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ADVANCED CHEMICALS

MARKETING PLAN

I. EXECUTIVE SUMMARY

McDonald’s Corp, operates or licenses more than 30,450 fast-food restaurants in


the U.S, Canada and overseas. Fifty eight percent of these stores are operated
by franchisees, twenty eight by the company, and fourteen percent by affiliates.
Its partner brands include Boston Market, Chipotle and Donatos Pizzeria, which
are all located primarily in the United States, and Aroma Cafe, located primarily in
the United Kingdom.

Every time a business or consumer purchases products or services they display


forms of buyer behavior that are influenced by many factors. The following report
looks at the fast food industry and will analyze four McDonalds’ key products and
services. It highlights what type of consumer buying or business buying
behaviors are displayed in the purchase of a product or service and explain why
each behavior may occur. This enables a conclusion to be drawn from applying
theory to reality. Although a full comprehension of buying behavior is impossible,
since everyone is an individual, it is useful to reflect on common behaviors and
attempt to divide behaviors in types and stages. Even McDonalds, a leader in
marketing cannot always predict consumer behavior.

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.

II. SITUATIONAL ANALYSIS

Marketing audit is a comprehensive, systematic, independent, and periodic


analysis that a company uses to examine its strengths in relation to its current
and potential markets. Such an analysis is comprehensive because it covers all
aspects of the marketing climate unlike a functional audit, which analyzes one

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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.

The purpose of the marketing audit is to identify areas of success and


effectiveness, and the inevitable challenges and opportunities that exist within
organizations that negatively affect marketing return on investment. Based on the
findings of the audit, recommendations will be made to improve the effectiveness
of future marketing efforts.

A. The Marketing Environment

1. Competitive Forces

As a new company, the competition in the chemicals industry is very


strong because there is an establish and well known companies in the
chemicals industry such as Texchem Group, Chemical Company of Malaysia
(CCM) and Hexstar Chemicals Sdn Bhd.

These companies has a major market share in the chemicals industry


where Texchem Group is 40% of market share, Chemical Company of
Market Share of Chemicals Industry
Malaysia (CCM) is 30% of market share, Hexstar Chemicals Sdn Bhd is 20%
of market share and Advanced Chemicals is 10% of market share.
Advanced TexchemGroup
Chemicals
Hexstar 10% Texchem Chemical Companyof
Chemicals Group Malaysia(CCM)
20% 40% HexstarChemicals
Chemical 2
Company of
AdvancedChemicals
Malaysia
(CCM)
30%
As above is an illustration about the market share in the chemicals industry.

As above, currently Texchem Group is a leading market share in the


chemicals industry followed by CCM, Hexstar Chemicals and Advanced
Chemicals. Advanced Chemicals in the fourth place because it is a new
company and the products manufactured by Advanced Chemicals are not
very popular among the individual and business consumers.

The chemicals industry is expected to become a profitable industry


because nowadays government is encourage involving into the agro business
and reducing the case of dengue so the demand for fertilizers, herbicides,
fungicides and insecticides product are increase. Because of this, new
competitor is expected to enter the market.

2. Economic Forces

Economic structure in Malaysia is stable and this may influent the


business activity especially in the chemicals industry. The latest gross
financing in the private sector has increased to RM 54.3 billion and this is
means that the private sector is establish and this will benefit the company in
the chemicals industry especially Advanced Chemicals in order to help
expanding their business.

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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

Nowadays, the Malaysian Government has launched the Ninth Malaysian


Plan where it may encourage the increasing agriculture production. The main
target in the Ninth Malaysia Plan is to generate growth of value added as
many as 7.6% compared with the plantation sector contributions as many as
3.2%. Because of this it may influent the company in the chemicals industry
such as Advanced Chemicals. Because of this Ninth Malaysia Plan the
demand for fertilizers will increase and this may benefit the company in the
chemicals industry especially to a new company such as Advanced
Chemicals.

(http://www.moa.gov.my/moa/index.php?option=com_content&task=blogcate
gory&id=211&Itemid=151&lang=en)

4. Legal & Regulatory Forces

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.

(www.pharmacy.gov.my/html/legislations/Poison act 1952.pdf)

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.

The automatic dispenser will help to spray the insecticides automatically


by setting their time and this automatic dispenser also user friendly dispenser
because it is easy to replace the empty insecticides aerosol with the new
aerosol. Because of the dispenser is widely used and user friendly, this
definitely will increase the demand to produce the insecticides aerosol from
the company in the chemicals industry such as Advanced Chemicals.

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.

Same as Malaysian Farmers, before this Malaysian Farmer make their


own fertilizers and by prefer the easy job, the Malaysian Farmer will use the
synthetic fertilizers from the market because it can save their time rather than
waste it doing their own fertilizers.

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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)

Advanced Chemicals is a company that manufactures fertilizers,


fungicides, herbicides and insecticides and in this case, the target market of
Advanced Chemicals is individual and business customers. In order to gain
the brand loyalty from the individual and business customers, Advanced
Chemicals has to treat and produce high quality products to the customers.
This may benefit Advanced Chemicals because when the customer loyal to
Advanced Chemicals this automatically will increase the profit at Advanced
Chemicals.

For the individual customers, the best selling product is Advanced


Insecticide Aerosol (AIA). The AIA is a multipurpose insecticides aerosol
where I can be use to eliminate mosquito, flies, cockroach and ants in the
house. The individual customers such as housewife are preferred to use this
product because it is easily to use and it is effective to overcome the
insecticides problem in the house.

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=)

C. Current Marketing Objectives & Performance

Current marketing objectives in Advanced Chemicals to increase the


profits and revenues of approximately RM 2.5 Million where the target of
revenue should exceed RM 750,000 and the target of profit should exceed
RM 1.5 Million. Beside that Advanced Chemicals also target to build a close
relationship with the customers and stakeholders, this is because Advanced
Chemicals is a new company, so it is important to build up the good image
and the good perception from the Customers. Make Advanced Chemicals as
well known product is one of the current objective in Advanced Chemicals.

In order to achieve the target for profits and revenues, Advanced


Chemicals will strive to offer a superb customer services and offer a high
quality products in order to make sure the customers will make a repeat
purchase to the products from the Advanced Chemicals. In order to build a
close relationship with the customers and stakeholders, Advanced Chemicals
can use the Corporate Social Responsibility (CSR) policy such as care about
the welfare of their customers and make collaboration with their stakeholders
to improve their relationship. In order to gain a good image and good
perception, Advanced Chemicals can make the advertising by using
television as a medium and make more sponsorship and charity to the
handicap citizen.

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III. SWOT ANALYSIS

A. Strengths

1. Advanced Chemicals are offering a variety of product to their customers


where there are many type of fertilizers, herbicides, fungicides and
insecticides offered to their customers. For example insecticides product,
there is about 3 type of insecticides offered to the customers that is aerosol
insecticides, coil insecticides and liquid insecticides so that the customers
able to make their own choice.

2. Research & Development Department (R&D) in Advanced Chemicals are


using a new technology to develop their products where all the product
produce by Advanced Chemicals are environmental friendly and all of the
worker is well trained especially the workers at R&D Department, so that the
quality of all the product produce by Advanced Chemicals is high.

3. The workers at Advanced Chemicals are very hardworking and very


committed towards self development and also willing to learn. The workers at
Advanced Chemicals also friendly and they can offer best customer service
especially to their individual and business customers to ensure that customer
satisfaction is guaranteed. This definitely will improve the relationship
between Advanced Chemicals and their customers.

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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.

3. The operation cost in Advanced Chemicals is high, so that the expenditure in


Advanced Chemicals will definitely high. This is because Advanced
Chemicals has well trained and expert workers so that these workers are
demanding for the high salary while working at Advanced Chemicals. If this
high operation cost is still continue in a long run, it may give bad impact to
Advanced Chemicals where it can make Advanced Chemicals unable to get a
large profit for the company.

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)

2. The announcement of budget allocation for the agricultural sector by the


Prime Minister of Malaysia in the Budget 2008 will be the opportunity for
Advanced Chemicals. There is RM6.5 billion allocate for the agricultural
sector in order work on the government program such as increasing paddy
production. Because of this budget, there will be many paddy field will be
open and because of this the demand for fertilizers will be increase. This will
become the opportunity to Advance Chemicals because the farmers will
demand for the fertilizers and Advanced Chemicals able to make a profit to
the company when the farmers buy the fertilizers from Advanced Chemicals.

(http://www.pmo.gov.my/WebNotesApp/Abdullah.nsf/hv_PMKiniSemasaNew/
57AD491D0E67115F4825734F003607AA)

3. The launching of Ninth Malaysia Plan by the government can be the


opportunity to the Advanced Chemicals. One of the Ninth Malaysia Plan
objective is to achieve growth value added for agro-based industry as many
as 5.2% so that the farmers will play a role to achieve this objective and in
order to achieve this objective the farmers will demand for the fertilizers and
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herbicides to make sure their plantation are grow healthy without any lack of
nutrient or disease. This will become the opportunity for Advanced Chemicals
because the Farmers will demand for the fertilizers and herbicides from the
Advanced Chemicals and this will give a profit and for the long term plan
Advanced Chemicals will be able to expand their business internationally.

(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)

2. Competitor is also the threats for Advanced Chemicals because Advanced


Chemicals is a new company and they had to compete with the established
company such as Texchem Group, CCM and Hexstar Chemicals. All of these
competitors have a major market share in the chemicals industry where
Texchem Group with 40%, CCM with 30% and Hexstar Chemicals with 20%.
All of these competitors have already run their business for a year so that
they have many loyal customers for their brand in chemicals industry.

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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.

E. Matching Strengths to Opportunity / Converting Weaknesses and


Threats

1. One of the strength in Advanced Chemicals is they are offer a variety of


product to the customers and because of this it can be the opportunity to
Advanced Chemicals because when there are many type of product offered
so that the potential to make more business transaction in increasing and it
will benefit Advanced Chemicals. For example, there is tender about the
needed of supplier for the liquid herbicides and because of Advanced
Chemicals has many type of herbicides, they can bid for that tender and if

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they win the tender I will benefit Advanced Chemicals because they will get a
high profit from that tender.

2. The strength in Advanced Chemicals is they are using a new technology to


develop their product and because of this it can be the opportunity for
Advanced Chemicals because when all the product from Advanced
Chemicals are well developed the demand for the latest product is increasing
so that Advanced Chemicals can use this opportunity to introduce their new
developed product to the customers and this may give the opportunity to
make a business transaction that may give a profit to the Advanced
Chemicals. For example, through the R&D Department, Advanced Chemicals
able to produce a multipurpose fungicides that can give the instant effect to
the fungicide problem and because of this, the product will be demanded
form the customers and Advanced Chemicals can get a high profit for the
company.

3. The product at Advanced Chemicals is expensive because they need to


cover their cost so in order to covert this problem Advanced Chemicals will
produce their product in a large scale so that the cost can be reduce and in
the long term it may reduce their price of the product and this may give a
profit to Advanced Chemicals. For example, before this Advanced Chemicals
are producing 1000 ton metric synthetic fertilizer and when they are produce
it in a large scale that is 5000 ton metric synthetic fertilizer in a long term plan
it can cut the production cost so that the price of the synthetic fertilizer can be
reduce and this may encourage customers to buy the synthetic fertilizer from
Advanced Chemicals and this will give a profit to Advanced Chemicals

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.

IV. MARKETING OBJECTIVES

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.

In order to accomplish these marketing objectives, Advanced Chemicals has to


concern on many things and among of it is the SWOT analysis in order to make
sure all the progress is running well. Advanced Chemicals can use their R&D
Department in order to achieve the marketing objective that is achieving 1.5
billion in the net profit for 12 month. For example, the R&D Department in the

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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)

Target Market of Advanced Chemicals

Small Individual Individual Customers


Medium Customers (Housewife's)
Enterprise, 2 (Housewife's
0% ), 20% BusinessCustomers
(Retailers)

Farmers
Farmers, 30 Business
% Customers
(Retailers), 3 Small Medium
0% Enterprise

Target Market 1: Individual Customers (Housewife’s)

The first target market of Advanced Chemicals is individual customers


that are housewife’s. This is because Advanced Chemicals are manufacture
insecticides product such as aerosol and coil insecticides. This type of

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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.

Target Market 2: Business Customers (Retailers)

Business Customers that is retailers also the target market of Advanced


Chemicals. This is because Advanced Chemicals are manufacture fertilizers,
herbicides, fungicides and insecticides product and the retailers such as Giant,
Tesco and Macro usually buy in a large quantity and this will give a high profit to
the Advanced Chemicals so that Advanced Chemicals will focus on Business
Customers as their target market.

Target Market 3: Farmers in the agricultural sector

Farmers are the target market of Advanced Chemicals because one of


the product manufactures by the Advanced Chemicals is fertilizers. Nowadays
the government of Malaysia are encourage the unemployment to involve in the
agricultural sector and because of this the fertilizers produce by Advanced
Chemicals will be demand by the farmers so that Advanced Chemicals able to
get a profit when a business transaction with the farmers.

Target Market 4: Entrepreneurs in the Small Medium Enterprise

Entrepreneurs in the Small Medium Enterprise (SME) are the target


market of Advanced Chemicals. In Malaysia SME are growing fast especially at
the rural area and the example of SME is food industries and this food industry
usually have a high potential to be infected by the fungus. Advanced Chemicals
are manufactured a fungicides product and because of this entrepreneurs in the

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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

Advanced Chemicals are manufacturing chemicals products and their


products are fertilizers, herbicides, fungicides and insecticides. All of the products
are high quality product that had been approved by SIRIM and their product also
has a copyright where the other company cannot duplicate their products. Beside
that, all of the products also had been test scientifically by the R&D Department
in order to avoid any circumstance when using these products.
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Price

Advanced Chemicals is a new company in the chemicals industry and


because of this the suitable pricing strategy is penetration market strategy where
Advanced Chemicals has to set a low price for a new product in order to attract a
large number of customers and a large number of market share. This may
encourage the repeat purchase at Advanced Chemicals.

Promotion

Advanced Chemicals can use the promotional tools to make a promotion


in order to attract potential customers toward the products manufactured by
Advanced Chemicals. Advanced Chemicals can offer a discount where the first
100 customers will get 30% discount for the products of fertilizers, herbicides,
fungicides and insecticides and because of this promotion in may encourage
potential customers to buy the products from the Advanced Chemicals.

Place / Distribution

Advanced Chemicals is a new company in the chemicals industry and


because of that Advanced Chemicals has to make sure all of their product will be
sale at many place. For example Advanced Chemicals has to distribute their
product at the urban and rural area so that the citizen from city and village able to
buy the products from Advanced Chemicals. Beside that, Advanced Chemicals
also has to distribute their products to the popular retailer in Malaysia such as
Tesco, Giant and Macro this is because the end user customers usually go out to
shopping at all of this popular retailers.

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VI. MARKETING IMPLEMENTATION

A. Marketing Organization

The marketing objective in 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. In order to make sure this objective can be achieve, Advanced
Chemicals has to make sure they able to implement their marketing strategy well.
Advanced Chemicals will divide their marketing functional by group into four
group base on their target market that is:

1. Individual customers (Housewife’s)

2. Business Customers (Retailers)

3. Farmers in the agricultural sector

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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.

When Advanced Chemicals divide their marketing functional by group it


will enable Advanced Chemicals to perform well in their operation especially in
the implementation process in marketing plan for Advanced Chemicals. Beside
that it also can overcome the problem that occur during the implementation
process in the marketing plan, this definitely will benefit Advanced Chemicals
because they can perform well in their operation beside that it can also help
Advanced Chemicals to monitor all the activities from their competitor such as
Texchem Group, CCM and Hexstar 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.

• On January 5th, the General Manager of Advanced Chemicals will appoint


Sales Manager in order to be a leader for each group base on their target
market and all the leaders must have high interpersonal and leadership skills.

• By January 15th, the Human Resource Department in Advanced Chemicals


will make the internal recruitment in order to absorb it into the group. The
required criteria for this internal recruitment is the employees must able work
as a team and have a full commitment on the task given by Advanced
Chemicals. This is because Advanced Chemicals want to make sure this
implementation can run smoothly without any problem.

• 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 August 15th, Advanced Chemicals will contact their potential customers


especially their target market such as farmers in the agricultural sector. The
person in-charge is the General Manager of Advanced Chemicals, this is
because General Manager has a high charisma and this can improve the
relationship between Advanced Chemicals and customers.

• By September 1st, prepare a paperwork about the products and price


quotation about the products of Advanced Chemicals to their potential
customers especially to their target market. The person in-charge is Sales
Manager where the Sales Manager has a full decision making authority to
approve or decline the price quotation prepared by each group.

• By October 1st, make a survey about their customers satisfaction regarding to


the paperwork and price quotation from Advanced Chemicals.

• 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

A. Performance Standards & Financial Controls

The comparison of the financial expenditures with the plans goals is


important to be including in the project report. The following is the performance
standard and financial controls suggested for Advanced Chemicals.

• 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.

• Sales Manager also has a responsibility to control the budget in Advanced


Chemicals this is because they need to prepare the expenditure report to the
General Manager of Advanced Chemicals.

• Human Resource Department also has a responsibility to make the staff


recruitment in the Advanced Chemicals this is because the quality of staff is

25
depend to their qualification so that it is important to Human Resource
Department to recruit the good candidates for Advanced Chemicals.

• Production Department also has a responsibility to produce enough fertilizers,


herbicides, fungicides and insecticides product this is because it is important
to make sure to fulfill the demand of their customers and this definitely will
make the customers feel satisfy with the products offered by Advanced
Chemicals.

B. Monitoring Procedures

In order analyze the effectiveness of the marketing plan for Advanced


Chemicals, Advanced Chemicals can compare the current performance with the
marketing plan objectives. The monitoring procedure is important in the
Advanced Chemicals because in order to make sure the progress of this
marketing plan run smoothly. These monitoring procedures as the following:

• 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.

• The leaders of each group that is Sales Manager in Advanced Chemicals


also play a role where they had to monitor all the work done by their

26
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

1. Principles of Marketing: An Asian Perspective – Philip Kotler, Gary Armstrong,


Swee Hoon Ang, Siew Meng Leong, Chin Tiong Tan, David K. Tse – Prentice Hall
– 2005.

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

7. www.pharmacy.gov.my/html/legislations/Poison act 1952.pdf

8. http://www.moh.gov.my/static/PressReleaseMg16_2008.pdf

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