WBB10202 Innovation Management Project Title: Flytrap
Name (Student ID): 1
Mohamad Hanif B Nayan (50207211542)
2
Mohammad Ariffil B Abdul Rahim (50207211500)
3
Mohd Azmiza B Ahmad (50207211549)
4
Jonathan Paran Lia (50207110328)
Prepared for: Madam Salwah binti Che Mat
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Declaration
We hereby declare that this is all our own work with references herein stated wherever possible.
______________ ____________________ _____________ ______________ _____________ _____________ ______________ _____________ ____________(sign ______(sign here) Name: Mohamad Hanif B Nayan
______________ ____________________ _____________ ______________ _____________ _____________ ______________ _____________ ____________(sign ______(sign here) Name: Mohammad Ariffil B Abdul Rahim
______________ ____________________ _____________ ______________ _____________ _____________ ______________ _____________ ____________(sign ______(sign here) Name: Mohd Azmiza B Ahmad
______________ ____________________ _____________ ______________ _____________ _____________ ______________ _____________ ____________(sign ______(sign here) Name: Jonathan Paran Lia
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Acknowledgement First of all, We would like to express our unlimited gratitude to our family who has constantly been supportive throughout the project development. They have been the ones gave us strength working on this project until its completion. We are very grateful having them in my m y life. We would like to express my sincere appreciation to my lecturer, Madam Salwah Binti Che Mat for her support, advices and guidance in finishing this project which is titled Flytrap. This project report was prepared for WBB10202 Innovation Management. This report is based on the methods given by the university guidelines.
The The project “Flytrap” would not have been realized without the guidance of the many. We would like to use this opportunity to express our gratitude toward these people namely:
●
Madam Salwah Bt Che Mat
●
Mohamad Hanif B Nayan
●
Mohammad Ariffil B Abdul Rahim
●
Mohd Azmiza B Ahmad
●
Jonathan Paran Lia
Lastly, deepest thanks and appreciation to others for their cooperation, encouragement, constructive suggestion and full of support for the report completion, from the beginning till the end. Also thanks to all of our friends and everyone, that have been contributed by supporting our work and help us during the project progress till it is fully complete
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Executive Summary
This marketing plan is to educate the potential clients about the production involved and the best possible way to market this product. First of all, we would cover the introductory part of our product. This product is based on the known issue and the function of the use of the product will resolve this matter. We cannot simply design based only on the customer needs, but also the functionality that will benefits to the user. We also include the sample drawing with stated dimension and also the parts. The cost of the product based on the total operational cost over total number of output that we want to produce. The content of this plan describe about situation analysis which shows the market analysis based on description and attributes, needs, trends, and growth. Then we do SWOT analysis which is describe about the strength, weaknesses, opportunities and threat of the product that happen when we do the product. Besides, we also compare our product with our competitors whom are Bonding Technology Resources and Esona Technology. By using broad macro environmental trends may affect our successful of the product which consider the economic, population changes and also technological factor. For the marketing strategy, we focus on our mission to design and innovate an ordinary trap. So, we are making this new brand innovation to help on this issue. The business we are involved is making the cleanliness of product usage. We are specific on the objective of our marketing baseline on buyer that need to our product. From our survey we are targeting on residents near garbage dumb and restaurant that are always having a problem with flies. This is the common problem and it suited for us to sell this item to this niche market. We have done market research so that we can determine more potential target area and potential target market. .
Unlike any other product, theirs are not user-friendly. The marketing strategies contains
product or service mix, reasonable price, sales promotion, distribution and also marketing research before/after or even when doing the sales. Last but not least, the financial plan shows the break-even analysis of the product, Sales forecast for yearly cost and also the expense forecast which inclusive of salary, promotion expenses, and market research. For this reason, this item will be an easy sell in optimal amount for profit making.
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Introduction
Fly traps are an ancient solution to the fly problem. Surprisingly not used as much today. You have a fly problem and the usual response is to grab a can of poison. The main problem with poisons are that they kill not only the bugs you want dead, they also kill the ones you might like to keep alive, not to mention the idea of yourself or loved ones coming into contact with them. Over the thousands of years Humankind has dealt with garbage and other wastes, they have had to deal with the flies. Though flies are dirty and carriers of disease, the world would be buried in crap and carcasses if it weren't for their intervention. However, they carry disease and are really dirty, so control is an issue. This trap is pleasant enough to keep in the house and works much better, is more efficient, than any of the other methods commonly used. Before we can defeat flies, we must understand it habits. Besides being attracted to feces, garbage, and unwashed individuals, flies are just plain too fast to catch. So to defeat it we must study about it. They fly straight up and they go towards the light.
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Situation Analysis
The product and its attributes, needs, trends, and growth are shown and forecasted in this section. SWOT analysis previews the strength, weaknesses, opportunities and threat possibilities of the product in near future. Included are the detailed comparison of our product with our competitors whom are Esona Technology and others. A broad Macro Environmental trends study the impact of our product that consider the economic, population changes and also technological factor.
a) Market Summary Our target market are residents and restaurants which are based in the Klang Valley with high population. The residents in Klang Valley area with more than 6 million people, and is the center of trade and industry in Malaysia., this is the most viable target market and it is the most suitable for market penetration.
i. Market Target Diagram 1: Geographical Map of Klang Valley
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ii.
Market Needs ●
Quality products
● Efficiency ● Cleanliness ●
Friendly user
iii. Market Trends ● Recycle ● iv. Market Growth ●
Market is always growing but now and then, the product lineup need to refresh over time.
●
Market size can grow beyond borders with internet sales thus providing a secondary market target that can be manipulated by marketing more fiercely
:
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b) SWOT Analysis SWOT analysis is a strategic a strategic planning planning method used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a project a project or or in a business a business venture. This would allow achievable goals or objectives to be set for the organization.
Strengths
Trap sticker can be replaced
Easy to use
Eco-friendly
Weaknesses
Large
High prices at first time
Opportunities
Our advanced technologies are available to make human works easier.
Available to expand our product to the market since others company not takes seriously about their marketing with the same product.
Threats
Others company may attract customer with the same product in the future.
We are exposed to rises in the cost of the technological and equipments that we used for the product.
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c) Channels of Distribution
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III. Marketing Strategy
a) Mission Statement
Our mission
To penetrate local market extensively throughout Klang Valley
To gain the high margin for the product
Our Vision
Export our product to Southeast Asia region
Expand our coverage to cover the whole Asia continent
b) Marketing Objectives We are dedicated to our marketing objectives based on a buyer required for our products. From our study, the objective that we aim is:
The residents and restaurant owners that always have their own problems with the flies
To make user easier to use use on this item and also prevent the user be fed up with the flies. The difference of our products with other vendors we use it, as a portable trap rather than traditional trap and it is easier because it can be replaced
Our products will offer an introductory price for about 70% of the actual price for limited period. It will give any of our target market affordability to buy. It will make a product to sell larger amounts target markets satisfied with our products.
For the target, we aim at the Klang Valley area. We chose this because we are doing a survey of the area with positive feedback. We will do some market research so that we will determine a potential target areas and target potential markets.
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c) Financial Objectives We wish to accomplish the highest profit margin without compromising the low price we aimed to sell because we want to achieve higher market penetration.
We targeted to have the company listed on MESDAQ within MESDAQ within 10 years of operation
Allocation of 50% for Company Operation and Expansion while 30% for Research and Development and Development and the rest will be kept as company assets.
Have price revision done revision done on monthly basis to basis to better adjust to the
contemporary market situation
Profit Allocation Operation and Expansion
20%
Research and Development
50% 30%
Assets Expediture
Price (Market Control) 10% Expensive Medium
50% 40%
Cheap
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Financials Presented here are the break-even analysis, sales forecast and expense forecast for the next financial year after production, this acts as guidelines to measure sales and profits for finance department approval.
Break-even analysis a) Variable cost Approximately Approximately RM 4.50 ●
Box: RM0.30
●
Glue:RM0.10
●
Wrapper:RM1.00
●
Perfume:RM0.60
●
Labor cost: RM 1.50 per item
b) Fixed cost Rental = RM 200.00 Labor cost = RM 500.00 Utility bill = RM 100.00 Others = RM 50.00
Sales = Total cost + Profit -----------> (1) Where, Total cost = Fixed cost + Variable cost -----------> (2)
At breakeven, breakeven, Profit = RM5.50, with unknown Quantity sold, Q.
Sales = Fixed cost +Variable cost + 0 --------> (3)
Variable cost to produce Q produce Q product = product = RM4.50*Q
Sales of Q product= product = RM10*Q
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Using (3), put in value of Variable cost and cost and Fixed cost
10Q
= 4.50Q+850
850
=5.5Q
Q
=850/5.5
Q
=155
Breakeven occur when, our company can sell 155 items.
Sales Forecast
Final Year 2012
Final Year 2013
Final Year 2014
Unit Sales (Units) Flytrap
≤ 3, 000
5,000
9,000
Unit Price (RM)
± RM 10
± RM 10
± RM 10
≈ RM30, 000
≈ RM50, RM50, 000
≈ RM90, RM90, 000
Flytrap
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