SCHOOL OF COMMUNICATION STUDIES

DIPLOMA IN MASS COMMUNICATION

MARKETING PRINCIPLES

MK201/AD2003

Marketing Plan

Lecturer : Ms Norwati

Name & Student ID : Nabila Nadia Adnan SCM005438

Puteri Khairunnisa SCM004573

Mohd Shafiq SCM005480

Irfan Rizqin SCM005259

Intake : January 2009

Due Date : 17th August 2010

MEDI-MESRA MANAGEMENT CARE SDN BHD

Executive Summary

Medi-Mesra Care Management Sdn Bhd was formed on August 3rd 2004 and operates in the

event management business over the past 2 years. Between the period time, Medi-Mesra Care or

well known as MMC Sdn Bhd had organized 5 times of the largest exhibition in Malaysia which

is Malaysian Bumiputera Real Estate Agents Company. The focus of the exhibition was to

promote quota lots of Bumiputera which have not successfully sold by the housing developers

before it been waived by the local authorities.

In this marketing plan report, certain topics will be discussed and highlighted in order to present

our marketing plan, such as our strategic plan: The Mission/Vision of the company.

The mission of the company is to help the housing developers and Bumiputera race to make the

right choice before investing in the real estate field. Our vision is that we are planning to set soar

with organizing exhibition for local and international products and we are sure it is going to be

successful with our trained and experienced management.

Followed by the strategic plan, certain analysis report will be elaborated such as on the SWOT

analysis, PEST analysis, Porter’s 5 Forces analysis and the Industry analysis.

For the SWOT analysis, this segment will touch on the Strengths, Weakness, Opportunities and

threats faced by MMC Sdn. Bhd. PEST Analysis will be focused on the Political, Economical,

Social and Technological side of MMC Sdn Bhd.

For Industry analysis, this segment will touch on the growth potential of Property Exhibitions in

Malaysia, specifically on Bumiputera Property (BPEX). In this case the critical target market has already

been identified, that is the Bumiputera market. Thus we should look at the other aspects of the analysis.

On the final part of the marketing plan, in case the company ended up on the losing side and has to

close its business in as far as Property Exhibition is concerned; the Contingency Plan will be

discussed with further elaboration.

Company and Service Description

Medi-Mesra Care Management Sdn Bhd is established on August 3, 2004 and has been operating

in the field of exhibition management for 4 years. During that period, Medi-Mesra Care

Management Sdn Bhd or better known as MMC Sdn Bhd had organized thirteen times the

largest exhibition of Bumiputera Property Exhibition (BPEX) which is the focus of the

exhibition to promote Bumiputera quota lots which not yet sold by housing developers and

indigenous people make the right choice before investing in Real Estate.

Bumiputera Property Exhibition is divided into three categories, namely, Selangor Bumiputera

Property Exhibition, Kuala Lumpur and the Klang Valley. So far a total of RM150 million in real

estate has been sold through exhibitions organized. The company plan to expand by organizing

exhibitions in a different field such as in promoting Malaysian products locally and

internationally. They strongly believe that they can implement them with the efficient

management and training.

Strategic Plan: Mission/Vision

1. To help ensure that the government can increase the Bumiputera equity in the property

sector.

2. To increase the sales of Bumiputera quota lots and bring awareness to potential buyers

and opportunities in real estate ownership.

3. To provide greater opportunities, especially for indigenous companies to expand their

business by participating in exhibitions in and outside the country.

4. To make the exhibition as a "stop center" to the buyers and developers so they can meet

to exchange ideas and views other than one way to powerful sales with more effective

ways.

Situation Analysis

SWOT Analysis

Preamble/Introduction

Medimesra Care Management Sdn Bhd is an event management company which focuses on

organizing Bumiputera Property Exhibitions (BPEX). The main reason in organizing this

exhibition is to help the developers to market their bumiputera quota lots which have not been

sold to the Bumiputeras prior to being released by the Local Authority. This will increase the

bumiputera equity thus helping the government in achieving 30 percent bumiputera quota. It’s

also to create awareness among bumiputeras on the property market and as a source of

information for those who intend to purchase property either for investment or own use.

Thus, this assignment is an insight of the SWOT Analysis conducted on MMC Sdn Bhd.

Strengths

1. Strong Advertising & Promotion Package.

MMC has a strong A&P package which it has established since its conception 4 years ago

via constant and continuous subscriptions to electronic media and prints. Each year the

company organized several property and real-estate exhibitions, focusing on the Bumiputera

Property Market aptly named as BPEX. For each of these events, the company spends a

minimum of RM100, 000.00 for A&P alone. TV viewers and radio listeners are constantly

reminded of the upcoming Bumiputera Property Exhibition every hour or so throughout the

country at least two weeks leading to the opening of the event and captions of this event can

be found in major local newspapers as well.

2. Wide and updated database of “faithful” exhibitors.

3. Central and strategic Location

Thus easy access to public viewing and able to attract walk-in visitors

4. Strong support/ good rapport with Local Authority /Ministry as well as venues.

Weaknesses

1. Dependency on single contractor for technical expertise and support.

2. Events are localized to KL/Klang Valley/Selangor Market

3. Not much marketing efforts to attract foreign visitors. The focus is solely on Bumiputera

market.

Opportunities

1. Expand into new frontiers. This company can advanced much further in the business of

event management. Presently it is one of the top event management companies’ in as far as

portraying property and real-estate industry in Klang Valley is concerned. By organizing and

trade marking the Bumiputera Property sector (BPEX) as its main event, this company has

already established a name in the market and is able to attract visitors and exhibitors alike. Thus,

it is high time for the company to extend its prowess in event management to new frontiers by

first expanding into related field of events such as interior decoration, landscaping and probably

organizing seminars and workshops on similar topics before going further such as organizing

exhibitions overseas.

2. So far the company has confined its exhibitions to Kuala Lumpur/Klang Valley/Selangor area

even though it has the capability and technical know-how to progress to other states. Although

the market in the present vicinity is still huge and a lot has yet to tap, this would be a good time

for the company to introduce itself and establish its brand outside of Kuala Lumpur. Property

market in other states specially Johor, Penang and Melaka are growing at a positive steady rate

and there is not much effort garnered to market them. Not only the company will have

opportunity to pioneer the property exhibitions in this state’s but it will also increase its database

of exhibitors, sponsors, partners and clients.

THREATS

1. A number of competitors may organize similar kind of exhibitions

- Which might reduce the number of exhibitors/visitors to BPEX.

2. The company daily chores are largely shouldered by a few key personnel. These well-

experienced and adroit sales persons and marketing personnel if not being properly looked after

might abscond or be pinched by competitor companies

3. Government policy on bumiputera quota maybe revoked.

PEST ANALYSIS

P - Political / Legal

a) Stability of government

Bumi quota – special for Bumi. Other party component law protest to eliminate the status

due to 1 Malaysia concept as mentioned by PKR recently.

b) Law

Termaktub di bawah perlembagaan fasa (154) hak bumi dalam bidang hartanah adalah

sebanyak 30%.

c) Foreign Trade

Anyhow, foreigners also can purchase the lot but without a bumi discount.

E – Economic

a) Interest rate

The purchase involves interest rate when they take bank loan. It is various from bank to

bank. Average bank interest is about 7% per year.

b) Inflation rate

High inflation – people have a tight budget to invest or purchase.

c) Unemployment level

The booming industry can create employment opportunity.

d) Wage/price control

Price much depends on the construction material – increasing every year / cost on

overhead.

S – Social Cultural

a) Lifestyle change

Choosing on property also someone lifestyle. Young investors prefer condo, with

facilities and security. Adults prefer landed property for them to have more space for

family gathering. A better environment creates healthy lifestyle, good area can create

better education facilities, and better communities can create better communication. The

developers also will study what type of demography before they limit a property to suits

the market.

b) Growth rate of population.

The growth rate is a factor in determining how great a burden would be imposed on a

country by the changing needs of its people for infrastructure (e.g., schools, hospitals,

housing, roads), resources (e.g., food, water, electricity), and jobs.

c) Health Care.

MMC has laid out in the company policy that all the permanent staff and their immediate

family are covered with medical insurance and provided health care. Medical and Health

cover is also provided to the probationary and part-time staff employed during the

exhibitions.

d) Level of Education.

In this company, the remuneration scheme commensurate with the level of education of

its employees. The minimum officers’ level of educations is diploma in sales and

marketing from any recognized institution of higher learning, whilst the other employees

have various levels of education amongst themselves. It is the company’s desire to be

able to support its permanent staff to further their education in the relevant fields in the

future.

e) Language

All the advertisements and A&P material used for this company is using Bahasa

Malaysia and English as a main medium of communication. All the staff of the company

involved in the exhibitions is well-versed in both languages. This is important as most

inquiries are in English and the medium of communication with the foreigners are usually

in English.

f) Demographic

Customers/consumers don’t age. They rather move from one demographic segment to the

next. As in the case of house buyers, the table below might be able to give a better insight

as to what the property buyers in Malaysia is like.

Age Preference Occupation level

20 to 40 Flats/Apartment/Condo Young executives

40 to 70 Landed Property

(Bungalow/Semi-D/Terrace)

Director/Senior Execs/

Business owners

g) Human Rights

A number of the company employees are from Chinese and Indian background. They’re

specially selected to cater strictly for the Chinese and Indian speaking customers but

since the first exhibition held in 2005, this has only happened twice as most would be

able to converse in English. The company also employed a partially disabled person as a

tea lady.

T – Technological

a) New Product

Excellent and first-rate developers will always come out with new and innovative

concept of living for their upcoming real estate projects by featuring eco-friendly

buildings which are incorporated with energy saving and new-fangled safety features.

These subtle technological advancements will give their projects an edge over others

even though the basic design concepts are still maintain the colonial, traditional or

modern outlook. MMC as the event organizer will always ensure that the houses and

building featured in its exhibitions are representation of these concepts. Some booth

are also allocated to companies wanting to feature ad introduce their latest and

techno-savvy products for housing industry.

b) Patent Protection

Once the newly-introduced features have been accepted and well-received by the

customers and the public, the next step is usually to patent it as it will protect the

company’s interests as well as giving exclusive rights to the products. As BPEX is

becoming a household name and gathering more and more customers, MMC has

taken a wise decision by patenting its BPEX logo so as to ensure no competitor

company is able to use it in their Marketing Strategies.

c) Internet Availability

In this internet-savvy world today, it will be considered a great sin if a company

failed to seize the opportunity to utilize the internet as its marketing tool. Thus,

MMC, ever since its conception, has already registered its website and use the

internet as a marketing tool. A large proportion of its sale and business is conducted

via internet.

d) Research and Development

Successful real estate companies usually re-invest a bigger percentage of its earnings

for R&D as in the long run it gives them better quality of building materials and

designs. This gives them an edge over their competitors and of course will ensure

them a much better Return of Investments. In the case of MMC as an event organizer

for Property Exhibition, R&D would also means using the latest gadgets, concepts

and materials for the booth and lay-out of the exhibition area to make it more

customer-friendly. This would attract more visitors who are actually potential house-

buyers. Special booths are also set-up for displays of latest systems and R&D

programs in the real estate industry for public viewings.

Porter’s 5 Analysis

1. Rivalry

MMC has several competitors in the same line on the market, i.e, Real Estate Event

Guide Malaysia Sdn Bhd and Pro Teck Sdn Bhd.

2. Threat of Substitutes

The threats of substitutes faced by MMC would be the real estate developments, such as

Bukit Kiara properties for example, as they are able to conduct their own property event.

3. Buyer Power

The buyer power threat faced by MMC Sdn Bhd is the economical state of the consumers

in Malaysia. Should the economy is faced with setback or high inflation, the prices of real

estate values would increase, resulting in deterrence for the consumers to buy or visit the

exhibition events. It is also depends on whether the consumers would switch to other

competitors such ASI Solutions and Real Estate Event Guide Malaysia.

4. Supplier Power

A good thing of MMC is that it is faced with few substitutes, which leads to BPEX

holding a high supplying power. This enables BPEX to control the prices set for the

consumers.

5. The Threat of New Entry

Recently in 2008, ASI Solutions, originally a developer company has entered the the

Market and expanding their field on Real Estate Events as well.

INDUSTRY ANALYSIS

This Segment will touch on the growth potential of Property Exhibitions in Malaysia,

specifically on Bumiputera Property (BPEX). In this case the critical target market has already

been identified, that is the Bumiputera market. Thus we should look at the other aspects of the

analysis.

It is known fact that property market is on the rise almost everywhere in the world as it

corresponds directly to the population growth. This is especially so in major cities like Kuala

Lumpur where the ever-increasing population growth has sparked a rapid expansion on property

sector.

Potential customers for real estate and property market in Malaysia, especially Kuala Lumpur is

huge and rapidly growing. This is mainly due to influx of population to find a better living in this

booming city. For the past 5 years alone, the average sale churned out during each Bumiputera

Property Exhibition exceeds RM 30 million. This and other relevant statistics not only shows

that the real estate and property demand in Kuala Lumpur correspond directly to the population

growth but also due to incursion of foreign investors and those who make Malaysia as their

second home.

But the rates at which the properties in KL are being built have so far lags behind the demands.

The labour shortage and lack of space are among the deciding factors. The dire need for housing

and real estate has somehow escalate the price of properties, not only in Kuala Lumpur vicinity

but also in the Klang Valley, to some making it almost impossible for the locals to own property

in the upscale and chic area.

The government of Malaysia is very much aware of these situations and has identified and

planned well ahead areas to be developed and populated. The housing developers are offered

many real estate projects and incentives to complete to complete them in time. This win-win

ambience has made Kuala Lumpur as the most popular place to reside. It is also a favorite

second-home location to foreign investors.

How does this benefit companies like MMC? Being an early bird in the property exhibition

sector, MMC which has already trademarked the BPEX as its main ‘product’, stands a very good

chance of surviving in this competitive market. The market is so vast and the competitors are not

that many. There are huge potential to take extend BPEX into new boundaries and frontiers, such

as, holding exhibitions outside of Klang Valley and participating in property tradeshows and

exhibitions overseas.

Marketing Program

a) Target Market and Positioning

Presently, the main target markets for the BPEX are bumiputeras from various

earning categories. This is mainly due to the fact that the developers involved in the

exhibitions have a wide range of housing categories to offer, be it in Klang Valley or

even in the neighboring states.

A Market and Consumer Demographic Analysis by a top Real Estate Agent

reveals that 35% of the population in Klang Valley is between 30-60 years of age and

they fall into the high earning group. Slightly less than half of the population is of the

middle income group. Thus, each group or category of income has their own perception

as to what type of property, its quality and lifestyle offered by the product. BPEX has

always offered products that cater to all categories of population.

b) Product Strategies

MMC is able to survive all these 5 years since its first exhibition mainly due to

the fact that it places customers above all else. It does not favor a special product or focus

on just one or two categories of housing or real estate but rather have a mix of products

ranging from high-end bungalows and condos right down to the competitively priced

apartments and flats on the table.

The company on its own accord conducts Market and Consumer Analysis every

quarterly to feel and understand the actual market desire and demographic needs. This

will then be portrayed to the relevant developers who will be chosen to participate in the

exhibition.

The company is very cautious in choosing its venue to hold its exhibitions so as to

ensure a steady flow of visitors. The favorite venues are the Mid Valley Convention

Centre, Kuala Lumpur Convention Centre and Putra World Trade Centre.

Another Strategy to consider in order to attract more visitors is to hold the

exhibition a month or so prior to festive seasons or during the holiday season.

c) Pricing Strategies

Each exhibition held by MMC usually attracts about 80 developers as

participants. In order to keep them coming back for the next exhibition and retain their

participation, MMC has often given special discount for each type of booth; the amount

is usually ten percent of the total price.

Developers are also urged to give special discount to house buyers.

d) Promotional Strategies

MMC invested a large percentage of its income into Advertising and Promotion

(A&P) for each exhibition. This includes TV ads and trailers, radio ads and prints in

major newspapers at least two weeks leading to the opening of the event. By doing so, the

company has more or less assured of a trail of visitors to the exhibition. Apart from these,

buntings and posters of the upcoming exhibitions are also posted at strategic locations

such as Toll Plazas, Road junctions and Highways. Ads are also posted in the website for

the exhibitions.

Financial Projection

2009 2008RM RM

REVENUE 974,083 745,893LESS: DIRECT COSTComission 55,455 33,200Banner and Poster 12,060 18,347Hall rental 277,604 183,148Media advertisement 230,286 220,341Other direct cost 27,599 25,700

603,004 480,736GROSS PROFIT 371,079 265,157

ADD : OTHER INCOMEInterest bank received 214

371,079 265,371

LESS : EXPENDITUREAdministration and Operating ExpensesAccounting Fee 2000 2000Audit Fee 2,800 2800Bank charges 176 144Compound and Penalty 75Courier and postage 3,578 3023Depreciation 35,537 34,470Donation and gift 4,000 1,200Entertainment 4,525 5,385Fuel,parking and toll 9,564 12,765Filling fee 300 300Licenses and permits 2,930Newspaper and periodical 319 81Office rental 13,200 9,900Printing and stationary 9,814 8,942registration fee 3,419Roadtax and insurance 3,441 3,379Seminar and course fee 330Secretarial and other fee 1,130 1,100Tax fee 7,250(CONTINUED) 15,306 12,808

Telephone and faxTravelling and accomodation 380Upkeep for motor vehicle 8,510 10,030Upkeep for office 2,515 1,172Upkeep for office equipment 1,735Water and electricity 2,817 1,388

130,167 116,731

Staff costDirectors remuneration 180,000 120,000EPF and SOCSO 4,345 480Medical fee 1,031 4,259Salary and allowance 43,435 28,250Staff refreshment 153 1,276

228,964 154,265

Finance costHire purchase interest 8,556 1,634

8,559 1,634TOTAL EXPENDITURE 367,687 272,630NET PROFIT/(LOSS) BEFORE TAXATION 3,392 7,259

Contingency Plans

In case the company ended up on the losing side and has to close its business in as far as

Property Exhibition is concerned, it has already identified and tried out an option, which is

ASDEX. ASDEX is Anjung Seri Dream Home Exhibition, an exhibition on Home Décor items

and Landscaping. MMC has held the ASDEX for two years in a row and find it can be groom as

a good business.

Reference

Nor’ashikin Taib – Managing Director and Business Owner