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MKT 700| marketing plan for vavavoom ice cream shop| PREPARED FOR : DR FAIZAH BT ABD RAHIMPREPARED BY : NOR ISMAWARNI BT ISMAIL (2010130259)| 1. 0 EXECUTIVE SUMMARY The purpose of this marketing plan is to outline the parameters under which the idea of producing and marketing Vavavoom ice cream in the industry. Vavavoom ice cream is a new invented product that gives benefits to society. An evaluation will be made for Vavavoom Ice Cream Shop. The evaluation will incorporate a substantial amount of factors and various criteria, pertinent to the organizational assessment.
An external analysis and appraisal of current and future market segments will also be included. The present segmentation approach will be analysed and future possible market segments, with a light to future expansion. Concerning possible future expansion, the possible impact on the current market will also be assessed. Resultant opportunities and threats will consequently be evaluated. This evaluation will be undertaken mainly from a marketing perspective concerning the situation at hand, incorporating various marketing applications and related methodologies.
Consequently, the evaluation will lead to the discussion and assessment of a substantial number of marketing principles and the application thereof. The marketing environment, competitive and customer analysis will be undertaken. After this marketing analysis has been completed therefore, the actual answer concerning potential segments to be targeted regarding expansion will be forthcoming. All of product, price, promotions and place, could be considered as being part of the organizational resources strategy, target market and marketing mix, consisting of the actual marketing strategy. . 1. Products and Services Vavavoom ice cream is innovated from local Tongkat Ali coffee, Kacip Fatimah coffee Manjakani coffe and Spirulina tea which is very popular among the locals. Some people are reluctant to take tea or coffee, thus the idea to use the extract of Tongkat Ali, Kacip Fatimah, Manjakani and Spirulina foe ice cream comes into reality. It is a healthier ice cream that consists of no artificial coloring and sweetener which can cause allergic reaction such as abdominal pain, hyperactivity, hives, nasal congestion, kidney tumors and many more.
This product also used soy milk instead of dairy milk. Thus, this ice cream will not make consumer becoming fat, as soy milk is proven to have less fat and control calories in the body. Thus this product is suitable for current type of consumer who is more cautious about health. Besides that each and every flavors will bring a lot of benefits to customer. The benefits of each flavors will discussed below: 1. 1. 1Tongkat Ali benefits * Anti-Fever Effects In 1995 it was reported that the quassinoid from Tongkat Ali has an anti-fever effect. The quassiniod was two times more effective than aspirin. Anti-Cancer Researchers in America and Japan reported that some plant chemicals found in the quassinoids and alkaliods found in Tongkat Ali have an effect of inhibiting the growth of cancer cells in laboratory experiments, which included breast cancer cells, colon cancer cells and leukemia. * Anti-Oxidant Properties Studies conducted by the Forest Research Institute Maylasia (FRIM) and the Department of Science, University Kebangsaan Maylasia (UKM) discovered that Tongkat Ali contains SOD (Superoxide dismutase), an anti-oxidant enzyme. * Thermogenic/Energy
Tongkat Ali increases body’s metabolic rate and enhances blood circulation. These factors contribute to the heat-generating characteristics (thermogenic) of Tongkat Ali (Longjack). * Anti-Anxiety Effects Studies conducted on mice showed that Tongkat Ali has an anxiolytic effect. * Tongkat Ali has a direct effect on the testosterone level or the testosterone tone in the human body. Since testosterone drives sexual performance, Tongkat Ali has its stake in man’s sexual drive. But that does not necessarily mean that Tongkat Ali is not effective on women. 1. 1. 2.
Kacip Fatimah benefits * Anti-Ageing Agent UNIVERSITI Teknologi Malaysia (UTM) and South Korean researchers have found an anti-ageing agent in the traditional herb kacip fatimah which stimulates the production of collagen and acts as an anti-oxidant. * Healthy Female Reproductive System Kacip Fatimah is traditionally used to maintain a healthy female reproductive system, to help tighten and lubricate, and to enhance sexual function. Oak Gall is rich in antioxidants and is traditionally used as postpartum care to tighten the reproductive system. * Ease Menopausal Smptoms
Kacip Fatimah is rich in phytoestrogen and isoflavones, that may ease menopausal symptoms. 1. 1. 3. Manjakani benefits: * Be Young ??? The anti-oxidants in manjakani reduce the process of aging * Diabetes Prevention ??? Gallic Acid can help in preventing diabetes and asthma. * Healing tissues in vagina ??? Tannins in manjakani has the properties of tightening the vagina muscle and helps reverse loss of elasticity caused by ageing, hormonal changes and childbirth. * Healing external tissues ??? Astringent in manjakani also aids in healing external tissue damage after childbirth. Firmer and smoother skins ??? Astringent in manjakani help for a smoother skin and also prevent acne. * Breast treatment ??? Due to elasticity properties in manjakani in treating muscles, therefore the habit of consuming manjakani can help improve the breast elasticity. * Teeth and bones ??? Calcium in manjakani helps to strengthen teeth and bones. * Rich in food vitamins ??? Due to fibres which contains in manjakani, it helps in preventing constipation. Vitamins, minerals, carbohydrate, and protein are also beneficial for a healthy life style. 1. 1. 4 Spirulina benefits: * Spirulina is the richest beta carotene food,
With a full spectrum of ten mixed carotenoids. About half are orange carotenes: alpha, beta and gamma and half are yellow xanthophylls. They work synergistically at different sites in our body to enhance antioxidant protection * Spirulina is an ideal anti-aging food Concentrated nutrient value easily digested and loaded with antioxidants. Beta carotene is good for healthy eyes and vision. Spirulina beta carotene is ten times more concentrated than carrots. Spirulina is the highest source of B-12, essential for healthy nerves and tissue, especially for vegetarians. Healthy Dieting with Spirulina About 60% of spirulina’s dry weight is protein, which is essential for growth and cell regeneration. It is a good replacement for fatty and cholesterol-rich meat and dairy products in one’s diet. Every 10 grams of spirulina can supply up to 70% of the minimum daily requirements for iron, and about three to four times of minimum daily requirements for vitamins A (in the form of beta carotene), B complex, D,and K. By itself, it does not contain vitamin C, but it helps maintain this vitamin’s potency.
Vavavoom Ice Cream Shop will serve several flavours as mentioned above as well as many flavors/combinations of smoothies. Within the Vavavoom Ice Cream Shop’s facility, the company will always properly handle the products, which have higher incidences of spoilage. The Owner will ensure, at all times, the company’s facility is in compliance with all health and food safety laws. Management intends to further the support for the business by franchising of ice cream, ice, and other food products to local . This will allow the business to further its ties to the local economy.
The main items for sale will be hand dipped ice cream and yogurt cups/cones, sundaes finished with a variety of toppings such as hot fudge, caramel, butterscotch or fruit, banana splits shakes malts and ice cream sodas 1. 2 Company and Financing Summary 1. 2. 1 Registered Name and Corporate Structure Vavavoom Ice Cream Shop, Inc. The Company is registered as a corporation under Suruhanjaya Syarikat Malaysia (SSM). This company is consider as small and medium enterprise (SME). 1. 2. 2 Required Funds At this time, Vavavoom the Ice Cream Shop requires $100,000 of debt funds.
Loan will be applied from Majlis Amanah Rakyat (MARA). Below is a breakdown of how these funds will be used: 1. 3 Investor Equity The company is not seeking an investment from a third party at this time. 1. 4 Management Equity Nor Ismawarni bt Ismail owns 100% of the Vavavoom Ice Cream Shop, Inc. 1. 5 Exit Strategy If the business is very successful, the company may seek to sell the business to a third party for a significant earnings multiple. Most likely, the company will hire a qualified business broker to sell the business on behalf of the Vavavoom Ice Cream Shop.
Based on historical numbers, the business could fetch a sales premium of up to 4 times earnings. * 2. 0 STRATEGIC PLAN AND FOCUS 2. 1 Mission Statement The mission of Vavavoom Ice Cream are as follows: “To deliver a quality product in a consistent, courteous and timely manner in order to have the customer return again for another satisfying, flavoursome treat, while at the same time earning a reasonable return on the initial investment” The principals believe that for an company to be successful, the company must ensure that the customer continues to return to purchase the product, again and again.
One way to ensure repeat business is to provide consistency in both the product and service. Vavavoom’s product speaks for itself; the service of our Shoppe provides will be a function of training, evaluation, and retraining in order to deliver it courteously and in a timely manner. In order to earn a reasonable return on the investment, along with the ability to repay debt, strict cost-control measures will be implemented.
These measures will include, among others, proper and prudent purchasing practices, maximization of product distribution through strict adherence to weights, amounts and recipes (portion control), effective utilization of personnel, and the constant search for ways to reduce the cost of sales of our products without sacrificing quality and service. 2. 2 Goals and Objectives * Non – Financial Vavavoom Ice cream is focused to achieve the highest level of customer satisfaction in relation to both the product and service provided by the company.
This is further achieved by ensuring that the highest quality standards are adopted on all levels of manufacturing and production, for guaranteed 100% customer satisfaction when consuming the product. The company is committed to further enhancing health awareness amongst Malaysian. * Financial The company expects a strong rate of growth at the start of operations. Below are the expected financials over the next three years. Proforma Profit and Loss 2. 3 Core Competencies / Competitive Advantage Vavavoom ice cream is different from any other ice-cream.
Vavavoom is one of a kind ice cream in the industry as the product varies from other brand. This product is consider as healthy product as it consists of no artificial coloring, contains natural ingredients and offer new type of flavours (Tongkat Ali, Kacip Fatimah, Manjakani and Spirulina) which other competitors did not serve. Most important is, each of the flavours offered contains its own strength and benefits towards consumers. This product also used soy milk instead of dairy milk. Thus, this ice cream will not make consumer becoming fat. Soy milk is proven to have less fat and control calories in the body. . 0 SITUATIONAL ANALYSIS 3. 1 SWOT Analysis * Strengths * This product is one of a kind and offered new variety of healthy flavours. * Healthier ice cream which brings a lot of benefits to consumer. * Consist of no artificial colouring and sweetener * Innovative product such as new flavours, used soy milk instead of dairy milk. Soy milk is proven to have less fat and control calories in the body. * Weaknesses * Soy milk- ice cream tends to be less smooth & freezes harder than ice cream made with cow milk. * Considering expansion, with regards seeking certain market segments.
If these market segments are not targeted appropriately, then this may turn out to be an unsuccessful venture, when considering market impact. * Opportunity * Everybody loves ice cream. Thus it is easier to gain consumer awareness * A lot of study shows that people now days (gen y) are more health conscious. * The Government’s policies with regards healthy eating and obesity as well as perhaps restricting advertising concerning “junk food”, has played a major role with possible future sales. * Threat * Well known competitor who has captured consumer’s heart.
As example Walls, Mat Kool, Baskin Robin and many more. * Customer acceptance is also a major concern to company as they used to cow milks instead of soy milks. 3. 2 Political Analysis The Government’s policies with regards healthy eating and obesity as well as perhaps restricting advertising concerning “junk food”, has played a major role with possible future sales, as well as actual ice cream content. Alternatives were also offered by the competition. 3. 3 Economic Analysis At some point in time a realisation occurred, that ice cream sales were mostly governed by the weather and were consequently seasonal.
This was a big problem as staff employed on a seasonal basis, were a big cost element to the company. Once again it can be clearly seen that a lack of actual control existed, when considering this uncontrollable economic situation. 3. 4 Social Analysis Certain trends seemed to be emerging at the time, with regards a new and healthy lifestyle consumer approach. Consumers sought healthier foods, with a lower fat content, leading to an overall health improvement. While in prior years a minimum fat content of five and a half percent within ice cream was sought, this has changed dramatically. Thus provide a good ondition for the company to penetrate the market. 3. 5Technological Analysis The ice cream industry really came into being around the year nineteen twenty-six. This was due to the technological factor concerning the development of a viable process freezer. This in effect permitted mass production of this product as such, giving rise to the possibility of an actual ice cream industry. 3. 5 Industry Analysis Due to rising disposable incomes, ice cream sales are growing steadily in Malaysia. In particular, ice cream parlours, such as Hagen-Dazs, which serve the more affluent and sophisticated consumers, are fast gaining popularity.
Malaysians are catching up on the lifestyle experience of enjoying ice cream in trendy cafes. Meanwhile, manufacturers are focusing on middle-income consumers for bulk ice cream and multipack ice cream, as seen in the proliferation of low-end offers as example Walls. The coffee and non-alcoholic retail shop industry has experienced a healthy level of growth over the past decade. The Malaysia Economic Census estimates that there are over 100,000 individual cafes and specialty health food restaurants in Malaysia. This number is expected to increase at a rate of 5% per annum.
While the growth rate of the number of establishments has increased 5% per year, the revenues generated per establishment have increased at a rate of 10% per year. 3. 6 Customer Profile As the business offers an expansive menu of ice cream and smoothies, it is difficult to categorize the average customer of the Ice Cream as many people, of all walks of life, enjoy the products offered by the company. However, Management expects that the average customer will be middle to upper middle class man or woman living in the Company’s target market. The target age will be around 25 ??? 40 years old.
This product is meant for adult as the flavours and benefits offered by the product best suits customer of this relevant age. 3. 6. 1 External Customer Analysis Concerning ice cream sales, it seems that in previous years, the customer has enjoyed purchasing really good tasting, “full cream” ice cream. This has incorporated relatively high fat content. It has possibly also included desired traditional manufacturing, branding and sales methodologies, within Malaysia. Health and health care products seem have not featured highly on the agenda of the customer. Certain trends however, have begun to create the opposite effect.
Concerning the changed political environment, it can be seen that this uncontrollable variable may have possibly changed segmentation requirements, leading one to have to target the “healthier lifestyle” market instead. It seems that the current segmentation approach of the high fat food market may have become outdated. Also, consumer psychographics segmentation could occur, which could include the low fat element as a possible means of purity and satisfaction. It seems that a “gap in the market” would possibly exist, which should be utilised for segmentation purposes.
Finally, potential segments of the market to be targeted, should include the “healthier lifestyle” market segment and the low fat and purity content market segment. This should be accomplished, via reference to the already established and credible, Vavavoom’s Ice Cream Logo. 3. 7 Competitive Analysis There are many ice cream manufactures in Malaysia. But there are four close competitors which can be considered as threat to the company. They are Walls, Nestle, Hagen-Dazs, and Baskin Robin. However, Vavavoom ice cream is consider as different from any of the competitor as none of them offered the flavours that Vavavoom ice cream offer.
The price of Vavavoom ice cream is much lower compared to Hagen-Dazs and Baskin Robin but serve better quality and benefits to consumers. 3. 8 Environment analysis The climate in Malaysia is tropical with high temperatures and high humidity throughout the year. Daytime temperatures rise above 30??C (86??F) year-round. Thus sales of Vavavoom ice cream will be maintain and highly demanded in this country. The country is affected by the south-west monsoon from May to September and the northeast monsoon from November to March, and different parts of the country have their dry and wet seasons at different times of year.
It makes it easy for the company to make promotional activities as we can concentrate one place at a time. As example, on the west coast, the wettest months are May to October, while on the east coast; the wettest months are September to December. Kuala Lumpur is wettest from March to April and September to November, while Malaysian Borneo sees its heaviest rainfall between November and February and dry weather is June and July on the east coast, January and February on the west coast, April in Sabah and June to July in Sarawak.
So the promotional campaign will be more on dry season following the months on which each part is on. 4. 0 Marketing Program Strategy and Tactics Vavavoom Ice Cream Shop intends to maintain an extensive marketing campaign that will ensure maximum visibility for the business in its targeted market. Below is an overview of the marketing strategies and objectives of the Vavavoom Ice Cream Shop. 4. 1 Marketing Objectives * Implement a local campaign with the Company’s targeted market via the use of flyers, local newspaper advertisements, and word of mouth. Build a large word-of-mouth referral network through existing customer base. * Establish connections with local suppliers and vendors. 4. 2 Marketing Strategies Retail marketing will be the most difficult portion of the marketing strategy. This is because one of the essential elements to reaching a retail food and beverage purchasing audience is that the company must build a brand affinity with the customer. Vavavoom Ice Cream Shop will maintain a moderate level of traditional print and media advertising among local channels.
These promotional campaigns will provide customers with coupons and special savings deals that will entice consumers to come to the company’s location. Prior to opening the company’s location, Management intends to send mailing and circulars to local residents within the Klang area so that the business has instant traffic and visibility upon its grand opening. As stated earlier, the business will also heavily benefit from the high visibility location which the company is currently sourcing. Management anticipates that a vast majority of the company’s revenues will come from passers-by and shoppers.
The purchase of hand-dipped ice cream and related products is basically an impulse-type purchase by a consumer relating to one of the following stimuli: * Passing by the Shoppe on the way to another destination, * Visual contact with the Shoppe’s signs, * Observing someone else consuming one of the Shoppe’s products, * The final course (dessert) after a meal has been consumed elsewhere. 4. 3 Product In terms of the product offered, as has been discussed, this has been a highly valued item, appealing strongly towards the target market.
Its appeal regarding “traditional values” including purity and friendliness and consequent highly valued brand image, have positioned the product accordingly. Also, when consequently referring to consumer psychographics the psychological benefits on offer to the consumer have been substantial. The product is also available with diversification having occurred, smoothies, hand dipped ice cream and yogurt cups/cones, sundaes and many more. Once again competitive advantage may be seen via product diversification, as well as purchase availability and the negation of seasonal unpredictability, leading to increased sales. . 4 Price When considering price, due to this superior product being offered via its highly effective brand image displaying superior product features, price is simply interpreted as being worthy of the product on offer. Also, the substantial volume variety on offer concerning sales, created a substantial price variety for the customer. As the extract for Tongkat Ali, Kacip Fatimah, Manjakani and Spirulina is quite high, thus it will affect the price of the product. However, the suggested price of RM 3. 99 per scoop is still considered as low and affordable to the target customers.
A great competitive advantage can be seen here, as the perceived price value is worthy of product offer. 4. 5 Promotions As stated before, the climate in Malaysia The climate in Malaysia is tropical with high temperatures and high humidity throughout the year. Daytime temperatures rise above 30??C (86??F) year-round. Different parts of the country have their dry and wet seasons at different times of year. It makes it easy for the company to make promotional activities as we can concentrate one place at a time.
As example, on the west coast, the wettest months are May to October, while on the east coast; the wettest months are September to December. Kuala Lumpur is wettest from March to April and September to November, while Malaysian Borneo sees its heaviest rainfall between November and February and dry weather is June and July on the east coast, January and February on the west coast, April in Sabah and June to July in Sarawak. So the promotional campaign will be more on dry season following the months on which each part is on. 4. 6 Place
Production is available at an adequate factory, generating wholesale market sales and increased profits. Vavavoom Ice Cream Shop also supplies restaurants, hotels, shops and traditional ice cream vendors, enjoying a substantial amount of brand awareness, leading to the possibility of increased retailer outlets. Competitive advantage can clearly be seen with regards brand awareness and strong brand image. Further competitive advantage exists with wholesale market sales and resultant increased profits. 4. 7 Porter’s Five Forces Model
At this point in time, Porter’s Five Forces Model will be utilised, with regards a finalized, external competitive analysis: The ice cream offered by Vavavoom Ice Cream Company could be seen as displaying competitive advantage in a number of different ways: It could be seen as comprising of “traditional values” and “purity”, displaying high equity. Consumer psychological satisfaction as well as diversification also seems to feature as highly positive attributes. Wholesale market sales also feature, comprising of substantial market output.
The product is also “priced adequately”, offering substantial price variety. Considering Porter’s Five Forces Model as well as the above: * While considering the threat of entrants into the marketplace: This will occur once again, while considering Vavavoom Ice Cream Company, seen as displaying competitive advantage in the number of different ways described. Once again a real threat occurs, as this newly created health food market referring to the low content fat requirements within ice cream and the attempted negation of junk foods, may create a new target market within the food industry.
This new target market referring to new market segments will create a “gap in the market. “New entrants will ultimately be attracted to new sales possibilities. * While considering barriers to entry: Concerning government policy regarding barriers to entry, it seems as if there are “no barriers”, since the government has actually encouraged this new healthy lifestyle approach. Product diversification, seems to be a solution, which could lead to differentiation and ultimately once more to competitive advantage.
Through adequate diversification, one could even maintain, or possibly even improve product price, relative to the competition. * While considering bargaining power of buyers: Much bargaining leverage could occur, concerning buyers, with regards this new food and ice cream market. This would be the case especially concerning the availability of substitutes, concerning the ice cream market as a whole. This would result in decreased sales for Vavavoom Ice Cream Company. * While concerning bargaining power of suppliers:
With regards this possibly newly acquired health market, if supplier concentration is of a sufficiently high enough volume, this will once again lead to decreased competitive advantage with Vavavoom’s Ice Cream. This is unless further differentiation occurs with regards product range and ice cream modification, as regards a maximum of two percent fat content. * While concerning threat of substitute products: One of the competitors, Hagen Dazs introduces new flavour such as ginger and antioxidants coffee that contains their benefits similar to Vavavoom products.
Moreover, if Hagen Dazs as well as other competitors sell their product at a lower price, competitive advantage loss could actually occur with substantial certainty. 5. 0 FINANCIAL DATA AND BUDGET 5. 1 Underlying Assumptions * The Ice Cream Shop will have an annual revenue growth rate of 10% per year. * The Owner will acquire $100,000 of debt funds to develop the business. * The loan will have a 10 year term with a 9% interest rate. 5. 3 Source of Funds 5. 4 Profit and Loss Statement 5. 5 Cash Flow Analysis 5. 6 Balance Sheet 5. 7 General Assumptions 5. Business Ratios 5. 9 Expanded Profit and Loss Statements 5. 9. 1 Expanded Profit and Loss Statements (First Year) 5. 9. 2 Expanded Profit and Loss Statements (Second Year) 5. 9. 3 Expanded Profit and Loss Statements (Third Year) REFERENCE Business Resource Software, Inc. (2011) Marketing Plan Outline http://www. businessplans. org/market. html Columbus Travel Media (2011). Malaysia Whether and Climate http://www. worldtravelguide. net/malaysia/weather Free Ice Cream Shop Business Plan For Raising Capital from Investors, Banks http://www. thefinanceresource. om/free_business_plans/free_ice_cream_shop_business_plan. aspx Jeanna Bryner (2009). Healthy ice cream? Scientists set out to create it Probiotics, antioxidants to be added to the fat- and calorie-filled treat http://www. msnbc. msn. com/id/33838750/ns/health-diet_and_nutrition Mr Ghost (2011). The Health Benefits of Tongkat Ali http://trulytimes. com/relationships-articles/health-benefits-tongkat-ali/37457 Nancy (2007). The herbs for love. The Miracles of Manjakani http://www. herbsforlove. com/hfl/articles/The%20Miracles%20of%20Manjakan Richard Wilson (2009). Herbal benefits and resources.
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