Puncak Bayu Trading (Relationship Management)

8/8/2019 Puncak Bayu Trading (Relationship Management)

http://slidepdf.com/reader/full/puncak-bayu-trading-relationship-management 1/17

PUNCAK BAYU TRADING

TASNIM GAU

RELATIONSHIP MARKETING

MKT 663

SUBMITTED TO:

MADAM MUHAZITA ALIAS

PREPARED BY:

AZITAL ISMAIL 2008522821

AHMAD SAYUTI MOHD YUSOF

MUHAMMAD LUQMAN ALIAS 2009476436

MOHD SHYUKRI AKRAM ARIFIN 2009215066



2

ACKNOWLEDGEMENT

Alhamdulillah to Allah S.W.T. because of His blessing, we finally finished this

assignment. Therefore, we would like to take this opportunity to express our gratitude to

our Relationship Management Lecturer, Madam Muhazita Alias, for his comments,

advice and guidance in the preparation of this report from the beginning until the end of

it.

Besides that, we would like to thank our colleagues for giving full co-operation and

commitment all the way. Friends, all your brilliant ideas and suggestions really helped

us a lot. This report is very interesting and we try to do it as best as we can.

Nevertheless, we also want to thank our parents for their supports in helping us to finish

this report. They are willing to contribute, in terms of time, money, energy and others.

Without their help and contribution, this report will not be completed.

And lastly, we would like to express our appreciation to the people who involved directly

or indirectly in the process of completing this report. Thanks a lot to all of you. May Allah

S.W.T. bless all of you.



3

TABLE OF CONTENT

ACKNOWLEGDEMENT««««««««««««««««««««.2

TABLE OF CONTENT«««««««««««««««««««««.3

1.0 INTRODUCTION««««««««««««««««««««..4

1.1 COMPANY BACKGROUND««««««««««««..5

1.2 VISION OF THE COMPANY««««««««««««..6

1.3 MISSION OF THE COMPANY«««««««««««...6

1.4 OBJECTIVES OF THE STUDY«««««««««««..6

1.5 SCOPE OF THE STUDY««««««««««««««7

1.6 METHODOLOGY«««««««««««««««««..8

2.0 FINDINGS«««««««««««««««««««««««..8

2.1 CUSTOMERS««««««««««««««««««...8

2.2 COMPETITORS««««««««««««««««««8

2.3 SUPPLIERS«««««««««««««««««««..82.4 RELATIONSHIP««««««««««««««««««8

2.5 EXPANDED MARKETING MIX«««««««««««..9

2.5.1 PRODUCT«««««««««««««««««.9

2.5.2 PRICE«««««««««««««««««««.10

2.5.3 PLACE«««««««««««««««««««10

2.5.4 PROMOTION««««««««««««««««.10

2.5.5 PRODUCTIVITY AND QUALITY««««««««11

3.0 MARKET AND CUSTOMER STRATEGY««««««««««12

4.0 CONCLUSION«««««««««««««««««««««...14

5.0 RECOMMENDATION««««««««««««««««««...156.0 APPENDIX«««««««««««««««««««««««.16

7.0 REFERENCES«««««««««««««««««««««..17



4

1.0 INTRODUCTION

In this chapter, we will discuss on the background of one small company and the

background of the study which will provide the general idea on the scope of the

study about PuncakBayu Trading, a company that supply mineral water in

Malaysia. Besides that, this chapter also presents theobjectives of study, scope

of study, significant of study, limitation of this study that researcher facing and

lastly definition of key term.

In 2009, bottled water experienced a slowdown in total current value growth

compared to 2008 as fierce competition between manufacturers and retailers

saw frequent promotions. This activity positively influenced demand as many

consumers are increasingly opting for bottled water for their daily consumption

needs rather than relying on water from water refill stations or tap water.



5

1.1 COMPANY BACKGROUND

About 20 years ago, this mineral water founded by Tuan Guru Hj.

MohdBaqi Othman, at a water resource in Sg. Gau, Temerloh, Pahang.

This water at the beginning used as the water resource for a madrasah

there only and after this water was tested by MARDI, the result was

amazed many people. The mineral contain in this water look like Zam-

Zam water. After that, Tuan Guru Hj. MohdBaqi Othman makes a decision

to commercialize this water with his friends. It starts with Sg. Gau Trading

in late 2001, with brand Gau. Then, in late 2005, they come out with a

new brand name, Tasnim which in Arabic mean water from paradise. This

time they make a new company, PuncakBayu Trading that operates until

now.

With limited financial resources and advertising, actually TasnimGaubrand

has marketed at all state in Malaysia include Sabah. The main strength of

this mineral water is the water itself. It contain a high total dissolve solid

(TDS); level of mineral in the water, that is 284mg/l. The high level of TDS

mean this water contain high level of mineral. In order to sustain in the

market, PuncakBayu Trading has develop various strategy.

TasnimGaubrand come with 500ml, 1500ml, 5500 ml and 10000ml. Now,

TasnimGaubecome one of the mineral water brands that have a good

demand in the market.



6

1.2 VISION OF COMPANY

Vision of their company is to capture the market and to be a successful

player in the market

1.3 MISSION OF COMPANY

One of the successful mineral water in Malaysia

Provide high quality of mineral water

Provide variety of high quality product

Good relationship with their agents

Their mission also to help Madrasah at Pahang

1.4 OBJECTIVE OF THE STUDY

To determine how PuncakBayu Trading do to deliver quality to the

customers

To know how PuncakBayu Trading maintain their relationship with

customers

To examine the nature of relationship marketing and its relevance to the

company products.

To discuss what personalized service provided and whether service

quality exceeds expectations

To examine the techniques practiced for customer retention

To examine how the company does customer valuation that is how to

value customers and categorize them according to their financial and

strategic value so that companies can decide where to invest for deeper

relationships and which relationships need to be served differently or even

terminated.



7

1.6 SCOPE OF STUDY

The scope of our study is involved our team¶s corporation and research,

expert guide, time and place. The measurement of our study reflects to

the SME in Malaysia and we focus on a bottled water company,

PuncakBayu Trading. Therefore, the data collected t through the first and

secondary data such as from interview and information from blog in the

Internet. Hence, a validity of the assumption will be approved by our

guider and lecturer Madam Muhazita Alias.

1.7 METHODOLOGY

Our group has conducted an interview with the factory representer in order

to grasp the general idea about this company as the primary data. We

also search online for the secondary data that we get from the company¶s

blog and some online journal website.



8

2.0 FINDING

2.1 CUSTOMERS

After we have done this report we found that their customers are all

people from all layer of age. PuncakBayu Trading not focus on specific

group of people only but they focus on all people because everybody

needs water in their daily life.

2.2 COMPETITORS

Their competitors in this industry are all type of mineral water such asSpritzer, Seamaster, Bleu, and Cactus. Even though their reputation is not

as high with that entire mineral water brand but TasnimGauMineral Water

has highest content of total dissolved solid.

2.3 SUPPLIERS

Because they only produce high quality of mineral water, so their suppliers

are in term of bottle, box, packaging plastic and transportation. They musthave good relationship with their suppliers to make sure they will not face

shortage of material.

2.4 RELATIONSHIP

PuncakBayu Trading not sell their product directly to their customer. So

they sell their product to their agents. The requirement to be their agent is

that party must buy in quantity that has state by PuncakBayu Trading andtheir agents also must continue buy their product every month. To build

good relationship, their agents also make promotion about

TasnimGauMineral Water. So when people know about that product,

people will buy that product from their agents and their agents will buy

from PuncakBayu Trading. For agent that have good performance and to

encourage sale from their agents, PuncakBayu trading not give discount



9

but they give free of charge. For example if their agents buy 500 bottles of

mineral water, they will give some free of charge units.

2.5 EXPANDED MARKETING MIX

2.5.1 PRODUCT

Product is the core element in the business. It about what we offer

to the customers whether tangible or intangible. The product itself

can be separate by three part; core, supplementary and delivery.

The core product is the main benefit that customers will get from

the service provider. Supplementary product is the value added to

the core product that will facilitate the customers to get the core

product or enhance the core product value.

For PuncakBayu trading, their core product is TasnimGauMineral

Water. They produce mineral water in variety of quantity such as

500 ml, 1.5 liter, 5.5 liter and 10 liter. The supplementary product is

something that the service providers do to make customers satisfy

and happy with the service and for the TasnimGau, Their

supplementary product is their bottle, packaging, transportation and

customer service.



1 0

2.5.2 PRICE

Price is the value of money that customers must pay for a product.

The pricing strategy stands on three legs; costs, competition and

value for customers. So, every price charged by the manufacturer

is based on these three aspects.

For the price of TasnimGaubrand, they sell

i. 500ml = RM1.20

ii. 1500ML = RM2.20

iii. 18.9LITER (5 Gallons) = RM20.00

They use the normal market price so that they are no problem in

penetrate the market.

2.5.3 PLACE

Place also known as distribution, how the service provider deliver

their service to the customers. Many people are likely to think that

distribution is move a physical product to distributors and retailers

for sale to end users. Here, PuncakBayu Trading use state agent

as their distribution agent that deliverTasnimGaudrink to thecustomers. It is less cost to the company and effective because

every agent only monitors and controls sales on a state.

2.5.4 PROMOTION

Promotion is about educate the target audience, give them

appropriate information then creates awareness among them and

lastly switches the audiences to customers.

With limited financial resources, PuncakBayu Trading has limited

choice of how they want to promote their products. So, they choose

to do advertisement in the tabloid newspaper, because it is

cheaper, long lasting and easy to be found by the customers.



1 1

2.5.5 PRODUCTIVITY AND QUALITY

These days the rights of consumers to expect and obtain good

quality goods are firmly entrenched in business thinking. Yet this

happier state of affairs than once existed should not been seen as

altruism on the part of the companies concerned.

Through they are often treated separately, productivity and quality

should been seen as two sides of the same coin. No organization

can afford to address one in isolation from the other. Improving

productivity is essential to any strategy for reducing costs, but

managers must beware of making inappropriate cuts in service that

will be resented by customers (and perhaps by employee, too).

Improving quality, which should be defined from customer

perspective, is essential for product differentiation and for building

customer satisfaction and loyalty.

As Larry R. Smith said in his report µµquality became the focus of

everyone andevery process. In manufacturing, senior management

came to each manufacturing facilityevery month, spending one full

day focused on quality. In business meetings, safety andquality

items were first on the agenda ± cost items were last´.Even

operates as a small medium enterprise, PuncakBayuTrading put

the quality first on their products. Every month, officer from Ministry

of Health will check the operation place and for the production, the

supervisor will make sure the quality control of the products.



1 2

3.0 MARKETING AND CUSTOMER STRATEGY

Before we formulate any strategy, first we should analyze our current situation.

Then, we will get a clear view of the market situation that will guide us in making

a good strategy. There are two basic question which must be addressed in order

to analyze our company situation in the market: in what product market areas

should the company compete, and what strategy should be adopted within these

market areas?. So, let us answer these questions. PuncakBayu Trading is a

bottled water company that supplies mineral water so this company should

compete in the bottled water market that include mineral water, reverse osmosis

water and other drinking bottled water. With the present product that is bottled

water and serves for the present market that is Malaysian market, so based on

the product- market matrix, the strategy that PuncakBayu Trading should use is

penetration strategy (X).

Figure 3.1 The product- market matrix

Market

Penetration

Product

Development

Market

DevelopmentDiversification

Present New

Pre

se

nt

Ne

w

Product

M

ar

ke



1 3

There are some strategies which can be adopted once a decision has

been made regarding which products and which market to be involved in.

According to the Micheal Porter, the strategies are cost-leadership

strategy, differentiation and focus strategy. The cost leadership strategy is

not relevant to this product and the market because the market price has

been standardize and also the company will face many financial problems

if they make decision to lower their price due to the high operation cost.

The last to strategy can be applied in this situation.

For the differentiation strategy, PuncakBayu trading with the

TasnimGaubrand already has a differentiation point, which is the high

level of TDS compare to the other competitors in the market.

Differentiation advantage occurs when a firm is able to obtain from its

differentiationa price premium in the market that exceeds the cost of

providing the differentiation. Other than that, the company can make some

creative advertisement in order to differentiate their products.

Then, PuncakBayu Trading also suitable to do focus strategy. With the

size of the market that is big and hard to monitor and control, this strategy

is very significant. Despite we only serve for a small market but we have

full knowledge for that market. So, this will easier to us market the

products.

All the strategies must be change follow the time and situation. Marketers

should be alert and flexible in order to suit with the current market



1 4

4.0 CONCLUSION

The reality of customers forming relationships with people rather than with goods

is a key source of benefits to the firm. To date, most of the relationship researchhas focused on the firm, either in terms of business-to-business relationships or

management of salespersons. These reflect the customer's evaluation of the

costs or benefits of entering, remaining, or leaving the relationship. Relationships

between a company and their customers, distributors, employees, referral

sources, are vital to continued, sustained growth, and stability. Loyal

relationships with these valued individuals make for a strong bottom line. Two-

thirds of customers switch from one company to another because of a perceived

attitude of indifference from the former company, it makes sense to focus as

much attention on customer retention as company do on customer acquisition.

Develop a good relationship marketing program that takes into consideration

both customer relationship marketing, and customer acquisition through

relationship marketing. Understanding the importance of relationship marketing is

vital to a company true success.



1 5

5.0 RECOMMANDATION

1) There are some unpleasant complaints from customers on how the

products are hard to get in some areas. As a way to solve the problem, the

company needs to have good relationship with their supplier to make sure that

the product will be always available at supermarket such as Tesco, Mydin and

others. For an excellent relationship, it is very important there exists a mutual

business understanding emphasized with respect and a sincere wish for each

party to do well. Creating this balance does not mean driving for the lowest

possible price, but rather recognizing that the success of one partner helps the

success of the other. The best relationship can be achieved by focusing on

conducting that breeds honesty, respect and open dialogue and strategic

financing that benefits both parties.

2) The company should increase the number of dealers to make the products

available at numerous places. The company still hasnotbeen able to market

their products to all territory such as Sabah, Sarawak and Brunei. In order to

make it available for all area to have their products they will need to work with

management to build Cover - All through strategic acquisitions, increased wide-

ranging reach, and by further enhancing market awareness.

3) The company needs to have customer database. Usually companies often

make the costly mistake of servicing a customer once then assuming "they'll

stay" as a customer or client without maintaining and growing that relationship.

The company will not wondering what happened to the customer, where they

went, and always able to hear from them if they have database on customer.

Building these relationships means treating customers and clients as if they

truly are strategic partners and showing them that company truly cares about

them. It is important to try to satisfy them with the right products and services,

supported by the right promotion and making it available at the right time and

location.

4) The company needs to increase the promotion activities to increase the

awareness among people because not many people already know about water

TasnimGauwhile some have never heard. They probably can do exhibition

such as KarnivalUsahawan, KarnivalKarangkraf, MIHAS which is a major

international halal exhibition organized every year and other exhibition. They

also need to conduct a massive advertising on print media and electronic

media.

5) The company should provide extensive customer care services and

support team for total customers¶ convenience and peace of mind.



1 6

6.0 APPENDIX



1 7

7.0 REFERENCES

1- Christopher M.,Payne A., Ballantyne D.,(1994). R elationship

Marketing.GreatBritian:Butterworth-Heinemann Ltd.

2- www.blackwellpublishing.com/grant/5thEdition/pdfs/CSA5eC09.pdf

3- http://airtasnim.blogspot.com/

4- www.emaraldinsight.com

Documents

Puncak Bayu Trading (Relationship Management)