Marketing Management (GSM5200) PROPOSING A MARKETING PLAN FOR MINGOMINGO SOFT ICE CREAM 1.0 EXECUTIVE SUMMARY Malaysia has been known as the place for various kind of delicious food. Thus, the food industry in this country prospers along the way since before independence. As time evolves, influence from various parts of the world began to take place in this region, creating a myriad of delicacies enjoyed by Malaysian. One of the western deserts being cherished by Malaysians is soft ice cream. For the purpose of this project, we chose a Malaysian company which sells soft ice cream along side with its foreign competitors. The said company is MyBoss Enterprise, which is selling MingoMingo brand soft ice cream. With price as low as RM1 per cone, customers could enjoy delicious yet not too sweet soft ice cream. Currently, the brand is offering catering services at events especially wedding receptions and school’s canteen day. MingoMingo adds another variety of soft ice cream competitor in Malaysia market. MingoMingo is targeting low to middle income customer with its affordable price per cone. Since everyone could enjoy the soft ice cream, the company decides not to set any age limit for its target customers. The opportunity 1
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Marketing Management (GSM5200)PROPOSING A MARKETING PLAN FOR MINGOMINGO SOFT ICE CREAM
1.0 EXECUTIVE SUMMARY
Malaysia has been known as the place for various kind of delicious food. Thus, the
food industry in this country prospers along the way since before independence. As
time evolves, influence from various parts of the world began to take place in this
region, creating a myriad of delicacies enjoyed by Malaysian.
One of the western deserts being cherished by Malaysians is soft ice cream. For the
purpose of this project, we chose a Malaysian company which sells soft ice cream
along side with its foreign competitors. The said company is MyBoss Enterprise,
which is selling MingoMingo brand soft ice cream.
With price as low as RM1 per cone, customers could enjoy delicious yet not too sweet
soft ice cream. Currently, the brand is offering catering services at events especially
wedding receptions and school’s canteen day. MingoMingo adds another variety of
soft ice cream competitor in Malaysia market.
MingoMingo is targeting low to middle income customer with its affordable price per
cone. Since everyone could enjoy the soft ice cream, the company decides not to set
any age limit for its target customers. The opportunity lies for this brand to fill up the
deserts corner in restaurant, food courts and malls. The brand owner sees Wafi Soft
Ice Cream as the closest competitor since it has similar modus of operation and almost
same product. He also sees McDonald’s sundae as a reliable benchmark.
The current brand owner is Mohd Syakir Bin Sa’adon, the Manager of MyBoss
Enterprise (SA0084267-U). He started as a distributor for Mingo-Mingo brand during
his undergraduate in year 2010. Later in early 2013, he bought over the brandname
when the previous owner decided to give up the business.
The brand is expecting 50-100% increment of sales turn over next year, given that
additional soft ice cream dispenser are acquired. For 2014, the projected sales amount
is RM650,000 (50% increase compared to 2013) and there will be additional 1
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Marketing Management (GSM5200)PROPOSING A MARKETING PLAN FOR MINGOMINGO SOFT ICE CREAM
machine. Meanwhile for 2015, the projected sales is RM1,200,000.00 (85% increase
compared to 2014) and there will an additional 2 machines and a lorry.
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Marketing Management (GSM5200)PROPOSING A MARKETING PLAN FOR MINGOMINGO SOFT ICE CREAM
2.0 PROBLEM STATEMENT
In general, the main concern that we need to address is how the product preposition
would enhance the customers’ awareness towards the MingoMingo brand. As public
knows the earlier company who sold the MingoMingo ice-cream was declared
bankrupt. Another concern is how the proposed marketing strategy able to expand the
market growth for the MingoMingo.
On the operation point of view, MingoMingo is looking forward to increase its profit
as it acquires more units of distribution equipments like the ice cream dispenser and
van. Along the way, the brand is also looking to have more staffs to handle the
business operation.
The opportunity which emerges in the journey of achieving the ideals for the brand is
to get more financial support from government bodies and banks. The procedure
which has been set up by those bodies requires tedious documentation, which is costly
to enterprise company.
In response to this problem, our group proposes to investigate several options for
making the brand more profitable. We plan to investigate the options for increasing
the brand sales while keeping the cost low. We will also find ways for the brand to
gain financial assistance in acquiring its fixed assets as it expands the business.
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Marketing Management (GSM5200)PROPOSING A MARKETING PLAN FOR MINGOMINGO SOFT ICE CREAM
3.0 OBJECTIVE OF THE REPORT
This report is written for the purpose of recommending a marketing plan for
MingoMingo brand to gain its strength in term of its 4’Ps.
This report also includes short term and long term sales turn over projection to be
achieved after implementing the marketing strategies, with elaborations on selected
strategy or future expense, sales and break-even analysis.
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Marketing Management (GSM5200)PROPOSING A MARKETING PLAN FOR MINGOMINGO SOFT ICE CREAM
4.0 COMPANY BACKGROUND
4.1 Introduction
Kasturi Klasik (M) Berhad was established on 26th February 2007. The
establishment aimed to market MingoMingo ice cream brand. The company
was lead by Mr. Ramli Bin Mazlan. At the peak of its success, the company
owned more than 100 outlets and 500 soft ice-cream dispenser nationwide.
The company receives good support from the government and financial
institutions.
4.2 Company History
Mr. Ramli began to sell soft ice cream in 2006 in a small kiosk at a
supermarket in Jalan Masjid India, Kuala Lumpur. Due to overwhelming
response from the public especially during public holiday and festive season,
Kasturi Klasik (M) Sdn Bhd (763766-H) was formed and the soft ice-cream
has been registered as MingoMingo brand. Not long after that, the company
has been upgraded to Kasturi Klasik (M) Bhd.
The company aimed to produce its own soft ice cream by using technology
from USA and receive massive limelight during Buy Malaysia Campaign on
the next consecutive year.
In early 2009, the company expanded its business to Indonesia.
4.3 The Founder
Mr. Ramli Bin Mazlan is the founder and Managing Director of Kasturi Klasik
(M) Sdn Bhd. His passion for ice cream has led him to dream of a soft ice-
cream empire of his own, and he is pretty sure that he would achieve the
dream. Forking out a paid-up capital of RM2,000,000, he established and
incorporated Kasturi Klasik (M) Berhad.
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Marketing Management (GSM5200)PROPOSING A MARKETING PLAN FOR MINGOMINGO SOFT ICE CREAM
4.4 Packages Offered By Kasturi Klasik
a) Berlian Package
• Price : RM 50,000.00
• 1 customized 1 tan lorry
• 1 unit ice-cream machine
• 1 unit generator Yamaha 5kva
• 1 unit pop corn machine / water machine
• 1 unit mini freezer
• 4 units banner
• 4 uniforms
• Training & Consultation
• Raw material for the first 1,500 units ice cream
• Technical Support
• Self Managed
b) Intan Package
• Price : RM 30,000.00
• 1 complete set of ice-cream kiosk
• 1 unit kiosk
• 1 unit ice-cream machine
• 4 units banner
• 4 uniforms
• Online business site
• Training & consultation
• Raw material for the first 1,500 units of ice cream
• Technical support
• Self-managed
c) Emas Package
• Price : RM 15,000
• 1 unit ice-cream machine
• 2 unit banner
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Marketing Management (GSM5200)PROPOSING A MARKETING PLAN FOR MINGOMINGO SOFT ICE CREAM
• 2 uniforms
• Online business site
• Training & consultation
• Raw material for the first 1,500 units of ice cream
• Technical support
• Self -managed
4.5 Apprentice Entrepreneur Program
This is the strategy, which has been implemented by Kasturi Klasik (M) Bhd
to attract investors to invest in their company.
Investor will buy the ice-cream dispenser machine and they need to manage
the business on their own, with training provided by the company beforehand.
However, if the investors decided not to manage the business, they could rent
the soft ice-cream vending machine to Kasturi Klasik (M) Bhd and receive
fixed amount of rental monthly. The rented soft ice-cream vending machine
then will be lend to unfortunate young people who cannot afford to buy the
soft ice-cream vending machine. These unfortunate youngsters will receive
commission based on their ice cream sales.
This strategy is found to relieve company from the burden of buying the soft
ice-cream vending machine all by the company money. Instead, the company
could get the investors to do the job for them. In order to utilize the machine
and increase their product stock flow, the company could benefit from the
unfortunate youngsters effort to sell their ice cream. At the same time, the
company could be seen by the public as performing a good deed to the society
by providing job to the unfortunate youngsters.
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Marketing Management (GSM5200)PROPOSING A MARKETING PLAN FOR MINGOMINGO SOFT ICE CREAM
4.6 New Brand of MingoMingo
On January 2013, Kasturi Klasik (M) Berhad has been declared bankrupt. The
MingoMingo brand then was taken over by one of its distributor, Mr. Mohd
Syakir Bin Sa’adon.
Back in 2010, Mr. Mohd Syakir Bin Sa’adon purchased the Intan Package
worth RM30,000 to become a part-time distributor for MingoMingo soft ice
cream. He was 27 years old back then, a Polymer Engineering student in
Universiti Teknologi MARA, Shah Alam. The opportunity that he
encountered during the business is the location provided by the university for
him to sell MingoMingo soft ice cream is not strategic. Besides, the fixed
rental for the business location need to be paid in advance monthly, regardless
during the semester break or not.
Mr. Mohd Syakir Bin Sa’adon decided not to open his business for franchise
due to complexity of managing the franchisee especially ensuring the same
quality of product and services.
4.7 The Company’s Current 4’Ps
Currently, the company’s target market covers the age range of 2 years old
toddlers till the senior citizens.
a) Place
The soft ice cream will be distributed based on invitation only. The location of
the distribution purely depending on the location of the event. Normally, the
soft ice cream will be distributed in wedding reception and school canteen
day.
b) Price
The price of the soft ice cream is RM1 per cone.
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Marketing Management (GSM5200)PROPOSING A MARKETING PLAN FOR MINGOMINGO SOFT ICE CREAM
c) Product
The cost for each cone of the ice cream is 50% of the selling price. In other
words, the cost for each cone of ice cream is 50 cents. The soft ice cream is
available in chocolate, vanilla, strawberry and combination of any two of the
flavors. The pleasant taste of the soft ice cream is loved by everyone,
including those who do not prefer overly sweet ice cream.
The Point of Difference (POD) of the product is the ice cream mixture is not
injected with air, resulting a richer, milkier taste. At the same time, the cone is
tasty as it is made of the ingredients used to make biscuit, compared to the
other cone, which is tasteless.
d) Promotion
Currently, MingoMingo is being promoted via word-of-mouth. Clients can