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WBB10202 Innovation Management

Project Title: Flytrap

Name (Student ID):
1 Mohamad Hanif B Nayan (50207211542)
2 Mohammad Ariffil B Abdul Rahim (50207211500)
3 Mohd Azmiza B Ahmad (50207211549)
4 Jonathan Paran Lia (50207110328)


Prepared for: Madam Salwah binti Che Mat
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Declaration




We hereby declare that this is all our own work with references herein stated wherever possible.

__________________________________________________________________(sign here)
Name: Mohamad Hanif B Nayan

__________________________________________________________________(sign here)
Name: Mohammad Ariffil B Abdul Rahim

__________________________________________________________________(sign here)
Name: Mohd Azmiza B Ahmad

__________________________________________________________________(sign here)
Name: Jonathan Paran Lia
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Acknowledgement

First of all, We would like to express our unlimited gratitude to our family who has constantly
been supportive throughout the project development. They have been the ones gave us
strength working on this project until its completion. We are very grateful having them in my life.
We would like to express my sincere appreciation to my lecturer, Madam Salwah Binti Che Mat
for her support, advices and guidance in finishing this project which is titled Flytrap. This project
report was prepared for WBB10202 Innovation Management. This report is based on the
methods given by the university guidelines.

The project Flytrap would not have been realized without the guidance of the many. We would
like to use this opportunity to express our gratitude toward these people namely:

Madam Salwah Bt Che Mat
Mohamad Hanif B Nayan
Mohammad Ariffil B Abdul Rahim
Mohd Azmiza B Ahmad
Jonathan Paran Lia

Lastly, deepest thanks and appreciation to others for their cooperation, encouragement,
constructive suggestion and full of support for the report completion, from the beginning till the
end. Also thanks to all of our friends and everyone, that have been contributed by supporting
our work and help us during the project progress till it is fully complete
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Executive Summary


This marketing plan is to educate the potential clients about the production involved and
the best possible way to market this product. First of all, we would cover the introductory part of
our product. This product is based on the known issue and the function of the use of the product
will resolve this matter. We cannot simply design based only on the customer needs, but also
the functionality that will benefits to the user. We also include the sample drawing with stated
dimension and also the parts. The cost of the product based on the total operational cost over
total number of output that we want to produce. The content of this plan describe about situation
analysis which shows the market analysis based on description and attributes, needs, trends,
and growth. Then we do SWOT analysis which is describe about the strength, weaknesses,
opportunities and threat of the product that happen when we do the product. Besides, we also
compare our product with our competitors whom are Bonding Technology Resources and
Esona Technology. By using broad macro environmental trends may affect our successful of the
product which consider the economic, population changes and also technological factor.
For the marketing strategy, we focus on our mission to design and innovate an ordinary
trap. So, we are making this new brand innovation to help on this issue. The business we are
involved is making the cleanliness of product usage.
We are specific on the objective of our marketing baseline on buyer that need to our
product. From our survey we are targeting on residents near garbage dumb and restaurant that
are always having a problem with flies. This is the common problem and it suited for us to sell
this item to this niche market. We have done market research so that we can determine more
potential target area and potential target market.
. Unlike any other product, theirs are not user-friendly. The marketing strategies contains
product or service mix, reasonable price, sales promotion, distribution and also marketing
research before/after or even when doing the sales.
Last but not least, the financial plan shows the break-even analysis of the product, Sales
forecast for yearly cost and also the expense forecast which inclusive of salary, promotion
expenses, and market research. For this reason, this item will be an easy sell in optimal amount
for profit making.

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Introduction

Fly traps are an ancient solution to the fly problem. Surprisingly not used as much today. You
have a fly problem and the usual response is to grab a can of poison. The main problem with
poisons are that they kill not only the bugs you want dead, they also kill the ones you might like
to keep alive, not to mention the idea of yourself or loved ones coming into contact with them.
Over the thousands of years Humankind has dealt with garbage and other wastes, they have
had to deal with the flies. Though flies are dirty and carriers of disease, the world would be
buried in crap and carcasses if it weren't for their intervention. However, they carry disease and
are really dirty, so control is an issue.
This trap is pleasant enough to keep in the house and works much better, is more efficient, than
any of the other methods commonly used. Before we can defeat flies, we must understand it
habits. Besides being attracted to feces, garbage, and unwashed individuals, flies are just plain
too fast to catch. So to defeat it we must study about it. They fly straight up and they go towards
the light.












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Situation Analysis

The product and its attributes, needs, trends, and growth are shown and forecasted in
this section. SWOT analysis previews the strength, weaknesses, opportunities and threat
possibilities of the product in near future.
Included are the detailed comparison of our product with our competitors whom are
Esona Technology and others. A broad Macro Environmental trends study the impact of our
product that consider the economic, population changes and also technological factor.
a) Market Summary
Our target market are residents and restaurants which are based in the Klang Valley with high
population. The residents in Klang Valley area with more than 6 million people, and is the center
of trade and industry in Malaysia., this is the most viable target market and it is the most suitable
for market penetration.

i. Market Target
Diagram 1: Geographical Map of Klang Valley


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ii. Market Needs
Quality products
Efficiency
Cleanliness
Friendly user
iii. Market Trends
Recycle

iv. Market Growth
Market is always growing but now and then, the product lineup need to refresh over
time.
Market size can grow beyond borders with internet sales thus providing a secondary
market target that can be manipulated by marketing more fiercely
:










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b) SWOT Analysis

SWOT analysis is a strategic planning method used to evaluate the Strengths, Weaknesses,
Opportunities, and Threats involved in a project or in a business venture. This would allow
achievable goals or objectives to be set for the organization.


Strengths
Trap sticker can be replaced
Easy to use
Eco-friendly

Weaknesses
Large
High prices at first time
Opportunities
Our advanced technologies are available to make human works easier.
Available to expand our product to the market since others company not takes
seriously about their marketing with the same product.

Threats
Others company may attract customer with the same product in the future.
We are exposed to rises in the cost of the technological and equipments that we
used for the product.
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c) Channels of Distribution








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III. Marketing Strategy

a) Mission Statement

Our mission
To penetrate local market extensively throughout Klang Valley
To gain the high margin for the product
Our Vision
Export our product to Southeast Asia region
Expand our coverage to cover the whole Asia continent

b) Marketing Objectives

We are dedicated to our marketing objectives based on a buyer required for our products. From
our study, the objective that we aim is:

The residents and restaurant owners that always have their own problems with the flies

To make user easier to use on this item and also prevent the user be fed up with the
flies. The difference of our products with other vendors we use it, as a portable trap
rather than traditional trap and it is easier because it can be replaced

Our products will offer an introductory price for about 70% of the actual price for limited
period. It will give any of our target market affordability to buy. It will make a product to
sell larger amounts target markets satisfied with our products.

For the target, we aim at the Klang Valley area. We chose this because we are doing a
survey of the area with positive feedback. We will do some market research so that we
will determine a potential target areas and target potential markets.

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c) Financial Objectives
We wish to accomplish the highest profit margin without compromising the low price we
aimed to sell because we want to achieve higher market penetration.
We targeted to have the company listed on MESDAQ within 10 years of
operation
Allocation of 50% for Company Operation and Expansion while 30% for
Research and Development and the rest will be kept as company assets.
Have price revision done on monthly basis to better adjust to the
contemporary market situation



10%
40%
50%
Price (Market Control)
Expensive
Medium
Cheap
50%
30%
20%
Profit Allocation
Operation and
Expansion
Research and
Development
Assets Expediture
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Financials
Presented here are the break-even analysis, sales forecast and expense forecast for the next
financial year after production, this acts as guidelines to measure sales and profits for finance
department approval.

Break-even analysis
a) Variable cost
Approximately RM 4.50
Box: RM0.30
Glue:RM0.10
Wrapper:RM1.00
Perfume:RM0.60
Labor cost: RM 1.50 per item

b) Fixed cost
Rental = RM 200.00
Labor cost = RM 500.00
Utility bill = RM 100.00
Others = RM 50.00

Sales = Total cost + Profit -----------> (1)
Where, Total cost = Fixed cost + Variable cost -----------> (2)

At breakeven, Profit = RM5.50, with unknown Quantity sold, Q.

Sales = Fixed cost +Variable cost + 0 --------> (3)

Variable cost to produce Q product = RM4.50*Q

Sales of Q product= RM10*Q

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Using (3), put in value of Variable cost and Fixed cost

10Q = 4.50Q+850
850 =5.5Q
Q =850/5.5
Q =155

Breakeven occur when, our company can sell 155 items.



Sales Forecast

Final Year 2012 Final Year 2013 Final Year 2014
Unit Sales (Units)
Flytrap

3, 000 5,000 9,000
Unit Price (RM) RM 10 RM 10 RM 10
Flytrap

RM30, 000 RM50, 000 RM90, 000
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