Marketing Plan for Malaysian SMEs: Analyzing Trends and Dynamics

Importance of SMEs in the Malaysian economy

ASSIGNMENT BRIEFING

 

Malaysian Small Medium-sized Enterprises (SMEs) which comprising of 98.5% of the total business community are key players and vital segment of the country's economic development. In Malaysia, SMEs contribute more than one-third of our economy. In 2017, SMEs contributed RM435.1 billion to the economy with a higher GDP growth of 7.2% against 5.2% in 2016. As a result, GDP contribution of SMEs increased further to 37.1% from 36.6% in the previous year. SME employment also grew at 3.4% during the year, resulting in SME contribution to overall employment at 66.0% an increase from 65.3% in 2016.

 

In 2017, a total of RM10.5 billion was spent to implement 168 SME development programmes which have benefited around 600,000 SMEs across all sectors.  However this is not enough, more need to be done in order to bring Malaysian SMEs to be at par with those in the advanced economies according to the Malaysian Prime Minister. For a start, the Government has re-established the Ministry of Entrepreneur Development to help spur the growth of SMEs.

 

The Government is keen to increase the competitiveness of SMEs so that they can actively participate in the global value chain as well as the Industrial Revolution (IR) 4.0 and digitalisation. Today, digitalisation is re-shaping businesses by undermining conventional business operation. For example,  Alibaba, the giant online retail platform holds no inventory. Similarly, the world’s largest ride hailing service, Uber, does not own a single vehicle. SMEs need to look at these new business models and re-position themselves to seize opportunities from the digital economy. Moving forward, SMEs also need to accelerate adoption of e-commerce as the potential market size is huge. In 2021, e-commerce revenues worldwide are projected to reach USD4.9 trillion. Currently,

Malaysian SMEs are still at the nascent stage of e-commerce and the Government is committed to provide the necessary support and the goal is to enable SMEs to expand their coverage, from targeting to serve the 16 million domestic digital customers, to reach out to the one billion digital customers worldwide.

 

Digitalisation will be the driver of future competitiveness and innovation. Hence, SMEs need to quickly adapt to the shifts in industry and the marketplace to continue remain relevant.

 

(Adapted from SME annual report 2017/2018).  

 

Besides seeing creativity and innovation being the fundamental of its success, the application of strategic marketing techniques like intelligent brand image management, customer loyalty programs, digital and viral marketing also important for the continuous growth of the Malaysian SMEs.  The dynamics in consumer buying power and demographics of the target market will make it essential as well for SMEs to continue their emphasise on strategic marketing to ensure survival in the ever increasing competitive market place.  


Your task is to select a SME company in Malaysia and then analyse, evaluate and prepare a marketing plan addressing the following tasks. You may refer to SME Malaysia directory and the attached appendix for your reference

 

 

Task:

· Research, analyse and evaluate the dynamics and trends within the marketing environment of your chosen SME company operating in Malaysia.

· Using appropriate sources, marketing theories and tools, evaluate the current marketing mix for your chosen SME  company.

· Suggest what marketing techniques you will use to enhance the competitiveness of your SME company. Your suggestions must be inspired and supported by appropriate theories and real-life/academic case studies.

Your analysis, arguments, findings and recommendations should be supported by theories, facts and figures published within academic books, journal articles, recognised business magazines and market intelligence reports.