Marketing Plan

March 26

2016Submitted to Dr. Frankie Wong (MBA 6033) By Haris Awang

SHARQBIQE CYCLING APPAREL

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1.0 Executive Summary

Sharqbiqe Cycling Apparel is a company that

manufactures and markets cycling sports

apparel under its own brand name, Sharqbiqe.

Sharqbiqe products are jerseys, t-shirts, pants,

base layers, gloves and socks. The operation is

based in Putrajaya, the hotbed for cycling

activities both for professional and recreational

cyclists. Products are sold mainly online while a

small portion is sold at events and carnivals.

Sharqbiqe does not market its products at

retailers. Cycling has been a booming sports in

Malaysia and has been getting the good support

from the Youth and Sports Ministry. Annual

events such as Le Tour de Langkawi, Jelajah

1Malaysia, MTB Jamboree Challenge, Kayuhan

Ceria, Putrajaya Interparks Ride, KL Car Free

Day, among countless other activities organized

throughout Malaysia, have given the boost to the

cycling industry in Malaysia. Moreover, bicycle

lanes are being allocated to accommodate the

growing interest as evident in Shah Alam,

Putrajaya, Penang, Kuala Lumpur and

Cyberjaya. A growing number of cyclists

especially recreational, has created a market for

cycling apparel and accessories. Sharqbiqe

products are manufactured with heavy emphasis

on fashion, quality and practicality. The Founder

and CEO of Sharqbiqe has been a cycling

enthusiast as well as an industrial designer and

a businessman. His passion in making the sports

more enjoyable while being fashionable is what

drives Sharqbiqe to maintain its presence in the

industry.

2.0 Situation Analysis

Sharqbiqe is entering its second year of operation

and its products have been well received by

cyclists all over Malaysia. However, marketing will

be key to the development of products, brand

awareness and the ability to compete especially

with foreign brands.

2.1 Market Summary

Sharqbiqe has a good knowledge of customers’

buying behaviour and requirements. The

understanding is leveraged to Sharqbiqe’s

advantage so that customers will be getting more

values for their money.

Target Markets

Recreational

Clubs

2.1.1 Market Demographics

The profile of Sharqbiqe customers are mainly

described by the following characteristics:

Geographic

At present, Sharqbiqe is only targeting local sales

throughout Malaysia

The total target population is 600,000 customers

which about 2% of Malaysia’s population (source:

Youth and Sports Ministry)

As there’s an indication of interest in Sharqbiqe

products from overseas, the plan to expand the

market will be realized within the next two years

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Demographics

The ratio of users is 86% male and 14% female

(Table 2.2).

The users have a median income of

RM3,000/mo.

Cycling categories: MTB 52%, Road 35%,

Folding 10%, Downhill 2%, Others 1%.

Behaviour Factors

Users engaged in cycling for fitness, social and

adventure

Buying is skewered towards the end of the month

i.e. payday

A spike in buying is usually observed prior to big

cycling events

2.1.2 Market Needs

Sharqbiqe is providing the cycling community with

a diverse range of products that offer the following

benefits:

Quality. Quality starts from design, followed by

the selection of raw materials and manufacturing

Trendy design. Fashion and trends are carefully

analyzed to ensure that products are not out-

dated

Customer Service. Responsiveness in order

processing and handling after sales are crucial

for customers’ satisfaction

2.1.3 Market Trends

As more and more people are conscious about their

health, cycling has become a choice for people of all

ages. Cycling does not need a court or a field an it

can be enjoyed at any time, any place, alone or with

friends.

Customers are demanding apparel that can suit

their cycling activities. Whether it’s to keep up with

the trend, cycling is fast becoming a lifestyle.

Sharqbiqe is not only selling apparel, it’s selling

lifestyle.

Another trend is team or club cycling which has

created a demand for customized apparel.

2.1.3 Market Growth

The political, economical and social stability in

Malaysia also provide the ground for cycling

consumer market which is forecasted to be growing

(Table 2.1) at a steady pace. More and more people

are discovering cycling to be a choice for low-impact

sports that benefits their health.

2.2 SWOT Analysis

The following SWOT analysis describes the

strengths, weaknesses, opportunities and threats

faced by Sharqbiqe.

2.2.1 Strengths

Creative designers who are also cyclists

Industry experience

Locally available resources – raw materials,

manufacturing and expertise

2.2.2 Weaknesses

Dependency on external funding

2.2.3 Opportunities

Overseas market penetration

Other sports market penetration

Lower costs, higher profits

2.2.4 Threats

Competition from established foreign brands

Economic recession

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2.3 Competitions

In the crowded market of sports apparel, Sharqbiqe

has found its niche - the cycling market. Due to the

weaker Ringgit, foreign brands are becoming

expensive and beyond the affordability of the

masses. This is a vacuum that Sharqbiqe believes

it can fill.

The online channel has also given Sharqbiqe

the advantage in cutting costs as it does not

require retail outlets as well as middleman.

2.4 Product Offering

Sharqbiqe main products are as follows:

Jerseys – made from selected materials that are

cool to wear in warm climate

Base layers – usually worn by athletes

underneath the tops. This product has a sweat

absorption characteristic and wicks away

moisture so athletes can stay dry and

comfortable at all time.

Pants – cycling pants consist of specially made

padding that is infused to the outer material to

add comfort to the ride

Socks – sweat wicking technology so feet stay

dry and comfortable

Gloves – for hands protection and grip

2.5 Keys to Success

The keys to success are costs, product positioning,

promotions and product designs that meet market

demand.

2.6 Critical Issues

To remain competitive in the industry, the critical

issue are for Sharqbiqe to:

Establish itself as a brand that surpasses

customers’ expectation in price, quality and

fashion

Tap overseas market

Operate under a controlled growth so as to

remain profitable

3.0 Marketing Strategy

In the fast changing market, the right strategy plays a

crucial factor in determining the success of

Sharqbiqe.

3.1 Mission

Sharqbiqe’s mission is to provide customers with

high quality cycling apparel at affordable price.

Customers should have more fun wearing

Sharqbiqe apparel while doing the sports that they

love and enjoy very much. Our slogan “Fun to Ride”

underscores our mission.

3.2 Marketing Objectives

Increase market penetration

Increase brand awareness

Acquire better customers feedback as a tool for

product development

3.3 Financial Objectives

Increase the profit margin by 1 to 1.5% per quarter

by broadening local procurement and outsourcing

Achieve double-digit growth in the next three years

3.4 Target Markets

Sharqbiqe aims to focus on local market for the first

two years of its inception. This is to strengthen its

base before it penetrates into overseas markets

which will realize within the next two years.

3.5 Positioning

As cycling is becoming more and more popular

sports, Sharqbiqe aims to position itself as a provider

for cycling apparel for the masses.

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3.6 Strategies

Sharqbiqe is leveraging itself by utilizing the latest

available technology as part of its marketing

strategy. First is the Sharqbiqe website that utilizes

state-of-the-art shopping cart and up-to-date

contents. Sharqbiqe is also broadening its

presence by social media channels - Twitter,

Facebook and Instagram. Traffic from these

channels are directed to the main website for

customers to make their purchases.

Second, Sharqbiqe will also be promoting itself

through sponsorship of events and endorsement

deals with popular sports personalities.

3.7 Marketing Program

Sharqbiqe marketing program will revolve around

the following approaches:

Pricing

Distribution

Advertising and promotion

Customer Service

3.8 Marketing Research

Marketing research is conducted at the point of

purchase:

Online upon each customer’s transaction

Onsite at events

On social media where so much data can be

observed and obtained

4.0 Financials

This section will provide an overview of marketing

related activities. The break-even analysis, sales

forecast and expense forecast will highlight how

they are linked to the marketing strategy.

4.1 Break-Even Analysis

In this analysis, a monthly sales revenue of

RM12,300 is required to break-even.

4.2 Sales Forecast

The sales forecast is based on a conservative target

of 10% of potential customers from Table 2.1.

4.3 Expense Forecast

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5.0 Controls

This marketing plan serves as a guide for the

company. The following key performance areas will

be monitored to gauge Sharqbiqe’s performance:

Revenue: monthly and annually

Expenses: monthly and annually Customer satisfaction

New product development

5.1 Implementation

The implementation is as per the following plan.

5.2 Marketing Organization

Jessica Biqe will be responsible to head the

marketing department and the overall marketing

activities.

5.3 Contingency Planning

Difficulties and Risks

An already crowded market dominated by big

names with bigger budget

A hike in minimum wages as mandated by the

government

Worst-Case Risks

Market slump resulting in economic recession

Political instability resulting in less support for the

cycling industry

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Notes