John Lai Professor/Mentor

about.me/cleanie

Population Density

Malaysia: 86.44/km² H.K.: 6540/km²

Age Structure

15-64:65.4%

0-14:29.6%

65+: 5%

Religions

Buddism:19.2%

Christian: 9.1%

Hindu: 6.3%

Others:4.9%

Muslim:60.4%

GDP per Capita

Malaysia managed to JUMP 4 places from 59 in 1970 to 54 in 2009 thanks to the oil and gas and oil palm. You can try to guess Malaysia's ranking without these commodities.

http://chanky50.blogspot.com/2010/07/per-capita-gdp-ranking.html

Official Currency

The Malaysia Ringgit

The Malaysian ringgit (plural: ringgit; currency code MYR; formerly the Malaysian dollar) is the currency of Malaysia. It is divided into 100 sen (cents). The ringgit is issued by the Bank Negara Malaysia.

What can 8RM buy?

Why Cleanie?

• Clean

• Caring

• Cute

• Kind

• Easy to remember

• Easy to spread

Mission & Vision

• Help people realize the importance of hand hygiene, thus to set up a concept of healthy lifestyle.

Why outsourcing?

• Levitate financial burden

• Technological Constraints

• Convenience to start the business Malaysian firms take longer times to obtain permits. 22.38 days to obtain an operating license,16.21 for the region.

• Regional Integration: ACFTA

• Result: Indirect Exporting with ETC

• Manufacturer:

• instant hand sanitizer manufacturer

• 8-year experience

• ISO9001:2008 international factory quality certifying system

• Flexible production scheme.

Target Customer

• Age:12-50, Middle class

• White collars, Students, Travelers

• Muslims

Care about health

Passionate about life

And the society

Competitor

Product Manufacturer Quantity

(ml) Price(RM) Δ/50ml

Dettol Reckitt Benckiser 50 8 0.01

Cool & Cool Unknown Origin 60 8.5 -0.91

Cuticura Cuticura Labs, Corp 100 18 1.01

Competitor

S.W.O.T

Strength Alcohol free Cost leadership

Weaknesses Lack of experience & market power Low brand awareness Low control over production quality

Opportunities Supported by the government Demand for sanitizer Undiscovered Market ( Muslim )

Threats Easy to duplicate

Product

• Attributes:

• 1st feature: able to kill 99.99% of most common germs within seconds, gentle, no harsh chemicals.

• 2nd : Convenient and portable.

• 3rd : Alcohol free.

Place

• Three major cities Kuala Lumpur Johor Bahru Penang • Surroundings • Indirect selling: 7-eleven, Watson’s, GNC, Jusco, Whole Foods, Tesco, Econsave, Giant, The Store, Carrefour, Mark & Spencer etc.

Kuala Lumpur

Penang

Johor Bahru

Price

• What we will use is:

Penetrating Pricing

Because:

• Consumers’ demand is highly price elastic

• Substantial economies of scale are available

• Seize the mass market → be the standard!!

Price

• Benefits:

• Help diffuse our product & a surprise to our

competitors

• A barrier to stop new competitors

• Quick sale & high turnover

• Pressure of being better!!

Promotion

• Advertising approach: • TV

• Radio

• Internet

• Print

• Billboard

Promotion

• Advertising Style: • Factual style

• Imaginative

• Comparative

• Emotional

Promotion

• Events: • Public service activity

To Promotes health

• E.g.: Yoga, Marathon

Food nutrition talk

Control

Why?

Control

• Sales and cost control • Quarterly Market share analysis

3%up in first three years,

1%up in the following years.

• Semiannual Sales analysis

Control

• Sales and cost control • Sales per thousand customers, per factory, by

segment (Double Check!)

• Market reaction/acceptance to pricing polices

• →Budget control→笑脸

Control

• Quality control • Regular Quality control (Double Random Check)

→ A high significance level !

• Continuous Marketing research

Control

• Reputation & Public relation control

• Customer feedback through satisfaction surveys

• Location of buyers and potential buyers

• Performance of any promotional activities

• Public Relation Control

Control

• Logistic

• RFID

Malaysia Warehouse

Factory

Objectives

• Short terms objectives along product life cycle:

• Sales

• Brand & Product awareness

• Placement

• Market share

Objectives

• Long terms objectives along product life cycle:

• Introduction

• Growth

• Maturity

• Saturation 1 2 3 4 5 6 7 8

Budget

• Profit matrix

Category Price $/unit

Unit cost 0.5

Tariff (S):20% markup 0.1

International Shipping cost: $25/m³= $25/1000000 cm³

1000000/25840=38 cartons = 912 units

Unit shipping cost (China to Malaysia): $25/912=

0.027

Domestic Shipping cost: $40/m³= 1000000 cm³

1000000/25840=38 cartons = 912 units

Unit shipping cost (China to Malaysia): $40/912=

0.044

Promotion cost (TV commercial, online advertising) 0.3

External Retail Cost 0.971

Profit projection 1st Year 2nd Year 3rd Year 4th Year 5th Year

Quantity 563,655 676,386 811,664 1,014,579 1,268,224

Sales Revenue (in $) 1,493,686 1,792,424 2,150,909 2,688,636 3,360,795

Literature

Internet Channel 50,000 25,000 25,000 25,000 25,000

Posters 50,000 25,000 25,000 25,000 25,000

Gifts 200,000 100,000 100,000 100,000 100,000

Mass Promotion

TV Commercial 1,000,000 500,000 800,000 300,000 200,000

Sign Boards 100,000 100,000 50,000 50,000 50,000

News Paper Add 200,000 500,000 100,000 100,000 100,000

Factory Overheads 547,309 656,771 788,125 985,157 1,231,446

Misc.(PRexpense included) 250,000 250,000 250,000 250,000 250,000

Total Cost 2,397,309 2,156,771 2,138,125 1,835,157 1,981,446

Gross. Profit/Loss -903,623 -364,347 12,783 853,479 1,379,349

Taxes 0 0 -3,196 -213,370 -344,837

Net Profit/Loss -903,623 -364,347 9,587 640,109 1,034,512

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