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0 MARKETING PLAN

3.1 MARKETING OBJECTIVES

 Maintain steady, controlled growth.

 Decrease customer acquisition costs by 10% per year.
 Steadily increase market penetration.
 Reach the monthly revenue break-even point.
 Increase customer retention by usage of smart card technology.

3.2 PRODUCT AND SERVICE

Attracting and retaining more customers are the keys to any successful business. As a
result, figuring out just what it is self-service laundry customers really wants or needs to spend
their money on. Nowadays, more people are being busy with their works and don’t have the
time to do their laundry. Thus, self-service laundry is very suitable for them because they have
flexible time to do the laundry plus the price is very cheap compared to other laundry that offer
same services.

Although there a different number of wants and needs from today’s laundry customer,
the most important thing is the laundry’s cleanliness. Our self-service laundry have a clean
facility since we already have schedule to wipe out the washer drums after they have been used,
checking the dryers for foreign objects and inspecting the detergent and softener dispensers.
We believe that the customer want to feel that our laundry is convenience. Because our shop
in a shop lot building, there are many parking spot for our customers but maybe there some
traffic problems.

In addition, the operation hours for this self-service laundry is 24 hours and customer
can come and do the laundry at any time that they preferred. The washers and dryers are easy
to use and the guideline will be given at each washers and dryers. Because our society continues
to place a premium value on its time, it becomes a relevant factor for our customer. Thus, in
our laundry, the time to wash the clothes is 20 minutes and 24 minutes to dry.

While some customer might be think of the safety, the laundry’s location is in a
relatively safe area. We have a number of exposed security camera domes that are visible inside
and outside of our facility and we have an emergency button/telephone that directly to the
police office and ours. Our laundry use smart card technology which is each customer have to

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buy the card and just top up according the amount that they want and they can keep the smart
card in case they will come and do laundry again.

The facilities that are provided at our self-service laundry are vending machine
(beverages), massage chair, sink and waiting area for the customers. This is to ensure the
customers feel comfortable while doing the laundry. Essentially, marketability is a measure of
whether a service will appeal to buyers and sell at a high enough price to generate a profit.”

3.3 TARGET MARKET

In the introduction, the target customer for Hippo laundry are 18 years and above. Thus,
the target market can be segmented into some categories. Segmentation means dividing the
market into distinctive group of consumers on the basis of needs characteristics or behaviors
of consumers. Common bases for segmentation are demographic, psychographic, geographic
and behavioral.

Demographic segmentation is market segmentation according to age, race, religion,

gender, family size, ethnicity, income and education. Demographics can be segmented into
several markets to help Hippo laundry target its consumers more accurately. With this type of
segmentation, we can categorize the needs of consumers. Our self-service laundry is for both
male and female include families, students and individual.

Normally, the family that have medium or large size using self-service laundry. The
income of the consumers that use self-service laundry is quite high compared to others that
choose to do the laundry at home. The consumers have higher education or busy with their
career since they will not have enough time at home and using our self-service laundry.

Geographic segmentation is a common strategy when we serve customers in a particular

area, or when our broad target audience has different preferences based on where they are
located. Since our location in Indera Mahkota, it is near to IIUM Kuantan, colleges, and
residential area. The location for Hippo laundry is very strategic and many people will benefit
greatly from our service offerings.

Psychographic segmentation is dividing the market based on lifestyle or personality

characteristics of the consumers. Psychographic criteria is more difficult to measure than others
segmentation because personal traits difficult to measure accurately. Our laundry target the

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customers who have busy lifestyle with the career and family. Other than that, we also target
the social class for middle and upper class.

Behavioral segmentation groups consumers based on specific behavioral patterns they

display when making purchasing decisions enabling producers to adapt their marketing
approach to specific groups. Grouping patterns may include such behaviors as occasion, loyalty
status, needs and benefits, and usage rate. Hippo laundry will give special promotion for special
occasion such as first day of the opening. Each consumer will have different benefits from this
laundry depend on their segments desire. The usage rate of consumers can be divided into light,
medium and heavy, thus our laundry target medium and heavy user rather than several light
user.

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3.4 MARKET TREND AND MARKET SIZE
3.4.1 Market Size

Residents use Laundry service Monthly Yearly

Number of
laundry service assumption of usage (4 market market
residents
(30%) times/month) (RM) size (RM) size (RM)

10 000 3000 40.00 120,000 1,440,000

3.4.2 Market Share

a)
Market share before we enter the market

Laundry Port
30%

BASOH
70%

b)
Maket share after we enter the market

Hippo Laundry
15%

Laundry Port
25% BASOH
60%

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3.5 ASSESSING COMPETITION
There are two competitors for our Laundromat business at that area which are BASOH and
Laundry Port. We will assessing their market positions by using SWOT analysis.

SWOT Analysis
Strength Weakness Opportunity Threat
BASOH Provide free Competition Large target Future/ potential
Wi-Fi from market. competition
Provide free other A constant, from new
detergent and Laundromat consistent entrants
softener who offer market demand During
Provide laundry similar service because economic
basket No other everyone has downturn, it
Provide token facilities such as dirty clothes. will affects
changer vending consumer
Sink is machine spending which
available Only provide in turn impacts
Strategic 14kg of washer business
location and dryer negatively
Clean machine
Laundry Port Quick and Only provide Three months of Future/ potential
convenient 14kg and 10kg rainy seasons competition
Reasonable of washer and cause a good from new
price dryer machine response to entrants
Provide No other laundry Seasonal market
massage chair facilities such as business. demand due to
Provide coin vending Participation in many students
changer machine a steadily leaving during
Sink is growing semester break.
available industry
Free Wi-Fi
Convenient
location
Hippo Laundry Offer affordable New business so Growing city Competition
price inexperienced population from BASOH
Use the latest management High demand and Laundry
technology and No regular from the Port
equipment customers customers Little brand
Safe and Lack of value
reliable experience

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3.6 SALE FORECAST

Month / Year Sales (RM)

January 2019 50,000
February 2019 80,000
March 2019 80,000
April 2019 80,000
May 2019 90,000
June 2019 90,000
July 2019 90,000
August 2019 80,000
September 2019 80,000
October 2019 100,000
November 2019 100,000
December 2019 100,000
Year 1 (2019) 1,020,000
Year 2 (2020) : +10% 1,122,000
Year 3 (2021) : +20% 1,224,000

3.7 MARKETING STRATERGY

3.7.1 PRODUCT/SERVICE STRATEGY

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A. Product Mix

The product mix will include common services offered by most laundry shops which include
self-service washer and dryer. Various types of fabric such as clothing, bedding, jeans, curtains
and others can be cleaned by using our washer and dryer machine.

B. Service Feature

The self-laundry service offers water-based wash, water-soluble detergent soaps and fabric
conditioner. The business only uses high-efficiency dryer and washer to reduce the usage of
water and energy. The washing machines are efficient and will not damage the clothes while
the dryer will perfectly balance the heat and airflow which results in the most efficient drying
process. The usage of smart card technology for all the machines in our store will facilitate the
customers.

C. Service Quality

The quality level will be assessed by imposing checklist and everyday inspection. Since
laundry business deals with cleanliness, we will ensure that the business itself adheres to the
quality standards.

D. Service Package

To satisfy our customer need, we offer variety size of washer and dryer which include:

 14kg washer
 10kg washer
 6kg washer
 14kg dryer

Besides that, we also provide other services such as:

 Smart card top-up machine

 Massager chair
 Beverages vending machine

E. Service Differentiation

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Hippo Laundry will offer the newest technology available in laundry industry that is different
from the current conventional “coin-op” laundry. The newest technology used in this business
will eliminate the use of coin in the typical laundry industry and thus, smart card technology
will be introduced.

3.7.2 PRICING STRATEGY

Price is the value exchanged between the seller and buyer in order for buyer to possess,
use or experience the product or service offered. Most often, price is in the form of monetary
value paid by buyer to obtain product or service. There are only two service that are provided
by or Laundromat which are washing for 16kg, 10kg and 6kg and drying. Our Laundromat also
provide vending machine and massage chair as the attraction for our customers. The price list
are given as below:

A. Washer machine

Weight Low temperature Medium temperature High temperature

14 kg RM 6.00 RM 7.00 RM 8.00
10 kg RM 5.00 RM 6.00 RM 7.00
6 kg RM 4.00 RM 5.00 RM 6.00

B. Dryer machine
Minutes Price
24 minutes RM 4.00
Additional 3 minutes RM 0.50

C. Vending machine
Drink selection Price (RM)
100 Plus (can) 1.50
Coca Cola (can) 1.50
Sprite (can) 1.50
F&N Brands (can) 1.50
Seasons Brands (can) 1.50
Drinho Brands (can) 1.50
Yeo’s Brands (can) 1.50
Ice Mountain Mineral Water (500 ml) 1.50

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 Cactus Mineral Water (500 ml) 1.50
100 Plus (bottle) 2.50
Coca Cola (bottle) 2.50
Sprite (bottle) 2.50
F&N Brands (bottle) 2.50
Seasons Brands (bottle) 2.50
Drinho Brands (bottle) 2.50
Yeo’s Brands (bottle) 2.50

D. Massage chair
Minutes Price (RM)
3 minutes 1.00
15 minutes 5.00
30 minutes 10.00
60 minutes 20.00

3.7.3 PLACE STRATEGY

Place strategy refers to decision made on location of business. Choice of location is

crucial for most brick and mortar business. We decided to rent a shop lot at Indera Mahkota 8,
Kuantan and it is a 3000 square foot block building and located next to several well-known
local business.

The location of this store is essential for acquiring the target customer base of 18 years
old and above, since it is located just off the campus of International Islamic University
Malaysia, close to residential area, and next to a restaurant. We provide our service near to
customers where they can easily get our service. There is a growing demographic population
of students and working people with so much to do with a little time. Their activity based life
style leaves less time for household chores. Although there are two other Laundromats that
offer similar service, we will be able to survive in this business because of the growing
population in this area.

Besides, Hippo Laundry is located near to the main road with high visibility and many
parking spaces are available in front of the building. So, it is easier for the customers to park

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their vehicle while doing their laundry. Moreover, there are a few restaurants near our
Laundromat which can attract more customers because they can have a meal while waiting for
their laundry.

3.7.4 PROMOTION STRATEGY

A. Advertising
a. Outdoor advertising:
Outdoor advertising such as banners will be used to create awareness among audiences
within the target market. These banners will include the location of our laundry shop
so that people will know how to get to us.
b. Online advertisement:
In these days, social networking websites are getting very popular. Online
advertisement is an important communication channel to reach out as many audience
as possible. We will create a Facebook page to advertise our service.
B. Sale Promotion
a. Free service:
A one day free washing service will be given to the customers during the opening day
of our laundry shop in order to position Hippo Laundry in their mind besides fostering
a friendly brand impression.
b. Occasional packages:
On different occasion Hippo Laundry will announce special service packages to the
customers.
C. Publicity
a. Word of mouth advertising:
Creation of Facebook page will enhance the word of mouth advertising by directly
engaging with the users and potential customers in chats threads.

3.8 MARKETING BUDGET

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 Marketing budget refers to expenses incurred in planning for the marketing aspect of
the proposed business or project. It consist of 3 components:

1. Investment on fixed assets.

2. Allocation for working capital for marketing activities.
3. Other marketing expenses.

Items Fixed assets Working capital Other expenses

(RM) (RM) (RM)
Fixed asset:
Signboard 3,000
Working capital:
Salary/EPF/SOCSO
- Marketing manager 1,529.50
- Promotion (Flyers, banners, 100
bunting)
Others:
Grand opening (free service for 5,000
washer)
Total (RM) 3,000 1,629.50 5,000

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