PRODUCT AND SERVICE DESCRIPTION
Our product created for the ease of gardening activity which increase in efficiency
rate of plowing activities. Our product are economically friendly which has a reasonable price
that seems to be affordable by gardener or company that may interested. Our product sold at
RM 285 which consider at lower price compare to other product. Then, our cordless features
is our strength in promoting this product to our customer to buy at that price.
Our product is saving more on electric consumption because we are using battery
rather than using cords. This also help to explain our product mobility which easy to carry to
everywhere and can be used in any condition. Beside, we are using rechargeable battery to
ensure that we are saving more and cope the pleasure of our customer.
Then, for our blade it has two type which provided to our customer that is soft blade
and hard blade. Soil structure may define by the type of maintenance such as watering,
interval of plowing and the plants itself. For instance, the soil which are no longer being
plowed will experience hard crumb or hard structure due to insufficient water to soften the
soil. This type of soil are difficult to plow so we are providing customer the hard blade to
handle this. For soil type which easy to plow, soft blade are enough to handle. Both our blade
has a size about 5 cm diameter.
Our product light in weight about 3 kg. Mobility of our product related to this and
explain the carriage potential of our product. It is small and light, can be fit on bag, and not
burden to the handler especially gardener or housewife which like to do easy work. Then, we
have the attractive color that is dark blue and do not has a potential to disturb people who has
eye problem especially eye problematic to color changes and color reflection to sunlight. As a
result, our company really optimize to produce this effective and attractive product due to
satisfy the needs and wants of our customer.
3.0 TECHNOLOGY DESCRIPTION
For technology description, our product has gone through proper assessment during assembly of the component until completion of the prototype. We use rechargeable battery with voltage about 3.6v/ 1.3 Ah with 250 round per minute (RPM) for motor rotation of the machine. This battery are small charge and easy to get in any shop or hardware. Due to small size and the function itself which is not too extreme, the voltage of battery is enough plus with the ability to recharge.
Blade of our product which is use to plow the soil correctly are made from power titanium coating. Titanium comes from Titanium nitride (TiN) which specialize and extremely hard ceramic material to coating steel, alloys and aluminium. This titanium improve the surface properties of the component. Usually, TiN used to harden and protect cutting and sliding surfaces. Besides, it is non-toxic exterior which cause no harm to plowed soil. Another advantage using Titanium it is suit for edge retention and corrosion resistance for machine tooling. Based on above description, we decide to choose the blade which coated by Titanium coating for this hand plower machine.
Charging time is crucial for any type of electronic machine. Our battery has an ability to be recharge for about 60 minutes or one hour. To ensure the effective time and good desired work output, we use battery type which easy and not require much time to be recharge. So, this product are reliable enough for our customer and they just wait for one hour to fully recharge the battery. At the same time, they can take time to cooling the machine component.
Our product equipped with thermostat system. Thermostat is component of control system which sense the temperature so that the system temperature maintain at desired setpoint. It runs by switch heating or cooling devices on or off, regulate flow of heat transfer and maintain the correct temperature. Later, this thermostat will prevent the equipment damage from frequent switching. This technology cause us to apply to our product to ensure safety to our customer in using this machine.
CE certification is a marking to product and designed to be recognizable within country or worldwide. It is also the declaration of the manufacturing that the product meets the requirements of the applicable CE directives. In regulation of CE, our product is under module F that is product verification module. This show that our company especially our product are reliable enough and has gone through inspection which cause satisfaction among user.
Our product also has speed control system. This is designed for customer so that they can setting the desired work output based on their needs. For example, if the soil are soft enough low and steady speed are recommended and avoid soil comes out from polybag or vase. This efficiency has been tested in installation of our product during operational process.
4.0 MARKET ANALYSIS AND STRATEGIES
4.1 Introduction of marketing plan
Marketing plan is a comprehensive blueprint which outline an organizations
overall marketing efforts. A market plans begin with the identification through market
research of specific customer needs and how the firm intend to fulfill them while
generating an acceptable of profits. In business marketing planning is very important,
because it is one of the factors which can lead business toward it goals.
4.2 Objective of Marketing
The objectives of this marketing plan are:-
To introduce new gardening product in the industry
- Our product is mobile product which is safe to use and easy to carry
To create wider choices for gardening tools in the market.
- By entering the market with this business, people have wider choice when
they buy gardening tools. People can expect to buy gardening tools from
different sources of place.
4.3 Target Market
Our target market is a group of customer at which a product or service is aimed.
We target people that love gardening, people who love gardening and can afford or buy
our product and also concentrate on customer who like to try out new product. The
characteristic of our target market is:
People who love gardening.
People who can afford to buy our affordable product.
Concentrate on consumer who likes to try out new product.
4.3.1 Market size
Plowing15%
Manuring25%
Pots supply30%
Garden soil30%
Sales
Chart 4.3.1: Market size of existing market on area Kota Kinabalu
30%
40%
30%
Sales
Plower machine Pronged Hand Hand raking
Chart 4.3.1: Market size of our company enter in market
Plowing machine = 30%
Pronged hand = 40%
Hand raking = 30%
Thus, 30% of our company scope is equal to
= RM 5 001 750
4.4 Market share
Market share before enter the market:
20%
30%22%
28%
Sales
Peladang Kinabalu agro sdn.bhdtools and hardware shop Kinabalu kimia
Chart 4.4: Market share before enter in market
Market share after enter the market:
Peladang kinabalu17%
Agro sdn.bhd28%
Tools and Hardware shop20%
Kinabalu kimia25%
Automate Hand plower10%
Sales
Chart 4.4: Market share after enter the market
After enter the market we expected to conquer 10% of the customer/consumer from other
competitor/market to buy our product.
We expect that we conquer 10% = RM 500 175
4.5 Market Segmentation
We are using the behavioral segmentation in order to segment the market. The
business targeted customers who love gardening and looking for a product which can
ease their work in terms of gardening. For an example, people who love gardening
will concern about tools that can help them in taking care of their garden. As green
concept product is popular among middle income customer and above, most of them
are able to purchase our product.
4.5.1 Market Trend
Our market trend is green trend where we are supplying safe product to our
customer. Every year our country developing and land use mostly more to building and
plantation. The sales of automate hand plower are famous because many people who
live in city love to do gardening and also increase in number of nursery in our
country.
4.5.2 Market potential
The potential for automate hand plower is good, because the product we introduce is
differ than other. We provide or supply green product that is easy to carry and mobile.
The ability of our product is it can help in reducing the heaviness of gardening job,
easy to carry and use also light. As we know nowadays, our people getting modern
and the usage of technology is more preferred in doing any job, from there we expect
that our product will be use or buy by a lot of customer that love gardening so do any
estate with nursery. If our business can go further and expand larger our business will
start providing more type of product.
4.5.3 Identifying Competitors
We need to identify our competitors in order to compete with them in the market. As
an automate hand plower supplier, we have competitor around us, for example Agro sdn.bhd,
Kinabalu kimia, peladang kinabalu and tools & hardware shop. They are more experienced in
this business and well known to the customers because they establish earlier than us. In order
to compete with them we need to supply and produce best quality of product for the
customers. We believe our market will attract a lot of customer in the future. For our business
we always need to follow up and challenge our competitor in other to expand our product
4.5.4 Strength and Weakness Analysis for Our Competitor
Company Agro sdn.bhd
Kinabalu kimia
Peladang Kinabalu
Tools & hardware shop
Automate hand plower
Strength Early exist in this business, well known to the public.
Products are branded and high quality.
Early exist in this business, well known to public.
Have a loyal customer.
Early exist in this business, well known to public.
Have a loyal customer.
Well known and famous among customer.
Price is low and easy to get.
All partnership is degree holder of plantation and management can manage properly.
Weaknesses Product price are high suitable for high income customer.
Not affordable for customer with low income.
Product qualities are medium.
Product qualities are medium.
Product quality low.
New in this business.
Doesn’t have loyal customer yet.
Table 4.5.4: The strength and weakness analysis for our competitors
4.6 Sales Forecast
The following is our sales forecast monthly for year one in the operation.
Months Estimates Quantity Estimates Sales
( RM)
January 95 27 075
February 95 27 075
March 110 31 350
April 130 37 050
May 140 39 900
June 145 41 325
July 155 44 175
August 165 47 025
September 175 49 875
October 175 49 875
November 180 51 300
December 190 54 150
TOTAL 1755 5,001 750
Table 4.6: The sales forecast for Automate Hand Plower
1st Year sales RM 500 175
For the second year and third year, our sales are expected to be increased by 20%
and 30%.
2nd Year sales =RM50 0175 x 20%
=RM10 0035 + 500 175
=RM60 0210
3rd Year sales =RM600210 x 30%
=RM180063 + RM600210
=RM 780 273
Sales prizes =RM285/unit
4.7 Purchase Forecast
Months Estimates Purchase
(RM)
January 10830
February 10830
March 12540
April 14820
May 15960
June 16530
July 17670
August 18810
September 19950
October 19950
November 20520
December 21660
TOTAL 200070
Table 4.7: The purchase forecast for Automate Hand Plower
Average purchase per month = RM200070 ÷ 12
= RM 16 673
1st Year purchase = RM200070
2nd Year purchase = ↑ 5%
= (RM200070 x 5%) + RM200070
= RM10003.5 + RM200070
= RM210074
3nd Year purchase = ↑ 10%
= (RM210074 x 10%) + RM210074
= RM21007.4+ RM210074
= RM 231 081
Cost per unit = RM114
4.8 Marketing strategy
Marketing strategy is one of the most important elements in which been practiced
in business today and it always influenced by so many factors especially for customers
attitude that now on have a different taste.
In order for us to maximizes nor increase our profit we need to develop a good and
smart marketing strategy as it is an important roles in marketing in order to improve
sale profit, attract more customer, and to widen sale to many place. For our company
strategy, we will use several marketing strategy that is:
4.8.1 Product strategy
It outlining product and strategy, special attention needs to be given to the following
aspects:
i. Brand For our business brand, we choose
Automate Hand Plower as a brand for our
product. It can attract a lot of customer
especially sabahan, as our market located
at Kota Kinabalu sabah. It has a powerful
attraction to the sabahan customer
because, the sabahan love to buy product
that are produce by its own country.
ii. Quality In order to make our customer satisfied
with our products and services, we will
make sure to produce a good quality of
electrical product. In term of services we
also make sure our delivery service are
fast and good and better.
iii. Product Attributes Product design play important role in
satisfying and delighting the target
markets. Our product is differs than other
because of several reason that is, our
product is simple, light, mobile and easy
to be use.
iv. Packaging For our product packaging we will
covered it up with plastic and box it, we
will put our brand name on the box and
keep it on safe place (storage) to maintain
it quality. We put our brand name on the
packaging because it can help to attract
new customer or user to buy our product.
v. Labelling We also put the product label so that the
customer can read the usage of our
product and know what benefit they can
get when they buy our product.
vi. After Sales Service Our business also provide after sales
service in order to get feedback from our
customer. They can complaint directly to
our company either by phone call or
personal interview so that we can
improve and fix on what our business
weakness and problem.
Table 4.8.1: Some of the product strategies used in our business
4.8.2 Promotions strategy
Advertisement
i. Signboard
Signboard is important because it provide information to the customer or people
about the existence of our Automate Hand Plower Enterprise.
ii. Business Card
Our business also provides a business card especially to our vendors who visit
our market. It makes people know on how to contact us to make business or directly
come to our market based on address given.
Publicity
We choose publicity as one of our company promotion strategy because
publicity in business is a highly cost-effective that can build awareness about our
products/services to our customer and also publicity is free. Nowadays is a
modern era with many kind of technology, why publicity is cost-effective because it
doesn’t need to be pay or buy to introduce about our product, services and market. With
the help of technology in term of social network, many journalist, blogger, or
writer can help in write or promote our market to larger customer.
Personal Selling
We also use personal selling as one of our promotion strategy. Personal selling
is a process by where one party uses skill and technique for building personal
relationship with another party to discuss about thing that involve in a purchase
decision. Personal selling is good because we will know more about our
customer, and get instant feedback from our customer. It also helps in getting our
company a loyal customer.
4.8.3 Pricing strategy
Pricing is the major important strategy in any business because it helps to
ensure our business run successfully. The determination or set of price can affect the
customer choices. We will set our price by using cost-based pricing method in
which a fixed sum or a percentage of the total cost is added to the cost of the
product to arrive at its selling price.
4.8.4 Place strategy
For our place strategy, we choose Karamunsing as our place located at Kota
Kinabalu Sabah that is a very strategic place because of it is on place with a
shopping complex where many people will come. Place is important because it
helps in ensuring the flow of our company sales run nicely and noticeable.
4.8.5 People
People play an important part in the customer relationship. People are the most
important element of any service or experience. People buy from people that they
like, so the attitude, skills and appearance of all staff need to be first class.
4.8.6 Customer Services
Customer services can add value by offering customers technical support,
expertise and advice. Customer services provide expertise, technical support, and
coordinate the customer so that they can make their choices wisely and it
relationship with our company will be increased. Customer service can be face-
to-face, over the telephone or using the Internet. People tend to buy from people
that they like, and so effective customer service is vital.
4.9 Marketing Budget
Table 4.9: Automate hand plower marketing budget
ITEM FIXED ASSET
(RM)
MONTHLY EXPENSES
(RM)
OTHER
EXPENSES
(RM)
Signboard (4feets
x 3feets)
2 pieces
600
Packaging 130
Brand 2500
Labelling 250
Warranty 500
Business card 250
TOTAL 600 380 3250