Table of content

Introduction……………………………………………………………………………………… 2

Contents

Task A ……………………………………………………………………………………… 3- 8

Task B …………………………………………………………………………………… 9 – 12

Task C …………………………………………………………………………………. 13 - 17

Conclusion ……………………………………………………………………………………….. 18

References ……………………………………………………………………………………….. 19

Appendices …………………………………………………………………………………………. 20

1

Introduction

Fresh Sdn Bhd, a well known Bumiputera-owned manufacturer in Malaysia which the

company wants to market Green Coconut Water. Greenz is a kind of soft drinks that

provide consumers with processed green coconut water in bottles. The Greenz will

be launched in different line which is 250 ml, 500 ml, and 1 litre bottle. The

company has targeted a huge market segment for the product locally and

internationally with the company has set the reasonable range of prices. The

Greenz will be marketed in Malaysia and exported to the Bangladesh.

I as a marketing executive for the fresh company has been assume to provide a

report. On the report I need to plan marketing mix in two different segments in

consumer market. Besides, I also need to differentiated marketing products and

services to the business and consumer according to the marketing mix. Finally, on

the report I need to provide a reason about why international market is differs from

domestic markets in term of marketing mix.

2

TASK A

According to (the economic times, 2015) definition of marketing mix is “refer to

the sets of actions, or tactics that a company uses to promote its brand or product

in the market. The 4Ps make up a typical marketing mix – Price, Product, Promotion

and Place”

Based on what I have learned, marketing mix is the combination of marketing

activities that an organization engages in so that it will meet to the needs of its

target market. In short marketing mix is a tool to help what the product or services

can offer. Marketing mix can be break down into four which is place, price,

promotion and product. Place is refer to the place where the customer can

obtain the product, buy the product and how the product reaches to that places. To

make it simple place also known as a distribution. There are various ways that the

product can reach to the consumer. For example through an Internet, wholesaler

and retailers. Next is about the price. Price is the amount of money charged for a

product or services, prices is important because it is the only element in the

marketing mix that produces revenue. Because of that price is the one of the most

flexible elements in the marketing mix. It can be change quickly. For example prices

can be comprised such as discounts and offers. Futhermore is promotion.

Promotion is about the ways to communicate the customers of what the company

has to offer. For example the company may communicate about the benefits of the

products rather than just talking about the features. Finally is product, product is

anything that can be offered to a market for attention or attraction of customer. It

usually come in tangibles where the customer can see the products. For example

like Television. Product also can may appear into intangible which is service that

provide from the company. Services are also form of products that consists of

activities, benefits or satisfactions to the consumer, but it do not result in the

ownership of anything. For example like services that provide from hotel and

airlines.

3

For the segmentation in consumer markets I have choose a demographic

segmentation. This segment is dividing the market into groups and it based on

variable such as age, gender, family size and income. Now lets take a look on age

and gender of people in Malaysia. Nowadays many company market their product

through age of the customer. For example products like cloths. The company may

make a product which their target for children, and they also can make a product

that target for teenager and adult. It shows that age is another important thing that

the company needs to take a look.

Firstly I will focus on the product. Based on the Fresh Sdn Bhd which is well known

Bumiputera manufacturer in Malaysia that want to market Green Coconut Water.

The company want to market a soft drink product which name as Greenz, and it has

been processed through green coconut water in the bottles. These products will be

launched in different type which is 250 ml, 500 ml, and 1 litre bottle. In Malaysia

there have many people which has different ages. Since this company is established

in Malaysia and try to market their product, they need to focus on age of the

people. For example, children today like to drink a soft age such as Coco cola, Pepsi

and Soda. It can be seen on research by (woolston, 2015) he state that “Soda

addiction has long been a problem in our nation schools, every day for years, many

kids have lined up at the vending machines to buy their 20-ounce bottles of sugar

and carbonated water before they go off to study”. Based on this statement it

clearly shows that children love to take a soft drink. Because of that, if the company

wants to market their product, the company need to know to design an attractive

product for each their target market and it need to be different from the other

company who serve the same kind of drink. Through this way, customer which

consist of children, teenagers and adults will keep in their mind about their product.

4

Next is in term of price. Pricing is another element of marketing mix that can

attract the consumer to buy. Since the fresh company wants to market new product

it mean their product is still new. Because of that there are many ways that the

company can sets the prices for the products. There have two strategies that the

company may use for the introductory of a new product which is market skimming

and market penetration pricing. Since the raw materials are very much in Malaysia

so it assume the cost to make the soft drink will tend low, because if that skimming

pricing is not appropriate if the company to apply. The company should implement

market penetration pricing for their product, so that the company can set a low

price for a new product in order to attract a large number of buyer. The company

can set the price based on the quantity of the drink, for example soft drink for the

250 ml is amount of RM 1.50, for 500 ml is RM 2.50 and for 1 litre bottle is RM 4.50.

To relate the price with the age of customer, the company can set the low quantity

of drink and the prices to the children. It will suitable to set that prices for the

children this is because since they still do not have fixed income so they can

affordable to buy the products. next for 500 ml the company may focus on children,

teenagers and adults. This is because the price is not to high and low while the

quantity also are in the between, so the company may assume the customer will

afford to buy the product. Lastly for 1 litre bottle the company may sells on the

adults. The prices may look high but it is appropriate with the quantity of the drink

itself. Since, mostly of adults have their fixed income so they will affordable to buy

the products.

After that is place. Place is also one of the elements in marketing mix that the

Fresh company need to highlight in order to market their product. As I had mention

before, place is refer to where the customer can obtain the product, buy the product

and how the product reaches to that places. To make it short place know as

5

distribution. To make the fresh company easy to sell their products, the fresh

company may use channel intermediaries such as retailers. Retailer refers to the

people or person who has a stronger personal relationship with the customer. The

retailer is also important this is because they can sell the product to the final

customer. For example like wall mart. For fresh company they may put their

product at shop or any restaurant. Fresh company may put their product at shop

like “seven eleven” so that any of ages of customer can come to buy. Besides they

also can put their products at any restaurant such as food court at the mall, so that

they will target for people who are work and people who like to hang out with their

friends who is adults and the teenagers.

Last one is promotion. Based on what I have understand, promotion is about the

way we communicate with other people to buy the products. There are many ways

that can help the fresh company to sell their products. For example through

advertising, personal selling and sales promotion. The fresh company may promote

their product by use a sales promotion and advertising. Sales promotion refer to

(friesner, 2014) he said that “any initiatives that undertaken by an organization to

promote an increase in sales”. Example of sales promotion includes free gift,

discount prices and free samples. The company may provide a free gift to the

customer who buy their products and it is especially for children. This is because

children are the people who will happy if the company provide any of gift like sticker

beside the soft drinks itself. And for the advertising the company will focus on the

teenagers and adults. Advertising is about the medium that can the business

promote their product such as through media. Adults and teenagers are the people

who are matured and they like to spent their time on television and they also tend

to know news that the media provide. So if the fresh company using these way,

indirectly they can promote their products.

6

For the next segmentation, I had choose a psychographic segmentation. This

segment is about dividing a market into different groups based on the social class,

lifestyle and personality characteristics. As we know people consist of different

styles and wants. For example people who are high class people are tend to high

demand where they like to buy an expensive thing. And people who are low class

only spent their money on affordable things. For example like necessary things such

as food. Nowadays many companies categorized their products based on social

class of their customer. It can be seen won the products like gold, not many people

can afford to buy gold this is because of their price which is so expensive. But for

those people who are high class and like to collect gold they can afford to buy.

Firstly let’s take a look on the product. Since fresh company want to market their

soft drink product and categorized their product in different line which is 250 ml,

500 ml and 1 litre bottle so the company need to take a look on the social class of

their customer. For example to those people who are in a high class, the company

should decorate or design the product more attractive so that those customers will

satisfy to buy the products. for example the fresh company can put a slice of fruit

like watermelon fruit at their soft drink so that the customer will enjoy in having a

drinks.

Next is about the price. For the price the fresh company may uses a general pricing

approaches. There have three factors in this approach which is cost based

approached, buyer based approaches and competition based approaches. Since the

7

company want to focus on the social class of their customer, the company may use

buyer based approach. This approach is set based on the buyer perception of value

rather than on the sellers’ costs. For example if the business since those customers

are a high class style, so the company may set the prices high but if the customer is

lower class, the company will set low prices.

After that is promotion. For the promotion the company may use sales promotion.

As I had mention earlier examples of sales promotion include free gift, coupons and

money off. By doing these ways it will make the people who buy the product satisfy.

For example to those customer in lower class where they can get free gift after they

buy the product. Meanwhile the company also may use advertising as another ways

of promotion. The company may advertise their products through media. This is

because by having an advertising people will know about the product and it does

not matter if the customers are low class, middle class and high class. Everyone will

know about their products.

Last one is place. To make the people easily to get the products. The company may

use channel intermediaries such as retailers and internet. Both of these are the

example of place that the company can use. Place is knows an distribution is about

how the customer can obtain the products. Retailer is important because they can

sell the products to the final buyer. For example the company may put their product

at shop such as “seven eleven” so that it will easy to the customer to get the

products, especially for those customers at the lower and middle class. While

internet is also one the way that customer can obtain the products. For example the

customer may order through online. The company can use this way and focus on

the high class people. As we know high class people are more spent their time on

gadget like phone and laptop in surfing an internet. So it will easy for those

customers to get the products without have to waste their time to go to buy the

products.

8

TASK B

According to (business dictionary, 2015) definition of consumer market is

“markets dominated by products and services designed for the general consumer”.

Based on what I have understand consumer markets is allows us to purchase

products, goods or services. All these items can be used for personal use. In a

consumer markets the individuals make the decision on their own on how much

money that the individual need to spent. If the more people spent their money on

the products, the more active the consumer market.

While the business markets according to (business dictionary, 2015) is a

“marketplaces where organization purchase raw materials, natural resources and

components of other products for their resale or for use in manufacturing another

product”. Based on my reading business markets is directed to the organization

who act on behalf of the needs of the organization, it includes all activities involved

in communicating the value of a business products and services to another

business.

There are different between the consumer market and business market in

term of services and products. This is because the people in the business markets

9

tend to work hard to streamline the buying process in order to save time and

money. While for consumer markets is about the way of individuals to buy the

product. In the consumer market mostly the way they buy the product are based

more on their emotion. Below I will explain on the different between in the

marketing products and services for business markets and consumer market in

term of marketing mix.

There may also have several advantages and disadvantages between the

consumer market and also business market. for the business markets is the

target market that you are dealing. It mean when run the business market the

business tend to deal with the target market which this target market will stays in

need of products or services in order to keep the business moving. For the

disadvantages of business market is limited market. business to business face a

much smaller buying pool than business selling to consumer. This is because the

total number of prospective buyers may not much as consumer.

While for the advantages of consumer market is the the selling that the business

are targeting. Since they only need to focus for the people so it will tend to varied

market. so it will benefit for the business to specialize them into a niche group. For

the disadvantages of consumer markets is the business need to face on large

segmented. Because of that, the business need to determine the need and wants

that may attract their customer.

Marketing mix Business markets Consumers markets

Product Larger quantity

In boxes

Small quantity

No boxes

Price Negotiate price Fixed price

Place Wholesaler Retailer

Promotion Sales promotion Advertising

Diagram 1: Marketing mix between business markets and consumer markets

Refer to diagram 1, it shows the differences between business market and

consumer markets and it can be classify in a marketing mix which is product, price,

10

place and promotion. Firstly let’s take a look on product for the business

market. In the business markets, usually the organization will buy in the larger

quantity of goods for the purpose to sell to the consumer. Since the company is big

so it will suitable for them to buy in bulk this is because they want to sell it to the

consumer. It will not logic if the business only buys a few of product and then sells it

to the customer. It only just wastes their energy and time. This is because if the

goods have been sold out they need to buy the goods again. Next is the products

must be sell put in boxes. Since the company buys the goods in bulk so the goods

need to be put in the boxes. By using this way it will easy for the business to carry

out the goods compared in they need to carry one by one goods which it will waste

the time.

Now let’s take a look on product for consumer markets. In the consumer

markets, usually the consumer will buy in the smaller quantity of goods. This is

because consumer only buys goods for their personal use and because of that they

will tend to buy in a small quantity. For example if the individuals want to buy a

mineral water, the individual itself only need to buy one mineral water not in a bulk,

this is because the individuals is the only person that want to drink the mineral

water. At the same time the products also must need to be put freely which mean it

does not need to put in the boxes. Through this way it will easily for the consumer

to see the productS.

Now we go to another marketing mix which is price. For the price in the business

markets, the fresh company may set the negotiate price. Negotiate price is about

the communication between people in order to get a low price. Since the business

market tend to buy a products in a bulk so it will suitable for the fresh company to

set this way. Through this way it will give more benefit to the fresh company, for

example fresh company will tend to have a stronger relationship with the other

business who buy the goods at their company, this is because the other business

may enjoy to buy the goods where they can negotiate on the price of goods.

While for the prices in the consumer markets, the fresh company may sets a

fixed price to the consumer. Fixed price means the price that has been set cannot

be change. Through this way it wills benefits to the fresh company where they can

enjoy in collecting the profit of the goods. The company needs to implement this

11

ways because customer consists of many behaviors. They will act in many ways, for

example they will need the business to give a discount for the goods, and it actually

will give problem to the fresh company itself. For example if many people act in the

same ways which want to get discount for the goods that they buy, the fresh

company will tend to bankrupt.

Next in the marketing mix is place. For the places in the business markets and

consumer markets the company may put their soft drinks at the wholesaler and

retailer like Mydin. The company may deals with the owner Mydin so that they can

sell the soft drink. Since Mydin is the wholesaler and retailer market so they will

have two ways or methods in their business and definitely it will be different. For

example Mydin will put the soft drink in two places in the markets which is for

business market and consumer markets. And may at the business markets area

Mydin will puts the soft drinks in bulk and it will unorganized while for consumer

markets area Mydin will arrange the products neat and orderly so that it will attract

the consumer to buy Through this way it will easy for the people between both

market to buy the soft drinks. In the end it will gives benefits to the fresh company

itself where they can collect their profit through their channel intermediaries like

Mydin, at the same time also people will tend to memorize about their product.

Lastly is promotion. For the promotion in the business markets, the fresh

company may use a sales promotion. Sales promotion is about promotion that the

company may give the business buy the goods, it include coupons, sweepstakes,

contest and free samples. For example if the business markets wants to buy the soft

drinks in bulk the business may get a money off form the prices that they have buy.

It means that, they can get lower prices from the actual prices. Therefore the

business will enjoys buying the goods from the fresh company and will tend to deals

frequently. Sales promotion is one of the way that the fresh company can apply.

This is because it is the easiest way for the fresh company to stimulate quick

increase in their sales

12

While for the promotion in consumers markets. The fresh company may use

advertising. Advertising is also on of promotion that can be used to promote the

products. The company may advertise their product through media such as

newspaper or television. Since people are love to know about the current issue that

occurs through media or newspaper. So they will watch it at television or by reading

the newspaper. So by advertising the product through media, indirectly the people

will know about the soft drink for the fresh company. It shows that by using this way

it will give more advantages to the fresh company where they can promote their

product all over the state in Malaysia.

TASK C

According to (Mbaskool, 2008) definition of domestic market is a “market within a

country own borders and trading is aimed at single market”. Based on my

knowledge domestic market is refer to as an internal market or domestic trading in

the single country. Domestic markets also known as internal market it usually to

reduce the competition between the other countries. Some of the companies

choose to focus on doing business domestically, while the others may expand to

external market, this is because they want to capture more markets sectors and

access additional trading opportunities.

13

While international market according to (salman, 2011) he said that is an

“exchange of goods and services between different national markets involving

buyers and sellers”. Based on my reading international market can be simply as

international trading between two or more countries. In short international

marketing is recognizing that people all over the world which have different needs.

For example products that are recognized all over the world is coca cola.

There are several advantages of domestic marketing. First, it will easy for the

business to communicate between their workers. By having a domestic

marketing the business can communicate between their workers without any

problem this is because they have a same language to communicate. For example if

the company from Malaysia wants to expand their business in their country so it will

easy for them to communicate, this is because in the Malaysia country Malay

language is the main language. Because of that it will easy for the both companies

to interact. Next is it will have low taxes to be paid. If the companies want to

expand their business to the other countries there may some taxes that they need

to be paid. For example if the company want to export their products to the other

countries the companies may need to pay duty tax and the tax will be definitely

high if to compared on trading in domestic markets.

There also have advantages on international marketing. First, it will expand

their market. By having international markets the company may expand their

business and their product will be commercial and at the same time the company

can get a large customer base which is benefit to the company itself where

indirectly the company can tend to get greater profit. Next is brand reputation.

International marketing can have unique advantages of helping to boost the brand

reputation. If the company able to expand their business around the world, the

people will perceive the product as have a high quality. So that people will trust to

buy it.

Marketing mix Domestic marketing

(Malaysia)

International marketing

(Bangladesh)

Product Labelling Labelling

Price Currency Currency

Penetration pricing

14

Place Retailers Agent

Internet

Promotion Advertisement

Sales promotion

advertisement

Diagram 1.2: Different between international market and domestic market

Refer to diagram 1.2 it shows the differences between domestic market and

international markets and it can be classify in a marketing mix which is product,

price, place and promotion. To make a differences between both ways are

according to PEST which it stand for politics, environmental, social and

technological. firstly let’s take a look on the product in the domestic marketing

and international markets. The fresh company need to concern on how to

labeling their soft drinks. This is because since both of countries are muslim

countries, so fresh company need to find out the appropriate sign to make a

labeling. For example, the fresh company should make a logo “halal” for their

product. this is because as a muslim, the first things that the people are going to

see before they eat or drink is the “halal” sign. This is because as a muslim they are

compulsory to take a “halal” food same goes with the drink.

Next in the marketing mix is the price. For the prices on the domestic markets

and international markets, the fresh company needs to take a look on the

currency between the countries. For the Malaysia the currency that has been used

is Ringgit Malaysia while in the Bangladesh the currencies are call as Bangladeshi

Taka. It can be proof by (xe, 1995) “the Bangladeshi taka is the currency of

Bangladesh. Our currency rankings show that the most popular Bangladesh Taka

exchange rate is the BDT to USD rate. The currency code for Taka is BDT, and the

currency symbol is Tk”. The fresh company should take this issue seriously this is

because if they are overlooked it will impact to their product. for example if they put

the prices without study on the currency of the Bangladesh countries they will may

tend to loss. This is because RM 1.00 in Malaysia is equals to 21.63 Bangladeshi

taka. It shows that the currency of Malaysia in increase than Bangladesh.

After that is for the price in international market, the fresh company may put a

penetration pricing. Penetration pricing is about setting low prices for new products

15

in order to attract a large number of buyers and large market share. Since their

product is still new, if they want to market their product at Bangladesh so they

should implement penetration pricing. By using this strategy, it may attract

customer to buy because the price that have been set is low and definitely the

people in the Bangladesh can able to buy. But by using these strategies it may take

a time for the company to get a large number of buyers this is because the

customers may take time to know the product.

After that on the marketing mix is the place. For the place on the domestic

market the company may use channel intermediaries such as retailers. Retailer is

a people who have a stronger relationship with the consumer and they also will give

the final selling prices to the product. It shows that retailer is important element

that can help the fresh company in making sales for their product. For example the

company may put their products at the “seven Eleven” so that it will help the

company to sell the product to the consumer. Indirectly it will easy for the fresh

company to gain profit since they only need to reward the owner of the retailer

while the retailer need to sells their products. If many customers like to buy their

product, the company may enjoy in collecting the profit.

While for the places in international market, the company may use an agent.

Agent is the effective ways of channels for selling where they can help the company

to sells the products to the consumers. By using these ways it give immediate

access for the company to get a target market without need to waste the energy to

make sales. Since, international market involve two countries so by having an agent

is the best ways to markets their products. Next is about through an internet.

Internet has a geographically disperse market and it will benefits for the company

to gets the customer around the world. Through this ways customer will capable to

get the product which is through online. Since nowadays many people around the

world are mostly spent their time through gadget likes laptop and hand phone so

definitely they are having an internet. So I think this internet is the best places for

fresh company to markets their products.

Finally is about the promotion. For the promotion on the domestics markets, the

company may use advertising. Advertising is a paid for communication where it

used to develop awareness in order to gain a response from the target market. For

16

example fresh company can advertise their product through media such as through

television or newspaper. As I discuss earlier, nowadays as we can see people in

Malaysia are notice about the news through the main source which is media and

newspaper. So if the company using this type of promotion, it will give more

benefits to the company itself to promote their products. next the company also

may use another type of promotion which is sales promotion. This promotion is

about an activity or a material that offers consumer a direct incentive to buy a good

or services it include free gift, free samples and rebates. For example the company

can provide a free gift like “key chain” it can be refer on diagram 1.6, for those

customers who buy more than three soft drinks. So that, the customer will feel

happy on what they get and tend to buy frequently.

While for the promotion on international markets, the company may use an

advertisement. Advertisement is the best way that cans the fresh company may

take to promote their product. Since international trade involves a different

countries so it will not easy to markets the products. But by using advertising it will

be easy, this is because advertise can be in many ways such through newspaper,

magazines, television and journals. The company can use one of these medium to

markets the product. For example the company may advertise their product

through television. Since nowadays media is the main source that can spread the

news to all people in the world so if the company advertises their product with this

ways it will give more advantages to the company where they may get a large

number of buyers.

17

To make a strong judgments, tables below shows the different between

international marketing and domestic marketing:

International marketing Domestic marketing

Barriers International trade is

characteristics by tariff

and non-tariff barriers

Domestics marketing has

no restrictions

Currencies It has exchange in the

different currencies

It involves exchange in the

basis of same currencies

Government

interferences

Exchange takes place

under government rules

and regulations

Government interferences

is minimum only in case of

essential commodities.

Risk High risk because of

factors political, foreign

exchange risk and bad

debt risk

Also tend to have risk but

not as high as

international marketing.

In other hand, there are several types of product that had been sell into

Bangladesh. What I had found is product that name like Gippy Malaysia and

Rasajus. Gippy Malaysia is a Malaysia product that has been export to Bangladesh.

It is a jelly and Puding that have variety type of colour and taste like strawberry and

peanut it can be refer on diagram 1.3 and 1.4 . It had been sell to people which it is

suitable to all level of society. The products also has the fruit flavour on it, and it

was been packaging into the bottle. Next product is Rasajus. Rasajus is a beverage

product that was made in the plastic bottle and it is very suitable to serve in all

ages of people it can be refer on diagram 1.5. Rasajus was made by the real fruit

taste and have sour and sweet flavour. The product name is according to the

company that produces the product itself which name was Rasajus and it was

located at the Kuala Lumpur.

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Conclusion

For the conclusion, segmentation is important tools in order to market the products.

this is because segmentation can be simply as markets that consists buyer and

buyer differ in one or more ways. In simple segmentation is how the business

figured out their target market. Through this way, it will easy for the business to

focus on the small group. The business also can market the product according the

marketing mix which is stand for place, product, price and promotion.

Next, the company needs to know there have differences between business market

and consumer market. and to see the different, it may be related with the

marketing mix which is price, product, place and also promotion.

Lastly, the company also should know the differences between domestic market

and the international market. To see the different between both of it, the company

may look on the PEST factor which is stand for political, environmental, social and

technological and the company also may look also on the marketing mix.

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References

Referencesxe. (1995). Retrieved from currency of bangladesh: http://www.xe.com/currency/bdt-bangladeshi-

takahttp://www.xe.com/currency/bdt-bangladeshi-taka

Mbaskool. (2008). Retrieved from what is domestic marketing: http://www.mbaskool.com/business-concepts/marketing-and-strategy-terms/7283-domestic-market.html

business dictionary. (2015). Retrieved from what is consumer markets: http://www.businessdictionary.com/definition/consumer-markets.html

the economic times. (2015). Retrieved from what is marketing mix: http://economictimes.indiatimes.com/definition/marketing-mix

friesner, t. (2014). marketing teacher. Retrieved from what is sales promotion: http://www.marketingteacher.com/sales-promotion/

salman, m. (2011). Notes for mba. Retrieved from what is international marketing: http://thembanotesforyou.blogspot.com/2011/06/definition-of-international-marketing.html

woolston, c. (2015). Health day. Retrieved from children like to love soft drink in malaysia: http://consumer.healthday.com/encyclopedia/food-and-nutrition-21/food-and-nutrition-news-316/kids-soda-and-obesity-644731.html

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Appendices

Diagram 1.3 Diagram 1.4

Diagram 1.5 Diagram 1.6

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