Marketing Plan : FadRizals Cakes

TABLE OF CONTENTS
1.0 EXECUTIVE SUMMARY

PAGE(S)

1.1 Introduction.2
1.2 Owner and Cake Decorator.2
1.3 Companys Goals and Objectives.3
Business Goals.3
Strategic Goals..3
1.4 Vision.3
1.5 Mission Statement.....3
1.6 The Market3
2.0 INDUSTRY ANALYSIS
2.1 SWOT Analysis4
2.2 Fadrizal Cakes SWOT Analysis 4
2.3 Porters Five Forces Analysis .6
3.0 PRODUCTS AND CORRESPONDING IDEAL CUSTOMER
3.1 Fadrizals Cakes Product.10
3.2 Fadrizals Customers11
4.0 MARKETING STRATEGY
4.1 Market Segmentation .12
4.2 Target Market Segment Strategy 12
4.3 Marketing Plan..13
4.4 Market Trends / Growth .15
5.0 MEASUREMENT ..16
REFERENCESS ..17

1.0 EXECUTIVE SUMMARY

1.1 Introduction
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Marketing Plan : FadRizals Cakes

FadRizals Cakes is brand name that brought to live by Puan Fadzilah Musa, a baker, cake
decorator/designer. FadRizals Cakes is a homemade and customade bakery & baking class
located in Pelindung, Kuantan. FadRizals Cakes is owned by Puan Fadzilah Musa under
company name of FadRizals (CA0167732-H).
FadRizals Cakes aim to be the next Halal brand in cake and pastries in Malaysia. Their aims
are to give the best, delicious, beautiful and halal cake to all.
Beside cakes, cupcakes, desert and many others, FadRizals Cakes also conduct cake class
and tutor for beginners to get a hand on the baking process. Their students are mainly locals
and there are students from Sabah, Sarawak and neighbouring countries such as Singapore
and Brunei.
Puan Fadzilah Musa skill and the popularity of FadRizals Cakes have eye the media for
another interviews and coverage in line. FadRizals Cakes featured in Pesona Pengantin
Magazine in March 2013 as recommended cake decorator.

1.2 Owner and Cake Decorator of Fadrizals Cakes

Fadrizals Cakes is owned by Fadzillah binti Musa. She started her career as a lawyer in Kuala
Lumpur after graduate in Bachelor of Law, Uniersiti Malaya. Working as a lawyer for 7 years.
But, talents and interests are very inclined towards art and creative works since childhood.
Starting a cake business in early 2007, however, have to 'stop' for a while because of health
problems. On purposeful and passionate love, try to reconnect creativity and the existence of
"FadRizals" early 2010. She continue to proceed whatsoever for the performance of a her
passion in cake decorating. Her dedicate "FadRizals" to which for her son l Ariff Fathi Rizal, 8
yrs and her daughter Aisha Fahd Rizal, 5 yrs.

1.3 Company Goals and Objectives

Business Goals
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Marketing Plan : FadRizals Cakes

To participate in state-wide and local bridal trade shows.

Minimize their sales force and maximize their effectiveness
Strategic Goals
Raise funds to support their goals through interested investors.
Achieve 99% customer satisfaction and develop a repeat customer base.

1.4 Vision
Their vision is to ride on the success of homemade cakes and engrave a good brand
impression in the hearts of Kuantan population. They strive to adhere to strict self regulation
and control on the food and service standards and quality that they provide to customers.

1.5 Mission Statement

Their aim is to provide bring unique homemade cakes to customer by retailing and wholesaling
tasty treats and hosting treat design classes. FadRizals Cakes, dedicated to providing highquality cake design to a variety of customers. Their products are priced higher and predicated
on quality of inputs, exceptional flavor and taste, unique design and customer service. They
maintain a friendly, creative, and fair working environment that welcomes diversity, hard work,
and new ideas. They intend to generate profit to provide a fair return for their investment and to
expand the business into other surrounding communities.

1.6 The Market

FadRizals Cakes can adapt to a diversified market, including people of all ages in the Kuantan
area engaged in special events that require a tasty dessert to impress their guests for all
occasions. Their target market specifically includes people who have a medium and higher
level of discretionary income and willing to buy in luxury and premium products.
2.0 INDUSTRY ANALYSES

Marketing Plan : FadRizals Cakes

2.1 SWOT Analysis

SWOT analysis (strengths, weaknesses, opportunities, and threats analysis) is a framework for
identifying and analysing the internal and external factors that can have an impact on the
viability of a project, product, place or person. The framework is credited to Albert Humphrey,
who tested the approach in 1960s and 1970s at the Stanford Research Institute (SRI).
Developed for business and based on data from Fortune 500 companies, the SWOT analysis
has been adopted by organizations of all types as an aid to making decisions.
As its name states, a SWOT analysis examines four elements:

Strengths - internal attributes and resources that support a successful outcome.

Weaknesses - internal attributes resources that work against a successful outcome.

Opportunities - external factors the project can capitalize on or use to its advantage.

Threats - external factors that could jeopardize the project.

Once the SWOT factors are identified, decision makers should be able to better ascertain if
the project or goal is worth pursuing and what is required to make it successful. Often
expressed in a two-by-two matrix, the analysis aims to help an organization match its
resources to the competitive environment in which it operates.
2.2 FadRizals Cakes SWOT Analysis
Strengths

Passionate owner who believes in giving back to her community/environment.

Experienced owner who has a creative flair.
Sustainable competitive edge of adaptability to all occasions, trends, and consumer

market needs.
Using Halal ingredients resulting in high quality product.
Minimal, but experienced staff to start business and save money.
Cakes made by orders and its made from home (no preservative to make cake last)
The uniqueness of each cake has been made by Fadrizals Cakes because it

handmade cake and cannot be the same.

Cakes made by Fadrizals Cakes is modern and trendy design.

Marketing Plan : FadRizals Cakes

Weaknesses

Start-up costs are only estimates and funding a small business could be difficult

(bank loan).
Potentially could be understaffed if their product demand increases drastically.
Experience in marketing our product is minimal.
Location is not in the commercial area. The current premise is not suitable if

FadRizals Cakes need to expand their business.

Time management could interupted FadRizals productivity due to traditionally way in
taking order (using log book)

Opportunities

Join the trend of modern cupcake design.

Focus on large sales through participating at bridal fairs.
To grow quickly and expand, possibly partner with another business (Supply cake to

hotel and restaurant).

Chances to have collaboration with hotel and supermarket to supply cake in their
premises.

Threats

Competitors could steal FarRizals Cakes ideas and cake design.

Competitors may be rising in numbers.
May be subject to enforcement action by the by the municipality for business
operations in the neighbourhood.

2.3 PORTERS FIVE FORCES ANALYSIS

Marketing Plan : FadRizals Cakes

Figure 1.1

Porters Five Forces Model of competitive analysis is a widely used approach for developing
strategies in many industries. The intensity of competition among firms varies across
industries. According to Porter, the nature of competitiveness in a given industry can be
viewed as composite of five forces;
Rivalry among competing firms
Potential entry of new competitors
Potential development of substitute products
Bargaining power of suppliers
Bargaining power of consumers
The following three steps for using Porters Five Forces Model can indicate whether petition in
a given industry is such that the firm can make an acceptable profit:

Identify key aspects or elements of each competitive force that impact the firm.
Evaluate how strong and important each element is for the firm.
Decide whether the collective strength of the elements is worth the firm
entering or staying in the industry.

Applying Porters Five Forces in Home Made Cake Industry

Porters Five Forces analysis is useful when trying to understand the competitive
environment facing a Homemade cake industry. It involves looking at internal competition,
barriers to entry, the profit-appropriating power of both buyers and sellers, as well as
substitutes to the goods produced. Applied to the bakery industry it shows an average net
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Marketing Plan : FadRizals Cakes

profit that typically does not cover the cost of capital due to low barriers to entry, ease of
production and ease of access to ingredients.
Rivalry Among Competitig Firms
There are many players in the home-made cake business in Kuantan, Kemaman and
Pekan. The industry is characterized by many homemade cake businesses, but there has
been a recent trend towards consolidation and economies of scale. Businesses compete
on price, quality, differentiation and relationships with key suppliers.
There are a lot of people that makes celebration cakes in Kuantan area. However, only a
few of them have the level of skills that Fadrizal Cakes has, so rivalry is low when it comes
to achieving the quality of cakes that they create and the level of personal service their
offers. For example, assembling wedding cakes at wedding reception.
Potential Entry of New Competitors
Barriers to entry in this industry are low. Economies of scale are beneficial, but are not
required for industry success. As a result, small businesses can enter the industry with a
relatively small amount of capital. The two main determinants of a new companys
success is the leaders' ability to acquire sufficient distribution channels to cover operating
costs and their ability to build up brand recognition and loyalty. Distribution channels
typically involve retail outlets, such as supermarkets and grocery stores, and they can be
more easily acquired if the bakery has an established brand or the marketing resources to
create one.
Its relatively easy for someone to set up on their own if their know how to bake and
decorate cakes, have done and photographed them for friends and family and have lots of
happy customers who are willing to recommend them. Also a lot of people set up this type
of business from home and in their spare time and there are courses available to learn
extra skills needed. All in all, the treat of new is high, show Fadrizals Cakes needs to find a
way to differentiate and maintain loyalty from happy customers.
Bargaining Power of Consumers
Buyers of the home made cake industrys products, such as future bridal, parents to
celebrate childrens birthday, other event management company and corporate client are
able to appropriate much of the industrys profit due to the large number of homemade
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Marketing Plan : FadRizals Cakes

cake businesses that are all trying to find outlets for their products. As a result, buyers are
able to command low prices and volume discounts. This will cause the profits are small
because they want to keep putting the product together with competitors from the same
industry.
Because of substitutes available, customers may believe they have the power to drive
down price. However, if Fadrizals Cakes concentrators on adding value and letting people
know while they are the best option, then the perceived value goes up and people will
happily to pay more.

Bargaining Power of Suppliers

Suppliers do not have much negotiating power in the bakery business due to the well
developed markets for their products and the commoditized nature of what they are
selling. Bakeries can be affected by price swings of the raw inputs, but the changes are a
result of global supply and demand determinants rather than suppliers negotiating power.
Most suppliers of bakery goods on the East Coast is more expensive compared to large
cities such as Kuala Lumpur, Melaka and Ipoh. This causes the price of the cake to be
expensive because of higher raw material costs.
The amount money Fadrizals cakes makes of each cake depends a lot on the cost of
making, ingredients, equipment, premises, electricity and others utility can all vary in price.
All Fadrizal Cakes can do is to get baking supply in large quantity and cheaper in price
and allow a healthy profit margin to account for unexpected increases.

Potential development of substitute products

Many substitutes exist for bakery products. Breakfast cereals, rice and potatoes are all
viable alternatives and individuals can also make all of the baked goods they want at
home. Bakeries rely upon price and convenience to keep individuals switching to a
substitute or baking what they need at home.
An example of a substitute for Fadrizals Cakes are those that customer from the market,
cupcakes or homemade effort. Equally, people can choose other deserts such as ice
cream cake.
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Marketing Plan : FadRizals Cakes

3.0 PRODUCTS AND CORRESPONDING IDEAL CUSTOMERS

3.1 FADRIZALS CAKES PRODUCT

Marketing Plan : FadRizals Cakes

Fadrizals Cakes dedicates itself to creating specialty cakes and cupcakes for all occasions
that fit the individual needs of their diversified target market. Fadrizal Cakes can adapt its
product to provide a high level of satisfaction to all potential customers across Kuantan,
Pekan and Kemaman and deliver their product within 24-48 hours of receipt of order
obtainable on-line or via phone. Fadrizals Cakes can adapt to our customers taste needs
by providing a variety of different product creating flavored cakes, frostings, designs, colors
and presentation styles that would make any event a stand-out extravaganza
Product of Fadrizals Cakes can be categorised by several product line;
a. Flavoured Cake
Under flavoured cake product line, Fadrizals Cakes can divided into cheese cake,
carrot walnut, Chocolate Indulgence, Rainbow Cake, Nutty Caramel, Red Velvet Cake,
Pecan Butterscotch Cake and many more
b. Decorating Cake
Under decorating cake also can divided into several product type by its finishing of
cake decoration, such as, Fondant cake, buttercream cake and 3D cake. This product
type also can be divided into wedding, birthday, and anniversary, celebration. Fadrizals
Cake also received order from corporate customer such as Fraser and Neaves (F&N).
c. Cupcakes
Also can divide into several types of product such as, fondant cupcake and
buttercream cupcake.
d. Favours / Door Gift Wedding and birthday- Customer can choose whether want to
give their guest favours. Selection of product under this product lines are cake in jar,
cupcakes, cookies.
e. Cookies
This type of product only offers during two months before Hari Raya. The cookies
flavours are Black Chocolate Drop, Mint Chocolate Drop, Untai Untaian, Almond
f.

Shortbread and Congo Bars

Baking and Cake Decorating Class personal class and small group class. Comprises
of maximum of 5 students. All ingredients and baking / decorating tools are prepare by
Fadrizals Cakes. Usually students will bring their own apron, stationery and kitchen

towel.
g. Baking supplies Fadrizals Cakes also selling their signature homemade buttercream
(smooth and shining textiure), homemade fondant and Choc mud cake mix.
3.2 FADRIZALS CUSTOMER
FadRizals Cakes can adapt to a diversified market, including people of all ages in the
Kuantan area engaged in special events that require a tasty dessert to impress their
guests for all occasions. Their target market specifically includes people who have a
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Marketing Plan : FadRizals Cakes

medium and higher level of discretionary income and willing to buy in luxury and premium
products.

4.0 MARKETING STRATEGY

4.1 Market Segmentation

Marketing Segmentation is the process of analyzing and classifying customers in a given
market to create smaller, more precise target markets. FadRizals Cakes have identified its
overall market to consist of people who have a higher level of discretionary income to indulge in
and appreciate the exquisite creativity and flair to consume extraordinary cakes that not only
taste good but look good at the same time. Geographically, their market will start within the
Kuantan area and expand to surrounding states in the next 3 years. Psycho graphically, their
focus involves identifying people who enjoy the art of cake design and care about the luxury
taste of the products. Their trendy company emphasizes its marketing efforts towards the Baby
Boomers (those born 1946-64), Generation X (born 1964-74), Generation Y (born 1975-95)
and Generation Z (born 2000-2021). Among potential customers identified to be a part of their
target market we have identified special events that would involve those customers such as:
Anniversary parties
Baby showers
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Marketing Plan : FadRizals Cakes

Birthday parties
Bon Voyage
Bridal showers
Congratulatory celebrations
Graduations
Holidays i.e.,Hari Raya, Chinese New Year, Fathers Day, Mothers Day,
Valentines Day, etc.

4.2 Target Market Segment Strategy

Target Market Segment Strategy is the identification of target markets and determination of
marketing mix choices that focus on those markets. FadRizal Cakes have identified the above
listed markets so that they can be adapted to different people, and the occasions they enjoy
celebrating.
4.3 Marketing Plan
Product
FadRizals Cakes is well known in the Kuantan area for its fine quality cakes and their art and
design. Their well-guarded homemade cakes have become favorites for both old and young in
any occasions. They are serving a variety selection of gourmet quality cake and other baked
desserts. They offer cheesecake, chocolate cake, and brownies. FadRizals Cakes service of
baking cake in shape of different art or character of cartoon based on the preference of
customers choice of flavor . The customer can choose any of their favorite design or cartoon
characters. This cake reservation must be made 1 month in advance.
Distribution
Customers can pick up their own cake at FadRizals premises at No.28 & 30, Lorong Pelindung
Maju 9, Taman Pelindung Damai 5, Kuantan, Pahang or they can send the order directly to the
which the delivery will be made in 40 km radius of their shop. Shipping charges starting from
RM20.00.
Promotion
Their current promotional plans include:
Radio commercials
Displaying merchandise at any bridal shows at a shopping mall.
Facebook, Twitter, Blogger, www.fadrizals-cackes.
Samples (offline)
Magazine (Majalah Pengantin)
Web Plan Summary:
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Marketing Plan : FadRizals Cakes

Website Development Requirements:

Selecting and Registering a Domain Name and Web Host
Develop a web strategy
E-Business consulting
Web design
Content Development:
Home Page: Company Name, unique logo and slogan
PDF of complete business plan
About Us: Use business address and phone number
Company History
Mission Statement
Investor Relations: Startup costs, Cash Flow, Statement, Break-even Analysis
PayPal setup
FAQ
Blog site for consumer feedback
Product Information
Catalog of product availability

Database programming
Internet marketing FadRizals Cakes

Web Marketing Strategy

It is the goal of FadRizals Cakes is to utilize grassroots online marketing ideas such as the
creation of compelling signature files, guerilla postings containing signature files, linking to
other sites, setting up a company blog and creating an effective and manageable email list.
They will also provide an online catalog showing their products and setup an online
payment system (i.e. PayPal). Customers will be able to contact they online to handle
questions, suggestions, etc. FadRizals Cakes will provide user-friendly web based

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Marketing Plan : FadRizals Cakes

administrative tools and archives of previous announcements or discussions. They will

incorporate the use of facebook, blogger, twitter, etc.

Place
They have chosen a residential area as a business location in Taman Pelindung Damai 5,
Kuantan. The rental of the premise is RM600 per month. The location was selected because it
is near to the house owner. The population in the area alone is 18,000 residents.
Pricing
FadRizals Cakes use a price lining strategy on certain categories of products. This is to simplify
the choices of the customers by introducing same pricing for cakes of the same type. They
markup of 100% based on cost to produce that particular of cake to cover up the overheads
generated to operate the business. However, customers are simply willing to pay more for
beautiful and unique design, good taste and the cakes are made in a clean, and pleasant
environment. Their pricing objective is to be as reasonable as possible for the average
household income. Raw materials prices that they obtained from Kuala Lumpur and Melaka are
cheaper, about 20% from the Kuantan market price and thus leaving them with more space for
their profit margins.
4.4 Market Trends/Growth
Throughout the last few years, the market for homemade cakes has greatly expanded. No
longer are they only a fun birthday party treats or weeding cakes that can be purchased at any
grocery store or bakery. They have expanded with specialty designs to adapt to any occasion
and specialty events and also expect to grow tremendously over the next few years due to their
adaptability to clients needs.

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Marketing Plan : FadRizals Cakes

5.0 MEASUREMENT
The successful of marketing strategies of FadRizals Cakes can be measured trough:

Increasing in sales volume.

Good Customer testimonials

Repeat order by customers.

Increasing traffic visiting of Fadrizals Cakes blog, and facebook pages.

Increasing number of competitors in homemade cakes industry due to market attractiveness

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Marketing Plan : FadRizals Cakes

Reference
http://www.fadrizals-cakes.com/
https://ms-my.facebook.com/FadrizalsCakes
http://www.mindtools.com/pages/article/newTMC_05.htm
http://www.tutor2u.net/business/strategy/porter_five_forces.htm
http://www.bplans.com/marketing_strategy_business_plan/executive_summary_fc.php

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