The main objectives of this marketing plan is to evaluate the possibilities for May Soap to enter into the new market- Philippine. There are three possible market entry strategies, which are indirect exporting, direct exporting and joint venture. Direct exporting is more favourable as it provides greater control and this is important for expanding the business in future.
Most-Likely, for Lam Soon to enter into a new market like Philippine, may incur loss of around RM 25,000 for first year as the result of high advertising cost to create awareness for our product. However, this condition will not last long as Lam Soon will be able to increase the market shares year by year thus increase the sales revenue. The projected market shares for year one will be 10% and followed by 12% in year two and 14% in year three.
The projected investment for first year will be estimated about RM 144,000. This includes operating expense and cost of good sold. However, we are able to get back more than 80% of the investment from the sales revenue in first year.
The investment required for second year will be around RM 126,800. In year two, we could get back the full amount of investment and gain more than 10% of the investment.
In year three, due to the familiarity of the Philippine environment, the increase of market shares and cut down of advertising cost, return on investment will be more than 30%. Returns are expected to grow year by year.
However, the future is hardly predicted. There are two other scenarios which are “Best-Case” scenario and “Worst-Case Scenario”. “Best-Case” scenario reflects the change of future that benefits our company. On the other hand, the “Worst-Case” scenario reflects the change of future which brings negative effects to our company.
Our group has chosen Lam Soon Edible Oils Sdn. Bhd for our international marketing assignment. With four decades of experience and expertise in the area of soap manufacturing has made Lam Soon a key player in the Malaysia soap market. Today, their product range caters to the different requirements and preferences of today’s consumers, which includes beauty soap, fruity-scented soap, medicated soap, sports soap and even soap manufactured specifically for our Muslim consumers.
With a history of over half century and a reputation for integrity, Lam Soon value long-term business partnership with their highly esteemed export customers. Lam Soon will utilise its experience as one of the most respected marketers and distributors of Fast Moving Consumer Goods (FCMG) to effectively communicate the product’s benefits to consumers and enhance merchandizing with the trade customers.
Out of the range of products of Lam Soon, we have decided to concern on May beauty soap. May is a classic beauty soap made from natural ingredients and mood enhancing fragrances for today’s modern consumer. It pampers not just the skin, but the sense as well, offering outer beauty combined with inner-well being.
The export destination will be Philippine. Philippine has more than 80,000,000 populations and within the Asia-Pacific. As Lam Soon has not explored and export into the Philippine market, it is strongly recommended that Lam Soon choose Philippine as the next target market.
The purpose of this marketing plan is to analyze the Philippine market and the conditions of Lam Soon before entering into the market. Moreover, this marketing plan provides different marketing entry modes and strategies. Nevertheless, the later part of this marketing plan will include expected outcomes and the descriptions of the specific actions that are to be taken.
3.0 Situation Analysis
3.1 Business Environment
In order to enter the international marketing, a company should consider all the factors of business environment such as the economic conditions, social and cultural factors, political or legal factors, infrastructure,...