6 SWOT Analysis

6.1 Internal strength

-Waterless hand cleanser
-Maintains skin integrity
-Use of natural Macadamia Nut Oil to replenish the skins natural lipids.
-Hands will be hygienic, soft and replenished even after using the bactol alcohol gel
-All ingredients used in this product are deemed not to be hazardous
-Comes in different flavours and mask the normal flavor of alcohol gel
-Imported from Australia that has a high standard for quality and safety
-More portable with the introduction of different packaging.


6.2 Internal Weaknesses
-Relatively higher cost and selling price
-Malaysia market consumers do not really use alcohol hand gel to wash hand at household level
-Relatively unknown brand in Malaysia market
-Lack of advertisement and thus knowledge of waterless hand wash

6.3 External Opportunities
-Growth of awareness of consumers in getting antibacterial hand wash
-Outbreak of contagious disease results in higher demand in waterless hand wash gel
-Normal hand wash gel do not replenish skins natural lipids, resulting in dry skin

6.4 External Threats
-Competitors that offer lower selling price for similar product
-Unwillingness of consumers to start using waterless hand wash
-Mindset of consumers that assume only hand wash with water is effective and clean


7 Commercial Goals and Financial Forecast
7.1 Qualitative Objectives
-Increase the number of times people sanitize hands using water free hand wash
-increase the market penetration for water free hand wash with a clear vision that Bactol alcohol gel will
be the most trusted and recognised brand as household and commercial hand wash
-Bactol alcohol gel to be widely available at hypermarket, pharmacy as well as convenient store
-Increase customer satisfaction in using our product
-To enter into agreement with major government and private hospitals to use our product as hand
sanitizer

7.2 Quantitative Objectives: Market Share, Revenue, etc
-To grab 4% of the population in Malaysia to use Bactol alcohol gel in daily basis in 5 years.
- To increase 8% of revenue annually starting from second fiscal year
-To gain at least 15% Return on Investment in the first three years and 25% thereafter

7.3 Financial Forecast
The following Financial Forecast represents a projected increase in both revenues and
expenses for 3 fiscal years.
The financial forecast depends on important assumptions:

1. We assume a strong economy, without major recession.
2. We assume that there will be no major outbreak of contagious disease.

7.3.1 Sales forecast
The sales forecast figures are conservative. Should there be any outbreak of contagious disease, the
figure will be higher. It is projected to be increasing steadily as the market gets to know more about our
product after advertising and other marketing strategies kick off. We are optimistic about achieving the
targeted sales figure as the awareness of the consumers for personal hygiene increases steadily over the
years. The figure might be even higher if we successfully enter into agreement with government and
private hospitals to use our product.

Sales forecast table

FY 2015 FY 2016 FY 2017
Sales
Bactol alcohol gel $ 1,185,000 $ 1,279,800 $ 1,382,184

Total sales $ 1,185,000 $ 1,279,800 $ 1,382,184


FY 2015 FY 2016 FY 2017
Direct cost of sales
Bactol alcohol gel 711,000 767,800 829,310

Total direct cost of sales 711,000 767,800 829,310


**RM is represented as $ in the chart and table above

7.3.2 Expense forecast
The expense forecast will be followed to keep the various departments on target and provide the signs
or indicators when improvements or corrections are required for the implementation of the marketing
plan.

Marketing Expenses Budget 2015 2016 2017
Website 6500 6000 6000
Advertisements 200,400 208,800 218,000
Commission 84,400 85,000 86,000
Total sales and marketing expenses 291,300 299800 310000

8 Budget: Planned Marketing & Sales Investment
Our company plans to invest heavily in marketing and sales to increase the reputation of our main
product which is Bactol alcohol gel especially in the first fiscal year. The projected amount allocated for
the whole year is RM 284,400 which is about 60% of the projected gross profit. This might seem to be
worrying but it is vital to make our product known to the market. Out of the RM 284,400 allocated for
the marketing purpose, RM 60,000 will be used for advertising our product in the media such as
newspaper and another RM 80,000 will be used for advertising our product through social media such as
Facebook. RM 60,400 will be spent on samples for the doctors, pharmacists and public. To motivate our
staff in the sales department, RM 84,400 will be allocated for the first year as commission. We believe
that through careful and selective implementation of our marketing strategies, the money spent on
marketing will be reflected in the increased sales.

Category Estimated Total
Communications/Promotions
Free samples
Newspaper
Social Media advertisement
Website
Commission for staff
Communications Cost Total


RM 60,400
RM60,000
RM 80,000
RM6,500
RM 84,400
RM290,900
Product
Importing Cost
Product Costs Total

RM 701,000
RM 701,000

Transportation

RM 10,000
Total (estimated) RM711,000


18 Life Cycle Management
We realize and believe in the importance of life cycle management. With the launch of the product, we
enter the era of introduction phase. The profit during this period will be lesser as the income will be
channeled to the launch campaign and advertisement. The increase in profits will signify the beginning
of growth phase as consumers start to get to know and use our products more frequently. The big
challenge comes in when we enter the maturity phase as sales may slow down due to the presence of
competitors or consumers start to loss interest. We plan to carefully reposition our product in order to
reenter growth phase. This includes brand defense strategy. Under this strategy, we aim to establish our
product as the market leader of waterless hand sanitizer. This will require the massive advertisement
and endorsements and consent form the healthcare providers such as physician that will further
enhance the position of our brand in the market. We seek to penetrate the new market segment that
has never been targeted before. The market segment includes the children and the medical sector. We
plan to invest in Research and Development so that we can invent the product that can be used to not
just sanitise hands but also medical equipment. Apart from brand defense strategy, we plan to introduce
new products under our line extension project. This project will see the introduction of different flavours
of Bactol alcohol gel in the market such as lavender, citrus as well as different fruits flavour to cater the
needs of consumers. We also have this plan to introduce Bactol alcohol gel Kids series that target the
younger segments of the market. This product will be formulated so minimize the hazard in case the kids
accidentally consume the alcohol gel. Thus, this will be a safe product that the parents can encourage
their young children to use so that they can also benefit from the antibacterial effect of our product.