Choices website provides an avenue for customers to search for products

Choices website provides an avenue for customers to

This preview shows page 14 - 18 out of 20 pages.

Choice's website provides an avenue for customers to search for products information before deciding on a purchase. It should be actively updated, every day, almost every time to disseminate new messages or communicate about seasonal offers. Individual bloggers may link their blog to Choice's website referring good ratings on products at Choice stores, to express their perception on the benefits of using the product. Website dynamics can prompt shoppers to sign up online, and detailed customer information is attained. From there, Choice may email weekly newsletters to engage customers further to shop at Choice. A video section on the webpage is 12
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useful to show how Choice employees promote products to increase awareness of Choice's product offerings. Effective marketing program combines all marketing mix elements as a tactical tool to establish secure positioning in target markets. Customers buy value or solution to a problem, as they are interested not only on the price but the benefits it offers them by using the product until the disposing of the product. Aside from wanting products to be conveniently available, they also want to interact with the seller. 6.0 Budget 6.1 Sales Forecast The yearly sales forecast is measured based on the seasonal period and public holiday. Based on the Audited Financial Statement 2018 of Choice Group, the sales revenue was recorded an amount of RM7.0million. The prediction for sale forecast is recorded at 15% sales growth for year 2019 as depicted as below : Diagram 2 : Choice’s Sales Forecast Prediction 6.2 Expense Forecast Aggressive marketing budget is an importance reflection of marketing strategy attributes. The marketing expenses comprises the following:- i) Website and mobile application programmer; ii) Installation of self-service payment counter; iii) Printed materials; and iv) Local Newspaper 13
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The expenses forecast depicted as follows: Jan Feb March April May June July Aug Sep Oct Nov Dec 0 50,000 100,000 150,000 200,000 250,000 300,000 Marketing Expenses Web and Mobile Application Programmer Local Newspapers Print Materials Self-service counter installation Diagram 3 : Choice’s Expenses Forecast 6.3 Linking Expenses to Strategy and Tactics This Marketing Plan will be linked directly to sales revenue. If the sales increase the marketing expenses will also be increased. Currently, the marketing expenses are about 5% of sales revenue or recorded at RM400,000. The marketing mix strategy, as stated above, will be monitored closely to determine the effectiveness of this marketing plan. The adjustment for marketing strategy will be made based on CRM to improve the sales revenue. 6.4 Contribution Margin Based on the Audited Financial Statement 2018, Choice has recorded revenue and cost of sales of RM81,761,232 and RM78,239,458, respectively. As for gross profit is recorded at RM3,521,774. 14
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The Contribution Margin is 4.3% calculated based on the below formula: Total Revenue – Cost of Sales = 4.3% Total Revenue 7.0 Controls Control activities must be in place in order to monitor the number of customers and measure customer service satisfaction. Immediate response to resolve customer issues is essential to ensure customers do not leave for good.
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