Sales & Marketing Management

1. Sales & Marketing Management
Prepare & Presented
By
Pyi Kyaw Lynn
8th Dec 2019
1

2. Market Analysis
 Research :
Product or service?
Data sources: please refer to slide # 14
 Analysis: Growing or shrinking, mature market?
 Conclusion Determine offering !
Draw marketing plan !
2

3. Marketing Questionnaire
 Close-ended questions: Yes/No (or) Multiple choice.
e.g. How satisfied are you with your current toothpaste?
 Very satisfied
 Somewhat satisfied
 Unsatisfied
 Open-ended questions (interview): What, How, Where, When,
Why, Who.
e.g. What is your age? What brand do you use?
 To be prepared by 2 to 3 key persons from different
department within the company. Ref: text book page-18
 Areas applied: Services, Retail & Wholesale, Distribution,
Manufacturing, New product development, Sales, etc.
 Please refer to slides # 9 & 10.
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4. Types of Markets
Growing markets: How fast? Market growth rate?
Size of market: 2009: $1,000 2010: $1,200 2011: $1,400
Annual market growth rate : 20%
E.g. insurance industry, logistic industry, etc.
Shrinking markets: How fast? Market decline
rate?
E.g. film industry, real-estate industry, etc.
Increasingly specialized markets:
E.g. Pharmacies, Stationeries, Toy-shops, bookstore,
stock markets, insurance markets.
4

5. Case Study [Coffee talk]
5

6. Marketing Questionnaire (sample)
Sr. Name Township Current
product
Reason Plan to Change to new brand
Yes No Reason
1 Mr.A Hlaing Season Aroma √ Ok
2 Mr.B Mayangone J-Donut Taste √ Change in price
3 Ms.C Kamayut Shwe Pa Lin Price √ Ok
4 Mr.D Insein Café Amazon Price √ Change in taste
5 Mr.E Ahlone Ice coffee Taste √ Try new brand
6 Ms.F Insein Shwe Pa Zun Aroma √ Ok
7 Mr.G Kamayut Season Aroma √ Try new brand
8 Mr.H Ahlone Shwe Pa Lin Taste √ Try new brand
9 Mr.I Hlaing Season Aroma √ Change in price
10 Ms.J Insein J-Donut Taste √ Ok
6

7. Cont’d
Sr. Name
Coffee Talk
Know Don’t
know
Tried Not
yet
Like Dislike Reason
1 Mr.A √ √ √ High price, Aroma
2 Mr.B √ √ √ Taste, Fair price
3 Ms.C √ √ Favorite: S Pa Lin
4 Mr.D √ √ √ Friend’s comments
5 Mr.E √ √ √ Taste, High price
6 Ms.F √ √ Favorite: Rich
7 Mr.G √ √ May be later
8 Mr.H √ √ May be later
9 Mr.I √ √ √ High price
10 Ms.J √ √ May be later
7

8. Market Sizes (sample)
Total addressable market
 Population in Yangon:
5,000,000
Serviceable market
 Coffee consumers in
Yangon:1,000,000
Target market
 Coffee consumers in
supermarkets: 100,000
90%
9% 1%
Total addressable market
Serviceable market
Target markt
8

9. Market size & share [sample]
 Where are we
now?
 Which brand is
market leader?
 Where do we
want to go?
 Still room to
expand in the
market?
Year Market Size
2020 1000
Coffee Shops Market
in Supermarkets
Bread talk
7% Café Amazon
7%
Season
20%
Shwe Pa Lin
17%
Shwe Pu Zun
9%
J-Donuts
23%
Coffee Talk
5% Others
12%
9

10. Market Size Calculation
 Penetration rate (%) : no of target people assumed to
consume coffee in supermarkets/ no of people consume
coffee in Yangon
 Calculation:100,000/1,000,000=0.01(10%)
 Market volume: no of target market x penetration rate:
100,000 x 0.01 = 1,000
 Market value: market volume x average value of coffee =
1,000 x 500 $ = 500,000 $ (total sales)
10

11. Market leader
 Penetration rate of coffee talk (%) : no of target people
assumed to consume coffee talk in supermarkets/ no of
people consume coffee in supermarkets
 Calculation: 25,000/100,000 = 0.05 (5%)
 Market leader: Highest penetration rate
 Rule of thumb: If market leader reach 80% of market
penetration rate expand into other areas. E.g. J-Donuts
could expand into other cities. (e.g. Mandalay, NPT)
11

12. Issue to consider?
 Suppose, the size of the market reaches maturity in Ygn,
and other competitors start expanding to other cities e.g.
Mdy & NPT, creating bigger market pie/share.
(Change in market size)
 In this situation, Coffee talk couldn’t expand to other cities,
only maintaining its penetration rate at 5% in Ygn only.
What could happen?
 Coffee talk could maintain its customer in Yan
(no changes in penetration rate basically), but gradually
losing it market share in other cities in the long run.
8th Dec 2019 12

13. Data source (raw data)
Primary source: field research ( in-depth phone calls, on-site visits,
telephone interviews & surveys (face-to face, online, postal ), emails,
web questionnaires, etc.
 Pros: real world & more accurate , specific & proximity to the market (target
audience)
 Cons: time consuming & costly
Secondary source: desk research (existing data through web sites),
CSO (central statistical organization), industry reports & publications,
trade associations (UMFCCI), company websites, distributors, sales volume of raw
materials suppliers, etc.
 Pros: time saving & cost effective
 Cons: not specific to organization’s requirement, less accurate.
Research firms: MMRD
One hack: To call anonymously around to all of your local competitors & how much
volume they are doing. (not recommended)
13

14. Coffee talk [marketing plan] [sample]
 Executive summary
 Vision & mission
 Core value
 Profile
 Vision, Mission & Goals
 Objectives, Strategies & Tactics
 Customer profile ( sizes,
segments)
 Competitors
 Stakeholders ( distributors,
suppliers, financers)
 SWOT
 Target Segment
 Positioning
 Product/Services
 Price
 Place
 Promotion
 People
 Physical Evidence
 Process [ SOP]
 CSR
 Internal Control
[ Milestones & KPI ]
 Budgeting & Forecasting
 CSFs 14

15.  1 year plan
 Planned to open in Super Markets (Yankin, Kamayut,
Mayangon townships).
 Prioritized to be tasty, hygienic & consistent customer
service
 Market offering: Coffee talk, Americano, Espresso, Latte,
iced coffee, cakes, etc.
 Online order available (Tee, Food2u delivery services)
Executive Summary
15

16. Cont’d
 Coffee brewing methods, baking ,hygiene awareness &
customer service trainings will be provided for employees
quarterly.
 Customers complaints will be cared & handled effectively &
rapidly.
 Opening hours: 7:00 Am – 10 Pm & offer free Wi -Fi
 Recruitment: well experienced within industry & brewing
trainees
 Marketing budget: Approximately 10% of total revenue
8th Dec 2019 16

17. Vision, Mission & Goals
Vision
 To get awareness & loyalty for locally brewed coffee rather
than imported ready made brands
 To be launched coffee shops in all supermarkets across all
regions in the long run.
Mission
 To deliver tasty & hygienic locally brewed coffee at
reasonable price to customers.
 To procure locally produced raw materials for brewing coffee
and baking cakes.
Goals
 To target teenagers and take away as primary customers.
17

18. Objective
 Penetrate and focus the market in the selected
supermarkets by townships.
Marketing strategy
 Enter the market through specialized location
(supermarkets).
 Since the coffee shop is new and unheard among the
target customers, it is best suited that the brand enter
the market through supermarket routes.
Objective, Strategy & Tactics
18

19. Cont’d
Sales strategy
 Apart from regular customers, work-from-home groups &
near by companies, catering service and training centers will
be approached as prospects.
 Apart from regular coffee, creative drinks will be
introduced to increase sales.
Tactics [action plan]
 Negotiate with delivery agents for delivery service.
 Start training for staff.
8th Dec 2019 19

20. Customers, Competitors & Stakeholders
Customers
 Students
 Company employees
 Shoppers
 Supermarket workers
Competitors
 Bread talk
 Seasons
 J- Donuts
 Café Amazon
Stakeholders: Coffee beans suppliers, Wheat flour
suppliers, delivery agents, training centers, financers,
supermarket properties agents.
20

21. Strengths
Low to medium start up costs
Fresh & Tasty
Hygienic atmosphere
Variety of drinks
Door 2 Door service
Weaknesses
New entrant/startup
Uncertainty & less consumer
confidence for new setup
If fresh raw materials are not
easily available
Weak initial cash flow
Opportunities
Fast growing market
Offer Franchise
opportunity
Co-branding or alliance
with other brands
Threats
High competition
Highly dependent on
external suppliers
Rise in rental fees & raw
materials
Ready made products
SWOT
21

22. Target segments:
 Age (10-50)
 Gender (male, female)
 Income level: 200,000 &
above
Positioning:
 To be in the top 3 coffee
shops in terms of coffee
taste, flavor, freshness and
hygiene.
Brand essence:
 Unique Taste,
Flavor & Aroma
Brand identity:
 Consistency in taste &
customer service
 Reasonable price
Segment, Position, Essence, Identity
22

23. Marketing mix
Product line:
 Varieties of coffee : Coffee talk, Americano, Espresso,
Latte, etc. (1st priority)
 Cakes & Pastries (2nd priority)
Price
 High-low strategy: Offer products at a bit higher
prices but provide discount on key items to ensure
the price is lower.
 Promotional price for students & company
employees
 Price range: (500 ~ 5000)
23

24. Pricing strategies for startups
 Dynamic pricing: Change in price based on demand & supply
principles. E.g. air line industries.
 Skimming pricing: Aimed at start capturing high-end
customers and lowering the price as business cover the initial
investment costs. Based on perceived value (taste, service,
image) to the customers .
 High-low pricing: Offering products at a bit higher price but
providing discounts on key items to ensure the price is lower.
 Penetration pricing: Applied to capture rapidly market share
and defeat competition .Heavy early birds discounts to build
up the trust of customers base & long term profit oriented.
8th Dec 2019 24

25. Cont’d
 Predatory pricing: Aggressive pricing strategy aims to drive
out (monopolize) competitors by stealing market share,
creating price wars & illegal in some countries. Dumping –
exporting goods at a lower price than at home country.
Barriers to new entrants. High risk: al lot of cash requirement
to operate- and can cause complete business failure.
e.g., Uber taxi
 Psychological pricing: Practice of setting prices slightly lower
than rounded numbers, altering customer’s perception as
lower prices as they really are. Increasing sales without
significantly reducing prices. E.g. setting the price at $ 199
rather than $200. BOGOF: But one, get one free.
8th Dec 2019 25

26. Uber case
https://www.forbes.com/sites/briansolomon/20
16/11/02/uber-sued-flywheel-predatory-
pricing-by-san-francisco-taxi-
antitrust/#3fe894c54fca
26

27. Cont’d
Place
 Located in supermarkets
 Door2Door service for online and phone ordering
Promotion
 Promote the products via well-known coffee review bloggers
for online reputation
 5% discount for students & employees
 Free cookies for more than 5000
 Promote via Instagram, LinkedIn, Facebook ad campaigns, etc.
27

28. Cont’d
People
 Brewing , customer service, hygiene trainings
 Personal grooming to staffs (quarterly)
Process (SOP)
 Sell service
 Deliver orders within 7 minutes
 Consistent standard of customer service
Physical evidence
 Spatial & comfortable layout,
 Attractive design & decoration (e.g. good color combination
for the walls, wallpapers)
 Creative packaging
 Artifacts, furnishing , lovely music, etc. 28

29. 29
Financial KPIs
 30% sales increase within 3 months
 50% sales increase within 6 year
 100% sales increase within 1 year
Operation KPIs
Clean & hygienic atmosphere during opening hours
Focus on pests control
Utilize clean & sanitized utensils, equipment & work
surface, counters, etc.
Compliant with food safety laws & regulations
Management Control & KPIs

30. Cont’d
Customer service KPIs
 Customers' satisfaction
 Focus customers’ review on the page
 Rapid response to customers’ complaints (low response
time)
HR/Innovation KPIs
Assign 2 shifts (day & evening) to staffs
Varieties of training to staff
Yearly bonus based on customer service & performance
8th Dec 2019 30

31. CSR
 Donations to monasteries, charitable organizations,
foundations, etc.
 Provide brewing & baking trainings to disable
persons & single mothers (FOC) from time to time.
31

32. Marketing Budget (sample)
Categories Description
Promotion
Item
Price Qty Estimat
e Cost
1st
Quarter 2nd
Quarter 3rd
Quarter 4th
Quarter
Remark
Jan Feb
March
April May June July Augus
t
Sep Oct Nov Dec
Advertising
FM Cherry
150 6 800.00 40 30 40 30 20 20 10
TVC Fortune TV
400 3
1,200.0
0
150 100 150
Social
Media
Facebook
Facebook
Page 10 12 48.00 4 4 4 4 4 4 4 4 4 4 4 4
Post Boost
10 10 40.00 4 4 4 4 4 4 4 4 4 4
Promotion Coffee shop
Free
cookies 2 12 160.00 2 2 2 2 2 2 2 2 2 2 2 2
POS Vinyl Vinyl
100 10
1,000.0
0
10 10 10 10 10 10 10 10 10 10 10 10
** Approximately 10% of total revenue
32

33. Marketing Budget Summary(sample)
0%
5%
10%
15%
20%
25%
30%
35%
40%
Advertising Promotion Social Media POS
33

34. Past sales history & sales forecast(sample)
Month
2019 Sales
(Season)
2019 Sales
(Shwe Pa Lin)
2019 Sales
(J-Donuts)
2020 Sales
forecasts
(Coffee talk)
January 350 440 250 130
February 400 420 340 150
March 350 420 280 178
April 350 400 320 214
May 380 415 290 210
June 320 380 300 180
July 350 390 280 230
August 320 420 310 212
September 350 400 280 250
October 330 370 320 220
November 360 400 280 260
December 390 430 320 290
** Sales data in quantity
34

35. Cont’d (sample)
0
50
100
150
200
250
300
350
400
450
500
2019 Sales (Season)
2019 Sales (Shwe Pa Lin)
2019 Sales (J-Donuts)
2020 Sales
Target
(Coffee talk)
35

36. Financial Projections (sample)
Description
1st QTR 2nd QTR 3rd QTR 4th QTR
Total
JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
Total Sales(Coffee) 100 110 90 100 110 80 130 112 100 100 160 100 1,292
Total Sales(Cakes ) 30 40 88 114 100 100 100 100 150 120 100 190 1,232
Total Sales(Kyats) 130 150 178 214 210 180 230 212 250 220 260 290 2,524
0
50
100
150
200
250
300
36

37. Critical Success Factors (CSFs)
 CSFs: Critical activities required for ensuring the success
of the business.
 Hiring & retaining excellent employees
 Align incentives & rewards for motivation of stuffs
 Strong supplier network (e.g. raw materials)
 Product differentiation: unique taste & best customer
service advantages (other can’t easily copy)
 Time to market: Quick delivery to online ordering &
invoicing
 Continuous product improvement.
8th Dec 2019 37

38. Appendix
Documents attached:
 ……………….
 ………………..
 ………………..
 ………………..
38

39. Questions?
Thank you !
39
8th Dec 2019

40. Profile
Pyi Kyaw Lynn
Education:
 B.A [English] Dagon University [ 2000-2003]
 MBA [Finance] Assumption University of Thailand
[2005-2007]
Experiences:
 Worked as executive, assistant manager, manager positions in various
departments including Business Development, Product Development,
Trading , Sales & Marketing Departments of local & foreign organizations.
[2000 – 2019]
40
8th Dec 2019