Assgmnt Mp 2

ADVANCED CHEMICALS MARKETING PLAN I.

EXECUTIVE SUMMARY McDonald’s Corp, operates or licenses more than 30,450 fast-food restaurants in the U.S, Canada and overseas. Fifty eight percent of these stores are operated by franchisees, twenty eight by the company, and fourteen percent by affiliates. Its partner brands include Boston Market, Chipotle and Donatos Pizzeria, which are all located primarily in the United States, and Aroma Cafe, located primarily in the United Kingdom. Every time a business or consumer purchases products or services they display forms of buyer behavior that are influenced by many factors. The following report looks at the fast food industry and will analyze four McDonalds’ key products and services. It highlights what type of consumer buying or business buying behaviors are displayed in the purchase of a product or service and explain why each behavior may occur. This enables a conclusion to be drawn from applying theory to reality. Although a full comprehension of buying behavior is impossible, since everyone is an individual, it is useful to reflect on common behaviors and attempt to divide behaviors in types and stages. Even McDonalds, a leader in marketing cannot always predict consumer behavior. Foreign operations contribute around 51% of system wide sales and about 65% of operating profits.

Its main source of income is through franchise fees. .

Business week figured that McDonalds brand value for 2002 is about 26.4 billion McDonalds current market cap is 21.2 billion. Showing that its brand value alone is worth more than the current market cap. From the following valuations and research we have conclude we have decided to buy McDonalds. II.

SITUATIONAL ANALYSIS Marketing audit is a comprehensive, systematic, independent, and periodic analysis that a company uses to examine its strengths in relation to its current and potential markets. Such an analysis is comprehensive because it covers all aspects of the marketing climate unlike a functional audit, which analyzes one 1

marketing activity, looking at both macro-environment factors demographic, economic, ecological, technological, political, and cultural and micro- or taskenvironment factors markets, customers, competitors, distributors, dealers, suppliers, facilitators, and publics. The audit includes analyses of the company’s marketing strategy, marketing organization, marketing systems, and marketing productivity. It must be systematic in order to provide concrete conclusions based on these analyses. To ensure objectivity, a marketing audit is best done by a person, department, or organization that is independent of the company or marketing program. Marketing audits should be done not only when the value of a company’s current marketing plan is in question; they must be done periodically in order to isolate and solve problems before they arise. The purpose of the marketing audit is to identify areas of success and effectiveness, and the inevitable challenges and opportunities that exist within organizations that negatively affect marketing return on investment. Based on the findings of the audit, recommendations will be made to improve the effectiveness of future marketing efforts.

A. The Marketing Environment 1. Competitive Forces As a new company, the competition in the chemicals industry is very strong because there is an establish and well known companies in the chemicals industry such as Texchem Group, Chemical Company of Malaysia (CCM) and Hexstar Chemicals Sdn Bhd. These companies has a major market share in the chemicals industry where Texchem Group is 40% of market share, Chemical Company of

Market Share of Chemicals Industry

Malaysia (CCM) is 30% of market share, Hexstar Chemicals Sdn Bhd is 20% of market share and Advanced Chemicals is 10% of market share.

Hexstar Chemicals 20% Chemical Company of Malaysia (CCM) 30%

Advanced Chemicals 10%

TexchemGroup

Texchem Group 40%

Chemical Companyof Malaysia(CCM) HexstarChemicals 2

AdvancedChemicals

As above is an illustration about the market share in the chemicals industry.

As above, currently Texchem Group is a leading market share in the chemicals industry followed by CCM, Hexstar Chemicals and Advanced Chemicals. Advanced Chemicals in the fourth place because it is a new company and the products manufactured by Advanced Chemicals are not very popular among the individual and business consumers. The chemicals industry is expected to become a profitable industry because nowadays government is encourage involving into the agro business and reducing the case of dengue so the demand for fertilizers, herbicides, fungicides and insecticides product are increase. Because of this, new competitor is expected to enter the market. 2. Economic Forces Economic structure in Malaysia is stable and this may influent the business activity especially in the chemicals industry. The latest gross financing in the private sector has increased to RM 54.3 billion and this is means that the private sector is establish and this will benefit the company in the chemicals industry especially Advanced Chemicals in order to help expanding their business. 3

Beside that the interest rates remain stable where the base lending rate (BLR) for commercial banks was unchanged at 6.72% and the average lending rate is lower at 6.21% in March. Because of this, Advanced Chemicals able make a loan to expand their business, beside that the loan taken from the commercial banks also can be use to make the advertising about the products manufactured by the company in the chemicals industry especially to a new company such as Advanced Chemicals. (http://www.bnm.gov.my/view.php?dbIndex=0&website_id=1&id=659)

3. Political Forces Nowadays, the Malaysian Government has launched the Ninth Malaysian Plan where it may encourage the increasing agriculture production. The main target in the Ninth Malaysia Plan is to generate growth of value added as many as 7.6% compared with the plantation sector contributions as many as 3.2%. Because of this it may influent the company in the chemicals industry such as Advanced Chemicals. Because of this Ninth Malaysia Plan the demand for fertilizers will increase and this may benefit the company in the chemicals industry especially to a new company such as Advanced Chemicals. (http://www.moa.gov.my/moa/index.php?option=com_content&task=blogcate gory&id=211&Itemid=151&lang=en) 4. Legal & Regulatory Forces All the products in the chemicals industry can be sold to anybody and it contain a poison especially herbicides, fungicides and insecticides. There is a law regarding to the products that contain a poison. The law may affect the distribution channel in the chemicals industry. For example in the Poison Act 1952, under section 15 state that “no poison shall be sold by wholesale except by a licensed wholesaler in accordance with the term and condition of his license”. This is means that the company in the chemicals industry only 4

can sell their product that contain poison to the licensed wholesaler. Because of this act, the company in the chemicals industry especially Advanced Chemicals has to follow this act in order to avoid any action from the government. (www.pharmacy.gov.my/html/legislations/Poison act 1952.pdf)

5. Technological Forces Nowadays, there are many technology has been developed and one of the technology in the chemicals industry is the automatic dispenser. This Automatic dispenser is widely used at house and organization; because of this the company in the chemicals industry will manufacture the insecticide aerosol that can fit into the automatic dispenser. The automatic dispenser will help to spray the insecticides automatically by setting their time and this automatic dispenser also user friendly dispenser because it is easy to replace the empty insecticides aerosol with the new aerosol. Because of the dispenser is widely used and user friendly, this definitely will increase the demand to produce the insecticides aerosol from the company in the chemicals industry such as Advanced Chemicals. 6. Sociocultural Forces Nowadays, most of the Malaysian are prefer the easy job and this is same in the situation where Malaysian are more prefer the insecticides aerosol rather than insecticides coil, this is because some of the Malaysian are allergic to the smoke from the insecticides coil. Same as Malaysian Farmers, before this Malaysian Farmer make their own fertilizers and by prefer the easy job, the Malaysian Farmer will use the synthetic fertilizers from the market because it can save their time rather than waste it doing their own fertilizers.

5

The company in the chemicals industry especially Advanced Chemicals has to produce more insecticide aerosol and fertilizers for their customers because base on the Malaysian culture the insecticide aerosol and synthetic fertilizers from Advanced Chemicals will help the to do the work more easily.

B. Target Market(s) Advanced Chemicals is a company that manufactures fertilizers, fungicides, herbicides and insecticides and in this case, the target market of Advanced Chemicals is individual and business customers. In order to gain the brand loyalty from the individual and business customers, Advanced Chemicals has to treat and produce high quality products to the customers. This may benefit Advanced Chemicals because when the customer loyal to Advanced Chemicals this automatically will increase the profit at Advanced Chemicals. For the individual customers, the best selling product is Advanced Insecticide Aerosol (AIA). The AIA is a multipurpose insecticides aerosol where I can be use to eliminate mosquito, flies, cockroach and ants in the house. The individual customers such as housewife are preferred to use this product because it is easily to use and it is effective to overcome the insecticides problem in the house. For the business customers such as farmers, the best selling product is Advanced Fertilizer (AF). The AF is a synthetic fertilizer that rich of nutrient that can give a healthy plant and it also can stimulate the growth of plant. Recently in Malaysia, there is an issue about the rice price is increasing where before this the price for local Jati Special is RM 18.50 per 10kg but now the price is between RM 23.90 and RM 26.00 this increasing of price happened because of there is insufficient rice can be supply to the customers. Because of this problem, the farmers can use AF to overcome this problem because AF can stimulate the growth of paddy so the farmers able to supply the rice to their customers. 6

(http://www.bernama.com/kpdnhep/news.php?id=330198&lang=en&cat=)

C. Current Marketing Objectives & Performance Current marketing objectives in Advanced Chemicals to increase the profits and revenues of approximately RM 2.5 Million where the target of revenue should exceed RM 750,000 and the target of profit should exceed RM 1.5 Million. Beside that Advanced Chemicals also target to build a close relationship with the customers and stakeholders, this is because Advanced Chemicals is a new company, so it is important to build up the good image and the good perception from the Customers. Make Advanced Chemicals as well known product is one of the current objective in Advanced Chemicals. In order to achieve the target for profits and revenues, Advanced Chemicals will strive to offer a superb customer services and offer a high quality products in order to make sure the customers will make a repeat purchase to the products from the Advanced Chemicals. In order to build a close relationship with the customers and stakeholders, Advanced Chemicals can use the Corporate Social Responsibility (CSR) policy such as care about the welfare of their customers and make collaboration with their stakeholders to improve their relationship. In order to gain a good image and good perception, Advanced Chemicals can make the advertising by using television as a medium and make more sponsorship and charity to the handicap citizen.

7

III.

SWOT ANALYSIS A. Strengths 1. Advanced Chemicals are offering a variety of product to their customers where there are many type of fertilizers, herbicides, fungicides and insecticides offered to their customers. For example insecticides product, there is about 3 type of insecticides offered to the customers that is aerosol insecticides, coil insecticides and liquid insecticides so that the customers able to make their own choice. 2. Research & Development Department (R&D) in Advanced Chemicals are using a new technology to develop their products where all the product produce by Advanced Chemicals are environmental friendly and all of the worker is well trained especially the workers at R&D Department, so that the quality of all the product produce by Advanced Chemicals is high. 3. The workers at Advanced Chemicals are very hardworking and very committed towards self development and also willing to learn. The workers at Advanced Chemicals also friendly and they can offer best customer service especially to their individual and business customers to ensure that customer satisfaction is guaranteed. This definitely will improve the relationship between Advanced Chemicals and their customers.

8

B. Weaknesses 1. One of the weakness for Advanced Chemicals is all the price of the product by Advanced Chemicals is high. The price is expensive because the raw material is expensive and because of this Advanced Chemicals had to setting their price at the high price in order to cover their cost. For example, in order to produce synthetic fertilizers the raw material needed is petroleum and nowadays the price of petroleum is high so that Advanced Chemicals need to set their synthetic fertilizers at the high price in order to cover their high cost. 2. Advanced Chemicals are not popular among their potential customers and because of this Advanced Chemicals unable to make a large profit for the company. Beside that Advanced Chemicals are not popular because Advanced Chemicals is a new company so that many individual and business customers are not realize their existence in the market so that Advanced Chemicals unable to capture more market share in the chemicals industry. Advanced Chemicals also not popular because there is lack of advertising about the products produce by Advanced Chemicals so that Advanced Chemicals unable to make more selling and this can give a bad impact to Advanced Chemicals especially to the management of Advanced Chemicals. 3. The operation cost in Advanced Chemicals is high, so that the expenditure in Advanced Chemicals will definitely high. This is because Advanced Chemicals has well trained and expert workers so that these workers are demanding for the high salary while working at Advanced Chemicals. If this high operation cost is still continue in a long run, it may give bad impact to Advanced Chemicals where it can make Advanced Chemicals unable to get a large profit for the company.

C. Opportunity 9

1. One of the opportunities for Advanced Chemicals is the increasing of dengue cases in Malaysia where in the year 2008 there is 12,162 cases and 35 of people are death and the previous year that is in the year 2008 there is 16,260 cases and 38 of people are death. As we can see the case are reducing, however the Ministry of Health in Malaysia said that this total case is still high. When the dengue case is high this will become the opportunity for Advanced Chemicals because the demand for the insecticides products will be increase. For example, in order to reduce the case of dengue, the demand for insecticides aerosol is high among the individual customers. (http://www.moh.gov.my/static/PressReleaseMg16_2008.pdf) 2. The announcement of budget allocation for the agricultural sector by the Prime Minister of Malaysia in the Budget 2008 will be the opportunity for Advanced Chemicals. There is RM6.5 billion allocate for the agricultural sector in order work on the government program such as increasing paddy production. Because of this budget, there will be many paddy field will be open and because of this the demand for fertilizers will be increase. This will become the opportunity to Advance Chemicals because the farmers will demand for the fertilizers and Advanced Chemicals able to make a profit to the company when the farmers buy the fertilizers from Advanced Chemicals. (http://www.pmo.gov.my/WebNotesApp/Abdullah.nsf/hv_PMKiniSemasaNew/ 57AD491D0E67115F4825734F003607AA)

3. The launching of Ninth Malaysia Plan by the government can be the opportunity to the Advanced Chemicals. One of the Ninth Malaysia Plan objective is to achieve growth value added for agro-based industry as many as 5.2% so that the farmers will play a role to achieve this objective and in order to achieve this objective the farmers will demand for the fertilizers and 10

herbicides to make sure their plantation are grow healthy without any lack of nutrient or disease. This will become the opportunity for Advanced Chemicals because the Farmers will demand for the fertilizers and herbicides from the Advanced Chemicals and this will give a profit and for the long term plan Advanced Chemicals will be able to expand their business internationally. (http://www.moa.gov.my/moa/index.php?option=com_content&task=blogcate gory&id=211&Itemid=151&lang=en) D. Threats 1. One of the threats for Advanced Chemicals is the current issue that is the increasing of price for synthetic fertilizers in Malaysia. These issues arise because of the increasing of world oils price and the scarcity of fertilizers. Before this the price for one ton metric of synthetic fertilizers is RM 1,400 and now for the one ton metric of synthetic fertilizers is RM 1,800. This increasing of price will become the threats for Advanced Chemical because the farmers will not use the synthetic fertilizers and they will change it to the organic fertilizers so that Advanced Chemicals unable to make a selling on their synthetic fertilizers and this will make Advanced Chemicals facing losses in their operation and production. (http://www.utusan.com.my/utusan/info.asp?y=2008&dt=0417&pub=Utusan_ Malaysia&sec=Dalam_Negeri&pg=dn_07.htm)

2. Competitor is also the threats for Advanced Chemicals because Advanced Chemicals is a new company and they had to compete with the established company such as Texchem Group, CCM and Hexstar Chemicals. All of these competitors have a major market share in the chemicals industry where Texchem Group with 40%, CCM with 30% and Hexstar Chemicals with 20%. All of these competitors have already run their business for a year so that they have many loyal customers for their brand in chemicals industry.

11

Because of these threats, it is hard to Advanced Chemicals to establish in the chemicals industry in Malaysia. 3. If Advanced Chemicals enter the international market, the main threats for Advanced Chemicals are the increasing of import and export duty. This happened when in the certain countries, the government wants their citizens to buy the local product and the government also wants to protect the local company facing losses. When Advanced Chemicals need to pay for the high import and export it may cause the product form Advanced Chemicals is expensive so that this will make the demand for the Advanced Chemicals product fall so that Advanced Chemicals unable to make many business transaction and this will make Advanced Chemicals facing a losses.

E. Matching Strengths to Opportunity / Converting Weaknesses and Threats 1. One of the strength in Advanced Chemicals is they are offer a variety of product to the customers and because of this it can be the opportunity to Advanced Chemicals because when there are many type of product offered so that the potential to make more business transaction in increasing and it will benefit Advanced Chemicals. For example, there is tender about the needed of supplier for the liquid herbicides and because of Advanced Chemicals has many type of herbicides, they can bid for that tender and if 12

they win the tender I will benefit Advanced Chemicals because they will get a high profit from that tender. 2. The strength in Advanced Chemicals is they are using a new technology to develop their product and because of this it can be the opportunity for Advanced Chemicals because when all the product from Advanced Chemicals are well developed the demand for the latest product is increasing so that Advanced Chemicals can use this opportunity to introduce their new developed product to the customers and this may give the opportunity to make a business transaction that may give a profit to the Advanced Chemicals. For example, through the R&D Department, Advanced Chemicals able to produce a multipurpose fungicides that can give the instant effect to the fungicide problem and because of this, the product will be demanded form the customers and Advanced Chemicals can get a high profit for the company.

3. The product at Advanced Chemicals is expensive because they need to cover their cost so in order to covert this problem Advanced Chemicals will produce their product in a large scale so that the cost can be reduce and in the long term it may reduce their price of the product and this may give a profit to Advanced Chemicals. For example, before this Advanced Chemicals are producing 1000 ton metric synthetic fertilizer and when they are produce it in a large scale that is 5000 ton metric synthetic fertilizer in a long term plan it can cut the production cost so that the price of the synthetic fertilizer can be reduce and this may encourage customers to buy the synthetic fertilizer from Advanced Chemicals and this will give a profit to Advanced Chemicals 4. Advanced Chemicals has a lower market share in the chemicals industry that is 10% so that Advanced Chemicals should make more advertising and 13

promotion in order to increase the popularity among the customers and this can help to increase the market share for Advanced Chemicals in the chemicals industry. The advertising and promotion can be made by using the electronic mass media such as make the commercial adverting at television.

IV.

MARKETING OBJECTIVES Advanced Chemicals is a new company in the chemicals industry and they are manufactured fertilizers, herbicides, fungicides and insecticides products. The objective of Advanced Chemicals is to achieve 1.5 billion in net profit for 12 month and 60% of the net profit should come from the business customers. Another objective for Advance Chemicals is make sure that the customers in Advanced Chemicals are satisfy with the product and price quotation offered by Advanced Chemicals. In order to accomplish these marketing objectives, Advanced Chemicals has to concern on many things and among of it is the SWOT analysis in order to make sure all the progress is running well. Advanced Chemicals can use their R&D Department in order to achieve the marketing objective that is achieving 1.5 billion in the net profit for 12 month. For example, the R&D Department in the 14

Advanced Chemicals will produce many new products so that the customers will have many options of the products offered by Advanced Chemicals so that the potential to make business transaction is high. In order to make sure 60% of the net profit is come from the business customers, Advanced Chemicals has to create and maintain a good relationship with the business customers. Beside that, Advanced Chemicals also has to make a suitable promotion such as give a trade discount or rebate to the business customers. For example, in order to encourage more business customers use the product from Advanced Chemicals, they have to create a good relationship by always contact and give the information about the new product from Advanced Chemicals. Advanced Chemicals also can give a trade discount to the business customers by giving 10% trade discount if the business customers buy the syntactic fertilizers from the Advanced Chemicals.

Beside that in order to achieve 1.5 billion net profits for 12 month, Advanced Chemicals has to hire agents to persuade the business customers to use the products from Advanced Chemicals. Beside that Advanced Chemicals also has to open new branches in order to make sure Advanced Chemicals able to fulfill their customer’s demands. For example, Advanced Chemicals will open new branches at all of the state in Malaysia.

V.

MARKETING STRATEGIES The marketing strategies for McDonald is about the product, place, price and promotion that is used as part of McDonald's marketing strategy to generate hundreds of millions of dollars in annual sales. McDonald has set their marketing 15

strategies through precise blending of product, place, price and promotion; McDonald's branches everywhere maintain consistent quality, price and selection. One of the major reasons for the franchise's success is that it evolves in relation to the changing needs of loyal customers. "When talking about McDonald's within the scope of marketing promotion, one hardly knows where to start. As a general statement, it is fair and accurate to say that promotion is one of the pillars of McDonald's success. Let us clarify this statement; while it is indisputable that McDonald's has built a loyal following for decades through a quality product, easy availability and value, none of these wonderful things that McDonald's has perfected would be known by anyone if they were not properly promoted. The success of the promotional message is evidenced by the cross-generational loyalty of customers and many other factors." (http://www.academon.com) A. Target Market(s)

Target Market of Advanced Chemicals

Small Medium Enterprise, 2 0%

Farmers, 30 %

Target Market 1:

Individual Customers (Housewife's ), 20%

Business Customers (Retailers), 3 0%

Individual Customers (Housewife's) BusinessCustomers (Retailers) Farmers

Small Medium Enterprise

Individual Customers (Housewife’s)

The first target market of Advanced Chemicals is individual customers that are housewife’s. This is because Advanced Chemicals are manufacture insecticides product such as aerosol and coil insecticides. This type of 16

insecticides product will be use by the individual customers such as housewife’s because this product will be use in the house in order to eliminate the problem of mosquito, flies and cockroach. Target Market 2:

Business Customers (Retailers)

Business Customers that is retailers also the target market of Advanced Chemicals. This is because Advanced Chemicals are manufacture fertilizers, herbicides, fungicides and insecticides product and the retailers such as Giant, Tesco and Macro usually buy in a large quantity and this will give a high profit to the Advanced Chemicals so that Advanced Chemicals will focus on Business Customers as their target market. Target Market 3:

Farmers in the agricultural sector

Farmers are the target market of Advanced Chemicals because one of the product manufactures by the Advanced Chemicals is fertilizers. Nowadays the government of Malaysia are encourage the unemployment to involve in the agricultural sector and because of this the fertilizers produce by Advanced Chemicals will be demand by the farmers so that Advanced Chemicals able to get a profit when a business transaction with the farmers.

Target Market 4:

Entrepreneurs in the Small Medium Enterprise

Entrepreneurs in the Small Medium Enterprise (SME) are the target market of Advanced Chemicals. In Malaysia SME are growing fast especially at the rural area and the example of SME is food industries and this food industry usually have a high potential to be infected by the fungus. Advanced Chemicals are manufactured a fungicides product and because of this entrepreneurs in the 17

SME need the fungicides product to overcome this problem so that they will be the target market of Advanced Chemicals.

B. Marketing Mix Products Advanced Chemicals are manufacturing chemicals products and their products are fertilizers, herbicides, fungicides and insecticides. All of the products are high quality product that had been approved by SIRIM and their product also has a copyright where the other company cannot duplicate their products. Beside that, all of the products also had been test scientifically by the R&D Department in order to avoid any circumstance when using these products. 18

Price Advanced Chemicals is a new company in the chemicals industry and because of this the suitable pricing strategy is penetration market strategy where Advanced Chemicals has to set a low price for a new product in order to attract a large number of customers and a large number of market share. This may encourage the repeat purchase at Advanced Chemicals. Promotion Advanced Chemicals can use the promotional tools to make a promotion in order to attract potential customers toward the products manufactured by Advanced Chemicals. Advanced Chemicals can offer a discount where the first 100 customers will get 30% discount for the products of fertilizers, herbicides, fungicides and insecticides and because of this promotion in may encourage potential customers to buy the products from the Advanced Chemicals.

Place / Distribution Advanced Chemicals is a new company in the chemicals industry and because of that Advanced Chemicals has to make sure all of their product will be sale at many place. For example Advanced Chemicals has to distribute their product at the urban and rural area so that the citizen from city and village able to buy the products from Advanced Chemicals. Beside that, Advanced Chemicals also has to distribute their products to the popular retailer in Malaysia such as Tesco, Giant and Macro this is because the end user customers usually go out to shopping at all of this popular retailers.

19

VI.

MARKETING IMPLEMENTATION A. Marketing Organization The marketing objective in Advanced Chemicals is to achieve 1.5 billion in net profit for 12 month and 60% of the net profit should come from the business customers. In order to make sure this objective can be achieve, Advanced Chemicals has to make sure they able to implement their marketing strategy well. Advanced Chemicals will divide their marketing functional by group into four group base on their target market that is: 1. Individual customers (Housewife’s) 2. Business Customers (Retailers) 3. Farmers in the agricultural sector 20

4. Small Medium Enterprise Each of this group has their own leader and in this there will be four leaders that is sales manager who will be responsible to make sure all the marketing implementation in Advanced Chemicals run smoothly. Each leader in the different groups has a full decision making authority because the General Manager of Advanced Chemicals has delegate their power in Advanced Chemicals. All the activity within the group will be report to the General Manager of Advanced Chemicals for the evaluation of effectiveness while implement the marketing plan in Advanced Chemicals.

When Advanced Chemicals divide their marketing functional by group it will enable Advanced Chemicals to perform well in their operation especially in the implementation process in marketing plan for Advanced Chemicals. Beside that it also can overcome the problem that occur during the implementation process in the marketing plan, this definitely will benefit Advanced Chemicals because they can perform well in their operation beside that it can also help Advanced Chemicals to monitor all the activities from their competitor such as Texchem Group, CCM and Hexstar Chemicals.

21

B. Activities, Responsibility & Time for Completion All the implementation of this marketing plan for 12 month will be start on January 5th and it is about the activity, responsibility and time for completion. •

On January 5th, the General Manager of Advanced Chemicals will appoint Sales Manager in order to be a leader for each group base on their target market and all the leaders must have high interpersonal and leadership skills.

•

By January 15th, the Human Resource Department in Advanced Chemicals will make the internal recruitment in order to absorb it into the group. The required criteria for this internal recruitment is the employees must able work as a team and have a full commitment on the task given by Advanced Chemicals. This is because Advanced Chemicals want to make sure this implementation can run smoothly without any problem.

•

By February 1st, every four members from each group will make a research about the demand for the new product by the customers, analyze the current market trend in the chemicals industry and construct and distribute a questionnaire about the product offered by Advanced Chemicals. The Sales Manager wills in-charge on these activities.

22

•

By April 1st , one of the members form each group will make a presentation to the Sales Manager about the result of their analysis and this presentation are include the discussion on new idea that may be apply to the products of Advanced Chemicals.

•

By May 15th, the new idea by each group will be pass to the Research & Development Department (R&D) in Advanced Chemicals. R&D Department will use the result and the new idea to create a new product for Advanced Chemicals so that the target market for Advanced Chemicals will have more option while buying at Advanced Chemicals. Beside that the result of their analysis will be pass to the Sales Manager in order to make the evaluation about it.

•

By July 30th, Sales Manager will make the implementation about any changing of 4P’s that is products, price, place and promotion base on the analysis of each group toward their target market.

•

By August 15th, Advanced Chemicals will contact their potential customers especially their target market such as farmers in the agricultural sector. The person in-charge is the General Manager of Advanced Chemicals, this is because General Manager has a high charisma and this can improve the relationship between Advanced Chemicals and customers.

•

By September 1st, prepare a paperwork about the products and price quotation about the products of Advanced Chemicals to their potential customers especially to their target market. The person in-charge is Sales Manager where the Sales Manager has a full decision making authority to approve or decline the price quotation prepared by each group.

•

By October 1st, make a survey about their customers satisfaction regarding to the paperwork and price quotation from Advanced Chemicals.

•

By November 1th, the Sales Manager will conduct a further survey about their customers satisfaction toward the paperwork about the product and price quotation from Advanced Chemicals

23

•

By November 15st, the result from the survey about the customers satisfaction will be submit to the General Manager and General Manager will make a meeting with the Sales Manager at each group in order to decide whether it is reasonable or not to produce the product to the customers.

•

By December 1st, each of group will analyze and make a final report about the result from the survey of the customers satisfaction and each group will submit this final report to the General Manager of Advanced Chemicals. The person in-charge in this activities is Sales Manager of each group in Advanced Chemicals

•

Reestablish the objectives of Advanced Chemicals especially to their target market for the next year. The person in-charge in this activities is General Manager of Advanced Chemicals

24

VII.

EVALUATION AND CONTROL A. Performance Standards & Financial Controls The comparison of the financial expenditures with the plans goals is important to be including in the project report. The following is the performance standard and financial controls suggested for Advanced Chemicals. •

The total budget for the new product research, market trend analysis and the customers survey for the year 2008 is equal to 40% of the annual promotional budget in Advanced Chemicals.

•

From the total budget of the marketing plan in Advanced Chemicals, the budget allocated for the new product research is 30%, market trend analysis is 20%, customers survey is 10% and 40% for the process of implementation on the new products and new business development.

•

All the leaders in each group must prepare a report about all the financial expenditures. The expenditure is including all the expenditure such as the salary for each personnel in each group and this report will submit to the General Manager of Advanced Chemicals.

•

Sales Manager also has a responsibility to control the budget in Advanced Chemicals this is because they need to prepare the expenditure report to the General Manager of Advanced Chemicals.

•

Human Resource Department also has a responsibility to make the staff recruitment in the Advanced Chemicals this is because the quality of staff is

25

depend to their qualification so that it is important to Human Resource Department to recruit the good candidates for Advanced Chemicals.

•

Production Department also has a responsibility to produce enough fertilizers, herbicides, fungicides and insecticides product this is because it is important to make sure to fulfill the demand of their customers and this definitely will make the customers feel satisfy with the products offered by Advanced Chemicals.

B. Monitoring Procedures In order analyze the effectiveness of the marketing plan for Advanced Chemicals, Advanced Chemicals can compare the current performance with the marketing plan objectives.

The monitoring procedure is important in the

Advanced Chemicals because in order to make sure the progress of this marketing plan run smoothly. These monitoring procedures as the following: •

Advanced Chemicals can use this monitoring procedure by use the project management concept where this concept will be use to evaluate and implementing the marketing plan by Advanced Chemicals. It also will establish the time requirement to implement this marketing plan, establish the financial and budgeting to implement this marketing plan and lastly is to establish the needs of employees to implement this marketing plan.

•

The General Manager of Advanced Chemicals will play a role to monitor their employees and their employees will make a comparison about the actual and planned activities for the twelve month in Advanced Chemicals so the employees of Advanced Chemicals will make any report directly to their General Manager of Advanced Chemicals.

•

The leaders of each group that is Sales Manager in Advanced Chemicals also play a role where they had to monitor all the work done by their

26

employees so that Sales Manager able to determine what should be made and what should be done by their subordinates in Advanced Chemicals.

REFERENCES BOOK REFERENCES 1. Principles of Marketing: An Asian Perspective – Philip Kotler, Gary Armstrong, Swee Hoon Ang, Siew Meng Leong, Chin Tiong Tan, David K. Tse – Prentice Hall – 2005. INTERNET REFERENCES 1. http://www.texchemfamilycare.com 2. http://www.moa.gov.my/moa/index.php?option=com_content&task=blogcategory &id=211&Itemid=151&lang=en 3. http://www.bnm.gov.my/view.php?dbIndex=0&website_id=1&id=659 4. http://www.bernama.com/kpdnhep/news.php?id=330198&lang=en&cat= 5. http://www.pmo.gov.my/WebNotesApp/Abdullah.nsf/hv_PMKiniSemasaNew/57A D491D0E67115F4825734F003607AA 6. http://www.utusan.com.my/utusan/info.asp?y=2008&dt=0417&pub=Utusan_Mala ysia&sec=Dalam_Negeri&pg=dn_07.htm 7. www.pharmacy.gov.my/html/legislations/Poison act 1952.pdf 8. http://www.moh.gov.my/static/PressReleaseMg16_2008.pdf

27