We are very grateful because we can complete our group assignment on time that given by our lecturer Dr. Azizah Omar. This assignment could not have been complete without cooperate and participate from our group members.
Firstly, we would like to express our deepest thanks and appreciation to our lecturer for Principles of Marketing (ATW 241/3), Dr. Azizah Omar. Dr. Azizah Omar always gives us support and guide on the way to do our assignment in purpose to produce a creative good to satisfy our customer's need. We feel very thank for her support and guidance that enabled us to complete our work within the time and successfully.
Lastly, we also appreciate for our family, seniors and friends. They give us full of support and constructive suggestion for our assignment from the beginning till the end. Thank you.
Enhance Plastic Industry Sdn Bhd is a local company that located in Ipoh, Perak Darul Ridzuan. Enhance was originally engaged in manufacturing of plastic injection products. The mission for Enhance is to produce high quality plastic bottles and containers for customer. Enhance is trying to explore their business to global market and establish wider acceptance of their products. They continue emphasize on research and development (R&D) to improve design and high quality products to meet the demands of the marketplace. Enhance specialize in development and manufacturing of HDPE, PP and PET Bottles.
Enhance is one of the Malaysia sport water bottle supplier. They have produce sport water bottles for other well-known brands and involve in sport games such as events and celebrations. Enhance Plastic Industry Sdn. Bhd seen that water bottles is an important instrument in our daily life providing fresh water so they tried to produce some sport equipment to satisfy customer's need such as Plastic Cones and Plastic mouth guard.
Enhance manufacturing plastic bottle and containers more than a decade ago are still actively associated and have a lot loyalty customer because Enhance always emphasizes on mutual benefits for their customers and social. They building up and maintaining a win-win business relationship with customers.
Enhance Plastic http://www.enhanceplastics.com/
2.0 CURRENT MARKETING SITUATION
Marketing action plan is a way of putting a structured series of activities to get a predictable result of our product. By this marketing action plan too, it provides information for us to target our market and more recognize our current market status. Our new product “Eco Bottle” will be launching in July 2017, in the first six months, we will have a series of activities to publicize and promote our new product. By this, here are the summaries of the action program during six months period prior to the launch of Eco Bottle.
January We will analyze the needs of customer and comply with our revised marketing strategy and objective by research the current market status. Eco Bottle's analytical such as event based marketing and trade promotional campaigns will be used for promote and testing the responds of public.
February We will focus on advertising our new product, Eco Bottle to the public. By this there are many ways that we can use for advertising our new product, such as radio, television, online advertisement to share out the information about our new product to the public. Besides, by emphasizing the uniqueness of Eco Bottle, we can more easily convince our targeted customer to know more about our new product.
March After advertising, we will do some promotion to promote our new product. For example, we will offer the promotion to the early birds who ever buy our in the first two weeks with, such as giving free gifts or promotion buy three free one.
April After we distribute our new product to all the retailers. At the same time, we will conduct a trade sales contest to them. By this sales contest, the highest sales will receive valuable incentives and grand prizes or some bonus. Thus, all of the retailers will try their best in selling our new product. This can improve our company sales and profits by their teamwork to sell Eco Bottle.
May When the Eco Bottle on going selling, we will have some publicity to boost up our new product at the same time. When our product already on sell in the market, people will have many questions about our product. So, we need to have some roadshows or demonstration about our product. By this, we can invite celebrities to promote our new product and this wo;; attracting more people to come and get the information about Eco Bottle.
June All of the action programs in the previous months will be evaluated. We will analyze the results of customer satisfaction surveys and prepare a finalize report to make sure the real problems of our Eco Bottle. This will provide the feedback for our new product so it can create awareness, improvement and excitement about our new product in the future.
Product Review and Current Marketing Situation
Enhance Plastic Industry Sdn. Bhd. was originally engaged in manufacturing of plastic injection products. Following is strategic decision to specialize in development and manufacturing of HDPE, PP and PET bottles. Now Enhance with its new focus, had not only expanded his products in local Malaysia, but had enhanced it capability in terms of foreign market.
By this, Enhance Plastic Industry Sdn. Bhd. now captured 25% of the bottle sales in the Malaysia plastic bottle market. Enhance plays a role to produce high quality bottles and containers. To achieve this goal, Enhance would continue to emphasize on research and development to improve our design and quality of products to establish wider acceptance of such products in Malaysia as well as global market.
Now, we would like to cooperate with Enhance Plastic Industry Sdn. Bhd. to launch a new product which called Eco Bottle. Eco Bottle is a kind of bottle which will filter the water through using the filter stone. By using the Eco Bottle, we will get cleaner and clearer as well as healthier water for drinking.
Enhance expects to dominate in the regionally green or recycle market shortly and by that time the product will be globally well known and the demand for it in many countries all over the world will be incredibly huge. The company then will start to expand their production line of the Eco Bottle as well as fast the acceleration of export to cover the demand. After succeeding globally product, the company will try to develop the product to be more efficient with less side effects or more useable as possible also Enhance will try to reduce the amount of the unnatural materials to remain the company green policy.
Positioning and Differentiation
Now, there are problems which tell us, “What is the special of Eco Bottle?” “Why should I buy Eco Bottle?”. Yes, there should be some good feature of Eco Bottle which worthy for customers to buy it.
In the market right now, there is no any bottle which got the leach to filter the water in the bottle itself. Our Eco Bottle prepared a good functional leach for filtering the water when we fill in the water into the bottle. At the same time, other bottles which are selling in the market right now don't have this function. They just like a normal bottle with good quality plastic which would not release the toxic from the plastic. However, this kind of water filtering bottle haven't be seen in the market.
Nowadays, green products are really popular and welcome by the consumers in the market. Besides, the quality of water now is quite worrying and insecure for drinking. However, by using our Eco Bottle, these kind of problems will be solved and can give a better quality of water for drinking. Eco Bottle had this strong feature which will attract customers in the market and for sure this will be a fantastic selling point of our Eco Bottle.
4. Marketing Strategy
4.1 Market Segmentation
With such an idealistic and optimistic objective, it is without doubt that Enhance Plastic Industry will face some difficult issue in making the product a success. In launching this new product, the main issue is the brand name that might not been known by many people compare to the big company like Tupperware. Therefore, we wanted to send out a clear message to audiences and offer an appeal to buy the new product of Enhance Plastic Industry. This is important to ensure the brand is marketed to fit customer ideals and needs.
Furthermore, the new product of the Enhance Plastic Industry is to target the market share of whole range of age from 18-64 years old consumer that consider the most of the uses of bottle. So, we need to invest heavily in promotion and advertising to attract consumers' attention. This product is so important and targeted to the low and middle income consumers market, so the product must be affordable with reasonable pricing structure. In addition, we trying to use an emotional peace of mind that consumer believe that the product is comfortable, safety and make their lives easier when using this product.
The main marketing objective that Enhance Plastic Industry wanted to achieve is the Enhance plays a role to produce high quality plastic bottles and containers. To achieve this goal, Enhance would continue to emphasize on research and development to improve our design and quality of products to establish wider acceptance of such products in Malaysia as well as global market.
To achieve the marketing objective, Enhance needed to do more campaign and promotion for market plan in differentiation for their product from the competitive in the industry. This will increase the product awareness among people with the sense of awareness. A quote well said that “prevention is better than cure”. Through mass advertising on channel such as magazines, website and television shows that Enhance were targeting age around 18-64 years old youngsters to adult to keep them healthy. Enhance is aim for this age group people because of the population of this age group people is large, it is around 20 million of the whole population in Malaysia according to the record in 2015.
Other than that, Enhance is also aim for the people who is studying and working because these are the people who will use the bottle frequently. Moreover, this product will begin to be sold in whole Malaysia no matter which area. Even though some of the state in Malaysia are not as prosperity as Kuala Lumpur, Pulau Pinang and Johor, but all of the people may need the Eco bottle because it is so convenient especially to the student and worker. This Eco bottle will continue to enhance its market to international from ASEAN to Asia and after that the whole world.
In addition, this Eco bottle is also aim for those who love for travelling. It is quite suitable for those people who travel in other country like India because India don't have much clean water supply and also the traveller may not be confident to the water that sell in those country. Besides, the people who love for sport is also one of our target. It is because people normally will finish the drinking water quickly after sport, so they can collect the pipe water to become clean water by using our Eco bottle.
4.2 Target Market
Our ideal customer is the people who between ages of 18-64 who are interested with this Eco Bottle. People will usually use the drinking bottle is the student and worker. So, we are trying to target the young people between the ages of 18-64 is because this group age of people are the people who need the bottle much and take good care for the bottle. Another reason for selling the filter bottle to this age group of people is because they don't usually stay at home, so they have to bring the drinking bottle along with them to get the water and filter it to become the clean water in. Since that our target market is for adult, they can easily get the product from our shop or the retailer near their places.
5.0 Marketing Mix
Product is anything that can be offered to a market for attention, acquisition, use or consumption that might satisfy a want or need. In a nutshell, product is a key element in the overall market offering.
After making a market survey our group found that the idea for “Eco Bottle” was conceived based on a number of reasons. This filter bottle is so convenient to the user in their everyday life. They can bring it along with them wherever they go because it can get the water directly form pipe water and filter the water. For instance, the user can bring the bottle when they are travelling in other country. This filter bottle is known as “Eco Bottle” is a new product in our company which introduced to the worker and student. “Eco Bottle” has the following characteristics:
(i) Environmentally-friendly because it is no harm upon ecosystems.
(ii) New market for the company because it is a new product.
(iii) Convenient to the customer especially travelling to others country.
(iv)Save cost because the cost of stone is cheaper than water filter.
The filter of this new product is containing the 4 types of stone, sand, pebbles, reeds and cotton material. These stones can filter the pipe water into the drinking water, so the user of this bottle can just drink the water which is filter from the pipe water.
Price is the amount of money charged for a product or a service, or the sum of the values that customers exchange for the benefits of having or using the product or service. Price plays an important key role in creating customer value and building customer relationships. Therefore, setting new price for new product is critical as it determine how the product survive in the market.
In the market that has many competitor is selling the same product. We plan to set our new product for RM30 because this drinking product has the function of filtering. According to the market, in bottle product there are still no competitor who produce the bottle including the filter function. So we pick the price higher than the normal drinking bottle. We believe that “Eco Bottle” is able to compete with the new design compare to other indirect competitors.
Promotion is a way of communication of value propositions from a company to its target market. By effective promotion, the company can build and maintain a good relationship with its customers. Thus, Enhance Plastic Industry is using promotion mix to engage its target market. The promotion mix consists of advertising and sales promotion.
Promotion of this Eco bottle can be done by advertising. The electronic media and printed media can be used as tools of advertisement and provide a platform for company to communicate to its customers. The printed media is newspaper and magazine while the electronic media is television and radio. Omnicom Media Group reports that radio, television and newspapers are the top 3 high growth media. They will help to improve effective promotion because promotion of Eco bottle via these two kinds of media can be made in large scale. As a result, Eco bottle is well explored to public especially our target markets who are at the age range between 18 and 64. Nowadays in advance technology, most company also using internet such as Youtube, Facebook and Twitter to promote their product, so Enhance Plastic Industry also targeting to use this kind of advertising to promote the new product.
Sales promotion can be done in our distribution channels which are retailer shop, such as Tesco, Aeon, Giant, Econsave and more. Price discount, purchase with free gift and offer a new free filter are the ways of sale promotion. This promotion strategy is to communicate about our product and attract the potential customers to have their first trail of our product. Loyal Reward Program also can be done by accumulate spending more than RM300 can get a chance to travel to other countries such as China.
Moreover, some sale promotion events can be organized in the well-known shopping centres by doing roadshow. There are many well-known shopping centres in Malaysia such as Queens Bay Mall in Penang, Mid-Valley in Kuala Lumpur, Ipoh Parade Shopping Centre in Ipoh and so on. The shopping centres are the strategic spot to organize Enhance Plastic Industry promotion events. In the sale promotion events, besides offer price discount, free sample or free gift, some games or activities can be conducted such as free testing the filter water from our bottle, live demonstration on how the water is being filter.
Distribution refer to how the company make the offering available to target customers. So distribution strategy is crucial to create customer value and competitive advantage for company. A company should identify the types of channel members available to carry out its channel work. Enhance Plastic Industry will employ a new distribution strategy which is intensive distribution. This strategy is effective because the company will stock the product in as many outlets as possible. Enhance Plastic Industry will exert indirect marketing channel where the marketing channel containing one intermediary levels which is the retailer such as Tesco, Giant, Econsave, Aeon and other retailers before the product marketable to consumer. A detailed explanation will be done in below.
Producer Retailer Consumer
Besides, retailing includes all the activities involved in selling goods or services directly to final consumers for their personal, nonbusiness use. Retailers also play an important role for Eco bottle to ensure that the products reach the final buyers. Supermarket is one of our main target distribution channel because it is relatively large, low-cost, low-margin, high-volume, self-service operation designed to serve the customer's total needs for household products. Examples of supermarket in Malaysia are Tesco, Aeon, Econsave and so on. The Enhance Plastic Industry product will be transferred from its manufacturing plant to the retailers by using company's lorries.
Detail of Distribution of Task
As the leader of our group assignment, I declare that all of my group members were fully contributed towards our group project. This project would not be completed without their full involvement and fully committed efforts. We all put in a lot of efforts in getting the required information in order to get our study and survey completed. Here is our group member's part of contribution:
No. Name Part of Contribution Signature
1. Lau Boon Bat 1. Cover
2. Table of Content
3. Competitive Review
4. Detail of Distribution of Task
2. Khor Choon Yuen 1. Acknowledgement
3. Lai Chun Wei 1. Action Programs
2. Current Marketing Situation
3. Positioning and Differentiation
4. Choong Tuck Kun 1. Executive Summary
2. SWOT analysis
4. Objective and Issue
5. Lee Weng Thong 1. Marketing Research
3. Marketing Plan Segmentation and Targeting
4. Marketing Mix
Enhance Plastic Industry Sdn Bhd operate and manufacture more than a decade. The company produces high quality plastic bottles and containers for customer because they hope customers use the bottle without ham their healthy. Thus, they produce the new product ‘Eco Bottle'. Eco Bottle is a kind of bottle which will filter the water through using the filter stone. By using the Eco Bottle, we will get cleaner and clearer as well as healthier water for drinking.
This product is environmentally-friendly because it is no harm upon ecosystems and sustainability. Besides, the bottle that they produce can help consumer save cost because the cost of stone is cheaper than water filter and when they finish drinking their water, they no need spend money to buy water.
Enhance Plastic Industry Sdn Bhd believes that through this marketing plan, Eco Bottle will be distributed well and the consumers are aware of their existence in the market. The financial goals Enhance Plastic Industry Sdn Bhd and the demand will be increase. Thus, the company can explore a new market for company and convenient to the customers especially travelling to others country. Enhance Plastic Industry Sdn Bhd expected to be marketed globalize in the next five years from local markets to foreign markets.
In the conclusion, Enhance Plastic Industry Sdn Bhd will able to gain trusts and able to gain a lot of loyalty consumers from this new product. This will give the advantage for Enhance Plastic Industry Sdn Bhd to explore their business to global market and establish wider acceptance of their products. The ‘Eco Bottle ‘will be sellable for Enhance Plastic Industry Sdn Bhd.
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