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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 schools 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 McDonalds sundae as a reliable benchmark. The current brand owner is Mohd Syakir Bin Saadon, 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

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.

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.

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 4Ps.

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.

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 icecream 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.

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 6

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.

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 Saadon. Back in 2010, Mr. Mohd Syakir Bin Saadon 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 Saadon decided not to open his business for franchise due to complexity of managing the franchisee especially ensuring the same quality of product and services. The Companys Current 4Ps Currently, the companys target market covers the age range of 2 years old toddlers till the senior citizens.

4.7

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.

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 also place their order via e-mail to the address mingomingo@yahoo.com. Besides that, MingoMingo has been invited to be interviewed by local television channels TV1 and TV2. However, the offer has been turned down by Mr. Mohd Syakir Bin Saadon since he is afraid that he cannot cater the demand to be received after the publicity.

Currently, the company has 1 lorry, 1 part time staff and the recipe of MingoMingo ice cream. The company is currently trying to get financial support from TEKUN and SME Bank. The fund will be used to buy fixed assets required in order to expand the company operation.

Once the fixed asset is acquired, the company is looking forward to offer these packages for those who are interested in the business:

i) Self-Managed The distributor just buy the soft ice cream dispenser, not using MingoMingo brand and the rest of the equipment need to be purchased separately from other companies. 9

Marketing Management (GSM5200) PROPOSING A MARKETING PLAN FOR MINGOMINGO SOFT ICE CREAM

ii) Self-Managed but still under MingoMingo Bounded by terms and conditions set by MingoMingo

Given that that the company has enough fund, it is planning to acquire at least another 2 soft ice cream dispensers, which costs RM15,000 each. The company also planning to buy a bigger lorry which could accommodate 4 soft ice cream dispensers and also a generator to support the cooling function of the soft ice cream dispensers. The company is looking at Wafi Soft Ice Cream as its main competitor, since the company is selling at the price of 50% less than MingoMingo during its promotional period.

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Marketing Management (GSM5200) PROPOSING A MARKETING PLAN FOR MINGOMINGO SOFT ICE CREAM 5.0 SITUATION ANALYSIS

5.1

Market Summary

a) TRENDS Despite rising health concern among consumers in Malaysia in 2012, consumers still show interest in non-health and wellness ice cream as a personal treat. Furthermore, consumers in Malaysia still perceive sugarfree or low-fat healthy ice cream products as tasting differently to more traditional products. In addition, health and wellness ice cream is also more expensive than regular offerings, which limits demand among consumers who are relatively sensitive to price.

b) COMPETITIVE LANDSCAPE Unilever (M) Holdings Sdn Bhd led ice cream in 2011 and 2012 with a 36% value share. Factors contributing to the dynamic performance of the company were mainly its large selection of brands, for example, Walls Selection, Magnum and Cornetto. Furthermore, Unilever, being a giant in chilled ice cream producer also ensures that the company constantly conducts marketing activities and promotions to increase brand awareness within Malaysia.

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Marketing Management (GSM5200) PROPOSING A MARKETING PLAN FOR MINGOMINGO SOFT ICE CREAM

c) PROSPECTS Ice cream is projected to show an increase in constant value terms over the forecast period with a compound annual growth rate (CAGR) of 2%. With improvements to the economic situation in Malaysia, consumers are more willing to spend on indulgence products to reward themselves. Furthermore, a new product range and new flavors of ice cream are constantly being launched in Malaysia. This is expected to stimulate purchases of ice cream among consumers. Lastly, more healthy ice cream products, such as sugar-free ranges, are expected to be introduced over the forecast period due to rising health awareness among Malaysians.

5.2

Market Needs

a) PRODUCT AVAILABILITY Easy to purchase soft ice cream, currently when the customers want to buy this Soft Ice Cream, they need to get from kiosk and mobile unit like van. These outlets normally located inside Shopping Complex and

hypermarket. As we can see from the chart above, the ice cream market penetration is quite high for Malaysia. As such MingoMingo need to be more visible.

The machine from USA and Europe will be more expensive compare to China machine. In China, there are many factories or producers that 12

Marketing Management (GSM5200) PROPOSING A MARKETING PLAN FOR MINGOMINGO SOFT ICE CREAM making the ice cream machine, suggest buy the machine with using the imported part, meaning that the main compressor, valves and few more critical components are good quality type imported from other country.

Ingredients will determine ice cream quality. There are two common types of premix ingredients in local market, in powder or liquid form. Good and tasty ice cream is made from good quality ingredients.

5.3

Variety of Product Flavors Currently, MingoMingo only sell Chocolate, Vanilla and Strawberry flavor to the customers. Additional flavors will give option to the current customers and bring in new customers.

5.4

Competitor Analysis

The chart above shows the current availability of the soft ice cream outlets in Selangor. MingoMingo and Wafi soft ice cream outlet is limited to the static outlet they are at the moment, either one or two. However for McDonalds they have more than 30 outlets in Selangor itself.

MingoMingo and Wafi soft ice cream is available for customers event at their place. Both provide and attractive package for the ice cream desert for their guest. 13

Marketing Management (GSM5200) PROPOSING A MARKETING PLAN FOR MINGOMINGO SOFT ICE CREAM

The current pricing structure is quite competitive because of the ice cream sizing and their flavors availability offered to the customers. McDonald sells the most expensive soft ice cream.

5.5

SWOT Analysis

a) Strength MingoMingo has been established for quite some time already. During that time, the initial company manages to bring many franchises to join the company. Existing and royalty customers still available and they are looking forward to enjoy MingoMingo soft ice cream every time they could.

Less time is needed to prepare the ice cream compare to chilled ice cream to sell. This is because the ingredients are available and need to add into the soft Ice cream dispenser. Minimum times spend to train staff and it does ensure the consistency of the ice cream flavor.

Next, MingoMingo do sell the ice cream at customer within Klang Valley on a mobile van. This ensures the customers can find the products not only at the shopping complex. Attending customers event like weddings and company events do help to promote MingoMingo to potential customers.

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Marketing Management (GSM5200) PROPOSING A MARKETING PLAN FOR MINGOMINGO SOFT ICE CREAM b) Weakness

Production for the MingoMingo on the mobile van is quite limited. At the moment the production of MingoMingo ice cream depend on the single soft ice cream machine. As a result, MingoMingo is not able to fulfill customers request on the same day if she already commit to an event.

Next, MingoMingo too depend on event sales at the customer side. The current static kiosk in Shah Alam is not located strategically to the potential customers. To find another location normally need MingoMingo to spend capital for outlet rent 12 months tenancy in advance.

c) Opportunity The current increasing customers ice cream consumption trend in Malaysia and Selangor specifically shows a very good sign to the business. Production for ice cream in Malaysia shows CAGR of 2%. As a result this good trending do benefits MingoMingo to provide what the customers want.

Beside, MingoMingo do receive requests from customers to open the outlets in their area in the near future. This is because they are not able to find the replacement for MingoMingo ice cream flavors. The products POD is incomparable.

d) Threat

Potential cost increase for the raw materials cost due to new GST structure to be implemented in 2014. This is because some of the materials direct or indirectly are being affected by this initiative.

Next, challenges from the direct competitors like Wafi and other soft ice cream vendors in Malaysia. Everyone will see this opportunity and try to 15

Marketing Management (GSM5200) PROPOSING A MARKETING PLAN FOR MINGOMINGO SOFT ICE CREAM grab the market share. As such price war could happen to lure the customers to buy their product.

MingoMingo also face threat from the previous investor who are not successful in their mentor-mentee program. As such this will give wrong perception to the customers when MingoMingo doing the business.

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Marketing Management (GSM5200) PROPOSING A MARKETING PLAN FOR MINGOMINGO SOFT ICE CREAM 6.0 DETERMINING THE MARKET SEGMENTATION & TARGET MARKET

MingoMingo takes every customer as target and potential who is ice cream lover. All age groups including children, teens, young adults, middle age and elderly are being targeted but the most Mingo Mingo potential customers are from;

a) b) c)

Higher Income background Middle Class background Lower Class background

The companies like Baskin Robbins and Tutti Fruti are classified as higher end and middle end products and they are costly as compared to MingoMingo. The companies like Walls and Nestle Ice Cream are middle end brands. They provide low prices and they are for price conscious people who belong to middle class and lower class of the society. Meanwhile for MingoMingo, it targets the three major classes of the Malaysian society. Price ranging from RM 1 to RM1.30 is affordable for every class of Malaysian society.

In order to penetrate the market of three major classes of the Malaysian society, MingoMingo has being doing business in the various events such as birthday party, weddings and also family day. Other than that, the places like Desert Corner which can be found at cinemas, shopping complexes and theme parks also being explored to reach the target market. MingoMingo also prefers to focus on the customers in Klang Valley, because most of the population in Klang Valley belongs to middle class & lower class which are highly potential customer.

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Marketing Management (GSM5200) PROPOSING A MARKETING PLAN FOR MINGOMINGO SOFT ICE CREAM 7.0 ALTERNATIVE OF MARKETING STRATEGIES Study has been done on the four 4Ps, on each category a thorough study has been conducted in order to determine how it will benefit MingoMingo the most.

a)

Products - How can MingoMingo combine products, offer additional flavor and toppings in order to create a strong brandname or brand awarenesss? - How can MingoMingo use various types of packaging and labeling as a marketing tools?

b)

Prices How should MingoMingo adapt prices to meet varying circumstances and opportunities? - How should MingoMingo respond to a competitorss price challenge?

c)

Distribution Channel/Place What is a marketing channel system and value network for MingoMingo? - What decision do MingoMingo face in managing their channels?

d)

Promotion What is the communications mix and how should it be set? - What is an integrated marketing communications program?

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Marketing Management (GSM5200) PROPOSING A MARKETING PLAN FOR MINGOMINGO SOFT ICE CREAM 8.0 RECOMMENDED MARKETING STRATEGIES

Based on the study done for MingoMingo in specific and ice cream or deserts (food) industry, taking considerations on its current financial status, we have decided to focus on product and promotion as the marketing strategies. We believe with the implementation of this, customers will get to know and aware of the existing of MingoMingo brand. Once the customers are aware of the brand, it will helps to increase the market growth as well which indirectly will boost the sales target which indirectly translates to a higher income.

8.1

PRODUCTS

As for the products, first of all, MingoMingo needs to provide more choices in terms of flavors and toppings such as local fruits flavors like jackfruit, durian, sweet corn, lemonade and Tropicana.

MingoMingo also should offers more varieties of product such as ice cream, yogurt drink and smoothies drink in their deserts corner. Basically we have suggested that instead of operating via events, MingoMingo can also open up a deserts corner in malls that offers a lot of indoor activities. For example, those who loves to spend their time watching movies or playing bowling, can have their plenty of choices from MingoMingo Deserts Corner after the movies or bowling. As a beginning, we will start to open at 1 or 2 malls first.

In addition, MingoMingo also should provide varieties of packaging and sizes in order to accommodate different needs and demands. The current serving that MingoMingo has cones. Moving forward, we would suggest MingoMingo to provide in cup, or in container and in varieties of sizes.

8.2

PROMOTION Current promotion is tied up with events such as weddings reception or Hari Kantin organized by school. However, we will expand further on the varieties 19

Marketing Management (GSM5200) PROPOSING A MARKETING PLAN FOR MINGOMINGO SOFT ICE CREAM of events such as Family Days (individual or corporate sector), any other events which supply the coupon as a medium of transaction. Others event that we look into, such :- Festivals like Hari Raya 1 Malaysia.

There are few marketing communications that MingoMingo could explore such as :Sales Promotion With a certain number of guaranteed order, we will give a certain rebates, especially those orders associated with the events. Hence, sales promotion we could also tied up with events. Since now we will aggressively focusing on varieties types of event, hopefully it will boost the sales target.

i)

ii)

Using the internet as the mass marketing communication such as :MingoMingo should grab the opportunity to do mass marketing communication via the free social network such as Facebook, Twitter and Google+. For the website, customers would want to experience more interactive marketing while browsing the website. We would suggest MingoMingo to add the attractive column such recipe of the week which suggest or provides recipe of what is good to go along with certain flavor for example. In addition of this, MingoMingo also could send the mass email to clients on the updates or promotions that we have. Joint promotion with groups such as Groupon and Booking.com. Advertising advertisement such as posters, insertion in magazines such as magazine Rasa, Saji.

iii)

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Marketing Management (GSM5200) PROPOSING A MARKETING PLAN FOR MINGOMINGO SOFT ICE CREAM 9.0 SHORT-TERM AND LONG-TERM PROJECTION In general, with the implementation of the marketing strategy and activities, we forecast on the breakeven analysis as well as sales forecast as below. The Break-even analysis for 2013 indicates that RM7585 will be required in monthly sales revenue to reach the break-even point. Average Sales per month for 2013 is RM 25000 and monthly profit is RM17415 2013 (Break-Even Analysis) Item Description
Cost of Each cone (raw material) Sales Price of cone Total units Sold in 2013

Price
RM0.50 RM1 300,000

Calculation

Sum

Revenue [Unit Sale Price 8 Units Sold] COGS[Unit Sold*Cost of Unit] Other Variable Cost (Tol+Lorry Fuel) Total Variable Cost [COGS+Other VC]

RM1x300000 RM150,000 RM1,600 RM151,600 300000xRM0.5 RM100+RM1500 RM150000+RM1600

RM300,000

Gross Profit [Revenue-Total VC] Gross Profit perunit=Total Gross profits/units sold Total Fixed Cost ( 1 unit ice cream machine +Lorry + StaffSalary + Lorry maintenance) Net Profit[Gross Profit-Total Fixed Cost]

RM300000-RM151600 RM148400/300000 1xRM6000+RM30000+ RM44,600 6xRM600+RM5000

RM148,400 RM0.49

RM148400-RM44600

RM103,400

Break-even Units=Fixed Operating Cost/Gross Profit Per Unit

RM44600/RM0.49

RM91,020

Moving forward, for the business expansion and to ensure smooth operation and to cater the higher demand, MingoMingo will invest in buying one unit ice cream machine and one unit lorry, and we will hire six part time staffs to assist with the additional machine and lorry.

For 2014 , the projected sales is RM650000 (50% sales increase if to compare against 2013 and there will be additional 1 machine). Meanwhile for 2015, the projected sales

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Marketing Management (GSM5200) PROPOSING A MARKETING PLAN FOR MINGOMINGO SOFT ICE CREAM is RM1,200,000.00 (85% sales increase if to compare and there will an additional 2 machines and lorry .)
Sales Forecast for 2014 Total Sales RM650,000 Total Sales Sales Forecast for 2015 RM1,200,000

Direct cost of sales Additional 1 machine Cost of Toll & fuel Advertising (magazine & Flyers) Lorry Maintenance Staff Salary Total Cost RM5,000 RM5000 RM3600 RM21,200 RM6,000 RM1,600

Direct cost of sales Additional 2 machine+1 Lorry Cost of Toll & fuel Advertising (magazine & Flyers) Lorry Maintenance Staff Salary Total Cost RM5,000 RM10000 RM3600 RM63,800 RM42,000 RM3,200

2014 (Break-Even Analysis)


Item Description Cost of Each cone (raw material) Sales Price of cone Total units Sold in 2014 Revenue [Unit Sale Price 8 Units Sold] COGS[Unit Sold*Cost of Unit] Other Variable Cost (Tol+Lorry Fuel) Total Variable Cost [COGS+Other VC]

Price RM0.50 RM1 650,000

Calculation

Sum

RM1x650000 RM650,000 RM325,000 650000xRM0.5 RM1,600 RM100+RM1500 RM326,600 RM325000+RM1600 RM650000RM326600 RM323400/650000 1xRM6000+ 6xRM600+RM5000+ RM5000 RM323400RM19600

Gross Profit [Revenue-Total VC] Gross Profit perunit=Total Gross profits/units sold Total Fixed Cost ( 1 unit ice cream machine +Lorry + StaffSalary + Lorry maintenance+advertising)

RM323,400 RM0.47

RM19,600

Net Profit[Gross Profit-Total Fixed Cost] Break-even Units=Fixed Operating Cost/Gross Profit Per Unit

RM303,800

RM19600/RM0.49

RM40,000

The Break-even analysis indicates that RM 3333 will be required in monthly sales revenue to reach the break-even point. Average Sales per month for 2013 is RM54166 and Monhtly Profit is RM36751 22

Marketing Management (GSM5200) PROPOSING A MARKETING PLAN FOR MINGOMINGO SOFT ICE CREAM

Item Description Cost of Each cone (raw material) Sales Price of cone Total units Sold in 2015 Revenue [Unit Sale Price 8 Units Sold] COGS[Unit Sold*Cost of Unit] Other Variable Cost (Tol+Lorry Fuel) Total Variable Cost [COGS+Other VC]

Price RM0.50 RM1 1,300,000

Calculation

Sum

RM600,000 RM3,200 RM603,200

RM1x1200000 1200000xRM0.5 RM200+RM3000 RM600000+RM3200 RM1200000RM603200 RM596800/1200000 2xRM6000+RM30000

RM1,200,000

Gross Profit [Revenue-Total VC] Gross Profit perunit=Total Gross profits/units sold Total Fixed Cost ( 2 unit ice cream machine +Lorry + StaffSalary + Lorry maintenance+advertising) Net Profit[Gross Profit-Total Fixed Cost] Break-even Units=Fixed Operating Cost/Gross Profit Per Unit

RM596,800 RM0.50

RM58,200

6xRM600+RM10000+ RM5000 RM596800-RM58200 RM538,600

RM58200/RM0.5

RM116,400

The Break-even analysis indicates that RM 9700 will be required in monthly sales revenue to reach the break-even point. Average Sales per month for 2013 is RM100000 and monthly profit is RM90300

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Marketing Management (GSM5200) PROPOSING A MARKETING PLAN FOR MINGOMINGO SOFT ICE CREAM

10.0

CONCLUSION

MyBoss Enterprise which is holding MingoMingo brand is having a financial difficulty. Immediate action in getting financial assistance need to be taken if the company is, in the first instance, going to survive competititon from Wafi soft ice cream and benefit from the opportunities that the company has been giving up to, then grow. The key area of reform is product and promotion. Management must address these areas simultaneously if the company is to overcome its present unfortunate situation.

It must be remembered that the analysis performed is limited. A greater depth of understanding and evaluation can only occur with utilization of other resources such as comparison with budget forecast and the statement of changes in financial position. Only after this process can a full appreciation of the companys current situation and possible future occur.

At this point the company does not have strong future prospects in the area of profitability, liquidity or stability if it continues on its current path. The company need to find the way to get financial support in order to operate at a more effective scale, besides upgrading its product and being more aggressive in promotions.

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Marketing Management (GSM5200) PROPOSING A MARKETING PLAN FOR MINGOMINGO SOFT ICE CREAM

11.0

APPENDIX

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