FACULTY OF APPLIED AND HUMAN SCIENCES

SMP10803 PRINCIPLES OF MANAGEMENT

SEMESTER 2, 2021/2022

GROUP ASSIGNMENT

OIL PALM

PREPARED FOR:

SIR. MUHAMAD AZAN YAAKOB

PREPARED BY: GROUP 9 - 22B

NAME MATRIC NUMBER

MOHAMAD FERDIANSYAH ARIFIN BIN OMER SA’AIB 211240304

SITI HAJAR BINTI ABDULLAH 211240438

SITI NURSYAWALIA AZIRA BINTI AZHAR 211240442

ATHIRAH SYAMIMI BT MOHD AZHAR 211240227

CHEONG MEI JUN 211240238

SUBMISSION DATE: 24 JUNE 2022

 TABLE OF CONTENT

1.0 INTRODUCTION 3–4

2.0 MARKETING MIX STRATEGIES

2.1 PRODUCT 5 – 12

2.2 PRICE 13 – 16

2.3 PLACE 17 – 22

2.4 PROMOTION 23 – 27

3.0 CONCLUSION 28

4.0 REFERENCES 29

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I.0 INTRODUCTION
Since its incorporation in 2018, Estar Limpia has continued to run. In this industry,
Estar Limpia is still a rookie. Our products are still relatively unknown on the global market.
Estar Limpia, which translates to "be clean" in Spanish, is the name of our company. The fact
that Estar Limpia makes organic body soap is another factor in its selection. After a bath,
soap will clean our bodies. Kulai, Johor, is the location of Estar Limpia. We selected this
region since Johor is home to some of Malaysia's largest oil palm plantations. About three out
of every ten acres of oil palm farms in Malaysia were in Johor. To create organic soap, our
company mostly uses palm oil. Saturated and unsaturated lipids, vitamin E, and beta-carotene
are all present in palm oil. Potential antioxidant effects exist.

We focus on meeting consumer needs and wants as part of our market orientation. We
focus on a certain demographic because it is acknowledged that different groups have
different requirements and desires. For instance, customers can select their preferred design
or flavour from the different shapes and flavours that our company produces. Additionally,
our business adds value for customers, upholds their contentment, and forges enduring
connections with them. Our business may boost sales and profit while keeping customers
pleased with our goods by meeting consumer needs and wants.

Next, since there aren't many companies in Malaysia using palm oil as their primary
ingredient, we decided to make organic soap instead. We initially introduced our product with
just one fragrance, an original one, but after hearing from customers, we also released a
variety of fragrances and shapes, including rose, lemon, and others. The most popular soap
among customers is lemon-scented.

With the money we make, we frequently fulfil our corporate social obligations to
demonstrate concern for society's well-being and to take into account the long-term best

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interests of the business and the relationship between the business and society. In addition to
putting a strong emphasis on financial success, our organisation also recognises its social
responsibilities. Economic, legal, ethical, and philanthropic considerations are the four pillars
of responsibility. In order to fulfil the other three responsibilities using the profit we generate,
we opt to fulfil the economic obligations first.

In essence, the majority of our customers buy our products because they have seen
our advertisements on fliers or in social media. Additionally, they purchase our goods as a
result of a friend's recommendation. Through the internet, people began to look for
information and reviews about our soap. After that, customers assess whether or not the
alternative to our solution satisfies their needs. After weighing their options, our consumer
selects the fragrance of soap they want to purchase. Last but not least, if they are happy with
the product they bought, they will provide positive reviews on our official website and social
media.

We manufacture products that match our customers' tastes and can satiate their needs
and wants, and this influences their purchasing decisions. Because we produce a variety of
fragrances, people of all ages adore the majority of our organic soap.

Other than that, we are going to explain about marketing mix strategies. The
marketing mix is the collection of tactical marketing instruments that may be controlled and
used by a business to elicit a specific response from its target market. It entails every action a
business can take to affect consumer demand for its goods. It is also a tool for planning and
carrying out marketing campaigns. This includes product, price,place and promotion.

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2.0 MARKETING MIX STRATEGIES

2.1 PRODUCT

The most fundamental element of marketing is often the product. To start things off,
what exactly is a product? A product is anything that can be offered to a market for attention,
acquisition, use or consumption that might satisfy a want or need. A product may also be
described as something that is supplied to the market and has qualities that can draw interest,
be owned, utilised, and have both psychological and physical advantages that can meet
customers' requirements while facilitating an exchange. To put it briefly, a product is
anything that an operator offers in the market and has a number of tangible qualities like
colour, weight, and price as well as intangible qualities like satisfaction, efficiency,
effectiveness, and solution that the user needs. Everything that the people receive in return is
a good mix of favourable and unfavourable products. Every product also costs money to
produce and has a cost associated with it.

The type of our company is a consumer product that is a product to satisfy an

individual’s needs or wants. Consumer products mean the products purchased by a consumer
to meet the personal needs of those around him or her. Consumer products can also be known
as finished goods. There are four categories of consumer goods which are classified
according to the way consumers buy the product and also the way the product is marketed in
the market. The four categories of consumer products include convenience products,
shopping products, speciality products, and unsecured products. Therefore, the products that
our company uses are classified as a convenience product. Convenience products are often
inexpensive, and marketers stock them in several areas so that customers may easily find
them when they need them. So, in order to ensure this product reaches the market, our
company needs to introduce the product and try to draw customers ’attention to the benefits
of our product.

Our company ensures that our products meet the needs and desires of consumers. This
is demonstrated by the fact that our business will produce products in accordance with
product and market segmentation decisions. Product items released from our company are
special versions of products that can be uniquely designed that have differences in terms of
shape, function, benefits, fragrance, and flavour. This is to show we will produce products

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according to the tastes of different consumers. Yet our company still uses one main ingredient
which is a natural ingredient in the content of our products. This is to show the consumers
that our products use natural organic ingredients and are free of chemicals.

Our company’s product line is a group that is closely related to our product items
because it has the same production function to be sold to consumers. Thus, our company
decided to produce unique bath soaps of various shapes. Considering bath soap satisfies
customer demands and wishes, Estar Limpia company has chosen to produce it on the
market. Our goal is to be a market leader so that we will make a difference with other
competitors to produce chemical-free products and have various benefits from our products.
Therefore, to manufacture chemical-free products and use natural ingredients. We use palm
oil as the main ingredient for the production of bath soaps produced by our company. We will
use high-quality palm oil. So, to ensure that the palm oil is of high quality, we will provide oil
palm plantations as we make oil palm the main ingredient used in our company. We will
indicate our product based on individual product decisions. We also will focus on decisions
about product attributes, branding, packaging, labelling, and product support services.

2.1.1 Product Attributes

Product attributes are the characteristics of a product that consumers pay

attention to and are used as a factor to motivate buyers to buy it. Decisions made on
products are based on the quality, features and design of the product.

● Product Quality

Product quality is described as a feature of a product that affects its capacity to

meet explicit or implicit customers’ demands. Product quality is one of the key
positioning strategies used by marketers. Our company always attaches importance to
the quality aspect of the product to produce bath soap compared to other bath soap
products. Estar Limpia Company tries to produce high-quality products because they
are free from chemicals and use high-quality natural organic materials (oil palm)
produced in our own company. The use of organic soap produced will be suitable for
all skin types including sensitive skin because the use of organic soap ensures better

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hygiene and prevents various diseases such as skin diseases. These benefits will entice
customers to faithfully use organic soaps produced by our company.

● Product Features

A product may come with a variety of features. Features help a company

differentiate its products from those of its competitors in the marketplace. Attractive
and unique product features are able to highlight the special features of the product
compared to the products of competitors. Our company creates higher-level models
by unique and adding more features. The product produced by the company Estar
Limpia is a bath soap that is a daily necessity of consumers. The soap is meant to be a
detergent mixture used for personal use by the consumer. The soap produced by our
company is in the form of lumps called book soap. Estar Limpia company’s book
soap products contain natural organic ingredients from our own company in various
forms according to consumer demographics. Our book soap products also have
different flavours and fragrances that suit the product theme, consumer tastes, or
appearance of the product.

● Product Style and Design

Product design that reflects the company's appropriate product style. Most
book soap manufacturers from other companies are square or round, but our company
not only produces square or round book soap but also available in the form of flowers,
bear figurines and others. The appearance of the book soap from our company will
attract the attention of consumers especially the flower-shaped soap who want to
attract attention among women. Our products will be available to all users including
children. So, we produced a teddy bear-shaped book soap to impress children. Our
company will try to improve the formation of book soap in various unique and
interesting forms.

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2.1.2 Branding

A brand is any combination of names, phrases, markings, symbols, and

product designs that seeks to set a manufacturer's product apart from that of its rivals
in the market. Additionally, branding is more than simply a product or a logo. It is a
"process" that involves using advertising campaigns with a recurring theme to give a
product a distinctive identity and picture in consumers' minds. Branding aims to
create identification, a significant and distinct presence in attractive markets and
retain loyal customers. Our company products’ name is “ORGANICO SOAP”. The
origin of this brand name is Spanish which means organic soap in English. We created
this brand name because our products use natural organic ingredients and got the idea
from the Spanish who gave it a unique name. The word tapioca also delivers a
message clearly that our product is made based on organic ingredients. This brand
name will help the consumer to identify our product and easily remember our
product’s brands.

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 This shows the brand logo of our product which has the brand name of
"ORGANICO SOAP", a drip symbol that shows the oil from palm oil that we use in
producing our products. We put a hand image in the brand logo of our products
because our products will be made from handmade products to improve the quality of
the products.

2.1.3 Packaging

A product's container or wrapper is designed and created as part of the

packaging process. Packaging is also defined as a tool or material used to wrap goods.
Packaging serves to protect the goods and display the product message. So, the design
and shape of packaging should not be arbitrary because it will affect the product
image or consumer assessment of the product. Packaging is an important element of a
product. Packaging can make our product more impressive, attractive and quality.

For our product packaging, our company use a paper box to protect our
product physically from damage, guarantee the quality of products, and facilitate the
work of delivery, storage and display of products. Our company use paper boxes
made of brown kraft paper to facilitate the design of our products. A beautiful design
to make the box stable and durable. Our company uses kraft paper to make our
product boxes because kraft paper is fine and clean. it also has no folds, wrinkles,
holes, sand etc. so as not to affect the quality of the folding plate. There are our
products that are fully packaged using boxes made of kraft paper and there are our
products that are packaged in boxes made of kraft and covered with clear PVC type
plastic to make our products unique in shape to attract customers.

At the same time, packaging can promote our product to the customers. Our
company use the ORGANICO SOAP logo on the packaging to make sure that the
customers can recognize our product easily. We use this packaging because we can
attract the customers, especially children to buy our product because we put the teddy
bear cartoon on the box of a teddy bear-shaped book soap. We also put the tagline on
the packaging for the customers to recognize our product easily by remembering our
tagline.

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2.1.4 Labelling

The portion of the package known as the labelling houses the information
printed on or included with the product. The manufacturer, distributor, place of
manufacture, contents, and safe handling instructions are just a few examples of
information that may be included on a product's label. Labels can be as simple as tags
on items or as complicated as package-mounted artwork. The product's packing,
therefore, serves a variety of purposes. The labels also enhance the product's
positioning and aid in its promotion.

Through labelling, the customer can identify the information about our
product soap. This labelling focus on a promotional theme to persuade our consumer
to purchase the product by making a personal connection with them. In addition, we
give the information about our Organico soap such as the ingredients that were used
to produce that soap, the address of the soap that was made and the barcode, how to
use it, the weight of the soap, as well as the benefits of the Organico soap. We put our
brand product logo which is a drip of palm oil to show the customer that we use 100%
of palm oil to produce the Organico soap. It may also attract customer attention.

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2.1.5 Product Support Services

Another component of product strategy is customer service. Typically, a

company's offer includes certain support services, which may make up a small or
significant portion of the overall offering. Customer service and warranty are both
examples of support services. Guarantees are meant to offer consumer protection and
crucial details about a product. A product's quality and effectiveness are confirmed by
the guarantee.

Estar Limpia company will guarantee the production of products will be free
from the use of chemicals in each of our products. Our company will use palm oil as
the main ingredient in the production of soap products. To ensure high-quality palm
oil, our company which owns oil palm plantations is responsible for the activities of
oil palm plantations and ensures that the company's oil palm is always of high quality.
Moreover, humans have different skin types such as normal skin, dry skin, sensitive
skin and others. Estar Limpia company tries to produce products that are suitable for
all skin types. Yet our soap products contain 100% palm oil. This is because palm oil
contains various ingredients, especially Vitamin E, which can wash, care for and treat
the skin.

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 Most of our company’s soap products have fragrances and dyes made from
flowers, berries, etc. to impress customers. However, products that have dyes and
fragrances are not suitable for sensitive skin. Therefore, the company produces 100%
natural soap products without dyes and fragrances for consumers with sensitive skin.
Our company will also add organic ingredients suitable for sensitive skin as well as
dry skin such as virgin coconut oil. Sensitive skin and dry skin need hypoallergenic
ingredients that can moisturize the skin of the user.

Our company is able to manufacture soap products that are suitable for all skin
types and has the benefit of being able to maintain customer support. Customers will
be loyal to using our company's products. This shows the guarantee of the company's
product advantages can increase customer loyalty, encourage customers to buy more
products, and get good and positive comments or opinions from customers.

2.1.6 Benefits of Product (ORGANICO SOAP)

● It is packed with nutrients that are great for your body, such as vitamins and
minerals. Antioxidants included in these vitamins shield your body from
illnesses and infections. Wholesale palm oil soap bars can save you money
and protect your skin.
● It works well as a moisturiser. Palm oil is a fantastic technique to hydrate,
moisturise, and protect dry skin. The oil keeps our skin hydrated by shielding
it from the dryness and temperature of the air around us.
● It works well for acne. The wholesale soap bars are effective against acne
because of some of the vitamins and other qualities they include. The soap
may cleanse the skin by removing oils and shielding pores from impurities and
illness.
● As an anti-ageing vitamin, it is also beneficial. Your skin is revitalized and
made more supple by palm oil soap. This minimises wrinkles and makes your
skin seem healthy and radiant.
● Our products are suitable for all skin types, have a variety of suitable
fragrances and come in a variety of attractive unique shapes.

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2.2 PRICE

Price is the amount of money charged for a product or service. It is the sum of all the
values that consumers give up in order to gain the benefits of having or using a product or
service. Marketers must consider supply costs, seasonal discounts, rival prices, and retail
markup in addition to connecting the price to the product's actual and perceived value.
Although the question "How much" can be reinterpreted as "How much does it cost?" Price
and cost are two different concepts. Product cost, as opposed to price, refers to the expenses
incurred by the company in producing it. When effectively asking how much you have to
give up to get something when asking about the price of a good or service. A complex set of
calculations, in-depth research, and the ability to take calculated risks all go into determining
the pricing of a good or service. Segmentation, ability to pay, market conditions, competitor
activity, trade margins, and input costs are just a few of the factors that go into developing a
pricing strategy. Typically, it competes with other businesses and is directed towards a
specific clientele. Prices have a huge impact on marketing effectiveness. There are a few
pricing strategies options that can be used in the business. All the types have their own
advantages and disadvantages for the product itself. The pricing strategy that the company
should use depends on the product.

Estar Limpia is a company that manufactures soap using natural ingredients such as
palm oil. Soap is a necessity product that everyone uses. Almost all soaps have more or less
these same ingredients in them. However, what differentiates the soap from Estar Limpia is
because of its natural hazards. This causes the cost of making the soap a little high because
the materials used are premium. Usually everyone must have had their own favorite soap.
Therefore, Estar Limpia comes up with something unique by preparing soaps that use natural
and handmade ingredients. To ensure that the new Estar Limpia soap products are sold well,
the pricing for the product must be emphasized. There are several factors that need to be
taken into account before setting the price of a product. Price strategies are very important to
Estar Limpia because the price will determine the amount of sales and profit per unit soap
sold by Estar Limpia. That is why businesses should set a good price that can attract
customers and provide the benefits of the product with a good level of profit to Estar Limpia.

2.2.1 Pricing Strategies And Tactics

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 The pricing strategy that Estar Limpia uses must be focused on achieving marketing
objectives and supports the position of Estar Limpia’s new products in the market.
Customers' needs can change rapidly, it’s so important to make sure Estar Limpia is always
on track to achieving the maximum profit possible in today's marketplace. Customers are an
important character to a successful company and making them the center of marketing will
make Estar Limpia products get more attention from consumers. Tactical marketing is
significant because it outlines the precise steps a business can take to achieve its marketing
objectives. Companies can take effective actions to help them accomplish their goals by
carefully outlining the methods that assist them reach broader objectives. There are five
pricing strategies that can be used by Estar Limpia: market skimming pricing, penetration
pricing, loss leader pricing, price point and discount pricing. Estar Limpia uses price point
pricing to determine the price of their products.

● Price Point Pricing

A price point is a single hypothetical point between many prices that might be
suggested for a good or service, some of which might generate better profits. Typically, it is
discovered by studying the relationship between the supply and demand curves. It aids the
business in figuring out potential profit margins for its goods or services. Although it's
frequently used interchangeably with price in daily life, producers or sellers who want to
determine the price of a good or service on the market should be able to tell the difference
between the two. According to economic theory, when the price of a product increases, then
the demand will decrease. For example, when the price of Estar Limpia is RM 20, the
quantity demanded is 150 but when the price reduced to RM 15, the quantity demanded
increased to 250. In order to profit from the entire supply, enterprises must think about
keeping expenses low rather than excessively high. Estar Limpia charges RM 20 for their
soap but other brand only sell their soap for RM 10. Estar Limpia know that their prices are
higher but Estar Limpia also knows the demand very well and after calculating the lowest
price that they can sell per soap to stay profitable is RM15.

2.2.2 Pricing Method

Analysis of target customers' expectations for price and what they consider to be good
quality forms then basis for wise pricing selections. Customers will spend their money on

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other items if the product or service is too pricey. Estar Limpia will experience losses and
won't be able to operate if the product is too low. Pricing methods include cost based pricing,
customer value based pricing and competition based pricing.

● Cost Based Pricing

Cost based pricing setting price based on the cost for producing, distributing, and
selling the product plus a fair rate of return for efforts and risk. The term "cost-based pricing"
refers to a pricing strategy in which the selling price of a product is calculated by adding a
specific proportion of the product's total production costs. Fixed costs are the costs that do
not vary with production or sales level such as rent, heat, interest or executive salary. For
example, Estar Limpia spends a certain amount of money each month to pay for the cost of
electricity, transportation and salaries of its employees. Variable costs are the costs that vary
with level of production such as packaging and raw materials. Estar Limpia uses a paper box
as their packaging to protect the product physically from damage and to guarantee the quality
of the product. Beside that, Estar Limpia uses good packaging to promote the product to the
customers because a good packaging will attract more attention from consumers. However,
this will cause the cost of soap to increase. The raw materials used by Estar Limpia are palm
oil, essential oils lemon, olive oil, glycerin and sodium hydroxide. But our main ingredient is
palm oil because we used 100% natural palm oil to make sure our products are suitable for all
skin types. Total cost is the sum of fixed and variable costs for any given level of production.
Cost based pricing can be divided into two types: cost plus pricing and markup pricing. Cost
plus pricing is a method of pricing in which a fixed percentage is added above the cost
required to produce one unit of product. The resulting number is the selling price of the
product. Estart Limpia decided to sell its soap at another 10% higher than the cost of the
ingredients needed to make it. The price of Estar Limpia soap is 110% of the cost of
producing it. Cost plus pricing makes sure that all expenses associated with producing the
goods or providing the service are paid for, enabling the markup to guarantee a healthy return
on investment.

● Customer Value Based Pricing

Is to understand how much value consumers place on the benefits they receive from
the product and setting a price that captures that value. Estar Limpia soap has its own

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advantages because of its ingredients in it. Estar Limpia soap are rich with nutrients that are
good for the body such as vitamins and minerals. The vitamins in the soap can shield a body
from infection. Beside that, this soap also can moisturise our skin and make our skin stay
hydrated all day. It is because palm oil is a good ingredient in it to moisturize, hydrate and
protect dry skin. The most important thing about this soap is that it works well on acne skin,
has an anti-aging vitamin and that makes this soap suitable for all. Value-based pricing uses
the buyers’ perceptions of value, not the sellers cost, as the key to pricing. Price is considered
before the marketing program is set. Customers will buy this soap because of its value and
benefits, not because of the cost. When the product can attract the customers with a lot of
positive feedback then the cost of this soap is not a big deal to the customers. Pricing that is
driven by customers and value, rather than by products and cost. Good value pricing offers
the right combination of quality and good service at a fair price.

● Competition Based Pricing

What is pricing dependent on competitors? Competitor-based pricing, as the name

suggests, is a pricing method in which a business determines the price for its products after
examining the competition. However, this tactic just considers the selling prices of the
competition' goods and does not account for start-up costs. For example, competition based
pricing is between Estar Limpia and Tanamera soap. Both brands have almost similar
packaging but Tanamera offers a cheaper price compared to Estar Limpia. The first step in
determining the greatest selling price for your good or service is to base your pricing on the
competition. You can base your pricing selections on a strong foundation provided by market
research. one that is quick to implement, simple to calculate, and generally low risk.

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2.3 PLACE

Place includes company events that allow the products available to target consumers.
The margin of the profits depends on how fast the business owner can turn over the goods.
An optimum location for the products will eventually bring more sales, and more likely in
raising the chances of satisfying the clients and improve brand loyalty. Johor’s own state
programmes, huge property development projects carried by the FELDA, and the
regeneration efforts of private estates and independent smallholders all contributed to an
increase in oil palm cultivation. In making oil palm products, Johor is one of the best places
in getting inexpensive raw materials with cheap logistics fees. Hence, the place factor is key
in ensuring the product’s competitiveness in the marketplace.

State Total Oil Palm Planted Area (Hectares)

Years 2017 2018 2019 2020 2021

Johor 748,860 747,562 758,535 740,828 699,217

Kedah 87,538 90,294 90,721 89,782 86,986

Kelantan 158,310 155,372 171,345 167,599 164,279

Melaka 57,372 56,811 57,340 56,361 54,131

Negeri Sembilan 184,815 187,451 188,979 190,462 184,674

Pahang 741,495 756,149 768,397 782,247 755,906

Perak 406,469 413,311 407,603 391,768 369,018

Perlis 660 681 891 694 760

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 Pulau Pinang 13,563 14,702 13,800 12,829 9,684

Selangor 137,783 136,361 130,671 126,525 110,250

Terengganu 171,548 168,914 180,721 178,628 172,942

Sabah 1,546,904 1,549,245 1,544,481 1,543,054 1,523,624

Sarawak 1,555,828 1,572,477 1,586,673 1,584,520 1,606,261

(Table 1: Total Oil Palm Planted Area in Different States from 2017 to 2021)

By referring to table 1, Johor is considered a location with high production of palm

oil. Hence, there are plenty of places for the construction and building of factories for our oil
palm processing business. For the oil palm business, our oil palm processing business will be
located in Kulai, Johor Bahru. Johor is one of the largest oil palm plantation and
manufacturing locations in Malaysia. Thus, more potential customers and suppliers will be
located in that area for us to easily access the palm oil with the best price for our own
business or any other possible usage. Furthermore, there will be a huge amount of potential
clients and partners will be located in that area as well, thus it is convenient for our company
to pitch our business idea, which is palm oil soap products to them for the starting steps for
our business plan. Besides, the distribution of palm oil has taken a new level with the increase
of online retailing. We are able to compare the palm oil prices online in order to obtain the
best source of raw materials for our company to produce more top-tier quality of soap
products. Besides, Johor is near Singapore, our company can connect with a fair amount of
Singapore retails or online business for us to promote and sell our products in their platforms
to boost more sales and profit. This can be the crucial key for us in stepping into the
international marketplace.

Place or distribution channel is a set of procedures in which palm oil products deliver
its products to the clients. Distribution channels full-fill various aims such as easy
accessibility and availability of the products to clients, supporting the products with

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information to the customers, assuring product quality, logistics, reducing purchase lot size
thus enabling opportunities for individual customers in purchasing products, and more.

i. Channels

Palm oil soap products can implement distribution channels such as Direct,
Indirect, or Both. The channel design decision includes the knowledge of value
proposition, current customers’ convenience locations, length, breadth and depth of
palm oil product line, and distribution channels of the competitors. For our oil palm
processing company, there will be three ways of operating our business in Johor, not
only across the nation but internationally as well. As palm oil is essential in industrial
development, food processing and production segment and technological
improvement for all the developed, developing and under-developed countries, palm
oil products market can be predicted with a continuous surging demand in the future
marketplace.

Direct Distribution System

Palm oil and palm oil products could be put on a direct distribution system and
from our company, delivered directly to the clients. Products can also be through
physical shops and factories or conducting all the sales of products online. For
example, build an official website and online stores for customers to view our
catalogue and take orders from them. By phone calls orders and deliver to the
customers’ doorstep or walk-in to get our products. Our products are distributed
through our own stores, via official online stores for people across the nations to
obtain our products and physical stores as well in Johor. If our company opts for
e-commerce, particular attention must be paid to the logistical aspects. In particular,
request what logistical processes need to be implemented to meet customer
expectations regarding product availability and delivery times. Customer
requirements are constantly increasing. For online business, we are opting for official
online stores, Shopee and Lazada.

Indirect Distribution System

Our palm oil products can be sold via channel partners such as wholesalers,
retailers, logistics companies, and distribution agents, which the sales of palm oil pass

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through a third party only to the clients or partnership with different factories and
companies in achieving more sales and profits from the clients.

Hybrid Distribution System

Our palm oil products can also implement a hybrid model where the key
aspect of the distribution channel, which is managed by our oil palm plantation and
processing business, and secondary functions will be on logistics, warehousing, store
management or various channel partners.

For indirect and hybrid distribution of our palm oil soap products, our
company first will be focusing on contributing our product at several retailing stores
such as supermarkets and mini markets. This type of retailing stores have numerous
customers visiting their stores, low in cost, low in margin and also offer a huge range
of product varieties with focus on assortment. The supermarkets that we choose are
Giant supermarket, Lotus’s supermarket, 99speedmart and Mydin to place all types of
our product because it’s near to housing area so consumers can purchase our palm oil
soap products at any moment. Besides, all these supermarkets and mini markets are
all over the place not only in Malaysia, but other countries as well. Our products may
be exported to other countries. This might be the stepping stone for our company to
step out from Malaysia and make our way through the international marketplace.
Other than this, by distributing our products in such locations, our brand name can be
promoted and make an appeal into the public eyes to give a try on our products. By
this we can gain popularity by the exposure of our products on such big locations.

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 Next, our company decided to sell our palm oil soaps at drugstores and
pharmacies which are Watson, Guardian and Caring. It is because our product, which
is palm oil soaps, is full of vitamins and minerals that bring benefits for our human
body, especially on the skin, hair and scalp. One of our targeted customers are the
people that are concerned for their health and pay attention to their body and beauty
care. Our products will have the chance of catching their eyes with our special
features in the soaps. For example, Palm Oil soaps are full of antioxidants that protect
the body from diseases and infections, anti-aging, improving the skin, hair and scalp
quality and more. Places like pharmacies and drugstores are widely trusted by the
public, as is the common mindset that products in drugstores are verified and
effective. People are more willing to try and purchase our products.

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 Then, for convenience stores we choose 7 Eleven. 7 Eleven are everywhere
across the nation as well as in different countries. We can consider that our product
will be available everywhere and anytime. As example, 7 Eleven has many branches
not only in this country, but other nations as well. People can easily access our
products anytime they want.

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2.4 PROMOTION

The European Union (EU) updated the Renewable Energy Directive (RED), often
known as RED II, in December 2018, which prohibits the use of palm oil. The EU opted to
adopt sunflower oil as an alternative biofuel produced in Europe, citing the fact that palm oil
leads to severe deforestation in Indonesia and Malaysia. The restriction on the use of palm oil
in the EU has destroyed the livelihoods of smallholder farmers in Indonesia and Malaysia,
who account for the majority of exporters to the European market. These two ASEAN
members supply about 85 percent of the palm oil consumed in Europe.

Despite the fact that the boycott was a failure, our firm needs to perform broad
advertising about palm oil in order to avoid any negative consequences of using palm oil. Our
organisation uses a few promotional tactics to sell our product, Palm Oil, in the market. Our
promotional strategy refers to the methods we use to distribute information about our
products and services in order to reach our sales target market. Advertising, sales promotion,
and public relations are the three sorts of promotional strategies we employ.

Advertising

Our primary tactic is advertising. Advertising is a type of marketing communication

that uses audio or visual messaging to advertise our products or services. Our organisation
uses television, radio commercials, and the internet to reach a large audience, such as TV3,
Hot FM, and Malaysia Gazette. To begin, we chose competitive advertising for our product
commercial by creating a basic advertisement with a short film that plays with people's
feelings, emotions, and comedy. Thailand, for example, constantly employs a humorous
advertising style to capture the interest of viewers. There is also a growing tendency in
Malaysia to create short stories to sell their products. This form of promotion may simply
spread the word about our goods.

To introduce our goods on social media, we will create our own Facebook and
Instagram pages. We invite instagram famous or instagram celebrities to make a sponsored
review about the benefits of palm oil. People nowadays prefer to listen to and trust anything
uttered by this Instagram celebrity. They readily influence society, thus by having this

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celebrity speak about the benefits of palm oil, society, particularly young people, will begin
to consume the product promoted by our firm. This is a simple and low-cost method of
promoting our goods. Because our product received a lot of hate from European companies,
we need people who have a lot of followers and fans to promote our product so that they will
get wrong and sceptical about our product. We will provide information about our product,
such as its benefits, pricing, advantages, and sales campaign. It will be used as a reference for
customers. We constantly update the page in order to increase the number of followers or
customers and spread the word about our goods.

Next, for radio commercials, we choose Hot FM channel since our message can be
conveyed instantly, it is low cost, and it is extremely portable. We also use billboards to
market our goods. This advertising might be found along the North-South route. People who
are constantly too busy with their jobs to travel can also learn about our goods.

Sales promotion

The process of enticing a potential consumer to buy our goods is known as sales
marketing. Sales promotion is intended to be a short-term strategy for increasing sales.
Because our product is popular in the local market, we offer free samples to demonstrate how
our product differs from other palm oil products on the market. Samples allow customers to
evaluate how well they appreciate our product, and we may conduct surveys to determine
which upgrades we can provide to the most satisfied customers. Our firm also offers a free
present to customers who buy three of our products. These customers will receive a free
plastic container with a nice design as a gift from us. They can use it to store food or other
items.

Personal selling

Personal selling, often referred as face-to-face selling, occurs when one person, the
salesperson, attempts to persuade a consumer to make a purchase. It is a sales promotion
technique in which the salesman leverages his or her talents and abilities to achieve a sale.

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 Personal selling is a face-to-face selling strategy in which a salesman employs
interpersonal skills to persuade a consumer to purchase a product from our firm. The
salesman strives to emphasise the product's different benefits in order to persuade the buyer
that it would only bring value. However, convincing a consumer to buy a product is not
always the goal of personal selling. To make clients aware of a new product, our firms strive
to take this strategy.

The corporation wants to raise awareness about the product and uses a
person-to-person method to accomplish so. Because selling requires a human touch, a
salesman understands how to market a product to a potential consumer better. Personal
selling may occur in two ways: through retail and through direct-to-consumer channels. A
salesperson in the retail channel communicates with potential consumers who come in on
their own to inquire about a product. The salesperson's responsibility is to ensure that he
knows the clients' needs and then displays numerous items that fall into that category. A
salesman visits potential clients in an attempt to inform them about a new product that our
firm is offering or a new deal that the consumers may not be aware of from the open market.

Promotion

A sponsorship advertisement is one in which a firm pays to be connected with a

certain event. Indeed, sponsored advertising is common at philanthropic events. Companies
may fund local sporting teams, sports competitions, fairs, and other community activities in
addition to philanthropic events. The goal is to get our company name out to market and be
perceived positively as a contributing member of the targeted community.

Educational sponsorship is another type of advertising sponsorship. According to the

website "Tutor2u," this might include sponsoring a specific student in various educational
programmes at educational institutions. In exchange for mentioning the firm in programme
brochures and other sorts of sponsorship mention, a corporation may sponsor the provision of
mobile technology devices for use in a college programme. Often, the exposure generated by
supporting educational initiatives serves as the payback for educational sponsorships.

Alignment with integrated brand marketing is critical for marketers in sponsorship

arrangements. IBP is the intentional uniformity and coordination of all brand messages given

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across all media channels. Companies must evaluate the possible positive or negative
connections they may make by identifying with the event when sponsoring events. It is also
vital to sponsor programmes and events that are attended or viewed by individuals in the
company's target market.

Direct mail

Direct mail marketing is the process that uses printed mailers, dimensional parcels,
perishable commodities, corporate swag, or other tangible objects to contact prospects and
consumers offline. Marketers of various sorts use it in a number of ways, including inbound
and outbound sales teams, marketing departments, demand generation teams, growth teams,
recruiters, and others. Direct mail marketing is an effective technique to engage with
prospects, leads, and clients.

Marketers have increasingly resorted to the potential of digital communication to

reach larger audiences as digital media has grown over the last two decades. It makes sense
according to Hubspot research, consumers are more connected than ever, spending more than
five hours per day on smartphones. According to Tech Times, over half of Americans check
their phones before getting out of bed. As a result, customers have seen an increase in digital
marketing.

However, the rise in digital marketing has resulted in a surge in digital overload.
According to Edison, over three-quarters of customers feel overwhelmed by email
advertising, and more than one-quarter use ad-blocking software to supplement their digital
experience, according to

With a rising aversion to digital advertising, marketers are competing for attention
while attempting to satisfy an increasingly tired and sceptical audience. It is getting more
difficult to rise above the din. As a result, a rising number of marketers are delivering their
message to the inbox, where it may be clearly received.

Marketers have been seeking methods to construct sophisticated automated processes

and leverage the potential of direct mail marketing since the heyday of printed direct mail
cards. Direct mail marketing campaigns are effective, but physically executing direct mail
necessitates the control of several moving elements.

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 Campaign planning and design sourcing and or creating gift goods, packaging
materials, and printed content; administration of warehousing, tracking, shipment, delivery,
response, and follow up; and showing ROI after the send are all part of the manual process.
The easiest approach to get the most out of these campaigns without devoting human work
and team hours to the process is to automate the direct mail marketing process using a
Sending Platform.

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3.0 CONCLUSION

In conclusion, our product has entered the local market and the market for healthcare
products successfully. The consumer has also accepted our product in full. This is a result of
our marketing mix initiatives' success. We periodically decide to upgrade our product
depending on consumer needs and wishes in order to keep it on the market. Price, place,
product, and promotion are all part of our marketing mix tactics. We pick the finest location
to promote our goods, such as a supermarket, Speed Mart, or a medical supply store such as
Watson and Guardian.

Our company product item is soap. We employ several sorts of scent and shape as a new
company in the market based on consumer preferences. Palm oil is a key component in the
soap that our business makes. Our organisation stands out from others because of the type of
soap we use. Our target market is consumers who are concerned about their health, so we
provide roses, lavender, and lemon for our premium flavour. We selected palm oil because it
can treat cyanide poisoning, malaria, high blood pressure, high cholesterol, and brain sickness
as well as prevent vitamin A deficiency, cancer, cancer of the brain, and ageing. Palm oil is
utilised to boost the body's metabolism and help people lose weight.

Our organic soap is suitable for all ranges. We have our own target market with
different flavours based on consumer preferences. We provide our product in the market with
the affordable price all levels of income could afford and buy our product besides satisfying
consumer needs. We use suitable packaging to attract people to buy our products.

We make the decision to use strong promotion in our promotional efforts. We're doing
this to let customers know about our new product. We aim to influence them to switch from a
rival product to ours. Since our soap is a high-quality product, we wish to convince customers
to buy it.

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4.0 REFERENCES

1. Why The EU Should Lift Its Ban On ASEAN Palm Oil. (2016, December 29).
Retrieved June 21, 2022, from The ASEAN Post website:
https://theaseanpost.com/article/why-eu-should-lift-its-ban asean-palm-oil
2. Economics and Industry Development Division, Malaysian Palm Oil Board. Malaysia
Palm Oil Board. https://bepi.mpob.gov.my/
3. AgriCommodity Pocket Stats 2019. (February 2020). Ministry Of Plantation Industries
And Commodities (MPIC).
https://www.mpic.gov.my/mpi/images/01-Bahagian/PSA/2020/2019_Agricommodity
_Pocket_Stats_Resize.pdf
4. Malaysia Oil Palm Planted Area, Economic Indicators. CEIC.
https://www.ceicdata.com/en/malaysia/planted-area-oil-palm/oil-palm-planted-area
5. What Is an Advertising Sponsorship? (2016). Retrieved June 25, 2022, from
SmallBusiness - Chron.com website:
https://smallbusiness.chron.com/advertising-sponsorship-17364.html

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