees. The company has its own production units, customer services and operational units in all over the world. •Nike sells its products through independent distributors, licensees and subsidiaries. Independent distributors need not adapt to local pressures because the 4Ps of marketing are managed by distributors. (iv)Promotion •The company has used electronic media (commercials, official website of Nike and newspapers) to promote their brand. •Promotion is largely dependent on finding accessible store locations. It also avails of targeted advertising in the newspaper and creating strategic alliances. Many well known athletes have also worked for the advertisement of brank like Brazilian Soccer Team. •Nike also sponsors events such as Hoop It Up and The Golden West Invitational. Nike’s brand images, the Nike name and the trademark swoosh; make it one of the most recognizable brands in the world. •Nike’s brand power is one reason for its high revenues. Nike’s quality products, loyal customer base and its great marketing techniques all contribute to make the shoe empire a huge success. •The brands swoosh logo and image played an important role in its advertisement.

1. Introduction Today computer industry has become one of the most attractive industries both in terms of growth and viability. It is also considered as one of those industries where it is so hard to survive for the companies in it. The prevalence of the likes of HP, Dell Inc. and IBM has resulted in the fierce competition in this industry. These abovementioned companies struggle to win more market share or to be the best player in the industry. These report analysis situation analysis, SWOT analysis of Dell Inc. long with the environmental factors which could be potential influence on its current and future business operations. . It also illustrates the company’s future objectives and also marketing strategies set to achieve those objectives and to ensure that the company is one of the industry leaders. 2. Background It was initially named as “PCs Limited”, and then converted into the Dell Company which was named after the Michael Dell, who founded the company in 1984, when he was a student at the University of Texas at Austin.

That’s Michael Dell who came up first with the idea or belief that selling personal computer systems directly to customers enables them to better understand customers’ needs and helps them to offer the best solutions to meet those needs. It was in 1985 when M. Dell’s company first manufactured their initial computer which was sold for US $795. Dell’s “PCs Limited” company would assemble computer units based each individual’s needs, orders or selections. That would give customers pretty much affordable price and more convenience than having to assemble those components on their own.

Despite the fact that it wasn’t the first company to apply this method, it was almost the first to accomplish it. Even in its first year of trading, the company managed to reach pretty much admirable sales, approximately amounted to $73 million. In 1988, the company was given the name of the Dell, founder of the company. Following 2 years, they decided to phase out their direct selling method, and start using warehouse clubs or computer stores to sell their computers. Realizing that it didn’t bring any success, they got back to their more effective direct-to-consumer model.

In 1996, the customers were offered another convenience, which is a website through which consumers could buy the company’s products virtually. In 2002, the company expanded through entering the other markets such as television, audio players and printers. Since 2003, the company has been operating under the name of Dell Inc. (Michael Dell, 2012) 3. Current situation and business performance Since its emergence in 1984, the company has not just struggled to survive in competitive computer market but also been able to dominate the market to some extent.

Now it’s not just a company with $ 1000 capital as it used to be initially, but has turned into a huge multinational computer technology corporation which is currently producing top-quality lap-tops, netbooks, PCs, printers, scanners and other computer-related products. Dell Inc. has been growing remarkably in terms of both customerbase and acquisitions. Atpresent it employs approximately 105000 people around the world. The CAO of the company is Michael Dell, American businessman. Dell Company is famous mainly for its ability to apply direct-sales model and its “configure to order” approach.

Specifically, it can configure individual PCs based on customer specifications or order. (Michael Dell, 2012) 4. Marketing Environmental Analysis of environment refers to the outside factors that can be influence on the company’s ability to develop and maintain successful customer relationships with their target market. Those forces include competitors, demographics, economic, political/legal, sociocultural, technological and global ones. 4. 1Competitors Prevalence of tough competitors such as HP Company, IBM Corporation, and Apple Inc. have always struggled with Dell Inc. or capturing customers and securing more market share. (Michael Dell, 2012) Hewlett Packard Company leads in the industry based on its market share with 27. 3 %. The second place belongs to Dell Inc. with slightly lower percentage, 26. 3 %. The other competitors, IBM and Apple Inc. have 14. 9 % and 8. 5 % market shares respectively. (Lord, R. , 2005)They all offer massive capabilities and are financially fit. This can affect the Dell’s ability to operate its business successfully. 4. 2Demographics Dell Inc. ’s products are currently sold in every corner of the world. That is why; the company has diversity of customers.

Its products are mainly tailored and offered to business professionals, doctors and others who might need multiple computers. The reason why the company put more emphasis on this segment is because 40% of its overall sales come from this segment. Dell Inc. ’s products have mostly been purchased by women for the last decade. This trend is soaring. Those women are mainly the owners of small businesses or work in management positions. 4. 3 Economic Economic factors are also considered as a crucial part of marketing environment that could influence on the level businesses or industry operates. Market and Demand

Selling prices, economic situation, disposable household income, product advancements and availability of substitute products are considered as the determinants of demand. Statistics say that the demand for computer industry has been declining in the last 5 years by 3. 2% annually. (IBIS World 2010) However, this trend is estimated or predicted to shift into a positive side. According to the speculations, the global industry is forecasted to grow by 6. 2% annually at average. 4. 4 Political/ Legal Like any other industries, computer industry is also under the control of political and legal regulations.

Those radio frequency emissions regulatory, the anti-trust regulatory, the import-export regulatory agencies are in charge of regulating each single activity in computer industry. 4. 5Sociocultural Societal trends are continuously shifting in this computer industry. Consumers have switched to laptops from desktop computers which were in high demand few years ago. Yet, the Emergence of I-pods and other computer type systems are going to bring about another societal trend in the industry. Another changing trend is that most businesses are shifting to green marketing which involves producing more environmentally conscious products.

Computer industry has also not been exception to that change. To reinforce this statement, we can take Dell Inc. ’s recycle model. The company offers recycling old computers thereby contribute to environmental welfare. Another example would be HP’s new model of computers that would consume much lower energies than the rest of the typical computers. 4. 6Technological Admittedly, computer industry experienced considerable developments. Constant innovations and changes on products are being made by the companies in the computer industry. It is unquestionably crucial for Dell Inc. o keep up with technological shifts so as to survive in the competitive industry. Wildly usage of e-commerce generating great loads of sales shows the importance of keeping track of technological innovations. 5. Target Audience In today’s world, businesses are facing numerous challenges because of the harsh competition caused by the development of globalization. Thus, it has become very tough task for companies to survive or to be the best player in their industries. At present businesses are required to be competent in all spheres of their operations.

Targeting the right market segment has also become one of the key factors for any sort of business. Therefore most companies are putting a lot of stress on considering their target market. Dell Inc. is also one of those companies. Its target market incorporates 4 segments. 1)Home and home offices 2)Small and medium businesses 3)Large businesses 4)Governmental and educational institutions, namely: •Home and home offices segment consists of individual customers who want to buy computers or other related peripherals for the use at home. These groups of customers are not price conscious.

They mostly focus on the word of mouth when considering specific products. Approximately 10% of the Dell’s overall sales come from this segment. •Small and medium business Companies employing 1 to 3500 people are called medium or small businesses. Dell Inc. is not keen on serving these customer groups. Hence, only 10% of its overall sales are grossed from this segment. •Large businesses are companies employing more than 3500 people, are the main target customers Dell usually serves. Therefore, the company grabs almost 75% of its total sales from large businesses.

Obviously, the company has already established solid relationships with large companies. •Dell Inc. doesn’t put a lot of stress on serving governmental and educational institutions. Hence, only 5% of its overall sales come from this customer group. (Fawcett, S. B. , Paine-Andrews, A. , Francisco, V. , Richter, K. P. , Lewis, R. K. , Williams, E. L. , Harris, K. J. , Winter-Green, K. , in collaboration with Bradley, B. and Copple, J. (2001) 6. Understanding the strengths and weaknesses of the business 6. 1 Strengths The Dell Inc. is one of the most popular and strongest companies in the world.

Its strengths over the competitors enable the company to maintain successful business operations. Some of those strengths will be stated below: -Dell Inc. is the largest PC maker throughout the world, which is why it has strong brand equity. In turn, the strong brand equity would serve the company as a good assistance to attract and capture new customers more easily. (Michael Dell, 2012) -One of the greatest strengths of the company is that it owns expertise on applying direct to consumer model which has unquestionably been the key for the company’s current sustainable position in the computer industry. (Wolf, T. , 1990).

The company achieves cost reduction through not including middlemen or retailers during the process of getting the products to the customers. Through this approach, the company manages to better understand customer needs, wants and to deliver superior customer value. Moreover, it enables the company to win the trust and loyalty from customers and to maintain long-term relationships with them. Another strength of the Dell Inc. is that it achieves cost reduction through maintaining sound relationship with its suppliers. This lowered cost will make it easier for the company to capture more customers, thereby increase its market share. Fawcett, S. B. , Paine-Andrews, A. , Francisco, V. , Richter, K. P. , Lewis, R. K. , Williams, E. L. , Harris, K. J. , Winter-Green, K. , in collaboration with Bradley, B. and Copple, J. , 2001) -Another great thing about the Dell Inc. is that it offers free repair and technical support. -It uses Internet as it applies direct model which gives customers convenience in terms of lower cost and saved time. This certainly does entail customer’s add-value which is incredibly important in retaining customers. Finally, Dell Inc. has been able to establish sound relationships with large companies could be potential buyers of its products.

Statistics say that its 75% sales are geared form the large business organizations. 6. 2 Weaknesses As an each business has certain weak point, so does Dell Inc. One of them would be its dependency on its suppliers. Dell Inc. usuallybuys the components from large suppliers which constitute very few numbers all over the world. That makes it just impossible for Dell Inc. to switch its suppliers. (Berkowitz, W. R. , 1999). -Another weakness of the company would be the fact that it doesn’t usually set links with retailers or middlemen as it mainly uses direct to consumer model. Another weak point of the Dell Inc. s that it doesn’t usually put enough stress on serving college students as only 5% of its sales are grossed from this segment. The company needs to establish better relationships with educational institutions son as to increase its market share. (Michael Dell, 2012) The other weak point of the Dell Inc. is that it doesn’t enable its customers to physically touch or see the product they want to purchase. (Fawcett, S. B. , Claassen, L. , Thurman, T. , Whitney, H. , and Cheng, H. , 2003) Customers can not just go to the retail store and come back home with a lap-top in a single trip.

They are going have to have to wait for some days before their computers are customized to their needs. (Berkowitz, W. R. ,1999). 6. 3 Opportunities Dell Inc. is becoming one of the dominant companies in the industry with higher level of opportunities than its competitors do. Diversification strategy initiated by Michael Dell, CAO of Dell Inc. , has improved the company’s opportunities to make a growth in sales, to capture much more customers than it used to. The strategy was applied by adding different sorts of computer-related products into its range. Those would be printers, scanners and other products.

Furthermore, demand for PCs is continuously increasing. (Fawcett, S. B. , Claassen, L. , Thurman, T. , Whitney, H. , and Cheng, H. , 2003) This means that the company has pretty good chance of succeeding in the industry. It’s worthwhile to mention that internet has been playing the most crucial role in the Dell Inc. ’s current achievements in its business performance. Internet is crucial as it’s become an interface between the company and customers. It enables customers to make orders to the company virtually without having to go to the retail stores, wasting their time, effort and money. (Berkowitz, W. R. , 1999). . 4 Threats Porter’s five forces model illustrates possible threats for Dell Inc. According to Michael Dell, it has been very tough task for the computer companies to stay in a strong position for long. The development of wireless networks, the influence of internet has changed the competitive landscape of the industry. He says: “one of the biggest threats is the changing computing model. These forces might be influence on the company’s ability to serve its customers and gear profits. They are the following forces: -Threat of new entrants -Threat of substitute products or services -Threat of competitive rivalry Threats of new entrants The fact that computer industry has been yielding admirable returns is the key reason why new firms are attracted to it. The entrants tend to share the profits in the industry. This means that they are real threats for the companies within the industry. (Lord, R. ,2005)However extensive capital outlay required for entering into the computer industry prevents possible new entrants from even considering this industry. That’s why Dell Inc. doesn’t have to worry about the threats of new entrants. (Fawcett, S. B. , Claassen, L. , Thurman, T. , Whitney, H. , and Cheng, H. , 2003) •Threats of Substitution

Prevalence of many substitute products can pose very big threat to any company. Dell Inc. has also to think about coping with substitute products’ possible effects on its business performance. Emergence of phones which can replace computers is currently one of the biggest threats for computer companies including Dell Inc. At present most people prefer to have IPhones or other sort of phones rather than carrying lap-tops. The fact that modernphones can perform virtually all computer functions makes customers want to have them even more. Specifically, at present most phones can be used for internet, e-mail, and social media.

This is more likely to cause uncertainty in the future of the likes of Dell Inc. •Threats from Competitors Clearly competitors also pose big threats to the Dell Inc. HP, IBM Inc. are examples for those main competitors of the Dell Inc. They always fight to secure greater market share through cost reductions, economies of scale or strategic business partnership. This tough competition makes it even harder for the Dell Inc. to stay alive or to be the best player in the industry. (Lord, R. , 2005) The objectives: -To increase its market share by 25% within 1 year -To turn the company into the best player To increase the consumers’ awareness on the company’s brand (Unterman, I. , & Davis, R. H. , 1994). As any sort of company has specific objectives, Dell Inc. has also certain objectives set forth so as to maintain and build sustainable and viable business operations. One of the most primary objectives of the company is to achieve more market share in the following year. It is planning to attain 25% more market share than its current state. Even though it is clear that the main objective of any company is to capture more market share, attaining this goal will come with challenges. (Unterman, I. , & Davis, R. H. , 1994).

The company has to offer much better quality products and services at relatively low cost than the competitors do. The company is also planning to be the best player in the computer industry. This objective is interrelated to the previous one. Specifically, gaining more market share than any other competitors enables the company to turn into the best player in the Industry. (Unterman, I. , & Davis, R. H. , 1994). Increasing the consumers’ brand awareness is unquestionably the most crucial objective that must be achieved by any company, because without gaining high levels of brand awareness, the company cannot generate enough sales. Unterman, I. , & Davis, R. H. , 1994). In other words only higher level of brand awareness can entail greater market share which in turn can enable the company to be one of the leading players in the computer Industry. 7. Marketing strategy Any company regardless of its position in its industry should continually update its marketing strategies so as to maintain long-term successful business operations and to attain a competitive edge which is unquestionably crucial in today’s business world. Dell Inc. lso has to employ marketing strategies in order to enhance its competitiveness and maintain its long-term leadership in the computer industry. (IBIS World, 2010). Usually, marketing strategies are of assistance for companies which want to achieve their organizational goals such as reaching more market share and higher customers’ brand awareness. Dell Inc. ’s marketing strategy also helps it to achieve its objectives such as being the low cost leader of computer products and also differentiating its offerings. (Michael Dell, 2012) Dell Inc. employs different types of marketing strategies which will be mentioned further.

Dell capitalizes on differentiation strategy. To be more specific, it differentiates its offerings to various market segments based on the needs and wants of those customer groups. For example, computers designed for large businesses may vary from those designed for home users or educational institutions. (Barry, B. W. , 1998) 8. Positioning strategy Dell Inc. has been able to position itself in the computer industry. Its position strategy is based on its competence to sell its products directly to customers rather than involving retailers or other intermediaries in this process.

This position strategy can help the company to achieve the following things: -Building the most efficient bridge to the customers -Becoming low-cost leader -Develop build-to-order efficiencies Relationship management strategy Dell capitalizes on information technologies when utilizing its relationship marketing strategy. It uses both customer relationship management (CRM) and partner relationship management(PRM). These strategies help the company to better understand customer needs and wants and deliver offerings accordingly. It also helps the company to achieve cost reduction through maintaining good relationships with its suppliers.

This in turn allows the Dell Inc. to capture more customers more easily. (Wolf, T. , 1990). 9. Conclusion To sum up, at present, the world is witnessing remarkable development and growth in the computer industry. Companies are doing their best to offer the best quality products at reasonably lower costs. This has made it very difficult task for them to stay alive in their harsh industry. They have to establish the right strategies to attain their goals, to capitalize on their opportunities and to cope with the threats. The report summarized the Dell Inc. ’s objectives and strategies which could help the company to attain its goals.