Mera Edora Binti Maikel BB18110212: NO Name Matric No. Programme Signature
Mera Edora Binti Maikel BB18110212: NO Name Matric No. Programme Signature
(FPEP)
NO TITLE PAGE
3-4
3.0 Market / Industry Analysis
4-6
4.0 Local Business Environment Analysis
6-7
5.0 Global Business Environment Analysis
SWOT Analysis
6.1 Strengths
6.2 Weaknesses 7-9
6.0
6.3 Opportunities
6.4 Threats
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8.0 Marketing Organization
12
9.0 Financial Information
12-15
10.0 Tables, Graphs, Diagrams and Picture
2
16
11.0 References
17
12.0 Appendices
3
Executive Summary
This marketing plan has been created by The Alpha Team which consists of 7 persons in the
company in 2018. The purpose of this marketing plan is for secure more growth funding from
investors and to inform our employees about AFD current status and future direction. In the
nest 5 years, we will implement and carry out the strategies that had been created create in
this marketing plan to achieve our objectives and goals.
Since the second half of 2017, the global was changing into Industrial Revolution 4.0
which lead a big influence on the way people live, work and communicate. With the rapid
growth of internet technology, internet has already become an indispensable part of modern
people's daily life because it had offered many functions to users to make their life more
convenience and easier. Due to these internet advantages, online ordering can be easily
accepted by people nowadays. According to the research of “The Statistics Portal”, there are
more than 23.41 million internet users be found in Malaysia. This proof that the idea of online
ordering food has a considerable number in Malaysia market.
The idea of creating “Alpha Food Delivery” (AFD) came out with the start-up company
– “The Alpha Team” which consist of 7 members in 2018. The name of service – “Alpha” is
want to express the capability of our service as strong as the Russia’s special forces (Alpha
Group). The purpose of establish online ordering food service is to provide the most convenient,
easiest, fastest and the highest quality of food and food material delivery service to satisfy
customer’s needs in Malaysia.
The Alpha Food Delivery service is one of the types of E-commerce which mean
consumers can make their deals on the internet. We provide 2 online methods to consumers to
carry out a transaction by using the mobile app or official web site. Consumers need to register
as a member to sign in the app or website. The app and website will show the distances and
information about the restaurant or supermarket, the menu of food and material, price and other
details. The Alpha Team has made some cooperation with several restaurants and supermarkets
in certain areas to provide a better service to customers.
The Alpha Team’s delivery service is currently available for certain restaurants and
supermarket in Malaysia. Most of the cooperation of restaurants and supermarkets are available
in several urban areas such as Kuala Lumpur, Johor Bahru, Penang, Kota Kinabalu, and
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Kuching. The high quality and convenient service will gain The Alpha Team a following
among consumers between the age of 19 to 60 especially university students and housewife.
This marketing plan will outline how The Alpha Team intends to introduce the new service
and how to expand the service capabilities.
Alpha Food Delivery’s slogan is “you ordered, we delivery”. Our company’s goals is to be the
most convenient, fastest and highest quality food and food material delivery service to our
consumers and offer better job opportunities to our employees in Malaysia. We want to inspire
people to using our service more often and share these boots to their family and friends.
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margin will use to reinvest to our future planning activities such as expand the service
areas, employee more drivers and build up more partnership with restaurants,
supermarket and other institutions.
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or get benefit from. The rivalry among the competing seller means if the rivalry is weak, AFD
can have opportunity to increase prices and gain more profit. Firm will compete for market
share in saturated market which grow very slow, so the customer base is not growing and lead
to high rivalry among firm. For instance, the huge competition between AFD and other like
Grab Food as each on is competing to improve our customer services. Economics of scale
where AFD able to achieve high volume of production and many outlets but smaller chain is
unable to achieve it due to low volume of production. The threat of substitute product with a
lot of companies in quick service industry, low switching costs, similar products and healthier
option lead us to high substitute of threat. Even though customer switching costs are nearly to
zero, but we did not worry our customer’s loyalty because most of customers gain benefit from
our services. We always provide the best performance to achieve AFD’s mission, objectives
and goals in the market.
Environmental analysis is a strategic tool. It is a process to identify all the external and internal
elements, which can affect the organization’s performance. The analysis entails assessing the
level of threat or opportunity the factors might present. These evaluations are later translated
into the decision-making process. The analysis helps align strategies with the firm’s
environment.
4.1 Suppliers
The suppliers of AFD is the restaurant and supermarket that are available in the certain
areas. The source of food and food material for AFD is the restaurant and supermarket
which operate in the scope of 10km radius between the customers and restaurants or
supermarkets. It is a 24 hours services, so anyone can purchase food at a 24 hours
restaurant. The amounts of items that can be order is based on how much the customer’s
order. AFD will charge base on how much the food is purchase and how far the food
needs to deliver.
4.2 Social/Cultural
Workers, student and people living in cities and suburb are the focus for our services.
These focus group are mainly working and living in major cities and suburb around
Malaysia. They are the focus because the services that is offered are appealing to people
that are having a hard time to buy or get foods and drinks at a certain time. AFD is a
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daily service that can help to lighten the burden of the people who is using the services.
It can really help the people that doesn’t have the time to fetch the food on their own
because of their fix schedule. For example, workers only have one hours to rest and it
will be wasted if there was a traffic jam but with AFD, workers can save time and
energy to buy their foods and drinks. AFD will surely be hit because people working
and living in major cities, cities and suburb around Malaysia have a hard time going to
one place to another. It is because the roads and public transports are always jammed
with people. For people that doesn’t have enough time to wait and get line to go from
one place to another just to fetch some foods and drinks, AFD can surely solve their
problem in an instant. AFD set service prices by how far the distance between where
the order is made and where the restaurant is located. AFD will be heavily advertise in
social media so that people will get to know the services. We also provide the mobile
apps for customers to download at the Apple Apps store and Android Play store for free.
There will a promotion code available with every purchase made using AFD. Usage of
Digital marketing can play a huge role in creating brand awareness for AFD. In offering
something new and inventive periodically in terms of food festivals, offers, and
incentives to maintain the loyalty of customers through email marketing. AFD use
social media to launch several commercials. It will have Facebook page and Twitter
account displaying regular updating and interactions to maintain visibility and brand
value. Promotional advertising also placed on various apps to maintain our brand
recognition. Publicity events have been launched in popular malls, television, radio,
cinema, magazines, newspapers, train hoardings, bus hoardings and billboards.
4.3 Competition
Our main competitors in Malaysia’s market are Food Panda and Grab Food,
these companies are relatively popular in Peninsular Malaysia but not in East Malaysia.
Food Panda Malaysia headquarters is in Kuala Lumpur, Federal Territory of Kuala
Lumpur. Grab Food Malaysia headquarters is in Petaling Jaya, Selangor. Food Panda
deliveries are in Kuala Lumpur, Penang, Petaling Jaya, Subang, Shah Alam Cyberjaya
and Johor Bahru according to the table 1. Meanwhile Grab Food deliveries are only in
Kuala Lumpur and Klang Valley. The lack of area in delivery services is why Food
Panda and Grab Food are not that popular in whole Malaysia. It only focusses on some
cities even though there are more cities that can really benefit from their services. Other
reason that Food Panda and Grab Food are not that popular is because their quality
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services. Food Panda deliveries has many bad reviews because the delivery services in
very slow and it will take around 30 minutes to 2 hours to deliver the food. Food Panda
also has a review of 1.5/5 from Facebook. Grab Food also has the same problem
because the delivery takes a long time to arrive. The mobile app for Grab Food is also
in a beta stage and a lot of problem has arrive because it is not yet fully operational such
as system error while doing an online payment and inaccurate location of order.
Our main set targets are for housewife, workers who located in cities across
Malaysia and students that are mainly from University, College and Polytechnics.
While customers for the second target are people living in cities and suburb. The reason
of set target of workers and students are they have a limited time to fetch their food or
unable to purchase it. The schedule of the target is really pack and their lunchbreak is
not that long, that is why we can help them to fetch their desire food without travel to
the restaurant or supermarket. The second target for the company is people living in
cities and suburb because they are mostly living in an area that crowded and has a lot
of traffic jammed. By using our services, they can save time and can avoid traffic
jammed. The main segmentation of our company is the geographic segmentation. It is
because the main target customers are mainly from cities and suburb that has problems
fetching their foods and drinks because of the ways of living in their area such as traffic
jam and limited time. If we become the leading food delivery service in Malaysia, it
will be a very successful service because the consumers will get benefits by using our
services and there will be no shortage of restaurants that the customers can pick to get
the foods and food materials of their choice.
Before starting a business in Malaysia, we are required to comply a business license from the
government agency such as Suruhanjaya Syarikat Malaysia (SSM). Besides that, we also
required to pay an income tax to the government based on our 24% yearly income rate. Our
company, agents and service providers should limit to the extent permitted by law of each state
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in Malaysia. In addition, we carried out the personal insurance policy for our service providers
or drivers who carry out the high risks on the road because they need to travel with a lot of time
to deliver and complete the orders.
4.2 Demographics
We currently focus on the several urban areas of Malaysia which is Kuala Lumpur,
Johor Bahru, Kuching, Kota Kinabalu and Penang. According to the “World Population
Review”, Kuala Lumpur has the most population which is 1,453,975, Johor Bahru is 802,489,
Kuching is 570,407 and Kota Kinabalu is 457,326. Our main target consumer group is the
people who ageing between 18 years old to 60 years old. Most of their occupation are the
university students, housewife and office workers. They usually choose and use the food
delivery service from other companies by using the calling service or online booking. On the
average, they spend the money on the service for about RM 18 per week. Our services are
greatly suitable to the demand of students and office workers who busy at their work or unable
to shop every week. Besides that, our food material service will attract the housewife group
who need to purchase at a small amount of food materials and unwilling to travel though a
traffic jam to the supermarket. These consumers groups are currently being expanding and we
hope that more group will be added in the further.
The Alpha Food Delivery has several powerful strengths, weakness, opportunities and threats
in their service.
5.1 Strengths
AFD can build on several important strengths:
a) Better customers support.
We carry out the online ordering method though the mobile apps and official website.
By using these appliances, customers can make their own purchasing from the wide
variety of choices in the online menu. In addition, our service is not simply offer on the
food delivery category but also provide the food material delivery service to customers
especially the disabled or elderly who has trouble travel to supermarket.
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Our services always keep at the medium price compare to many competitors in the
food delivery market. The medium pricing will receive a huge response among the
medium-income groups such as office workers and the non-income groups such as
students and housewife.
c) Innovative service.
We provide the food materials delivery service which is a new idea in Malaysia’s
delivery market. This convenient has giving a great benefit to the customers who do not
have time or unable to shop every week.
5.2 Weakness
By waiting to enter the food delivery market, the AFD has learned some successful and
mistakes from its competitors. Thus, we have two main weakness:
5.3 Opportunities
AFD can take advantages of two major opportunities in the market:
a) Increasing internet users with smartphones.
In the wake of industrial revolution 4.0, people tend to process their daily matters by
using the digital method. This situation has giving a big opportunity to our service
where people can online order the food though our apps or website. Besides that,
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customers can view the menu of food or food materials though the app or web site.
5.4 Threats
AFD has meet some threats when it started in the market:
a) Increasing competition.
There are many companies are already established oneself in the Malaysia market with
food delivery service that offered some but not all the features and benefits provided by
AFD services. Therefore, we must take seriously planning and action to differentiate
from our competitors and value-added pricing to being competitive in the market.
In addition, building the AFD brand is an integrated part of our service strategy. A
creative and innovative brand will keep remind the consumers when there is a need to use this
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kind of services. Thus, we will display and show our logo in the apps and website obviously.
Besides that, we will design and produce our own packaging style with the feature of AFD logo
to differentiate us from our competitors and add the customer’s value.
Customers who want to find and use our services can obtain by our mobile apps in the
Android Play Store and Apple Store. Besides that, our official web site also provided the online
ordering services and information about our company. By using them, customers can directly
choose the items they want and their address in the apps or web site. Additionally, the way
AFD accesses product distribution channel is through a direct distribution channel. AFD will
ensure the customer's product reaches its predetermined location and time. This direct
distribution channel enables marketing activities to be efficiently and effectively.
6.3 Promotion
AFD communicates with our consumers and partners about our services information
in a variety of ways. Information about our services are deliver though the Internet, advertising
and other ways. Our promotional efforts is seek to differentiate AFD services from competitors
in the market. We promote our services through the online social media such as Facebook and
Instagram to facilitate the dissemination of product information to everyone. In addition, in
conjunction with Malaysia Day AFD will make special offers to customers for example "Buy
one get one FREE" and to customers who buy more than three will be given a coupon. Most
of the delivery companies carry out promotions in conjunction with the festive day, we too.
We will promote our services in the conjunction of festival day such as Malaysia Day and give
a special offer to our customers.
6.4 Price
The Alpha Food Delivery service is always keeping at the medium price to the
consumers. Our company is not focus on setting a high process to get a high profit from the
consumers. In addition, we also did not set a lowest price in the market because we want to
guarantee the quality of items and cover the transportation fees. Instead the value pricing is
reasonable and affordable to our customers, so that they will using this service more regularly
and frequently.
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Our pricing strategy is based on the price of item from the restaurant or supermarket
and the transportation fees from the destination to the hands of consumers. We will make some
contribution with several restaurants and supermarkets to get a lower price of the products to
maintain our medium pricing charge. Besides that, our transportation fee is count based on the
variable of kilometre. Each kilometre is charging RM 4 and our minimum delivery fee is also
RM 4. According to table 3, our prices are relatively low compare to most of the competitors
in the market who charging RM 5 per kilometre.
FERDINAND DE FRANCO
YONG KWOK KWAN
YALING
(Advertising Manager)
(Sales Manager)
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9.0 Financial Information
According to the table 2, we predict our level of sales will increasing steadily from RM
300000(2018), RM 600000(2019), RM 1000000(2020), RM 1200000(2021) to RM
1500000(2022) if all the strategies can be use efficiency. But, if we did not follow or execute
efficiency the strategies that had been outlined in the marketing plan, our sales level will only
contain in RM 200000(2018), RM 400000(2019), RM 600000(2020), RM 800000(2021) and
RM 1000000(2022) only.
In the next 5 years, we expect our market share can achieve on the medium place in the
food delivery market. According to pie 1, we will compete with other food delivery company
companies and try to obtain about 25% market share in the industry which contain with many
competitors such as Food Panda, Grab Food, Dah Makan, Mamam, Cooked, fast food
companies and other.
The “break even point” of AFD in 2018 is RM 160000 which mean AFD need to
complete at least 40000 kilometres delivery services. If AFD get less than RM 160000 which
mean that we will meet a deficit. The break even point of 2018 will remain the same until 2022
because we expert there is no a huge changes in the market.
However, the weakness in our financial are obvious which is insufficient operating
capital credit from bank. This problem will occur because we need a lot of spending in
advertising to promote our services to people. To solve these problems, we need to recognise
which project is unnecessary and should be phase out to economize our capital. Besides that,
we should find more investors to fund in our business to solve these problems.
5 states 2 areas
Service 7 states
(Peninsular and East (Kuala Lumpur and Klang
Areas (Peninsular Malaysia)
Malaysia) Valley)
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Urban Area Population
Kuching 570,407
Penang 1767,000
800
600
400
200
0
2018 2019 2020 2021 2022
YEARS
Figure 1
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Malaysia's Food Delivery Market Share
10 25
12
10
10
10
15
Figure 2
Sell Price
RM 4
(per km)
Break Even Point
Fixed Cost RM 100000 𝐹𝑖𝑥𝑒𝑑 𝐶𝑜𝑠𝑡
=
𝑆𝑒𝑙𝑙𝑖𝑛𝑔 𝑃𝑟𝑖𝑐𝑒 − 𝑉𝑎𝑟𝑖𝑎𝑏𝑙𝑒 𝐶𝑜𝑠𝑡
Variable Cost
RM 1.5
(per km)
Total Total
Fixed Cost Variable Cost
Order (unit) Cost Revenue
(RM) (RM)
(RM) (RM)
0 100000 0 100000 0
20000 100000 30000 130000 80000
40000 100000 60000 160000 160000
60000 100000 90000 190000 240000
80000 100000 120000 220000 320000
100000 100000 150000 250000 400000
120000 100000 180000 280000 480000
14
ALPHA FOOD DELIVERY CVP 2018
600000
500000
Profit
400000
RM
300000
160000
200000 Loss
100000
0
0 20000 40000 60000 80000 100000 120000
DELIVERY DISTANCES (KM)
Total Cost Total Revenue
Figure 3
RM10,000
RM10,000
RM30,000
RM10,000
RM10,000
RM30,000
RM10,000
Rental Salaries Utility fees Insurance Advertising campaigns Sales Promotions Other expenses
Figure 4
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11.0 References
Book:
Philip Kotler., Gary Armstrong., Swee Hoon Ang., Siew Meng Leong., et al. (2011).
Principles of Marketing: An Asian Perspective. (3th ed). Singapore: Pearson
Education South Asia Pte Lth.
Webpage:
Marrisa Chan. (June 28, 2017). Does Food Panda Malaysia Hike up Prices of Their Food?
Read This Before You Order. Retrieved from
https://cilisos.my/foodpandas-menu-prices-are-higher-than-the-actual-restaurant-
menu-prices-but-why/
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12.0 Appendices
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