4.

MARKETING ANALYSIS & COMPETITION

4.0 Introduction of Marketing

Marketing is a form of communication between a business house and its customers with the goal of
selling their products or services to them. Goods are not complete products until they are in the
customer's hands. Marketing is the management process by which goods and services move from
concept to customer.

4.1 The Customer

Customer marketing focuses on enhancing and leveraging current customer experiences to increase
retention and growth. Successful customer marketing depends on correctly segmenting your
audience, engaging with customers effectively and maintaining a customer advocacy program.
Stomaco will be ensure that marketing efforts meet customer needs and wants as well as being
profits, the company has taken steps to identify and focus our effort on a selected group of
customers. This is to ensure that the marketing efforts are within our scope and capabilities of our
business.

4.2 Target Market

Target market was referring to a group of customers to buyers with similar traits that the
organization want to attract through their product’s offering. There are several reasons why business
decides on a specific target market.

The first reason is that it is impractical and impossible for a business to offer a product that can
satisfy the needs and wants of the entire population. The second reason is that most businesses
community must focus its activities on attracting a core group of customers. So, by producing this
product will make the highest potential to purchase the good or product offered.

The existence of a target market does not mean that the business should ignore the other groups of
customers that exist in the same market. These other groups may be the secondary market and may
bring income to the business. However, the main income is derived from the primary target market.
As circumstances, a business may also change its target market.

4.2.1 Geographic variables

Stomato company is the product through online at GrabFood, FoodPanda and ShopeeFood. We’ve
decided to work with a manufacturer in Klang Valley, Kuala Lumpur base on a few aspects that has
been considers which are the system of transportation and the environment.
4.2.2 Demographic variables

The main target market for our business is the adult community especially officers, lecturers, and
even students in universities, whether they are male or female and marital status as we allow the
customer to choose colours or even create the whole healthy meals through custom order. This
Stomaco is not only for people from high class income but also for people from middle class income.
It is because the price of healthy meals is suitable and affordable to people with difference level of
income. Therefore, we are trying to take this opportunity to capture them since our Stomaco can
help them to solve the problems.

4.2.3 Market size

Market size is the total potential purchase that is expected from the target market. We hadidentified
our target market of customers in Klang Valley. As for Klang Valley, there are 577 700 workers and
252 000 students. We target 65% of people from each category will purchase the healhty meals per
month. Logically, most people that will come to the company will be aged around 18 until 30 years
old as it is in an urban area and most companies with this theme will be hipster and people around
that age love to try new things. Moreover, it is possible because most youngsters live in the area.

4.3 Competitors and Competitive Edges

Companies that sell food, such as ours, are unquestionably competitors. Companies that build cafés
and offer menus comparable to ours, in particular. In terms of the food that customerswant to buy,
there will be competition. As a result, we must compete on both food quality and the cleanliness of
our store environment. In order to attract customers to come into our store and buy, we also need
to improve our facilities and food quality results for our foods and drinks.

The competitors in the area will be Ninth Street Espresso, The Glass House and Beloya Roasters.
These competitors had an almost identical menu as Stomaco as it is a cafe. But what stands for
Stomaco, it had a section for people to shop pre-loved clothing at the bundle section. Stomaco also
stands with a cheaper price to offer from the other companies.
4.4 Marketing Strategy

A marketing strategy refers to a business's overall game plan for reaching prospective consumers
and turning them into customers of their products or services. A marketing strategy contains the
company's value proposition, key brand messaging, data on target customer demographics, and
other high-level elements.

4.4.1 Product

- Brand

In terms of branding, our company chose the moniker Stomaco for thebrand and Premium
Stomaco for the product.

- Design

The product that we produce is different with competitor’s product, it is because ourproduct has
specialized characteristic compared to other products in term of productdesign.

- Packaging

In terms of packing, we give superior packaging because we don't use plastic to placeour meals in.
Instead, we use a standard carton that can fix the healthy meals inside itwith environmentally
friendly poly and foam.

- Quality

The Premium Stomaco use a high quality of raw materials such as premiumcoloured canopy,
fibreglass frame, steel shaft, steel spokes, rubber handle, connectorsnap button and premium plastic
for the extra protection from shoulder to toe.

- Labelling

In addition, we include information about our manufacturer, the product's substance,and

instructions for use. We also provide the product's identification, grade, anddescription, as
well as its promotion.

- Product Differentiation

The Premium Stomaco product is the most affordable price compared toother competitors in the
market. Even though we provide lower price, we secure thequality of our product before we ship to
the customers. Not only that, but we alsoconcentrated on increasing our promotion and advertising
our product on a regularbasis through media and other platforms.
5.4.2 Pricing
As we work with the
manufacturer, the best way to
achieve the target market is via
pricing
strategy. This strategy is very
important to achieve our sales
forecast. The price that our
company offers is cheapest
and we believe that customer
is willing to pay the price. The
price
that we offered is economical
depends:
Cost Price Markup Selling
Price
RM 35.00/unit 44% RM 45.00
Our companies can set
price according to their
product concept, cost,
target market,
marketing objectives, or
targeted profit, several factors
must be considered as we have
a
strong impact on the firm’s
pricing strategies. These
factors include economics
conditions,
government regulation, social
concerns, and consumer
groups.
5.4.2 Pricing
As we work with the
manufacturer, the best way to
achieve the target market is via
pricing
strategy. This strategy is very
important to achieve our sales
forecast. The price that our
company offers is cheapest
and we believe that customer
is willing to pay the price. The
price
that we offered is economical
depends:
Cost Price Markup Selling
Price
RM 35.00/unit 44% RM 45.00
Our companies can set
price according to their
product concept, cost,
target market,
marketing objectives, or
targeted profit, several factors
must be considered as we have
a
strong impact on the firm’s
pricing strategies. These
factors include economics
conditions,
government regulation, social
concerns, and consumer
groups.
5.4.2 Pricing
As we work with the
manufacturer, the best way to
achieve the target market is via
pricing
strategy. This strategy is very
important to achieve our sales
forecast. The price that our
company offers is cheapest
and we believe that customer
is willing to pay the price. The
price
that we offered is economical
depends:
Cost Price Markup Selling
Price
RM 35.00/unit 44% RM 45.00
Our companies can set
price according to their
product concept, cost,
target market,
marketing objectives, or
targeted profit, several factors
must be considered as we have
a
strong impact on the firm’s
pricing strategies. These
factors include economics
conditions,
government regulation, social
concerns, and consumer
groups.
4.4.2 Pricing
As we work with the manufacturer, the best way to achieve the target market is via pricing
strategy. This strategy is very important to achieve our sales forecast. The price that our
company offers is cheapest and we believe that customer is willing to pay the price. The price
that we offered is economical depends:

Cost Price Markup Selling Price

RM 35.00/unit 44% RM 45.00

Our companies can set price according to their product concept, cost, target market,
marketing objectives, or targeted profit, several factors must be considered as we have a
strong impact on the firm’s pricing strategies. These factors include economics conditions,
government regulation, social concerns, and consumer groups.

4.4.3 Sales Tactics

As for sales tactics, the customers can purchase the Stomaco through online purchasers such as
Shopee app or in our website. For us to attract customers, we also make some promotions such as
New Year and End Year Promo in which we will give a certain amount of discount on every product
we are selling. Other than that, for ongoing promotions, we will give a 20% discount or the
customers who purchased RM200 and above.

4.4.4 Service and warranty policy

Our product will be analysing and evaluate before we send to the customers. However, if
customers facing an issue after purchasing our product, for example, the meals is broken
or have defect, we will give a compensation in a form of exchange the product or refund (if
necessary).

4.4.5 Advertising and promotion

Media advertising

We use all social media platforms such as Instagram, Twitter, Facebook, Tiktok, Youtube Ads
and many more to advertise our product. We post our product’s information in Instagram and
Facebook such as packaging, customer feedback and platform to purchase our products. As
for Tiktok, we create a short video to promote our product as Tiktok has more linkage to the
customers. We also used Youtube Ads to advertise our product so people who watch Youtube
can see it and share it to everyone.

Sales promotion

We also want to provide a monthly promotion whereby every first week of the month, we will
give 10% discount of any 1 item of our product per transaction only.

5.4.6 Distribution

Distribution strategy is important to make sure that our product is in good condition when it
arrives to the customers. Our product will be sending direct to the retailer based on our
contract.

Our product only can be sending to the retailer after the process quality checking.

5.5 Marketing Budget

 MARKETING EXPENDITURE

Fixed Assets/Capital Expenditures RM

Van 70 000

70 000

Working Capital/Monthly Expenditure

Salaries 8 000

EPF 480

SOCSO 80

Promotion and Advertising 1 500

Fuel (Vehicle) 300

10 360

Other Expenditure

Pre-Opening 2 000

2 000

Pre-Operation

Insurance and Road Tax for motor vehicle 1 200

1 200

Total 83 560

Marketing Budget