4.

MARKET RESEARCH AND ANALYSIS

In general, market research is a qualitative and quantitative evaluation of the
market. The market research also observes the scale of the market in terms of value
and volume, customers and market segment, competition and competitive edge,
market size and trend, and barrier to entry and regulation. Market research is
understood to be an individual business strategy or a business strategy as a whole.
The aim is to help new entrepreneurs of all sizes to make informed business
decision, especially on related strategies. The market survey for this product was
carried out from 25/05 to 26/05 through the google form platform. Responses from
42 respondents were recorded and analyzed for the improvements to our product.

4.1. Customers & Market Segment

For this Plantie Hydro Grow product, we were focus on both gender either
males or female with ages 20 years old and above that stuck at their house
during this pandemic covid-19. This product offers great benefit for student at
their home with great advanced quality product that help them relaxing after
online classes and also take care of the plant during their free time. This product
also targets customers that living in an apartment and a tight schedule working
user. Apartment resident have limited space to grow their crop, so by having
Plantie Hydro Grow product they can continue grow some crops in their house
without worrying their house will be a mess. Also this product helps tight
schedule worker to monitor their plant through bluetooth mood by using their
phone that allowed the customer take care on their plant during their working
hour as they having hard time to monitored their plant with a bit of free time
they have.

The major purchases for Plantie Hydro Grow product are student that need to
stay at their house during this pandemic season. By having this product, it will
help them to build a new hobby and also therapy for their stress with all the
online classes and test. This product is suitable to be sold at supermarket, plant
nursery and company.

When we sell our product either online or offline, they can purchase our product
easily. For offline outlets, such as purchasing directly from our store or the
 seller, they can easily go to electronic stores or plant nursery to buy it. For the
customers that have difficulties to purchase it through our retailers they can
purchase Plantie Hydro Grow through online at my company website, Shopee,
and also Lazada.

4.2. Market Size and Trends

Table 4.1: Total Market Size

LOCATION DEMAND PRICE(RM)
KEDAH 1048 x RM 200 209,600
25 x RM 205 5,125
425 x RM210 89,250
230 x RM 215 49,450
14 x RM220 3,080
180 x RM 230 41,400
500 x RM250 125,000
JOHOR 122 x RM 210 14,640
466 x RM 215 100,190
303 x RM 220 66,660
246 x RM 225 55,350
1350 x RM 230 310,500
2000 x RM 245 490,000
KELANTAN 195 x RM 210 40,950
403 x RM 215 86,645
1096 x RM 220 241,120
600 x RM 230 138,000
1250 x RM 245 306,250
SELANGOR 10 x RM210 2,100
60 x RM 215 12,900
610 x RM220 134,200
375 x RM 225 84,375
1125 x RM 230 258,750
3300 x RM 240 792,000
1800 x RM260 468,000
PERAK 300 x RM 210 63,000
80 x RM 215 17,200
 825 x RM 220 181,500
575 x RM 225 129,375
1375 x RM 230 316,250
600 x RM 235 141,000
1350 x RM 240 324,000
TOTAL MARKET SIZE 5,308,840

The table above illustrates the total market size from all five states in a month. The
demand for the Plantie Hydro Growth is expected to increase within three years due to
pandemic covid-19 as there a home curfew orders and the total lockdown that prevent
people to leave their house without a strong reason. So, there will be more people buy
the Plantie Hydro Grow as they build new hobby which is indoor gardening or as a
stress releaser. As can be seen, the overall size of the current market is 22,838 units
per month. Therefore, by the end of this year, the number will be around 301,452
units. In the next 2 years, the market volume is expected to increase as Plantie Hydro
Grow market share is also expected to increase by 12% and 15% respectively
annually.

The main factor influencing the market growth of Plantie Hydro Grow may come
from the indoor gardener that need to have hydroponic device that offer an advance
technology that reduced their amount of time and work to managing the plant.
Furthermore, Plantie Hydro Grow introduces with the bluetooth system and panel to
control the amount of light given to the plant. This technology driven product will
attract customer as they may help them to monitor their plant just by using their phone
which provide then a better solution to manage their plant.

There are several major factors affecting the market growth. Firstly, is government.
Government holds much sway over the free market. The fiscal and monetary policies
that governments and their central banks put in place have a profound effect on the
financial marketplace. Second is economic factors which is an essential part of all
business analysis. The factors that is considered when a company makes financial
decisions are connected to money, good, and services. The local and global economy
will be determining factors in details associated with the operation of a company, such
as the value of its assets, consumer demand and even taxes. Next is population shift,
 the impact of the pandemic covid-19 cause the population size on market demand to
increase as a result of a lot of people need to stay at home that make them want to
build a new hobby which is indoor gardening.

4.3. Competition and Competitive Edges

4.3.1

Competitors Strengths Weaknesses

Aero Garden - High quality - No light control

- Save time and - Limited seed pod

energy

Koppert Cress - Offer a freshness - Plant in a large

and intensity of taste place
and aroma
- Not easy to shop
- operate in an
energy-efficient
manner
Click and Grow - Provide healthy soil - Expensive
technology
- Does not have a
- Easy to use backup power
source

4.3.2 Gardening is high on the list of activities that urban residents do in their spare time
during this pandemic covid-19 outbreak. Lack of room and time are likely two of the
main reasons why indoor gardening, isn't extremely popular. Indoor gardening is now
a practical pastime and activity for city people thanks to technological advancements,
and space and time are no longer be a problem. However, these products have their
own weaknesses. The Aero Garden has no light control panel and limited seed pod
 which make all sprout received the same amount of light which some of the plants
supposed to have minimum or maximum number of light. The Sprout's grow light
hood contains 60 LED bulbs giving your plants the full spectrum of sunlight they
need to grow, and grow quickly which make the user have limited choice to plant the
crop. So it is not suitable for buyer that want to plant different type of crop as they
have limited seed pod and non-adjustable control of light. The price range is between
RM400 to RM2,500. For Koppert Cress, the price is on request. The crop is plant in a
large greenhouse dedicated to growing high quality microgreens and specialties for
restaurants and specialty distributors. So it is difficult for people to plant the same
type of crop which need the same suitable place as Koppert Cress. It is also difficult
to purchase as this crop is been sold at only several places. For the Click and Grow,
the price range is around RM400 to RM9,600. It is not suitable for buyers who have
low budget as they may not afford for this expensive hydroponic devices It also does
not have a backup power source which can be a big problem if there was an electrical
failure. Especially if the failure continues for a day long. The plants could not get
enough nutrients for the day that could a disease to the crop. To compare with my
company’s product, the product is at benefit because it has a charging port and save
space. Plantie Hydro Grow also have price range around RM 200 to RM 260 which is
much cheaper than other hydroponic devices. Hence the characteristic satisfies the
target customers’ need. It also can be buy at online platform, supermarket and plant
nursery.

4.3.3. This product will help the target customers to have excellent experience of indoor
gardening. The product should be easy to use for observing the crop. The advantage
of this new innovation is the price is cheap. It will also reduce customer’s energy and
time to monitor the crop as it is installed with bluetooth program that connect with
customer phone. It also has charging port so a power bank or another power source
can be added in case there is an electrical failure. The price also affordable with
advance technology added such light control panel and bluetooth system. The product
comes in small size with more seed pod which suitable for the student and apartment
resident that have little space for gardening during this pandemic outbreak. The
product is safe to use for the target consumers because it considers all the safety
aspects need for customers. As example, the bluetooth program is added to avoid
 customer have too much contact with the devices that have electricity flow and water
which can cause of electric shock.
4.3.4 Every product or service will have their own advantages and disadvantages, the same
goes to these competitors. The advantage of Aero Garden is that they has a high
quality product. Save time and energy as the automated timer makes sure the lights go
on and off at exactly the right time. The product also have a germination guarantee
and will get a new seed pod if the customers have problem with the seed pod. The
disadvantage is no light control panel and limited seed pod. So, it’s not suitable for
the target customers because they need the hydroponic devices that can control the
amount of light the seed need and more space for the seed pod. For the Koppert Cress,
it’s offer a freshness and intensity of taste and aroma of the seed and operate in an
energy-efficient manner. However, the seed was plant in a large place and not easy to
shop. For apartment resident, student, and a busy worker, they usually do not have
time to survey for this product. Also mainly the customer that want to highlight the
intensity of taste and aroma were chef or from the restaurant. The advantage of Click
and Grow is the device provide healthy soil technology and easy to use for the
beginner gardener. The disadvantage of the product is, it expensive which is not
suitable for buyers who have low budget as they may not afford for this expensive
product. It also does not have a backup power source when there is no electricity. So
this product does not meet the customer interest. As for my company’s product which
is Plantie Hydro Grow, the advantage for this new innovation is the price is cheaper
compared to the competitors. The product also was installed with the bluetooth
program that connected with the phone that allow the user to have the data using
different devices to monitor the crop. This also will reduce the risk of getting electric
shock as customer can just monitored the crop through their devices. Plantie Hydro
Grow is a high quality product as it has display panel and various function buttons to
adjust the needs of the crop such the amount of light crop received. The disadvantage
of the product is it a high maintenance. Hydroponic gardening system uses water and
plant nutrients which eventually lead to the algae growth when exposed to the light
that will attract fungus gnats, and fungus gnats will damage the roots of the plants.
Still, it will be very helpful to those target customers as they can monitor the crop
from their devices.
4.4. Estimated Market Share and Sales

Product/Service Market Share and Sales

Year
2021 2022 2023
Market Share (%) 10% 12% 15%
Total Sale (unit) 301,452 337,626 388,270
Total Sales (RM) 7,007,668.80 7,848,589.06 9,025,877.42

4.5 Marketing Strategy

4.5.1 Overall marketing strategy.

In order to increase the demands in the market and attract the attentions from
customer, our product is designed with advanced technology that are different
from other hydroponic devices to ensure the customers purchase our product.
My company also considered the channel and medium to sell our hydroponic
devices which can ease the customers to purchase it. For busy workers, they
can purchase it through our website at gardeneasy.com. Meanwhile, the
students and apartment resident can purchase at our retailers

4.5.2 Pricing.
Plantie Hydro Grow is able to have better market shares as the company adopt
effective pricing strategies. This is because the price is important factor for the
customers in making purchase decision to choose a good quality product. This
product was sold at a very affordable price which is RM210 compared to the
other products. My company also offers a discount and promoting price
several times in a year especially on the celebration day and the end of the
year.

4.5.3 Sale tactic.

A sales tactic is any action you take to put your sales strategy into action. It is
how you deliver your message to consumers. For example, find prospects who
want the things we have to sell. The best way to navigate through water is to
go with the current instead of swimming against it. To be certain that our
 clients need the items we are selling, we pre-qualify them before actively
market to them.

4.5.4 Service and warranty policy.

For some reasons our product may be broken, so we guaranteeing them a year
of warranty to avoid customers’ dissatisfaction. This means that if our product
cannot be used or have problems, they can get a new one by showing our
retailers or our company the warranty form under terms and conditions. So, we
can ensure that our customers can use the Plantie Hydro Grow with ease.

4.5.5 Advertising and promotion.

Plantie Hydro Grow has used several mediums to inform and attract our target
audiences about the product specialty and quality to increase our sales. The
product had been promoted through television and media social (WhatsApp,
Instagram, and Facebook page) actively in every month. This is because most
of our customers usually tend to purchase something that has been promoted at
these mediums as they only can stay home during the pandemic covid-19. The
advertisements can help to build a distinctive place in the minds of our
customers about the functions and advantages of the product.

4.5.6 Distribution.
One of the channels that the customers can purchase it is through our retailers.
Our retailers are from electronics stores and Giant. They can also purchase
Plantie Hydro Grow through online at my company website (gardeneasy.com),
Shopee, and Lazada. After making the choice, they can proceed for the
payment through online banking and once the payment had been done, the
company will notify it and post out the item. So, the customers can just order
product from home and wait for it.
APPENDICES
MARKET SIZE
KEDAH
Location: ALOR SETAR
TYPE CONSUMPTION TOTAL (RM)
Hypemarket 20 x 40 units x RM200 160,000
Supermarket 5 x 35 units x RM210 36,750
Retailers 3 x 30 units x RM230 20,700
TOTAL 217,450

Location: KULIM
TYPE CONSUMPTION TOTAL (RM)
Hypemarket 6 x 40 units x RM200 48,000
Supermarket 5 x 35 units x RM210 36,750
Retailers 3 x 30 units x RM230 20,700
TOTAL 105,450

Location: SUNGAI PETANI

TYPE CONSUMPTION TOTAL (RM)
Hypemarket 5 x 15 units x RM210 15,750
Supermarket 7 x 2 units x RM220 3,080
Retailers 20 x 25 units x RM250 125,000
TOTAL 143,830

Location: GURUN
TYPE CONSUMPTION TOTAL (RM)
Hypemarket 2 x 3 units x RM200 1,200
Supermarket 3 x 5 units x RM205 3,075
Retailers 10 x 15 units x RM215 32,250
TOTAL 36,525
Location: BALING
TYPE CONSUMPTION TOTAL (RM)
Hypemarket 1 x 2 units x RM200 400
Supermarket 2 x 5 units x 205 2,050
Retailers 8 x 10 units x RM215 17,200
TOTAL 19,650

TOTAL MARKET SIZE (KEDAH): 217,450 + 105,450 + 143,830 + 36,525 + 19,650

= RM 522, 905

JOHOR
Location: MUAR
TYPE CONSUMPTION TOTAL (RM)
Hypemarket 6 x 12 units x RM210 15,120
Supermarket 9 x 15 units x RM220 29,700
Retailers 15 x 20 units x RM230 69,000
TOTAL 113,820

Location: JOHOR BHARU

TYPE CONSUMPTION TOTAL (RM)
Hypermarket 12 x 20 units x RM215 51,600
Supermarket 20 x 30 units x RM230 138,000
Retailers 40 x 50 units x RM245 490,000
TOTAL 679,600
 Location: PASIR GUDANG
TYPE CONSUMPTION TOTAL (RM)
Hypemarket 8 x 10 units x RM215 17,200
Supermarket 10 x 15 units x RM225 33,750
Retailers 15 x 20 units x RM230 69,000
TOTAL 119,950

Location: BATU PAHAT

TYPE CONSUMPTION TOTAL (RM)
Hypemarket 5 x 10 units x RM210 10,500
Supermarket 8 x 12 units x RM215 20,640
Retailers 12 x 14 units x RM220 36,960
TOTAL 68,100

Location: KLUANG
TYPE CONSUMPTION TOTAL (RM)
Hypemarket 5 x 10 units x RM215 10,750
Supermarket 8 x 12 units x RM225 21,600
Retailers 10 x 15 units x RM230 34,500
TOTAL 66,850

TOTAL MARKET SHARE (JOHOR)= 51,850 + 679,600 + 119,950 + 68,100 +

66,850
= RM 1,048,320
KELANTAN
Location: KOTA BHARU
TYPE CONSUMPTION TOTAL (RM)
Hypemarket 10 x 30 units x RM220 66,000
Supermarket 15 x 40 units x RM230 138,000
Retailers 25 x 50 units x RM245 306,250
TOTAL 510,250

Location: PASIR PUTIH

TYPE CONSUMPTION TOTAL (RM)
Hypemarket 2 x 10 units x RM210 4,200
Supermarket 5 x 15 units x RM215 16,125
Retailers 7 x 18 units x RM220 27,720
TOTAL 48,045

Location: BACHOK
TYPE CONSUMPTION TOTAL (RM)
Hypemarket 3 x 5 units x RM210 3,150
Supermarket 4 x 7 units x RM215 6,020
Retailers 6 x 10 units x RM220 13,200
TOTAL 22,370

Location: GUA MUSANG

TYPE CONSUMPTION TOTAL (RM)
Hypemarket 10 x 15 units x RM210 31,500
Supermarket 12 x 20 units x RM215 51, 600
Retailers 18 x 25 units x RM220 99,000
TOTAL 182,100
Location: TUMPAT
TYPE CONSUMPTION TOTAL (RM)
Hypemarket 2 x 5 units x RM210 2,100
Supermarket 6 x 10 units x RM215 12,900
Retailers 10 x 16 units x RM220 35,200
TOTAL 50,200

TOTAL MARKET SHARE (KELANTAN)

= 510,250 + 48,045 + 22,370 + 182,100 + 50,200
= RM 812, 965

SELANGOR
Location: KUALA SELANGOR
TYPE CONSUMPTION TOTAL (RM)
Hypemarket 15 x 25 units x RM225 84,375
Supermarket 20 x 45 units x RM240 216,000
Retailers 30 x 60 units x RM260 468,000
TOTAL 768,375

Location: HULU SELANGOR

TYPE CONSUMPTION TOTAL (RM)
Hypemarket 10 x 15 units x RM220 33,000
Supermarket 15 x 25 units x RM230 86,250
Retailers 20 x 40 units x RM240 192,000
TOTAL 311,250
Location: GOMBAK
TYPE CONSUMPTION TOTAL (RM)
Hypemarket 10 x15 units x RM220 33,000
Supermarket 15 x 25 units x RM230 86,250
Retailers 20 x 40 units x RM240 192,000
TOTAL 311,250

Location: PETALING
TYPE CONSUMPTION TOTAL (RM)
Hypemarket 2 x 5 units x RM210 2,100
Supermarket 6 x 10 units x RM215 12,900
Retailers 10 x 16 units x RM220 35,200
TOTAL 50,200

Location: KLANG
TYPE CONSUMPTION TOTAL (RM)
Hypemarket 10 x15 units x RM220 33,000
Supermarket 15 x 25 units x RM230 86,250
Retailers 20 x 40 units x RM240 192,000
TOTAL 311,250

TOTAL MARKET SHARE (SELANGOR)

= 768,375+ 311,250 + 311,250 + 50,200 + 311,250
=RM 1,752,325
PERAK
Location: IPOH
TYPE CONSUMPTION TOTAL (RM)
Hypemarket 8x10 units x RM215 17,200
Supermarket 15 x 25 units x RM225 84,375
Retailers 20 x 45 units x RM240 216,000
TOTAL 317,575

Location: HULU PERAK

TYPE CONSUMPTION TOTAL (RM)
Hypemarket 8 x10 units x RM210 16,800
Supermarket 15 x 25 units x RM220 82,500
Retailers 25 x 45 units x RM230 258,750
TOTAL 358, 050

Location: KUALA KANGSAR

TYPE CONSUMPTION TOTAL (RM)
Hypemarket 10 x15 units x RM210 31,500
Supermarket 15 x 25 units x RM220 82,500
Retailers 20 x 30 units x RM235 141,000
TOTAL 255,000

Location: BAGAN DATUK

TYPE CONSUMPTION TOTAL (RM)
Hypemarket 5x10 units x RM210 10,500
Supermarket 10 x 20 units x RM225 45,000
Retailers 15 x 30 units x RM240 108,000
TOTAL 163, 500
 Location: PERAK TENGAH
TYPE CONSUMPTION TOTAL (RM)
Hypemarket 2 x10 units x RM210 4,200
Supermarket 5 x 15 units x RM220 16,500
Retailers 10 x 25 units x RM230 57,500
TOTAL 78,200

TOTAL MARKET SHARE (PERAK)

= 317,575 + 358, 050 + 255,000 + 163, 500 + 78,200
= RM 1,172,325

GRAND TOTAL = KEDAH + JOHOR + KELANTAN + SELANGOR +

PERAK
MARKET SHARE =522, 905 + 1,048,320 + 812, 965 + 1,752.325 + 1,172,325
= RM 5,308,840

MARKET SHARE
Before enter market
COMPETITORS PERCENTAGE (%) RM
AERO GARDEN 50% 2,654,420
KOPPERT CRESS 30% 1,592,652
CLICK AND GROW 20% 1,061,768
TOTAL 100% 5,308,840

After enter market

COMPETITORS PERCENTAGE (%) RM
AERO GARDEN 50% 2,654,420
KOPPERT CRESS 27% 1,433,386.80
CLICK AND GROW 13% 690,149.20
PLANTIE HYDRO GRWO0 10% 530,884
TOTAL 100% 5,308,840

Expected sales = RM 530,884

SALE FORECAST

Month Sales Collection (RM)

January 530,884
February 530,884
Mac 530,884
April 530,884
May 530,884
Jun 530,884
July 530,884
Aug 530,884
September 530,884
October 530,884
November 530,884
December 530,884
Year 1(10%) 7,007,668.80
Year 2(12%) 7,848,589.06
Year 3(15%) 9,025,877.42