INTRODUCTION TO MARKETINGMarketing can be defined as a satisfying needs and wants through an exchange process. In addition, marketing also can be defined as the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods and services to create exchange that satisfy individual and organization objectives. Famous marketing expert, Paul Mazur described marketing as the creation and delivers of standards of livings. Marketing is one of the most important elements in running a business. The success of a business solely depends on the strength of its marketing. Without a suitable and efficient marketing plan, business may never achieve its goals and could result in wasting of resources such as money, energy and time.A marketing plan sets out to clear objectives and lists the actions that can company to achieve their respective target and goal. Even though, it will never guarantee your company a sale, but a well-researched and coherent marketing plan will give entrepreneurs a clear directions on how to build long-term, profitable relationships in the business. Realizing the importance of marketing to ensure continuity in the company's growth, REMPEYEK WARISAN established the marketing department with tasked to ensuring that all aspects of marketing can run entirely smoothly. The marketing department is responsible for developing short-term and long-term strategies for the company to ensure the company can continue to compete with other competitors.

The most important aspect of marketing is to satisfy the needs of customers. A lack of understanding of the marketing can result in poorly developed product that fails to meet the customers needs and wants. This can hamper marketing efforts and affect sales performance, business expansion and progress. From our market research, REMPEYEK WARISAN has recognizes that each individual has different tastes and preferences. Therefore, that it is important for us to diversify our rempeyek product as a respond to our customers demand. Moreover, it can give us more edge towards our competitor.Statistically showed that the rempeyek is one of the Malaysian favourite snacks, and we can take advantage of that by innovatively introducing variety of rempeyek product. REMPEYEK WARISAN plan to introduce variety of rempeyek product to fulfil market demand such as, remepeyek udang, rempeyek kacang, rempeyek bilis, rempeyek dhal etc. privileged of our rempeyek compared to other products in the market lies in its authentic taste. It is a recipe inherited and we believed to be able to give satisfaction to our customers while enjoying our products.OBJECTIVE

To introduce variety of our rempeyek product to beloved customers.

To position ourselves as a local company, with strong ties to the community. To increase our profits by at least 10% every year

To gain 30% market share by 2018

To ensure customers are satisfied with our products

PROFILE OF PRODUCT

Rempeyek Warisan produces a variety of Rempeyek such as:

PRODUCT DESCRIPTION

We produce various kinds of rempeyek class by the material put together with the rempeyek such as anchovies, peanuts, dhal and almond. This variation gives more choices to our customers to choose any type that suits their tastes. Or customers also had the opportunity to try out the latest of our rempeyek products, rempeyek badam. This opens up a new dimension to the rempeyek business in malaysia so as to remain and evolve with the times.

One aspect that we will not tolerate is about the quality of the products we produce. We just want to give the best for our customers. To ensure the guaranteed quality of our products and the satisfaction of our customers, we decided to used high quality plastic (Low Density Polyethylene), plastic container with lids and disposable food container. It is to make sure the the products are in good condition and user-friendly. It will protect the product during the process of transportation, storage, display and sales until the product is ready for sales and use. Moreover, we also want to create instant recognition of our product.

MARKET ANALYSIS

Market analysis is one of the main factors in marketing. It is a study designed to define a companys markets, forecast their directions, and how to expand the companys share and exploit any new trends. Things that include in market analysis are target market, market size, competition, market share, sale forecast, and marketing strategy.

Our company's target market is not limited to a particular class only. However, we are realistic that for a start we need to build a strong presence in the state where company is located. Even so, in this modern borderless world of today, we will not let the opportunity to market our products through online. We are confident our products will be accepted by the market. It is based on factors that snack is a favorite Malaysian food and a choice of main dishes, especially during the festive season or feast.TARGET MARKET

Target market is the groups of people that can be the customers by fulfill their needs and wants. The market of rempeyek is very large because all people eat and like rempeyek very much. The REMPEYEK WARISAN target market is all people who like to eat rempeyek. There are several market segments that had been decided by the company.Geographic The main office and factory of REMPEYEK WARISAN is located at Sungai Petani. So, the company will target the market at whole kedah area as well as north of the country.

The sungai petani had located in the middle and bordered by island. This makes the sungai petani as a very strategic location as the site of our business. complete basic facilities such as link roads, highways and utilities can help companies to develop properly. Besides that, the distribution processes to these areas are easier because there are road and highway.

Moreover, there are many supermarkets and hypermarkets around here. So, there is large target market to reach.

When the business of company is growing, the geographic segment will be larger. We are planning to expand our target market to Pulau Pinang and Perak soon. Demographic Rempeyek a favorite snack every level of society. Therefore, the market for rempeyek is very wide and has the potential to generate profits. But the company believes the majority of buyers will consist of students and families. These groups like to eat rempeyek as the snack before the lunch break or when they hang out with their family and during the tea time.Behavioral Rempeyek are suitable to be serving at a lot of occasion like parties, festivals, feast and event. It show rempeyek are suitable at anytime and anywhere. There are a lot of benefits when users eat the rempeyek. The rempeyek had a very tasty taste, a lot of nutrient, can be bought at a reasonable price and they can eat the rempeyek without any doubt because the rempeyek are 'halal'.By identifying the target market, REMPEYEK WARISAN will be able to satisfy the customer needs and wants. In order to do that, the company must do research and development to produce the best quality of rempeyek.

3.2.1 EXPECTED TARGET MARKET

To make our product well known, we need to spread our product to our expected target market. We act as a supplier to expand our product on a certain places. Below is the list of our expected target market:

CUSTOMERS OUTLETPERCENTAGE (%)

Retailers/Resellers/supermarket40

Individual customers (offline)40

Individual customers (Online) 10

Others (function, event etc.) 10

TOTAL100

MARKET SIZE

Market size is the expected sales from target market. It is also including the competitors that had offer the same line of product and be in the same industry. REMPEYEK WARISAN target markets are the hypermarket, supermarket retail store, reseller and individual and grouping customer around kedah, perlis and pulau pinang.

Hypermarket and Supermarket

2500 Kg

Sales per month = 2500 Kg x RM 32.00 = RM 80,000.00Retail store

1500 Kg

Sales per month = 1500 Kg x RM 32.00 = RM 48,000.00 Individual customer

1 000 KgSales per month = 1 000 units x RM 32.00 = RM 32,000.00Market size per month = RM 80,000.00 + RM 48,000.00 + RM 32,000.00 = RM 160,000MARKET SIZE PER YEAR = RM 160,000 X 12 = RM 1,920,000.00

COMPETITORS

Competitors are the other companies that offer similar products or services in the industry. As an example, in the automotive industry, Proton will compete with other automotive companies that offer same products such as Perodua and Toyota. The other companies also currently have the same target market with our company. The competitors are usually the existing companies that have been in the industry for the long period. In order for REMPEYEK WARISAN to get in the market of the industry, our company must identify the competitors' strengths and weaknesses.

Competitors Swot AnalysisRempeyek BondaSTRENGHTSWEAKNESSES

Opened everyday Stable financial background

Comfortable shop Had open 6 years ago until now high price

Do not have up to date equipment

Do not have special treatment

Do not have variation of rempeyek

OPPORTUNITIESTHREATS

Growing fast food market

A new emerging and development market

New potential in Malaysia market Threat from local competitors in same area

Global economic recession

Playing in mature and saturated industry

DMelur KerepekSTRENGTHSWEAKNESSES

Opened everyday

Have membership card

Have polite workers

Have cheaper price

Had open 2 years ago until now

The shop is not well manageable

Less quality of product

Not strategic location

Lack of quality and services

OPPORTUNITIESTHREATS

Competition weaknesses

New healthier menu item

Local Urban Community

Marketing

Initiative

Government backing

Changing consumer eating habits

Price wars

Exposing to rises in the cost of cassava and dairy products.

Taxation

3.4.2. COMPANYS SWOT ANALYSISSTRENGHTSWEAKNESSES

Have many variety of rempeyek Have a special service from workers

Supply for occasional event

Provide a comfort facilities to customer

High quality of unique product

Provide delivery

Do not opened everyday Do not have membership card

Undifferentiated of products and services

Market position

Weak brands

OPPORTUNITIESTHREATS

Co-branding with other manufacturers of food and drink

Global demand of crispy chips via suppliers

Increase in online ordering market

Changing customer tastes

Change in population age-structure

Market entry of many competitors and copycat brands

Seasonal demand

Low levels of suppliers loyalty

New competition in the market,possibly with new products and or services

MARKET SHARE

Market share is the percentage of the market that had been control of the company. The table show the market size of other competitors for north of malaysia before and after the entrance . rempeyek warisan has done some research and our market share depends on it. From the observations that we made, seems like we have good potential to do this business. This is because we find that some of our competitors do not provide good services and less quality for their rempeyek. Based on random survey that we made, almost all the feedback that we got were positive. About 8 over 10 people like our rempeyek taste. Many people would like to try our product and said that this product is more delicious and has high quality compared from other rempeyek products. Below is the market share that we have estimated before and after the entrance of REMPEYEK WARISAN:

NOCOMPETITORMARKET SHARE (%)PROFITS (RM)

1.Rempeyek bonda 40748,800.00

2.D'Melur Kerepek30561,600.00

3.Others30561,600.00

TOTAL1001,872,000.00

Table above shows the market share before the entrance of REMPEYEK WARISAN

Pie chart shows the market share before the entrance of REMPEYEK WARISAN

REMPEYEK WARISAN enters the market.

NOCOMPETITORMARKET SHARE (%)PROFIT (RM)

1.Rempeyek bonda 30561,600.00

2.D'Melur Kerepek25468,000.00

3.Others25468,000.00

4.REMPEYEK WARISAN20374,400.00

TOTAL1001,872,000.00

Table above shows the market share after the entrance of REMPEYEK WARISANSALES FORECAST

Sales forecast is the expected sales that the company target to achieve. REMPEYEK WARISAN target sales for the first year are RM 201,600.00. For the second year, we estimate our sales will increase 10% from the first year which is equivalent to RM 221,760.00. For the third year, the expected sales will be increase 15% from the second year which is equivalent to RM 255,024.00.

MonthsKgSales Forecast (RM)

July201560019200

August201570022400

September2015100032000

October201570022400

November2015120038400

Decembers150048000

January 201680025600

February 201680025600

March 201690028800

April 2016100032000

May 2016100032000

June 2016150048000

Total11,700374,400

YEARAMOUNT (RM)

Total year 1374,400.00

Total year 2411,840.00

Total year 3473,616.00

Increment for year 2 (%)10%

Increment for year 3 (%)15%

SALES FORECAST FOR CURRENT YEAR, SECOND AND THIRD YEAR

MARKETING STRATEGY

PRODUCT STRATEGY

Products attributesProducts design: Mostly, the design of the rempeyek is important to make our product become more interesting in terms of shape and thick of the rempeyek.

Products quality: Quality of our products must be getting a proven by Ministry of Health and also from JAKIM that can give the HALAL logo for our company products. This will make our customer more confident about quality of our products and can contribute them to buy it.

Products features: The raw materials that our company use in production rempeyek must be high quality to make all types of our products become tastier.

PackagingThe important of packing is to make sure the condition of the products always in good condition and durable of that product. Our company chooses to use eco plastic and box to packaging our products.

The packaging of our products depends on the quantity which is:

Plastic: For small quantity, our company will pack three rempeyek in one packet. Then it will repackaging into one box which is one box contain 12 packet of rempeyek.

Box: Our company use box in packaging strategy when to make delivery to our dealer and wholesaler in terms of big quantity. It is to make sure the process of delivery becomes easy and avoid any defect of our products.

DISTRIBUTION STRATEGYPlace or distribution market means that the channel that our company use to sell our product in the market according to our target market. There are several channels that our company uses which are:

REMPEYEK WARISAN

Consumer

First distribution market is REMPEYEK WARISAN Company sell directly to consumer. Usually, this distribution is suitable for consumer who lives nearby our company area. It was easily to sell directly to consumer without through the retailer and wholesaler because it can save our cost of delivery product.

REMPEYEK WARISAN

Company Retailer

Consumer

Next, REMPEYEK WARISAN Company sells the product through the retailer. Retailer is one of the people who can make our product well known by the consumer. Normally, consumers like to buy their goods from retailer, so this could be one of the ways that our company uses to promote our product to the consumer.

REMPEYEK WARISAN Wholesaler Retailer Consumer

The last distribution that our company uses is selling through the wholesaler. The wholesaler will buy our product in big quantity and sell back to the retailer and consumer. Examples of our wholesaler are Giant, Tesco, Mydin, Hypermarket and Carefour. Many company in Malaysia use these distribution and it become one of the trend to sell company product to the consumer. Without using this distribution, the company product cannot sell their product easily and gain profit.

Promotion StrategyPromotion strategy is the process of promoting a new product to the consumer based on a several tools. It was important part to make the company sell their product according to their target market. There are many tools that can be use which are advertising, personal selling, sales promotion and publicity.

REMPEYEK WARISAN had decided to use several tools that suitable for our product which are advertising and sales promotion.

AdvertisingOur company is one of new entrepreneur in the Food industry, so our company chooses to use the cheap advertising tools which are banner and brochure. If the sales production increases, our company will advertise the product through the radio and television.

Sales promotionOur company will gives discount to the wholesalers and retailer that buy our product in big quantity. Besides that, our company will gives extra one box to our customer that buy the product more than five boxes. During festive season, our company also will lower the price of our product depends on the market needed. Give discounts to regular customers

Give discounts for bulk purchases

Big discount once a year

Give free extra rempeyek to customer that purchased at certain quantity

Online Promotion

Online marketing, also called digital marketing, is the process of using the web and internet-connected services to promote your business and website. There are a number of disciplines within online marketing. Some of these include social media, search engine marketing (SEM), search engine optimization (SEO), email marketing, online advertising and mobile advertising. We decided to make the most use of the internet to promote our products. This is because the internet has become the main communication medium of the present world. Our campaign will reach a wider without boundary limit.Price Strategy

Pricing strategy is an important strategic issue because it is related to product positioning. Thus, REMPEYEK WARISAN Company had chosen cost-based strategy and value-based strategy in implementing the strategy.

Cost-based StrategyCost-based strategy is the strategy on pricing the product based on cost plus a mark-up profit. Mark-up is the profit that we get from selling the products.

Price per unit = Cost + Mark-up

= 20.00 + (60% x 20.00)

`= 32.00

= RM 32.00/kg

Value-based StrategyValue-based strategy is the strategy on pricing the product that can show the quality of the product. REMPEYEK WARISAN used high quality of raw materials to ensure that our company produces high quality of products that can fulfill the customers' needs and wants.

MARKETING BUDGET

ITEMPROPERTY BUDGET (RM)MONTHLY BUDGET (RM)MISCELLANOUS BUDGET (RM)TOTAL (RM)

Fixed asset

Signboard30003000

Salary

Sales Executives

EPF (13%)

SOCSO (2.5%)

1500

19537.5150019537.5

Transportation500500

Advertising and promotion

Business card

Banner and brochure

Sample rempeyekWebsite/social media

500500

1501500

5005001501500100

Other expenses20002000

TOTAL3 0002232.52 6509982.50