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4.1 Market analysis

Product Description

Making high-quality recycled aluminum picture frames is now possible and thanks to
Magistic. Ltd. Photo frames crafted out of aluminum, is the perfect way to capture the
exclusive moments of life. These photo frames are ideally made to keep everyone's
sweet memories intact inside a solid frame. Our aluminum photo frame will look
ravishing wherever they are placed.

Our multi-purpose Aluminum picture frames are perfect gift items for every occasion
and bring about an aesthetic charm to the surroundings. Manufacturers and exporters
of aluminum artifacts have experimented with the medium and dished out a spell
binding range of picture frames. Made of recycled aluminum cans as well as Perspex
which is a substitute to glass for the displaying layer as it is more resistant to impact,
plus, Synthetic rubber as to form the bottom layer of the product to prevent slipping in
addition to a clock piece placed at the opposite site of the displayed picture.

Our Multi-Purpose Photograph Frame consist primarily two photograph frames and
one stationary holder with a digital clock piece embedded. The photograph frames
offers superior protection to the photographs or pictures in terms of impact-resistance,
ageing and fire hazard. Moreover, it’s detachable from its support from the main
block consisting of the digital clock piece and stationary holder and comprises of
different orientation of the photograph frame to suit consumers’ needs. Besides from
having horizontal and vertical orientation, the photograph frame can also be wall-
mounted if the space is not available. Additionally, the product is recyclable in order
to keep our environment clean, in tandem with our company’s vision.

At we specialize in custom our multi-purpose picture framing using

recycled aluminum and fine art for your home and office. We offer only the finest
quality aluminum picture frames and take great pride in giving you outstanding
creative personal service with your picture framing needs.

Whether you are framing a small photo or a large one, we have a picture frame that
will make it look outstanding on your desk or table since there are a variety of sizes
and colors that suits all kinds of tastes and opinions for those who chase our multi-
purpose frame.

Material Used

Majority of the product consists of aluminum metal which is recycled from aluminum
cans. The quality recycled aluminum metals are equal to ore-produced aluminum but
recycling uses much less energy, cost less and reduces pollution. The aluminum cans
are recycled at a local recycling plant and later supplied to our factory.

Perspex which is a transparent thermoplastic. Chemically, it is the synthetic polymer

of methyl methacrylate. In our frame we are using it as an alternative to glass, and in
competition with polycarbonate (PC) because of it has a moderate properties, easy
handling and processing, and low cost.

Synthetic rubber which is made of polymer material, which acts as an elastomer to

form the bottom layer of the product to prevent slipping.

Also a digital clock piece is being inserted in our multi-purpose picture frame because
digital clocks can be very small and inexpensive devices that enhance the popularity
of product designs.

We always look ahead, finding ways to offer a greater variety of choices, materials
and support to our customers.

Marketing objectives
Our marketing objectives are;

Magistic. Ltd. Cultivate strong customers’ relationships.

We would like to aim for a return on investment of at least 15%
We would like aim to achieve an operating profit of over RM28 million
on sales of at
least RM180 million.

Target market

The target Market for our multi-purpose frame is Selangor and Kuala
Lumpur Region with 6 million and 4.3 million populations respectively.
Thus, the total would be 10.3 million. Our target market includes two
types as shown below

1. Business users, which include retail shops markets and outlets and
this will be our primary target market.
2. End users, include normal clients, and these end users consider as
our secondary target
3. Magistic. Ltd. is dedicated to the development of aluminum multi-
purpose photo frames that optimize satisfy customer's needs and

Market Segmentation

We have used some segmentations bases, Geographic segmentation

which divides the market into different geographical units such as
nations, regions, states, counties, or cities, then we use also
Demographic segmentation is the most popular segmentation method
because consumer needs, wants, and usage often vary closely with
demographic variables and are easier to measure than other types of
Finally we used Behavioural segmentation divides buyers into groups
based on their knowledge, attitudes, uses, or responses to a product
which our company will focus more in Behavioural segmentation.
Most of our customers get the idea to purchase our products during
occasions. We offers our customer unlimited idea on how they want
their bricks to be look like. We offer varieties of theme in relate to what
occasion that they will need it.
We have created many designs not just making some constant shape,
but any other occasion that which the customers that wish to order so
that our customers not need to tangle up in limited options.

User status
First-time users
Loyalty status
One of our strengths in this business is that the advantages of having
our very own loyal customers. We tend to build a strong relationship
with our customers, by maintaining continuously great quality photo
frames. We believe that our strong name is very much helped by these
loyal customers, and we are motivated to religiously making great
recycled aluminum photo frame designs, in a way to appreciate their
Our photo frames has superior performance advantages and nearly
total absence of conditions. All frames have Flexibility of design for
different pattern with width range colors.

Promotion Strategy

Magistic Ltd. As a new company with a new brand of product, we are

not only focus on developing a good product, and also attractive
pricing making it available to the target customer but also
communicate with our targeted customer. Therefore, promotion
strategy is an important element in order to introduce our brand new
product and communicate to the customers. It is not only can introduce
our product brand but also our company to the customers.
The percentage of our targeted sales also depends on promotion
strategies efficiency.
Magisitc Ltd. Used few types of advertising to promote Interlocking
brick pavers of short-term incentives to encourage purchase or sales.
First we are using sales promotion strategy. We offer credit purchases
for our customers, which purchased more than RM12, 000. The
postponement of the payment will be given to our customers are 2
month from delivered date. This will increase our sales customers do
not have to pay for the goods immediately.

Promotion tools
The promotion tools of our company are list as below:
1. Brochures
2. Newspaper
3. Business card
4. Website Brochures

The objective of brochures is to portray aluminum photo frames goals

and products as an attractive functionality. It is also to show customers
how to use the latest in design. Brochure could also be one of the many
ways to advertise a product to customers. The brochure contains
name, classification of the product, where it is available and all the
advantages of the product. Therefore, we have decided photo frames
brochure will be published every month. These updated brochures then
will be distributed to potential customers. The brochures will directly
introduce our product to the customer. This brochure also will be
distributed to every highdensity area in Malaysia.


We will also use media such as newspaper to deliver our message to

our target market. This is because readers tend to perceive newspaper
as being the most immediate medium in the market.

Business card
Magistic. Ltd. Will provide business card for all of our higher
management employees. The purpose we providing business card for
our customer and distributor are for them to contact us easily. It is also
useful in order to introduce our company and product because it
contains our company name, address, fax number and phone number.
Maintaining the relations with customers and interested retailers and
potential buyers, The potential investor, supplier, entrepreneurs and
customers know who to see if they want to discuss business and As
identification of members.

Market Group
1. Business people
2. Potential entrepreneur

Give to potential target market group
Give to business client and potential business client that you have interact with.


1. Low cost
2. Immediacy
3. Creates sense of importance in the potential client.


Item Cost per unit (RM) Quantity (set) Total (RM)

Business Card 24 6 144


The Objective of our Company Website

1. Providing the information about company and product, Aluminum
photo frame
2. Maintaining the relations with wholesaler
3. Increase the loyalty of customer to our product, “Aluminum photo
4. Receive and reply any enquire

Market Group
• People who visits our website

• Through our website,
• Advertise the background of the company
• List and information of product

• Low cost
• Immediacy
• Available at anytime
• Interactive


Particular Cost

Design Fee RM 9,000.00

Annual Registration Fee RM 1,000.00
Total Cost RM 10,000.00

Overall Advertising and Promotion Budget

# Advertising Tools Yearly (RM)

1 Brochures 1,200.00

2 Business Card 144.00

3 Website 8,000.00

Total cost for 1 year 16,644.00

Total cost for 5 years 83,220.00

Product Pricing Strategy

Price is the amount of money charged for a product or service, or the sum of the values
that customers exchange for the benefits of having or using the product or service. The
prices are that set by Magistic. Ltd. is not so expensive and affordable by middle and
above income customer. Our company use cost-based pricing.
Total cost is estimated as per one month. Total cost per month is estimated as RM
This includes RM 307578.67 as fixed cost and RM 85949 as variable cost. Production is
250000 units per month.

Therefore production cost = RM 1.61

Magistic. Ltd. Will earn (25)% mark-up on sales:

Distribution Strategy
Distribution strategy is very important aspect in marketing plan. It is
important for a company to choose an efficient distribution channel in
order to make sure that a product available for use or consumption by
customer. In other word, a good distribution strategy can make one
product constantly available for customer.

One of the distribution channels is by using intermediaries.

International Recycle Pvt. Ltd. Also decided that intermediaries are our
main distributor of our product. The purpose of using intermediaries is
their ability in making products available to target market. From the
economic system’s point of view, the role of marketing intermediaries
is to transform the assortment of products made by our company into
the assortments wanted by customer. Intermediaries also play an
important role in matching supply and demand.
As we known distribution is also one important thing to get profits.
Without distribution our company cannot achieve our company visions.
What for our company does advertising, promotion, campaign and
other more if our company did not take serious in distribution. It is
because with distribution, we can sell our product easily.

International Recycle Pvt. Ltd.may sells directly to customer who place

large order but also for small quantities of order. International Recycle
Pvt. Ltd. provides utility to the customer, that is, makes the product
convenient to purchase. For example, a high quality product will not
only carry a high price but also should be distributed in outlets with a
quality image.

We are using two methods of distributions:

1. Direct to customer from our own shop

Magestic.Ltd customer

2. Distribute through our shop/ selling points

Manufacturer Selling
Magestic.Ltd points


Marketing manpower

Manpower requirements

No. of staff in year

2009 2010 2011 2012 2013

Marketing Manager 1 1 1 1 1
Marketing Assistant 1 1 2 2 2
Sales Promoter 1 1 2 2 2
General Worker 2 2 2 2 2
Job specifications

Position Responsibility

Marketing 1. Make sure that marketing department is going smoothly and

inform the daily news to the Marketing Manager.

2. Create an efficient plan about company future marketing

plan in order to increase company sales.

3. Responsible in tighten up the relationship between company

and distributers or customers itself.

4. To motivate worker in order to produce an efficient

marketing plan.

5. Supervise the worker and make sure all the jobs given are
done on time and regularly update to the Marketing

Sales Promoter 1. Responsible for company’s marketing plan in term

of ideas
or task.

2. Promote the product to customers by ensuring the

is going smoothly.

3. Collecting information about the advantages and

disadvantages of the product from the customers.

4. Create new efficient marketing plan to increase

General Worker 1. Help in the production of the product from the
beginning to
end of process under the supervision of supervisor.

2. Ensure the company and office is cleaned and tidy

at all

Sales forecasting

Sales per month in 2010

Sales forcast for the fisrt year (last 6 months of 2010)

Month Sales

Units RM

July 40,000 80,000.00

August 50,000 100,000.00
September 60,000 120,000.00
October 70,000 140,000.00
November 80,000 160,000.00
December 90,000 180,000.00

Total: 390,000 780,000.00

Sales forcast for the fisrt five years

(2010 to 2014)