Cleanie, a waterless alochol-free hand sanitizer proposed to be launched in Malaysia

2. John Lai
Professor/Mentor

3. about.me/cleanie

4. Population Density
Malaysia: 86.44/km² H.K.: 6540/km²

5. Age Structure
65+: 5%
0-14:29.6%
15-64:65.4%

6. Religions
Hindu: 6.3%
Christian: 9.1%
Others:4.9%
Buddism:19.2%
Muslim:60.4%

7. GDP per Capita
Malaysia managed to JUMP 4 places from 59 in
1970 to 54 in 2009 thanks to the oil and gas and oil
palm. You can try to guess Malaysia's ranking
without these commodities.
http://chanky50.blogspot.com/2010/07/per-capita-gdp-ranking.html

8. Official Currency
The Malaysia Ringgit
The Malaysian ringgit (plural: ringgit; currency code MYR; formerly
the Malaysian dollar) is the currency of Malaysia. It is divided into
100 sen (cents). The ringgit is issued by the Bank Negara Malaysia.

9. What can 8RM buy?

10. Why Cleanie?
• Clean
• Caring
• Cute
• Kind
• Easy to remember
• Easy to spread

11. Mission & Vision
• Help people realize the importance of
hand hygiene, thus to set up a concept
of healthy lifestyle.

12. Why outsourcing?
• Levitate financial burden
• Technological Constraints
• Convenience to start the business
Malaysian firms take longer times to obtain permits. 22.38 days to
obtain an operating license,16.21 for the region.
• Regional Integration: ACFTA
• Result: Indirect Exporting with ETC

13. • Manufacturer:
• instant hand sanitizer manufacturer
• 8-year experience
• ISO9001:2008 international factory quality certifying system
• Flexible production scheme.

17. Target Customer
• Age:12-50, Middle class
• White collars, Students, Travelers
• Muslims
Care about health
Passionate about life
And the society

18. Competitor
Quantity
Product Manufacturer Price(RM) Δ/50ml
(ml)
Dettol Reckitt Benckiser 50 8 0.01
Cool & Cool Unknown Origin 60 8.5 -0.91
Cuticura Cuticura Labs, Corp 100 18 1.01

19. Competitor

20. S.W.O.T
Strength Weaknesses
Alcohol free Lack of experience & market power
Cost leadership Low brand awareness
Low control over production quality
Opportunities Threats
Supported by the government Easy to duplicate
Demand for sanitizer
Undiscovered Market ( Muslim )

21. Product
• Attributes:
• 1st feature: able to kill 99.99% of most
common germs within seconds, gentle,
no harsh chemicals.
• 2nd : Convenient and portable.
• 3rd : Alcohol free.

22. Place
• Three major cities
Kuala Lumpur
Johor Bahru
Penang
• Surroundings
• Indirect selling:
7-eleven, Watson’s, GNC, Jusco,
Whole Foods, Tesco, Econsave, Giant,
The Store, Carrefour, Mark & Spencer etc.

23. Kuala Lumpur

27. Penang

31. Johor Bahru

35. Price
• What we will use is:
Penetrating Pricing
Because:
• Consumers’ demand is highly price elastic
• Substantial economies of scale are available
• Seize the mass market → be the standard!!

36. Price
• Benefits:
• Help diffuse our product & a surprise to our
competitors
• A barrier to stop new competitors
• Quick sale & high turnover
• Pressure of being better!!

37. Promotion
• Advertising approach:
• TV
• Radio
• Internet
• Print
• Billboard

38. Promotion
• Advertising Style:
• Factual style
• Imaginative
• Comparative
• Emotional

39. Promotion
• Events:
• Public service activity
To Promotes health
• E.g.: Yoga, Marathon
Food nutrition talk

40. Control
Why?

41. Control
• Sales and cost control
• Quarterly Market share analysis
3%up in first three years,
1%up in the following years.
• Semiannual Sales analysis

42. Control
• Sales and cost control
• Sales per thousand customers, per factory, by
segment (Double Check!)
• Market reaction/acceptance to pricing polices
• →Budget control→笑脸

43. Control
• Quality control
• Regular Quality control (Double Random Check)
→ A high significance level !
• Continuous Marketing research

44. Control
• Reputation & Public relation
control
• Customer feedback through satisfaction
surveys
• Location of buyers and potential buyers
• Performance of any promotional activities
• Public Relation Control

46. Control
• Logistic
Factory
• RFID
Malaysia Warehouse

47. Objectives
• Short terms objectives along product life
cycle:
• Sales
• Brand & Product awareness
• Placement
• Market share

48. Objectives
• Long terms objectives along product life
cycle:
• Introduction
• Growth
• Maturity
• Saturation
1 2 3 4 5 6 7 8

50. Budget
• Profit matrix
Category Price $/unit
Unit cost 0.5
Tariff (S):20% markup 0.1
International Shipping cost: $25/m³= $25/1000000 cm³ 0.027
1000000/25840=38 cartons = 912 units
Unit shipping cost (China to Malaysia): $25/912=
Domestic Shipping cost: $40/m³= 1000000 cm³ 0.044
1000000/25840=38 cartons = 912 units
Unit shipping cost (China to Malaysia): $40/912=
Promotion cost (TV commercial, online advertising) 0.3
External Retail Cost 0.971

51. Profit projection
1st Year 2nd Year 3rd Year 4th Year 5th Year
Quantity 563,655 676,386 811,664 1,014,579 1,268,224
Sales Revenue (in $) 1,493,686 1,792,424 2,150,909 2,688,636 3,360,795
Literature
Internet Channel 50,000 25,000 25,000 25,000 25,000
Posters 50,000 25,000 25,000 25,000 25,000
Gifts 200,000 100,000 100,000 100,000 100,000
Mass Promotion
TV Commercial 1,000,000 500,000 800,000 300,000 200,000
Sign Boards 100,000 100,000 50,000 50,000 50,000
News Paper Add 200,000 500,000 100,000 100,000 100,000
Factory Overheads 547,309 656,771 788,125 985,157 1,231,446
Misc.(PRexpense included) 250,000 250,000 250,000 250,000 250,000
Total Cost 2,397,309 2,156,771 2,138,125 1,835,157 1,981,446
Gross. Profit/Loss -903,623 -364,347 12,783 853,479 1,379,349
Taxes 0 0 -3,196 -213,370 -344,837
Net Profit/Loss -903,623 -364,347 9,587 640,109 1,034,512

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