Marketing Plan for Halal Frozen Food Essay Example

Marketing Plan for Halal Frozen Food Essay This marketing plan was specifically created for Halal Frozen Food Retail Shop. Executive Summary Halal is an Arabic word which means permissible or lawful. In the Holy Quran, God commands muslims and all of mankind to eat of the halal things. Nowadays, demand for Halal foods is increasing not only in the U. S. , Europe and Canada, but also in the Middle East, Southeast Asia, North Africa and Australia. In Malaysia the need for halal food showing a positive grow. An awareness campaign about halal food through media electronics and tabloids gave a good opportunity to the Malaysian’s entrepreneurs to produce verities of halal food product like frozen food, beverage, snack and etc. The market for halal food in Malaysia still big and not fully tapped. Our first frozen food retail shop will be located at Bangi Kompleks PKNS or somewhere nearby neighbourhood. Due to high number of muslim community, the area is the best place for our first outlet for frozen food retail shop. 2. 0 Situation Analysis In Malaysia retail shop is very common and it is the best option to those who need to save their time in looking on specific product. Some of well known retail shop in Malaysia like 7-Eleven, 99 shop and among bigger like Tesco, Carrefour and Giants. Biggest retailers always mix the halal and non halal product lumped together. Our retail shop repertoire varieties of halal frozen foods like fish, seafood, meat products, potato products, vegetables, fruit, pizza, ready meals, Malaysian traditional food, bakery products and desserts. 2. 1 Local Market Summary Consumer expenditure in food consumption is very important in daily life. We will write a custom essay sample on Marketing Plan for Halal Frozen Food specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on Marketing Plan for Halal Frozen Food specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on Marketing Plan for Halal Frozen Food specifically for you FOR ONLY $16.38 $13.9/page Hire Writer Most people who are very busy with work prefer having the food that can be serve less than an hour. However, most of the foods which ready in the market nowadays are not served according to Islamic requirement and the halal status is hesitant. Likewise, the need to have one stop centre of frozen food halal product is seemed to have an impact to the Muslim Community. Our aim first is to create awareness and the needs for them to have one halal stop centre. Bangi was a famous city as an elite area because of most of UKM lecturer stay in that area. Most of them considered potential customer to our business. Bangi comprises of condominiums, bungalows, terrace houses and apartments. Apparently, more than 8 condominiums and apartments are already complete. All the residences are for sale and rental, so it is expected that the household income is within RM50, 000 $100,000 per year. 2. 2 Overseas Market The market of overseas will be tapped once our positioning in the local market is strong. [pic] 2. 4 Market Needs †¢ Quality certification: All products must be fully certified by JAKIM or Halal Bodies. †¢ Quality product: All products must reach to certain ISO standard before it is marketed to the consumers. Accessibility: Product can be delivered direct to consumer. †¢ Customer service: The buyer will be impressed with the level of attention that they received. †¢ Competitive pricing: All products will be priced competitive (possible because of selling direct to buyer thus avoiding middle man/third party). †¢ High quality product: produce will fulfill international requirement. 2. 5 Market Trends The market for halal frozen food is growing in Malaysia. From my observation verities of the frozen food products especially produce by small medium enterprise are still lacking in marketing even though their quality is equal from bigger company. Our retail centre will help to promote them so our customers have lots of option to choose. As a muslim country, the supply of halal products is good but the consumers acceptance is still low and indifferent. The situation contributes towards this trend are: †¢ Market supply: Many food manufacturers are now producing halal product under JAKIM certification. However, many big retails convenient stores are not willing to accept their products due internal competitions and other factors. †¢ Presentation/appearance: Presentation must consist of Islamic Element to display the concept under Halal Food. Health consciousness: Islamic products are basically upholding cleanliness as part of the preparation process. Therefore, halal food Asian people have beginning to be more health conscious and we will select the best product that has been produce using proper technique inherently healthy product. 2. 6 Market Growth In the current economic situation the market for halal frozen is gr owing. The market for frozen food in Malaysia increased at a compound annual growth rate of 3. 6% between 2003 and 2008. The frozen meat products category led the frozen food market in Malaysia, accounting for a share of 42. 9%. 2. 7 SWOT Analysis The following SWOT analysis captures key strengths and weaknesses within the company and describes the threats facing the Retail frozen Food Halal Shop. 2. 7. 1 Strengths †¢ Untapped market for retail frozen food halal products is still in great demand. †¢ Halal Frozen Food Industry Agro technology and support available from government agencies. †¢ Financing available from MARA and Government Grant. †¢ High-quality and healthy product offerings that exceed competitors offerings in term of price, quality, and service. †¢ Higher than industry margins due to production efficiencies and direct distribution to customers. 2. . 2 Weaknesses †¢ New emerging products and lack of concept awareness. †¢ A limited marketing budget to develop brand awareness. †¢ Malaysian consumers remain price conscious, regardless of an interest in branded goods, and investment in innovation must therefore be measured †¢ against the limited price at which such goods c an be sold †¢ Consumer preference for fresh food, even at the premium end of the market, limits processed and frozen food opportunities in the country 2. 7. 3 Opportunities †¢ Inflation – demand for halal food increase. †¢ Growing market with a significant percentage of the target market . The ability to develop long-term commercial contracts which should lower costs associated with product and price management. †¢ Local and overseas market †¢ The government is actively encouraging investment in the agro-industries, offering a new package of incentives to those entering the market †¢ Food and beverage innovation remains a proven growth avenue, creating opportunities for manufacturers long after market maturity is reached †¢ Malaysia’s emerging status as a regional halal centre of excellence gives it excellent competitive differentiate and should help it attract investors 2. . 4 Threats †¢ An out of state, already established comp etitor that has decided to make customer service and flexibility their selling point. (The halal Frozen food retail shops will focus on target market, product quality and exceptional customer service) †¢ Product Variation: Threats on variation products from non halal food manufacturers. †¢ Should either/both Germany’s Metro or US-based Wal-Mart enter Malaysia as rumored, competition would rapidly intensify making life difficult for even mid-sized industry players. 2. 8 Competition There are three types of competitors that Red chilly faces: . Similar local farmers: These are very similar operations to Halal Frozen Food Retail Shops, sometimes larger or smaller. There appears to be room in the market for multiply as most of the retailers sell out their products each day at the same target market. 2. Large distributors: who will normally monopolies in bulk buying from farmers and control the market/price. 2. 9 Product Offering Frozen Food Retail Halal Store will concen trate solely in marketing and distributing only halal product to the customers. 2. 9. 1 Keys to Success Exceed the customers expectations. Halal Frozen Food Retail Shop will: †¢ Increase number of halal products. †¢ Create awareness about frozen food halal products. †¢ Generate repeat business. †¢ Increase the transactions amount per whole seller/direct customer. †¢ Increase the number of whole seller/direct customer by creating loyalty program. 2. 9. 2 Critical Issues Due to the growing number of retail shops in Malaysia, the retail halal frozen food store must have its own branding in order to capture the specific market. The awareness for halal food requirement must be emphasized from time to time by the product owner or the government. . 0 Marketing Strategy Halal frozen food retail shop marketing budget is very limited so the strategy will be simple. We will develop direct relationship or partnership with MARDI and whole seller/Chilly based food processor locally and overseas halal frozen food based producers (e. g. Muslim Best in Malaysia). This partnership strategic partnership is very es sential in ensuring the ready market for halal frozen food. 3. 1 Mission Retail halal frozen food mission is to provide the highest-quality, healthy best selected product. We exist to attract and maintain customers. When we adhere to this maxim, everything else will fall into place. Our services will exceed the expectations of our customers. 3. 2 Marketing Objectives 1. To maintain positive growth each year. 2. Experience an increase in new customers who are turned into long-term customers. 3. Generate ‘brand’ equity among whole seller and direct customer. 3. 3 Financial Objectives 1. Realize a 10% increase in gross profit margins through efficiency gains every year. 2. Reduce the overall cost associated with product delivery by 10% by the end of the first year. 3. 4 Target Markets Halal frozen food retailer has two distinct customers: . Direct Retailer/consumers. This is where we sell direct to the big retailer (hypermarket) or small time retailer (wet market vegetables seller) who will in return sell it direct to customer. 2. Whole seller. Work together with company producing halal frozen food based product. To be even more specific, will be working together in setting up strategi c alliances with big and establish halal frozen food based product produces locally and overseas. The advantage of having this type of relationship is to guarantee market which is very important in the initial part of Red Chilly. . 5 Positioning Market positioning for halal product is based on the following: †¢ Professional in dealing with it customer †¢ Flexible. †¢ Produce high-quality producer. †¢ Reliable. 3. 6 Strategies The single objective is to position halal frozen food retail shop as one stop centre for halal food. Anybody who walks in to buy any product from our store must not be doubtful of the halal content of the products. The readily market of halal food must makes halal products to be easily marketed and sold to the consumer. The marketing strategy will seek to first create customer awareness regarding product and services offered, develop the customer base, and work toward building customer loyalty. This message will be communicated through a variety of methods. The first method will be through JAKIM, MARDI, other government agencies and later testimonial by working together with establish chilly based produces in the country. 3. 7 Marketing Mix Halal frozen food retail shop marketing mix is comprised of the following approaches to price, distribution, advertising and promotion, and customer service. Pricing: All halal frozen food pricing scheme will be divided into two that is for Bulk buying and direct retailer/customer. †¢ Distribution: Consumers can collect the products at the store or have them delivered according to the arrangement agreed. †¢ Promotion: A mixture of advertisements and networking will be used to increase visibility for retail halal shop for the local. †¢ Customer serv ice: The feedback from customers is very important in maintaining the quality of the service and products offered to the customers. The needs and wants of the customer must be fulfilled in order to maintain good profit. In the long term, this investment will pay off with loyal customer. 3. 8 Marketing Research Government Agency like HALAL HUB Malaysia and other halal food processing company is the main reference for our marketing research. The main purpose is to get the information about the demand and actual product usage in the market especially local as well as oversea market. 4. 0 Financials This section will offer a financial overview of Halal Retail Store as it relates to the marketing activities. It will address break-even analysis, sales forecasts, expenses forecasts, and how those link to the marketing strategy. INFLOW |   |   |QTR |1QTR |2QTR |3QTR |4QTR | | | | | | | | | | |a) Sales revenue | | | | | | | | | | |936,000 |561,600 |936,000 |936,000 |936,000 | |b) Services labor charges | | | | | | | | | |36,000 |21,600 |36,000 |36,000 |36,000 | |   |   |   |   |   |   |    | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |Re turn on revenue | |-34% |20% |20% |20% | 4. 1 Break-even Analysis The Break-even Analysis indicates revenue to reach the break-even point at quarter 2. 5. 0 Controls The purpose of halal frozen food retail shop marketing plan is to serve as a guide for the company. The following areas will be monitored to gauge performance: †¢ Revenue: monthly and annual. †¢ Expenses: monthly and annual. †¢ Repeat business. †¢ Customer satisfaction. 5. 1 Marketing Organization Halal Retail Store is responsible for all marketing activities. 6. 0 Conclusion Overall marketing point of view for the market for halal frozen food product is still big and not fully tapped for local and oversea especially in Islamic country. The manufacturer for halal frozen food product has to work hard to build their brand image and awareness so that the needs for it will increase in future. At the beginning the halal frozen food will concentrate more in marketing and distributing the local halal food based on demand. In future it will slowly joint venture through the strategic alliance to venture to other halal product to strengthen the business. [pic][pic]