Professional Documents
Culture Documents
MARKETING PLAN
I. EXECUTIVE SUMMARY
Foreign operations contribute around 51% of system wide sales and about 65%
of operating profits. Its main source of income is through franchise fees. .
Business week figured that McDonalds brand value for 2002 is about 26.4 billion
McDonalds current market cap is 21.2 billion. Showing that its brand value alone
is worth more than the current market cap. From the following valuations and
research we have conclude we have decided to buy McDonalds.
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marketing activity, looking at both macro-environment factors demographic,
economic, ecological, technological, political, and cultural and micro- or task-
environment factors markets, customers, competitors, distributors, dealers,
suppliers, facilitators, and publics. The audit includes analyses of the company’s
marketing strategy, marketing organization, marketing systems, and marketing
productivity. It must be systematic in order to provide concrete conclusions based
on these analyses. To ensure objectivity, a marketing audit is best done by a
person, department, or organization that is independent of the company or
marketing program. Marketing audits should be done not only when the value of
a company’s current marketing plan is in question; they must be done
periodically in order to isolate and solve problems before they arise.
1. Competitive Forces
2. Economic Forces
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Beside that the interest rates remain stable where the base lending rate
(BLR) for commercial banks was unchanged at 6.72% and the average
lending rate is lower at 6.21% in March. Because of this, Advanced
Chemicals able make a loan to expand their business, beside that the loan
taken from the commercial banks also can be use to make the advertising
about the products manufactured by the company in the chemicals industry
especially to a new company such as Advanced Chemicals.
(http://www.bnm.gov.my/view.php?dbIndex=0&website_id=1&id=659)
3. Political Forces
(http://www.moa.gov.my/moa/index.php?option=com_content&task=blogcate
gory&id=211&Itemid=151&lang=en)
All the products in the chemicals industry can be sold to anybody and it
contain a poison especially herbicides, fungicides and insecticides. There is a
law regarding to the products that contain a poison. The law may affect the
distribution channel in the chemicals industry. For example in the Poison Act
1952, under section 15 state that “no poison shall be sold by wholesale
except by a licensed wholesaler in accordance with the term and condition of
his license”. This is means that the company in the chemicals industry only
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can sell their product that contain poison to the licensed wholesaler. Because
of this act, the company in the chemicals industry especially Advanced
Chemicals has to follow this act in order to avoid any action from the
government.
5. Technological Forces
Nowadays, there are many technology has been developed and one of
the technology in the chemicals industry is the automatic dispenser. This
Automatic dispenser is widely used at house and organization; because of
this the company in the chemicals industry will manufacture the insecticide
aerosol that can fit into the automatic dispenser.
6. Sociocultural Forces
Nowadays, most of the Malaysian are prefer the easy job and this is
same in the situation where Malaysian are more prefer the insecticides
aerosol rather than insecticides coil, this is because some of the Malaysian
are allergic to the smoke from the insecticides coil.
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The company in the chemicals industry especially Advanced Chemicals
has to produce more insecticide aerosol and fertilizers for their customers
because base on the Malaysian culture the insecticide aerosol and synthetic
fertilizers from Advanced Chemicals will help the to do the work more easily.
B. Target Market(s)
For the business customers such as farmers, the best selling product is
Advanced Fertilizer (AF). The AF is a synthetic fertilizer that rich of nutrient
that can give a healthy plant and it also can stimulate the growth of plant.
Recently in Malaysia, there is an issue about the rice price is increasing
where before this the price for local Jati Special is RM 18.50 per 10kg but
now the price is between RM 23.90 and RM 26.00 this increasing of price
happened because of there is insufficient rice can be supply to the
customers. Because of this problem, the farmers can use AF to overcome
this problem because AF can stimulate the growth of paddy so the farmers
able to supply the rice to their customers.
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(http://www.bernama.com/kpdnhep/news.php?id=330198&lang=en&cat=)
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III. SWOT ANALYSIS
A. Strengths
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B. Weaknesses
1. One of the weakness for Advanced Chemicals is all the price of the product
by Advanced Chemicals is high. The price is expensive because the raw
material is expensive and because of this Advanced Chemicals had to setting
their price at the high price in order to cover their cost. For example, in order
to produce synthetic fertilizers the raw material needed is petroleum and
nowadays the price of petroleum is high so that Advanced Chemicals need to
set their synthetic fertilizers at the high price in order to cover their high cost.
2. Advanced Chemicals are not popular among their potential customers and
because of this Advanced Chemicals unable to make a large profit for the
company. Beside that Advanced Chemicals are not popular because
Advanced Chemicals is a new company so that many individual and business
customers are not realize their existence in the market so that Advanced
Chemicals unable to capture more market share in the chemicals industry.
Advanced Chemicals also not popular because there is lack of advertising
about the products produce by Advanced Chemicals so that Advanced
Chemicals unable to make more selling and this can give a bad impact to
Advanced Chemicals especially to the management of Advanced Chemicals.
C. Opportunity
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1. One of the opportunities for Advanced Chemicals is the increasing of dengue
cases in Malaysia where in the year 2008 there is 12,162 cases and 35 of
people are death and the previous year that is in the year 2008 there is
16,260 cases and 38 of people are death. As we can see the case are
reducing, however the Ministry of Health in Malaysia said that this total case
is still high. When the dengue case is high this will become the opportunity for
Advanced Chemicals because the demand for the insecticides products will
be increase. For example, in order to reduce the case of dengue, the demand
for insecticides aerosol is high among the individual customers.
(http://www.moh.gov.my/static/PressReleaseMg16_2008.pdf)
(http://www.pmo.gov.my/WebNotesApp/Abdullah.nsf/hv_PMKiniSemasaNew/
57AD491D0E67115F4825734F003607AA)
(http://www.moa.gov.my/moa/index.php?option=com_content&task=blogcate
gory&id=211&Itemid=151&lang=en)
D. Threats
1. One of the threats for Advanced Chemicals is the current issue that is the
increasing of price for synthetic fertilizers in Malaysia. These issues arise
because of the increasing of world oils price and the scarcity of fertilizers.
Before this the price for one ton metric of synthetic fertilizers is RM 1,400 and
now for the one ton metric of synthetic fertilizers is RM 1,800. This increasing
of price will become the threats for Advanced Chemical because the farmers
will not use the synthetic fertilizers and they will change it to the organic
fertilizers so that Advanced Chemicals unable to make a selling on their
synthetic fertilizers and this will make Advanced Chemicals facing losses in
their operation and production.
(http://www.utusan.com.my/utusan/info.asp?y=2008&dt=0417&pub=Utusan_
Malaysia&sec=Dalam_Negeri&pg=dn_07.htm)
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Because of these threats, it is hard to Advanced Chemicals to establish in the
chemicals industry in Malaysia.
3. If Advanced Chemicals enter the international market, the main threats for
Advanced Chemicals are the increasing of import and export duty. This
happened when in the certain countries, the government wants their citizens
to buy the local product and the government also wants to protect the local
company facing losses. When Advanced Chemicals need to pay for the high
import and export it may cause the product form Advanced Chemicals is
expensive so that this will make the demand for the Advanced Chemicals
product fall so that Advanced Chemicals unable to make many business
transaction and this will make Advanced Chemicals facing a losses.
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they win the tender I will benefit Advanced Chemicals because they will get a
high profit from that tender.
4. Advanced Chemicals has a lower market share in the chemicals industry that
is 10% so that Advanced Chemicals should make more advertising and
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promotion in order to increase the popularity among the customers and this
can help to increase the market share for Advanced Chemicals in the
chemicals industry. The advertising and promotion can be made by using the
electronic mass media such as make the commercial adverting at television.
Advanced Chemicals is a new company in the chemicals industry and they are
manufactured fertilizers, herbicides, fungicides and insecticides products. The
objective of Advanced Chemicals is to achieve 1.5 billion in net profit for 12
month and 60% of the net profit should come from the business customers.
Another objective for Advance Chemicals is make sure that the customers in
Advanced Chemicals are satisfy with the product and price quotation offered by
Advanced Chemicals.
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Advanced Chemicals will produce many new products so that the customers will
have many options of the products offered by Advanced Chemicals so that the
potential to make business transaction is high.
In order to make sure 60% of the net profit is come from the business customers,
Advanced Chemicals has to create and maintain a good relationship with the
business customers. Beside that, Advanced Chemicals also has to make a
suitable promotion such as give a trade discount or rebate to the business
customers. For example, in order to encourage more business customers use
the product from Advanced Chemicals, they have to create a good relationship
by always contact and give the information about the new product from Advanced
Chemicals. Advanced Chemicals also can give a trade discount to the business
customers by giving 10% trade discount if the business customers buy the
syntactic fertilizers from the Advanced Chemicals.
Beside that in order to achieve 1.5 billion net profits for 12 month, Advanced
Chemicals has to hire agents to persuade the business customers to use the
products from Advanced Chemicals. Beside that Advanced Chemicals also has
to open new branches in order to make sure Advanced Chemicals able to fulfill
their customer’s demands. For example, Advanced Chemicals will open new
branches at all of the state in Malaysia.
V. MARKETING STRATEGIES
The marketing strategies for McDonald is about the product, place, price and
promotion that is used as part of McDonald's marketing strategy to generate
hundreds of millions of dollars in annual sales. McDonald has set their marketing
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strategies through precise blending of product, place, price and promotion;
McDonald's branches everywhere maintain consistent quality, price and
selection. One of the major reasons for the franchise's success is that it evolves
in relation to the changing needs of loyal customers.
"When talking about McDonald's within the scope of marketing promotion, one
hardly knows where to start. As a general statement, it is fair and accurate to say
that promotion is one of the pillars of McDonald's success. Let us clarify this
statement; while it is indisputable that McDonald's has built a loyal following for
decades through a quality product, easy availability and value, none of these
wonderful things that McDonald's has perfected would be known by anyone if
they were not properly promoted. The success of the promotional message is
evidenced by the cross-generational loyalty of customers and many other
factors." (http://www.academon.com)
A. Target Market(s)
Farmers
Farmers, 30 Business
% Customers
(Retailers), 3 Small Medium
0% Enterprise
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insecticides product will be use by the individual customers such as housewife’s
because this product will be use in the house in order to eliminate the problem of
mosquito, flies and cockroach.
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SME need the fungicides product to overcome this problem so that they will be
the target market of Advanced Chemicals.
B. Marketing Mix
Products
Promotion
Place / Distribution
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VI. MARKETING IMPLEMENTATION
A. Marketing Organization
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4. Small Medium Enterprise
Each of this group has their own leader and in this there will be four
leaders that is sales manager who will be responsible to make sure all the
marketing implementation in Advanced Chemicals run smoothly. Each leader in
the different groups has a full decision making authority because the General
Manager of Advanced Chemicals has delegate their power in Advanced
Chemicals. All the activity within the group will be report to the General Manager
of Advanced Chemicals for the evaluation of effectiveness while implement the
marketing plan in Advanced Chemicals.
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B. Activities, Responsibility & Time for Completion
All the implementation of this marketing plan for 12 month will be start on
January 5th and it is about the activity, responsibility and time for completion.
• By February 1st, every four members from each group will make a research
about the demand for the new product by the customers, analyze the current
market trend in the chemicals industry and construct and distribute a
questionnaire about the product offered by Advanced Chemicals. The Sales
Manager wills in-charge on these activities.
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• By April 1st , one of the members form each group will make a presentation to
the Sales Manager about the result of their analysis and this presentation are
include the discussion on new idea that may be apply to the products of
Advanced Chemicals.
• By May 15th, the new idea by each group will be pass to the Research &
Development Department (R&D) in Advanced Chemicals. R&D Department
will use the result and the new idea to create a new product for Advanced
Chemicals so that the target market for Advanced Chemicals will have more
option while buying at Advanced Chemicals. Beside that the result of their
analysis will be pass to the Sales Manager in order to make the evaluation
about it.
• By July 30th, Sales Manager will make the implementation about any
changing of 4P’s that is products, price, place and promotion base on the
analysis of each group toward their target market.
• By November 1th, the Sales Manager will conduct a further survey about their
customers satisfaction toward the paperwork about the product and price
quotation from Advanced Chemicals
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• By November 15st, the result from the survey about the customers satisfaction
will be submit to the General Manager and General Manager will make a
meeting with the Sales Manager at each group in order to decide whether it is
reasonable or not to produce the product to the customers.
• By December 1st, each of group will analyze and make a final report about
the result from the survey of the customers satisfaction and each group will
submit this final report to the General Manager of Advanced Chemicals. The
person in-charge in this activities is Sales Manager of each group in
Advanced Chemicals
• Reestablish the objectives of Advanced Chemicals especially to their target
market for the next year. The person in-charge in this activities is General
Manager of Advanced Chemicals
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VII. EVALUATION AND CONTROL
• The total budget for the new product research, market trend analysis and the
customers survey for the year 2008 is equal to 40% of the annual promotional
budget in Advanced Chemicals.
• From the total budget of the marketing plan in Advanced Chemicals, the
budget allocated for the new product research is 30%, market trend analysis
is 20%, customers survey is 10% and 40% for the process of implementation
on the new products and new business development.
• All the leaders in each group must prepare a report about all the financial
expenditures. The expenditure is including all the expenditure such as the
salary for each personnel in each group and this report will submit to the
General Manager of Advanced Chemicals.
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depend to their qualification so that it is important to Human Resource
Department to recruit the good candidates for Advanced Chemicals.
B. Monitoring Procedures
• Advanced Chemicals can use this monitoring procedure by use the project
management concept where this concept will be use to evaluate and
implementing the marketing plan by Advanced Chemicals. It also will
establish the time requirement to implement this marketing plan, establish the
financial and budgeting to implement this marketing plan and lastly is to
establish the needs of employees to implement this marketing plan.
• The General Manager of Advanced Chemicals will play a role to monitor their
employees and their employees will make a comparison about the actual and
planned activities for the twelve month in Advanced Chemicals so the
employees of Advanced Chemicals will make any report directly to their
General Manager of Advanced Chemicals.
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employees so that Sales Manager able to determine what should be made
and what should be done by their subordinates in Advanced Chemicals.
REFERENCES
BOOK REFERENCES
INTERNET REFERENCES
1. http://www.texchemfamilycare.com
2. http://www.moa.gov.my/moa/index.php?option=com_content&task=blogcategory
&id=211&Itemid=151&lang=en
3. http://www.bnm.gov.my/view.php?dbIndex=0&website_id=1&id=659
4. http://www.bernama.com/kpdnhep/news.php?id=330198&lang=en&cat=
5. http://www.pmo.gov.my/WebNotesApp/Abdullah.nsf/hv_PMKiniSemasaNew/57A
D491D0E67115F4825734F003607AA
6. http://www.utusan.com.my/utusan/info.asp?y=2008&dt=0417&pub=Utusan_Mala
ysia&sec=Dalam_Negeri&pg=dn_07.htm
8. http://www.moh.gov.my/static/PressReleaseMg16_2008.pdf
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