MARKETING PLAN

MARKETING

Marketing is defined as the process of performing market research, selling products and/or
services to customers and promoting the through advertising to further enhance sales. The
aim of marketing is to attract and retain a growing base of satisfied customers.

MARKETING OBJECTIVE

The objective of this business is to sell the Silky Essence Sweatproof Perfume all over
Malaysia. Malaysia has more than 27 000 000 people. Our factory which is situated at Johor
will send all the products to our sale center which is situated at Shah Alam. Firstly, Silky
Essence Sweatproof Perfume is going to be promoted throughout Selangor to attract at least
100 000 customers. This product is going to be promoted to at least 60 percent of
Malaysians through advertising and the awareness of this product among users is to be
increased by 20 percent in a year. The annual growth of sale is at least 20 percent. The
sweatproof perfume produced by Silky Essence is different from the market because this
product provides a perfume with the function of antiperspirant which has not been produced
locally.
PRODUCT DESCRIPTION

The product of Silky Essence is weatproof perfume. This product is made of a few chemical
substances such as aluminium chloride, aluminium hydroxybromide and perfume based
substances. The perfume is packed in spraying bottles.

This product is rather different from the market products in terms of its resistance to sweat.
Perfumes do smell good but do they resist sweat? Sweat which is produced by human body
came contact with the chemicals on the skin causes it to give out unpleasant smell. This
sweatproof perfume, with the presence of aluminium chloride helps to close the sweat duct
so that the sweat can’t get out. Thus, the perfume will stay longer than the normal perfume
does.

This perfume is made out of base notes such as vanilla, middle notes like nutmeg, top notes
like citrus and antiperspirant substance like aluminium chloride. All the notes for perfume
and aluminium chloride are bought in Johor in large amount.
TARGET MARKET

Our ideal customer is between the age of 13 and 58 who is always on the go and needs to
stay fresh. This sweatproof perfume is for both men and women where there are three types
of perfume which is ‘Cool’ for someone who love soft scent, ‘Sporty’ for someone sporty and
needs to stay fresh, and ‘Executive’ is for the working adults. As mentioned before, all these
people are always on the go and need to stay fresh. They will need a perfume which lasts
longer and have antiperspirant which prevents unpleasant smell. This 2 in 1 antiperspirant
cum perfume which is sweat proof perfume will be their choice as they only need to buy one
bottle of sweat proof perfume instead of buying an antiperspirant deodorant and a perfume.
Thus, customers can save their money.

GEOGRAPHIC SEGMENTATION

Silky Essence is targeted to be distributed throughout Malaysia from the sale center. All the
retailers will get the Silky Essence Sweatproof Perfume from the sale center which is located
in Klang.

Location of factory:

P.l.O Kawasan Perindustrian Pasir Gudang, Pasir Gudang, 81700 Johor.

Sale center:

AEON Bukit Raja Shopping Centre F1 Persiaran Bukit Raja 2, 41150 Klang, Selangor.
DEMOGRAPHIC SEGMENTATION

Silky Essence provides three types of sweatproof perfume because different customers have
different tastes and age. Sporty type of sweatproof perfume is for the athletics to always stay
fresh, Cool is for someone who loves soft flower scent while Executive is for the working
adults. With Silky Essence Sweatproof Perfume, they do not have to buy expensive imported
perfumes to smell good.

 This perfume is going to be advertised through magazines like Remaja, Seventeen,

Cleo, Wanita, Nona, Maskulin and Rapi. On the advertising segment, the perfume
can be smelled by rubbing the section on specified perfume type which is Cool,
Sporty and Executive.
 Silky Essence Sweatproof Perfume will also be advertised in radios to attract
customers.
 A demonstration on random audience will be done to make them believe how
effective Silky Essence Sweatproof Perfume is.
 We will also sell our product in a few events to introduce customers to Silky Essence
Sweatproof Perfume.
 Our products will be distributed to malls like Tesco and Giant.
 An official website of Silky Essence will be created to promote our products.

PSYCHOGRAPHIC SEGMENTATION

Silky Essence Sweatproof Perfume is a local product produce by our own factory. Thus, the
price will be cheaper and reasonable making it convenient for customers from all types of
background. During our first promotion, we will give out 1000 sample units of Silky Essence
Sweatproof Perfume for free. This is to attract customers to continue buying our products
later on. Our sweat proof perfume also will be filled in a nicely designed bottle in order to
attract the customers especially the youngsters.
STRENGTHS AND WEAKNESSES

Strengths Weaknesses
1. Management is committed and 1. No direct delivery capability.
confident. 2. Need more sales people.
3. No trial done yet.
2. A new innovative product is being
4. Lack of an established reputation.
produced.

3. Location of sale center is strategic

and convenient for customers.

4. Special benefits on products

offered.
MARKET SIZE

Market size is the total potential of sale that is expected from the target market. The potential
of sale also include the sale of competitors’ products within the same market at the same
area which is Klang. The market size is often noted in unit of sales for specific period i.e
daily, weekly, monthly or yearly.

We have made some research for our market size and it shows that the total sale of
perfumes in Klang is RM 13 247 114.00 annually. The table below shows the companies
present in Klang and their total sale per year.

Competitors Costs (RM)

Perfume Aura Life 805 000.00
Perfume Collections 1 000 000.00
F&E Perfume 767 300.00
Silky Essence 474 799.00
Others 10 200 015.00
Total 13 247 114.00

MARKET SHARE
After the market size and competitors have been identified, our business then proceeds to
estimate how much market we can occupy or control. This estimate is known as market
share.

Estimated potential sales of business can be determined by market share after taking into
consideration the market size and competitor influences. Market share is often represented
in terms of percentage of potential market size that we own.

There are other competitors situated in Klang. They sell perfume without sweatproof
function. The table below shows name and address of competitors.

Company Address
Perfume Aura Life Pelabuhan Klang,Klang, Selangor, Malaysia
Perfume Collections Bukit Raja Shopping Centre F13 Persiaran
Bukit Raja 2, 41150 Klang
F&E Perfume Klang Parade 2112 Jalan Meru, 41050 Klang
Others AEON Bukit Raja Shopping Centre and other
parts of Klang

Market Share after the entrance of Silky Essence Ent.

Competitors Percentage of Market Costs (RM)

Share (%)
Perfume Aura Life 6.08 805 000.00
Perfume Collections 7.55 1 000 000.00
F&E Perfume 5.79 767 300.00
Silky Essence Ent. 3.58 474 799.00
Others 77.00 10 200 015.00
Total 100.00 13 247 114.00

Market Share

6.08%
7.55%
5.79%
3.58% Perfume Aura Life
Perfume Collections
F&E Perfume
Silky Essence Ent.
Others

77.00%

SALES FORECAST

SALES PROJECTION
 Month 1 1,250,000

Month 2 1,115,000

Month 3 1,120,000

Month 4 1,125,500

Month 5 1,150,000

Month 6 1,150,000

Month 7 1,150,000

Month 8 1,197,500

Month 9 1,200,500

Month 10 1,135,000

Month 11 1,135,000

Month 12 1,150,000

Total Year 1 13,878,500

MARKETING STRATEGIES

PRODUCT
Silky Essence Sweatproof Perfume provides 2 in 1 features where customers do not have to
buy two different items; deodorant and perfume which will cost more. Besides, perfumes
which exist in market are not sweatproof. Thus, it will not last long. These sweatproof
perfumes make customers feel worth it as it last for 24 hours. Interesting designs of perfume
bottles are made to attract customers. There are three types of perfume which is ‘cool’,
‘executive’ and ‘sporty’. All of it has for both men and women. Pictures below show the
designs of Silky Essence Sweatproof Perfume.

PRICE

Silky Essence Sweatproof Perfume offers an affordable price for customers compared to the
perfumes sold by other companies.
Based on Cost

Quantity per month 30 000

Total cost production (RM) 474 799.00
Price perfume per unit (RM) 21.60
Price per unit to wholesaler (RM) 28.10
Price per unit to retailer (RM) 36.50
Market price (RM) 39.90

Based on competition

Competitors Price per unit perfume (RM)

Perfume Collections 30.00
Perfumer Aura Life 35.90
F&E perfume 39.90

PLACE

Location of factory:

P.l.O Kawasan Perindustrian Pasir Gudang, Pasir Gudang, 81700 Johor.

Sale center:

AEON Bukit Raja Shopping Centre F1 Persiaran Bukit Raja 2, Klang,41150 Selangor.
h
ilW
a
t
R
r
e
m
u
s
n
o
C



The factory is located at Pasir Gudang, Johor and the sale center is located at Klang,
Selangor.
All of our products will be sent to sale center to be sold directly to customers and
retailers.
Retailers will also get our products from sale center or direct from factory.
A lorry is used as vehicle to send all the products.

Distribution Strategies

PROMOTION


W
CRet
R
ons
hol
et ai
um
els er
aler
er

Silky Essence Sweat-proof Perfume will be promoted through our own website,
www.silkyessence.com.my
10 000 small samples of Silky Essence Sweat-proof Perfume will be distributed to
customers in order to attract them to this new product.
  We will promote our products in events attended by old and young generations.
 Our products will be distributed to pharmacies like Watsons and Guardian and also
shopping malls like Tesco and Giant.
 In order to promote Silky Essence Sweat-proof Perfume, we will offer the third bottle
for half price in one purchase.

MARKETING BUDGET

Items Fixed Asset Working Capital Other Expenses Total

(RM) (RM) (RM) (RM)
Fixed Asset
- Vehicle (lorry)
Working Capital 60 000.00 60 000.00
- Salary, EPF and SOCSO 2 700.00 2 700.00
- Promotion 20 000.00 20 000.00
- Fuel 500.00 500.00
Pre-Operations & Other
Expenditures 3 000.00
- Grand opening 3 000.00 300.00
- Signboard 300.00 -
- Deposit (rent,utilites, etc) - 150.00
- Business registration 150.00
&licences 1 150.00
- Insurance & road tax for 1 150.00
motor vehicle

TOTAL 60 000.00 23 200.00 4 600.00 87 800.00

PROCESS PLANNING
Symbol used in the Process Chart
Symbol Activity Description
 Operation Activity that modify, transform
or give added value to the
input.

Movement of materials or
Transportation goods from one place to
another.

Inspection Activity that measure the

standard or quality.

Process is delayed because in

Delay process materials are waiting
for next activity.

Finished product or goods are

Storage stored in the storage area or
warehouse.

Flowchart for the production of perfume

Production planning
Calculation for output per day

Average sales forecast per month = RM1,156,541.00

Price per unit (wholesaler) =RM 28.10

(direct retailer) =RM36.50

Market price =RM39.90

Number of output per month = 100,000

Number of working days per month (24days)

The amount of output to be produce = amount production of product

24days
= 100,000
24
= 4167 bottles per day
RAW MATERIAL REQUIRED

Material Quantity Total Price per Total price

material unit (RM)
requirement (RM)

Perspirant 10ton 10ton 15,000 15,000

Top notes 10,000L 10,000L 8,000 8,000

Middle notes 10,000L 10,000L 8,000 8,000

Base notes 10,000L 10,000L 12,000 12,000

Total 43,000
Packaging

Quantity per Price per unit Total Price

Description Specification
month (RM) (RM)

Bottle Width:6cm, 100,000 0.75 75,000.00

length:8cm

Labeled sticker 5cm 100,000 0.15 15,000.00

Total amount per month (RM) 90,000.00

Machineries and equipment requisition planning schedule

No. Machine Quantity Price per unit Total price

(RM) (RM)

1 Filling 1 18,000 18,000

2 Capping 1 5,000 5,000

3 Labelling 1 8,000 8,000

Total 3 31,000 31,000

BUSINESS AND OPERATION HOURS

Time of operation:

Monday to Friday : 9:00 am– 5.30pm

Saturday-Sunday : Closed
 OPERATIONAL WORKSHIFT

TOTAL
WORKDA
Y HOUR
PER DAY PER WEEK WORK
PER
PER
MONTH
MONTH
POSITION

WORKIN NO. OF WORKIN NO. OF

G G
WORKE WORKE
HOUR R HOUR R

MANAGER 7 1 42 1 24 168

ADMINISTRATIO
N 7 1 42 1 24 168

EXECUTIVE

MARKETING
7 1 42 1 24 168
EXECUTIVE

OPERATIONAL
7 1 42 1 24 168
EXECUTIVE

FINANCIAL
7 1 42 1 24 168
EXECUTIVE

WORKER 1 7 1 42 1 24 168

WORKER 2 7 1 42 1 24 168

TOTAL 49 7 294 7 168 1,176

OPERATION BUDGET

OPERATIONS EXPENDITURE

Fixed Assets RM

Machines and Equipment  31,000

   
   
   
Working Capital  
Raw Materials & Packaging 133,000
Carriage Inward & Duty  -
Salaries, EPF & SOCSO  2000
   
   
   
   
Other Expenditure  
Other Expenditure  -
Pre-Operations  
Deposit (rent, utilities, etc.)  500
Business Registration & Licences  -
Insurance & Road Tax for Motor Vehicle  1000
Other Expenditure  1000
TOTAL 168,500
COST BUDGET
*Partnership * Manufacturing
PROJECT IMPLEMENTATION COST AND SOURCES OF FINANCE
DEPRECIATION SCHEDULES
LOAN & HIRE-PURCHASE SCHEDULES
PRO – FORMA COST & INCOME STATEMENT
PRO – FORMA BALANCE SHEET

SILKY ESSENCE ENTERPRISE

PRO-FORMA BALANCE SHEET
        Year 1 Year 2 Year 3
  ASSETS      
       
Non-Current Assets (Book
     
Value)  
  Land & Building 150,000 150,000 150,000
  Office Equipment 15,200 11,400 7,600
  Renovation 4,000 3,000 2,000
  Furniture/fitting 8,000 6,000 4,000
       
  Vehicle (Lorry) 48,000 36,000 24,000
       
       
       
  Machines and Equipment 24,800 18,600 12,400
       
       
       
  Other Assets      
  Deposit 3,000 3,000 3,000
       
  253,000 228,000 203,000
  Current Assets      
  Stock of Raw Materials 115,000 153,000 187,083
  Stock of Finished Goods 115,000 185,000 245,600
  Accounts Receivable 745,250 994,500 1,216,042
  Cash Balance 11,274,363 27,097,134 46,868,545
  12,249,613 28,429,634 48,517,270
       
  TOTAL ASSETS 12,502,613 28,657,634 48,720,270
       
  Owners' Equity      
  Capital 50,000 50,000 50,000
  Accumulated Profit 12,037,274 28,123,654 48,269,407
  12,087,274 28,173,654 48,319,407
  Long-Term Liabilities      
  Loan Balance 295,039 221,279 147,520
  Hire-Purchase Balance 44,800 33,600 22,400
  339,839 254,879 169,920
  Current Liabilities      
  Accounts Payable 75,500 229,100 230,944
       
  TOTAL EQUITY & LIABILITIES 12,502,613 28,657,634 48,720,270
FINANCIAL RATIO ANALYSIS
GRAPH FINANCIAL RATIO ANALYSIS