cleanie, a hand sanitizer in malaysia
DESCRIPTION
Cleanie, a waterless alochol-free hand sanitizer proposed to be launched in MalaysiaTRANSCRIPT
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John Lai Professor/Mentor
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about.me/cleanie
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Population Density
Malaysia: 86.44/km² H.K.: 6540/km²
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Age Structure
15-64:65.4%
0-14:29.6%
65+: 5%
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Religions
Buddism:19.2%
Christian: 9.1%
Hindu: 6.3%
Others:4.9%
Muslim:60.4%
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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
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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.
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What can 8RM buy?
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Why Cleanie?
• Clean
• Caring
• Cute
• Kind
• Easy to remember
• Easy to spread
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Mission & Vision
• Help people realize the importance of hand hygiene, thus to set up a concept of healthy lifestyle.
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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
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• Manufacturer:
• instant hand sanitizer manufacturer
• 8-year experience
• ISO9001:2008 international factory quality certifying system
• Flexible production scheme.
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Target Customer
• Age:12-50, Middle class
• White collars, Students, Travelers
• Muslims
Care about health
Passionate about life
And the society
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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
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Competitor
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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
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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.
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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.
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Kuala Lumpur
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Penang
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Johor Bahru
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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!!
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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!!
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Promotion
• Advertising approach: • TV
• Radio
• Internet
• Billboard
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Promotion
• Advertising Style: • Factual style
• Imaginative
• Comparative
• Emotional
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Promotion
• Events: • Public service activity
To Promotes health
• E.g.: Yoga, Marathon
Food nutrition talk
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Control
Why?
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Control
• Sales and cost control • Quarterly Market share analysis
3%up in first three years,
1%up in the following years.
• Semiannual Sales analysis
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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
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Control
• Quality control • Regular Quality control (Double Random Check)
→ A high significance level !
• Continuous Marketing research
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Control
• Reputation & Public relation control
• Customer feedback through satisfaction surveys
• Location of buyers and potential buyers
• Performance of any promotional activities
• Public Relation Control
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Control
• Logistic
• RFID
Malaysia Warehouse
Factory
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Objectives
• Short terms objectives along product life cycle:
• Sales
• Brand & Product awareness
• Placement
• Market share
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Objectives
• Long terms objectives along product life cycle:
• Introduction
• Growth
• Maturity
• Saturation 1 2 3 4 5 6 7 8
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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
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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