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GROUP ASSIGNMENT: Business Plan (F&N: 100 Plus) 2012

1.0 Executive Summary

Fraser and Neave Holdings Bhd (F&N) Group is a Malaysia based company that
specialized in beverages and Dairy products manufacturing. The beverage
brands under the umbrella of the F&N Group have become the preferred thirst
quenchers for countless generations of Malaysians. Moreover, F&N Beverages
Marketing Sdn Bhd is also Malaysias largest soft drinks manufacturer and
distributor. The company operates four manufacturing plants nationwide,
including its state-of-the-art facility at its headquarters in Shah Alam, Selangor.
FNBM distributes F&N products comprising 100PLUS, F&N Fun Flavours, F&N
Originals, SEASONS, Ice Mountain and Fruit Tree. F&N developed brands that
have become the market leader in many categories.

The 100 PLUS brand is well known as one of the most distinct and famous
brand of F&N, which is the market leader of the isotonic drink market. Nowadays,
F&N is one of the Malaysian first choice brand and started to expand its business
to more than 20 countries worldwide and becoming a regional player. Currently,
F&N possessed 60% of the soft drink market share in our country. F&N brands
are able to gain support from Malaysians because of the innovative and quality
products. F&N brands have already been with Malaysian for over 128 years since
year 1883. Various successful F&N products are launched, for example
sweetened condensed filled milk in 1973, a complete range of ice-cream series
in 1974 and the launched of 100 PLUS isotonic drinks in year 1984.

Among the various soft drinks developed F&N, the isotonic drink 100 PLUS
become famous and attracted most of consumers from all ranges of ages and
currently no. 1 in the isotonic drink market. 100 PLUS brand possessed more than
90% of the isotonic drink market share since 2010 till 2011. The increased
cautiousness of health among people give an opportunity to 100 PLUS to expand
its market to a new potential market. The stability of F&N brands especially 100
PLUS has come to epitomize the virtues of quality, fair pricing, universal
availability, and, above all, the celebration of life to be successful in the
beverage industry.

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GROUP ASSIGNMENT: Business Plan (F&N: 100 Plus) 2012

2.0 Situational Analysis

Becoming no. 1 in the market is not easy as to say and it is true to 100 PLUS as
this isotonic drink through a few phases to be popular among consumers
especially Malaysia. Carbonated soft drink has existed for a long time in Malaysia
and has been well accepted by the Malaysian. During the year 1983,
100PLUShad been introduced in Malaysia by F&N Beverage Manufacturing Sdn.
Bhd. with its objective to promote sports and active lifestyle. 100 PLUS is an
isotonic drinks that help to replenish the fluids and electrolytes that lose during
physical activities. 100 PLUS was not well known from the beginning of the
period but it was being promoted to the sports community. Slowly 100 PLUS was
incorporated into the sports community which was well accepted by the athlete
and become popular among them.

Over the years, peoples realize and concern more towards healthier life
and their positive perception on ideal diet food intake become plus point or
advantages for 100 PLUS isotonic. People begin to percent 100 PLUS as a healthy
drink and this drink become popular not only to sports personal but active
individuals and travelers also become attracted by the product as a thirst
quencher as it can replenish them compared to other soft drink. 100 PLUS then
had gained popularity among the people and with its advantages as the first
mover, it had become the nation recognized isotonic drink. In year 2010, 100
PLUS had dominated 90% of the isotonic drink in Malaysia.

2.1 Market Summary

F&N Beverages Marketing is a soft drinks manufacturing company in Malaysia


and the organization possessed 60% of the soft drink market share. 100 PLUS is
an isotonic drink that is manufactured by F&N Beverages Marketing Sdn Bhd and
possessed 90% of Malaysia isotonic drink market share. 100 PLUS is also the
pioneer of the isotonic market which gave its advantages in understanding the
needs of consumers better as compared to the others. With that it had created a
value with the consumers as the consumers perceived that 100 PLUS could
understand them well which they had gained popularity and loyalty of the
consumer in globally.

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GROUP ASSIGNMENT: Business Plan (F&N: 100 Plus) 2012

The Target Markets of F&Ns 100 PLUS isotonic:

Active individuals
Sports
Travelers and
Healthier lifestyle individuals

2.1.1 Market Demographics

The Research and Development of F&N had identified the background and the
profile of 100 PLUS drink according the following components. The 100 PLUS
consumers consisting of the following geographic, demographic and behavior
factors as in Table 1.

100 PLUS had targeted their consumers


Geographic
located in all the regions in Malaysia with the
targeted population of approximately 18
million consumers consist of 65.4% population
of Malaysia.
The targeted market consists of all male and
Demographic
female consumers and he range of age is
between 15 to 64 years old. The number of
male and female population in this category is
approximately 9.5 million and 9.2 million.
The behavior factor that contributes to the
market is the rising health awareness of
consumer. This had lead to the active lifestyle

Behaviour Factors by involving in sports and fitness activities. For


lighter consumer, they will involve in
recreation activities at least twice a week or
more. Aside from that the increasing
household income also leads to the higher
spending pattern of consumer toward the
isotonic drinks.

Table 1: Market demographics for 100 PLUS isotonic drinks


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GROUP ASSIGNMENT: Business Plan (F&N: 100 Plus) 2012

2.1.2 Market Needs

Over one million people rehydrate, refresh and re-energize with 100PLUS every
24 hours in Malaysia, a number that continues to grow steadily. Thus, 100 PLUS is
an isotonic thirst quencher drink that helps active lifestyle individuals to restore
lost during physical activities which involve the dehydration and electrolyte
balance. 100 PLUS is trying to fulfill the needs of consumers which are described
as below:

i) Rehydration :
Consumers have become more actively involving in sports and physical
activities as they are more concern toward exercise for healthy life. While
exercising they might be facing dehydration as a result of fluid and
electrolyte loss. So the 100 PLUS can perform the action to replenish the
fluid loss and provide the maximum performance outcome for the
consumers.

ii) Healthier product :


100 PLUS not only provide the needs for the athlete but it also can perform
as a thirst quencher for normal life individuals. This can be related to the
travelers especially those in airplane and long-range driving. 100 PLUS can
replenish their dehydration faster and more efficient. It is also considered
a healthier choice of product as it contains lower sugar level as compared
to other soft drinks. 100 PLUS also consist of a unique combination of
sucrose, glucose and electrolytes that help with transport of nutrients into
the body.

2.1.3 Markets Trends

100 PLUS has been well known for its dehydration purpose for sports people. For
the earlier time 100 PLUS purpose is to serve the athlete in recovering their fluid
balance for their maximum performance. Slowly it became well known in the
sports community for its hydration and healthier benefits compare to other soft
drinks.

With the rise of Malaysian toward healthier lifestyle through sport and
active living, it had given an opportunity for the 100 PLUS to market their

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GROUP ASSIGNMENT: Business Plan (F&N: 100 Plus) 2012

product. Since more people would be involved in physical activities for example
jogging, jungle trekking and many more. This lead to dehydration and the need
for isotonic drink is important for the body fluid recovery. Travelers could also
face dehydration easily and with the 100 PLUS isotonic drink it can easily
replenish them and giving them the daily peak performance. So 100 PLUS could
be very efficient in replenishing the consumers.

The scope of the market also has broadened through the improvement of
the economy where consumer had more choice to choose for their spending.
With the highest income, more consumers would choose to spend for activities
such as gym membership, fitness programs, sport centers for Futsal and
badminton, and also the recreational park. This showed that the consumers are
more concern towards their health which causes the growth of the isotonic drink
market. Teenagers and students also actively involved in sports in competition
which also broaden the market. So 100 PLUS had also tried to market their
product not only for athletes but also for active individual and travelers.

2.1.4 Market Growth

With the increase in average household income in Malaysia, it had broadened the
choice for the consumers to choose a better beverage drink for their daily life.
Before that most of the people would just prefer a cup of water but now they
would go for soft drinks, isotonic drinks and others. Consumers nowadays would
be concentrating more on the healthy lifestyle or more active lifestyle and this
lead to the growing awareness of the benefits of isotonic drinks. Not only that,
isotonic drink also helps individual to achieve daily peak performance. This led to
the increase demands for the isotonic drink and indirectly leads to the growth of
the isotonic drink market.

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GROUP ASSIGNMENT: Business Plan (F&N: 100 Plus) 2012

2.2 SWOT ANALYSIS (Refer Table 2)

Strength Weakness

High popularity Conservative packaging


Unique Recipe Low product variety
High product differentiation Too dependent on the core
product

Opportunity Threat

Dominant the isotonic market Price competition


position
Efficient distribution channel
Increase demand on isotonic
drink

Table 2 : SWOT analysis for 100 PLUS isotonic

2.2.1 Strength

The strength would be this product has high popularity among the isotonic sports
drinks in the market of Singapore, Malaysia, South Africa and the Philippines.
Besides, 100 PLUS has its own unique recipe and taste. It has differentiated
characteristics from the other soft drinks. For example, 100 PLUS is a healthier
soft drink with low sugar as compared to the other types of soft drinks. 100 PLUS
is best known for its great refreshing taste and its main purpose in preventing
dehydration. It also contains sufficient amount of sodium which encourages the
consumers to drink more to quench the body thirst. It has a unique formula
which combines fluids, carbohydrates and electrolytes for quick and efficient
absorption of fluids into the body. It is an isotonic drink that aids the body in
achieving hydration and electrolyte balance in the course of one day. In spite of
that, 100 PLUS meets the Nutritional Guidelines set by the Health Promotion
Board as a healthier choice for complete hydration.

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GROUP ASSIGNMENT: Business Plan (F&N: 100 Plus) 2012

2.2.2 Weakness

The weakness that can be detected is that 100 PLUS has a conservative
packaging that might lose out on attracting the attention of customers as
compared to competitors with eyes catching packaging design when stacked on
shelves in retail. For example the competitor product Revive has a more
attractive packaging and a younger generation approach type of packaging.
Other than that, the brand 100 PLUS itself has low product variety with only 4
types of 100 PLUS product and too dependent on the core product. This gives
consumers a less choice of drink and easily can create a niche for competitor to
differentiate their product with 100 PLUS.

2.2.3 Opportunity

The opportunity in the 100 PLUS brand is that it is one of the dominant brands in
the isotonic drink in the market. 100 PLUS this drink has been existing since 1983
and it is the oldest isotonic brand in Malaysia. It has been said to be dominant
isotonic drink in Malaysia.

Other than that, 100 PLUS which belongs to the brand F&N has been established
for a long time in the market. It has a good company system for distribution and
100 PLUS can together with this distribution chain distribute to the market. The
existing distribution channel is established and efficient.

Other than that, there is an increase demand on isotonic drink as people are
getting more health conscious. A soft drink that is famously knows as having
high sugar content and leading to disease like diabetes. Hence there is an
increase in the isotonic drink market demand. Nowadays people also drink
isotonic drinks which are less sugar content than that normal soft drink.

2.2.4 Threat

The main threat that 100 PLUS faced is the competitive threat. Basically, the 100
PLUS brand is facing competition from Revive and Excel brand, which are also
brands focused on isotonic drink markets. In terms of competition, these brand

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GROUP ASSIGNMENT: Business Plan (F&N: 100 Plus) 2012

has the price advantage over 100 PLUS brand. For example, 1.5 Litre Revive
isotonic drink has a 20% lower pricing if compared 100 PLUS.

2.3 Competition

Although 100PLUS acquired 90% of the market share of isotonic drink in


Malaysia, there are other competitors in the market as well. The competitors that
are competing with the 100PLUS for example, Gatorade, which is one of the
largest brands of PepsiCo. Gatorade had acquired approximately 75% market
share in the sports drink category in the United State. Besides that, PepsiCo also
developed a product called the 7Up Revive Isotonic Drink to compete with
100PLUS at a cheaper price.

2.4 Product Offering

F&N 100 PLUS currently offers a few products that consist of:

i) 100 PLUS Original


ii) 100 PLUS Tangy Tangerine
iii) 100 PLUS Lemon Lime
iv) 100 PLUS Aqtiv

2.5 Keys to Success

100PLUS success is mainly due to the ability to produce the product that meets
the consumers need. Besides that, the quality and taste also meet the
consumers expectation and preferences. 100PLUS is also the market pioneer
with its first isotonic drinks to be introduced to the Malaysian market and it had
gained popularity as well as brand reputation that lead to the success of the
product. It has become the market dominance and if the 100PLUS maintains its
quality, it can enhance customer loyalty to the brand. With all these advantages
100PLUS can become a profitable company which can sustain for the future.

2.6 Critical Issues

100 PLUS is an existing business which had reached its maturity stage. There are
some critical issues that it had to be considered in order to sustain in the market:

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GROUP ASSIGNMENT: Business Plan (F&N: 100 Plus) 2012

Monitoring the customer satisfaction and change in taste preferences of


customers so that it can develop the product to meet the customer
requirement.
Continuous advertising the 100 PLUS brand to attract the attention of
either the new consumers or old customer. This will make sure that the
consumer will be aware of the product all the time so that it can create a
high barrier of entry for new firms.

3.0 Marketing Strategy

The essence of the marketing strategy of F&N on 100 PLUS isotonic drink is
focused on maintaining the brand position in the isotonic drink market. From the
survey done, 100 PLUS dominates the isotonic drink market by holding up to 90%
of the market share. Thus, 100PLUS has a very strong branding among the
consumers in the isotonic drink market.

3.1 Mission
The mission of F&N Company is Become a world-class multinational enterprise
providing superior returns to our shareholders, excellent value for our customers
and a rewarding career for our employees.

3.2 Marketing Objective

Maintain the position of 100 PLUS as the top brand in the isotonic drink market.

3.3 Financial Objective

The financial objective is to increase the profit margin of F&N by 10%.

3.4 Target Markets

The target market of 100 PLUS was initially focused on the active sports person.
Due to the cautions and awareness about healthy lifestyle, the demand of the
isotonic drink has increased. Thus, the isotonic drink market has expanded.
100PLUSs target market will be extended into this potential isotonic drink
market. The new target market will be expanded to travelers. Frequent traveling
will cause a significant loss of body fluid especially those travelling by air,

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GROUP ASSIGNMENT: Business Plan (F&N: 100 Plus) 2012

therefore this increase the demand for an isotonic drink to balance the body fluid
while travelling.
3.5 Positioning

100 PLUS is an isotonic drink that helps to hydrate the body of an active person.
F&N will continue to cement 100 PLUS position as Malaysias no 1 isotonic drink
and maintaining the brand positioning in consumers mind to choose 100PLUS
when the need to rehydrate pops-up. Its market position will be achieved by
engaging outreach programs and strong advertising and promotion.

3.6 Strategies:

The first strategy involves aggressive advertising through the use of billboards
and more creative displays at modern trade channels to attract consumers.
Marketing efforts through social media, endorsements and sponsorships, special
events, promotion and contests are directed towards strengthening brand
recognition and brand loyalty amongst consumers. F&N will first engage in an
aggressive advertising through a big poster on the billboards in areas where
there will be a lot of people pass by. This billboard will include creative design
and eye catches sight of the advertisement. On top of that, creating a website
and a Facebook fan page will be part of the advertising program as well. Contest
or sport related competition organized by F&N 100plus will also be implemented.
This competition will be for example 100plus street side 3 on 3 basketball match.
Other than that, F&N will also commit in sponsorship towards the sports related
event. Another event is by sponsoring 100PLUS drinks for the Ipoh Starwalk
2012. This will encourage consumers participation in fitness activities and at the
same time boost the consumption of 100plus.

The second strategy is to strengthen the position of the brand 100PLUS in


the consumers mind by engaging in campaign and programs. This to associate
the brand 100 PLUS with Malaysians passion for sports and active lifestyle. For
example, 100 PLUS Thomas Cup 1 Million Support Campaign was launched to
support the Malaysian badminton team. In contrast with their slogan outdo
yourself, 100PLUS enhanced their brand activities by promoting sports such as
the football competition under the campaign 100PLUS Football Xtreme to build
brand awareness and encourage consumers to remain active in sports. In

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GROUP ASSIGNMENT: Business Plan (F&N: 100 Plus) 2012

addition to that, the sponsorship for hockey matches under the 100PLUS Tun
Abdul Razak Cup will fortify 100PLUS position as the preferred isotonic drink for
various sports in Malaysia.

The last strategy is through brand ambassador where World no 1


Badminton player Malaysias Datuk Lee Chong Wei will be appointed as the first
ever brand ambassador for 100 PLUS and this will create added value to the
100PLUS brand.

3.7 Marketing mix

The 100PLUS marketing mix will be based on the 4Ps which is Price, Product,
Place and Promotion.

3.7.1 Pricing - The pricing would be based on retail price.

3.7.2 Product - F&N 100PLUS has four flavored isotonic drinks such
as original, lemon lime, tangy tangerine and Activ.
More flavors will be introduced to extend the products
variety.

3.7.3 Place - 100PLUS will be made available to reach their


customers
through supermarkets, convenience stores, vending
machines, kiosk and specialty stores.

3.7.4 Promotion- Increase brand awareness through a contest,


campaign, advertisement and corporate social
responsibility.

3.8 Marketing research

To generate more profit in the future, sales pattern of the product will be
monitored through database mining. Retailers can use this method to find when
does customer are most likely to respond to an offer or when sales are the

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GROUP ASSIGNMENT: Business Plan (F&N: 100 Plus) 2012

highest in a period. F&N will then get feedback from the retailers regarding the
sales of 100PLUS in the market.

4.0 Financials

This section will give us a brief overview about the financial summary which
addresses the break-even analysis, sales forecast and expense forecast.
However, we faced problems in determining the fixed cost and variable cost for
the brand 100PLUS as it is not stated clearly in the annual report. On top of that
the cost involved all of the soft drink category, dairy products and other
beverages manufactured by the company. Therefore, in this financial section, we
assume the cost used by the company as the cost involved in producing 100PLUS
to show how would the process of financial forecast would be implemented in the
marketing plan.

4.1 Break-even Analysis

Sales: Increase by 10 percent


Variable Costs: Increase by 10 percent
Fixed Cost: Remain
Contribution Margin: Sales - Variable Costs
Contribution Margin ratio: contribution margin/sales
Break-even sales in dollars: total fixed costs/contribution ratio
See Table 3 for more clarification on Break-even analysis for 100 PLUS

Year 2011 Year 2012 Year 2013


(Actual) (Assumption) (Assumption)

Sales RM363772600 RM4001498600 RM4401648460


0

Variable Costs RM660486000 RM726534600 RM799188060

Fixed Costs RM132403000 RM132403000 RM1324030000

Contribution Margin RM297724000 RM3274964000 RM3602460400

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GROUP ASSIGNMENT: Business Plan (F&N: 100 Plus) 2012

Contribution Margin Ratio 0.82 0.82 0.82

Break-even Sales in RM161467073. RM161467073.20 RM1614670731.20


Ringgit Malaysia 20

Table 3 : Break-even analysis for 100 PLUS isotonic

4.2 Sales Forecast

The sales are running at RM1589.10 million in the year 2011. It is estimated to
increase the sales by 10 percent to RM1748.01 million in year 2012 and follow by
in the year 2013 to RM1922.81 million. Based on the potential market outlined in
the Marketing Section of this plan, the increasing numbers of target markets will
cause the revenue of the product to increase.

4.3 Expense Forecast

The expense forecast, detailed in the next section, will be used as a tool for the
organization to keep the company on target for setting marketing goals. The
forecast will provide indicators when the company is not on target and
modifications are needed for the proper implementation of the marketing plan.
Table 4 below shows forecasted expenses for 100 PLUS.

Year 2012 Year 2013


(Assumption) (Assumption)

Web Site RM20000 RM10000

Advertisements RM500000 RM500000

Sponsorships RM700000 RM800000

Ambassador RM1000000 RM1000000

Total Sales and Marketing RM2220000 RM2310000


Expenses

Table 4 : Forecasted total sales & expenses for 100 PLUS isotonic

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GROUP ASSIGNMENT: Business Plan (F&N: 100 Plus) 2012

5.0 Performance Monitoring and Controls

This marketing plan serves as a guide for the firm to perform the marketing
strategies to increase their sales and profit. A company might remain efficient in
the company structure itself but loses its effectiveness in term of the market.
Hence, the effectiveness of the marketing strategies has to be monitor and
measure so that any negative effect can be handled and solve immediately. In
order to monitor the performance of the marketing strategies, a few parameters
are suggested to monitor the performance of the strategies.

i) Revenue and Expenses

In this parameter, we will look into how the companys account would
improve from the new marketing plan. This is important as the final aim of a
marketing plan is to increase the sales and profit maximization. The success
of the marketing plan will ensure an increase in revenue. On top of that the
company does not wish to lose control in terms of costing as well. Therefore
monitoring the expense account is important as to prevent operation cost to
exceed revenues generated.

In this section or parameter, the monthly account is recorded and then


projected in a yearly account summary after the marketing plan has started.
The account department will present their revenue, sales, and expense
report. From that monthly report, the increase or the decrease of the revenue
and expenses will be observed. The monthly report will combine into a
quarterly report to observe the effectiveness of the marketing plan in every
four months.

ii) Sales Volume

Monitoring the sales volume after the execution of the marketing plan is
an effective way to monitor and control the marketing strategies as well. An
effective marketing plan will definitely affect the sales volume which
increases the demand of our product. Monitoring the sales volume not only in
the short run but also the long run is important as well. This is because

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GROUP ASSIGNMENT: Business Plan (F&N: 100 Plus) 2012

marketing plan will not be effective and last forever. No matter how good is
the marketing plan, it will last for a period of time only. One of the reasons is
that consumer taste and influence changes over times.

In the 1980s, advertising through television will be very effective back


then, but then in this new era, a more effective way of advertising would be
through the social network. Through monitoring of sales volume, when the
sales volume has slowly dropped or decrease, the company would have to be
alert that corrective measures have to be done. One of the ways to measure
this is through the report prepared by the sales department. It has to be
reported monthly and a quarterly report has to be done. Follow by that,
annual report of the sales volume has to be recorded and tabulate as well to
monitor the whole process.

Other than that, the company can also hire or outsource their sales
volume monitoring program to other third party company that provides such
service especially monitor through the marketing mix model (MMM). If the
company is at a good financial status, it is highly recommended as the MMM
model is an effective way to monitor the sales volume through regression
analysis. It is where they will look into the effectiveness of the marketing
strategies on how it had affected the sales volume. Through this method, it
will go further by looking into different group. The group of sales based on the
demand, customer loyalty and brand awareness. On the other hand, the other
group would be looking into the incremental of sales which is due to the effect
after implementing the marketing strategies and activities.

iii) Customer satisfaction feedback

Other than that, monitoring the customer satisfaction towards the product is
very important as well. This is to determine the acceptance level of the
customer towards the product and their satisfaction level which will lead to
the company to take corrective measures if the customer is not satisfied with
the product.

One way this can be done is get connected with the customer through the
social media and social network. As the trend and growing number usage of
internet and social network, a company can easily get connected with their

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GROUP ASSIGNMENT: Business Plan (F&N: 100 Plus) 2012

customers. This can be done by setting up a fan page in the current most
famous social network namely facebook.com and Google Plus. Through this
web fan page, the current update of the product, promotions, and campaigns
can be promoted through the fan page which is free of charge. On top of that,
a discussion forum on the particular fan page can be created as well. The
forum can be done specifically towards the marketing activities being
conducted and let the customer discuss and talk about it in the forum. From
there, customer point of view of such activities or towards the marketing
strategy can be known.

Other than that, a feedback form can be done for the retailers to fill in so
that feedback from the retailers can be obtained as well. Feedback from
retailer inclusive of the indirect customer feedback as the retail will always be
the place where customers will complain if anything that happen.

5.1 Implementation

The implementation planning is very important for a company. A company might


have a good marketing plan but if not implement wells it will end up failure as
well. As a result, a good timely implementation milestone is very important.
Table 5 below show the milestones for F&N to execute its marketing plan.

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GROUP ASSIGNMENT: Business Plan (F&N: 100 Plus) 2012

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GROUP ASSIGNMENT: Business Plan (F&N: 100 Plus) 2012

Milestone of Marketing Plan for 100 PLUS isotonic drinks


No. Start End Date Marketing plan to Budget Department /
Date be executed (RM) Person In Change

1) 2/1/2013 Continuou Creating a Facebook 0 IT department / IT


s program fan page for 100 PLUS executive

2) 1/2/2013 Continuou 100 PLUS specialty 20,000 IT department / IT


s program website. executive

3) 1/2/2013 2/9/2013 Billboard advertising 500,000 Sales and


(whole Malaysia) Marketing
Department /
Marketing
executive
4) 1/4/2013 1/7/2013 Sponsorship in charity 200,000 Sales and
Marketing
Department /
Marketing
executive
5) 1/3/2013 15/12/201 Sport event 500,000 Sales and
3 sponsorship. Marketing
Thomas Cup, Tun Department /
Razak Hockey Match, Marketing
Football extreme executive
match, Futsal
Tournament

6) 2/1/2013 15/12/201 100 PLUS ambassador 1,000,000 Sales and


3 program Marketing
Department /
Marketing
executive
Total 2,220,000
Table 5 : Milestones of marketing plan for implementation

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GROUP ASSIGNMENT: Business Plan (F&N: 100 Plus) 2012

5.2 Contingency Planning

In this final part of the marketing plan, we included the contingency planning for
the companys overall marketing planning to be executed. This is where the
difficulties and risk that would face throughout the whole marketing process will
be handled. The challenges will halt or become an obstacle for us to move
forward with the marketing plan. On top of that we included the worst case risk
that might happen.

5.2.1 Difficulties and Risk

Firstly the difficulties that the marking plan face for 100PLUS would be the
visibility or the attractiveness of the Facebook fan page as well as the 100PLUS
website. Both the web base strategy may not receive good responds from the
customer. One of the reasons may be due to Facebook users using Facebook to
connect to their friends and viewing friends profile only. Other than that, the
100PLUS website may not be serving its purpose and the number of traffic of
people log into 100PLUS website may not be appealing.

Secondly is the billboard advertising has been saturated and being used
up by many big companies. For 100PLUSto compete and us billboard advertising,
it requires good negotiation skills with the billboard company and this involves a
higher cost. Third would be the most difficult where if the price of raw material
supply like aluminum and sugar goes up, it will burden the company expenses
and cost. As inflation is hitting the country, the price of food and commodities
hiked, the price of sugar will also not exempted from that. If the price of both
sugar and aluminum goes up dramatically, the company may need to cut down
expensed and cost which will affect the marketing plan.

5.2.2 Worst Case Risk

The worst thing that might be happening towards the company is the food safety
issue. If the company product or 100PLUS are hit with food safety issues for
example detected E-coli diarrhea contributing factor in the drinks, it will cause
the company to lose its brand and brand loyalty. If such serious case food safety
issue and related to customer health effect or even causing death after

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GROUP ASSIGNMENT: Business Plan (F&N: 100 Plus) 2012

consuming the company product, it will destroy the whole brand itself. No matter
what marketing strategy we use will not able to attract customers towards our
product. Hence, the manufacturing process has to be extremely alert and aware
with food safety issues.

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