EXECUTIVE SUMMARY

MARIPOSA ENTERPRISE

The Kite industry has expanded rapidly in the past several years and growth is expected to continue a strong pace for the foreseeable future. This offers excellent opportunities for new companies to enter this market. In addition, we intend to address the needs of customers in this market who seek higher quality of kites, then, we will address to selling and distributing higher end kites in Malaysia. Distinguishing of our business will be the top quality products and special emphasis on high level of service.

Furthermore, we have been incorporated in 2010, October 5 in the state of Pahang, specifically in Kuantan. Mariposa Enterprise was inspired by a set of shared beliefs and values that underpins the way we manage our company, in maintaining customer focus in everything they do. At this time, we are seeking additional equity capital to compliment our own equity investment and seeking to arrange a bank line for inventory and receivable financing.

The objectives of Mariposa Enterprise are to create awareness among people about our culture and heritage, especially for young generation, to be presenting the national culture when it comes to abroad, to develop market position in KITE industry in Malaysia, to provide more variety of KITE designs to KITE players especially and to encourage people to be creative and passionate in the KITE game.

The success of our business will be largely a result of superior products, superior service, and extra attention to detail throughout our operation, personnel and our high level of experience in the industry by focusing on customers in the ages of youth and adults. In particular what sets us apart from the competition in the market is that we are going to sell higher quality of end kites, higher service and good market analysis to be producing the product in the market. This allows us to give absolutely top service and product selection for these accounts without getting distracted from the very different product and service demands of the more mass market.

By the way, our strategy is to focus 100% of our efforts on the market for upscale kites. By focusing all of our effort and energy on this particular niche, we expect to quickly develop and maintain a better position, while other firms try to be all things to all people. Then, we believe that our singular focus will give us significant advantages. Otherwise, we will able to respond to changes in this market much faster that our competitors.

In extra, we will offer the best, most highly personalized service and highly quality product in the marketplace we serve to the customers that we focused. Moreover, being a new partnership company, we intend to use these opportunities or advantages to be absolutely certain that every one of our customers receives excellent service and product that we offered. Meanwhile, we will go out of our way to make sure that our customers know that they truly matter to us, in fact, our sales representatives and in-house employees will be trained carefully before they deal with the customers and they will be given wide latitude for insuring that customers are always satisfied on what were offering.

In order to effectively launch the business, we need a total amount of capital RM 200,000. Out of these amounts of capital, we lend from a Public Bank RM150, 000 with interest 5.5%. This amount will be used in operations until cash flow becomes positive. Another RM50,000 are come from co-founders, Wan Hasma, Kamarul Ariffin, Jane, Farah Diana, and Nur Kamarul Hafiz, which each of us has spent RM 10,000.

So, we expect that Mariposa Enterprise will be profitable within two years, then, within three years of reaching break-even that this new investment could be cashed out by either the founding partners purchasing this investment stake or by replacing the investment stake with additional bank financing.

COMPANY DESCRIPTION

Company Name: MARIPOSA ENTERPRISE

Industry: KITE

Type of company: Partnership Company

Location: Kuantan, Pahang.

Date of incorporation: 5 October 2010

Co-Founder:

1. Nur Kamarul Hafiz b. Jamil (Managing Director) 2. Wan Hasma Hazwani bt. Wan Hussin (Operating/ Quality Control) 3. Kamarul Ariffin b. Kamaruzaman (Account/ Finance) 4. Jane Gin Sah Juan (Human Resource) 5. Fara Diana bt. Adnan (Sales and Marketing)

Number of employees: We currently have 20 employees including five co-founders to help the company operate the business. The company consists of four department in the company that are sales/marketing, account/finance, human resource and operating/quality control. Every department consists of 5 employers and there are 5 employees in every department.

Expanded Target:

We are projecting to expand our business to be the market leader in Malaysia. Currently, we have been expanded our market in east and west Malaysia such as Terengganu, Kelantan, Johor, and Sarawak. The reasons why we expand to these states are from the research that weve done, there are few kite companies in those states, there have a big population and there are kite festivals conducted in those states.

Future Planning:

1. Develop more new designs to be offering specifically to kite fans by In-house. 2. Open new branches within the targeted markets when our company well-established. 3. Create strategic alliances with other parties such as the government (Tourism Malaysia) to promote our product globally. 4. Create more business lines to attract the customers needs and expanding the business such as conducting event for kite competition or festival. 5. Conducting a kite workshop regarding to gain more knowledge about the kite, how to build a business based on kite and many more. 6. Make a Kite delivery service to the customer

STRATEGY PLAN

Mission

1. To create awareness among people about our culture and heritage, especially for youth. 2. To develop market position in Malaysias KITE industry. 3. To provide more variety of KITE designs, especially to KITE players 4. To encourage people to be creative and passionate in the KITE game

Vision
Our visions of what our company will become in the future are:

1. To have good relationships by doing strategic alliances and become a well-known KITE company in Malaysia as well as abroad. 2. We will work closely with each other as to recommend product assortment unique for the customer base, pricing and display assortments. 3. We also want to be a presenter of our national culture, Malaysia when it comes to abroad. 4. We will deliver the most innovative and exciting products possible to the customers we serve. 5. Create more business lines to attract the customers needs and expanding the business such as conducting event for kite competition or festival.

Goals
We are focusing our goals into two main factors. There are:

1. Financial goal

We projected that Mariposa Enterprise will be profitable within two years and we projected that we will reach break-even in three years. Therefore, we expected that our sales would be increased 10% each year to reach that target. In other words, we will struggle to market our product in the domestic market since 2010 onwards and each year started from 2010, the sales would be 10% as we expected.

In addition, the profit generated would be divided into the shareholders according to their portions in the company. As mentioned, each partner has come out with RM 10,000 per person; therefore, the profit will be equally divided to all the shareholders.

2. Non-Financial goal

We projected that if the target sales were achieved to 10% per year, the employees would be given benefits such as bonus according to the number of sales percentage that were achieved. It means that, if the target sales achieved at 10%, each employee will have their bonus each year and probably they will earn the bonus based on the month of salary.

Otherwise, the company offers incentives such as insurance, KWSP, medical, pay leave and maternity leave (especially for those women). For the insurance of the employees, the company will bank in the percentage of insurance for employees into the PERKESO and the company therefore will bank in the percentage of the money for the employees in the KWSP.

In addition, the company provides medical treatment, pay leave and maternity leave (if any female) to employees. We will cost the medical treatment for each employee is RM100 per person and for high position employees is RM 200.

Competitive Advantage
The companys competitive advantages are:

1. Offer the best highly personalized service and highly quality product in the market. Our company wants to create a good environment and relationship with our customers. It is because we want our customers to feel comfortable to dealing with us. We will try to accomplish any demand from our customers and try to satisfy their needs in term of the design that they want, the types of material that they demand of and we will ensure that our product have a high quality standard of materials.

2. Provide an excellent and product-offered to customers. The excellent offers are in term of the design that we produce any discount price to our customers and also the customers who buy in large quantity units of kites, special delivery service that we provide and also the after sales service such as repairing and redesign the kites.

3. Have trained employees to satisfy the customer needs and wants. Our HR department have hired an experience and well trained workers. Our employees will be trained to become customer friendly workers. Beside that our company also provides seminars and workshop to the workers in order to enhance their knowledge and increase their confident levels when dealing with customers and supplies as well.

4. Impressive marketing strategy in introducing the product in the market such as web site. Our company have develop a website that is full of information regarding the products and services that we offers, our background company, the price list for our products and our contact number as well. The customers also can email us about any question or curiosity that they have about our company or product at our website www.mariposakite.com.my.

SITUATIONAL ANALYSIS

Our situational analysis is based on the Mariposa KITE. The situational analysis consists of two major factors; there are SWOT ANALYSIS and INDUSTRIAL ANALYSIS.

SWOT ANALYSIS

Category

Strength

Weaknesses

y y Management

Well-trained employees Highly customer service to satisfy customer needs and wants

Lack of suppliers and customers

A newbie that competes with largely established KITE companies (such as Windancer)

Offerings

y y y

Highly quality of product A variety of designs Customizations

No delivery service

Marketing

Marketing tools: y y y An attractive website Trade Shows Publication and advertising through magazines and

Small budget in term of promotion .

mass media such as Radio.

Personnel

Managed by 5 founding partners

Only few partners experienced in KITE business.

Simple organizational structure

Finance

Low cost of production

Higher initial costs

Manufacturing

Good

relationship

with

y y

current suppliers y Testing process

Outsourced making process Lack of expertise

Research & Development

Always alert with competitors strategies

Small budget for marketing research

Always do some market research to other regions or countries

Category

Opportunities

Threats

Consumer/Social

Offers more designs to customers

Many designs were offered by the competitors

Encourage young generation to passionate to this playing tool y

Difficult to influence youth because of other playing tools in the market (such as GameBox, Playstation, etc)

Competitive

Have

great to

Have to compete with wellestablished companies and other newbies in the same industry such as DEQRI company

opportunity

expand market share

Technological

Well-speed

service

Limited sources to generate a complete technology in making and creating KITE

in terms of payment y Ordering process is very efficient and effective

Economic

The price offered is reasonable and affordable

Fluctuation could effect the market condition

Legal/Regulatory

Followed the safety requirements provided by the government

Have to be very aware with the Malaysian law and regulation

SWOT ANALYSIS

1. Management
Strength y Well-trained employees Mariposa Enterprise have well-trained employees that responsible in every task or duties that they responsible in. Our HR department will make sure that they hired experience, responsible, and high sense of creativity people in order to generate a strong team in the organization. For the new employee, our company will provide training for them in order to give them an idea about what is the company is about, what kind of business that our company is dealing, and what is their job specification in the company.

Highly customer service to satisfy customer needs and wants Our company believes that customer service is one of the important parts in the business function. Therefore Mariposa Enterprise will focus more on the customer service department in order to satisfy our customer needs and wants. We will make sure that the employees in the customer service department are a customer friendly person, and have a great capability in dealing with clients and suppliers. Customer is always right. We will ensure that our customers feel satisfy and comfortable when dealing with our company. We will hear any complain that they makes and try to solve any problem that occurs and also try to fulfill any demand from our clients.

Weaknesses Lack of suppliers and customers Mariposa Enterprise is a new company that established in 5 October 2008. Therefore we lack of suppliers as well as customers. However, we believe that our company will increase the no of suppliers and customers in years later.

A newbie that competes with largely established KITE companies (such as Windancer) As a new company in the market, we definitely have to compete with the existing established companies such as Windancer. We have to create a competitive advantage of our company and do a positioning and differentiation strategy in order to success in the market.

2. Offerings
Strength y Highly quality of product Our company will only produce a highly quality of product in order to maintain our customers satisfaction level and build a good reputation of our company. We will select only a high quality of raw materials such as the bamboo sticks, fabrics, colors and as well of design. Before we sell the product to our final customers, we have a quality control department that responsible to test the kite first before it can be selling to our customers. A variety of designs Our main design is the Sterna design (burung camar batu design). Our company is focus more on the flora and fauna design. Other designs that available are such as Rafflesia design, Hibiscus design, caterpillar design, cock design and many more.

Customizations Beside that kind of design, our customer also can demand their own design that they want us to create for them. The price of the design that has been demanded will vary from the existing design that our company has produce.

Weaknesses y No delivery service Our company is a new company that just established in late of 2008, therefore we want to minimize some cost including the cost of delivery service. Our customers have to take their orders at our company themselves. Nevertheless, in our future planning; we definitely want to provide the delivery service to our customers to ensure that they satisfy with the customer service that we will provide to them in the future.

3. Marketing
Strength

The strength of our company is our own marketing strategy. We have good marketing tools in term of an attractive website, trade shows and as well as publication and advertising. An attractive website Mariposa Enterprise have create an attractive website that is full of information about our products in term of the price that we offers, the variety types of design of kites, where our company located and also our contact number. So that it is one of the easiest ways for our customers to get any information regarding our products, services and also about our company itself. Besides that, the customers can simply give any opinions ask any questions regarding our products through the website.

Trade Shows Mariposa enterprise will participate with any trade shows such as kite exhibition, kite competition, and any kite workshop that available in Malaysia. Through the trade shows, we will introduce our company to the public and let them know more about what is our company is about and what kind of business that we dealing in.

Publication and advertising through magazines and mass media such as Radio In term of publication and advertising, we choose Libur magazine and Pahang fm as the mass media for our company. The reason why we choose Pahang fm is because our company is situated in Kuantan, furthermore we want to lower down the cost of advertising by choosing only the radio station that gives us the reasonable price and Pahang fm is the most reasonable price that they can offer to us compare to the other radio station.

Weaknesses y Small budget in term of promotion Our company just allocates a minimum amount of money in term of the budget in promotion. Therefore, we cannot expand and promote our product in all over Malaysia and the advertising is just focus only in certain areas such as Pahang state.

4. Personnel
Strength y Managed by 5 founding partners The company will be managed by the five founding partners, whose individual areas of expertise cover many of the functional aspects of the business. Mr. Kamarul Hafiz serve as the Managing Director, and will responsible in the whole activities in the company, miss Fara Diana is responsible in the sales and marketing department, miss Jane is responsible in Human resource Department, Puan Wan Asmah is responsible in operating / quality control department and mr. Kamarul Ariffin is responsible in accounting and finance department. Each and every one of the core founders has their main knowledge and expertise that will ensure the smoothness of the company activities.

Simple organizational structure As we only have 25 employees including the five core founders, so our organizational structure will be much more simple and easier to manage and there will be less conflicts that occur in the organization and it will be much easier for the five core founders to evaluate and control their own staff in every department.

Weaknesses y Only one partner who experienced in KITE business There is only Managing director ( mr. Kamarul Hafiz )that the only one core founders that have the particular knowledge and expertise regarding the kite company. Mr. Kamarul Hafiz has 6years experience in working with the giant kite company, that is Complex Layang-Layang Pasir Gudang, Johor.

5. Finance

Strength

Low cost of production Our company did not do our own production. Therefore, the cost of production would be cheaper or lower. In fact, we do not need to pay water or any material bills to process the kite.

Good collaboration between partners Basically, our partners have spent RM10, 000 for each of them. This shows that our amount of capital has been covered from the money given by the partners and also this shows the collaboration in opening business is good between them.

Weaknesses y Higher initial costs Initial cost means a new company needs more money to open the business because they need to struggle in having good position in the market, at the same time attract people to buy their own product. It is same with our company because although we have cut off the cost of production, we still need more cost to cover other expenses such as equipment, transportation installment, promotion and more as helping to run the business very well. This will give us a weakness as a beginner in the new market.

6. Manufacturing

Strength y Good relationship with current suppliers Although we have only a few suppliers, but we have a good relationship with them. We have a very good communication and can have a great deal that will satisfied both parties and create a win-win situation.

Testing process Testing process will be done by the quality control department that responsible to test the kite first before it can be selling to the final users. The quality control includes in term of their raw materials, durability of the fabrics and any that related.

Weaknesses y Lack of expertise We dont have any specialized expertise in term of employees that have knowledge in the kite making process, so that we have to do outsource making process.

7. Research & Development

Strength y Always alert with competitors strategies Our company will always been updated with the new competitors strategies such Windancer Company. It is to ensure that our strategy will not be left behind them. We will always update our strategy to let us maintain in this kind of market.

Always do some market research to other regions or countries The sales and marketing department will responsible in the research process of the company. The people in the sales and marketing department will do some research regarding the customer preferences, the customers price elasticity, the demographic factors and etc.

Weaknesses y Small budget for marketing research As the new company that had established in less than half years, our company has to minimize the cost includes the budget for the marketing research.

1. Consumer/Social

Opportunity Offers more designs to customers Mariposa Enterprise had offers variety types of design to the customers. It is to ensure that the customers able to choose which types of kite design that is suitable with their taste and preference. We have lots of flora and fauna design that is so beautiful and interesting that they dont want to miss it.

Encourage young generation to passionate to this playing tool Other type of opportunities that we have is beside to gain the profit of selling our kite, we are able to encourage young generation to be passionate with this playing tools. As we all know, kite game is one of the traditional games in Malaysia. This game represents our unique culture that have a variety types of traditional games. Besides playing kite, our traditional games are such as playing guli, galah panjang, batu seremban and many more that definitely have its own uniqueness and valuable assets of tradition for our country. The encouragement for young generation to playing kite is a very good way to keep our traditional games to be still in mind of all of our Malaysian generation.

Threat Many designs were offered by the competitors From the research that we had done, its not just our company that offers variety types of kite design, but majority of our competitors also do the same things. For example the Wind Dancer Company were also offers a lots of design to their customers such as Beside offers variety types of design, they also provide a service whereas they will do the design that the customers demand of as same as what we offers to our customers.

Difficult to influence youth because of other playing tools in the market (such as GameBox, Playstation, etc) Another threat that we have to faces regarding the consumer/social group is the the difficulties in influencing the youth to make them like to playing kite. As we already know, in this era of globalization; the youth people are more prefer games that have full of digital things, technology, and modern games such as the Gamebox And the Playstation that already well known and have been sell in the market.

2. Competitive

Opportunity

Have great opportunity to expand market share There is a small company that involve in the kite industry in Malaysia. Therefore it is a great opportunity for Mariposa Enterprise to be a market leader in this industry and can increase their brand image in the kite industry. Furthermore the competitors in this industry are not so much and our company no need so worry about the competitors and just stay offers the great product and services in order to maintain in this industry for a long time.

Threat

Have to compete with well-established companies and other newbie(s) in the same industry such as DEQRI company The threat of the competitor is we have to compete with well-established companies and our own close rival such as the DEQRI Company. As the well established company such as the Wind Dancer Company, they definitely have their own strength in the market and have already know who their customers are and what is actually their target market is.

3. Technological

Opportunity y Well-speed service in terms of payment Mariposa Enterprise have a well trained employees in the financial and accounting department have a great responsibility, knowledgeable and have experience in the payments process. This will lead to the well speed service in term of the payment in our company. Beside that, we had increase our payment services such as the customers can pay the payment through online and we also accept the credit card to make the customers feel easier and comfortable with the payment services that we provide to them.

Ordering process is very efficient and effective Our customers can simply ordering their kites through our website or they can just

call us and make the ordering process. Our employees will then take the orders and will tell the customers when they can get their kites, how the payment process and other sort of information that related in the ordering process.

Threat

Limited sources to generate a complete technology in making and creating KITE As a new company in this industry, we just have a minimum budget and limited

capital to generate a complete technology in the production process of making and creating kite. We dont have employees that have an expertise and knowledge in making kite. We have to outsource the kite and this process requires a high cost.

4. Economic

Opportunity

y The price offered is reasonable and affordable

Mariposa Enterprise had offered a reasonable and affordable range of price that make this company is the chosen place for customers to buy kites. The range price of our kite is average of RM72 and above, because the price also depend to the design, fabric and other factors that related to the kite making.

Threat

Fluctuation could effect the market condition The unfavorable condition of economic such as the recession, and inflation; will

affect the market condition in this industry. For example, if there is a recession; customers buying decision will change. Literally, they will not spend their money to buy kite because they just buying kite for their leisure time and kite is not needs for their life. There will just prefer to buy only an important and needs items such as foods and basic clothes.

5. Legal/Regulatory
Opportunity

Collaborate with government to get the copyright and license. Mariposa Enterprise has our own license that enables us to run the business according to Malaysian law and regulation. We also had made a copyright for all of our kite design that prevents the outsider to copy our design of product.

Threat y Have to be very aware with the Malaysian law and regulation Mariposa Enterprise has to be more aware with the law and regulation in this kite business to prevent any unfavorable problems such as to e sued by the court. We must have a great knowledge about the Malaysian law and regulation and we also must know well they do and dont in the business world.

Industrial Analysis

COMPETITION:

1. Domestic Our company is specifically focusing on domestic areas because we are still newbie in the kite industry. Basically, in domestic market, there are many competitors that we must face the challenges such as WINDANCER, DEQRI, AVANT GARDE, and many more. Basically, our competitors are positioned their businesses in such areas: Kuala Lumpur like Central Market, and One Utama Shopping Mall, Petaling Jaya.

The reason weve positioned our business domestically because: y y Lower cost Less risk

Lower Cost In Domestic market, there are so many resources that we could gain such as suppliers because to do business domestically, it helps us to get resources in easy way and it doesnt need us to take out some large money. In fact, our company doesnt need to do exchange in terms of currency.

Otherwise, it also helps us easy to promote our product in the market because of we already know where the exactly places to do promotion and to pay our employees also could be cheaper

Less Risk

This explains that our company will have less risk if we open the business domestically because we already know the regulations or legal requirements that we need to follow. In fact, our company can always update the economic condition with the bank or some institutions like Bursa Saham.

2. International As a new company, were not focusing internationally yet because of so many factors that might be incurred. There are:

y y

High cost High risk

High Cost To do businesses internationally, it needs us to open up with big amount of money because we need to do some research and it may take long time to complete that research about the market conditions and the customer preferences. In fact, our company will need to look out the exactly suppliers and any other resources that may use for our operation in abroad. This might cost our company in higher conditions as well as we need to do currency exchange in doing business abroad

High Risk Different countries have different politics and economic conditions. This might get us in trouble if we are not ready yet in doing business internationally. It is because we need to search what kind of regulations or legal requirements that must be followed and how their economic conditions and politics that we must always be aware because if we dont follow the criteria set by the country we opened the business, it may make us in trouble.

In addition, our company has to face international competitors like Rainbow Kite.Inc and many more, where most of them already well-established in international market.

COMPANY ANALYSIS:

Company Name: MARIPOSA ENTERPRISE

Industry: KITE

Type of company: Partnership Company

Location: Kuantan, Pahang.

Product features:

y y y

Fun Colorful Malaysian Theme

Our product is giving some fun to those customers who will buy the product because it relates to the nature (Fauna). In fact, the colors we offered to them are so huge and it comes with so many different colors that may give the customers some happiness when they play or use our product. In addition, our main product is known as Burung Camar Batu because it shows the Malaysian theme of our country.

Basically, this bird is scientifically known as Sterna Anaethetus. Malaysia is one of the 12 countries that have been certified as Mega diversity in terms of the total number flora and fauna with hundreds of thousands of floras and mamalia. So, by focusing on this, we could achieve the target as to show the Malaysian theme in our product.

Main Objectives:

y y

Create culture awareness Present the national culture

The purpose of our product is we wanted to create culture awareness among people, especially, youth. It is because nowadays, the youth are not really taking apart in this game because there are so many substitute products or games have influenced them to play more such as Game Box, Playstation and so on. In fact, all these games are not requiring them to move a lot, just move their fingers. Therefore, by producing our product in the market, we at least can generate some awareness to them how much important the kite in our culture as do not want it no longer in the culture.

In addition, we wanted to present our national culture to other countries such as Japan, USA and more. Each year, our country will organize the Kite Festival such as Kelantan Asian Kite Festival, Kite International Festival, Borneo International Kite festival in Bintulu and many more. Thereby, by taking apart in such these festivals, we could represent our national culture to those players who participated in the same festival.

CUSTOMER ANALYSIS:

Who are the customers? y y y Our customers are based on youth and adults as well as tourists. Youth : 20-25 Adults: 25 and above

When do they buy? y The customers will buy the KITE based on seasonal festivals or even based on hobbies

Where do they buy? y Our customers can buy our product at our own store or outlet in Kuantan, Pahang.

How do they choose? y The customers can choose the product based on their favorite of designs and features or based on our own designs offered to them.

Why they prefer a product? y The customers will prefer the product based on the quality and the uniqueness of our product offered.

How they respond to marketing program? y The customers will respond our marketing programs through the ads (such as small budget sport magazines and newspapers) and website.

Will they buy it again? y The customers would definitely buy our products again because of the quality and reasonable price that we offered.

PRODUCT MARKET FOCUS

In this section, it is divided into two focuses. There are Marketing-Product Focus and Product Differentiation.

 MARKETING PRODUCT OBJECTIVES:

y y y y

Create awareness Develop a brand image Be a competitive product in the market Represent the culture

Create Awareness We are using some approaches or tools in order to create awareness of our Kite that are through radio (Pahang fm), magazine (Libur) and trade show. We are choosing these approaches because most of our target audience are expose to these radio station and magazine. As well as trade show can trigger potential customers to come to our open booth and see our Kite designs and features and at the same time they will learned skill and technique required to play the Kite. This can attract them to play the Kite.

Develop a brand image We want to develop a good brand image in Kite industry to represent our company and product offering in the mind of customers. We are focusing our product in term of high quality with a reasonable price. With our trademark fly with us can make customers remember our product. That is, when think about to buy a Kite, they will directly refer to our brand

Be a competitive product in the market To become a good competitive product with the other competitor in the existing market, we are focusing on the design, features, culture and color and also the product fun to attract the customer and clients.

Represent the culture We want to expose our country culture such as flora and fauna theme in our kite design. We chose this factor because Malaysian country is most harmony and colorful people and have a good flora and fauna in the country and the Malaysian country are the most visited bird in the world.

 PRODUCT DIFFERENTIATION:
The uniqueness of our product is: y y y y Design Raw Material Cultural Colorful/Fun

Design Our product is designed based on flora and fauna theme which it is more to fauna, Bridled Tern (Burung Camar Batu). This design is showing that we are focusing on the protected animals where Malaysia as one of the certified countries to protect that bird.

Our other product designs are based on flora theme such as Rafflesia, Hibiscus, and other fauna design is based on Cock (Ayam Jantan) and Caterpillar and many more. In addition, our design also depends on customer demands because we want to ensure that the customers would happy with the product.

Raw Material The raw materials that have been used to make our kite are basically based on the quality. We have Quality Control Department to ensure the quality of raw materials that would be used in making our product, although we have outsourced that product making.

Cultural Malaysia is one of the countries that very strict in protecting flora and fauna. By producing this product, at least we could show the Malaysias culture based on the design we create.

Colorful/Fun Our product is very colorful because weve used so many colors in producing our product. The main purpose of these colors is we wanted to show that our product is suitable for everyone, especially youth and it also shows our product is relating to happiness and joyful. This will make people (or customers) fun to play or use our product.

MARKETING STARTEGY
1. TARGET MARKET
Target Primary y y Teenagers Adult

Target Secondary y Tourist

Teenagers Our company is focusing on teenagers between 20 25 years old. The reason we focused on this kind of customer because we wanted to create awareness among them about this traditional game, where it has become one of the famous games nowadays. Teenagers today are more likely to play another game like Playstation, GameBox, and more. Because of too many new games offered in the market, they tend to forget about the Kite game. Adult In this target, it is divided into two categories: Kite Lovers and Common Adult. Basically, Kite Lovers will not hesitate to buy any new kite designs in the market because they like participating in any festivals or competition. Therefore, by producing our kites in the market, we could help them to create more designs, where they could place orders from us and it may help them easy to use it when it comes to festivals or competition. For Common Adult, it explains about the individual who loves to play kite as a hobby or even as their own collections. Mostly, people like them will just buy the kite when they wanted to play it during leisure times or even to collect them and keep them.

Tourists Our kite is not only for local people like teenagers and Adult, but it also for the tourists who came into this country. Most of the tourists are more likely to purchase something exotic and classic or even unique items when they travel to another country. This could make our kite as an item to be remembered by them, when they buy the product and bring it back to their own countries.

PURCHASING HABITS
1. Based on trends 2. Love to make a collection/ as a hobby 3. Love something unique 4. Buying for participation

Based on trends This tends to teenagers because nowadays, teenagers are more likely to follow any new trends in their own lifestyle such as fashion trends and many more. If we look our teenagers today, they love something adventurous things like cycling in the jungle and more. Therefore, playing kite can be seen as an adventurous game because it needs extra technical skills such as how to control the kite in proper way? and more.

Love to make a collection or as a hobby Most people, especially Adult are more likely to collect anything unique items and keep them as their own collections and also make it as a part of home decoration. To them, it gives a satisfaction when they buy what they like. In addition, they are not only buying for collection, but also buy it for a hobby, where they could play it during weekends.

Love something Unique This relates to Tourists because they love to travel a lot around the world. Besides, they love to buy something exotic or classis look-like. So, by looking at our product, it is unique because of what have we presented through our kites in terms of culture, designs and more.

Buying for participation This relates to Kite Lovers, who liked to participate in any festivals or competition like Kelantan Asian Kite Festival, Kite International Festival, Borneo International Kite and more. People like them all are not very concern about money because once they participated; it would give them satisfaction on it. Therefore, referring to our product, we could help them to create more new designs based on their own characteristics mentioned.

2. PRODUCT
Product Benefits:
y y y Durability/ Quality of product Safe to play Warranty

Durability/Quality of product Our product is a long-lasting product where it could stand for long period of time (depends on how the customers keep it). It is because our product is made from original raw materials like high quality of Bamboos, high quality of fabrics, colors and many more. In addition, it also is made in proper way, whereby the product is outsourced; therefore, we would make sure that the expertise would process the kites in properly way as to keep the quality of product is guaranteed.

Safe to play The customers will be provided with the directions/guidelines when once the kite is given to them. The reason we provide the directions or guidelines to them, is because we want to ensure the customers do not hurt by our product during the completing session. So, if the directions or guidelines are provided, it will help the customers to play in safely way. No danger will be occurred.

Warranty This benefit is provided because we do not use full return abilities for any product defects. But we do use repairing as our warranty to customers. If the customers have problems or their kite is defected, they can come into our outlet and get their repairing session. This warranty is going to valid after two weeks the kite is purchased. After the validation, any repairing session will not be entertained.

y PRODUCT COMPETITIVE ADVANTAGES

Our product competitive advantages are consisting of: 1. Design 2. Ordering process 3. Reasonable/Affordable Price 4. High Quality

Design We are not too focusing on our own designs, but we also focus on the customers designs. The customers can place their designs to us and we will do it as what customers ask from us. It is because the customers are very important to keep good relationships. In addition, the design also relate to size of the kite, where the kite is making not just based on design, but also the size.

Ordering Process Our company is very concern about ordering process (orders from customers). It is because we want customers to feel good with our services. Once customers placed their orders with us, we will make sure the order will be given to them on time from the date they wanted to. This is to avoid long waits to fill orders made by customers.

Reasonable or Affordable Price Basically, our product is offered with reasonable or affordable price. This makes customers enable to buy our kites with no hesitation. Otherwise, we also allow customers to do negotiation toward our product price. So, this could avoid any misunderstanding with customers when it comes to price deals.

High Quality We are too concern with the quality of our product. It is because we wanted to make this quality as strength to our company to attract more customers and become a loyal one. All raw materials to make our kites are based on the high quality, even though our company is using outsource expertise to make kites, but we always oversee that the product maker will use the quality materials as we asked to.

PRODUCT DIFFERENTIATION AND POSITIONING STRATEGY

To position our product in the customer targets, we have differentiated our product in their minds in terms of: y y y y Quality Image Branding Service

Quality Our product quality has become our primary differentiation and positioning strategy. The product offered to customers is made from the best raw materials like Bamboo sticks and so on. Our product eventually has been overseen by our Quality Department as to ensure the product is made following the customers needs, even though we outsourced the product making. Other than that, the quality has not only focus on the raw materials, but also focusing on the superior designs we offered to customers. By concerning our product quality, this can give some imagery towards customers about our product in the market as well as this can make our product being durable and reliable in the market.

Image Image of our company also can be used to position our product in the market, especially to customers. The main image that we bring to customers minds is the culture. Our product is designed based on the culture that we projected, where most of the product is designed based on our own Flora and Fauna. This can differentiate our product from other competitors in the market.

Branding Basically, our product has its own brand name, which is Mariposa. Part of the Mariposa, there will be a logo as showing our company and also the brand we bring, in fact, in the name of Mariposa, there is another name for each product like our main kite, Sterna. This brand name can be used to communicate to customers, where every time they look at our logo, automatically, they will know that logo is ours and they know what kind of products we sell.

Service This strategy is commonly can be used to position our product in the customers mindset. In addition, our customers can demand their own designs, instead of our designs offered, to create for themselves. This can show that our product is differentiated from other competitors products. To maintain our quality service, we have used well-trained person to deal with customers. Furthermore, our customers are not only could design for themselves, but they would be given a repairing service if once their kite is broken or dysfunctional within 2 weeks from the date they bought the kite.

3. PRICING

Objectives:
y y y Penetration pricing Pricing for stability Competitive pricing

Penetration pricing As mentioned, our product price is reasonable and affordable to be offered to customers. That means, we are not setting our price at higher level, but it is can be said as lower because of reasonability and affordability to be purchased. However, we still maintain the product quality as to attract customers loyalty in using our product.

Pricing for stability In giving the best price to customers, our company also considers the economic condition when setting price. This occurs when the economic condition is not so well in terms of recession, inflation and so on. Therefore, when economic problem happens, we will change the price based on that circumstances like perhaps we will incur price into 1% to customers.

Competitive pricing This objective is to compare our product price with the competitors price. This pricing will be used when its difficult to our company to attract customers from the competitors.

SETTING FOR PRICING:

Cost:

Fixed cost: Particular Building (rent) Transportation installment Payment RM1000 per month RM500/month Total RM1000 RM500

Total fixed cost: RM1500

Variable cost: Particular Mileage Electricity Wages (outsourced) RM300 RM300 RM60/kite Payment RM300 RM300 RM60 Total

Total variable cost: RM660

Total cost: Fixed cost + variable cost

= RM1500 + RM660 = RM 2160

y y y

Selling price Fixed cost Variable cost

= RM60/kite = RM1500 = RM660

BEP in Unit = FC VC / SP = RM1500 RM 660 / RM 60 = RM840 / RM 60 = 14 units

BEP in Sales = 14 units * RM 60 = RM 840

Break even point P VC = RM 660

PROFIT BEP
840

FC = RM 1500

LOSS

Q
14 Units

y y

Mark up = 20% from 100%, so, the total mark up = 120% Mark up * Selling price = 120% * RM 60 = RM 72.00/kite

 In conclusion, the price of our kite (per kite) is selling at RM 72.00

4. PROMOTION

Objective:
I. Create awareness The purpose of our promotion is to create awareness. We want to expose our product to our focused customers about what we are offering.

II.

Aiding comprehensive Promotion also can aiding comprehensive about our products. We are giving full information all about our product and what skill and technique are required on how to play a Kite.

III.

Encouraging ordering Promotion is carrying out to attract customer. So promotions should be conducted in interesting way. We have create an attractive website, paid for well known and interesting radio station, hired a good sales representative during trade shows and other promotion tools that can attract customers. By doing so, it can encourage the ordering of the Kite.

Strategies:
We are using several methods in promotion in order to promote our product to the current and potential customers. We are using low budget methods in our promotion strategy. There were:

 Internet All promotion that we offered will be published in our website

www.mariposa.com.my. Website is one of the cheapest tools and has a high rate of consumers. We have created an interesting and attractive website and easy for customers to follow the direction provided. We will represent information such as when we offer price discount, information of a new design and features of the Kite, Kite available in a certain retailers, and many more regarding our products and services offered.

 Advertising We also advertise our product and service offering in the radio because it also required low budget but effective tools. We have chose Pahang FM to advertise our Kite because most of our target market are listening to this radio station. For example when we are intend to make a event such as trade show in a particular area or place, we will advertise it in Pahang FM so that our current and potential customers will be aware of that event.

 Magazine We will in print our promotion offering in a budgeted magazine (Libur) in which most of our customers are the reader of this magazine. We will publish in the magazine 2 times a year. We will attach our Kite and company picture in the magazine and stated contact number and the address whereas the Kite is available with a reasonable price. This can attract customers to come and visit our outlet or in our selected retailer.

 Trade show We conduct trade shows during Kite festivals such as Kite international festival in Pasir Gudang, Johor and Kelantan Asian Kite Festival 1 time annually. Every trade show that are conducted we spent RM2, 000. We send our sales representatives that are fully trained to entertain our customer and have product know-how about the Kite. So that all inquiries and problem about the product our representatives can solve effectively and efficiently.

 Voucher We will give a voucher RM50 discount for those who make a purchase for RM250 and above during certain period time of promotion. By doing so, when customers come again to make a purchase, they can redeem the voucher.

5. PLACE/DISTRIBUTION
The channel and intermediaries is important to the organization to set up the link with another company or outsource company that we collaborate to produce the kite and sell the kite into the market area. The channel and intermediaries that our company focused are:

1. Outlet This outlet is located in Pahang at Bandar Kuantan near the East Cost shopping complex. We choose the Bandar Kuantan because it is a strategic place and also call as Putra square in the Kuantan. Our outlet in the building Mat Kilau that focus on the Malay culture.

2. Retailer We have few retailers as our link to sell the kite and have a good relationship with the retailer to get the loyalty in the business and market to beat other competitors in the kite business. Those retailers that have been linked with us are Pusat Kraftangan Malaysia, Kompleks Layang-Layang Pasir Gudang Johor in helping us to sell our kites.

The reason we chose the Pusat Kraftangan Malaysia because this is a good opportunity to attract more customers, especially tourists to easily buy our kites, in fact it has been located at the strategic place that is in Ampang, Kuala Lumpur.

Meanwhile, The Kompleks Layang-Layang Pasir Gudang has been chosen because of its name, where this place has been contributed in many kite festivals such as International

Festival in Pasir Gudang. Therefore, both of these places would help our company to sell more our kites and also helping us to achieve the sales target.

3. Agent We have the agent to sell our kites as a middleman between our company and the customer. Basically, we only focus our agent in Bintulu, Sarawak because the location is far away from our HQ. The agent is only consisting of one person because in Bintulu, there was only one kite provider that sells the kite to people in Sarawak, thereby; we use one agent to be our middleman to help us in selling our kite at that providers shop in Bintulu, Sarawak.

MARKETING IMPLEMENTATION
Tactical Marketing Activities:

SPECIFIC TACTICAL ACTIVITIES PRODUCT

PERSON RESPONSIBLE

DATE

KAMARUL ARIFFIN -hes responsible to conduct designs of kite to be outsourced

1 OCTOBER 2008

PRICING

NUR KAMARUL HAFIZ -hes responsible to calculate the cost to set the price to be offered to customers

3 OCTOBER 2008

PROMOTION

FARA DIANA ADNAN - She ensures that the promotion will be run smoothly and on time.

6 OCTOBER 2008

PLACE/DISTRIBUTION

WAN HASMA HAZWANI and JANE GIN SAH JUAN -reasonable to find out the best place and suitable to allocate the kites.

4 OCTOBER 2008

For the product will conduct by our co-founder: Kamarul as a person who will make sure that our product availabe in the market and also he will conduct for designs kites based on the customer needs. The starting dates for the product in 1st October 2008 and it will always continue forever. He also will conduct testing process after the kite is become finished product before sell it to customers. Otherwise, he certainly will ensure the quality of the product

The price of kites conduct by our Managing Director Nur Kamarul Hafiz as a person who will decide and calculate the costs before set the reasonable price to be offered to customers, in fact, he will ensure the BEP is achieved the target as to increase the profit margin of our product.

The promotion of our product is conducted by Miss Fara Diana Adnan. She is responsible to make sure that our promotion will be run smoothly and on time. The promotion will do in the electronic media on the radio which is Pahang fm and also the Libur Magazine as our mass media.

For the distribution/place will be conducted by Wan Hasma Hazwani and Jane Gin Sah Juan. They will choose the strategic and suitable places to deal out the kites in the market.

PLANNING ASSUMPTION

 Economic For the next 5 years, we are assuming that economic condition will be stable and the economic crisis will be diminishing. We prospect at that time we going to have our own manufacturing and building to make our own Kite. We will hired expert workers in order to making a Kite rather than outsource from outsider.

We also might expand our business in the country that provides low costs in terms of raw material such as China, Indonesia and Myanmar. Thus, the number of employees also will be increased.

If there is recession in the future, we will sell our old stock with a lower price so that the Kite player still can buy a Kite with a lower price.

 Politic We will form strategic partnership with the well-established Kite Company in other country such as Rainbow Kite Company in US in which to gain competitive advantage in term of market share.

 Technology Our business will be operate more effective and efficiently and it can give advantages to our business in term of revenue because technology that we might using in the future is more sophisticated that can produce high productivity with high quality of Kites.

EVALUATION AND CONTROL

As to make sure the implementation goes as planned, it is important to concentrate on the flow of our promotion. We planned to Hire outsource expertise to design new product features. We also plan to conduct on sales promotion. We will use the bonus pack, contest, and more.

Besides that, we try to use public relation method in order to create relationship with our existing outsource expertise, and customers. It is because we try to create a long-lasting relationship and we try to keep on with this from time to time.

Otherwise, if our product is not well-promoted, we will collaborate with well-known companies within that country to increase our market share. Because of we are new in this market; we will ensure the promotion is not behind as to attract more customers for the company.

Then, we will attract more investors as back up to invest in our business in term of open shares into the market. It may help us if our company does not willing to pay the balance of payment to the bank or may be if our company does not running well.

REFERENCE

Text book: Donald R.lehmann and russsell s. winer, 4th edition, Product Management

www.Wikipedia.com DEQRI company First Southern Region Gathering and Photo Shooting Event Rainbow Kites, Inc

APPENDICES