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QUESTION/ TASK 2 (30%):

OBJECTIVE:

The objectives of this assignment are to develop the learners’ ability to:

a) review both the internal and external business environments


b) suggest appropriate marketing strategy for business sustainability, and
c) write an effective marketing plan

REQUIREMENT:
Please read the following article:
While many businesses are facing challenges brought on by the pandemic, parcel stores
and courier agents in Penang are seeing increased demand for their services.

A parcel store employee, who wanted to be known only as Ashraf, 30, said the number of
parcel drop-offs they received had increased.

“I think during this period, people do not want to move around much so they are turning to
couriers and shipping agents. They are opting to drop off their parcels and have agents
handled them. Our store is an agent for six different courier companies. We collect
customers’ orders and parcels here at the store. Then we group and pile them up for the
different courier companies to pick them up. This way, business owners will not have to
visit or spend time lining up at courier offices to drop off their parcels to be shipped,” he
said.

Ashraf noted that while most businesses opted to use courier services for interstate
shipping, more and more were using courier services for shipments even within the state
too.

“Some businesses prefer to send the items themselves if their customers’ orders are in the
same state but due to the pandemic, many are using courier agents to help manage their
shipments. Take a clothing shop in town, for example. The owner may receive an order
from someone in Batu Ferringhi, which is not far. However, some will opt for courier
service as they do not want to travel to the customer’s home or the courier office during
this time. So, they drop their parcels off with courier agents. We round up the items and
get them ready for the courier company to pick up.”

Another parcel store employee, Elain Chong, 27, who is a customer service agent, said
during the course of the pandemic so far, they had maintained the number of orders they
received for shipping and courier services.

“Our company handles the shipping between Malaysia and countries such as China and
South Korea. Although the pandemic has somewhat impacted the shipping time frame, the
number of orders we take on daily has remained almost the same. There is no drop

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because there is still demand for shipping and courier services, especially during the
pandemic,” she said.

(Source: Rising demand for courier services during pandemic. URL:


https://www.thestar.com.my/metro/metro-news/2020/11/26/rising-demand-for-courier-services-during-
pandemic. Date of accessed: 03/12/2020).

Task 2:

Assume that you have a plan to run a courier service company, prepare a marketing plan as
a guideline for you to embark on the business.

The marketing plan covers the followings:

1.0 Introduction
2.0 Situational Analysis
2.1 PEST Analysis (Political, Economic, Social, Technological factors)
2.2 SWOT Analysis
3.0 Proposed Marketing Mix
3.1 Product
3.2 Price
3.3 Place
3.4 Promotion
4.0 Proposed Targeted Consumer and Markets
4.1 Segmentation and Targeting
4.2 Positioning
5.0 Proposed New Marketing Objectives
6.0 Conclusion
References

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ANSWER 2 :

TABLE OF CONTENT
No Item Pages

1.0 Introduction.

2.0 Situational Analysis

2.1 PEST Analysis (Political, Economic, Social, Technological factors)


2.2 SWOT Analysis
3.0 Proposed Marketing Mix - (Product, Price, Place & Promotion)

4.0 Proposed Targeted Consumer and Markets


4.1 Segmentation and Targeting
4.2 Positioning

5.0 Proposed New Marketing Objectives


6.0 Conclusion
7.0 References

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1.0 Introduction.

Starting from the late 1990s Malaysia is looking forward to be an innovation-led economy. The
Ministry of Science Technology and Innovation [1] reported that Malaysia was ranked at 24th in
the Innovation Competitiveness and also ranked at 26th in the Global Competitiveness Index for
the year 2010-2011. One of the main contributions of this achievement was rooted from the
service sector. Postal and courier service is part of the service sector that continues to develop.
The global mail and package delivery was estimated to reach USD500 billion in 2008 [2] and is
expected to keep increasing. The recent launch of Economic Transformation Program (ETP) by
the government of Malaysia is expected to have more positive impact on the sector. The courier
market could reach RM4 billion (about USD 1.3 billion) by the year 2020. However, this
industry faces challenges as a result of globalization. Although, the Malaysia courier market has
grown at 7 percent annually in average, this industry has numerous challenges ahead in terms of
low profit margin, access to capital, technology adoption, and quality. Generally, postal and
courier services are related to delivery of parcels, packages, documents, letters, and printed
materials. The scope of postal and courier services is defined in Table 1. Basically, the postal
transportation process consists of mail collection, input sorting, organize the movement of mail
(global area transportation), output sorting, and distribute mail. The complexity of the process,
therefore need to be assisted by ICT to ensure that the correct mail can be received by the
customer on time. In the past, the postal industry used to involve physical transportation of
physical communication, like package and mail delivery. However, the industry has evolved to
include traditional post, courier services, freight services and e-services in recent years.
Emerging technology based on the convergence of telecommunications, broadcasting and
publishing has and will continue to change the landscape of physical communications globally.
Therefore, postal organizations nowadays, regardless of their sizes face with the challenges
dealing with the new technologies; with operating in the same way as private corporations,
understanding what products are profitable and which are not, and dealing with almost constant
change. To survive in today’s world, postal organizations need to change through deregulation to
become more competitive, market-oriented and customer-driven. In this environment, price is no
longer the only determinant of the postal industry. Speed and quality (or responsiveness) is the
next source of competitive advantage especially in the postal industry.

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Table 1: Definitions for Postal and Courier Services
Postal Service
Postal services related to letters Services consisting of pick-up, transport and
delivery services of letters, newspapers, journals,
periodicals, brochures, leaflets and similar printed
matters, whether for domestic or foreign
destinations, as rendered by the national postal
administration
Postal services related to parcels Services consisting of pick-up, transport and
delivery services of parcels and packages, whether
for domestic or foreign destinations, as rendered by
the national postal administration.
Post office counter services Services rendered at post office counters, e.g. sales
of postage stamps, handling of certified or registered
letters and packets, and other post office counter
services.
Other postal services Mailbox rental services, "poste restante" services,
and public postal services not elsewhere classified.
Courier Service
Multi modal courier services Services consisting of pick-up, transport and
delivery services, whether for domestic or foreign
destinations of letters, parcels and packages,
rendered by courier and using one or more modes of
transport, other than by the national postal
administration. These services can be provided by
using either self-owned or public transport media.
Other courier services Other courier services for goods, not elsewhere
classified, e.g./trucking or transfer services without
storage, for freight.

Source: World Trade Organization

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2.0 Situational Analysis
2.1 PESTLE Analysis

A PESTLE analysis is a framework or tool used by marketers to analyze and monitor the
macro-environmental (external marketing environment) factors that have an impact on an
organization.
The PESTLE factors combined with external Micro-environmental factors can be
classified as opportunities and threats in a SWOT analysis.
There are six external factors that influence life of organizations: Political, Economic,
Social, Technological, Environmental and Legal.

Political Factors

➢ Political factors include government regulations and legal issues and define both
formal and informal rules under which the firm must operate. Some examples
include:
✓ Tax policy
✓ Employment laws
✓ Environmental regulations
✓ Trade restrictions and tariffs
✓ Political stability
Economic Factors

➢ Economic factors affect the purchasing power of potential customers and the
firm’s cost of capital. The following are examples of factors in the Marco
economy:
✓ Economic growth
✓ Interest rates
✓ Exchange rates
✓ Inflation rate

Social Factors

➢ Social factors include the demographic and cultural aspects of the external marco-
environment. These factors affect customer needs and the size of potential markets.
Some social factors include:
✓ Health consciousness
✓ Population growth rate
✓ Age distribution
✓ Career attitudes
✓ Emphasis on safety

Technological Factors

➢ Technological factors can lower barriers to entry, reduce minimum efficient


production levels and influence outsourcing decisions. Some technological factors
include:
✓ R & D activity
✓ Automation
✓ Technology incentives
✓ Rate of technological change

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Environmental Factors

➢ Environmental factors include infrastructure, cyclical weather, disposal of


materials, energy availability and cost and the ecological consequences of
production processes. Some example include:
✓ Natural disasters
✓ Global warming
✓ Maturity of a country’s infrastructure
✓ Financial penalties

Legal Factors

➢ Legal factor is clear that companies need to know what is and what is not legal in
order to trade successfully. Some example includes:
✓ Health and safety
✓ Equal opportunities
✓ Advertising standards
✓ Consumers rights and laws
✓ Product labelling and product safety.
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Moreover, using the PESTLE analysis is to ensure for identified the important
implications for a company and that nothing key has been overlooked.

The below PESTLE analysis focuses on The Postal and Courier Industry in Malaysia.

Political ➢ Greater investment in certification


and security solutions.
Economic ➢ Increasing Cost.
Social ➢ Higher Consumption of postal and
courier services as a result of growing
wealth.
Technological ➢ Automated Machine for fast speedy
processing.
Environmental ➢ Carbon footprint
➢ Social Responsibility Score
Legal ➢ Postal Service Act 2012

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The Malaysian political system can be rated as being very efficient and it is apparent that
the presence of political stability contributes to the increase in business stability as well.
What can be stated here is that it is this sort of political stability which is generally
required to make businesses like the postal and courier industry to prosper. This industry
is likely to benefit a great deal and this is because they can carry out their business
activities and they do not have to have much worry in relation to issues to do with political
instability or other business disruptions which can have a bad impact on their business
performance.

Economic Factors

The economy of Malaysia is very stable and it is noted here that the economic policies
implemented by the government have brought success and prosperity to Malaysia. With
the presence of good economic conditions, it is important in the postal and courier
industry because of the high overhead and fixed cost of its network of hubs and stations
for sorting, pick-up and delivery, information and communications technology systems to
provide tracking, fleet of vehicles for transportation, and a large team of workers to
undertake pick-up and delivery. As such, the ability to generate sufficient volume of work
to defray fixed costs across a large number of items is important to reduce the overall unit
cost is important for the business to stay competitive and obtain higher profit margins.

Social Factors

The increasing population will translate into more delivery points particularly in
residential buildings. More investment will be required to innovatively expand the Post
Office networks that meet the needs of the consumers.

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Technological Factors
The postal and courier industry is increasingly dependent on technology to provide
tracking of consignments, sorting of consignments and customer management system. The
prudent use of technology, especially in information and communications technology
provides a competitive edge to operators as they are in a better position to meet customer’s
needs as well as to constantly improve pick-up and delivery times.

Environmental Factors
The postal and courier industry in Malaysia need to understand and institute practical
measures to reduce carbon footprint of their respective organisations. Green technologies
and products such as electric powered, natural gas and hybrid vehicle, smart buildings and
green products recycling mail are becoming increasingly important in the future of postal
and courier industry.

Legal Factors
Courier License is under the Postal Services Act 2012, it is mandatory for Courier Express
and Parcel services companies to obtain a courier license issued by the Malaysian
Communications and Multimedia Commission (MCMC).

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Why SWOT Analysis is Needed
The SWOT analysis is your key to setting up a stable organization. The S stands for
strength, the W stands for Weaknesses, the O stands for Opportunities while the T stands
for threats.
An analysis of such kind is of great use to your business. It helps you to understand your
aims, goals, and ambitions. At the same time, you get a clear image of the pros and cons
related to your business. Based on that image, you can capitalize on advantages or avoid
the disadvantages.
If you are an executive at a courier services company, then the SWOT analysis is
mandatory for your company’s success. However, keep in mind that the SWOT analysis
for a delivery service company is often quite different from that of other companies. Not
everything can be brushed with the same paint.

SWOT Analysis for Competitive Edge


Delivery service companies can be quite similar and quite different at the same time. They
are similar in the sense that they have a homogeneous working mechanism. Each company
is based on the same concept of transferring items from one place to the other. Each
company strives to provide the fastest delivery possible. Each company puts emphasis on
keeping the items to be delivered as secure as possible. From this description, you may
think that there is barely any difference between the various delivery service companies in
the world.

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However, that perception of yours will change as soon as you conduct a thorough SWOT
analysis of each individual company. The results of your analysis will clearly highlight the
unique cards that each company brings to the table.
The companies may have the same missions and visions. It’s how they plan to carry out
those missions and visions that make them unique. The path that they choose will
determine the limitations of their strengths, the vulnerability of their weaknesses, the
frequency of their opportunities and the danger of their threats.
SWOT Exclusives for Delivery Service
As an executive of a delivery service company, it is your duty to pay the utmost
importance to SWOT analysis of your company. This is one of the simplest and most
basic ways of setting your company apart from the rest. If you want to edge ahead of
others in the competition, then start employing your resources into SWOT analysis.
This begs the question, how will you be able to identify the strengths, weaknesses,
opportunities and threats? The following is a brief description to help you out.

1) Strengths
Delivery service companies have certain strengths that they can always take advantage of.
But first, your SWOT analyst needs to pinpoint these strengths.
The biggest among them is customer loyalty. A person does not require the services of a
delivery company every day. Do you order a pizza every night? Most probably not. You

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only order it when you friends come over for a game night. When you do order it,
however, you probably call up the same delivery guys who brought in your previous
pizza. When it comes to deliveries, customers don’t like to experiment or explore much.
Sticking with the same brand gives them a sense of assurance. As a result, as an executive
of a delivery company, you can be sure to almost always retain your customers unless you
make a major mistake.
Another huge strength of a delivery service company is that they are always available.
Most of the delivery service companies allow their customers to order products 24/7,
usually through their website. This means that the customers can reach out to your
delivery service company at any time and from anywhere. Unlike other companies, which
are shut down for a certain time of the day or the week or the month, your company’s
business will roll on continuously and the influx of orders should not die down.
2) Weaknesses
Every delivery company has its own set of weaknesses. Make sure that your SWOT
analyst takes them into consideration.
The world has become technology based. Delivery service companies are trying their best
to adapt to new technology. Those who can’t adapt, end up lagging behind.
For instance, if your delivery service company does not have a proper IT department, then
your delivery service website is likely to crash from time to time. Every minute that is it
out of service you lose a huge amount of orders from your customers. Also, most delivery
services have their own smartphone apps now. If your delivery service doesn’t have one of
its own, then this will be a huge weakness for your company.

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Another area, where delivery service companies can often suffer a drawback, is research
and development. Once again, delivery services need to adapt and evolve constantly.
Without proper research and development, you cannot take your delivery company to the
next level. You will soon see your rivals outdo you in sales and revenue simply because
they reaped the rewards of having done thorough research on their internal system and
external services.

3) Opportunities
The opportunities that you are presented in a delivery service company are often due to
external factors. Acquisition synergies can be a potential game changer for delivery
service companies. Your SWOT analyst needs to pay as much attention as possible to this
particular topic.
Furthermore, opportunities will also come your way in the form of innovations. This is
kind of similar to the evolution factor that was mentioned above. Your ability to invent
and innovate will propel your delivery service company to new heights. Innovate products
and services are always in demand. Making these available to the customers gives you the
opportunity to out-muscle your opponents.
4) Threats
There is danger lurking in every corner for delivery service companies. It is imperative for
you SWOT analyst to anticipate these dangers and measure the damage they can cause.
Take, for example, a political unrest. Delivering goods from one part of the country to the
other when you have hundreds and thousands of people protesting and rioting in the
streets becomes a steep task. You even run the risk of endangering your life and

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jeopardizing the safety of the goods to be delivered. The last thing you need is an injured
delivery boy and tarnished goods

3.0 Proposed Marketing Mix Courier Service


Courier services:
With the increasing pressure of work and decreasing efficiency, the Department of
Posts failed in managing the mailing services which made it essential that an
alternative system emerges to cater to the changing needs of trade as well as the
domestic sectors. The courier services thus came into existence. A number of formal
and informal organizations started offering the services at regional, national and
international levels. The different categories of users have no option but to depend on
the private sector who, of course offer quality but of expensive nature. It is against this
background that we talk about the marketing of courier services.
Courier marketing a conceptual framework: Marketing the courier services focuses
our attention on the application of modern marketing principles in the business
process. Courier marketing is a managerial process that makes possible a planned
development of services. It is an organized effort to make the services commercially
viable to the courier organizations vis-à-vis affordable to the users who make use of

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their multi-dimensional services. The marketing concept makes it essential that the
organizations formulate a sound service mix in which we find a fair synchronization
of different types of services. The courier marketing practices thus make possible
formulation of different sub mixes of the marketing mix, such as the product mix, the
promotion mix, the price mix, the place mix and the people mix. In addition, the
development of sound marketing inputs becomes a focal point which makes the ways
for the development of quality outputs. Conceptualizing courier marketing makes the
ways for satisfying the users which happens to be the most important thing for
increasing the market share and the level of profits. The courier organizations thus can
maintain commercial viability. By formulating and innovating the marketing mix, the
courier organizations can be successful in developing and perceiving a new perception
of quality which makes possible qualitative improvements in the process. Generation
of profits and satisfaction to the users are the two important dimensions which pave
avenues for multi-dimensional quantitative-cum-qualitative improvements in the
process. The organizations by making the services competitive can be successful in
excelling competition. Since the marketing focuses on professional excellence, the
courier organizations can also be successful in projecting a fair image. These facts
make it clear that the application of marketing principles is to benefit the courier
organizations in many ways. It is against this background that the leading courier
organizations are found practicing innovative marketing.
Marketing mix for courier organizations:
The courier organizations are required to formulate a sound marketing mix for
improving the quality of services. The courier services are required to be made
competitive and this makes it essential that the courier organizations conceptualize

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marketing in such a way that the processes of qualitative-cum-quantitative
transformation are activated in the face of emerging business conditions. It is against
this background that the marketing professionals are supposed to make creative
marketing decisions. This focuses our attention on the formulation of different sub
mixes. The courier marketing practices thus make possible formulation of different
sub mixes of the marketing mix, such as:  Product mix  Promotion mix  Price mix 
Place mix  People mix

3.1 Product mix: Mounting intensity of competition makes it essential that the courier
organizations formulate a sound product mix. By formulating a sound product mix,
they would be in a position to understand the changing needs and requirements of
different segments of users on prospects and the service profile would be made user-
friendly. Inclusion of innovative services in the service mix would enrich the service
profile and would also be instrumental in sensitizing the prospects. The stimulation of
demand makes it essential that the customer get the services which are not to be made
available by the Department of Posts. This draws our attention on the formulation of a
sound product mix for the courier organizations. The professionals are supposed to
work with the service motive. They need to make it sure that the promised services
reach to the users without making any distortion in the process.

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While formulating the product mix, they are required to make it sure that the service
portfolio includes both the high-profit-generating services as well as the low-profit-
generating services.
3.2. Promotion mix: In marketing, the promotional mix describes a blend of
promotional variables chosen by marketers to help a firm reach its goals. It has been
identified as a subset of the marketing mix. It is believed that there is an optimal way
of allocating budgets for the different elements within the promotional mix to achieve
best marketing results, and the challenge for marketers is to find the right mix of them.
Activities identified as elements of the promotional mix vary, but typically include the
following: Advertising is the paid presentation and promotion of ideas, goods, or
services by an identified sponsor in a mass medium. Examples include print ads,
radio, television, billboard, direct mail, brochures and catalogs, signs, in-store
displays, posters, mobile apps, motion pictures, web pages, banner ads, emails.
Personal selling is the process of helping and persuading one or more prospects to
purchase a good or service or to act on any idea through the use of an oral
presentation, often in a face-to-face manner or by telephone. Examples include sales
presentations, sales meetings, sales training and incentive programs for intermediary
salespeople, samples, and telemarketing.  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. Corporate
giveaway items, sometimes called swag, can be included within product samples and
distributed to participants at an event for promotional purposes.  Public relations or

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publicity is information about a firm's products and services carried by a third party in
an indirect way. This includes free publicity as well as paid efforts to stimulate
discussion and interest. It can be
accomplished by planting a significant news story indirectly in the media, or
presenting it favorably through press releases or corporate anniversary parties.
Examples include newspaper and magazine articles, TVs and radio presentations,
charitable contributions, speeches, issue advertising, seminars. Direct Marketing is a
channel-agnostic form of advertising that allows businesses and nonprofits to
communicate directly to the customer, with methods such as mobile messaging, email,
interactive consumer websites, online display ads, fliers, catalog distribution,
promotional letters, and outdoor advertising. Corporate image campaigns have been
considered as part of the promotional mix. Sponsorship of an event or contest or race
is a way to generate further positive publicity. Guerrilla marketing tactics are
unconventional ways to bring attention to an idea or product or service, such as by
using graffiti, sticker bombing, posting flyers, using flash mobs, doing viral marketing
campaigns, or other methods using the Internet in unexpected ways.Product placement
is paying a movie studio or television show to include a product or service
prominently in the show. Digital marketing is the marketing of products or services
using digital technologies, mainly on the Internet, but also including mobile phones,
display advertising, and any other digital medium.
3.3 Price mix: Price is the cost that the customer is willing to bear for the product and
the way it is made available to him. Price represents on a unit basis what the company
receives for the product which is being marketed. All other elements of the marketing
mix represent costs. Marketers need to be very careful about pricing objectives,

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methods to arrive at a price and the factors which influence the setting of a price. The
company must also take into account the necessity to give discounts and allowances in
some transactions. These requirements can influence the level of list price chosen. If
discounts and concessions have to be given in certain transactions, the list price should
have a negotiation margin built in it. Payment
periods and credit terms also affect the real price received in any transaction. These
kinds of decisions can affect the perceived value of a product. In comparison to other
elements of the marketing mix, the price can be changed easily. But an ill-considered
change in price can change customer perceptions about the value of the marketing
mix. In the absence of any objective knowledge about the quality of the product, the
customer builds a strong association between price and quality. If the price of a
product is reduced, customers may start regarding it as an inferior quality product. If a
company raises the price, customers may consider it a high-quality product, but there
is also the risk that customers may regard the price too high for the value that they are
getting from the product. Price change, though easy to make, should always be done
taking into consideration the effect the change will have on the attractiveness or
otherwise of the marketing mix.
3.4 Place mix: Place involves decisions concerning distribution channels to be used,
the location of outlets, methods of transportation and inventory levels to be held. The
product should be available in the right quantity, at the right time and place.
Distribution channels consist of independent intermediaries such as retailers,
wholesalers, and distributors through which goods pass on their way to customers.
These intermediaries provide cost-effective access to the marketplace. It will be
extremely costly and cumbersome if the manufacturer had to set the entire

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infrastructure needed to manage the transfer of goods to the customers. The
manufacturer has to manage and structure relationships with these intermediaries in
such a way that the interests of the manufacturer and intermediaries’ ore served.
Distribution channels perform three distinct functions. They transfer products from the
manufacturer to the customers, they pass information from the manufacturer to the
customers, and they retrieve payment from the customers to the manufacturer. It is
possible to segregate these three functions as alternate means of delivering products,
passing information and collecting money are developed. In internet marketing,
information is provided on the manufacturer’s website, the product is sent from the
manufacturer’s store to the customer through courier service, and payment is collected
by banks through credit cards. A company should have an open mind while designing
its distribution strategy. The three functions have to be performed but it is not essential
that all three functions are performed by one channel. Three separate channels con
perform a function each, depending on each channel’s efficiency and effectiveness in
carrying out the function.

1. People mix:
People are crucial in service delivery. The best food may not seem equally palatable if
the waitress is in a sour mood. A smile always helps. Intensive training for your
human resources on how to handle customers and how to deal with contingencies is

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crucial for your success. Modern marketing theories place people as the 5th P in the
marketing mix, joining the other 4 Ps namely: product, promotions, price, and place.
Without people, all these other Ps will not complete a successful marketing formula.
This aspect refers to those who are employed by the company to: design, develop, and
manufacture the products; do market research to establish demand and determine
customer needs; manage the supply chain to ensure timely delivery; provide support
services; and serve as touch points for customer interaction among others.  People
Who Make the Products: Aside from the management team, there are people down the
line who are responsible for coming up with the products and services of the company.
Companies should take time to hire people who have the competence and expertise in
the particular industry they are operating in. This is true for people in the entire
organization, from the managers down to the ordinary workers. Investing in high
caliber people will allow businesses to come up with the best products and services for
their target customers. Having these people represent the company will also give the
company a positive image in the eyes of the consumers. It goes without saying that
such positive image attracts sales.
 People Who Bring the Products to the Customers: These are the people who are
supposed to know what the customers want and what the best way is for these
customers to get what they want. Marketing efforts are focused on generating leads
and attracting prospects. When the prospects are ready to buy, these people make sure
that the products and services are accessible to them in the most convenient and
affordable manner. When these people fail in their responsibility, the company will
not be able to build a substantial customer base to keep their business profitable.

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 People Who Talk to the Customers: Companies no matter how big or small
require customer service to support their products and services. They should have the
right kind of people manning their customer touch points. For a lot of customers, this
could actually make or break a deal. Customers always want to be assured that they
can talk to people who are willing and able to help them in case they have problems or
concerns with the products they bought or the services they availed of. Companies
should ensure that they have customer-friendly people who are ready to serve their
customers’ needs. Customer service people can actually serve as a differentiating
factor versus other competitor companies. There are products that serve the same
purpose and are configured the same way. Customers, in these cases, look for brands
and companies that can offer them exceptional customer service. It pays, therefore, for
companies to invest in training their customer service personnel. This should
encompass both the technical as well as the personal aspects of the job. This means
that they should be knowledgeable about the specifications of their products and
services. At the same time, they should also be personable and have the genuine desire
to serve.

4.0 Proposed Targeted Consumer and Markets


4.1 Segmentation and
Targeting Segmentation

Grouping consumers by some criteria, such that those within a group will respond similarly to a
marketing action and those in a different group will respond differently.Potential segmentation
variables in courier company.

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Geographic segmentation:
A courier company should be situated at the place or should offer their services where
the customers are aware about the services and frequently use these services, big
towns, districts, cities and metros would be a perfect place to start a courier service.
But we basically target tier 1 and tier 2 cities where air frequency are better. To deliver
on time delivery to customer. Tier 1 cities-Kuala Lumpur, Johor Bharu,Penang
Targeting:
Differentiated marketing: - business enterprise
Segment 1 (only Document): - The courier companies mostly get a big deal in a
business enterprise, most of the organizations exchange their business letters,
Documents, office accessories D.D or some other monetary things through courier, so
the courier companies has a big opportunity to deal with these enterprises.
- Company billing, size of company which turnover are above 50 crore
- Mainly we focus on consultancy, IT and banking
- Our operations are domestic and international courier because most of this type of
company are sending their document in foreign offices also.
- We also focus on customer who wants single day delivery in domestic region.
Segment 2 (how frequently they used the courier):- like how they used the courier
service like daily basis, weekly or monthly.
Segment 3 (Third party courier):- tie up with like big e – commerce company in
Malaysia or across the world .Snap deal, flip kart and many more.
Our courier service provides standardized products and services - courier, express and
parcel (CEP) - both locally and globally depending on the country. Whether it is

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document or parcel, road or air, provides several different types of services that are
divided to four basic groups:
1. Same Day
An immediate pick-up of a shipment by a dedicated courier, with an emergency
delivery within the same day via a dedicated network.
2. Time Definite
Express delivery by a certain time on an overnight or next possible business day basis.
3. Day Definite
Reliable delivery within a certain number of days.

The report titled “Malaysia Logistics Market Outlook to 2023 – By Air Freight
(Cargo Throughput, Domestic and International Freight, Freight Cost, Flow Corridor),
By Sea Freight (International and Domestic, Throughput by Ports and Products, Flow
Corridor, Freight Cost), Land Freight (Domestic and International, Freight Revenue),
Contract Logistics; By Warehousing (Industrial / Retail, Container Freight / Inland
Container Depot and Cold Storage) and By Courier, Express and Parcel” provides a
comprehensive analysis of the logistics of the market of Malaysia. The report also
covers logistics infrastructure in the country, value chain analysis, overall market size
in terms of revenue; segmentation by service mix for logistics and warehousing
market, segmentation by mode of service, mode of freight, flow corridors, end-users,
third party logistics and integrated logistics for freight forwarding market;
segmentation by air and ground express, domestic and international shipments,
delivery period, market structure, region and offshore & on-shore shipments for
courier and parcel market; segmentation by delivery period for e-commerce logistics

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market, intracity and inter-city shipments; segmentation by service mix for the third-
party logistics market; segmentation by business model, geography, type of
warehouses, third party logistics & integrated logistics and end-users for warehousing
market; segmentation by cold storage & cold transport for cold chain market; industry
norms and regulations, trends and developments, issues and challenges, a matrix of
major companies, competitive scenario, company profiles and cross-comparison with
other logistics markets. The report concludes with market projection for future and
analyst recommendations highlighting the major opportunities and cautions for the
logistics market.

Malaysia Logistics and Warehousing Market Overview and Size: Malaysia


logistics and warehousing market displayed consistent growth during the period 2013
to 2018. The growing E-commerce sector and rising demand for cold chain, express
and third-party logistics (3PL) in the country were witnessed to drive the Malaysia
logistics market. In addition to this, the implementation of the Eleventh Malaysia Plan
(2016-2020) and Logistics and Trade Facilitation Masterplan (2015-2020) by the
government also indicate a positive outlook for the industry. The market has increased
owing to high domestic consumption and the efforts of the government to boost
infrastructure. The investments in infrastructure and technology have impacted
Malaysia logistics market positively.

Malaysia Freight Forwarding Market Overview and Size: The freight forwarding
market of Malaysia witnessed robust growth over the last five years. The key
contributive factors for the growing market included the rising demand for sea and

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land freight logistics across the country. In addition to this, the freight forwarding
market was bolstered by high demand for manufacturing and food and beverages
products. Growth in international trade have stimulated regional integration, removal
of trade barriers, coupled with the rise in containerization levels and expansion in key
external drivers of the industry such as economic, demographic and consumer drivers,
have led to growth in demand for transportation. The leading companies in this market
include DHL, Tiong Nam Logistics, TASCO Berhad, Kuehne + Nagel, CEVA
Logistics, CJ Logistics, DB Schenker, POS Logistics and several others.

Malaysia Warehousing Market Overview and Size: The warehousing market in


Malaysia displayed tremendous growth during the period 2013-2018. The growth in
the warehousing market of Malaysia was primarily due to expanding FMCG sector,
increase in imported goods, increasing government expenditure on improving
infrastructure and far-sighted government regulations. The rising industrialization also
augmented the demand for warehousing logistics in the country. The growth was
attributed to the end consumers that require fast, accurate and safe delivery of goods.
The demand for cold storage warehouses has picked up in the past few years.
Warehousing has become increasingly sophisticated with the provision of advanced IT
solutions for warehouse management, although non-IT problems such as traffic jams,
lack of ports and others hamper the delivery of goods. Presently, contemporary
warehouses function more than just a good storage facility.

Malaysia Courier and Parcel Market Overview and Size: Malaysia courier and
parcel market witnessed strong growth over the past five years. The key contributive

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factors for the growing market included the rising demand for perishable items that
require express delivery services. During the period 2013-2018, the country also
witnessed increasing Smartphone users, internet users and the lifestyle of people
which also contributed to the growth of the courier and parcel market of the country.
The leading companies in this market include POS Malaysia, GD Express, DHL,
FedEx, and others.
Malaysia E-Commerce Logistics Market Overview and Size: The E-commerce
logistics market of Malaysia significantly grew during the period 2013 to 2018. The
market displayed solid growth over the past five years. This was primarily due to the
rising number of online orders in Malaysia. Moreover, the cost of logistics services in
the E-commerce space of Malaysia also declined by the year 2018 owing to escalating
internet penetration in the country. A growing number of online app-based companies
were witnessed to expand into all the regions of Malaysia, particularly through a
franchise. Additionally, these online firms were observed spending in huge amount
towards bringing out major technological advancements within this segment. Express
logistics is a premium segment of the logistics industry as it majorly involves time-
sensitive shipments of goods via multi-modal transportation primarily through air and
road freight transport mediums.
Malaysia Contract Logistics Market Overview and Size: the 3PL market has
gained widespread importance over the years as more organizations globally are
outsourcing their logistics activities to 3PL service providers. Third-party logistics
market in Malaysia displayed a healthy growth during the period 2013 to 2018. The
market observed a growth in the outsourcing of logistics requirements which helps
companies to focus on their core area of business and reduces the additional cost of

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operations. The growth in the market also encouraged the emergence of several new
players.
Malaysia Cold Chain Market Overview and Size: Malaysia cold chain market was
observed to grow notably over the last five years. This is primarily due to rising
population leading to the corresponding increment in the demand for food and
beverages. The market demand, particularly for seafood and meat products in the
country, was also on the rise. Additionally, the majority of the cold chain revenue in
the country was observed to come from cold storage requirements.
Malaysia Logistics Market Future Outlook and Projections : Malaysia logistics
market is projected to grow consistently during the forecast period 2018-2023 owing
to the country’s plans to place itself as “The preferred gateway to Asia”. The key
growth drivers for the market include increasing online purchasing bolstering the e-
commerce market, increasing year on year investment by the government to improve
the state of infrastructure in the country such as road & rail networks, and expansion
of airports and seaports. It is also anticipated to encourage new players to enter the
market and existing players to expand their current market share. The growing
demand for perishable products in the country will consequently, augment the
requirement for fast delivery thereby having a positive impact on both the courier and
parcel and cold chain markets of Malaysia.

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4.2 Positioning
Determine what consumers currently think about your product: - we should firstly
understand what the customers think about our product or the services, because courier
industry is primarily a service industry, so the service should be frequent, delivery should
be adequate, and within a short period of time.
Decide what you want consumers to think about your product: - This can be done
through sending an effective message to the customers about our courier company so to
make a position about our product and services in the mind of customers. Through
meeting their expectation what they need from our courier service through express service,
insurance of parcel, convenient, reliable.
To position our courier company, we have to make a brand. And delivered what we
promise to customer to give, if we are delivering value to the customer it’s already
building image in consumer mind and its help to make a brand easily, after that we are
doing advertising through various medium of channel, and do sponsorship participate in
various business exhibitions, trade fair. Uniform of the delivery boy helps our courier
company to differentiate from other courier company. Arranged one-day corporate desk in
company, like IT, consultancy, and bank. Giving presentation in company to operation
level manager about our courier company.
Taglines like:-
“Sending your Parcel faster than air “ “we deliver , your smile “

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As the shift from brick-and-mortar outlets to online retail continues, the challenge of
managing last-mile logistics grows. Last-mile logistics is no longer just about
transporting products to buyers but about fulfilling customer demand and experience.
Customer behavior and expectations have changed over the last few years, challenging
the way courier providers operate and relate to their customers.
Creating long-lasting, engaging relationships with customers, and addressing their
nuanced demands, such as remote deliveries, return orders, failure to deliver due to
customers, and payment options, are some of the challenges that carriers in this sector
face. When addressed right, these challenges can help a carrier become a customer's
provider of choice in an already ultra-competitive industry.
Customer's delivery expectations have also changed over the years as Malaysia's
leading online retail platforms, such as Lazada, Shopee, and Alibaba, have included
transparency as part of the shopping experience. Traditional track-and-trace
technologies are no longer sufficient to meet industry standards, as customers are
demanding real-time last-mile visibility - from shipping fulfillment to location of
drivers, and until the estimated time of arrival. Courier providers are adopting more
smart technologies, such as GPS systems and postcode algorithms, which offer greater
visibility over their operations, thereby increasing the efficiency of their delivery
supply chain.
Service providers also need to find a balance and optimize resources, as existing
delivery and processing capacity are stretched; spikes in parcel volume are becoming
more frequent due to shorter intervals between sales seasons and holiday cycles.

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Carriers are, therefore, finding alternative methods such as outsourcing, automated
delivery options, and retail partnership to increase their delivery touchpoints.
Report Coverage
This research report reveals the market positioning of companies in the last-mile
logistic market using their Growth and Innovation scores as highlighted in the
research radar methodology. The document presents competitive profiles of each of
the companies on the research radar, based on their strengths and opportunities, and a
small discussion on their positioning.
The publisher analyzes hundreds of companies in the industry and benchmarks them
across 10 criteria on the research radar, where the leading companies in the industry
are then positioned. Industry leaders, predominantly in the Innovation index, are
recognized as best practice recipients.
• For more information about this report
visit https://www.researchandmarkets.com/r/1s3ez3

5.0 Proposed New Marketing Objectives

These challenges would certainly require the postal and courier services to be more
innovative. We argue that in the effort to become more innovative, would it also lead
to better performance? The investigation on effect of innovation is important because
the development of new service failure rate is very high (Su et al., 2007). In addition,
most of the researches in the past have examined the effect of innovation on the
operational and organizational performance in general but very little focus on the
customer responsiveness.

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Therefore, the purpose is to discuss the current innovation in the postal and courier
services in relation to the customer responsiveness. Finally, we propose a model to be
investigated in relation to this relationship.
Customer Responsiveness
This paper defines customer responsiveness as the extent of capability of a firm in
providing speedy services, variety of services, and willingness to help customers
within the service delivery system (Razalli, 2008). In other words, responsiveness is
the operational performance that measure capability of the service providers in terms
of time, quality and flexibility in relation to their customers. Prior studies have found
that customer responsiveness is substantially important in the logistic companies
especially the postal and courier services. For example, studies found that the level of
responsiveness (in terms of speed) is influenced by the service delivery [Sheu et al.,
2003; Jayaram et al., 2000). Specifically, the use of technology in the service delivery
has been found to influence responsiveness (Poria and Oppewal, 2003). A recent study
on responsiveness also found that service delivery influences responsiveness
(Kritchanchai, 2004). Besides that, Arias-Aranda (2003) discovered that service
delivery is significantly related to service flexibility. Other studies have shown that the
competence to innovate (Menor et al., 2002) and the firm’s new service development
process (Sundbo, 1997) could lead to a greater organizational performance. A study by
Chen and Tsou (2006) also supported that a firm’s decision to develop service
innovation for firm performance depends upon the innovation. Therefore, we conclude
that service innovation should lead to responsiveness.
Service Innovation and the Postal and Courier Companies

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Innovation is about people creating values and ideas to the customers. It has become a
driving force for a large number of organizations around the world. Even a small
innovation would result in a cumulative strength that is capable of creating the new
one (Kandampully, 2002). As marketplaces become ever more dynamic, there is a
widespread recognition of the increasing importance of innovation to organizations
and economies (Rowley et al., 2011; Oke, 2007). Innovation is about an
organization’s ability to provide the creative space and the resources to explore those
ideas knowing that new does not always mean successful. Taking risks is an integral
part of innovation and people can learn as much from what did not work as what turns
out to be successful.
Service innovation enables service firms to gain competitive advantage (Droege et al.,
2009). Innovation in postal and courier services is essential for their survival. Courier
services will continue to grow in line with the growth of online shopping or internet
business, and more home delivery, coupled with the increased infrastructure of
developing countries and rural areas. E-commerce will be a key driver in the growth
of postal and courier service with more and more people buying and selling through
the Internet. People and the postal articles and goods to be moved efficiently from one
place to another anywhere within the country as well as overseas. Thus, an integrated
development strategy for the postal and courier sector is timely as digital and physical
communications are likely to complement each other.
In addition, based on Hertog and Bilderbeek [21] service innovation model, Qiang,
Chongfeng, Zhiyong and Guoyun (2010) has suggested four types of innovation that
can be applied in the logistic service such as courier and postal services (as shown in
Table 2).

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Table 2: Types of Innovation in Logistic Service

Types of Innovation Description


Service Technology Service technology innovation contributes to better and faster time and
Innovation space utility, and improved the operational efficiency of logistics services.
It concerns with the technology usage by the firms. For example,
competitive advantage of logistics services can be greatly enhanced by the
application of advanced logistics technologies, such as ERP systems,
RFID, EDI technology, network technology, decision support systems,
time-
tracking systems, automated warehouses, and advanced loading and
unloading equipment.
Service Concept Service concept innovation contains the innovation of supply chain
Innovation operation and management. The main parts of supply chain operations
and management innovation are organization innovation, relationship
innovation, and information innovation. The goal organization innovation
is to achieve value of the customer-centered supply chain, collaborate and
integrate the customers and related enterprise.
Service Delivery System It is the emphasis on the existing organizational structure and knowledge
Innovation networks which should be adapted to the need of the development of new
services. Therefore, project management ideas should be introduced,
which sets up an intra-departmental and intra-organizational virtual
team, through organizing, coordinating the supply chain to meet
customer demand for all resources to complete supply chain
solutions.
Organizations should build up a learning organization, through
enhancing learning and improving the capacity of enterprise and staffs as
well as encouraging innovations.
Customer Service The companies can obtain long-term profitability and development by
Interface Innovation understanding customers’ needs through customer surveys or third-party
investigation. Additionally, they should also develop business strategies
that match with the customers’ supply chain and logistics solutions to
enhance the customer value and service satisfaction, and enhancing
mutual trust between customers and service providers.

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Information Communication Technology Capability

In order to raise the service capability in the era of e-commerce, it was suggested that
logistics service providers to employ new information technologies (Nixon, 2001).
Adopting innovative logistics technologies may enable logistics service providers to
enhance their service abilities (Lin, 2007). Adopting technologies may involve five stages:
awareness, interest, evaluation, trial and adoption (Weber and Kauffman, 2011).
Awareness stage is when someone starts to learn the existence of a new technology. The
next stage happens when they start to gather information about the new technology. The
third and fourth steps are when they analyze and try out the new technology. Finally, after
decision is made, they will adopt the technology. This process may apply to any
organization that adopting technology in their companies (Weber and Kauffman, 2011).

Walker and Cheung (1998) listed 11 intangible benefits of ICT. They include 1) job
enhancement for employees, 2) improved external communication, 3) change through
innovation, 4) improved internal communication, 5) improved product quality, 6)
improving management information, 7) avoiding competitive disadvantage, 8) supporting
core business functions, 9) more timely management information, 10) gaining competitive
advantage, and 11) improved customer service. Companies can use ICT for both
efficiency (cost and time saving; doing things right) and
commercial advantage (providing superior value; doing the right things). ICT capability
can also affect the companies throughout their value chain, starting from procurement,
transformation, marketing, and distribution processes to their customers (Regan et al.,
2006).

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In general, ICT is a tool for innovation, but ICT capability is the ability of the firms to
understand and utilized IT tools and processes for achieving competitive advantage
(Ringim et al., 2010). The definition of ICT, however, is still quite vague and confusing in
the literature. Many authors have used ICT, e-commerce, Internet, and e-business
interchangeably (Southern and Tilly, 2000). One study explained that ICT is related with a
wide array of technology, ranging from database programs to local area networks (Matlay
and Addis, 2003). Moreover, the results of the studies on the effect of ICT on innovation
are inconsistent. A study by Johannessen et al. (1999) suggests that ICT by itself does not
encourage or discourage innovation. It is the people working in the organization that
create innovation, not ICT. ICT is more or less like a tool to be used for innovation, since
new technology can help companies to do things in a new or better way. Another study,
however, has found that the use of ICT has a positive relation with innovation and
performance, which is due to learning and adjustment, boosted by the maturity in using
ICT by IT companies (Johannessen et al.,1999). A study also found that IT capability is a
strong moderator in the relationship between service innovation and supply chain
performance [30]. Based on this, we propose that customer responsiveness and service
innovation is contingent to the level of ICT capability of the postal and courier services.

Proposed Model of Service Innovation and Customer Responsiveness


Based on the above discussion, we propose the following model to be further investigated.
We argue that customer responsiveness is influenced by the service innovation at the

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postal and courier services. The relationship is moderated by the level of ICT capability by
the companies.

Service Innovation
Service Technology Service Concept
Service Delivery System

Customer Responsiveness

ICT
Capability
Customer Service Interface

Figure 1: The model of service innovation and customer responsiveness

We proposed a model of service innovation in relation to the customer responsiveness in


the postal and courier services. We have found this relationship to be further unveiled due
to the intense innovation and the complexity of processes involved in the postal and
courier services. In addition, we also differentiate the ICT and innovation. The capability
of ICT is expected to moderate the relationship. The findings of the model are significant
to the research and the postal and courier services for their business improvement
especially in becoming more responsive to their customers.

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6.0 Conclusion

In general, managing innovation issues in Malaysia, government does not always know
best. The government should interact with the industry to develop a mutual understanding
of global demand trends and opportunities, technology related needs, financing
requirements, and market risk. Government's role is to encourage innovation by setting
good governance with greater involvement of interested parties in determining the policy
orientation and priorities. Policies related to industry structure, improvement, and
expansion, and the development of products or processes and specialization, should be
market-oriented. The market will dictate the pace of innovation technology based on
demand trends, whether in traditional or new growth areas. The market will decide
whether to use the product or innovative process locally or purchased from markets.
Innovation can be created and established when all the issues discussed are managed in
efficient and effective ways.
A marketing plan for your business defines and directs the marketing activities that will
build the customer base and increase revenue. It encourages an organization to look
inwardly and outwardly to understand the impact of marketing decisions and the target
market. A marketing plan will create goals and encourage a business to expand, including
delivery service.
- Thoroughly describe your delivery service and any products you may offer,
including boxes and packing material. The first section of the marketing plan will
define the features and benefits of your service. Expound on all of the options you
provide for delivery, such as overnight, same day courier. Describe your pricing
structure and any discounts or sales you offer.
- Research and build a profile of your target customer. This group can be defined by
demographics, including age, gender, family status, socioeconomic status, and/or

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lifestyle, such as values, hobbies, activities, beliefs. You will also need to
determine their motives for using a delivery service and how often they might use
your service. Also, are there times or days when your target customer is more
likely to use the service?
- Research your competition. In this section of your marketing plan you will
describe any and all competition in your area. Be sure to include direct and indirect
delivery services, listed with descriptions of their services and their strengths and
weaknesses. Address the ways in which your delivery service differs from the
others and how your service will improve upon theirs.
- Create your marketing strategy. In this section, you will address the advertising
venues you will use; will you purchase advertising spots on local television or
radio stations? What about newspaper advertisements? Describe any printed
materials you will use in the promotion of your company. This will include
brochures, fliers, business cards, coupons and stationery. Address the ways in
which you will use your website and other online sources to promote your delivery
service. If you are new to the area, this section will also include ways that you will
introduce yourself to the community.
- Determine your marketing budget, which is essential to any marketing plan. A new
business might use up to 20 percent of its sales on marketing strategies during the
first year to make itself known. After that, the marketing budget usually falls
somewhere between 1 percent and 10 percent of sales.

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