MARKET ANALYSIS AND

STRATEGIES
MARKETING PLAN

1.0 INTRODUCTION

Marketing plan is very important to the marketing success and it also part of the
business plan. To start any small business and start-up, marketing is one of the
important steps towards a successful business. It helps us to focus our mind to the
companies and marketing teams on the process of marketing for example what is going
to be achieved and how we intend to do it. The essence of marketing is to understand
what the customers needs are and to develop a plan that surrounds those needs.
Marketing plan includes advertising, distribution and selling. To accomplish the aim of
this company, our marketing plan includes strategies typical of any marketing plan. The
major marketing mix tools are classified into four broad groups which are product, price,
place and promotion that is called the four Ps of marketing.

To kick start our venture, we create a new technology upgraded and satisfying
market offering product for our customers to enjoy yet will leave them waiting for more
(product). Pricing our products is one of the main tools in creating a successful
business. We have decided on the prices of our main product that will be charged to our
customers (price) and we will make the offers available to our target customers about
the offer and available promotions and persuades them of its benefits and merits
(promotion). Our product is something that can be called well known in Malaysia, so
what it needs is a good reintroduction through communication. Communication can be
through nearly anything in todays modern world, so we going to communicate with our
customers using advertising through media advertisement or gives our samples and
also through internet to persuade our dearest customer.
 It is vital for us to make a marketing plan that fulfil the customer needs and wants
throughout the products and services and also to gain profit and income to expand the
business in the future. Other than that, it is important to ensure that our organization
achieve the objectives and tasks. Without marketing planning, it will be hard to complete
the tasks effectively and to meet the objectives of the business. Therefore, we has plan
out and made an outline of all our marketing strategies which are methodically and in
details to achieve our companys objectives other than creating profits for the business.
We also put some technology inside our product to make it more up to date. This
marketing strategies are one of the important because nowadays, most of the products
are include some technology based on human demands.

Within a set of timeframe, our company must ensure that the management runs
smoothly and able to compete with outside competitor. An effective marketing plan is to
be able to identify the marketing activities that have the highest return on investments.
To start any business, we must have a solid marketing strategy as it is a foundation of a
well-written marketing plan.

There are few steps that should be followed in order to complete our marketing
plan:

Define a product
Identify the target market
Determine market size
Identify the competitor
Determine the market share
Develop sales forecast
Develop marketing strategies
Prepare marketing budget
2.0 PRODUCT OF SERVICE

The proposed products or services of our product related to the needs and wants of the
target customers. Our product also provide these product description:

1. Product
2. Material
3. Benefit

PRODUCT

For our company, Magic Pillow Sdn Bhd, we chose pillow as our main product. The
name of our shop is Magic Pillow. In our product, we make some upgraded on our
product by injected some technology on our product. It is different from the local pillow,
which is Magic Pillow are present the wireless speaker and compartment box inside the
pillow. The speaker can be connected to the telephone and laptop wirelessly. This can
easy the user rather than get up to go plug in the speaker. We also place a cooling gel
which can make the sleep better and comfortable. The compartment box can be used to
keep small or private things that you worry to be steal by others such as wallet.

Magic Pillow usually used when the user want to rest or sleep and also the soft
skin of the pillow can make the user become more comfortable. This is why we offer
these two combination of speaker for music and cooling gel to produce a powerful
pillow. We choose the suitable technology for our pillow and still selling it with a
reasonable price.

We decided to choose pillow as our company product because based on our

survey, this pillow with cooling gel and speaker is something new for Malaysian citizen
and it need to be exposed as it is a multipurpose product. We did make some research
on making sure if there is somewhere in Malaysia someone had sell this multipurpose
pillow product. And the research brought us to a product that similar to our product that
found in social network but just provide only one function. Such as one pillow that
provide only lighting inside and only provide music inside. As for our product, it is
suitable for each and every categories of salary as we will be selling it in reasonable
price. This might be our chance to expose our product and introduce this good, comfort
and multipurpose pillow to Malaysians.

MATERIAL

Our style of service is we give half service to our customer based on what they need.
Half service as in the customers will have to order from the main counter, the customer
will look and making a choice on the one that they interested, and after making the
decision, they will have to pay in the same counter. We offer a variety of the pattern of
pillow for our customer to choose from and it completed the demand and satisfaction of
our target customer which is student.

BENEFIT

Pillow Top is not a as a local pillow that full in the market. Pillow Top provide a
multipurpose pillow which is can be as an external speaker, compartment box and of
course as a sleeping accompany. The music that come from speaker with a melancholic
melody can hypnosis the users easy to sleep. From our research, the music that we
listen everyday can influence our mood. Such as a pop song, it can refresh our mood to
become more energetic. The music we provide also can be as a therapy music. Music
therapy has been used for centuries as a way to restore energy, improve mood and
even help the body more naturally. So that, why not we use this opportunity to upgrade
the pillow to make human sleeping become more comfortable. The cooling gel also will
make a fine and better improvement of individual sleep who dreams to sleep on cool
water.
3.0 TARGET MARKET

A target market is defined as the group customers with needs and wants that the
business has decided to aim its marketing efforts and ultimately its merchandise. The
customers can be satisfied by the business through supplied of goods and services. A
well-defined target market is the first element to the marketing strategy. Referring to the
4 Ps (product, place, promotion and price) determines the success of a product in the
market place. Target marketing can be separated into:

1) Geographic segmentations (address/their location)

2) Demographic/socio-economic segmentation (age and income)
3) Psychographic segmentation (similar attitudes, values and lifestyle)

Having our own reason to identify the specific target market helps our business to
determine and satisfy customer desire and wants within the community and to use
limited resources and to save the time and cost.

Pillow Top main target consist of people who have a difficultly of sleep and wake up of
sleep. Our main target is open to adults, working people, teenagers and students.

Geographic Segmentations

Location: Bandar Baru Perda, 14000 Bukit Mertajam, Pulau Pinang

Demographic Segmentation

Age : 15 years old and above

Income : Affordable for all middle and higher income people

4.0 MARKET SIZE

Market size is the number of buyers and sellers in a particular market which is important
for our company to launch a new product since small market are less likely to be able to
support high volume of goods. It can also determine and predict out profits and demand
of our product.

Total population of Penang Island: 484, 530 population (estimation)

Table 4.1 Total Target of Market Size

NO.OF TARGET
SEGMENT POPULATION % TARGET MARKET
MARKET

Teenager 120,700 40 48,280

Adults 150,000 30 45,000

Table 4.2 Total Market Size

YEARLY
NO.OF QTY AVERAGE YEARLY
POTENTIAL
SEGMENT TARGET CONSUME PRICE PER MARKET SIZE
PURCHASE
MARKET PER YEAR UNIT (RM) (RM)
(RM)
Teenager 900 60 2,607,120,000 2,607,120,000
48,280
Adults 700 60 1,890,000,000 1,890,000,000
45,000
Total market size (per year) 4,497,120,000 4,497,120,000
MARKET SHARE

1. Market Share before the Entry of Magic Pillow

Market share is a comparative measure to assess performance against the
competition. Table 1 below shows the market share before the entry of Magic
Pillow.

Before
COMPETITORS
% of market Total market
share share (RM)

Deanlopillo 28 975,744

King Koala 25 871,200

Kekabu Malaysia 23 801,504

Others 17 592,416
Miracle Dream
- -
Sdn Bhd
TOTAL 93 3,484,800

MARKET SHARE BEFORE ENTRY OF MAGIC PILLOW

SDN BHD
Others
18% Deanlopillo
30%

Kekabu Malaysia
25%

King Koala
27%
2. Adjusted Market Share after the Entry of Magic Pillow
Table 2 below shows the adjusting market share after the entry of Magic Pillow to
the market. Magic Pillow is confident to contribute 10% of market size.

After
COMPETITORS
% of market Total market
share share (RM)

Deanlopillo 27 940,896

King Koala 22 766,656

Kekabu Malaysia 19 662,112

Others 15 522,720
Miracle Dream
10 348,480
Sdn Bhd
TOTAL 93 3,484,800

MARKET SHARE AFTER ENTRY OF MAGIC PILLOW

SDN BHD
Magic Pillow sdn
bhd
11%
Deanlopillo
Others 29%
16%

Kekabu Malaysia
20%
King Koala
24%
SALE FORECAST

Sales forecast is a past performance of a company. In Magic Pillow, we have made

sales forecast for the year of 2016 and can be extended to cover sales for the second
and third year as well. It is important to maintain our sales year by year.

Month No.of Unit Selling Price Amount of Increase REMARKS

(RM) Sales (RM) /Decrease (%)

Jan 66.50 4,456 - Introductory

67 Stage

Feb 66.50 4,788 7%

72

Mar 66.50 5,320 11% Festive Month

80

Apr 66.50 5,520 4%

83

May 66.50 5,187 -6%

78

Jun 66.50 4,788 -8%

72

Jul 66.50 4,855 1% Fasting Month

73

Aug 66.50 5,054 4%

76

Sep 66.50 5,586 11%

84

Oct 66.50 5,786 4%

87

Nov 66.50 5,653 -2%

85

Dec 66.50 37,950 571% School Holiday

89
Total Sales for 66.50 94,941
2015 (50% 946
increase)

Total Sales for 66.50 5,056,128 5226% INCREASE

2016 (20% 76,032
increase)

Total Sales for 66.50 6,319,163 25%

2017 (50% 95,025
increase)

SALES FORECAST for Magic Pillow Sdn Bhd for the YEAR 2016
40,000 Series1, 37,950

35,000

30,000
AMount of Sales (RM)

25,000

20,000

15,000

10,000

5,000

0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
5.0 COMPETITOR

Table 5.1 Competitive Analysis

No. Competitors Strength Weakness

1 - Good and healthy pillow - Provide only one function

Deanlopillo - Famous in the market - The price is too expensive

2 - Come with the lighting - Not consistency lights

pillow
King Koala
- Cute design provided
3 - Variety light indicator
- Affordable price
Kekabu Malaysia
indicator
- Cannot be used for sleeping
- Low quality
- Cannot be used for sleeping

Table 5.2 Pillow Top Analysis

Product Characteristic Added Value Advantages Disadvantages

- Speaker - Easy to use - The battery is

- Easy to connect not long lasting
Magic Pillow - Compartment - Easy to handle
box

- Cooling gel
6.0 MARKET STRATEGY

In every business, marketing strategies play the important part of creating a successful
company. Our company believe that marketing strategies will help us in defining
business goals and develop activities to achieve them. Besides, marketing strategies is
a strategy that integrates an organizations marketing goals into a cohesive whole. It
started from market research and focuses on the ideal product mix top achieve
maximum profit potential. Our marketing strategies include product, pricing, place and
promotion.

PRODUCT

1. Product design / service package

o We will hire a packaging designer that will design the packaging of our
product to make it look more attractive and interesting. The first
impression of the packaging is very important to attract buyers besides the
function of the pillow itself.
2. Quality
o Before hiring workers, we will make sure that the person we hired is well
trained by our staff to keep the best quality of our product. Then we hired
operation assistant to monitor the workers and make sure they follow the
quality standard.
o We use high quality ingredients to make Pillow Top in order to keep the
quality of our product at higher standards.
3. After sale service
o We give each of our customers a suggestion form to fill, to get the
feedback from our customers to improve our business. Besides, it can
help us to satisfy the demand of our customer.
o Every customer who gave the feedback will get 5% discount for the next
first purchase. Terms and condition apply.
PRICE

Price is very important to attract customers and to ensure that people will buy our
product. In our company, we set our price is based on the cost-based pricing which
means the price is based on the total cost of the product including the standard mark
up. From the mark up, we get the profit that is desired from the sale of our product. The
price of our product can be said at the reasonable price because the ingredients to
make Magic Pillow are quite expensive. However the price is still affordable. This is an
advantage for us as we know the customers will choose the cheapest shop.

Cost-based Pricing

Price = total cost per unit + mark up

= RM35 + (90% x RM35)

= RM35+ RM31.5

= RM 66.50

PLACE

The initial place of distribution of the products are set on Perda City Mall at Bandar
Perda, Permatang Pauh, Pulau Pinaang. This Place is Chosen because there are lot of
commercial centre in that area. The product will be distributed by direct and also
wholesale. For later target market, we will target to distribute to entire Malaysia.
PROMOTION

1. Internet
We use online advertising such as Facebook, Website, Twitter and Instagram to
promote our product in the new era of globalization and technology. This is
because most of the people nowadays spend more time in front of the computer
and these alternatives can actually help in promoting our product and save more
time and energy.
2. Pamphlet
We choose pamphlets as one of the medium to promote the product. Pamphlets
distribution is the proven medium use to reach the particular target market
directly. Moreover, we can control out target and know the message is going
where we intended it to and we can monitor our product as it progresses. In
addition, pamphlets delivered at home and do not have to compete with a vast
number of our competitors advertisements as it often the case in the other
mediums. Besides, we can hire a promoter to deliver the pamphlets by hand at
the mall itself.
3. Poster
The poster will be attached at a public area like bus station, electric stands, as
well as in front of our factory. This kind of approach can be more convenient
because it will be seen anywhere.
7.0 Marketing Budget

Table 8.1 Marketing Budget

Items Fixed Asset Working Capital Other Expenses

(RM) (RM) (RM)

Fixed Asset

Signboard RM 2 500.00

Working Capital

Salary/EPF/SOCSO

-Marketing Manager RM 1 732.50

-Promotion RM 300.00

Other

Grand Opening RM 3 570.00

Total (RM) RM 2 500.00 RM 2 032.50 RM 3 570.00