SCHOOL OF COMMUNICATION STUDIES DIPLOMA IN MASS COMMUNICATION

MARKETING PRINCIPLES MK201/AD2003

Marketing Plan
Lecturer : Ms Norwati

Name & Student ID : Nabila Nadia Adnan SCM005438 Puteri Khairunnisa Mohd Shafiq Irfan Rizqin Intake Due Date : January 2009 : 17th August 2010 SCM004573 SCM005480 SCM005259

MEDI-MESRA MANAGEMENT CARE SDN BHD Executive Summary

Medi-Mesra Care Management Sdn Bhd was formed on August 3rd 2004 and operates in the event management business over the past 2 years. Between the period time, Medi-Mesra Care or well known as MMC Sdn Bhd had organized 5 times of the largest exhibition in Malaysia which is Malaysian Bumiputera Real Estate Agents Company. The focus of the exhibition was to promote quota lots of Bumiputera which have not successfully sold by the housing developers before it been waived by the local authorities. In this marketing plan report, certain topics will be discussed and highlighted in order to present our marketing plan, such as our strategic plan: The Mission/Vision of the company. The mission of the company is to help the housing developers and Bumiputera race to make the right choice before investing in the real estate field. Our vision is that we are planning to set soar with organizing exhibition for local and international products and we are sure it is going to be successful with our trained and experienced management. Followed by the strategic plan, certain analysis report will be elaborated such as on the SWOT analysis, PEST analysis, Porters 5 Forces analysis and the Industry analysis. For the SWOT analysis, this segment will touch on the Strengths, Weakness, Opportunities and threats faced by MMC Sdn. Bhd. PEST Analysis will be focused on the Political, Economical, Social and Technological side of MMC Sdn Bhd.
For Industry analysis, this segment will touch on the growth potential of Property Exhibitions in Malaysia, specifically on Bumiputera Property (BPEX). In this case the critical target market has already been identified, that is the Bumiputera market. Thus we should look at the other aspects of the analysis. On the final part of the marketing plan, in case the company ended up on the losing side and has to

close its business in as far as Property Exhibition is concerned; the Contingency Plan will be discussed with further elaboration.

Company and Service Description

Medi-Mesra Care Management Sdn Bhd is established on August 3, 2004 and has been operating in the field of exhibition management for 4 years. During that period, Medi-Mesra Care Management Sdn Bhd or better known as MMC Sdn Bhd had organized thirteen times the largest exhibition of Bumiputera Property Exhibition (BPEX) which is the focus of the exhibition to promote Bumiputera quota lots which not yet sold by housing developers and indigenous people make the right choice before investing in Real Estate. Bumiputera Property Exhibition is divided into three categories, namely, Selangor Bumiputera Property Exhibition, Kuala Lumpur and the Klang Valley. So far a total of RM150 million in real estate has been sold through exhibitions organized. The company plan to expand by organizing exhibitions in a different field such as in promoting Malaysian products locally and internationally. They strongly believe that they can implement them with the efficient management and training.

Strategic Plan: Mission/Vision

1. To help ensure that the government can increase the Bumiputera equity in the property

sector.

2. To increase the sales of Bumiputera quota lots and bring awareness to potential buyers

and opportunities in real estate ownership.

3. To provide greater opportunities, especially for indigenous companies to expand their

business by participating in exhibitions in and outside the country.

4. To make the exhibition as a "stop center" to the buyers and developers so they can meet

to exchange ideas and views other than one way to powerful sales with more effective ways.

Situation Analysis
SWOT Analysis
Preamble/Introduction Medimesra Care Management Sdn Bhd is an event management company which focuses on organizing Bumiputera Property Exhibitions (BPEX). The main reason in organizing this exhibition is to help the developers to market their bumiputera quota lots which have not been sold to the Bumiputeras prior to being released by the Local Authority. This will increase the bumiputera equity thus helping the government in achieving 30 percent bumiputera quota. Its also to create awareness among bumiputeras on the property market and as a source of information for those who intend to purchase property either for investment or own use. Thus, this assignment is an insight of the SWOT Analysis conducted on MMC Sdn Bhd.

Strengths
1. Strong Advertising & Promotion Package.

MMC has a strong A&P package which it has established since its conception 4 years ago via constant and continuous subscriptions to electronic media and prints. Each year the company organized several property and real-estate exhibitions, focusing on the Bumiputera Property Market aptly named as BPEX. For each of these events, the company spends a minimum of RM100, 000.00 for A&P alone. TV viewers and radio listeners are constantly reminded of the upcoming Bumiputera Property Exhibition every hour or so throughout the

country at least two weeks leading to the opening of the event and captions of this event can be found in major local newspapers as well.

2. Wide and updated database of faithful exhibitors.

3. Central and strategic Location Thus easy access to public viewing and able to attract walk-in visitors 4. Strong support/ good rapport with Local Authority /Ministry as well as venues.

Weaknesses
1. Dependency on single contractor for technical expertise and support.

2. Events are localized to KL/Klang Valley/Selangor Market

3. Not much marketing efforts to attract foreign visitors. The focus is solely on Bumiputera market.

Opportunities
1. Expand into new frontiers. This company can advanced much further in the business of event management. Presently it is one of the top event management companies in as far as portraying property and real-estate industry in Klang Valley is concerned. By organizing and trade marking the Bumiputera Property sector (BPEX) as its main event, this company has

already established a name in the market and is able to attract visitors and exhibitors alike. Thus, it is high time for the company to extend its prowess in event management to new frontiers by first expanding into related field of events such as interior decoration, landscaping and probably organizing seminars and workshops on similar topics before going further such as organizing exhibitions overseas.

2. So far the company has confined its exhibitions to Kuala Lumpur/Klang Valley/Selangor area even though it has the capability and technical know-how to progress to other states. Although the market in the present vicinity is still huge and a lot has yet to tap, this would be a good time for the company to introduce itself and establish its brand outside of Kuala Lumpur. Property market in other states specially Johor, Penang and Melaka are growing at a positive steady rate and there is not much effort garnered to market them. Not only the company will have opportunity to pioneer the property exhibitions in this states but it will also increase its database of exhibitors, sponsors, partners and clients.

THREATS
1. A number of competitors may organize similar kind of exhibitions - Which might reduce the number of exhibitors/visitors to BPEX. 2. The company daily chores are largely shouldered by a few key personnel. These wellexperienced and adroit sales persons and marketing personnel if not being properly looked after might abscond or be pinched by competitor companies 3. Government policy on bumiputera quota maybe revoked.

PEST ANALYSIS P - Political / Legal

a) Stability of government

Bumi quota special for Bumi. Other party component law protest to eliminate the status due to 1 Malaysia concept as mentioned by PKR recently. b) Law Termaktub di bawah perlembagaan fasa (154) hak bumi dalam bidang hartanah adalah sebanyak 30%. c) Foreign Trade Anyhow, foreigners also can purchase the lot but without a bumi discount.

E Economic
a) Interest rate The purchase involves interest rate when they take bank loan. It is various from bank to bank. Average bank interest is about 7% per year. b) Inflation rate

High inflation people have a tight budget to invest or purchase. c) Unemployment level The booming industry can create employment opportunity. d) Wage/price control Price much depends on the construction material increasing every year / cost on overhead.

S Social Cultural
a) Lifestyle change Choosing on property also someone lifestyle. Young investors prefer condo, with facilities and security. Adults prefer landed property for them to have more space for family gathering. A better environment creates healthy lifestyle, good area can create better education facilities, and better communities can create better communication. The developers also will study what type of demography before they limit a property to suits the market.

b) Growth rate of population.

The growth rate is a factor in determining how great a burden would be imposed on a country by the changing needs of its people for infrastructure (e.g., schools, hospitals, housing, roads), resources (e.g., food, water, electricity), and jobs.

c) Health Care.

MMC has laid out in the company policy that all the permanent staff and their immediate family are covered with medical insurance and provided health care. Medical and Health cover is also provided to the probationary and part-time staff employed during the exhibitions.

d) Level of Education. In this company, the remuneration scheme commensurate with the level of education of its employees. The minimum officers level of educations is diploma in sales and marketing from any recognized institution of higher learning, whilst the other employees have various levels of education amongst themselves. It is the companys desire to be able to support its permanent staff to further their education in the relevant fields in the future.

e) Language All the advertisements and A&P material used for this company is using Bahasa Malaysia and English as a main medium of communication. All the staff of the company involved in the exhibitions is well-versed in both languages. This is important as most inquiries are in English and the medium of communication with the foreigners are usually in English.

f) Demographic

Customers/consumers dont age. They rather move from one demographic segment to the next. As in the case of house buyers, the table below might be able to give a better insight as to what the property buyers in Malaysia is like.

Age 20 to 40 40 to 70

Preference Flats/Apartment/Condo Landed Property (Bungalow/Semi-D/Terrace)

Occupation level Young executives Director/Senior Execs/ Business owners

g) Human Rights A number of the company employees are from Chinese and Indian background. Theyre specially selected to cater strictly for the Chinese and Indian speaking customers but since the first exhibition held in 2005, this has only happened twice as most would be able to converse in English. The company also employed a partially disabled person as a tea lady.

T Technological
a) New Product Excellent and first-rate developers will always come out with new and innovative concept of living for their upcoming real estate projects by featuring eco-friendly buildings which are incorporated with energy saving and new-fangled safety features. These subtle technological advancements will give their projects an edge over others

even though the basic design concepts are still maintain the colonial, traditional or modern outlook. MMC as the event organizer will always ensure that the houses and building featured in its exhibitions are representation of these concepts. Some booth are also allocated to companies wanting to feature ad introduce their latest and techno-savvy products for housing industry.

b) Patent Protection Once the newly-introduced features have been accepted and well-received by the customers and the public, the next step is usually to patent it as it will protect the companys interests as well as giving exclusive rights to the products. As BPEX is becoming a household name and gathering more and more customers, MMC has taken a wise decision by patenting its BPEX logo so as to ensure no competitor company is able to use it in their Marketing Strategies.

c) Internet Availability In this internet-savvy world today, it will be considered a great sin if a company failed to seize the opportunity to utilize the internet as its marketing tool. Thus, MMC, ever since its conception, has already registered its website and use the internet as a marketing tool. A large proportion of its sale and business is conducted via internet.

d) Research and Development Successful real estate companies usually re-invest a bigger percentage of its earnings for R&D as in the long run it gives them better quality of building materials and

designs. This gives them an edge over their competitors and of course will ensure them a much better Return of Investments. In the case of MMC as an event organizer for Property Exhibition, R&D would also means using the latest gadgets, concepts and materials for the booth and lay-out of the exhibition area to make it more customer-friendly. This would attract more visitors who are actually potential housebuyers. Special booths are also set-up for displays of latest systems and R&D programs in the real estate industry for public viewings.

Porters 5 Analysis

1. Rivalry
MMC has several competitors in the same line on the market, i.e, Real Estate Event Guide Malaysia Sdn Bhd and Pro Teck Sdn Bhd.

2. Threat of Substitutes
The threats of substitutes faced by MMC would be the real estate developments, such as Bukit Kiara properties for example, as they are able to conduct their own property event.

3. Buyer Power
The buyer power threat faced by MMC Sdn Bhd is the economical state of the consumers in Malaysia. Should the economy is faced with setback or high inflation, the prices of real estate values would increase, resulting in deterrence for the consumers to buy or visit the exhibition events. It is also depends on whether the consumers would switch to other competitors such ASI Solutions and Real Estate Event Guide Malaysia.

4. Supplier Power
A good thing of MMC is that it is faced with few substitutes, which leads to BPEX holding a high supplying power. This enables BPEX to control the prices set for the consumers.

5. The Threat of New Entry

Recently in 2008, ASI Solutions, originally a developer company has entered the the Market and expanding their field on Real Estate Events as well.

INDUSTRY ANALYSIS
This Segment will touch on the growth potential of Property Exhibitions in Malaysia, specifically on Bumiputera Property (BPEX). In this case the critical target market has already been identified, that is the Bumiputera market. Thus we should look at the other aspects of the analysis. It is known fact that property market is on the rise almost everywhere in the world as it corresponds directly to the population growth. This is especially so in major cities like Kuala Lumpur where the ever-increasing population growth has sparked a rapid expansion on property sector. Potential customers for real estate and property market in Malaysia, especially Kuala Lumpur is huge and rapidly growing. This is mainly due to influx of population to find a better living in this booming city. For the past 5 years alone, the average sale churned out during each Bumiputera Property Exhibition exceeds RM 30 million. This and other relevant statistics not only shows that the real estate and property demand in Kuala Lumpur correspond directly to the population growth but also due to incursion of foreign investors and those who make Malaysia as their second home. But the rates at which the properties in KL are being built have so far lags behind the demands. The labour shortage and lack of space are among the deciding factors. The dire need for housing and real estate has somehow escalate the price of properties, not only in Kuala Lumpur vicinity but also in the Klang Valley, to some making it almost impossible for the locals to own property in the upscale and chic area.

The government of Malaysia is very much aware of these situations and has identified and planned well ahead areas to be developed and populated. The housing developers are offered many real estate projects and incentives to complete to complete them in time. This win-win ambience has made Kuala Lumpur as the most popular place to reside. It is also a favorite second-home location to foreign investors. How does this benefit companies like MMC? Being an early bird in the property exhibition sector, MMC which has already trademarked the BPEX as its main product, stands a very good chance of surviving in this competitive market. The market is so vast and the competitors are not that many. There are huge potential to take extend BPEX into new boundaries and frontiers, such as, holding exhibitions outside of Klang Valley and participating in property tradeshows and exhibitions overseas.

Marketing Program
a) Target Market and Positioning Presently, the main target markets for the BPEX are bumiputeras from various earning categories. This is mainly due to the fact that the developers involved in the exhibitions have a wide range of housing categories to offer, be it in Klang Valley or even in the neighboring states. A Market and Consumer Demographic Analysis by a top Real Estate Agent reveals that 35% of the population in Klang Valley is between 30-60 years of age and they fall into the high earning group. Slightly less than half of the population is of the middle income group. Thus, each group or category of income has their own perception as to what type of property, its quality and lifestyle offered by the product. BPEX has always offered products that cater to all categories of population.

b) Product Strategies

MMC is able to survive all these 5 years since its first exhibition mainly due to the fact that it places customers above all else. It does not favor a special product or focus on just one or two categories of housing or real estate but rather have a mix of products ranging from high-end bungalows and condos right down to the competitively priced apartments and flats on the table. The company on its own accord conducts Market and Consumer Analysis every quarterly to feel and understand the actual market desire and demographic needs. This

will then be portrayed to the relevant developers who will be chosen to participate in the exhibition. The company is very cautious in choosing its venue to hold its exhibitions so as to ensure a steady flow of visitors. The favorite venues are the Mid Valley Convention Centre, Kuala Lumpur Convention Centre and Putra World Trade Centre. Another Strategy to consider in order to attract more visitors is to hold the exhibition a month or so prior to festive seasons or during the holiday season.

c) Pricing Strategies Each exhibition held by MMC usually attracts about 80 developers as participants. In order to keep them coming back for the next exhibition and retain their participation, MMC has often given special discount for each type of booth; the amount is usually ten percent of the total price. Developers are also urged to give special discount to house buyers.

d) Promotional Strategies MMC invested a large percentage of its income into Advertising and Promotion (A&P) for each exhibition. This includes TV ads and trailers, radio ads and prints in major newspapers at least two weeks leading to the opening of the event. By doing so, the company has more or less assured of a trail of visitors to the exhibition. Apart from these, buntings and posters of the upcoming exhibitions are also posted at strategic locations such as Toll Plazas, Road junctions and Highways. Ads are also posted in the website for the exhibitions.

Financial Projection
2009 2008 RM RM 974,0 745,8 83 93 55,45 5 12,06 0 277,6 04 230,2 86 27,59 9 603,0 04 371,0 79 33,20 0 18,34 7 183,1 48 220,3 41 25,70 0 480,7 36 265,1 57

REVEN UE LESS: DIRECT COST Comission Banner and Poster Hall rental Media advertisement Other direct cost GROSS PROFIT

ADD : OTHER INCOME Interest bank received 371,0 79

214 265,3 71

LESS : EXPENDITURE Administration and Operating Expenses Accounting Fee Audit Fee Bank charges Compound and Penalty Courier and postage Depreciation Donation and gift Entertainment Fuel,parking and toll Filling fee Licenses and permits Newspaper and periodical Office rental Printing and stationary registration fee Roadtax and insurance Seminar and course fee Secretarial and other fee Tax fee (CONTINUED) Telephone and fax Travelling and accomodation Upkeep for motor vehicle Upkeep for office Upkeep for office equipment

2000 2,800 176 75 3,578 35,53 7 4,000 4,525 9,564 300 2,930 319 13,20 0 9,814 3,441 1,130 7,250

2000 2800 144 3023 34,47 0 1,200 5,385 12,76 5 300

81 9,900 8,942 3,419 3,379 330 1,100

15,30 6 380 8,510 2,515

12,80 8 10,03 0 1,172 1,735

Water and electricity

2,817 130,1 67

1,388 116,7 31

Staff cost Directors remuneration EPF and SOCSO Medical fee Salary and allowance Staff refreshment 180,0 00 4,345 1,031 43,43 5 153 228,9 64 120,0 00 480 4,259 28,25 0 1,276 154,2 65

Finance cost Hire purchase interest

TOTAL EXPENDITURE NET PROFIT/(LOSS) BEFORE TAXATION

8,556 8,559 367,6 87 3,392

1,634 1,634 272,6 30 7,259

Contingency Plans

In case the company ended up on the losing side and has to close its business in as far as Property Exhibition is concerned, it has already identified and tried out an option, which is ASDEX. ASDEX is Anjung Seri Dream Home Exhibition, an exhibition on Home Dcor items and Landscaping. MMC has held the ASDEX for two years in a row and find it can be groom as a good business.

Reference
Norashikin Taib Managing Director and Business Owner