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USPILLOW INC.
DEVELOPING BUSINESS STRATEGY FOR NEW COMPANY IN
SERI KEMBANGAN
BY
LUO PEIHUAN
SUPERVISOR:
DR.ABDULRASHIDBINABDULLAH
JACKSON LAW
SCHOOL OF BUSINESS AND ECONOMICS, UNIVERSITY PUTRA
MALAYSIA 2019/2020
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TABLE OF CONTENS
ACKNOWLEDGEMENT ………………………………………………………………………………………………………… 4
EXECUTIVE SUMMARY …………………………………………………………………………………………………… 5
I.
DECLARATION ………………………………………………………………………………………………………………………… 6
COMPANY AND PRODUCT DESCRIPTION…………………………………………………………………….. 7
II.
a.
Company Name and location………………………………………………………………………………………….. 7
b.
Company Logo ……………………………………………………………………………………………………………….. 7
c.
Nature of the Product ……………………………………………………………………………………………………… 7
III.
a.
SITUATION ANALYSIS ………………………………………………………………………………………………….. 8
The External Environment ………………………………………………………………………………………………. 8
Competitive forces …………………………………………………………………………………………………………….. 8
Economic Forces ……………………………………………………………………………………………………………….. 8
Political Forces ………………………………………………………………………………………………………………….. 8
Legal and Regulatory Forces …………………………………………………………………………………………….. 9
Technological Forces…………………………………………………………………………………………………………. 9
Social Forces …………………………………………………………………………………………………………………….. 9
b.
The Customer Environment ………………………………………………………………………………………….. 10
c.
The Internal Environment ……………………………………………………………………………………………… 11
Current Objectives, Strategy, and Resource Availability ………………………………………………….. 11
Organizational Culture and Structure ……………………………………………………………………………….. 12
IV.
SWOT ANALYSIS ………………………………………………………………………………………………………… 12
a.
Strengths ………………………………………………………………………………………………………………………. 12
b.
Weaknesses …………………………………………………………………………………………………………………. 13
c.
Opportunities ………………………………………………………………………………………………………………… 13
d.
Threats …………………………………………………………………………………………………………………………. 14
e.
Analysis of the SWOT Matrix ………………………………………………………………………………………… 14
f.
Competitive Advantage and Strategic Focus ………………………………………………………………… 15
V.
MARKETING GOALS AND OBJECTIVES……………………………………………………………………….. 15
VI.
MARKETING STRATEGIES …………………………………………………………………………………………. 16
a.
Target markets ……………………………………………………………………………………………………………… 16
Target market #1 ……………………………………………………………………………………………………………… 16
Target Market #2 ……………………………………………………………………………………………………………… 17
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b.
Marketing Mix ……………………………………………………………………………………………………………….. 17
Products …………………………………………………………………………………………………………………………… 17
Price ………………………………………………………………………………………………………………………………… 17
Place………………………………………………………………………………………………………………………………… 18
Promotion ………………………………………………………………………………………………………………………… 18
c.
Branding and Positioning Strategy ………………………………………………………………………………… 19
VII.
MARKETING IMPLEMENTATION ………………………………………………………………………………… 22
a.
Activities, Responsibilities, Timelines, and Costs ………………………………………………………….. 22
VIII.
EVALUATION AND CONTROL…………………………………………………………………………………….. 23
a.
Evaluation of the Business Plan ……………………………………………………………………………………. 23
b.
Formal and informal controls ………………………………………………………………………………………… 24
References ……………………………………………………………………………………………………………………………… 25
APPENDICES …………………………………………………………………………………………………………………………. 26
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ACKNOWLEDGEMENT
My sincere appreciation goes to my final year project supervisor, Dr.RASHID for his patient and
guidance throughout the process of preparing this research. I would also like to thank my
industry supervisors(Jackson law) for his advice and useful critiques to ensure me in keeping
my progress for the preparation of this final semester. his timely and full commitment in guiding
myself helped me complete my research and I express my sincerest appreciation for his
assistance in any way that I may have asked.
I am also indebted to my lecturers, Dr. RASHID for the worthy contribution toward my research
project as they supported me to complete this final year project. I am also would like to express
my appreciation for their care and concern.
I would also like to extend my thanks to my family for their motivation, support, and
encouragement throughout my study. Last but not least, I would also like to take this opportunity
to thank all of my friends for their moral support and their knowledge as well as those who were
directly or indirectly involved to the successful completion of this study.
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I.
EXECUTIVE SUMMARY
This report presents the plan for UrsPillow Inc., a start-up company offering solutions to sleep
problems and neck/shoulder pain and headache experienced by people when they wake up.
The firm’s main product is the Water Pillow, a smart pillow with heat regulation capabilities and
an alarm clock.
An evaluation of the business environment, customer environment and the potential strengths,
threats, weaknesses, and opportunities laid the foundation for this business plan. Based on the
analysis, it is evident that UrsPillow has the potential to grow and succeed in the bedding
industry due to the unique features of its products. While the competition is intense, the
products that it offers will meet an unidentified need in the market, providing it with a competitive
advantage over its competitors. This plan focuses on how UrsPillow can enter the bedding
industry and become a leader, portraying its competitive advantage, the populations that it
should target, and the strategies that it can implement to ensure success and meet the different
goals and objectives.
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DECLARATION
I hereby declare that the case study is based on my original work except for
quotations and citations that have been duly acknowledged. I also declare it has
not been previously or concurrently submitted for any other master degree at
UPM or other institution. The work was done under the guidance of Dr. ABDUL
RASHID BIN ABDULLAH, at the University Putra Malaysia.
LUO PEIHUAN
Date: 30TH JULY
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II.
COMPANY AND PRODUCT DESCRIPTION
a. Company Name and location
The name of our company is UrsPillow. The company will be located in Kuala Lumpur,
Malaysia, and it will offer the Water Pillow, a smart pillow with heat regulation features and an
alarm clock, all of which can be customized to meet the specific needs of the customer.
b. Company Logo
The design of the logo of our company is based on the simple concept; that health is
precious, hence there is a need to protect it. The logo comprises of a pillow protected by two
hands, a symbol that life is precious. Just like the pillow is protected by the two hands, life
should also be protected, and the pillow offers a solution to this. The color of the logo is navy
blue, a shade of blue that carries a sense of elegance as well as sophistication. Overall, the log
will instill in the target population the idea of the preciousness of life, and motivate them to
purchase our products. It also gives our products a unique identification and will be exclusively
utilized in all our products, factories, business cards and t-shirts among other promotional
materials.
c. Nature of the Product
The main product currently offered by our company is the water pillow, which is
specifically designed to offer support for your neck during sleep and replaces the alarm clock to
an option that is easier on the ears. The product is a water-based system with a temperature
controller that regulates the temperature of both your head and neck to provide you with the
best sleep experience. This is facilitated by memory foam and a thin membrane with water;
hence there are no electronics beneath the head. The thick, quilted memory foam pad is placed
beneath the pillow. The pad comprises tubes filled with water, and a thin cord is used to connect
it to a little tank that is placed on a table at the bedside. This water heat performs the regulation
functions, and it is controlled by an app or the remote. In addition to the temperature regulation
aspect, the pillow has a built-in clock, which has vibrating pants that allow the user to set
everything. The difference between the vibrating pants and the alarm clock is that the vibrating
pants are designed in a way that they prevent waking up your partner, and they gently clatter
your head until you wake up. The features of the pillow can be customized to meet the specific
needs of the customer.
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III.
SITUATION ANALYSIS
a. The External Environment
Competitive forces
The competition in the bedding industry is extremely intense. Some well-established
companies provide products that have been designed in a manner that meets the needs of the
different consumers in the market. A major competitor is Getha Corporation, which is wellknown for its extensive inclusion of intense research and development as a strategy to improve
its products and offer a variety of products especially in regards to pillow products.
Nevertheless, the temperature regulation and in-built clock aspects of the Water Pillow give it a
competitive advantage in the market, since it is not easy for some of the firms in the industry to
mimic as well as practice this. With a focus on the pillow products only, and a goal to provide
customized pillows, UrsPillow will be able to offer pillow products that specifically meet the
needs of the customers, and help them to directly address their sleeping problems. This will
help the company compete effectively in the market.
Economic Forces
Malaysia has a healthy, industrialized as well as a robust economy. According to The
World Bank (2019), the rates of unemployment in the country stood at 3.3% as of August 2019.
In addition, the inflation rate of the country is low. Since April 2016, it has been around the ideal
2%, which gives people the ability to purchase goods and services. Further, despite the 20082009 global crisis, the Malaysian’s overall consumer expenditure has been increasing on an
annual basis. This is a clear indication that consumers are willing to consumer goods as well as
services in order to lead high-quality lives. In addition, research carried out by Synovate
revealed that 55 percent of Malaysian’s young population between the age of 25 and 34 do not
mind paying a lot more money to get high-quality goods and services. All these factors provide
great opportunities and prospects for firms in the bedding industry.
Political Forces
Malaysia is well-known for its political stability. In particular, it constantly pursues the
principles of neutrality as well as peace in the development and implementation of foreign
policies. According to Xinhua (2018), political stability vital for businesses because it impacts
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consumer and investor confidence, greatly impacting the economy. Overall, this is a positive
external factor for UrsPillow. Nevertheless, there are major political issues in the source country
that can greatly impact the business. In particular, the issue of the sourcing of raw materials
from India has garnered a lot of attention from Indian politicians. The issue of low prices for
cotton coupled with high prices for chemicals has resulted in bankruptcy in many Indian farmers
(Gutierrez et al., 2015). For this reason, strict measures may put in place, which can ultimately
affect the UrsPillow by increasing the costs of raw materials.
Legal and Regulatory Forces
In recent years, greater regulatory measures have been put in place. These include a
lack of minimum capital requirement to start a business and flexible regulations on the minimum
wage requirements. Restrictions on working hours are also very flexible (Index of Economic
Freedom, 2019). This is a great opportunity for UrsPillow to take advantage of and lower if the
costs of operations.
Technological Forces
The Internet has extremely transformed the world. Today, Malaysia is an extremely
technologically advanced country. Indeed, Wok & Mohamed (2017) report that the country had
20.6 million users of internet in 2016. A lot of people in the country are also aware of how to use
social media, and they are attached to it extremely well. The country also has an extremely
good distribution of the network. This can help UrsPillow operate its business online and reach
its consumers more efficiently. It can also grab this opportunity to market its products online,
and reach to consumers even outside the country. Overall, therefore, UrsPillow should
maximize the use of e-commerce for both sales and promotional purposes.
Social Forces
Today, a lot of people are switching to online shopping. A lot of them are for the idea of
receiving products at the comfort of their house. This is an opportunity for UrsPillow to market its
products online and reach diverse populations. Additionally, Malaysia has an extremely rich
history, which makes it tremendously appealing to tourists. This is a great opportunity for the
company to market its products to foreigners, which can ultimately make them recognized in
foreign countries. Nevertheless, a key negative social attribute is high rates of alcohol abuse in
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the country. If the company hires someone who is an alcohol abuser, the image of the company
can be ruined. Therefore, UrsPillow should be conscious of this factor prior to hiring someone.
b. The Customer Environment
To understand our customer environment and determine our target market, we distributed
questionnaires to approximately 100 potential customers in Kuala Lumpur. 78 of these returned
the questionnaires. The purposes of the questionnaire were to:

Determine the pillow buying criteria.

Determine the most preferred pillows; traditional or smart?

Find out why people switch from traditional pillows to smart pillows.

To know whether they encounter any problems during sleep.

To know the number of people who have had experience with a water pillow.

To know the number of people who experience difficulties to wake up.

To know if people utilize an alarm clock and determine the challenges they experience
with these clocks.
After analyzing the data obtained from the research, we learned that a lot of people
today are experiencing insomnia brought about by headaches or even stress. A lot of them are
also experiencing insomnia due to their partner’s snoring. As an example, out of the 78
participants who responded to the questionnaires, 70.5 percent reported that they had sleeping
problems. In a study conducted by Zailinawati, Mazza, & Teng (2012), 33.8 % of the general
population of Malaysia had insomnia, while 12.2 percent had chronic insomnia. This confirms
the prevalence of insomnia among the general population of Malaysia. Second, due to
inappropriate styles of sleep, a lot of people are experiencing neck or back pain, or even
headaches as they wake up the next day. The research showed that 76.6 percent of those
surveyed experienced either neck or back pain or headache the next day in the morning. From
the research, it was evident that the pillow products in the current market do not fit the needs of
the customers. While 48.7% of those surveyed reported having used a non-traditional pillow, a
large percentage of these also reported insomnia and headache, and back or neck problems
upon waking up.
In addition to insomnia and back and neck pain, the research also showed that a lot of
people are having difficulties waking up. Most of them do not like the jolting sounds of their
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alarm clocks. Research has shown that the jolting sound of the alarm can have a detrimental
effect on one’s health. In particular, it can be bad for one’s heart (Kalb, 2013). A lot of the
participants also reported having been woken up by their partner’s alarm clock while they did
not have an appointment. All these clearly showed that it is important to have a pillow product
that can help the user wake up gently, and without having an impact on his/her health. Further,
the research showed that a large portion of those surveyed belonged to the middle class, with
67.9% of them earning between RM4000- RM4999 per month. Yusof (2018) supports this,
noting that an increase in the middle-class population in Malaysia has been witnessed over the
years. According to him, Malaysia is among the countries with Asia’s largest middle class by
population shares. Others include Georgia, Azerbaijan, Kazakhstan, and Thailand.
Based on the research, the pillow buying criteria differs among different people. Many
people purchase a pillow based on its quality and price. 53.8% of the people surveyed said that
they purchased a pillow based on its quality, while 42.3 percent said that they bought a pillow
based on its price. Based on this, UrsPillow needs to ensure that the water Pillow is of high
quality, but try to price it a reasonable price level to avoid scaring the customers who prefer to
buy cheaper pillows.
c. The Internal Environment
Current Objectives, Strategy, and Resource Availability
UrsPillow has four major objectives. The first objective is to produce high-quality
products and to maintain the quality of these products as well as reach the ISO standards. The
second objective is to establish the awareness and image of the brand to the public. This is
especially because UrsPillow is a new venture in the market, hence it lacks brand awareness as
well as recognition. The third objective is to control the quality of the Water Pillow to ensure that
it satisfies consumers who purchase it. This will not only guarantee the company return
consumers but will also attract new customers to the company’s products due to positive
reviews from the satisfied consumers. The fourth objective is caring about the company’s
customers, as well as having a robust relationship with both customers and suppliers. To
achieve this, the company will try to provide high-quality products and services to customers to
ensure that it instills in them a positive mindset about Water Pillow, making them feel great
about the product.
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UrsPillow’s core selling strategy is locating our store at the Mid Valley Megamall in Kuala
Lumpur. According to Inn (2017), Mid Valley has approximately 30 million visitors every year, all
of whom spend their time shopping for different items at the mall. In addition, the population
around this area is very large, which increases the chance that people will see our store.
Another core strategy for the company is customer value. Here, the company will
provide the customers with excellent customer service in every phase of the production and
sales processes. To emphasize the quality of every pillow, every stage of the production will be
double-checked to offer better quality products.
Being a startup, UrsPillow does not have the resources required for its operations.
Therefore, every shareholder will be required to contribute RM 100,000 to start the business up.
These funds will be utilized in the setting up of the retail store and a manufacturing factory, as
well as purchasing all the required equipment.
Organizational Culture and Structure
UrsPillow employs a flat organization structure, which will be more decentralized to ensure
that both managers and staff take part in major processes of decision making, and that staffs
communicate as well as interact with the customers directly in order to get their opinions and
suggestions. The structure comprises of a general manager, a financial manager, an operations
manager, and a sales and marketing director.
The general manager is responsible for the entire strategic planning of the organization, and
the management of the tasks of the other managers. The sales and marketing director deals
with the trends in the overall market. The operational manager has the responsibility of dealing
with the daily operation processes, especially production. The financial manager is responsible
for finance-related activities such as company accounts, sales revenue, and budgeting among
others, and will also be responsible for the human resource department.
IV.
SWOT ANALYSIS
a. Strengths
1. Water Pillow is new and innovative; it provides solutions for people with insomnia, neck
and shoulder pain, and is designed to solve the problems associated with using an alarm
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clock.
2. Water Pillow comes with a user guide to make it easy for the user to learn how to use it
and understand its different components along with their role.
3. The product provides the best technology in the market. It is superior to the other products
because by just purchasing a single pillow, one can achieve numerous benefits, unlike
just purchasing a pillow with merely a device for tracking sleep patterns.
4. Water Pillow will help the user get asleep faster. When it is time to sleep, the cooling
system will gently start cooling down the pillow, which will naturally help the user initiate
sleep.
5. Water Pillow will help the user get more sleep. By adapting to the temperature under the
user’s head all through the night and allowing his/her body to cool, one will wake up less
over the night and get a deeper sleep.
6. Water Pillow will help the user get up refreshed. Using the app in the pillow, the user can
set up wake-up time, during which the pillow will slowly begin to warm up. This will send
signals to one’s body, allowing them to feel perfectly rested as well as refreshed
immediately they open their eyes.
b. Weaknesses
1. UrsPillow is a start-up in the smart pillow business. Keeping up with the already
established businesses may be difficult.
2. Because Water Pillow is new in the market, it may be difficult for some users to understand
its functions.
3. Being new in the market, the product requires intense advertising as well as promotional
activities. However, the company lacks sufficient funds since it is in the startup phase.
4. Water Pillow lacks a mature supply chain. Being in its initial stages of development, the
parts are sourced separately at consumer level costs. This increases production costs.
c. Opportunities
1. The market is extremely ripe with opportunity. The target population is large; 35% of
Malaysians experience insomnia. The population of people with sleep disorders is on the
rise today, and it is expected to increase in the future. In addition, the wellness wearable
devices markets is expected to grow rapidly.
2. After entering the market, UrsPillow can penetrate it easily since it is currently the sole
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provider of this type of smart pillow in the market.
3. By making a difference in the lives of people with an intense desire to get good sleep, the
company may create an extremely engaged customer base. This may result in word of
mouth advertising, allowing the viral adoption of the product.
4. When it comes to products offering solutions to both insomnia and challenges associated
with an alarm clock, the market may not have a clear leader.
5. There exists a strong need by sleep-deprived individuals to wake up feeling rested as well
as refreshed. As seen in the market research, a large number of people would want to try
out an innovation that can help improve insomnia and reduce neck/back pain and
headaches after waking up.
6. Today, the components of technology are trending downwards, which has allowed the
market for wearable devices to flourish due to a decline in costs.
d. Threats
1. Competition from more mature as well as recognized companies such as Getha. Because
the product is in its start-up phase, it does not have the brand awareness and recognition
enjoyed by its competitors. In addition, as of now, the company may earn profits since it
is offering a unique product in the market. However, in the long run, new substitute
products will enter the market and try to control it.
2. Some people may fear that the technology pillow is dangerous for their health. Therefore,
they may not know the usefulness of the product, and hence fail to purchase it.
e. Analysis of the SWOT Matrix

The strengths and opportunities of the company will be in matching its innovation with the
increasing need for sleep solutions for people with sleep problems, and the rising market
for the wellness wearable products. Water Pillow will satisfy this need by combining
temperature regulator technology with an app that can ensure that one wakes up feeling
refreshed and well-rested.

The market does not have several direct competitors, and the prices of technological
components are reducing as time goes by especially due to the increase in the number of
vendors. When combined, these two factors can give UrsPillow a strong position in the
market.

Even though UrsPillow has great innovations, it faces the risk of potential users rejecting
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the products due to fear of potential harm to their health. We need to educate users on
why they need the pillow, and why it does not have any harmful effect on their body.

Being at the start-up phase, UrsPillow should look for venture funding in order to meet its
manufacturing, advertising, and marketing needs among others.

Again, being at the start-up phase with no brand awareness and recognition, UrsPillow
should stay technologically relevant and continue offering high-quality products in order to
remain viable.
f.
Competitive Advantage and Strategic Focus
Some of the main competitors in the smart pillow market include Getha, Dreamland, and Sweat
Dream. All of them, however, produce normal smart pillows. Nothing is unique about their
products. Therefore, by offering a product with a temperature regulator and an alarm clock,
UrsPillow will be able to surpass its competitors in the market. This will be reinforced by the
customer value strategies that the company will employ, coupled with the use of technology to
maintain or increase the quality of the products. Even though the company is new in the market
and has low brand recognition and awareness compared to the rest, the uniqueness and highquality nature of the products offered, as well as high-quality services, are the key strategies
that it will use to establish an advantage in the market.
V.
MARKETING GOALS AND OBJECTIVES
The business plan for UrsPillow has four major goals. The first objective is brand
recognition and awareness. To be a successful start-up and accomplish a scalable growth,
people should be able to know who we UrsPillow is. We cannot merely depend on the product
selling itself, so we need to get out and ensure that target consumers hear us as much as
possible. The more people recognize our brand, the more likely we are to succeed.
The second goal is to become our consumer’s favorite provider of pillow products. After
brand recognition, the next step is to become the target customer’s favorite manufacturer of
pillow products. If the customers favor our brand, there will be high chances that they will buy
from us again, and that they will recommend our products to their friends, family members, etc.
The next goal of the business plan is to encourage our target market to try our products.
Humans are creatures of habit, and they make purchasing decisions on the basis of what they
are used to and trust too. A great way to achieve this objective is to encourage our potential
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customers to try our Water Pillow for free during the product launch. This will instill confidence in
our potential customers, increase our brand awareness, show our generosity and even
potentially make us receive feedback.
The last but not least business plan goal is to earn the trust of our customers. It is very
common to see a customer who likes a product, but he/she chooses to turn it down and instead
purchase his/her “old faithful” substitute. Through a positioning statement in which we highlight
proof as to why customers need to trust us and whey they should believe in our brand, we will
be able to earn their trust.
The beginning capital for UrsPillow is approximately RM 400,000. In the first year, the
company is expected to generate sales of RM 1,854,720, and a profit of approximately Rm
356,873. In the second year, it is expected to generate sales of about RM 2,040,430, and a total
profit of about Rm 542,177. The payback period is around 1.06 years.
VI.
MARKETING STRATEGIES
a. Target markets
Target market #1
Based on the analysis performed in the customer environment section of the report, we
chose our primary target market to be middle-income earners with insomnia, experience neck,
back or shoulder pain when they wake up or have difficulties waking up. From the research, we
found that a large part of the population is made up of the middle-class group, and Malaysia has
experienced a steady increase in the middle-class group in the past years. We also found that
insomnia is high among this population, and a lot of them experience problems when waking up,
do not like their alarm clocks, and also experience neck, and back pain as well as headache
upon waking up. This segment of the population, therefore, forms a majority of our potential
customer population since the Water Pillow offers solutions to these problems. On top of that,
the middle-class population has a good consumption as well as high expenditure on health and
home furnishing products. They are also well-educated, and a lot of them have adequate
knowledge about their health problems and they are willing to spend on products that make their
health. All these factors make them an ideal target market for Water Pillow.
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Target Market #2
Our second target group comprises patients with insomnia as well as sleeping problems.
According to the customer environment analysis, 30 percent of the general population of
Malaysia has sleeping problems. The Sleeping Pillow can be customized to help directly
address the problems faced by this population. We will also look for a team of medical experts
to help choose the correct materials as well as fragrance to help solve such problems as stress
among them. According to a study by the American Academy of Sleep Medicine, one out of
every five people in Kuala Lumpur experiences a sleeping problem. In addition, in Kuala
Lumpur, lack of sleep occurs in about 30-50 percent of the population. As such, this population
is willing to purchase a product that can help ease their sleeping problems and improve the
quality of their sleep. This was confirmed by the research, whereby 92.3 percent of those
surveyed reported that they would use a water pillow to improve sleep/solve insomnia.
b. Marketing Mix
Products
UrsPillow’s main product is the Water Pillow, which has heat regulation features and
alarm clock to help the user wake up gently as well as refreshed. It helps solve insomnia and
other sleeping problems, neck pain, should pain and headache experienced by people when
they wake up and offers a solution to people who find it difficult to wake up in the morning.
Besides, the pillow can be customized to meet the specific needs of a specific client. These
attributes give the Water pillow the ability to not only meet but also exceed the needs as well as
expectations of different customers, and attract a lot of potential buyers. They are also difficult to
copy, hence the Water Pillow will have a competitive edge against its competitors.
Price
The cost of manufacturing one pillow, including the materials used will be about RM 150RM 200, depending on the size. Therefore, the price level of each pillow will be RM 300. This
will help cover the costs of the temperature regulatory system, the app, the pillow material, and
the pillow design and fragrance park in the case of the customized pillows. Overall, our product
is extremely unique, and by setting this price, the company can easily recover from start-up as
well as promotional costs.
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Place
To increase our chances of reaching the target market, we plan to open a store at Mid
Valley Megamall in Kuala Lumpur. Being one of Kuala Lumpur’s largest as well as hottest
shopping complexes, Mid Valley has a wide variety of trendy fashion shops and a variety of
delicious foods. This shows that the area can attract our potential customers, who will ultimately
be able to locate our store. In regards to the customized Water Pillow, the distribution strategy
will entail taking the measurement, shape, design as well as material based on the customer’s
preferences, and advising the customer to come to our shop to collect their product in three to
four days. If the customer is not available to collect his/her product, we will assign a third party
logistics firm to deliver the finished product to them. We will also offer the necessary return
channels for collecting products from unsatisfied customers.
Promotion
UsPilllow’s promotion strategy will specifically focus on stressing the price advantages
and special discounts. Being a unique product in the market, this will help encourage trials and
increase the usage as well as recognition rates among customers.
Sales Promotion
This will support the firm’s long-term goals of creating awareness of the brand and
maintaining continuous purchases. Sales promotions will be organized during the opening day,
as well as during the mega sales period, and it will emphasize the price advantages and offering
of special discounts. Through the sales promotion, the company will be able to increase its
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sales. As the new unique and customized products in the market, this will encourage trials, and
ultimately high usage rates among customers.
Exhibitions and Fairs
These are customer-oriented events in which all leading local exhibitors in a specific
industry are clustered on a cost-effective platform. In particular, we will join the Malaysian
Furniture Fair and the Malaysian Furniture and Furnishing Fair. These will give us a great
opportunity to both local and foreign consumers who have a habit of buying furnishing and
furniture products and showcase our products to them. This will also help increase the
recognition and awareness of our brand. Here, we will utilize a bundling package, whereby the
products will be sold to the consumer at a special price or even an extra value.
Promotional Gift
UrsPillow will take on a promotional gift method, which will entail giving out free pillows
during the beginning and the end of the promotional period. This will help establish a
relationship between the company and its customers. It may also help instill positive perception
about the products in the consumer.
Website
We will develop a website for the company, where more information and current news
about the products will be distributed. Here, the different aspects of the product, the company
contacts and address, and the impact that our pillows have on the user will be included. Since
internet users in Malaysia are on the rise and a lot more people are learning how to use the
internet day by day, this will be an opportunity for us to meet our potential customers more
easily and ensure that they are aware of the different products and their description.
Advertising will be done on radio, TV, social media and through the placing of ads on blogs
and on the sides of buses.
c. Branding and Positioning Strategy
A competitive analysis of the pillow industry shows that the leading providers are Getha,
Sweet Dream, and Dreamland. UrsPillows will compete directly with these firms on pillow
customization, accessibility, brand name recognition, product uniqueness, quality of products
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and professional knowledge. UrsPillow intends to establish its brand as well as an advantage in
terms of pillow uniqueness and pillow customization. This will provide the company with a great
point of differentiation of both goods and services in the current market, and also help in the
satisfaction in regards to the different needs as well as wants when it comes to a pillow product.
Since UrsPillow is new in the pillow business and is at its initial stages, it has both low
accessibility and low brand recognition and brand awareness when compared to its competitors.
Nevertheless, with the uniqueness and customization of our products, we will be able to
produce pillows that meet the needs and requirements of our products. Compared to our
competitors, our prices are high, due to the costs required in the production of the products, and
hiring of medical experts to help with the customization services.
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figure1: Positioning map
Pillow
Uniqueness/customizatio
n
High
UsPillow
Getha
Sweet Dream
Dreamland
Accessibility
Low
High
In the figure above, UrsPillow and the three of its major competitors are positioned on
the basis of pillow uniqueness and customization, as well as accessibility. UrsPillow core focus
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is on the provision of unique pillows, and customized pillows based on material, size and shape
and healthy requirements based on the suggestions of a medical expert. This product line will
attract consumers with special unmet needs. The accessibility of our products is low since we
are in the startup phase. For this reason, we will create a website to distribute more information
about our products to the market.
VII.
MARKETING IMPLEMENTATION
a. Activities, Responsibilities, Timelines, and Costs
After the arrival of the stock, a retail store and a manufacturing factory will be set up.
Following this, the marketing activities will commence. This will include the creation of a
company website, the creation of social media profiles and hiring of a social media expert,
setting aside a portion of the pillow products for additional testing, advertising, and promotion
implementation, engaging medical experts to enhance the sleep analytics of the products, and
analysis of the different metrics to determine customer satisfaction.

On February 26th, appoint a monitoring team to monitor the tasks and report accordingly.
This will be the responsibility of the general manager. Every person in the monitoring team
will have a specific activity to monitor.

On March 1, commence activities to build the brand’s image through the creation of a
website. This will be the responsibility of the financial manager, who will hire a low-cost
design company along with a website developer to get the basic brand image of the
company hammered out. On this website, the brand logo will be included so as to unify
the message and delivery. The website will be prepared with simple e-commerce solutions
to allow the easy taking of pre-sales.

On April 1, create social media profiles for the company on multiple social media platforms.
Next, a social media engagement expert will be hired. This, again, will be the responsibility
of the financial manager. Even though a lot of duties can be handed off to the sales
manager, the consultant has a huge online presence and a deep understanding of how to
garner clicks-through as well as sales.

On April 10, implementation of the promotion and advertising activities by the sales team.

By June 1, when the production is ongoing, set aside a portion of the products for extra
testing. This will be the responsibility of the Research & Development team. Is addition,
some samples will be sent to blogs in our target list for review. This will be a way of growing
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exposure, and a cheaper method of gathering more attention as well as direct exposure
to the media.

By October 1, engage different medical experts to enhance the sleep analytics of the pillow.
These experts will also provide more meaningful, expert recognition in the product’s value
in the marketing materials, which will not only add legitimacy but also enhance the whole
brand.

By December 10, determine customer satisfaction levels by analyzing the number of
preorders, referral rates, recommendations, social media following, returning website
visits, positive reviews, social engagement, customer sentiments, direct website traffic,
blog shares, and trial requests. This will be the responsibility of the director of sales and
marketing.

VIII.
Overall, all these activities will cost approximately RM 50,000.
EVALUATION AND CONTROL
a. Evaluation of the Business Plan

There are various ways through which the business plan will be measured and evaluated.
The first method will be through the return on investment. In this, the idea will be to check
whether the funds put into the business plan have generated any change in profits as time
goes by.

The second method will be reviewing the number of sales. This will be the fastest way of
determining whether the plan is working. Even though our business is a startup, taking
into account the raw numbers will greatly show when the business plan is having any
positive impact on our sales.

The third method is through customer response and reactions. Through general customer
service feedback as well as online commentary, we will be able to determine the kinds of
marketing campaigns that have the largest impact.

The last method is through the measurement of the expansion of our marketing reach.
After some time, we will measure whether our marketing reach is expanding. Signs of this
include marketing budget expansion and the reach to a new region by way of natural
growth or customer recommendation.
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b. Formal and informal controls
The suggested performance standards and financial controls include:

The total budget for website creation, web hosting, and social media management, further
testing of samples, customer trials, medical expert consultancy, and analysis of customer
satisfaction should take approximately 70 percent of the financial year’s annual budgeting.

The breakdown for this will be 20 percent for the web creation and web hosting, 20 percent
for further tests, 10 percent for customer trials, 10 percent for medical expert consultancy,
and 10 percent for customer satisfaction analysis.

The monitoring team is responsible for monitoring the progress of the assigned tasks, but
the project team is responsible for reporting everything including the financial expenditures.
The sales and marketing director will create as well as provide a standardized reporting
form.

The sales and marketing director is also in charge of the observance of the budget of the
project and will report any extras on the proposed budget to the general manager every
week.

The products we offer will be reviewed on a regular basis to determine whether they are
profitable.
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References
Gutierrez, A. P., Ponti, L., Herren, H. R., Baumgärtner, J., & Kenmore, P. E. (2015).
Deconstructing Indian cotton: weather, yields, and suicides. Environmental Sciences
Europe, 27(1), 12.
Index of Economic Freedom. (2019). “Malaysia.” Retrieved from
https://www.heritage.org/index/country/malaysia
Inn, K, T. (2017). The success story of IGB Reit. Retrieved from
https://www.thestar.com.my/business/business-news/2017/09/04/the-success-story-ofigb-reit
Kalb, C. (2013).Your Alarm Clock May Be Hazardous to Your Health. Retrieved from
https://www.smithsonianmag.com/science-nature/your-alarm-clock-may-be-hazardousto-your-health-164620290/
The World Bank. (2019). “The World Bank in Malaysia.” Retrieved from
https://www.worldbank.org/en/country/malaysia/overview
Wok, S., & Mohamed, S. (2017). Internet and social media in Malaysia: Development,
challenges and potentials. In The evolution of media communication. IntechOpen.
Xinhua. (2018). Political stability to be prime factor for investors in Malaysia: S&P. Retrieved
from http://www.xinhuanet.com/english/2018-09/05/c_137446842.htm
Yusof, A. (2018). Growing middle class and Malaysia’s economic progress spur air travel
growth. Retrieved from https://www.nst.com.my/business/2018/10/424844/growingmiddle-class-and-malaysias-economic-progress-spur-air-travel-growth
Zailinawati, A. H., Mazza, D., & Teng, C. L. (2012). Prevalence of insomnia and its impact on
daily function amongst Malaysian primary care patients. Asia Pacific family
medicine, 11(1), 9.
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APPENDICES
Appendix 1: Questionnaire
1. How much do you earn a month?
o
Below RM1000
o
RM1000- RM1999
o
RM2000-RM2999
o
RM3000-RM3999
o
RM4000- RM4999
o
Above RM5000
2. Do you experience insomnia?
o
o
Yes
o
Stress
o
Headache
o
Breathing problem
o
Others
No
3. Do you feel headache/neck pain/back pain when you wake up the next day?
o
Yes
o
No
4. How Important is having the right pillow to your sleep routine ?
o
Very Important
o
Sometimes
o
Pillow-Smillow I can sleep like a rock anywhere
5.
Please rank your pillow buying critera.
o
Price
o
Quality
o
Avaliablity
6. Have you tried a non traditional pillow ?
o
Microbead
o
Memory foam
o
Buckwheat
o
Other or N/A
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7. Why did you decide to switch pillows? Any negative experience?
o
Migraine pain, shoulder stiffness
o
My head is going down
o
Too high / too low3
o
Be Stuffy
8.
Do you have any experience with using water pillows?
o
Yes
o
No
9. How important is the quality of pillow to you?
o
Very important
o
Neutral
o
Not important
10. Can you use a water pillow which can improve your sleep/ solve your insomnia?
o
Yes
o
No
11. Do you have difficulties when waking up in the morning?
o
Yes
o
No
12. Do you use an alarm clock?
o
Yes
o
No
13. What are some of the things that you don’t like about your alarm clock?
o
I hate waking up to a jolting noise
o
My partner’s alarm clock wakes me up
o
I don’t like waking up to a loud noise
o
I like my alarm clock.
o
Other
Appendix 2: Data Analysis
Income
Frequenc
Percent
y
27
Valid
Cumulative
Percent
Percent
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RM2000-
5
6.4
6.4
6.4
13
16.7
16.7
23.1
53
67.9
67.9
91.0
7
9.0
9.0
100.0
78
100.0
100.0
Valid
Cumulative
Percent
Percent
RM2999
RM3000RM3999
Valid
RM4000RM4999
Above RM5000
Total
pain
Frequenc
Percent
y
Valid
Yes
59
75.6
75.6
75.6
No
19
24.4
24.4
100.0
Total
78
100.0
100.0
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Pillow buying criteria
Frequenc
Percent
y
Valid
Valid
Cumulative
Percent
Percent
price
33
42.3
42.3
42.3
Quality
42
53.8
53.8
96.2
3
3.8
3.8
100.0
78
100.0
100.0
Availabilit
y
Total
Right Pillow
Frequenc
Percent
y
Valid
Valid
Cumulative
Percent
Percent
Very Important
62
79.5
79.5
79.5
Sometimes
12
15.4
15.4
94.9
4
5.1
5.1
100.0
78
100.0
100.0
Pillow-Smillow I can
sleep like a rock
anywhere
Total
Tried Non-traditional Pillow
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Frequenc
Percent
y
Microbead
Valid
Cumulative
Percent
Percent
8
10.3
10.3
10.3
38
48.7
48.7
59.0
3
3.8
3.8
62.8
Other or N/A
29
37.2
37.2
100.0
Total
78
100.0
100.0
Memory
foam
Valid
Buckwheat
Insomnia
Frequenc
Percent
y
Yes (stress, headache,
Valid
Cumulative
Percent
Percent
55
70.5
70.5
70.5
No
23
29.5
29.5
100.0
Total
78
100.0
100.0
breathing problem,
others)
Valid
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Why I switched Pillow
Frequenc
Percent
y
Migraine pain, shoulder
Valid
Cumulative
Percent
Percent
59
75.6
75.6
75.6
9
11.5
11.5
87.2
Too high / too low
10
12.8
12.8
100.0
Total
78
100.0
100.0
stiffness
Valid
My head is going down
Experience with water pillow
Frequenc
Percent
y
Valid
Valid
Cumulative
Percent
Percent
Yes
26
33.3
33.3
33.3
No
52
66.7
66.7
100.0
Total
78
100.0
100.0
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Importance of the quality of pillow
Frequenc
Percent
y
Very
Valid
Cumulative
Percent
Percent
50
64.1
64.1
64.1
19
24.4
24.4
88.5
9
11.5
11.5
100.0
78
100.0
100.0
important
Neutral
Valid
Not
Important
Total
Water pillow to improve insomnia
Frequenc
Percent
y
Valid
Valid
Cumulative
Percent
Percent
Yes
72
92.3
92.3
92.3
No
6
7.7
7.7
100.0
78
100.0
100.0
Total
Difficulties in waking up
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Frequenc
Percent
y
Valid
Valid
Cumulative
Percent
Percent
Yes
71
91.0
91.0
91.0
No
7
9.0
9.0
100.0
78
100.0
100.0
Total
Use of alarm clock
Frequenc
Percent
y
Valid
Valid
Cumulative
Percent
Percent
Yes
75
96.2
96.2
96.2
No
3
3.8
3.8
100.0
78
100.0
100.0
Total
Challenges with alarm clock
Frequenc
Percent
y
33
Valid
Cumulative
Percent
Percent
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I hate waking up to a
39
50.0
50.0
50.0
20
25.6
25.6
75.6
14
17.9
17.9
93.6
5
6.4
6.4
100.0
78
100.0
100.0
jolting noise
My partner’s alarm
clock wakes me up
Valid
I don’t like waking up to
a loud noise
I like my alarm clock
Total
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