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Module MARKETING PLANNING Module

Title: Code: MKT3206

Assignment
Title: Marketing plan report Date: 13JULY2018

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Chuar Yweng Wai J15019582 ☐

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Table of Contents
Situation analysis ................................................................................................................ 3
Marketing objectives ........................................................................................................... 3
SMART objective ........................................................................................................... 3
Specific ........................................................................................................................ 3
Measurable................................................................................................................... 3
Attainable..................................................................................................................... 3
Realistic ....................................................................................................................... 3
Time related ................................................................................................................. 4
Target market profile and positioning decisions ................................................................. 4
Marketing strategies and programmes ................................................................................ 5
Product ............................................................................................................................ 5
Price................................................................................................................................. 6
Promotion ........................................................................................................................ 6
Place ................................................................................................................................ 7
Forecast and budgeting ....................................................................................................... 8
Implementation and control ................................................................................................ 9
References ......................................................................................................................... 11

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Situation analysis

As the raising of pet humanization trends, premium pet food has become a
hypercompetitive market (Kumcu, A. and Woolverton, A.E., 2015). The ways of pet
owners interact with their pets have been impacted by the rise of healthy living lifestyles.
Traits of grain-free and natural pet foods are no longer competitive in the market.

Marketing objectives

Pet Lover Center (PLC) has plan to extend a product line which offer fresh-cooked pet
food to customer in Malaysia. This is because pet owners are looking for fresh diet with
high nutrition (Swanson, K.S., et al., 2013).

The objective of this marketing plan is to develop a fresh-cooked pet food and achieve
300,000 unit by September 2019.

SMART objective
Specific
The objective is very specific, it stated that to develop a fresh-cooked pet food and achieve
300,000 unit sales by September 2019.

Measurable
This objective can be measure by sales unit. Make sure that 25,000 unit sales in a month to
meet the objective of targeted unit of 300,000 packs in 12 months.

Attainable
By implement a publicity campaign and new strategic direction can help to attain this
objective.

Realistic
This objective is realistic because this concept already implemented in Europe country and
the technology are available to produce and sell this product.

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Time related
It has about 2 months time to set up everything such as production and time limit of 1 year
to achieve the sales.

Target market profile and positioning decisions

In this marketing plan, PLC is targeting new customers. The main target market of PLC
is pet owners with 25 to 34 years old, medium and high income level which is above RM
5000 per month and educated customer. Based on the research, millennial are more likely
to own a pet than other generation and they are more willing to spend on pet product
(Young, S., 2017).

In geographically, PLC aim for customers who live in big cities and online users. PLC
will focus on Malaysia’s Klang Valley area. They has 28 outlets in Kuala Lumpur and
Selangor. PLC also target for online customer who live in Klang Valley because PLC has
offer online shopping and delivery service is only available in targeted area.

Purchasing behavior of people has high purchasing power since fresh-cooked pet food
is slightly expensive compare to ordinary pet food as it require higher production cost. Also,
targeting to people who looking for pet companionship who concerned about their pets
health since the unique selling point of fresh-cooked pet food is fresh diet which contain
high-quality protein and balanced nutrition for live longer and healthier lives

In psychographics, PLC target on pet enthusiasts who looking for good quality product.
They are more concern about features and quality of products instead of price. Therefore,
PLC take this opportunity to target its market by offering fresh-cooked pet food to maintain
the health of their pets.

By developing fresh-cooked pet food, PLC can reinforce their position to the “freshest,
healthiest pet food provider with excellent service”. PLC is positioned on the basis of high
quality product and service. For pet owners who love their pets, PLC is the Asian best pet

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store that offers the freshest and healthiest diets to let pets accompany their owners for
longer time.

Marketing strategies and programmes

According to Ansoff’s growth matrix, growth strategy of this marketing plan using
product development to maximize their revenue, retain existing customer and gain new
customers by launching a brand new product that meet customer needs which is fresh-
cooked pet food for dogs and cats. This can help to achieve higher engagement and
customer satisfaction. Also, PLC can stand out from competitors with this product.

Product

Fresh-cooked pet food is a pet food that mainly target on dogs and cats. This pet foods
are freshly prepared on every day with high-quality protein and balanced nutrition
according to the pet nutrition pyramid. It is made with human grade ingredients and cooked
in low temperature in order to preserve the essential nutrition of the ingredients.

The main features of this product are fresh and balance nutrition. The benefits are fresh
food is better than manufactured food and balance nutrition allow pets to have healthier
weight, shiny coat, improve digestion and live longer. As it is fresh-cooked, it doesn’t
contain any artificial preservatives, colors and flavors. Fresh-cooked pet food is prepared
according to Food and Drug Administration (FDA) and Food Safety Information System
of Malaysia (FoSIM) standards.

It only provided a standard size of packaging, as meals are perfectly portioned into
400g for every single meal and vacuum sealed in a recyclable bag. It can be keep in fridge
for 1 week or freezer for 3 months. They offer 3 types of flavor which is beef, chicken and
salmon as the main ingredient and mix with nutrition mix and vegetable such as carrot,
spinach, potato and so on. It is cooked with different recipes for dogs and cats to balance
the nutrition. The packaging indicates a nutrition facts label as nutrition guides for general

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educational purposes. Also, feeding charts are provided on pet food labels as a guide for
customers to feed their pets because it is depends on age, activity level and weight of pets.

Price

The price for fresh-cooked pet food will be slightly higher than others pet food due to
higher production costs. Since PLC is the market leader of pet industry in Asia countries
and this product is newly developed in market, PLC are suggested to use skimming pricing
strategy. This is an approach for this brand new premium pet food to obtain maximum
income from the target markets before other competitors offer similar product (Spann, M.,
et al., 2014). This is because the early adopter has low price sensitivity and willing to pay
higher prices to purchase the premium product. After a certain period, PLC will reduce the
price in order to capture the rest of the market.

Customer usually assume that expensive product will have a high quality too compare
with low price product (Shirai, M., 2015). PLC can set a higher price for this product which
represent the higher-quality brand image. PLC use odd pricing strategy and psychological
pricing that offering their product with RM9.90 per pack instead of RM10. Psychological
pricing can help company generates more income as customer will assume that RM9.90 is
much more reasonable than RM10 and succeed to meet their budget although there is only
10 cent cheaper (Nagle, T.T. and Müller, G., 2017).

Promotion

PLC can use direct marketing to promote its product because is it cost effective and
efficient way to reach target market (Robles, F. and Hassan, S.S., 2015). PLC has their own
website where they can introduce the brand new product with the description and price of
the product. Social media such as Facebook, twitter is the most effective platform to reach
target market (Dickey, I.J. and Lewis, W.F., 2010). This is due to the reason that most of
target market spend around 18 hours on different type of media per day (Taylor, K., 2018).
By posting a status, picture or video on social media can easily reach target market and it
is low cost and save money. Customers who followed PLC’s social media page can
instantly know the latest information about the product and increase awareness. PLC also

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let their customers know what they are offering through Pet Lovers magazine and mobile
application.

Furthermore, in the first 3 months of launching fresh-cooked pet food, PLC can apply
promotional pricing by distribute voucher or coupon to customer through flyers to boost
the sales. Customers who come with the voucher are able to get a 15% discount for the
selected product. This pricing strategy can help to increase product awareness and customer
traffic. PLC usually offer a periodic discounting to attract customers and encourage them
to purchase more due to the deals such as anniversary promotion or Christmas deals.

In addition, PLC is implementing a sales promotion which is reward program. This

program can encourage customer to purchase and improve their loyalty toward the
company (Garnefeld, I., et al., 2015). By register as a member of PLC, customer are able
to collect loyalty point, it can be redeemed for cash or brand vouchers which only valid to
use at PLC. Also, member will receive the latest news of the promotions, gifts or events.
This reward program also applicable to fresh-cooked pet food.

Place

Firstly, fresh-cooked pet food will mainly distributes in Malaysia. PLC will focus on
Klang Valley area which is Selangor and Kuala Lumpur. Most of the branches are located
in shopping malls or just nearby train station, it is very convenience for customer to get the
product. Therefore, fresh-cooked pet food will be distributed in every outlets in Klang
Valley. In addition, since fresh-cooked pet food need to place in a low temperature room
to keep it fresh, PLC need to add a refrigerator in their retail shops to sell this product.

Furthermore, as PLC’s target markets are millennial, they are very rely on technology
such as mobile phone and computer. PLC is suggested to sell their product on online
platform and this allows them to operate 24 hours, 7 days per week. For online platform,
PLC will directly deliver the product to customers. However, this delivery service only
available in Klang Valley from 9am to 9pm daily. Deliver service will be able to deliver
the product to customer within 1 hour once customers place an order and the transaction
are successes in the specific time expect for peak hours. For the payment method, PLC

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only accept online transaction during confirmation of order, they do not accept cash or
cheque payment. Delivery service will be charged RM3 per time or it will be free if
purchase up to RM50.

Forecast and budgeting

RM RM
Production cost per unit ( 25 000 units/ month)
Ingredient 3.00
Packaging 0.10
Total 77 500

Variable cost Month Annual

Marketing costs (magazine & flyers) 20 000
Distribute flyers (10 promoters) 30 000
Vacancy advertisement 600

(+) Operating cost

Renovation (refrigerator) 28 000
Labor costs (10 labors) 25 000 300 000
Machinery (packaging) 12 000
Kitchen equipment 20 000
Delivery cost (rider & petrol) 3 500 42 000

Total Cost 452 600

Forecasting per unit (300 000 units/annual)

Project sales 9.90 2 970 000
(-) Production cost 3.10 930 000
(-) Total cost 452 600

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 Net Profit 1 587 400

Above show the budgeting and forecasting for this marketing plan. In this marketing
plan, PLC target unit is 25,000 packs in one month in order to achieve the objective.
According to the statistic, in 2018, there are 31,570,575 population in Malaysia and the age
group of 25 to 34 was 18.7% of the population which is 5,903,697 people
(Populationpyramid, 2018). Nearly 25.5% of the age groups are living in targeted location
which include Kuala Lumpur (5.6%) and Selangor (19.9%), so it is about 1,505,443 of
target market in the area (Dosm, 2018). Also, 86.3% of population in cities have household
income above RM5000, which is 1,299,197 people. If 30% of this population own a dog
or cat which is around 389,759 people. PLC assumed that 10% of the target market will
purchase a product in every month, it will be 38,976 unit sales monthly and 467,712 unit
sales annually. Therefore, forecasting of fresh-cooked pet food in a month will be able to
sell 25,000 packs and net profit for a year will be roughly about RM 1 587 400.

Implementation and control

Programs / Description Expect outcome Contingency plan

Activity
Renovation Add on a glass door
refrigerator at every outlets
in Malaysia in order to keep
the product fresh.
Vacancy Post a vacancy
advertisement advertisement on jobstreet
to hire chef and kitchen
crew to prepare the pet food
and pack the products.
Every outlets must Looking for another
have a refrigerator by refrigerator supplier and
September 2018. hire more labor to install
it.
At least hired 20 Advertise on other
workers by September recruiting platform such
2018. as newspaper and offer
higher salary or benefit to
attract more candidates.

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Suppliers Looking for suppliers to
supply human-grade
ingredient.
Distribute Hire 10 promoter to
flyers distribute flyers to customer
in pet events and active
public place for 3 months.
Delivery Recruiting rider to deliver
system product, provide training to
avoid procrastinate, rider
are able to send the product
to customer in time.
Supplier are able to Make sure to have a
supply enough quantity backup supplier although
of ingredient for daily they offer higher price
production. for short term.
Ensure the public can Request more promoter
receive the flyers and to distribute, target more
purchase with voucher. location and extend the
duration. Also, try
another promotional
strategy such as provide
voucher code with PLC
application.
Hired 3 rider by August PLC can cooperate with
2018, provide training grab to deliver product. If
for 1 month and delay with the order,
familiar with the route PLC will send a sorry
by September 2018. letter with a RM10
voucher to customer.
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References

Dickey, I.J. and Lewis, W.F., 2010. Social media perceptions and usage by Generation Y
and relevant marketing implications. Advances in Marketing: Going Green-Best
Marketing Practices for a Global World.

Dosm, 2018. Demographic Statistics First Quarter (Q1) 2018, Malaysia. [online]
Available at:
https://www.dosm.gov.my/v1/index.php?r=column/cthemeByCat&cat=430&bul_id=azJa
VlY0RjVKWkwwaURWTENxMVBhdz09&menu_id=L0pheU43NWJwRWVSZklWdz
Q4TlhUUT09 [Accessed 9 July 2018].

Garnefeld, I., et al., 2015. Referral Reward Programs: New Customer Acquisition by
Opportunism?. In Marketing in Transition: Scarcity, Globalism, & Sustainability (pp. 29-
29). Springer, Cham.

Kumcu, A. and Woolverton, A.E., 2015. Feeding Fido: Changing consumer food
preferences bring pets to the table. Journal of Food Products Marketing, 21(2), pp.213-
230.

Nagle, T.T. and Müller, G., 2017. The strategy and tactics of pricing: A guide to growing
more profitably. Routledge.

Populationpyramid, 2018. Population Pyramids of Malaysia, 2018. [online] Available at:

https://www.populationpyramid.net/malaysia/2018/ [Accessed 9 July 2018].

Robles, F. and Hassan, S.S., 2015. Reaching Global Market Segments with Direct
Marketing. In Proceedings of the 1991 Academy of Marketing Science (AMS) Annual
Conference(pp. 140-143). Springer, Cham.

Shirai, M., 2015. Impact of “High Quality, Low Price” appeal on consumer
evaluations. Journal of Promotion Management, 21(6), pp.776-797.

Spann, M., et al., 2014. Skimming or penetration? Strategic dynamic pricing for new
products. Marketing Science, 34(2), pp.235-249.

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Swanson, K.S., et al., 2013. Nutritional sustainability of pet foods. Advances in
Nutrition, 4(2), pp.141-150.

Taylor, K., 2018. Millennials Spend 18 Hours a Day Consuming Media -- And It's Mostly
Content Created By Peers. [online] Entrepreneur. Available at:
https://www.entrepreneur.com/article/232062 [Accessed 8 July 2018].

Young, S., 2017. How the humanization of pets has impacted pet spending. [online]
ConsumerAffairs. Available at: https://www.consumeraffairs.com/news/how-the-
humanization-of-pets-has-impacted-pet-spending-092517.html [Accessed 10 July 2018].

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