3.

1 MARKETING DEFINITION

Marketing is an ongoing process of planning and executing the marketing mix for
products, services or ideas to create exchange between individuals and organizations.
Marketing tends to be seen as a creative industry which includes advertising,
distribution and selling. Good marketing must be able to create a “proposition” or set of
benefits for the end customer that delivers value through products or services.
Marketing is the performance of the business activities that direct the flow of goods and
services from the procedure to the consumer or user. Marketing are determine the
price, market size, target market, sale forecast and promotion performance.

Marketing activities is toward fulfilling customer’s needs and wants, as well as

contributing toward profit for the business. In all business activities, marketing plays an
important role in order to ensure the business survives the competition in today’s
market. A good management had to concern and make sure that plans run smoothly
and achieve its target. Marketing is a critical activity in any business because it acts as
the backbone to the total business effort in order to achieve profitable outcome.

3.2 MARKETING OBJECTIVES

A marketing objective is a statement of what the appointed company wants to

achieve through the marketing activities. In order for Freezy Freeze Ice Blended, we
have set up a few marketing objectives:

3.2.1 SHORT TERM OBJECTIVES

• To introduce our business and gain confident from the public.

• To increase our sales services to obtain maximum profit with the usage of
effective marketing planning.
 • To ensure our company will generate high quality goods for the satisfaction of
our customer depending on the business capability.

3.2.2 LONG TERM OBJECTIVES

• Become a business that cam create a challenge for another competitor in
business field.

• To extent our services to wider areas in phase, from West Malaysia and finally to
Thailand and Singapore.

3.3 MARKETING PLAN

The success of each business fully dependent on the success of the company
that offers the products wanted or needed by consumer. Products offered must be
suitable and coveted by the customers. Marketing is a collection of strategies, so to
speak, employed by the accordance to the ethics and religion in the region.
To conclude, the objective of marketing is to increase the efficiency of the
business operation by having a better and wider distribution of long tern loyal
consumers who will ensure the success of the business, evident by the desirable
amount of profit gained and the absence o flosses incurred.

3.4 MARKETING CONCEPT

The marketing concept visualizes the customer as the crucial point of all
marketing activities. An organization or business that practices the marketing concept
studies and integrate all activities within the firm toward helping the customer fulfill these
needs and wants while at the same time corresponding to the business to the
objectives.
The main objectives to marketing concept that can be indentified are:
• Consumer orientation

• Integrated effort

• Correspondence with the business objectives

3.4.1 CONSUMER ORIENTATION
Customers are our clients. Their needs and wants will be guidelines to conducts
our business accordingly. Therefore, we must obtain as much information as possible
about our existing and potential customers. The priority is not just placed on finding out
what their needs are, but also to maximize our ability to serve those needs.

3.4.2 INTEGRATED EFFORT

Here, we are concerned with the balancing of making profit and providing the
highest quality work that we are able to. We must orient all our actions towards ensuring
that each and every customer that comes to obtain our services remains our customers.
Loyal or long tern customers are pivotal to avoid the uncertainties of the competitors’
developments and the economic progress. Each member of the company should also
strive towards making the same efforts, coordinating and cooperating with one another
to realize the goals together.

3.4.3 CORRESPONDENCE TO THE BUSINESS OBJECTIVES

We must ensure that whatever we strive towards achieving is in line with the
major business objectives, whether long term of short term. Also, to retain our hold on
the principles we decided on upon the commencement of the business. All the
marketing strategies must be safely ensconced within the ethics and guidelines of
business in Islam and the community at large.
3.5 TARGET MARKET

A target market is a group of potential buyers who share the common needs and
characteristics that our business aims to satisfy by servicing their needs and wants
through our products and services. As a results, our business will be using differentiated
marketing strategies whereby we will target several market segment refers to a group of
individuals or representing of business within a market that share one or more common
characteristics.

It is only by identifying the target market that business can offer their products to
current or potential customer s in the market and generates the desired sales. To top it
off, by doing this business manage to avoid the wastage of resources and manage to be
more frugal in order to sustain a higher company profit. This is not to say, however, that
the groups that are not targeted are neglected, because whatever sales they make still
amount to additional income for the firm. It is just means that the target group has more
likeness to become customer, and therefore they should be paid more attention for
optimization.

As an entrepreneur, we must have a good planning about a target market of our

business that can be satisfied by the business for our group customers. The planning of
the target market must be referring to what are customers or groups needs and wants.
We must group the customers who had different needs to provide supply a good quality
oyster to all level of society without concern about their ages of life. They should be
studied often as the trends and preferences might change due to many factors like
modernization, outside influences and the economy’s ups and downs.
TARGET MARKET

No. Segmentation Variables/Bases

1. Geographic • Humid and tropical wet climate.

2. Demographic • Gender: Male and Female.

• Occupation:

• Education: All level.

• Income level: RM 1,000 and above.

• Race: Multiracial

3. Psychographic • Status: Single, married and divorce.

• Preferences: Like something cool and

refreshed drinks.

• Sensitivity to price: Moderate.

• Motives of purchase: Hot and thirsty.

• Loyalty to product: Different and better.

MARKET SIZE

Total population of citizen in Melaka: 788,706 person.

Salary Level
RM 0 – RM 1,000 - 10% x 788,706 person = 78,870.60 person

RM 1,000 – Above - 90% x 788,706 person = 709,835.40person

RM 0- RM 1000
RM 1000- ABOVE

* Freezy Freeze Enterprise has estimated, with this total population of Melaka citizen
with salary of RM1,000.00 and above (709,835.40person), only 55 percents out of it
have all the demographic, psychographic and behavioral factors which had been
stated in the previous page that will accept these kind of concept and products of any
foodservice establishments. Thus, it is only 78,870.60 people.

We have estimated these percentages of our target market, Melaka’s citizen

based on their salary level (RM1,000.00 and above) and spending pattern will buy
our products as below:

Average spending pattern: RM20.00/pax

Thus,

RM20.00/pax x 709,835.40 person = RM 14,196,708.00

Total Market Size

Freezy Freeze has estimated its potential market sales for the first year based on the
target market size in Melaka itself is RM14,196,708.00

COMPETITION

The Expected Competitors

Name of
No. Strengths Weaknesses
Company
1. Cool Blog - Established since - Expensive due to
2005 . well established
- Various product brand.
lines.
- Well known to the
market.

2. Each a Cup - Established since - Poor promotion.

2009

Freeze Freezy

Name of
No. Strengths Weaknesses
Company
1. Freezy Freeze - Reasonable - New to the market.
price. - Not yet established.
- Specialty product
(using local
fruits).
- Effective
promotion.
- Quality Product.
MARKET SHARE

Market Share before the Entry of Freezy Freeze

Competitors Market Share Sales Estimated (Annually)

Cool Blog 60% RM4,455,000.00

Each a Cup 40% RM2, 970,000.00

GRAND TOTAL 100% RM7, 425,000.00

Percentage Before Entrance

60%

50%

40%

30% Cool Blog

EachA Cup
20%

10%

0%
Cool Blog EachA Cup
Adjusted of Market Share after the Entry of Freezy Freeze

Competitors Market Share Sales Estimated (Annually)

Cool Blog 50% RM3, 712,500.00

Each a Cup 34% RM2, 524,500.00

Freezy Freeze 16% RM1, 188,000.00

GRAND TOTAL 100% RM7, 425,000.00

Percentage After Entrance

50%
45%
40%
35%
30% Cool Blog
25%
Each A Cup
20%
Freezy Freeze
15%
10%
5%
0%
Cool Blog Each A Cup Freezy Freeze
SALES FORECAST

Year 1 – 2010

Month Monthly Sales (RM)

January 13,950.00
February 25,200.00
March 41,850.00
April 40,500.00
May 41,850.00
June 40,500.00
July 41,850.00
August 41,850.00
September 40,500.00
October 41,850.00
November 40,500.00
December 41,850.00
Grand Total 452,250.00

Year 2 – 2012

Sales increase by 10% (497,475.00 x %) = RM374, 294.40

Year 3 – 2013

Sales increase by 20 % (542,700.00 x 101.8%) = RM381, 031.69

Forcast based on monthly selling

January

Flavor Total Cup Sold Total sales

chocolate 330 990
Fretto
Chocolate 300 900
Vanilla 200 600
Cuppucino 280 840
Latte 250 750
chocolate Oreo 300 900
Grape 250 750
Honeydew 175 525
Sour Plum 120 360
Kiwi 140 420
Apple 217 651
Orange 245 735
Pineapple 147 441
Lime 140 420
Lemon 210 630
Strawberry 266 798
Sour Soup 191 573
Icez Rainbow 224 672
Blue Icez 154 462
Passion Fruit 175 525
Cendol 126 378
Tropical
Punch 210 636
Total 4650 13950
 February

Flavor Total Cup Sold Total sales

chocolate 660 1980
Fretto
Chocolate 600 1800
Vanilla 400 1200
Cuppucino 560 1680
Latte 500 1500
chocolate Oreo 600 1800
Grape 500 1500
Honeydew 350 1150
Sour Plum 240 720
Kiwi 280 840
Apple 434 1302
Orange 490 1470
Pineapple 294 882
Lime 280 840
Lemon 420 1260
Strawberry 532 1596
Sour Soup 400 1200
Icez Rainbow 300 900
Blue Icez 342 1020
Passion Fruit 180 540
Cendol 200 600
Tropical
Punch 351 1053
Total 8400 25200
 March

Total Cup
Flavor Sold Total sales
chocolate 990 2970
Fretto
Chocolate 630 2700
Vanilla 840 1800
Cuppucino 750 2520
Latte 900 2250
chocolate Oreo 750 2700
Grape 525 2250
Honeydew 360 1575
Sour Plum 420 1080
Kiwi 651 1260
Apple 435 1953
Orange 441 2205
Pineapple 420 1323
Lime 630 1260
Lemon 798 1890
Strawberry 573 2394
Sour Soup 672 1719
Icez Rainbow 462 2016
Blue Icez 525 1386
Passion Fruit 378 1575
Cendol 630 1134
Tropical
Punch 600 1890
Total 13950 41850
 April

Total Cup
Flavor Sold Total sales
chocolate 1010 3030
Fretto
Chocolate 900 2700
Vanilla 600 1800
Cuppucino 840 2520
Latte 750 2250
chocolate Oreo 900 2700
Grape 750 2250
Honeydew 554 1662
Sour Plum 340 1020
Kiwi 400 1200
Apple 631 1893
Orange 715 2145
Pineapple 421 1263
Lime 400 1200
Lemon 610 1830
Strawberry 778 2334
Sour Soup 553 1659
Icez Rainbow 652 1956
Blue Icez 442 1326
Passion Fruit 554 1662
Cendol 500 1500
Tropical
Punch 830 2490
Total 13500 40500
 May

Total Cup
Flavor Sold Total sales
chocolate 990 2970
Fretto
Chocolate 900 2700
Vanilla 600 1800
Cuppucino 840 2520
Latte 750 2250
chocolate Oreo 850 2520
Grape 800 2400
Honeydew 530 2550
Sour Plum 365 1095
Kiwi 400 1200
Apple 971 2013
Orange 730 2190
Pineapple 446 1338
Lime 400 1200
Lemon 650 1950
Strawberry 790 2370
Sour Soup 581 1743
Icez Rainbow 670 2010
Blue Icez 464 1392
Passion Fruit 520 1560
Cendol 383 1149
Tropical
Punch 630 1890
Total 13950 41850
 June

Total Cup
Flavor Sold Total sales
chocolate 1000 3000
Fretto
Chocolate 910 2730
Vanilla 640 1920
Cuppucino 800 2400
Latte 700 2100
chocolate Oreo 950 2850
Grape 750 2250
Honeydew 554 1662
Sour Plum 340 1020
Kiwi 431 1293
Apple 600 1800
Orange 710 2130
Pineapple 426 1278
Lime 410 1230
Lemon 600 1800
Strawberry 770 2310
Sour Soup 561 1683
Icez Rainbow 650 1950
Blue Icez 444 1332
Passion Fruit 554 1662
Cendol 530 1590
Tropical
Punch 800 2400
Total 13500 40500
 July

Total Cup
Flavor Sold Total sales
chocolate 900 2700
Fretto
Chocolate 990 2970
Vanilla 640 1920
Cuppucino 800 2400
Latte 700 2100
chocolate Oreo 950 2850
Grape 700 2100
Honeydew 575 1725
Sour Plum 300 900
Kiwi 480 1440
Apple 600 1800
Orange 786 2358
Pineapple 400 1200
Lime 461 1383
Lemon 630 1890
Strawberry 798 2394
Sour Soup 570 1710
Icez Rainbow 675 2025
Blue Icez 460 1380
Passion Fruit 527 1581
Cendol 370 1110
Tropical
Punch 638 1914
Total 13950 41850
 August

Total Cup
Flavor Sold Total sales
chocolate 920 2760
Fretto
Chocolate 970 2910
Vanilla 600 1800
Cuppucino 840 2520
Latte 720 2160
chocolate Oreo 930 2790
Grape 720 2160
Honeydew 555 1665
Sour Plum 340 1020
Kiwi 440 1320
Apple 626 1878
Orange 760 2280
Pineapple 460 1380
Lime 401 1203
Lemon 628 1884
Strawberry 800 2400
Sour Soup 550 1650
Icez Rainbow 695 2085
Blue Icez 200 1200
Passion Fruit 587 1761
Cendol 378 1134
Tropical
Punch 638 1914
Total 13950 41850
 September

Total Cup
Flavor Sold Total sales
chocolate 950 2850
Fretto
Chocolate 960 2880
Vanilla 620 1860
Cuppucino 820 2460
Latte 725 2175
chocolate Oreo 925 2775
Grape 740 2220
Honeydew 564 1692
Sour Plum 330 990
Kiwi 441 1323
Apple 590 1770
Orange 720 2160
Pineapple 426 1278
Lime 410 1230
Lemon 650 1950
Strawberry 720 2160
Sour Soup 551 1653
Icez Rainbow 660 1980
Blue Icez 448 1344
Passion Fruit 550 1650
Cendol 520 1560
Tropical
Punch 810 2430
Total 13500 40500
 October

Total Cup
Flavor Sold Total sales
chocolate 920 2760
Fretto
Chocolate 970 2910
Vanilla 610 1830
Cuppucino 830 2490
Latte 750 2250
chocolate Oreo 900 2700
Grape 700 2100
Honeydew 575 1725
Sour Plum 320 960
Kiwi 460 1380
Apple 620 1860
Orange 766 2298
Pineapple 420 1260
Lime 441 1323
Lemon 650 1950
Strawberry 778 2334
Sour Soup 390 1170
Icez Rainbow 655 1965
Blue Icez 420 1260
Passion Fruit 547 1641
Cendol 378 1134
Tropical
Punch 630 1890
Total 13950 14850
 November

Total Cup
Flavor Sold Total sales
chocolate 940 2820
Fretto
Chocolate 970 2910
Vanilla 600 1800
Cuppucino 840 2520
Latte 735 2205
chocolate Oreo 915 2745
Grape 710 2130
Honeydew 594 1782
Sour Plum 310 930
Kiwi 461 1383
Apple 570 1710
Orange 740 2220
Pineapple 416 1248
Lime 420 1260
Lemon 620 1860
Strawberry 750 2250
Sour Soup 541 1623
Icez Rainbow 670 2010
Blue Icez 438 1314
Passion Fruit 560 1680
Cendol 510 1530
Tropical
Punch 820 2460
Total 13500 40500
 December

Total Cup
Flavor Sold Total sales
chocolate 930 2790
Fretto
Chocolate 960 2880
Vanilla 620 1860
Cuppucino 820 2460
Latte 720 2160
chocolate Oreo 970 2790
Grape 690 2070
Honeydew 585 1755
Sour Plum 300 900
Kiwi 480 1440
Apple 640 1920
Orange 746 2238
Pineapple 400 1200
Lime 461 1383
Lemon 658 1974
Strawberry 770 2310
Sour Soup 395 1185
Icez Rainbow 650 1950
Blue Icez 420 1260
Passion Fruit 547 1641
Cendol 375 1125
Tropical
Punch 633 1899
Total 13950 41850
Freezy Freeze had identified factors that influence customers’ buying power:

i) Customer awareness

Freezy Freeze has just started its operation in January 2011, so it will takes a while to
get customers attention.

ii) Seasonal Factors

Holidays and Observances:

1 Jan New Year's Day 31 Aug National Day
1 Feb Federal Territory Day 1 Sep Hari Raya Puasa Day 2
3 Feb Chinese Lunar New Year's Day 16 Sep Malaysia Day
4 Feb Second day of Chinese Lunar New Year 26 Oct Deepavali
16 Feb The Prophet Muhammad's Birthday 7 Nov Hari Raya Haji
Mac School Holiday 27 Nov Muharram/New Year
1 May Labour Day Nov & Dec School Holiday
2 May 'Labour Day' observed 24 Dec Christmas Eve
17 May Wesak Day 25 Dec Christmas Day
May School Holiday 26 Dec 'Christmas Day' observed
4 Jun The Yang di-Pertuan Agong's Birthday 31 Dec New Year's Eve
31 Aug Hari Raya Puasa Day 1
MARKETING STRATEGY

The marketing strategy consists of 4P’s of marketing; product, price, place (distribution)
and promotion.

1. Product/Service Strategy

i. Brand

- Our product name is Freezy Freeze.

- The name is derived from our specialty of beverage.

- It is easy to remember and commercialise.

ii. Quality

- We use very high quality of raw materials.

- We used local fruits for our product.

- Our product also proven HALAL by JAKIM.

iii. Design

- Our product is designed to be simple yet can enhance people’s appetite.

iv. Packaging

- We have two size of packaging (plastic cup) for beverage; large and
small.

v. Protection

- We use plastic cup that have cover on the top to maintain our product
quality.

- The packaging materials of our beverage product are made from high
quality of resources to avoid the effect of plastic.
 - Every perishable item like ours fruits is stored in the chillers to maintain the
freshness.

vi. Ease for Use

- Our packaging; plastic cup is easy to use and durable.

- When customer purchases our product, it is ready to be drink.

vii. Product Differentiation

- Brain Freezer is a tasty homemade and secret recipe.

- It uses local fruits.

- The fruit is inserting inside the product for customer satisfaction.

viii. Attractive To Customers

- Our beverage packaging; plastic cup are design in two sizes; large and
small.

- Attractive colours are use for our packaging.

ix. Product Safety

- Our packaging or take away cup can be recycling back in a way to save
and preserve the environment.

- Easy to bring anywhere.

- The cup is design not to be danger for children below 3 years old.

x. Labelling

- Our product item is labelled with our logo.

2. PRICING STRATEGY

• We use cost-based pricing strategy

• It is based on the total cost of the product plus an amount of mark-up needed.

• It simplest and widely used pricing strategy.

Regular cup
Price = total cost per unit + mark up (100%)
= RM2.50 + RM0.50
= RM3.00

3. DISTRIBUTION STRATEGY

• Distribution strategy is aimed at establishing a structured and controllable

distribution system to ensure the product offered reaches the target customer.

• We had chosen the direct marketing channel or Channel One.

Freezy Freeze Customer

4. PROMOTION STRATEGY

i. Advertising

• Through internet; our own website.

• Printed media such as magazines and news paper.

• Pamphlet and flyers.

• Yellow pages.

• Signboard.

• Banner
 ii. Sales Promotion

• Opening sales promotion – for the first two weeks, our promotion is
buying 2 cups and gets free one cup.

• Free sample will be given to our customers to experience the taste of our
product.

• We take any order through our website or hotline.

MARKETING BUDGET

Fixed Assets Monthly Other

No. Description Expenses Expenses Expenses
(RM) (RM) (RM)
1. Signboard 500.00
2. Labelling 500.00
3. Sales Promotion 1,000.00
4. Advertising 2,500.00
5. Business Card 200.00
6. Grand Opening 600.00
Total 500.00 1,500.00 3,300.00
Grand Total 5,300.00