Executive Summary

A marketing plan report on Pama brand under the Calton

Marketing Sdn. Bhd. is presenting to do an analysis towards

the market and market testing on new product line that going

to introduce to consumers. Pama is selling instant rice

vermicelli as their main products in the company; however

the company has to do more strategies in order to go for

global market. Therefore, some analysis and implementations

have been done for the blueprint in next year.

Environmental analysis on company and the country shows out

who is company target market is and how each of the forces

can affect company operations as well as the buying patterns

of consumers. Moreover, SWOT analysis also been drew out to

enhance the strength that company has and also to find

initiatives to improve company’s weakness.

Three objectives of company listed out as the goals for

company to achieve on next year. Thus, through the

objectives we can know it very well what is our aim and how

we achieve these objectives by next year.

Lastly, it is the evaluation and control on budget that we

going to use. In order to control the over use of cost, a

budget table will going to show the market activities with

some brief description as well as the calculations on it.

Environmental Analysis

Competitive Forces

In the instant noodles industry, Malaysia has several

local brands which consume by the consumers. There are

brands like Ibumie, Har Mee, Mamee and Maggie; these instant

noodles company becomes the competitors to Pama which may

also become a threat to Pama company. However, the most

likely by the consumers are Maggi and Ibumie after the

survey from word-of-mouth. Besides, the foreign brand of

instant noodles company like Mama noodles by Thai President

Foods company in Thailand is one of the big competitor for

Pama because they produce Tom Yam flavor noodles and also

rice vermicelli. As the local brand in Malaysia most of it

didn’t produce the instant rice vermicelli therefore

consumer will look for the other foreign brand if they not

prefer Pama.

The local and foreign brands of instant noodle have

priority in this industry because these brands have the

brand awareness from the consumers so marketing activities

no need to do that often. If we comparing the well-known

brand which is Maggi in Malaysia with Pama, Maggi have

better brand awareness and Pama have to change their

marketing mix to reach the goals as what Maggi did. In the

future, Maggi and Pama may have a strong competition in this

industry and marketing strategies will keep coming out in

order to be the market leader.

Economic Forces

Malaysia is considered as an upper-middle income

economy and the country is leading exporter if natural gas,

palm oil and other electronic components or parts. Malaysia

has become the raw materials producer as our country is rich

with the natural resources. In 2010, New Economic Model

(NEM) has been launched in Malaysia to aim the high income

status by 2020, yet this strategy can ensure the economic

growth sustainable and inclusive (Worldbank.org, 2013).

Based on the research from Nielsen, he did a survey

about how Malaysian look into the economy, they are

optimistic or pessimistic. The survey is measuring consumer

confidence and spending intentions from respondents in

internet and the result shows that 68% of online consumers

in Malaysia are optimistic to their job prospect. The

Managing Director in Nielsen Malaysia said that the external

environment in Malaysia is improving and low inflation is

some positive drivers for the upbeat attitude of Malaysian.

The survey also shows that 85% of Malaysian spending less to

save on their household income (Brandinsights.com.my, 2013).

Pama is targeting in household, teenagers and working

people as their target market. Datuk S.K. Devamany said that

household purchasing power is increasing because of the

household income is rising, and this give a good sign to

food industry especially to the food industry in Malaysia

(The Malaysian Insider, 2013).

Sociocultural Forces

Malaysia is known as a multicultural nation with three

ethnic groups which are Malay, Chinese and Indian. However,

our society has different demographics and values and it is

keep changing from the past until today. Society’s

demographics and values changing because baby boomer

generation or we called as generation X have different

perception with generation Y. According to Adriann Albert,

the generation X has better educated and it will change the

impact of aging on society and this group will focus on

health conscious. By the impact of aging on society, this

generation interest is to staying healthy and this

indirectly can increase the demand of health care products

(Anti Aging Guides, 2013).

When looking into negative impact, the changing will

affects Pama business as in baby boomers perception, instant

noodles consider as unhealthy foods and their demand for it

will be lesser.

Based on the research, the Consumers Association of

Penang (CAP) advised consumers to less eating instant

noodles because it is harmful to health. They mentioned that

instant noodle is highly processed food which is lacks in

nutritive value (Consumer.org.my, 2013). Though the

government is advising the society to avoid eating instant

noodles but the rate of Malaysian consume for it still

increasing about 40% during the period of 4 years. However,

Pama is going to create the new product line which will

produce the healthier ingredients in order to target to

health conscious person.

Technology forces

Malaysia is an emerging country which moving forward to

high technology development. Somehow, if comparing with

others country, Malaysia still has to improve the technology

skills and workforces in order to go for global world. Our

country is doing their best in transforming Malaysia to be

innovative. For instances, the National Innovation Model is

organized to transform Malaysia into an innovation-led

economy which can promotes knowledge acquisition and

knowledge-based economy. In this advanced era, business

becomes easy to do especially when internet use globally

today. People around the world can be our target market

because we can do promotion activities through website and

we can get customers’ intention easily. However, great

competition between competitors will occurs when advanced

technology taking part in the business no matter in terms of

operating system and producing ways (Mscmalaysia.my, 2013).

Target Market

Demographics

Survey shows that Malaysian average monthly income has

been increased annually. The result of this rises can

ensuring the stability and strong growth in economy which

can increase consumer buying power (BorneoPost Online,

2013). This is a good significant as it can helps in market

growth of the company.

Currently, Malaysia GDP is $303.5 billion and has a

29.24 million of population; this country income level is

considered as upper middle income (Data.worldbank.org,

2013).

However, Pama will target on middle income level of

consumers because the price range of Pama instant rice

vermicelli is about RM6.75 which consider higher price than

Maggi which cost RM4.25 only.

Geographic

After my research, I found that some of the grocery

shops didn’t sell our products so we are targeting on

grocery shops near with the housing area so it can

convenience the residents around there to look for our

products. Besides, shops which open for 24-hours will be our

target as well because some working people may no time to do

their grocery shopping but only have time after they finish

their work. Moreover, mini markets where located in the city

will be part of it also as some people staying in the city

and they will do shopping on the weekend.

Psychographics

Nowadays people are having the stressful lifestyle. We

are busy with family, school, sports, and social commitments

to fit in limited time. Therefore, instant noodles become

one of their food lists which only need few minutes to

prepare.

Besides of that, our company also looks into customer’s

preferences. We mostly targeting on consumer who likes spicy

because our products mostly in spicy flavor like Tom Yam.

However, in the future our company will target to vegetarian

and create new product line to target more market and health

conscious people.

Product Usage Rate

For the product usage rate, our company will measure it

through the sales in every month and stock checking will be

done in the warehouse. We can know which kind of product

have the higher demand based on the monthly sales report.

Through the result, company can enhance the products which

have the low turnover or just dump the product and create

new products to target on new market.

SWOT Analysis

Strength

Noodles can be prepared in a short of time.

Convenient packaging.

Company using different kind of noodles.

One of the strength of our products is easy to cook and can

consume it instantly. One package of Pama noodles only take

us 3 minutes to cook and ready to consume which is very

suitable for people who are in rush or busy lifestyle.

Besides, the packaging also very convenient as there is cup

noodles packaging and consumer can bring it out to anywhere

they want and only have to pour hot water into it and wait

for 3 minutes to get done. Moreover, one of the products is

instant rice vermicelli which is using the high-grade of

rice vermicelli to produce it and that is hard to find out

instant rice vermicelli in another brand instead of Pama. So

for those who like to eat rice vermicelli, Pama will be the

first brand to come out in their brain.

Weaknesses

Less variety of flavors.

Unhealthy ingredients.

Our company products mostly focus in spicy flavors like Tom

Yam and spicy clear soup for the rest. This can be the

weaknesses because some consumer doesn’t like the spicy and

so they will not look for Pama products as one of their

choices. Besides, it is include the MSG and sodium as the

ingredient which is not good for health if consume it

constantly. For the health conscious people will not buy our

products as it is including MSG.

Opportunities

Create the new product line.

New packaging.

Our company has to create new product line to target on more

market. For instance, new flavors like chicken and

vegetarian flavors for targeting on people who doesn’t

consume spicy food and also we will produce the dry noodles

like “Mee Goreng” to create the new market instead of only

produce soup noodles. Hence, there is only two flavors have

the packaging in cup so we will come out with new packaging

for each of the flavors.

Threat

Competitors

Health Associations

The local and foreign brands instant noodles are the

competitors for our company and this become the threat for

us. For example, the well-known brand in Malaysia is Maggi,

Ibumie and Mamee, yet the foreign brands are MiSedap,

IndoMee, Mama and so on. Consumers may more prefer to these

brand in terms of packaging or tastes. Some organizations

like the World Health Organization calls on consumer to less

consume instant noodles as it will harmful to health and

they also do some campaign about the health awareness.

Matching Strengths to Opportunities/ Converting Weaknesses

and Threats

Company will produce the new packaging (cup noodles)

and new flavors; this can strengthen the market of firm

and be more convenient to consumer when come out with

different flavors of cup noodles.

Lower the prices from RM6.75 to RM5.75 for 5 noodles in

a packet. This allows company to compete prices with

other competitors.

Current Situation

According to the basic information of Pama, the brand gets

an award on No.1 brand in Instant Rice Vermicelli in

Malaysia since 2005 which focus on one of the products.

However, the award becomes a first big step to go into

bigger market through the other marketing strategy. The

company currently organizes a lot of road shows and campaign

to attract more customers, these market activities will

posted out on their fans page on Facebook to let the society

knows what activities had been done by Pama.

Current Mission: Our company distribute the best instant

vermicelli products all over the Malaysia and provide best

services to the customers.

Marketing Objectives

Marketing Objective 1

To gain the brand awareness from existing and new

consumers.

Pama brand will be well-known as the other brand within

these two years to be one of the market leaders in food

industry and competing with the foreign brands in Asian

country.

Marketing program: Build up brand recognition through

public events or social corporate responsibility.

Besides, we can use the traditional way which using TV

commercial or advertising on newspaper.

Marketing Objective 2

To increase the number of sales by 2014.

The company is aim to earn profit so some of marketing

strategy can be conducted smoothly without facing any

financial problems. Besides, when company earns profit,

we enable to do sales promotion during some festivals in

order to attract customers.

Marketing program: Marketing activities like campaign and

road shows will be done in shopping mall and other places

like mini markets or grocery shops. Besides, the discount

promotion will be given on the certain seasons.

Marketing Objective 3

Create the new product line.

The new flavors of instant rice vermicelli and noodles

will come out to enter to new market. Besides, it is also

to target on bigger market instead of targeting only for

spicy-lover.

Marketing program: Survey form will be distributed to

consumer for the better understand about what they think

and what flavors they would prefer in order to make a

mistake on producing the wrong products which may make

losses to company. New flavors like chicken and

vegetarian flavors will be suggested as well as the “mee

goreng” style become our new products.

Marketing Strategies

Strategies are important in a marketing plan and it is

a long-term plan for a company to achieve the goals. It is a

detailed planning which involving the market research and

apply marketing mix to reach their objectives. Therefore,

every company has to set the clear objectives and to be

clear the differences between strategy and tactics

(Businesscasestudies.co.uk, 2013).

For the strategy that I developed, I suggest to make an

online delivery to customers. The new web design of company

will come out with a new corner where customers can click

into the “online order” to make purchase directly and our

delivery person will deliver to customer’s house in a

certain period of time. This idea come out from the e-market

which successfully conducted by Korean. However, they are

running an online grocery shop which slightly different

because we are only selling our products in the website.

Throughout the new business idea, customer only need to

choose which products they want to buy and make payment by

cash on delivery or debit card. We come up with this idea as

we targeting on working people who have no time to do

household shopping, so through the online shopping, it can

convenient the customers and save a lot of time. Besides, we

also give the convenient to people who have problems with

transportation. For instance, college students, teenagers

and so on. This concept will be run within the Kota Kinabalu

area for market test, if the idea can be successfully within

a period of time, we will expand our market area to another

district.

In order to get awareness for this concept from the

whole Kota Kinabalu people, our company will do the

advertising through traditional and advanced ways. For the

traditional methods, new concept will advertised in

newspapers, magazines and billboard especially beside the

traffic light as people can notice the advertisement easily

when they stop by. Moreover, in advancing ways, we can do

online advertisement through the social networks like

Facebook and “pop-out advertisement” on YouTube. It can take

for one minute advertises in the video while waiting the

video to buffer.

Tactics

The tactics that we will using is the marketing mix

which consists of product, place, promotion and price.

Products

In terms of products, we are going to develop new

product line which creates the new flavors consists of

chicken flavor, vegetarian flavor and “mee goreng”. The new

product development is to enter the new market and from this

we can take the chance to gain brand awareness through the

new products which also part of our marketing objectives.

The existing products still remain in the market as our

company will still target on spicy-lover consumers and the

three flavors can target on everyone.

The three new flavors will not using rice vermicelli but we

are going to produce in instant noodles as Pama only produce

instant rice vermicelli and it gains the award by using good

quality of materials. Thus, this time Pama is coming out

with instant noodles in chicken, vegetarian and “mee

goreng”.

Price

In terms of price, we will lower the price from RM6.75

to RM5.75 for 5 packets noodles. This arranging is to fit

with our objective which is increasing the number of sales

by 2014. The price is quite affordable for consumers as our

target market is middle-income people and we are using the

high-grade of ingredients for the products. Besides that,

for the new product line, we set the price lower than

existing product as company want to get awareness from the

consumers and noodles somehow can be cheaper than rice

vermicelli.

Promotion

For the promotion, company will organize road shows in

the housing area and shopping malls. It is to get customers’

interest and take the opportunity to introduce our new

products. During the road shows or campaign, discount

promotion will be given to customers and special offers to

attract more customers. In the certain season or festivals

like Chinese New Year, Hari Raya Aildilfitri or Christmas,

company will come out with giveaways voucher and free

delivery for those who make order in our website.

Place

The distribution channel will be area around Kota

Kinabalu especially housing areas and working places.

Besides, instead of the physical distribution, customer also

can buy our products through online. Consumers don’t need to

go out for purchasing but only need to sit in front of the

computer to make an order.

Marketing Implementation

The market implementation is about how our company will

do to implement the strategy. The implementation will

reflect the three main objectives of company. We implement

market penetration by selling existing products to exist

customers and this can increase the number of sale which is

also our objective to increase 10% of sales by 2014. Market

activities like road shows, campaign and discount promotion

will be done to attract existing consumers come over and buy

more.

Hence, product development will be implemented as well

by creating a new product line. By producing new flavors of

noodles can entering into new market and able to reach our

objective which is to gain brand awareness among the

consumers. In terms of packaging, company will produce the

new packaging for every flavors of Pama. We come up with cup

noodles and assorted packets. Assorted packet including

different type of flavors to be packed in one packaging, it

is a combination of new and existing products. Therefore,

consumer can try for new flavors (instant noodles) and

existing flavors (instant spicy rice vermicelli) at the same

time.

Before developing in new products, we will do a survey

on what consumers’ perception about the flavors that we

going to produce. Survey form and questionnaire will be

distribute to people in Malaysia and do data collection to

analyze whether company should come out with this idea or

not.

When company introduces new product or service without

first testing in the market is like taking a high risk

because company can’t afford to waste time and money by

investing them in producing a new product that might fails

in the marketplace (Entrepreneur, 2013).

Thus, as for the strategy about online purchasing and

delivery, a market test will be chosen for the bigger

planning in the future. Company will expand the online

purchase and delivery service if the concept results good

feedback.

Marketing Implementation

2014 JAN FEB MAC APR MAY JUN JULY AUG SEP

T

OCT NOV DEC

Road

Shows

Radio

Campaign

Website

Survey

Evaluation and Control

Activiti

es

Budget per

session

Total

period

Location Description

1 Road

Shows

Promoter x 6

(RM300 per

person)

4 One

Borneo,

Kota

Kinabalu

.

a) Promote

Pama products

to consumers

and do sales

promotion.

2 Radio RM2500 4 Kota

Kinabalu

a) Hitz FM

b)6 a.m. to

10 a.m.

3 Campaign Spoke person

x5

(RM300 per

person)

2 Suria

Sabah

Shopping

Mall

a) An

introduction

of new

products

b)Products

promotion

4 Website RM 3000 4 Create new

web design.

5 Survey Rm 1000 1 Kota

Kinabalu

Flyers and

survey forms

contribute

all area in

Kota

Kinabalu.

Total Budget Cost

No

.

Activities Total Budget

1. Road Shows (RM300 x 6) x 4 =RM7,200

2. Radio RM2,500 x 4 = RM10,000

3. Campaign (RM300 x 5 person) x 2

=RM3,000

4. Website RM3000

5. Survey RM1000

Total Budget RM24,200