WHAT PROPORTION OF OUR TARGET MARKET HAS USED A PRODUCT SIMILAR TO BEFORE?

Basically, supplying of construction tool & safety normally has high demand for every certain period in construction project per year. Besides, there are also demands from hardware shop and technical education institutions. From our observation and research, we have identified that almost every constructions project in Malaysia need these services in order to ensure the constructions building successful done. Not only that, the demand for this stuff is high demanding which is approximately to 100%. Especially for safety attire, it is the most important things to follow the rules of Occupational Safety and Health Administration (OSHA) which it is the main federal agency charged with the enforcement of safety and health legislation.

Nowadays, there are a lot of developments of technical education institutions in Malaysia. Our country wants to produce more technical student that can applied theoretical at site. Consequently, the markets of these services were increasing from time to time and the demand of this services also increase because of using the stuff especially for engineering institution. All of them also have been train about the using of safety attire at site. Thus, supplying of this stuff is very beneficial and has opportunity to challenges in market for our country.

Almost existed building of the development state has appointed shown that there will be increasing the construction surrounding the area. This shown, buildings construction increasing time by time due to increasing of people at the location. There are also many facilities need to be develop at the development state to increase their social economy. Therefore, our company needs to target the market of the new location especially at Bandar Indera Mahkota and Semambu location because there are the developments of social economy. Besides, we also focus on the technical institution at Pahang mostly Universiti Malaysia Pahang, Polytechnic Institution, Technical School etc. Maybe it is small percentages, but we still focus our services to Hardware shop because there are the one of location personal reference to get hardware stuff for own.

HOW MUCH OF OUR PRODUCT OR SERVICE MIGHT OUR TARGET MARKET BUY?

According to the pie chart, it shows the percentages of might be our sales for the first focus for our business is construction industries where will be conducted at Bandar Indera Mahkota and Semambu. This is because this location is the active of the construction project. Construction industries shows the big sales of our services might be buy where 61% of our gross sales. For construction industries, there many site projects still running on and still have demand for our stuff. So, we had assumed these sales based on the percentages of our target market and their frequently need for using the constructions tool is high demand.

For education institution sector, we expect our sales service will conquer 30% of our gross sales. Commonly, today have a lot of developments of technical education institutions in Malaysia mostly at Pahang such Universiti Malaysia Pahang, Polytechnic Muazam, UNITEN Muazam and not forget Technical School around Pahang. We will get the contract for our services to supply our tools for these education institutions. All these institutions need the application of the construction tools especially for civil engineering course. It is very important to fulfil of their syllabus requirements to understand the application of the theory at site by using the tools. By estimation, we had target for market selling of constructions tool and safety attire in education institution sector is 30%.

However, hardware we just only expected our sales service is 9% of our gross sales. This target market is including for whole hardware shop in Pahang Darul Makmur. There is still having the demands of using the hardware tool by personal at home. It is important to repair a certain damages part at house so hardware is quite ideal to achieve our target in supplying the constructions tool to the personal person.

HOW MIGHT OUR TARGET MARKET BE AFFECTED BY GOVERNMENT POLICIES?

Government policies are as a frame work in order to establish the business. In order to track the era globalization, the rules and the policies will change, indeed it will change the way of the business. Thus, the government policies will influence our target market which is Construction Company within the construction industry in Malaysia. Some of rules and regulations are:

a) Implement of OSHA
Construction industry always has the reputation of being among the most dangerous industries. In Malaysia, safety and health of workers have been became great focus in construction industry since the OSHA implemented in year 1994. OSHA requires employers to ensure the safety of all employees in the work environment. The laws and regulations were enacted to minimize the hazards of safety and health risks.
(In accordance with Clause 30, Part VII, OSH Act, 1994 [Act 514])

Every employer with 40 or more persons employed at the work place shall establish a Safety & Health Committee (SHC) at the place of work.

• Election or appointment of persons to the SHC, the power of the members of the SHC and any other matter relating to the establishment or procedure of the SHC shall be prescribed.
• Every employer shall consult the SHC with a view to the making and maintenance of arrangements which will enable him and his employees to co-operate effectively in promoting and developing measures to ensure the safety and health at the place of work of the employees, and in checking the effectiveness of such measures.

b) Act 520 ( by CIDB)
An Act to establish the Lembaga Pembangunan Industri Pembinaan Malaysia and to provide for its functions relating to the construction industry and for matters connected therewith.

c) CIDB's Policy Initiatives: Policy On Labour
CIDB's main aim with this policy initiative is to optimize resources by enabling domestic labour to acquire skills in more than 1 trade. Grade Contractors are required to upgrade their skills in order to remain relevant to the needs of the technology applied in Construction techniques, with priority given to the skills that add higher value to Construction Processes.

HOW MIGHT OUR TARGET MARKET BE AFFECTED BY LARGER SOCIOECONOMIC TRENDS?

Construction Industry.

The construction industry and the private sector assume an important role in generating wealth and improving the quality of life for Malaysians through the translation of Government’s socio-economic policies into social and economic infrastructures and buildings. Further, the construction industry creates a multiplier effect to other industries, including manufacturing, financial services, and professional services.


Figure 1.1: Further defines the construction industry value chain

Figure 1.1 further defines the construction industry value chain, where it involves multiple stakeholders at different stages of the value chain and key sectors that could leverage on the construction industry: opportunities include building and construction materials, tooling, heavy equipment and machinery, and financial services.

Therefore, the increasing of construction industry will increase the construction site although it will increase the size of target market in Malaysia.

HOW MIGHT OUR TARGET MARKET BE AFFECTED BY ECONOMIC EVENTS?

The construction industry plays an important role in any country’s economic development. It establishes the infrastructure required for socioeconomic development while being a major contributor to overall economic growth. Construction output is referred to as growth-initiating and growth-dependent (Drewer, 1980). As development progresses, the construction industry needs to satisfy the expansion and changes in construction demand. The most significant factor that affects all construction demand is the general economic situation and expectations about how it will change (Hillebrandt, 1993).

As Malaysia moves from developing country status towards a developed and industrialized nation as envisaged in Vision 2020, its construction industry will need to respond to the changes in construction demand. Any attempt to formulate strategies for fulfilling future demand would require a reliable understanding of the past and present scenario of the industry. The New Economic Policy (NEP) was launched in 1970 and construction activities expanded with the acceleration of public sector development expenditure, mainly in infrastructure projects. There was increased demand for residential construction and a high growth in private investment.

Therefore, according to the development of construction industries, our target market will be increased, based on the increasing of residential building’s construction and construction activities/ works. As our target market increased, we will enhanced our product’s quality and services towards our customers satisfaction

HOW MIGHT OUR TARGET MARKET BE AFFECTED BY DEMOGRAPHIC SHIFTS?

Among basic ways to analyze market is by using demographic segmentation which is by carrying out analysis based on a variable like age, gender, income etc of our target market. Our target market mainly divided into construction companies, technical educational institutions and hardware shop.

“The construction sector with its strong linkages was further boosted, following the announcement of several infrastructure projects under the 9MP. As of 30 June 2007, 26.0% of the RM44.5 billion allocation was spent with 29,913 projects in various stages of implementation. These include the Rawang-Ipoh Double Tracking Project, Integrated Transport Terminal in Bandar Tasik Selatan, widening of Penang Bridge and projects under the economic corridors. In addition, the sector was aided by more than 34,000 projects for building and maintenance of public infrastructure and small development projects in rural areas. Several Government initiatives enhanced the sector further. These include the exemption on Real Property Gains Tax, waiver of FIC guidelines on foreign ownership of properties above RM250, 000, incentives for build-then-sell concept as well as the establishment of OSCs for building and development planning approvals. Given these initiatives, the construction sector is expected to expand by 5.2% in 2007.”

“To improve access and quality of education, particularly in rural areas, the Government allocated an additional RM2.6 billion to improve infrastructure, including in Sabah and Sarawak. About 2.2 million students and 14,000 teachers in rural areas are expected to benefit from this additional allocation.”

Economic Report 2007/2008

Based on the report above, the construction development will contribute to the development of construction companies as well. Besides that, for educational sectors, government also allocated new development and construction of schools and educational institutions. As the construction company and educational institutions is one of our target markets, this situation will definitely expand quantities of our target market as well as the demands of products that we supply to our customers.