Business Plan

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EXECUTIVE SUMMARY

Going green, its a phrase thats becoming more common as people start to realize the
enormity of the environmental challenges we all face. Everybody knows the earth is in
trouble. Every day we see new stories about global warming, acid rain, oil spills,
deforestation, or nuclear waste. Here at Eco Friendly Enterprise we want to help the
consumers understand what it means to be green and the impact on their eco-friendly choices
can have. When they understand simple ideas for green living, the small changes we all make
every day can add up to make a big difference.
Eco Friendly Enterprise has recognized the impact on the human living and thus, introduced a
new brand product to Malaysia which is known as Comfort Go Green Chair (CGGC). The
reason we chose this product among others are because we want to make a difference that the
material we used to make the product is very high capacity and do not harm the environment.
In addition to using less, we produce the CGGC using reusable and recyclable items.
Recycling is processing used materials (waste) into new, useful products. This is done to
reduce the use of raw materials that would have been consumed. Recycling also uses less
energy and a great way of controlling air, water and land pollution.
In our business, the marketing mix strategy plays a very important role to keep the business
running effectively. The marketing mix strategy is also known as 4Ps that consists of
product, price, place and promotion. For product strategy, we decided to produce Comfort Go
Green Chair (CGGC) which is 100% made using recycle products and it is a handmade
product that is done by our skilled workers. The price set on the CGGC is MYR49.90. It is
very reasonable and affordable for all social classes and even people in the urban or rural
areas can consume this product. For place strategy, our company uses selective distribution
channel to communicate and distribute our product to the consumers. Lastly, the integrated
marketing communication which is also known as promotion strategy can be particularly
powerful to the organization. Our company uses four types of promotional tools which are
advertising, sales promotion, direct marketing and personal selling. Hence, it needs to be plan
and execute with the overall teams effort to communicate the benefits and value of our
product to the target market.

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INTRODUCTION
Our company is named Eco Friendly Enterprise where the words Eco Friendly literally means
earth-friendly and do not harmful to the environment. This term most commonly refers to
products that contribute to green living or practices that help conserve resources like water
and energy and prevent from air, water and land pollution. This reflects our business rationale
behind which is to provide comfortable, silent and pollution free product to the consumers.
Eco Friendly Enterprise was established on 1 st April 2016 in Jalan MP14, Taman Merdeka
Permai, Batu Berendam, 75350, Melaka. It was equally owned and managed by 6 members
who share profit and loss equally, whereby each of the partner contributes the capital equally
as stated in the Partnership Act 1961. Members of the partnership are Fifi Nor Fazira Binti
Mohd Aniza, Siti Hajar Binti Fathol Karib, Nur Afiqah Binti Abu Bakar, Nor Dalila Saadah
Binti Abdullah Siam, Ahmad Haris Bin Johar Ariffen and Zul Hanizan B. Abdul Razak. We
came from a business oriented background since all of us study in the same business school,
so it does not a matter that six of us would eventually become an entrepreneur. Eco Friendly
Enterprise is currently operating from 9 am until 5pm every day and will be close on
weekend but depends on the companys orders.
Since our businesses are still new to the market, we are very delightful to make our product
which is Comfort Go Green Chair (CGGC) well-known towards Malaysian people. We are
ready to introduced, face the challenges and grab the opportunity in running the business in
an early condition. The product that we produced is very suitable for all kind of market
segmentation including kids and parents. As the design of the product is simple and classic, it
is based on the consumers preferences.
Our companys tagline is Save earth, save a life and stay comfort with go green chair. By
recycling and reusing, we reduce the amount of waste that sits in landfills. Venturing a
business together with the encouragement from each of the members, we decided to
transform and make our chair more practical and easier to move around. We start selling the
products in small quantity because consumer must make early reservation if they want to
consume the chair because the product is 100% handmade and 100% using recyclable items
and not using the machine. This is what makes our product different from others, we
emphasized the value of the nature and consider the environmental problems to wellmaintained green spaces and get involved in local efforts to start saving the earth.
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TARGET MARKET
A target market is a set of buyers sharing common needs or characteristics that the company
decides to serve (Kotler et al., 2009). It is a group of customers with needs and wants that can
be satisfied by the business through the supply of goods and services. The goal is to reach a
subset of the population who may be interested in our product. Target marketing involves
breaking a market into segments and then concentrating our marketing efforts on one or a few
key segment.
Eco Friendly Enterprise focuses on selling and promotes our products to a total whole new
market and consumers. Since our company is still fresh, target market is necessary to ensure
the products and services can fulfil customer wants and needs and at the same time we can
rise and earn more profits.
First of all, we have decided our main target market and consumer are people who already
has an income in Malaysia. We want to introduce our CGGC to Malaysian people despite
their background, age, gender or even weight especially for those who are working from a
lower level of income to the higher level of income. Parents and kids can use the chair while
watching television or even playing games on a PlayStation. The chair can also be consumed
for relaxing while chatting with a friends or officemates. The chair can be consumed in
various ways according to the consumer preferences.
Since our product can be used by everyone, we aim to explore the diversity of the social and
economic characteristics of people living in the urban area. The reason we chose the urban
area as our target market because people in the urban area have a higher cost of living and
income. They afford to buy the chair and they dont really expose about going green and
recycling the products. So we grab this chance to introduce to them that our product is what
they really need so that they understand the value of recycling and at once decrease the
pollution. Instead of supporting deforestation and illegal logging, they should start
concerning about how these activities give an impact to the environment. Therefore, these
approaches make us easy to convey our message about going green and preserve the
environment.

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MARKET SEGMENTATION
Market segmentation is the process of subdividing a market into distinct subsets of customers
who behave in the same way or have similar needs. Eco Friendly Enterprise believe, through
market segmentation the firm can provide higher value to customers by developing a market
mix that addresses the specific needs and concerns of the selected segment.
SEGMENTATION
Geographic
Demographic

Psychographic

DESCRIPTION
Country: Malaysia
State: All urban area
Age: 5 years and above
Sex: Both male and female
Religions: All religions
Income: From lower income to
higher income.
Social Class: Lower, middle and
upper class.
Lifestyle:
Single
living,
entertainment life style and family
life style.

CURRENT MARKETING SITUATION (SWOT ANALYSIS)


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SWOT analysis is an acronym for Strengths, Weaknesses, Opportunities and Threats. It also
a business analysis technique that organization can perform for each products, services, and
markets when deciding on the best way to achieve future growth. It included that Strength (S)
and Weaknesses (W) is considered to be internal factors over which have some measure of
control. Also, Opportunities (O) and Threats (T) are considered to be external factors over
which have essentially no control. It also the most renowned tool for audit and analysis of the
overall strategic position of the business and its environment. Its key purpose is to identify
the strategies that will create a firm specific business model that will best align an
organizations resources and capabilities to the requirements of the environment in which the
firm operates. (Experts, n.d.)
It involves specifying the objective of the business venture of project and identifying the
internal and external factors that are favourable and unfavourable to achieve the objectives. In
other words, it is the foundation for evaluating the internal potential and limitations and the
probable or likely opportunities and threats from the external environment. It views all
positive and negative factors inside and outside the firm that affect the success. A consistent
study of the environment in which the firm operates helps in forecasting or predicting the
changing trends and also helps in including them in the decision-making process of the
organization. (Experts, n.d.)
Strength is that one of the SWOT analysis that can be either tangible or intangible. These are
the qualities that enable us to accomplish the organizations mission. These are the basis on
which continues success can be made and continued or sustained. It also the beneficial
aspects of the organization or the capabilities of an organization, which includes human
competencies, process capabilities, financial resources, products or services, customer
goodwill and brand loyalty.
Product that our company has been produced also has some strength that can be attractive the
consumer. First, our product that is actually innovation from recycled product which are egg
container, box and others. It also make attracted and being diversity from the others. Thats
mean all recycled product that have own idea to make a new product. Then, it also improve
sustainability and eco-friendly product. Making a truly eco-friendly product keeps both
environmental and human safety in mind. At a minimum, the product is non-toxic.
Other eco-friendly attributes include use of sustainably grown or raised ingredients,
produced in ways that do not deplete the ecosystem. Organic ingredients or materials are
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grown without toxic pesticides or herbicides. Products with made from recycled materials
contain paper reclaimed from waste products and made into something new. It also one of
environmental friendly products addresses recycling, sustainable production and reduction of
energy consumption and transportation. Biodegradable products break down through natural
decomposition, which is less taxing on landfills and the ecosystem as a whole.
Last strength of our product is strong compact and compressed. It means all people can sit on
the chairs because the centre of gravity is a kind of average position for all the weight of an
object. So, the centre of gravity depends on how the weight of an object is distributed. Now
the object is balancing if its centre of gravity is above its points of support. For our product,
our company use the egg container to make it balancing and strong. It same like the
arrangement of the balanced nails that can see most of them are hanging well below the head
of the tenth nail. That means the centre of gravity of this arrangement is well below the point
of support. So, it can see that it isnt really a balancing trick after all and the nails are hanging
that same as our product as well.
For sure, each product can have positive and negative factors. Negative or weaknesses are the
qualities that prevent our company from accomplishing our mission and achieving our full
potential. These weaknesses deteriorate influences on the organizational success and growth.
Thus, weaknesses are the factors which do not meet the standards that feel our company
should meet. It also in an organization may be insufficient research and development
facilities, narrow product range, and poor decision making and controllable.
For weaknesses that have for our product is high price or expensive. It means the cost for
consumer will be incurred because the product is produced by handmade. So as well the price
may be high because of the effort of the labour efficiency. Next, our product is perishable if
wet. It is because our company use egg container as base the product and if it wet, the product
may be damaged. So, our product has to put far away from the place that always wet and has
to put at the safe place to avoid the product perishable. Last, it is because not having enough
stock for continuous flow of consumers. It is because our product is made from recycled
product. So if the more consumers make order, the stock will be limited and take time to find
the stock to make the product.
The next that be included in SWOT analysis is opportunities which are presented by the
environment within which our company operates. These arise when an organization can take
benefit of conditions in its environment to plan and execute strategies that enable it to
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become more profitable. That make an organization can gain competitive advantage by
making use of opportunities. Opportunities may arise from market, competition, industry or
government and technology. Increasing demand for telecommunications accompanied by
deregulation is a great opportunity for new firms to compete with existing firms for revenue.
Opportunity that can be related with our product is using recycling product can reduces our
costs. It means with avoiding, reducing, reusing and recycling that may lower our companys
costs. For example, a few simple changes to how us deal with egg container, box and others
can involve our staff in environmentally friendly processes while saving us money that avoid
using material unnecessarily. Then, reduce the paper needs by asking the staff to print doublesided. Also, reuse by encouraging staff to use scrap paper for message-taking instead of
purchasing message pads. Last, recycle by shredding excess paper that our company could
recycle this commercially or invite staff to take it home for their compost.
Then, by using recycle product also can attract the buyers who want something different. It
means who can aspect that by using egg container and box, it can produce to new product
such as chairs. It something that be different and be unique to be in consumers house. Last, it
can be opportunities for new market in the world. Make or produce product that from recycle
product that the new one in the market. Thats the creative innovation that also can attract the
consumer to never waste the recycle product and also make the new product for their own.
Thus, threats arise when conditions in external environment jeopardize the reliability and
profitability of the organizations business. It also compounds the vulnerability when it can
relate to the weaknesses as well as are uncontrollable. When a treat comes, the stability and
survival can be at stake. For example of a threat such as increasing competition leading to
excess capacity, price wars and reducing industry profits and others. By examining threats,
such as new competitors in the market, organizations can implement counter measures prior
to the threat occurring. To ensure success, organizations may need to deal with both future
and present threats.

A threat that our company has to face is challenge to match existing decor in the house. It
means while our company use the recycle product to produce the new product, it be limited
for the design to match with the decor in the house. It is because our company only use the
stock that has already and make the product. So, the combination colour may be not suitable
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for decoration. Then, fear of change of the surrounding people. It is because the people think
that collect the recycle product is such dirty and gross from the point of view of the
community. Such laws will make products more expensive and discourage innovative ways
of dealing with waste like reducing the amount of packaging. Last, the other company can
copy easily the product because it is easy to collect the stock. Since the product that produce
by recycle product that easily get from each corner area. So, the products easily make for the
other company.
SWOT analysis is instrumental in strategy formulation and selection. It is a strong tool, but it
involves a great subjective element. It is best when used as a guide, and not as a prescription.
Successful businesses build on their strengths, correct their weakness and protect against
internal weaknesses and external threats. It may cause organizations to view circumstances as
very simple because of which the organizations might overlook certain key strategic contact
which may occur. Moreover, categorizing aspects as strengths, weaknesses, opportunities and
threats might be very subjective as there is great degree of uncertainty in market. It also does
stress upon the significance of these four aspects, but it does not tell how an organization can
identify these aspects for itself.

MARKETING MIX STRATEGY (4Ps)


Developing a marketing strategy enables a business to plan for its limited resources in order
to achieve stated marketing objectives. The key ideal of marketing strategy is to deliver
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customer satisfaction yet provide business with a competitive advantage. The marketing
strategy is based on the marketing mixes that are controllable variables, which are known as
4Ps. These four components are product, price, place and promotion.
Marketing starts with product since it is what an organization has to offer its target market.
Product is the most important element of the marketing mix. After all, if we did not have the
product, the company would have no basis to exist. A product exists as a result of efforts by
the seller to match their resources with the requirements of the market.
1) Product Strategy
As the first of the marketing mix variables, product is the starting point for the majority of
planning activities. A product is anything that can be offered to a market for attention,
acquisition, use or consumption that might satisfy a need or want. (Kotler, 2007) Our product
is tangible since it can be felt and seen.
In a product strategy, we give a special attention on the quality, design and creativity. The
main strategy is the quality of the product. We ensure that the recycle items we used to make
our product are strong and solid enough to serve our target market. As our main items to
produce CGGC are egg carton, box, sponge and recycle clothes, it is widely suitable for all
types of gender, age and weight. People with great weight can also consume this product
because it is very strong and secure that can even patch everyone who consume our products.
The quality we offer is very inviting and standard because it has a distinctive attribute that
makes it different from other products such as the material and the solidity that we used to
make the product. Thus, consumer from wide range of distinct needs and wants can enjoy our
product without any doubt.
Next is the design of the product. Our product design has been decided upon the look and
functioning product as it can move to anywhere a consumer wants to consume the product.
Since it is easy to carry and very light, consumer can consume the product with what they
desire. The design and structure can add value to the product as well. The design of our
product is 100% from the recycle clothes which we alter and tailor for a better fit that suits
the chair in various ways. The creativity makes the product easier to use while stylistic design
can make the product more attractive to display in the customers home.
Apart from that, branding can be described as the personality of the product. It is a name,
term, sign, symbol or design or a combination of these items to indicate the identity of the
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products and to differentiate one manufacturer from the others. (Kotler & Armstrong, 2005).
We chose Eco Friendly Enterprise as our company name because it is suitable with the theme
we are executing in the project work which indicates Go Green Campaign that sends a
signal about our product quality. It is a very catchy and classic name that will catch people
attention just by hearing it. The name is also really easy to remember and pronounce. Eco
friendly products are products that do not harm the environment. In other words, our
company branding indicates that these product help preserve the environment by significantly
reducing the pollution they could produce. The types of branding that we use are
manufacturer brand and individual brand because we owned the brand itself. Our company
which is Eco Friendly Enterprise produces a product which is Comfort Go Green Chair
(CGGC) under Eco Friendly brand.
Packaging has traditionally been viewed as means of holding contents together and as a way
of protecting the physical good as it moves through the distribution channels. It involves
designing and producing the outer cover of the product, such as containers and wrappers. As
for our company, Eco Friendly Enterprise, packaging is very important component in
delivering CGGC to the buyers. It embraces both the art and design in preparing the chair. In
preparing Comfort Go Green Chair (CGGC), there would be two levels of packaging. The
first-level package is the packaging that holds the actual product. Our actual material here is
the egg cartons and it is surrounded by the boxes and sponges to protect the product. Next is
the second-level package. In some cases, the first-level package is protected by one or more
outer packages, this second-level package may act as the primary package for the product that
we are offering to our customers that consists two layers which are plastic bag and a huge
box. The advantages of using the plastic bag are that in some cases if we deliver a product to
the customer in a rainy day, it will not be affected by the rain or water because the plastic is
water resistant and will not harm the product.
The last but not least is labelling. Labelling refers to visual labels, symbolic or textual
information containing combinations of pictures, letters and numbers about a product for
product identification and reorganization. Such information can be related to price, quality,
content, nutritional qualities, health effects, the environment or the history of the product. The
types of labelling that our company use is informational labelling since it focuses on the
information that will aid the consumers to make proper selection. Since our business is still
new to the market, it was important for us to ascertain what is the most important to our
informational consumer base, in order for us to ensure that we met their requirements with
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our offerings and were adding value to their daily life. Eco Friendly Enterprise highlighted
about the importance and benefits of going green products and reuse recyclable items that
will affects the consumers life. Our company uses colours and designs to attract customers to
consume our product that differentiates our product from competitors. Another important
facts on the label contain information for buyers concerning do not wash, do not dry cleaning
and do not spin are stick together to the chair. In addition, our company also used the
Universal Product Codes (UPC) symbol printed on a package. It allows the bar codes to be
scanned by matching the codes with the brand names and prices. UPC bar codes is every
important to our business because it helps us to speed-up the check-out process and keep
better track of inventory.

PROCESS IN MAKING COMFORT GO GREEN CHAIR (CGGC)


Things to be needed :

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1) Black tape

2) Thread

3) Needle

4) Egg cartons

5) Box

6) Knife

7) Scissor

8) Sponge

PROCESS TO MAKE COMFORT GO GREEN CHAIR (CGGC)

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Step 1 :
Wrapping
the egg
cartons

Step 4 :
Dress the
chair

Step 2 :
Putting a
sponge

Step 3 :
Fill in the
recycle
clothes

Figure 1

Step 1 : Wrapping the egg cartons


Figure 1 above indicates the process to make CGGC. The first step is to select a bunch of egg
cartons; we use 35 pieces of egg cartons to produce one Comfort Go Green Chair (CGGC).
Wrap the egg cartons with a box using a black tape. The box is divided into smaller pieces
with a knife to fit the egg cartons. The function of the box is to flatten the egg cartons so that
the process of putting the sponge will be run smoothly.

Figure 1.1
Step 2 : Putting a sponge
The sponge is split according to the size and the position of the egg cartons. As you can see in
the figure 1.2, the sponge is attached to the box using a black tape. The function of the sponge
is to provide more comfortable and to soften the unbalance object before putting anything
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else and to make it cosier whenever a buyers consume the chair. Furthermore, the sponge
makes the product easier to carry because each point of the egg cartons that has been wrapped
with a box that sharp, this is where the sponge plays it roles. Apart from that, it is to avoid
slippery.

Figure 1.2
Step 3 : Fill in the recycle clothes
After the egg cartons has been wrapped with a box and a sponge, the next step is to dress the
material using recycle clothes as shown in the figure 1.3. We chose black fabric as a base
because it makes the product more dressy and casual to add with other fabric with a simple
look and elegance before adding with accessories. When putting together the black fabric, fit
becomes more important. Take advantage of the fact that black clothes is more fitted and
flattering rather than fancy design. The black fabric is then stitched by our skilled workers to
avoid it from moving and to make it stay still.

Figure 1.3
Step 4 : Dress the chair
This is the final stage in making our product which is Comfort Go Green Chair (CGGC). The
black fabric is dressed using a recycle shawl as shown in the figure 1.4, with a classic design
that makes it look more interesting and very eye-catching. The shawl is then stitched to the
black fabric together with a white lace as the accessories. If u noticed, there are ties at the end
of the shawl which the function is to make the product looks more inviting in the consumers

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eye. Consumer can also choose to either tie the shawl or not to tie it, depends on the
consumer preferences.

Figure 1.4

2) Price Strategy
Price is the only marketing mix strategy that brings revenue to a firm. In an exchange
process, price is very important to a firm because it will influence whether consumers or
organizations will make purchases. So price needs to be set right as to attract customers. To
form a consistent and effective marketing programme, price decision must be coordinated
with other marketing mix strategies, which are distribution strategy (place), promotion

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strategy and product quality. Through pricing, the organization manages to support the cost of
production, the cost of distribution, and the cost of promotion.
Price is the amount of money charged for a product or service, or the sum of all the values
that customers give in order to gain benefits of using a product or service (Kotler &
Armstrong, 2010). As for Eco Friendly Enterprise, we used price skimming strategy to charge
a little bit higher price for our customer who consume the chair and then slowly lower the
price to make the product available to a wider market. The reason we select price skimming
strategy because the production is limited due to the technological breakthrough because our
product is 100% made by skilled people. Our company also offers online reservation. Whats
make our company distinct from a competitors are we offer Freight Absorption Pricing which
means we will bear the whole part of the actual freight charges and do not pass them to the
buyers. The choice of transportation mode and distance and any claim for damages will not
matter to the buyers in this case, as costs of transportation are absorbed by Eco Friendly
Enterprise. Furthermore, our company agreed to use Odd-even Pricing method
(Psychological Pricing). Our company will therefore charge MYR49.90 instead of MYR50.
Our company gain 17% profit from each of the units of CGGC we managed to sell. The
reason why this method work is because buyers will still say they purchased the product
under MYR50 even though it is a few ringgit or cents away.
Calculation of mark-up price on costs :
Cost per unit = Variable cost + (Fixed cost/Unit sales)
= (14.40 + 9) + (7200/400) = 41.40
Selling price = (Mark-up Cost per unit) + Cost per unit
Selling price = (0.20 RM41.40) + RM41.40
Selling price = RM49.90

SETTING THE PRICE


Item
1) Direct cost
Direct Material :
Egg cartons
Boxes
Sponge

Cost Per Unit (RM)

Total (RM)

0.10 35
0.30 2
0.40 4

3.50
0.60
1.60
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Clothes

0.70 3

2.10

Direct labour

1hr 5 1hr 4

20

0.50 2
0.50 2
0.05 2
0.50 2
1.50 2

1
1
0.10
1
3

2) Indirect cost
Overhead cost
Scissors
Knife
Needle
Thread
Black tape

Total

33.90

Item
Fixed cost
:
Staff salaries
Variable cost :
Utilities - electricity
- water

Cost Per Unit (RM)

Total (RM)

1800 4

7200

0.48 30
0.30 30

14.40
9

Total Cost
7223.40
Fixed and Variable cost are for one month period.
Profit = (Selling Price Units Sold ) Total Cost
= Total Revenues Total Cost
Item

Cost Per Unit (RM)

Total (RM)

Expected Sales

49.90 400

19960

(-) Total Cost

(7223.40)

Total Revenues

12736.60

(-) Total Cost

(7223.40)
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Profit

5513.20
Expected sales for one month period

BREAK-EVEN POINT

RM (000)

20

15

Revenues
Total Costs

10

Fixed Costs
5

Sales Volume (00)


1

The break-even point for Eco Friendly Enterprise indicates that the company needs to
produce more than 400 units to gain profit. Our company expected when the total revenue

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covers all the total cost will be in the next 3 months, more or less. Additional quantity sold
beyond the break-even point will bring profit to the company.

3) Place Strategy
Place or distribution in the marketing mix refers to the channel, or the route, through which
goods move from the source to the final user. In marketing, place could be the intermediaries,
distributors, wholesalers and retailers. The right place means greater chances of sales over a
longer period of time. This can be translate into greater market share, more profits and better
ability to track changes in the marketplace in thinking, styles, fashion and needs.

3.1 Distribution Channel


Marketing channel or distribution channel can be defined as a set of organized network firms
and institutions whose activities are interrelated in moving products or services from the
producers or the suppliers to the ultimate consumers or end-users. (Yusniza Kamarulzaman,
2013) In addition, efficient and effective distribution is important if the organisation is to
meet its overall marketing objectives. If an organisation underestimates demand and
customers cannot purchase products because of it, profitability will be affected.
There are many routes a product can take to reach its final customers. Our company make
decisions to choose the simplest consumer product channel which is direct channel that to sell
directly to consumers. (Yusniza Kamarulzaman, 2013) This channels that do not use
intermediaries to deliver products to consumers through this channel avoid passing the
intermediaries costs to the end users. Refer to business dictionary, direct channel in which a
producer, supplies, serves directly to an ultimate user or consumer without any middleman
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which are agent, distributor, wholesaler and retailer. In this instance, our company may own
all elements of its distribution channel or sell through a specific retail location. However, our
company have to perform the wholesale functions themselves to cater to end users demand.
Our company use the different forms of technologies and include internet sales and one on
one meeting are also ways to sell directly to the consumers. Such channel grows in popularity
with the growing interest in online shopping, greater efficiency of courier services, and ease
of online payment. One benefit of this method is that the company has complete control over
the product, its image at all stages, the user experience and how it is sold.

3.2 Distribution Strategies


Distribution strategies that can be defined the method use to get our product or service
through various distribution channels to the ultimate purchaser or end users. In other words,
how and where the consumer buys our product or service. It may seem simplistically possible
and smarter for our company to directly distribute its own products without the help of a
channel and intermediaries. This is especially so because the internet allows sellers and
buyers to interact in real time. But in actual practice it may not make business sense for a
company to set up its own distribution operation. Even in cases where our company does sell
directly, there remain activities that are performed by other company.
The first step to deciding the best distribution channel to use, our company needs to analyse
the consumer and understand their needs, discuss and finalize the objectives and work out
distribution tasks and processes. Also, our company may need to use different strategies for
different types of products. The strategy that our company can be used is selective
distribution which is a type of distribution that lies between intensive and exclusive
distribution. This strategy may involve the use of more than a few but less than all the
intermediaries who are willing to carry a particular product. It also enables our company to
gain adequate market coverage with more control and less cost than intensive distribution. In
this strategy, a product may be sold at a selective number or outlets.
In addition, our company can improve its distribution strategies by mapping our products to
the end user. Determining customers channel preferences and comparing these preferences
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with actual availability. Then, examining competitors strategies and comparing them and
their effectiveness with our company by confidential interviews with our distribution partners
to identify areas for improvement, as well as existing strengths to be encouraged.
This strategy involves our company using a limited number of outlets in a geographical area
to sell products. An advantage of this approach is that our company can choose the most
appropriate or best-performing outlets and focus effort on them. It also works best when
consumers are prepared to shop around. In other words, the consumers have a preference for
a particular brand or price and will search out the outlets that supply. This alternative is the
middle path approach to distribution. Here, the firm selects some outlets to distribute its
products. This alternative helps focus the selling effort on a few outlets rather than dissipating
it over countless marginal ones.

It also enables our company to establish a good working relationship with channel members.
Selective distribution also can help our company gain optimum market coverage and more
control but at a lesser cost than intensive distribution. Both existing and new firms are known
to use this alternative. Selective distribution is pay attention to very specific geographical
locations regarding the availability of a specific product. It is also because our company want
to maintain a specific quality store for our product. The advantages of selective distribution
are good market coverage, increased control and reduced costs as compared to intensive
distribution.
To be fair, there can be sound reasons for these perceived weaknesses. More typically,
however, they are due to failings such as lack of understanding of the ultimate consumers and
their preferences, or a failure to acknowledge the importance of a distribution strategy.
Now is absolutely NOT the time to blindly continue the status quo with our company
distribution strategies. The Internet is creating sea-changes in terms of traditional
manufacturer-distributor relations. It has seen significant waves of disintermediation in
multiple product lines, and can facilitate cost-effective broadening of distribution channels.
When a consumer in considering buying a product, consumer tries to access its value by
looking at various factors which surround it. Factors like its delivery and availability which
are directly influenced by channel members. Similarly, a marketer too while choosing the
distribution members must access what value is this member adding to the product. The
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marketer must compare the benefits received to the amount paid for using the services of this
intermediary.
These benefits can be following time saving. Along with costs, time of delivery is also
reduced due to efficiency and experience of the channel members. Also, resellers help in
boosting sales which is resellers often use persuasive techniques to persuade consumers into
buying a product whereby increasing sales for that product. They often make use of various
promotional offers and special product display to entice consumers in buying certain
products. In addition, consumers also receive financial support that the reseller offer financial
programs to their consumers which makes payment easier for the consumer which can buy on
credit or buy using a payment plan and others.

Then, resellers also provide the valuable information to the consumer. Our company who
include resellers for selling our products rely on them to provide the information which will
help in improving the product or in increasing its sale. High-level channel members often
provide sales data. On all other occasion our company can always rely on the reseller to
provide them with consumer feedback.
Last, consumer convenience which including members in the distribution chain provides
consumer with a lot of convenience in their shopping. If every manufacturer owned its own
store then consumers would have to visit multiple to complete their shopping list. This would
be extremely time-consuming as well as taxing for the consumer. Thus, channel distribution
provides accumulating and assorting services, which means they purchase from many
suppliers the various products that a consumer may demand. Secondly, channel distribution is
time saving as the consumer can find all that they need in one store and the retailer.
In assessing possible channel costs, there are some costs that our company may have to weigh
in order to make channel decisions. First, our company may lose revenue because
intermediaries need to be either paid for their services or allowed to resell at a higher price,
our company may lose out on revenue. Pricing needs to stay consistent, so our company will
have to reduce its profit margin to give a cut to the intermediaries.
Along with revenue, the message received by the consumer is also in the hands of the
intermediary. There is a danger of wrong information being communicated to the consumer
regarding product features and benefits which can lead to dissatisfaction. Furthermore, when
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our product is handed over to an intermediary, how much importance it gets is now out of our
companys hand. The intermediary may have incentives to push another product first at the
expense of others.
Place or distribution channel is a critical element of marketing. After all, marketing is about
getting the right product, in the right quantity, to the right place and at the right time. Once
thats determined, our company can figure out whether to sell directly or through a marketing
intermediate such as retailers or retailers or wholesalers by estimating which one would bring
in the most profit. Our company can do so by using market data that shows the number of
potential sales, plus the price per product minus the cost of distribution.

4) Promotion Strategy
Promotion refers to raising customer awareness of a product or brand, generating sales, and creating
brand loyalty. It is one of the four basic elements of the market mix, which includes the four P's: price,
product, promotion, and place. Promotions refer to the entire set of activities which communicate the
product, brand or service to the user. The idea is to make people aware, attract and induce to buy the
product, in preference over others.

Role of promotion
Promotion aims directly to meet the needs of the target market and serve the overall goals of
the organization. Promotion is one of the elements of the marketing mix and supports the
other elements to ensure that a good marketing program is executed. Marketers must
carefully plan, implement and coordinate promotional communications to make the best use
of them. The role of promotion includes offering a valid and firm guarantee to the customers
that their good and products are distinct from their competitors. The distinction does not only
mean different in the sense of the quality but also on price, delivery, service and features.
This strategy is also to facilitate exchanges directly or indirectly by informing individuals,
groups or organizations to influencing them to accept a firms product.

4.1 Advertising

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Advertising involves non- personal presentation, mostly paid promotions often using mass
media outlets to deliver the marketers message. With advertising, a company engages in a
one-way communication to the prospect or customer with little feedback opportunity for the
customer experiencing the advertisement, the advent of computer technology and, in
particular, the Internet has increased the options that allow customers to provide quick
feedback.
There are two types of advertising but our companies using product advertising which define
as any method of communication about the promotion of our product an attempt to induce
potential customers to purchase the product. Product advertisement can be done in numerous
communication channel, some common channels are print ads (newspaper and magazines),
radio, television, billboard, direct mail, brochures and catalogues, signs, in-store displays,
posters, mobile apps, motion pictures, web pages, banner ads, emails. It can be found
everywhere. Advertising all play a role in how customers will be targeted and how many will
respond to the advertisement message.
Purpose of advertising
Advertising is at the front of delivering the proper message to customers and prospective
customers. The purpose of advertising is to convince customers that a company's services or
products are the best, enhance the image of the company, point out and create a need for
products or services, demonstrate new uses for established products, announce new products
and programs, reinforce the salespeople's individual messages, draw customers to the
business, and to hold existing customers.
Medium that our companies using:
Online advertising
Online advertising is a form of promotion that uses the Internet and World Wide Web for the
expressed purpose of delivering marketing messages to attract customers. Online ads are
delivered by an ad server. Nowadays, all business are using social network to viral their
product. Refer to Figure 1.5, our companies are also using social network advertising such as

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Facebook, twitter, Instagram, and Wechat like Figure 1.6 to advertise our product and
companies.
Our company Eco Friendly Enterprise more focusing on social media marketing, specifically
Facebook, is a crucial step in communicating with customers. This is because Facebook is
heavily trafficked and used on a daily basis by individuals around the world. Furthermore, it
is instantaneous. The moment a company makes a post on Facebook, it becomes available for
everyone to see, like, and share. This makes it very easy for companies because it does not
require a middle-man to place their ads for them; they can now do it themselves at their
convenience.
Furthermore, Facebook gives users the ability to target individuals by geographical location,
likes and interests, gender, age, and other demographics making it even easier to direct
advertising messages to the consumers they want to buy their products. Social Media
Marketing is the way to go about advertising in the 21st Century.

Figure 1.5

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Figure 1.6

Posters
Poster also one of our channels to introduce our new product to all target market. Its easier to
found and readable. A poster is any piece of printed paper designed to be attached to a wall or
vertical surface. Typically posters include both textual and graphic elements, although a
poster may be either wholly graphical or wholly text. Posters are designed to be both eyecatching and informative. Posters may be used for many purposes. They are a frequent tool of
advertisers trying to communicate a message. Posters are generally low-cost compared to
original artwork. Refer to Figure 1.7, we provide name of product, little information about
product, the picture of product, and our tagline.

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Figure 1.7

Brochure
Our company are using brochure to inform about our new company and new product. A
brochure is an informative paper document (often also used for advertising), that can be
folded into a template, pamphlet or leaflet. Brochures are advertising pieces mainly used to
introduce our company or organization and inform about products or services to a target
audience and all contact information, website, email and social network. Brochures are
handed out personally or placed in brochure racks in front of our company. Figure 1.8 and
1.9, brochure for our company.

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Figure 1.8

Figure 1.9

Customer-generated advertising
Customer-generated advertising used without payment has being made. For example,
a satisfied customer of a product may boast about their experience on social media.
This message may then lead someone else to buy that product. The consumer did not
do this with the intention of getting money out of their shared message, but that is
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what can happen. Especially with a channel as large and as effective as social media,
sharing ones opinion, positive or negative can be good or bad advertising for a
product.
4.2 Sales Promotion
Sales promotion is short- term incentive to encourage the purchase or sale of a product or
service and process of persuading a potential customer to buy the product. Sales promotion is
designed to be used as a short-term tactic to boost sales it is rarely suitable as a method of
building long-term customer loyalty. Sales Promotion is media and non-media marketing
communication used for a pre-determined limited time to increase consumer demand,
stimulate market demand or improve product availability. Examples include coupons,
sweepstakes, contests, product samples, rebates, tie-ins, self-liquidating premiums, trade
shows, trade-ins, and exhibitions.
The advantage of sales promotions is that the short- term nature of the offering often
stimulates sales for its duration. The ultimate goal of marketing promotion is to motivate
consumers to action: to ultimately make a purchase. Sales promotion offers an incentive for
that action.

Medium channel:
A coupon is a ticket or document that can be exchanged for a financial discount or rebate
when purchasing a product. Coupons offer instantly redeemable savings on certain products.
That means that consumers get an instant reduction on the price at the point of purchase.
They don't have to send anything to the manufacturer, they don't have to enter any type of
contest. They walk away from the store with the satisfaction that they have saved money.
Refer to Figure 2.0, the coupon that our company has provided to the consumer that is lucky.

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Figure 2.0
Benefits Coupon :

Increase the number of new customers - A customer may try a product just
because they have a coupon for it and like it enough to continue to buy it.

Build brand awareness - A consumer sees the brand name on the coupon
even when the coupon is not redeemed.

Reward current customers - Customers are delighted when they receive the gift
of savings from the manufacturer of a product that they buy regularly.

How Coupons are distributed


When an individual person or group of people attracted with our product while seen our
product at social network either poster or brochure they will contact us back using all contact
information that we provide then if they really interested with it we will offer her/ his the
available coupon.

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4.3 Direct Marketing


Direct marketing is a type of advertising campaign that seeks to elicit an action (such as an
order, a visit to a store or Web site, or a request for further information) from a selected group
of consumers in response to a communication from the marketer. Direct marketing is a form
of advertising which allows businesses and non-profit organizations to communicate directly
to customers through a variety of media including cell phone text messaging, email, websites,
online adverts, database marketing, fliers, catalogue distribution, promotional letters and
targeted television, newspaper and magazine advertisements as well as outdoor advertising.
Among practitioners, it is also known as direct response. Direct marketing allows businesses
and non-profit organizations to advertise and market directly to customers via a variety of
print and electronic mediums
Benefits to Buyers

Direct marketing is convenient, easy to use, and private. From the


comfort of their homes or offices, they can browse mail catalogues orr
company website at any time of the day and night.

Direct marketing is immediate and interactive- buyers can interact with


sellers by phone or on the sellers website to create exactly the
configuration of information, products, or services they desire and then
order them on the spot.

Benefits Sellers

Direct marketing is a powerful tool for building customer relationships.

Direct marketing can offer sellers a low cost, efficient alternative for
reaching their markets.

Direct marketing can also offer greater flexibility by allowing marketers


to make ongoing adjustment in their prices, programmes and promotions

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Customer Connection
Product information is delivered directly and impersonally. Questions can be
answered through websites or via email or directly via telephone.
Types of Direct Marketing Tools
Direct mails
Our company send news and offers to customers using the postal services and we also
provide a staff delivered to consumers mailboxes by deliver service.
Social media
Social media reaches out to targeted consumer groups and showcases compatible
goods and services. Nowadays, seller using social media to viral their product and
asking people to share, copy and paste the information about their product. Our
company used social media such as Whatsapp app and Wechat app that we can look at
Figure 2.1. Through mobile marketing, marketers engage with prospective customers
and donors in an interactive manner through a mobile device or network, such as a
smartphone, smartphone, or tablet.

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Figure 2.1

4.4 Personal Selling


Personal selling is where businesses use people (the "sales force") to sell the product after
meeting face-to-face with the customer. The sellers promote the product through their
attitude, appearance and specialist product knowledge. Our company aim to inform and
encourage the customer to buy, or at least show some interest. Personal selling is a personal
presentation by the firms sales force for the purpose of making sales and building customer
relationship. Personal selling is the two-way flow of communication between buyer and a
seller designed to influence a persons or group purchasing decision.
Personal selling involves direct spoken communication between seller and potential
customer. Our company, Eco friendly provide seller with attractive appearance and good
communication skills to promote our product. We also distribute the seller to a residential
area or in the few occasions in connection with the recycling campaign. The advantage of
personal selling that is the sales can control to whom a presentation is made, therefore wasted
coverage can be reduced, and through feedback, immediate modifications to the message are
possible.

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CONCLUSION
As a conclusion, after all point described, there is no doubt that eco products more beneficial
than harmful to the environment when compared with the use of ready product available on
the market. Based on my review, in 1990, people began to realize the use of ready available
on the market have an bad impact on their health. Starting from it, because they want to keep
fit, they joined .The main factor that the main reason is for health reasons.
In addition, these eco products also offer lower prices compared to the products available in
the market. The prices are cheaper due to the use of recycled materials that can be used.
Choosing to use eco products also help reduce the economic cost of a family and the money
can be used for other household needs. Our economy product also helps to reduce the
pollution caused by the manufacture of the finished product produced by the factory.

A decade ago, based on my research baby boomers enterprise represented the largest
percentage of the population. That generation of consumers valued savings, deals, instant
gratification, simplicity, and ease of use. Bigger and better were the terms used to convince a
baby boomer that a new product was one worth buying. Fast and simple were the words used
to convince a baby boomer enterprise to invest in a business's service. The new generations,
commonly referred to as X and Y, however, are not as concerned with fast, simple, cheap, and
big.
For the younger generations, activism and change are the driving force behind a huge
percentage of consumer decisions. Younger generations are concerned about the environment.
This may have started when kindergarten teachers started pounding the three "R's" into the
malleable brains of children reduce, reuse, recycle. Whatever the underlying reason, the up
and coming generation of consumers were hugely concerned with sustainability. Because this
is a generational trend and not a traditional fad, businesses can expect the eco-friendly
product movement to stick around at least until Generation Y has stopped consuming.
Lastly, all these advantages make eco product is the best product to be marketed in major
markets because it brings many benefits to consumers and the environment and help preserve
the environment and thus build the country 's most intelligent in the use of recycled
materials .

APPENDICES
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RECOMMENDATION FROM JUDGES


Judges

Recommendation

Since the weaknesses of our product is cannot be


washed because water can damage the egg curtain so

Panel 1

the panel suggest to us to cover up the egg container


with plastic first before we proceed to the next step.

Panel 2

Need a backup plan if the promotion given cannot


interact the customers.

Make a strategy to increase the next income.

A nice product and good in term of decoration but need


to focus more to improve neater stitch because a pin

Panel 3

that used on the chair is not suitable for the customer


that have children aged 10 years old below.

Panel 4

Make our chair to multipurpose use in the next design


such as has drawer to keep some items.

Increase mark-up price to get more profit.

The product name is too long, for starting make a

Panel 5

simple name to introduce the product to the customers


so that the customers can easily remember the name.

Panel 6

Using various style and vibrant colour of design so that


customers have the option to choose.

Let customers request their own design.

REFERENCES
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1. Experts, M. (n.d., n.d. n.d.). SWOT Analysis - Definition, Advantages and


Limitations. Retrieved April 21, 2016, from Management Science Guide:
http://managementstudyguide.com/swot-analysis.htm
2. Yusniza Kamarulzaman, N. K. (2013). Principle of Marketing. Kuala Lumpur:
Oxford Fajar Sdn Bhd.

3. Retrieved April 20, 2016 http://www.windsorchair.ca/chairmaking_process.html


4. Retrieved April 20, 2016 http://www.russfilbeck.net/chairmakingprocess.html

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