MKTG 3010 Marketing Principles Marketing Plan

MARKETING PLAN
PREPARED FOR:
MKTG 3010, Marketing Principles, Section 4
Dr. Tahir Jan
PREPARED BY:
SARA HUSNA BINTI HAMIDON (1514322) – GROUP LEADER
NUR ATIKAH BINTI ROSLAN (1328230)
HANIS SAKINAH BINTI RAMLI (1226500)
NUR IZZUANA BINTI ROSLAN (1416102)
MUHAMMAD IQBAL BIN AZAKI (1425185)
MOHD SAFWAN BIN ROZLAN (1515593)
Date of Submission : 15th
December 2016

TABLE OF CONTENT
NO. CONTENT PAGE
1.0 Executive summary 3
2.0 Background of company and mission and vision of
company
3-4
3.0 Environmental analysis 4-7
4.0 Swot analysis 8-9
5.0 Marketing objectives 9
6.0 Marketing strategies 9-11
7.0 Financial projections 11-16
8.0 Marketing Implementation 16-17
9.0 Evaluation and Control 17-18
10.0 List of References 18
11.0 Appendix 18

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1.0 EXECUTIVE SUMMARY
With over 9 million active paying customers each year, shoe industry has evolved in
many directions in order to cope with the demand and satisfaction of customers. Major
players such as Jimmy Choo, Gucci, Clarks and many more have dominated the market in
various types of shoes namely heels, stiletto, ankle straps, wedges to name a few. Although
they provide each kind for any given occasion, we wish we had more space in our wardrobe
just to store all of them. This is when Elves and The Shoemaker come into play. We make
changing shoes easy as we allow you to change the straps. This will not only save you some
space, but it is also way cheaper than the conventional ways. Within this marketing plan, we
will talk in details on how does the company penetrate the market by analyzing the
environment, SWOT, marketing strategies and financial projections.
2.0 BACKGROUND OF COMPANY AND MISSION AND VISION OF COMPANY
2.1 Company Background
Elves and the Shoemaker is a shoes company that will be established on January 2017
and going to be operated in International Islamic University Malaysia (IIUM) to cater the
needs and demands in IIUM and also outside of campus. This company produces shoes with
changeable straps which can be designed according to customer’s taste and preferences to fit
in any type of occasions. There are six partners who plan to manage this business and all
capitals are contributed equally by each partners amounted to a sum of RM1500. Partners
will also be managers for this business, we have one chief executive officer, one finance
manager, one sales manager, one marketing manager, one production manager and one
product development manager.
2.2 Vision and Mission
Every company have vision and mission to help it to be on track in order to achieve
organizational goals and objectives. Our vision is, first, to be well known as fashionable and
comfortable sandals in the market of shoes industry. Not a lot of local brands are recognized
for creating new trends in fashion. Hence, we aim for people to talk and share about the
uniqueness of our shoes which will make our company have a good stand in Malaysia. For
example, everyone knows Bata company, so we want to compete and get to be known that
much as well. Lastly, another vision for long term, we want to be the trendsetter for shoes
fashion.

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Besides setting the vision of Elves company, we sat down and brainstorm about the
missions of this company and objectives of making and selling shoes. We have decided to
ensure customer satisfaction as our priority by providing them wearable and suitable shoes
for any events that they attend. Elves also feel the needs to fulfill the desire of woman to have
different styles of shoes at a reasonable price where for just one shoe, customer can get up to
12 different patterns.
Sales and marketing managers mission is to train staffs in order to reach sales target and
boost sales especially during seasonal time. Promotion and marketing department aims to
make customer happy so that they’ll come back because they will love our product and
customer services.
3.0 ENVIRONMENTAL ANALYSIS.
3.1 Marketing Environment
3.1.1 Competitive force
When we talk about shoes, the market competition for this product is very high since
shoes are actually each individual’s necessity that are worn daily. It is in the same category as
clothing or garments. It is not something that people buy everyday but still we must
acknowledge that shoes have a huge impact in fashion. One of the well-known shoe store in
Malaysia is Bata. Bata is a leading footwear manufacturer and marketer in Malaysia and
operates a retail chain of more than 250 stores. We see that Bata is one competition that can’t
be ignored, as well as other famous stores, whether local or international. However, despite
the competition, we believe that the uniqueness in our product may actually stand on the
same level as well-known brand.
3.1.2 Economic force
As we can see that our economic condition now is not very convincing. Ringgit
Malaysia has gradually depreciated. Currently, A dollar worth MYR4.45 (as on 6/12/2016).
This somehow means that purchasing power has decreased ; MYR 100 can buy fewer things
than before. It is in line with the concept of time value of money. This condition can create
awareness in the people. They will tend to be more careful in their spending. Therefore,
luxury products will not be at peak at this time. However necessity goods are not affected
since they are needed in daily life.

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3.1.3 Legal and regulatory force
Legal and regulatory force of shoe industry is not a major concern. It is just the same
as other industries ; the procedure of creating a business, tax etc. One major point need to be
stressed out is that if the business operates online, we still need to register this business to
Suruhanjaya Syarikat Malaysia before operating online. This actually creates barriers to
business persons that operates online.
3.1.4 Political force
Political force is actually very much related to legal. Changes in political structure or
policy will most likely effects other things ; economic, socio-cultural, legal etc. For example
in Malaysia, the government had imposed tax bracket of 6% (GST) for all products. This
effects the economy.
3.1.5 Technological force
It is inevitable that technology will keep on changing in a blink of an eye. A
technological innovation can have a sudden and dramatic effect on the environment of a firm.
First, technological developments can significantly alter the demand for an organization or
industry's products or services. Technological change can decimate existing businesses and
even entire industries, since its shifts demand from one product to another. Moreover,
changes in technology can affect a firm's operations as well its products and services. These
changes might affect processing methods, raw materials, and service delivery. In international
business, one country's use of new technological developments can make another country's
products overpriced and non-competitive. Business that can adapt to technological changes
can be considered ‘winner’. The use of technologies for example social media, also lead to
the rising of online businesses without having premise to operate business activities
3.1.6 Socio-cultural force
It is important to know what makes up community or citizen of a particular country. It
allows marketers to market the right products to the right person rather than spending money
to wrong target person. In Malaysia particularly, there are three main races ; Malay, Chinese
and India which they represents the majority of races other than Singh, natives etc. In
correspond with that, in terms of fashion, they actually go on the same track which makes no
significant differences (except for cultural or traditional outfit). Basically, all people are

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becoming more and more concern about fashion and somehow, the western fashion had
easily influenced in local surroundings.
3.2 Target Market
3.2.1 Geographic and Demographic - Malaysian women
Firstly, we are not just targeting IIUM community, but the whole Malaysian women
since we want to have bigger profit. In addition, because of the fact that we are mostly
operating the business online, and that we promote using social media such as Facebook and
Instagram, we can easily reach the whole Malaysian women whom we believe almost
everyone has Facebook, Twitter or Instagram account. We find out that Facebook is currently
the most visited social media website in Malaysia as of 2014. In total, there are 10.4 million
Facebook users in Malaysia as in Q2 2014. For twitter, there are about 3.5 million users and a
whopping 162.4 million tweets posted up to the month of February 2014. 21.8% of these
users, approximately 760 thousand Twitter users, are active while the majority 78.2%, which
is 2.7 million of the entire Malaysian Twitter population, are inactive. Instagram 5,517,954
users in Malaysia as of January 2015. Based those amounts, disposing the percentage of men
and youngsters which are out of the league for women shoe product, we still have a
tremendous amount of potential customers.1
3.2.2 Demographic - Women age between 15-35
We target this age range because we believe that starting from the age of 15, girls
have already develop their sense of fashion. Generally called “trend follower”. However, we
are not expecting them to give a huge impact to our sales simply because of the level of
income. They might be having difficulties in collecting money. But we believe nowadays,
kids can easily get things that they want. On the other hand, women ranging from 20-35 years,
normally have their income which they can spend.
1
http://blog.malaysia-asia.my/2015/03/malaysia-social-media-statistics-2014.html

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3.2.3 Psychographic - Economic-conscious women
Basically, the uniqueness of our product will attract people who have awareness of the
current economic condition. During economic downside, people will try to save money as
they can rather than spending. However, it is undeniable that the shopping instinct can not be
disposed. So our product basically fit those concepts. With one shoe, consumer can actually
get a number of looks if they purchase the different color and style of strap. They can change
our product’s look based on the occasion that they are attending ; casual wear, formal wear,
high tea etc. So at the end of the day, people will save a lot of money by having one
changeable-look shoe rather than buying huge pairs of shoe. All you have to spend is just a
small amount to buy straps.
3.3 Current Marketing Objectives and Performance
Currently, Elves and The Shoemaker’s marketing objectives are to maximize profit through
SWOT analysis and environmental analysis and also to enhance customer relationship. We
have identify the strengths, weaknesses, opportunities and threats to our company and also
did some environmental analysis to see whether our marketing objectives fit the organization.
In 2016, it is expected to have an increase in revenue for shoes industry in Malaysia will
be around US$18million. They also stated there that market volume will be US$31million in
2021 resulting from annual growth rate of 11.2% from 2016 to 2021.2
The user penetration is also expected to increase about 3.6% from 2016 to 2021. Shoes’
average revenue per user maybe about US$9.01. Referring to this data, Elves and The
Shoemaker take this opportunity to enter the shoes industry in Malaysia and be successful in
selling the trendiest shoes in town because no other competitors are making this kind of
innovation for shoes so far, at least in Malaysia and in IIUM.
2
https://www.statista.com/outlook/250/122/shoes/malaysia

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4.0 SWOT ANALYSIS
Strength
1. Product variety.
2. Existing customers
Weakness
1. Brand perception.
Opportunity
1. Innovating and enhancing the current
product
Threat
1. Products are expose to more
competition
2. Economics is facing a recession
4.1 Strength
The company is an advantage of existing customers who prefer shoes as their outfit of the day
based on the quality. Moreover, a company is offering various types of straps with different
materials and colors.
4.2 Weaknesses
The weakness facing by the company is brand perception in the eyes of community since this
is a new business in the market.
4.3 Opportunities
The company has an opportunity in expanding its business by diversify its products in
innovating and enhancing the existing product.
4.4 Threats
There is a huge number of competitors in this industry where their brands are popular among
the community such as Nike and Adidas. Current economic situation also a threat for the
company because it affects the sales of the product.
4.5 Matching strengths with opportunities.
Shoemaker company is at advantage in promoting their new product because the already have
an existing loyal customer for shoes. By adding new features to the product where it adding

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more style of straps to the shoes, materials and colors the company can make more revenue
and expand its business.
4.6 Matching weakness and threats.
Shoemaker is a new company where majority of the customers are not familiar with the brand
yet. Thus, it is hard for the company to establish the brand in the first place in addition with
the existing competitors in the market. With regard to the economics condition, Malaysia
now are facing recession where its currency (Ringgit Malaysia) is depreciate against Dollar.
People tend to spend more their money rather than spending it out.
5.0 MARKETING OBJECTIVES
The most important objective that a company wants to achieve is maximizing profit.
To achieve that objective, certain things need to take into account. First, environmental
analysis is an important tools to measure how strong the environmental sources for a
company to market its products. By a given SWOT Analysis and environmental analysis, a
company can make some advantage. For an example, based on socio-cultural force and
economic force where today, women particularly are more conscious about fashion and trend
but at the same time economic activities are not doing well or we can say that the value of
Ringgit Malaysia has depreciated. Based on the product offered by the company, its focus
more how people can save their money by buying one shoes but the can be fashionable at one
time due to the variety of straps that the company offered. A company is not only focusing to
maximize profit, but they are competing with other brands of shoes to become a well-known
brands in the market. To establish a name in the industry is not easy because we need to
follow customers’ preferences, technology and government rules and regulation. It takes a
long time for a company to fulfill all these elements.
6.0 MARKETING STRATEGIES
6.1 Future Target Market
Though the current target market are focused towards woman who are economic or
price conscious, we aim to expand our product line to male footwear with the same concept
of changeable straps. We hope in a few years, our target market could be expanded and

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inclusive to all genders and a broader age range by including more variety of styles to fulfill
individual preferences.
We also hope to break the stereotype that our brand is only for economic-conscious
individuals and lack the quality and sense of fashion as other established brands. Within the
next 7 years, we hope to open a new product line for limited edition straps for those who
prefer to be different and are not as price-conscious as middle income and lower income
groups.
6.2 Marketing Mix
6.2.1 Products
Elves and The Shoemaker will establish only 2 product lines upon launching. The first
product line is a shoe base made with PU which is the foundation of the sandal itself. It is a 3
inch thick base with 4 buttons attached on each side respectively. All sandals, though vary in
sizes, will have a precise standardized gap in between buttons to ensure that the base can use
all of the straps that we offer. For now, the company will only sell the shoe base in black
color, manufactured by Weimeng from Mainland China.
The second product line will be the highlight of the company. Within this line, we sell 3
different style of straps of 3 different colors in 3 different materials. The first type is intended
for daily and casual use and uses rubber as its material. The second type is synthetic leather
for formal occasion such as office use while the third type is for special occasion such as
going to dinner or a party. It has a rather shimmery texture while still using PU as a base. All
of the straps will be bought from Afiah Trading Company located in Selangor.
6.2.2 Price
As mentioned before, we have two product lines offered for sale. The shoe base’s
price is set to be at RM 30 as the cost price is RM 20. As for straps, the price varies according
to types where Casual, Formal and Elegance cost RM 18, RM 30 and RM 25 respectively.
Postage costs will be incurred by the customers themselves.

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6.2.3 Place
The method of distribution of the company capitalizes on online commerce through
our website. There are two benefits, firstly customers are able to experience personalized
recommendations.3
Secondly, we are able to let our customers who doesn’t have time to go
shopping, buy from our website through online payment. Our second method of distribution
will only be done once a month where we will set up a booth during period of festivals
organized by IIUM students. This is to allow customers to get hands-on experience and also
to promote our products to the local community of IIUM.
Refer appendix for online website
6.2.4 Promotion
As for promotion, we will mostly utilize on social media where it is almost cost-free.
Promotions and posters will be spread and sent to the mass through applications such as
Twitter, Instagram and Facebook. Another method that the company will venture is to use
paid review services offered by famous Instagram users. The range of the fee is from RM 20 -
RM 700 per review depending on the amount of followers and likes. This method is one of
the most effective and cheapest as we are able to spend less for promotion while still reaching
up to thousands of potential customers. For the first few months, we will only spend RM 400
to have paid reviews to reach around 6000 Instagram users.
7.0 FINANCIAL PROJECTIONS
This section will show a financial overview of Elves and The Shoemaker as it is
related to the marketing activities. In this financial plan also we will address sales forecasts,
expense forecasts, and break-even analysis.
7.1 Sales Forecast
The sales strategy is to create long-term relationships with customers through superior
service. The intent is to initially target the primary customer group. This group has been
defined as persons who have purchased, or are likely to purchase, a stylist-woman that will
spend more money for up-to-date style with lower cost.
3
e-Commerce Fashion, Statista Digital Market Outlook, September 2016, pg. 4

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The shoes are designed with different materials of strap for different styles which are
casual, formal and elegance. Later marketing efforts may include new style of strap with new
design for more choices for customer choose. Target customers will be identified through
standard research methods. There are a number of publications available that contain profiles
of shoes fashion.
Methods by which Elves and The Shoemaker will contact customers will depend on
results of marketing research. Elves and The Shoemaker will likely use Whatsapp, Instagram
and Facebook. Sales will be extended into the whole nation within a few years of operation
with initial promotion method using famous Instagram users review costing around RM20 -
RM 700 depending on the amount of followers.
Our products will be sold everyday through our website. The following chart and
table shows Elves and The Shoemaker's expected sales and profit forecasts.
1st month
Base Strap
Casual Formal Elegance
Selling Price per unit
(RM) 30 18 30 25
Cost per unit (RM) 20 13 25 20
Profit per unit (RM) 10 5 5 5
Expected order (unit) 50 40 30 30
Expected revenue (RM) 500 200 150 150
Total Gross Profit 1000
Less : Expenses
Marketing (400)
Transportation (100)
Utility – Wifi (30)
Wages (RM 1 per order) (150)
Total Expenses (680)
Net Profit 320

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2nd month
Base Strap
(RM) 30 18 30 25
Less : Expenses
Marketing (400)
Net Profit 740
3rd month
Base Strap
(RM) 30 18 30 25
Less : Expenses
Marketing (400)
Net Profit 1160

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7.2 Expenses Forecast (Expected Cost Of Marketing)
This expense forecast will be used as a tool to keep the organization on target and
provide indicators when a modification or correction is needed. For the starting period, we
separate costs into two categories, fixed and variable where fixed cost include transportation,
utilities and marketing and variable cost will include purchasing cost and wages

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7.3 Break-Even Analysis
From the graph, the break even point shows that the firm needs to sell 89.04 units in
order to offset the fixed cost and variable cost.
Base Strap
Rubber Formal Elegance
(RM) 30 18 30 25
Expected order (unit) 34.76 24.76 14.76 14.76
Expected revenue
(RM) 347.6 123.8 73.8 73.8
Less : Expenses
Marketing (400)
Utility - Wifi (30)
Wages (RM 1 per
order) (89)
Total Expenses 619
Net Profit -

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In conclusion, break-even analysis is a useful tool for developing an understanding of
the cost, volume, and profit relationships of a business. It provides some very useful
information that will help new business owners make management decisions. It is useful in
setting the sales price of product relative to our profit goals and analyzing the effect of
changes in business volume and costs.
8.0 MARKETING IMPLEMENTATION
8.1 Marketing Organization
Discussing on Marketing Organization, there are several structures that we can follow
that may suits the type of business we are dealing with. For example Culture Organization,
Funnel-Focused Organization, Inbound Organization and etc. We will implement the Culture
Organization in our company. The structure is as follows:
The benefit of having Culture Organization may help to transfer the culture and
confidence of the product throughout the team better. This will help to improve any internal
problems occur in certain organizations. The whole team will directly involve in the part of
marketing, not the marketers only. This is available through events, on mass media, social
media or even user interactions. Example of company applying this concept is Github.

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Since the target market of our product is woman in the age of 15-35, the marketing
team should come out with brilliant ideas on how to reach this group. Most women this age
are IT-literate, thus our team should focus on social media and IT platform in order to attract
the customer. For instance, the idea of Sport brand like Nike where you can customize your
own shoe according to your own choice and design. Customers’ satisfaction through this
engagement is the top priority of this type of marketing organization.
8.2 Progression of Company Activities
From the Table above, Elves and The Shoemaker should be able to make profit in the
first month of operation in January. From here onward, evaluation will be conducted by the
team in order to continue or end the product. Furthermore, the team will be push even harder
in order to market and promote the product to reach bigger market. This is to ensure that the
shareholders of the company and partners gain profit through this business.
9.0 EVALUATION AND CONTROL
9.1 Performance Standards and Financial Controls
Elves and The Shoemaker has set the standard of providing new innovation of shoes in
order to create and meet the demands of people to the dream of “all in one shoe”. Therefore,
in order to perform it, quality check must be done and ensure that product is distributed
nicely to the customer. If there is any problem with the product or services provided,
customers may complain directly to us so that we could improve it from time to time. From
the management side, there will also be a monitoring process starting from the production

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process until the product and services received to the hand of customers. Management shall
control it and make sure products and services are always up to the standard.
Financial plan has strong value as for the predicted one, but the real amount is not
necessarily will be the same. The actual income and expenses will be at least a bit different.
Let say, if the actual sales is not as much as what we expected in the first few months, we
need to work on the marketing and promotion more so that sales can be injected. After 3
months of forecasting and see the actual result, the difference will not be as much as before.
The financial part can be controlled either by pushing sales or in other words, increase the
income, or just plan on how to reduce unnecessary expenses incurred. That is how we are
going to control the financial part of our company.
10.0 LIST OF REFERENCES
1
http://blog.malaysia-asia.my/2015/03/malaysia-social-media-statistics-2014.html
2
https://www.statista.com/outlook/250/122/shoes/malaysia
3
e-Commerce Fashion, Statista Digital Market Outlook, September 2016, pg. 4
11.0 APPENDIX
11.1 Diagram of online website

MKTG 3010 Marketing Principles Marketing Plan

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