Why we choose this business?

The Malaysian government currently has a cartographic agency known as JUPEM (Jabatan Ukur dan Pemetaan - Department of Survey and Mapping). This government agency conducts detailed topological and street surveys; data from these surveys are used to produce various maps (such as cadastral, topological, political maps, street maps and more).Unfortunately, due to limitations such as equipment, manpower and funds, JUPEM is unable to conduct regular map updates. Updates are only published every 2 years or sometimes even longer. Also, as JUPEM is required to handle various mapping requirements for the entire Malaysia, it does not have the resources to produce detailed street maps that meet the demands and requirements of consumers and businesses. Realizing the fact that there is increasing demand for accurate street-level maps, especially with the popularity of online mapping and navigation systems, and that at the moment no single company in Malaysia provides street-level mapping that meet or surpasses the stringent requirements imposed by online mapping service providers and navigation system manufacturers, Navi & Map would be establish as a joint-venture company between Sojitz Corporation of Japan and Mapping Experts Sdn. Bhd., a private equity investment company with business interests in the automobile, property, plantation and retail industries.

Business Description
Navi & Map Sdn. Bhd. would be Malaysias fully integrated mapping data provider. Navi & Map would produces and publishes GPS-referenced maps in various formats and projections, which will be used for various applications including GIS (Geographical Information Systems), business intelligence, tracking services, online mapping and navigation. Navi & Map also will produces street directories, folded and customized maps, and provides services such as customized mapping for various corporate clients and government/municipal agencies.

Geographical Markets
Navi & Map would be producing maps that are specific to Malaysia, including Sabah and Sarawak. However, the finished product would be sold in different markets, both locally and abroad. A summary of the geographical market for each product is as follows:

Street Directories Local (Malaysia) Neighboring Countries (Singapore, Thailand) Foreign 60% 30%

Commercial Sheet Maps Local (Malaysia) Neighboring Countries (Singapore, Thailand) Foreign Customized Sheet Maps Local (Malaysia) 100% Local & Foreign 50%

10%

30%

20% Digital Maps 100%

Marketing & Communications Street Directory

Product Profile
The Street Directory would be the companys most visible product. The maps will contain within the Street Directory is a physical representation of a fraction of the companys extensive map database.
Unique Selling Proposition
The Street Directory series will provides detail coverage for major cities in Malaysia. It will contains a comprehensive index, listing over 35,000 roads and streets, as well as buildings, point of interests and house numbers. Maps in the Street Directory will be GPS-referenced for accuracy, and printed in full color for ease of use and visual clarity. The product will be designed to fit in a car glovebox compartment without sacrificing legibility or map detail.

Target Market
Across demographic classes; usage will not be limited to professionals, managers, executives and businessmen, but also bluecollar workers, housewives and students. A secondary market for the Street Directory will be the businesses. Businesses can advertise on the Street Directory and point out their premise location within the Street Directory.

Sales Channels
Navi & Map will be publishing 100,000 copies of the Street Directory, which will be made available at bookstores, news stands, touristfrequented areas and appointed sales agents. The Street Directory will also be sold online via online book retailers such as amazon.com and barnesandnoble.com
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Marketing Mix: Price and Promotion

Pricing Concept
The product must be affordable enough to be owned by taxi drivers and delivery/courier personnel. Depending on content (i.e. number of pages), the product will be priced between RM18 to RM35.

Setting the Price

PRODUCT PRICE (per unit, RM) Item 35.00 Cost per unit (RM)

Promotion
As the product would be the most visible product produced by the company, promotional and advertising activities for the product would be crucial. The promotional and advertising objectives are to:
Survey & data collection Map Digitizing Design & Layout Production Sales & Marketing Distributor Margin TOTAL COST (RM) GROSS PROFIT (RM) 6.00 3.50 7.00 21.50 13.50 5.00

Create product awareness, which would translate to sales of the Street Directory and increased advertising within the Street Directory pages. Build the companys profile as a mapping provider. The Street Directory is one of the few tangible company products that are made for the mass market. The quality of maps and information in the Street Directory would reflect the work quality of the company. Promote usage of the Street Directory. The product will be positioned as useful and indispensable as it saves time and reduces stress; the customer would know where they are going and how to get there.

Marketing Mix: Promotion

Advertising The following media mix will be used for promotional activities: Magazines Full page, full color advertisements on magazines that rate the highest in the respective demographic: expatriates and housewives, young adults (21-35), PMEBs and motorists. Out of Home Sponsoring maps in LRT stations (based on the Street Directory design) which depict the area surrounding the LRT station. These maps serves as an example or excerpt from the Street Directory, with a caption encouraging people to buy the Street Directory for more details and wider coverage area. Advertising on toll-barriers/media boxes, especially at toll booths entering a city that has a Street Directory already published. Point of Sale Posters, hanging mobiles, buntings and standees at point-of-saleRadio Time slots to be allocated to promote the Street Directory, particularly during the product launch period and during holiday seasonE-mail Blasts & Direct MailMedia kits are sent to advertising agencies to promote the Street Directory as a viable advertising medium for their clients

Posters

Point-of-Sale items (wobbler & standee, top and middle), Media Kit (bottom)

Marketing Mix: Place

InternetThe companys website will be enhanced to include
interactive tutorial/lessons on how to use the Street Directory.
Geographical Market % of sales Sales Channel/Availability

Ads on Google to promote the Street Directory when selected

keywords are entered for a Google search.
Local (Malaysia) 60% Bookstores News stands Convenience Stores Petrol Stations Corporate Purchases

Place (Distribution)
The Street Directory will be sold at brick and mortar bookstores such as Kinokuniya, Borders, MPH, Popular and more, news stands, convenience stores and tourist-frequented areas. To facilitate product distribution, the company will appoint a distributor with presence in Malaysia, Singapore and Thailand. The Street Directory will also be sold online through online bookstores such as amazon.com and barnesandnoble.com

Neighboring Countries (Singapore, Thailand)

30%

Bookstores Petrol Stations/Convenience Stores near Malaysian border Online

Foreign

10%

Online

The company would also solicit sales by directly approaching companies that would have a need for Street Directories. These companies would enjoy discounts on volume purchases, with the option of customizing the front and back cover of the Street Directory to match their corporate/brand visual identity.

Marketing & Communications Sheet Maps

Product Profile
Sheet Maps will provide the greatest flexibility in terms of size, design, map coverage area, and the information contained within the map.
Unique Selling Proposition
Commercial sheet maps will provide comprehensive and up-to-date street level information, including information on tourist attractions and point of interests. Map contents include shopping malls, tourist attractions, places of interest, hotels, integrated transit network, embassies, hospitals and clinics. For quick reference, there will be an index for streets, hotels and useful phone numbers. Customized sheet maps, as the name suggests, can be customized limitlessly. Sheet maps can be produced in any size, featuring street-level maps of any area or a combination of areas, with the requested information or data shown. All maps will be GPS-referenced for accuracy, and printed in full color for ease of use and visual clarity. Commercial sheet maps will be designed to be easy to use and should easily fit in a pair of jeans back pocket.
Commercial sheet maps

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Product Profile
Target Market
Primary market for commercial sheet maps would be tourists (local and foreign) and motorists. For customized sheet maps, the target market would be Government agencies such as Tourism Malaysia and local councils such as DBKL, as well as corporations. Businesses are also targeted to take up advertising space in selected sheet maps. Sheet maps are a perfect platform for cost-effective, localized advertising. This is because maps are a constant source of reference, which translates to multiple impressions. Maps are also kept longer by the buyer compared to newspapers or magazines. The maps wide circulation ensures that the advertisement reaches out further geographically.

Sales Channels
Navi & Map will be publishing 100,000 copies of the commercial sheet map for various areas. These maps will be sold at major book stores, newsstands, hotels and convenience stores. Sheet maps will also be sold online via online retailers such as amazon.com and barnesandnoble.com, and on travel/backpacking websites that feature an online store.

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Marketing Mix: Product

Product Concept
A full-colored map that is fully customizable to meet the needs and specific requirements of the customer. Commercial sheet maps would contain information that would be of interest and use to tourists, such as shopping malls, tourist attractions, places of interest, hotels, embassies, hospitals and useful phone numbers. The product must be pocket-sized, or can be folded to fit in a pocket. Thematic maps (such as the Food Guide and Golf Course maps) would be produced as well. Customized sheet maps would be tailored to meet the customers requirements. Customers can define the size, format, whether the product needs to be folded, rolled or wall mounted, and even the material that the map would be printed on. Customized maps would contain information that is selected by the customer from Navi & Maps database of 130 different information categories.
Month

Product Development Timeline

Commercial Sheet Map Customized Sheet Map

2009
1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Kuala Lumpur & Klang Valley (5 editions) Kuantan, K. Terengganu & Kota Bahru Kuching & Kota Kinabalu Ipoh, Alor Setar, Georgetown & Kangar

2010
1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Malaysia Highway & Federal Roads Golf courses in Peninsular Malaysia Johor Bahru, Seremban & Bandar Melaka Malaysian Food Guide

throughout the year

2011
1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Kuala Lumpur & Klang Valley (5 editions) Kuantan, K. Terengganu & Kota Bahru Kuching & Kota Kinabalu Ipoh, Alor Setar, Georgetown & Kangar

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Marketing Mix: Price and Promotion

Pricing Concept
For commercial sheet maps, the product must be priced at or below RM10. It must seem very affordable that the customer would not think twice about buying the product (compulsive buy), especially when traveling. For customized sheet maps, the product price would be calculated based on the production cost and/or contracted value.

Setting the Price

PRODUCT PRICE (per unit, RM) Item Survey & data collection Map Digitizing Design & Layout Production 2.00 1.50 1.70 6.40 3.60 1.20 10.00 Cost per unit

Promotion
Sheet maps would be the key product in securing other contracted mapping projects, whether printed or digital. The success of this product will also pave an opportunity for Navi & Map to demonstrate the viability of printed maps as an advertising medium; it is hoped that advertising and media agencies would take note of mapvertizing and consider it as an effective advertising medium for their clients. To summarize, the promotional and advertising objectives are:

To create product awareness and promote its usage, which would translate to sales of the sheet maps and increased advertising in sheet maps. To demonstrate the flexibility of Navi & Map production processes, which allows the customer to specify exactly what he/she requires, including the information that goes into the map. Eventually, to increase advertising revenue and viability of the product as an advertising medium. Sheet maps have multiple impressions as it is a constant source of reference, especially when traveling. Maps are also kept longer by the buyer compared to newspapers or magazines, and the maps wide circulation (e.g. the Tourist Map of Malaysia would be distributed in over 40 cities worldwide by Tourism Malaysia) ensures that the advertisement reaches out further geographically.
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Sales & Marketing Distributor Margin TOTAL COST (RM) GROSS PROFIT (RM)

Marketing Mix: Promotion

Advertising The following media mix will be used for promotional activities: Out of Home Sponsoring maps in LRT stations (based on the sheet map design) which depict the surrounding area. These maps serves as an example or excerpt from the commercial sheet map, with a caption encouraging people to buy the sheet map for more details and wider coverage area. Advertise on customized sheet maps that will be produced by Navi & Map and displayed in public places or distributed to the public. For example, the DBKL project (following pages) is a perfect opportunity to advertise the sheet map capability, while simultaneously increasing the companys profile at no media cost to the company. Point of Sale Posters, wobblers, hanging mobiles and standees at point-of-saleRadio Time slots to be allocated to promote commercial sheet maps, particularly during the launch period of a new edition and during holiday seasons when traveling is at its highest. The sheet map can also be tied-in with a national campaign. For example, tying in sheet maps with CutiCuti Malaysia or the Malaysian Year-End Sale to help people find the best places for a holiday or the location of shopping malls. E-mail Blasts & Direct MailMedia kits would be sent to advertising agencies to promote the commercial sheet map as a viable advertising medium for their clients, and customized sheet maps as a branding and identity-building platform.Internet Ads on Google to promote the commercial and customized sheet maps when selected keywords are entered for a Google search

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Marketing Mix: Place

Place (Distribution)
The commercial sheet maps would be sold at major bookstores such as Kinokuniya, Borders, MPH, Popular and more, news stands, hotels, convenience stores and tourist-frequented areas. To facilitate product distribution, the company will appoint a distributor with presence in Malaysia, Singapore and Thailand. The sheet maps would also be sold online through online bookstores such as amazon.com and barnesandnoble.com, and on travel/backpacking websites that feature an online store. The company would also solicit sales by directly approaching companies that would have a need for customized sheet maps. These are prospects for long-term contractual projects that would prove to be more profitable in the long run.
Geographical Market % of sales Sales Channel/Availability

Local (Malaysia)

50%

Bookstores News stands Hotels Convenience Stores Petrol Stations Tourist Info Centers/TouristFrequented areas

Neighboring Countries (Singapore, Thailand)

30%

Bookstores Petrol Stations/Convenience Stores near Malaysian border Online

Foreign

20%

Online

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Marketing & Communications Digital Maps

Marketing Mix: Product

Product Concept
Digital map data that would be used for specific purposes. The actual product (i.e. the digital map) would be produced by combining different layers of information which will form the complete digital map as specified by the clients requirements. The actual product will be delivered to the customer by e-mail, on a CD/DVD/hard disk, or uploaded to a server.

Product Development
Each product will has a different development timeframe, depending on the client requirements and data complexity. Data that forms the different layers of information will be routinely collected by surveyors. The same dataset will also used to produce printed map products.

Producing a Digital Map

Produce map by selecting and combining layers Client provides requirements and specifications
Road Network, Buildings, Points of Interest, Waterway, ...

Road Network Layer

Point of Interest Layer

+=
Buildings Layer Waterway Layer

Complete map (digital map product)

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Marketing Mix: Price and Promotion

Pricing Concept
The product would be priced based on the number of layers requested by the customer and data complexity. If the data required by the customer is not available within the 130 layers, Navi & Map would provide data collection and digitizing services to produce the required data layer.

Setting the Price

PRODUCT PRICE Item from RM500,000 onwards Cost per unit (RM)

Promotion
As the product would be targeted to businesses and government agencies, personal relationship building will be the key. Customers need to be convinced by successful case studies, demonstrations and appearances in high-profile trade shows. Therefore, the objective are as follows:

Basic Map Layer

280,000.00

Additional Map Layers (each)

20,000.00

Production

60,000.00

To create awareness of the digital map product range and the map data quality. To build long term relationships with prospective clients.

Sales & Marketing

20,000.00

TOTAL COST (RM)

380,000.00

Customers purchasing digital maps from Navi & Map are entitled to receive annual updates for the layers that they have purchased by subscribing to the update service. Each layer update costs between RM3,000 to RM10,000 per year, depending on the amount of new data. Subscription is free for the first year.

Subscription (per layer)

between RM3,000 to RM10,000 per year

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