3.

0 Marketing

3.1 Marketing Review

PAPERCUP Company is a company which mainly sells on foods and beverages at

affordable prices. The target group of customers are University of Tun Hussein Onn
(UTHM) students as the business location is set up at the main campus of the UTHM
G3. The business plans are fizzy drinks, popcorns, sirap drinks and potato wedges. In
addition, PAPERCUP Company also provided shoes and smartphone accessories for
students to purchase.

In order to create the speciality of the company, the foods and beverages are
fully handmade with home recipes. All the ingredients are selected fresh and prepared
right before selling. Since the customers group is students, the foods and beverages
sell are created according to the demand of students.

The homemade fizzy drinks and sirap drinks could attract a lot of customers
due to the low price and attractive appearance. A few pieces of ice could upgrade the
carbonated fizzy experience to a brand new level for fizzy drinks. Due to the hot
weather in Parit Raja, customers may find these drinks thirst-quenching especially it
is served in cold. Additionally, the prices are set below market price in order to
compete with other shop.

Besides that, popcorns are always the best sellers among the foods and
beverages. It acts as a snack to satisfy one who needs something sweet after meal. It is
a guilt-free snack as it is made in low sugar, contains only natural ingredients and no
artificial colouring and flavours.

On the other hand, potato wedges is another snack that PAPERCUP offer. The
potato wedges are loaded with cheese and mayonnaise that surely would melt in
someone’s mouth. The mixture of colour: yellow cheese and white mayonnaise
improve the level of temptingness and provides the most attractive appearance to
attract every customer at first sight who went to the booth.

Other than food and beverages, PAPARCUP sells shoes and smartphone
accessories which include smartphone case, android data transferable and chargeable
cable, and 2A adapter. It brings convenient to every students or lecturers to restock
their needs at cheap and affordable prices. Especially during the modern time,
everyone has at least one smartphone as their communication tool. Those imported
high quality goods have lifespan up to 2 years to ensure that the customers satisfy the
products offer.

Products Description
Fizzy Drinks Beverage drinks which mix with Sprite carbonated drinks and
Sunkist concentrated orange drinks as based with a few pieces of
ice. Served in a transparent plastic cup with cap and straw.
Sirap Drinks Sirap ice water with organic chia seed. Served in a transparent
plastic cup with cap and straw.
Popcorns Fried and pop of butterfly type kernel with caramel coating.
Potato Wedges Fried potato slices with cheese and mayonnaise as topping.
Shoes A variety of sport shoes, formal shoes and casual shoes.
Cable Android data transferrable and chargeable cable.
Adapter 2.0A USB phone adapter

3.2 Market Segment Analysis

3.2.1 Geography

The business location is focus on UTHM main campus only, which located at the
Jalan Kluang, road connection from Parit Raja to Batu Pahat. The population in
UTHM are about one quarter more of total population compare to population of Parit
Raja.

Population Percentage

Parit Raja
UTHM

Figure 3.1: Pie chart of population percentage of Parit Raja and UTHM

3.2.2 Demography
The population of students to lecturer or staff are critical. Students are the biggest
ratio out of the total population in UTHM. It includes 1st year to 4th year students,
master and PhD students.

UTHM Population

Lecturers and Staff

Students

Figure 3.2: Pie chart of the UTHM polulation

3.3 Market Share Analysis

The PAPAERCUP business market share are estimated and calculated as table shown
below. The business market is focus on the overall market of Parit Raja.

Table: Estimated business market share

Customers Total Market Size Market Share Market Share in

Percentage (%)
UTHM students 20000 4582 22.91
UTHM lecturers 3000 334 11.13
UTHM staffs 1000 12 1.20
Others 56000 458 0.82
Total 80000 5386 36.06

3.4 Marketing Plan

The strategy used for the PAPERCUP business is the 4P strategy, which are Product,
Price, Place and Promotion.
 Figure 3.3: 4P strategy for PAPERCUP business

3.4.1 Product

All the food and beverages are handmade with approve ingredients that bought from
stores near the campus. In order to maintain the quality and freshness of food, the
foods are prepared right before sell. Due to the hot weather in Parit Raja, icy drinks
would attract a lot of customers to buy it. The demand in popcorn would also attract a
lot of customers to buy the caramel popcorns. It is planned to have online purchase
and delivery services in future.

3.4.2 Price

The products sell at low and affordable prices since the main target group is students.
The strategy used was top down strategy, where the lower price is set after compared
with other seller price. Despite the strategy was used, the profit of product prices are
also be calculated to ensure not too low selling prices result in no profit gain.

3.4.3 Place

The business location is located at some strategic places that full of students and
lecturers flows. In order to boost up the business, some easily noticeable locations are
selected as the location. Especially at some location near cafés, during the meal time
is the peak time that most of the students, staffs and lecturers go and hunt for food.

3.4.4 Promotion

The current promotion is through social media app such as Facebook, Instagram and
Twitter. Some advertisements are also set up and posted through the web about the
food and beverage. Additionally, there is some discount on the accessories like phone
case and adapter which are selling in clearance price which is extremely low price
compare to other seller. Also, there are several characteristics of a promising business idea
such as innovative, unique, clear focus, problem solving by fulfilling customer needs and
profitable in long term that should be taken into account in developing a marketing plan.

Unique

Problem solving
Clear focus by fulfiling
customer needs

Marketing
Profitable in
Innovative plan
characteristics long term

Figure 3.4: Basics marketing plan characteristics.