1.0 INTRODUCTION The name of this company is GOLDEN BROWN FRUITIES is the official sales and marketing for the high quality and the most reliable fruit among Malaysia market. Our business is focused in Kuala Lumpur. Our shop located in NU Sentral shopping complex at Lot 35,Level 5, Jalan Stesen Sentral 5, Brickfields,50470 Kuala Lumpur. We have registered 1 May 2015. Our business starting on 8 August 2015 and the symbol of number “8” are represent our 8 flavor of donut that we produced by our company. Golden Brown Fruities is under food and the reason why we choose this sector as our main business is because in Malaysia rich with various types of food from many country. However, our product is new and different flavor of doughnut. 1.1 FACTOR OF SELECTING DOUGHNUT BASED BUSINESS i. Doughnut is one of the most popular food in Malaysia market and suitable for every level of community and age. ii. Change perception of Malaysia people’s that doughnut can be appetizing than they expected by putting fruit taste in doughnut such as apple, strawberry, blackcurrant, banana, pineapple, durian, orange. iii. Become entrepreneur and just depend on choosing job in public or private sector 1.2 FUTURE PROSPECT OF THE BUSINESS
Transcript
1.0 INTRODUCTION
The name of this company is GOLDEN BROWN FRUITIES is the official sales and marketing for the high quality and the most reliable fruit among Malaysia market. Our business is focused in Kuala Lumpur. Our shop located in NU Sentral shopping complex at Lot 35,Level 5, Jalan Stesen Sentral 5, Brickfields,50470 Kuala Lumpur. We have registered 1 May 2015. Our business starting on 8 August 2015 and the symbol of number “8” are represent our 8 flavor of donut that we produced by our company.
Golden Brown Fruities is under food and the reason why we choose this sector as our main business is because in Malaysia rich with various types of food from many country. However, our product is new and different flavor of doughnut.
1.1 FACTOR OF SELECTING DOUGHNUT BASED BUSINESS
i. Doughnut is one of the most popular food in Malaysia market and suitable for every level of community and age.
ii. Change perception of Malaysia people’s that doughnut can be appetizing than they expected by putting fruit taste in doughnut such as apple, strawberry, blackcurrant, banana, pineapple, durian, orange.
iii. Become entrepreneur and just depend on choosing job in public or private sector
1.2 FUTURE PROSPECT OF THE BUSINESS
2.0 PURPOSE
1) The Entrepreneurs(GOLDEN FRUITIES DOUGHNUT).- To better under understand the purpose of the business and act as guideline to
manage the business effectively and efficiently.
2) Financial Institutions.- Assist and help the financial institutions to evaluate the capability of the proposed
project and provide loan for the business. Financial institutions involved in the business project is Maybank.
-3) Suppliers.
- Help convince suppliers of the viability of our business venture thus benefiting both the suppliers and our company in the long term business arrangement.
4) Company Staffs/Workers.- Help workers to understand the business’s goals and objectives and give a guideline
to them regarding their job duties and responsibilities.
5) Customers.- Persuade and influence our customer regarding the products being offered and
gives assurance and confidence to them to have business with us. In addition, main objective for development of GOLDEN BROWN FRUITIES company are first of all focus on Donut that are most various type of food among Malaysian people and make the productions and demands not stunted. We are very delightful to make donut popular not just bakery but also in frozen way. So people will be more interested to buy and taste our donut. With invasion of donut have fillings and flavor according to color with addition of chocolate chips, we confidently would like to sell them and feel that is very suit with Malaysian taste. We are also interested to compete with other donut’s company in Malaysian and make donut become the most popular Malaysian and try to make donut as famous food to other country besides Malaysia.
LOGO
Name Of Company : Golden Fruities Doughnut Industries.
Address : NU Sentral, No. 201 Jalan Tun Sambanthan,
-Golden Bown fruities a café retailer in Malaysia specialing in various doughnuts. The company is owned and managed by Golden Brown Fruities. Golden Brown Fruities doughnuts opened its first outlet and began trading in 2015. The first outlet located at NU Sentral in Kuala Lumpur, Malaysia. Weusing Maybank’s business loan to facilitate business become more easily. The official websire of Golden Brown Fruities is very well hidden, or it doesn’t exist, which make it more difficult to tell where Golden Brown Fruities are from, or any Golden Brown Fruities history for that matter. We are an establishment that is run and managed by Malaysians. We took upon ourselves to create a selection of food that would make Malaysia proud on the international scene.
Type : Private
Industry : Food and Beverages
Founded : May 2, 2015 in Kuala Lumpur, Malaysia
Headquartes : Kuala Lumpur, Malaysia
Area Served : Kuala Lumpur. Malaysia
Products : Doughnuts and Coffee
Parent Company : Golden Brown Fruities Sdn. Bhd.
Slogan : Bites of Health, Bites of Life
Website : GoldenBrownFruities.com
4.0 OWNERS OF PARTNERS BACKGROUND
General Manager (CEO)
Name : Nor Zakiah Binti Tumirin
Identity Number : 750614-04-5410
Correspondent Address : No17/9 Jalan Azzahra
Puncak Alam
Telephone Number : +6013-301 6941
Academic : Master In Financial Analysis Statement
Skills : Communication
Previous Business : Self-Service Laundry
Financial Manager
Name : Zubaidah Binti Zakaria
Identity Number : 721012-11-2050
Correspondent Address : No1, Jalan Petaling
Petaling Jaya 57090
Petaling.
Telephone Number : +60123645231
Academic : Bachelor In Statistical
Skills : Writing
Previous Business : None
Marketing Manager
Name : Nurhanis Shazreen Binti Mohd Redza
Identity Number : 700408-14-5971
Correspondent Address : No11 Jalan Pelita
Taman Pelita Indah
08000 Kedah Aman
Telephone Number : +6016-978 989
Academic : Diploma In Masscomm
Skills : Communication
Previous Business : None
SHARE : RM 15 000
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Operational Manager
Name : Nurshahida Hanis Binti Ariffin
Identity Number : 870609-12-6564
Correspondent Address : KG. Seberang Benoni,
Peti Surat 162,
89608 Papar Sabah.
Telephone Number : +6016-342 989
Academic : Sijil Pelajaran Malaysia (SPM)
Skills : Cook
Previous Business : Restaurant
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Human Resource Manager
Name : Nurul Atiqah Syuhadah Binti Muhd Isa Sham
Identity Number : 900809-01-6984
Correspondent Address : No.2 Jalan Permata,
Taman Indah Batu Pahat,
80777 Johor.
Telephone Number : +6018-647 3926
Academic : Diploma In Office Management
Skills : Writing
Previous Business : None
General Manager (CEO)
Name : Nor Zakiah Binti Tumirin
Identity Number : 750614-04-5410
Correspondent Address : No17/9 Jalan Azzahra
Puncak Alam
Telephone Number : +6013-301 6941
Academic : Master In Financial Analysis Statement
Skills : Communication
Previous Business : Self-Service Laundry
Financial Manager
Name : Zubaidah Binti Zakaria
Identity Number : 721012-11-2050
Correspondent Address : No1, Jalan Petaling
Petaling Jaya 57090
Petaling.
Telephone Number : +60123645231
Academic : Bachelor In Statistical
Skills : Writing
Previous Business : None
Marketing Manager
Name : Nurhanis Shazreen Binti Mohd Redza
Identity Number : 700408-14-5971
Correspondent Address : No11 Jalan Pelita
Taman Pelita Indah
08000 Kedah Aman
Telephone Number : +6016-978 989
Academic : Diploma In Masscomm
Skills : Communication
Previous Business : None
SHARE : RM 15 000
Operational Manager
Name : Nurshahida Hanis Binti Ariffin
Identity Number : 870609-12-6564
Correspondent Address : KG. Seberang Benoni,
Peti Surat 162,
89608 Papar Sabah.
Telephone Number : +6016-342 989
Academic : Sijil Pelajaran Malaysia (SPM)
Skills : Cook
Previous Business : Restaurant
Human Resource Manager
Name : Nurul Atiqah Syuhadah Binti Muhd Isa Sham
Identity Number : 900809-01-6984
Correspondent Address : No.2 Jalan Permata,
Taman Indah Batu Pahat,
80777 Johor.
Telephone Number : +6018-647 3926
Academic : Diploma In Office Management
Skills : Writing
Previous Business : None
5.0 LOCATION OF BUSINESS
Nu Sentral is a mixed development of a 7-storey shopping mall and a 27-storey office tower. This development is part of the multibillion 'Lot G' integrated development, which will also consist another 2 office towers and a boutique tower on the same parcel.
Nu Sentral is expected to be completed by mid-2009, and it is part of a KL Sentral master plan that shall be completed by 2014. It is a 51:49 per cent joint venture development between MRCB and PelaburanHartanahBhd (PHB).
Nu Sentrail Shopping Mall, which is claimed to be 3 times bigger than Mid Valley Megamall, will become Kuala Lumpur's first green shopping mall as it implements environmental-friendly and energy saving features and follows green building standards by Singapore's Building and Construction Authority (BCA) Green Mark and Malaysia's GBI. Not only in the building, it also features a rooftop entertainment concept which consists of a 2-acre sky park, a megaplex (cinemas) and leisure space for cafes, open air events and concerts – all above the mall.
The developer of Nu Sentral has just announced recently (August 2010) that Parkson department store and Golden Screen Cinemas (GSC) will become its anchor tenants, both taking up 140,000 sqft and 50,000 sqft of spare respectively. This partnership is accordance to its aim to become Kuala Lumpur's first lifestyle and transit hub. GSC will have 11-screen multiplex with a seating capacity of 1,780. Besides that, the developer claims that this shopping centre will attract 150,000 commuters and 20,000 office and residential population of KL Sentral.
Meanwhile, the 27-storey office tower at Nu Sentral consists of net lettable area of 450m000 sq ft. It is owned by PHB. According to PHB, it will be leased to a single tenant for en bloc.
Nu Sentral will be linked to StesenSentral, a monorail station and a LRT station as well as to nearby office towers to enable easy access for the patrons.
Property Details
• Name: Nu Sentral
• Address: KL Sentral, JalanTunSambathan, Kuala Lumpur
• Developer: A joint venture between MRCB and PelaburanHartanahBhd (PHB)
• Completion Date: March 2012 (estimate)
• Type: Shopping mall & Office tower
• Tenure: Freehold
• No. of Blocks: 2
• No. of Storey
• Shopping Mall: 7
• Office Tower: 27
• No. of Units
• Shopping Mall: Approx. 270
• Built-up
• Shopping Mall: 1.2 million sf (net let table area of 650,000 sf)
• Office Tower: 450,000 sf
Analysis
Kuala Lumpur is blessed with abundance of shopping centers, but still, we are lacking of the world-class ones compared to our neighbors, Bangkok and Singapore. Besides the likes of Suria KLCC, Pavilion KL, Mid Valley Megamall, Sunway Pyramid and 1 Utama, the others are just a stop centre for teenagers and youths to chill and hang out.
This upcoming Nu Sentral will surely be well-received and be at a class of its own. With state-of-art features and designs as well as great accessibility, it will be surely welcomed by everybody.
One of Nu Sentral KL advantage is its will become tourist and office worker focus because of the attractive building design and also the strategic location which is easy to find or go .
Our company target market is absolutely being the tourist, office workers, teenagers and also the residents surround us .
The amenities is Nu Sentral will be linked to Stesen Sentral, a monorail station and a LRT station.
6.0 MARKETING PLAN
6.1 PRODUCT DESCRIPTION
The Golden Brown Fruities Industries, is a company that focusing on the food and baverage in the area of Bangsar and in peninsular Malaysia. In addition, we can see that food business can make a lot of profit due to the demand of this product in the market. Doughnut can give satisfaction such as helping them feel the great and delicious taste of it. Understanding this needs and wants of the population in the Malaysia, especially in our target population which is the potential customer in that reside in the Bangsar area, we decide to make a business to fulfil the demands and needs of doughnut.
We also expands the business by selling the other side dish to fulfil our customer need and wants, for example many variety of doughnut, smoothies drinks and special dish. It also aims to meet the requirements from the lower level of income customers for example children to buy the products at the reasonable price.
Our stall had variety of choices of tastes in determine the customer want. It also focused on the type of doughnut, to provide and produce the suitable food product to the customer. Not only that, we are providing various type of drink. The Golden brown Fruities Industries has the product demanded by the customer.
Overall, we have a full confident that Golden Brown Fruities industries has a concrete foundation to be established and it can monopolize the food industry in the future if the business plan is done in effective and practical manner.
6.2 TARGET MARKET
Target market is group of customers that have needs and wants that can be satisfied by the business through the supply of good and services. A target market is a group of customers that the business has decided to aim its marketing efforts and ultimately its merchandise towards. It also can be defined as group of persons for whom a firm creates and maintains a product mix that specially fits the needs and preferences of that group. It is important for company in order to make proper marketing strategy and it will become easier to manage and run our business since we know the market and the demand customer. The marketing strategies can be done based on the demographic, geographic and psychographic.
Geographic segmentation.
Our company makes ain to target the customer from area of bangsar, kl sentral and all customers from peninsular Malaysia. Area or our premises consists of resident and offices area. This area is a congested area which consists of resident, worker and student. Therefore, we choose to start our business in this area since we believe that this area is suitable for the business. We also do believe that people from this area are afford to buy our product.
Demographic segmentation
Demographic factors are mostly concern about the characteristic of human population or specific part of population. Based on our product list plus with relevant information through study that we conduct, we found that our product will be market to customer based on certain element. Firstly, we target out customer to come from family, worker and students. Customers may buy Doughnut a gift to others or to their neighbours. Doughnut also can be done in weeding ceremony and for condolences. Next, out target market under demographic is to be supplier doughnut for any kind of birthday event. This is one of the ways to increasing and to provide variety service to our customer.
Pschographic segmentation.
People nowadays prefer something that are really unique and up to their preference. Customer loves buy product which can be made according to their personal taste. For instance, can buy doughnut for their families to fulfil craving. Meanwhile, for children they usually prefer healthy drink since maybe they are late for their emergency case when they are thirty. Our company will work hard to ensure that all of this request by the customer will be fulfilled and the customers are happy and satisfied over our food product.
6.3 MARKET SIZE
Fruities Doughnut is a food product. This is a new product that has been invented by Golden Brown fruities Industries which is the combination of dough and fruit. The business has identified its target market as the NU Sentral, shopping mall, kl central transaction and the residents of the housing area within 15 kilometres of the business location. There are two major market segments within the target area shopping mall. The first group consists of about 1000 office from up flow. The second group is made up of 3000 families living in the 15 kilometres radius area who like shopping there.
A survey of the two group showed that the students made purchases of about RM750 a week or RM 3000 a month while the families spent an average of RM 5000 a month on drink products. Based on this survey, Golden Brown Fruities Industries estimated the market size to be RM5000 from families.
The business then proceeded to estimate the potential sale for the year as RM 96000 (RM 8000 x 12 month). Before estimating the final market size, the business took into consideration factors that may affect sales such as the semester breaks and the month of Ramadhan. Using this information, Golden Brown Fruities Industries estimated the market size to be only RM50000.
6.4 COMPETITION
We have identified the competitors that exist on the market like DUNKIN’ DONUT, JCO, and BIG APPLE. Like others, GOLDEN FRUITIES DONUT (GFD) is made from Malaysian to Malaysian. Same taste like the existence popular doughnut, GFD now available in the market.
We have to compete with other established Golden fruties Donut which already had fixed
customers.
These are the competitors:
A. Dunkin Donut
B. Big Apple Donuts & Coffee
C. J.Co Donuts& Coffee
Here were the lists of indirect competitors which located near to lot shop.
A. Restaurant
Kenny Rogers roaster
Sushi king
B. Auntie Ann’s pretzel
C. Cool blog
6.5 MARKET SHARE
Before Entry of Golden Fruities Donut :
110,500
Big Apple 37% RM99900
J.Co 25% RM67500
Dunkin Donuts 23% RM62100
Donuts company 15% RM40500
100% RM270,000
After the Entry of Golden Fruities Donut
Big Apple 35% RM94500
J.Co 23% RM62100
Dunkin Donuts 17% RM45900
Donuts company 15% RM40500
Golden Fruities
Donut
10% RM27000
100% RM270,000
6.6 SALES FORECAST
This is important in order to measure the profit, loss or achieve breakeven by company. Besides that, it
also can be used to decide employment requirement levels.The expected sales of our product for our
customer are shown below:
MONTH TYPE OF PRODUCT UNIT PRICE PER
UNIT (RM)
VALUE (RM)
January Original
Fillings
Mix up
30,567
35,974
37,780
=104,321
RM0.20
RM0.30
RM0.40
RM 6,113
RM 10,792
RM 15,112
=RM 32,017
February Original
Fillings
Mix up
32,386
38,074
35,780
=106,240
RM0.20
RM0.30
RM0.40
RM 6,477
RM 11,422
RM 14,312
=RM 32,211
March Original
Fillings
Mix up
33,553
39,025
36,790
=109,368
RM0.20
RM0.30
RM0.40
RM 6,710
RM 11,707
RM 14,716
=RM 33,133
April Original
Fillings
Mix up
34,566
40,999
37,120
=112,685
RM0.20
RM0.30
RM0.40
RM 6,913
RM 12,299
RM 14,848
=RM 34,060
May Original
Fillings
Mix up
35,786
41,763
38,657
=116,206
RM0.20
RM0.30
RM0.40
RM 7,157
RM 12,528
RM 15,462
=RM 35,147
June Original
Fillings
Mix up
36,000
42,000
39,000
=117,000
RM0.20
RM0.30
RM0.40
RM 7,200
RM 12,600
RM 15,600
=RM 35,400
July Original
Fillings
Mix up
36,500
42,500
39,500
=118,500
RM0.20
RM0.30
RM0.40
RM 7,300
RM 12,750
RM 15,800
=RM 35,850
August Original
Fillings
Mix up
38,000
43,000
40,000
=121,000
RM0.20
RM0.30
RM0.40
RM 7,600
RM 12,900
RM 16,000
=RM 36,500
September Original
Fillings
Mix up
38,567
43,978
40,456
=123,001
RM0.20
RM0.30
RM0.40
RM 7,713
RM 13,193
RM 16,182
=RM 37,088
October Original
Fillings
Mix up
39,000
43,999
41,765
=124,764
RM0.20
RM0.30
RM0.40
RM 7,800
RM 13,199
RM 16,706
=RM 37,705
November Original
Fillings
Mix up
40,005
44,123
41,989
=126,117
RM0.20
RM0.30
RM0.40
RM 8,001
RM 13,236
RM 16,553
=RM 37,790
December Original
Fillings
Mix up
45,878
48,345
43,767
=137,990
RM0.20
RM0.30
RM0.40
RM 9,175
RM 14,504
RM 17,506
=RM 41,185
TOTAL
2013 RM 428,086
TOTAL
2014 RM 645,000
TOTAL
2015 RM 980,890
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SALES FORECAST FOR CURRENT YEAR, SECOND AND THIRD YEAR
A business marketing strategy is the single biggest factor which determines the success or failure of once business. Marketing strategy is a business's marketing policy, usually outlined in a formal marketing plan. The marketing strategy usually meshes with the company's corporate image and product brands. Marketing tactics are some of the activities that carry out the marketing strategy. Each promotion tool has unique characteristics and costs.
Marketing strategies are generally concerned with marketing mix principles, also known as the 4 Ps. It is used by business to assist in pursuing the business’s objectives.
The 4 Ps in marketing strategy are:
i. Product strategy
ii. Price strategy
iii. Place or distribution strategy
iv. Promotion strategy
6.7.1 Product/Services Strategy
Brand
Our product named Golden Fruities Doughnut which may refer to an informal manufacture which offering many type of doughnut . Just by recognize our brand, obviously people may know what we are going to serve for them when they come to our manufacture. In addition, our brand motto( )’ is an attraction because it will make people wondering what the difference between our doughnut and other doughnut in market.
Quality
Quality of a product can be a major positioning tool for a business. We can convince our customer due to our quality of product by maintaining the taste. For example, the taste of the ‘( )’ and the regular one will keep maintain and sustain whenever customer want.We also provide our product in frozen type. Nowadays we know that some supplier could be bias by cheating the customer on the quality of the ingredients being used. By using low quality ingredients which is cheaper than high quality ingredients and sell the product with unreasonable price in order just to gain more profit but forgot the quality of product. So our company has held a loyalty to customer by not cheating them and takes any advantages by using high quality ingredients at reasonable price. Other than that, for supplying we used effectiveness alternative by using machine to produce our product instead of hiring some employee. From that, our customer’s demand cannot be delay and punctually be on time.
Design
Product design or service package plays an important role in satisfying and delighting the target market. Our product can be classify as a food businesses and more related to service to the customer. In fact, we also supply our products to demander especially for occasion event. Our company have been trained to respect customer and set in mind that customer is always right. So we handle all the order with care to keep it from damage because we are supplying cakes which is in soft texture. Other than that, we also provide packaging doughnut which is usually make as a gift to the guest when there has any request. This can be called as a one package instead of us supplies the doughnut.
Packaging
• Protection
The primary function of packaging is to protect the product during the process of transportation, storage, display and sales until the product is ready for use. Since our products is going to be supply to certain of occasional events.Protection is one of the important thing to handle our product. So we choose particular box as our packager. In addition, it is easiest way for the customer to carry and satisfy when they wanted to buy our products.
• Product differentiation
As we know in market, each product has their own identities and specialties to attract customers. Include of their packaging and tasting. Same goes with our product. Since our product is doughnut, we know that all customers from other races in Malaysia can eat and accept our products because it is a typical doughnut but what we concerned is the quality of our products. Good packaging has the power to create instant recognition of the product. For the packaging, we have our own sticker that contain our company details such as address, contact number, e-mail, logo and halal certificate.
• Attractive to customer
The packaging of the product may be the sellers’ final chance to influence customers. The main packaging we used a high quality box. It is to make sure the quality of the products are in good condition and can be stored for a long period of time and can prevent doughtnut from get eaten by insects. Besides, for the request from customer for gifts or special occasions, we used colorful and variety design of box for the packaging. This is our strategy to attract customers’ attention.
Labelling
Labelling performs several functions such as identifying, grading, describing or even promoting the product. Label is one of the important thing that consumer have to take attention. Eventually, our product is classified as a food, so we must put the expiring date as guidance to consumer from eating a damage food that would be a food poisoning to consumer. In addition, we also put all the ingredients and content label at the package to ensure customers about the healthiest of our product which not be made from artificial ingredients. It is safe for the children to eat our products. The more important thing is the ‘halal’ logo that certificate from JAKIM which is can convince the consumer especially Muslim to purchase our products. This is to ensure all the ingredients that we are used is from food standardization and not made from non-halal ingredients that could be make sensitivity of Muslim consumer.
After sale services
Since our products is doughnut, the market sale is consistent because its food and usually ate by all customer from any races and ages. Our doughnut can serve as alternative food for tea time, supper and especially for people that do not have enough time for breakfast. This shows that our product is useful during urgent time and they need on-the-spot breakfast. So, they only buy instant food such as doughnut. Therefore, we provide many flavors to make varieties for customers.
6.7.2 Price strategy
The definite meaning of the price of a product or service is the amount of money charged to the customer for a particular purchase. Our financial objectives when talking about price will be coined on how much money we intend to make from a product, how much we can sell, and what market share will get in relation to competitors. Objectives such as these and how a business generates profit in comparison to the cost of production need to be taken into account when selecting the right pricing strategy. There are several pricing strategies, namely, cost based pricing, value based pricing, and competition based pricing. Each one of these has their own pros and cons based on the product or service offered itself. For our company, we have decided to imply the cost based pricing strategy.
Cost-based Pricing
Cost based pricing is the simplest and most commonly used pricing strategy. Cost-based pricing is based on the total cost of the product or service plus a standard mark-up. This involves setting a price by adding a fixed amount or percentage to the cost of making or buying the product. In some ways this is quite an old-fashioned and somewhat discredited pricing strategy, but like being stated above, it is still widely used. This is also one the factor why we chose this pricing strategy for our product, the most simplest but reliable and popular used even by big companies worldwide.
The mark-up is the profit margin that is desired from the sale of the product. The decision on the percentage mark-up is made based on certain factors. Firstly, we have to know the average profit margin in the industry for our product. For example, for our product which is a food product, the margin for food business is not less than 35% of the selling price. Secondly, we have to take into account the number and strength of competitors in the same area or same industry. For example, for our company, since we are competing with only two other competitors, even our company is a new company or the newcomer in the area, we may not have to reduce our price. Thus, how high should the mark-up of our product percentage be? That largely depends on the normal competitive practice in a market and also whether the resulting price is acceptable to customers.
An example of cost-based pricing, where a business wishes to ensure that it makes an additional profit on top of the unit cost of production is illustrated below:
Unit cost RM100
Mark-up 50%
Selling price RM150
Cost-based pricing is often used as a guide in pricing. The offering price is vice versa, may be lower or higher. This is also the result of other factors such as customers willingness to pay for the product or service, pressures other competitors, and the supply and demand factor. However the lowest price of our product is determined by the unit cost of the product. We have taken into consideration if the price lowers than the cost per unit will result in a loss for our company. We also chose this pricing strategy to utilize this strategy intelligently to penetrate the market. Besides that, we also confident that sales of our products can cover loss on the sales of the particular product. Other factors that can contribute to the pricing include economic conditions, government regulations, social concerns, and consumer groups.
The main advantage of cost-based pricing is that selling prices are relatively easy to calculate. If the mark-up percentage is applied consistently across product ranges, then the business can also predict more reliably what the overall profit margin will be. Some other advantages of the cost based pricing are in term of flexibility whereby we can add a different percentage to different product lines. Besides, if the costs of our product go up, it is easy to adjust the prices thus reducing the loss in a long run plus it is easy for our marketer to defend the pricing and last but not least it can suit a manufacturer with scalable production based on demand.
However, there are also disadvantages to this pricing strategy. Among the disadvantages are it ignores product demand or the influence price may have on demand and also what other competitors are doing with their pricing. Furthermore, the most obvious disadvantage of this strategy is if the costs of our product increase, so must the price. The name of this pricing strategy is self-explanatory where it is based on the cost of the product itself. That is why the cost of our product is directly proportional to the price of the product.
Another approach that we have taken into consideration is the pricing tactic as different tactics can help us attract more customers and maximize our profits. First, discounting offering specially-reduced prices can be a powerful tool. This could be a clearance discount to sell old stock, a discount for making multiple purchases of the same or similar products, or we could offer bulk discounts to encourage larger orders. We thought that this tactic will enable us to make more profit through lower costs.
Secondly, the odd value pricing or the psychological pricing. Using the tactic of selling products for RM 9.99 instead of RM10 can be useful if price is an essential part of customers buying decisions. Some customers perceive odd value prices like this as being more attractive.
Another tactic is the loss leader. This involves selling a product at a low or even loss-making price. Although we may not make a profit selling this product, we could attract customers who will also buy other, more profitable products.
. Next, the penetration. This tactic starts at a low price and gaining market share before competitors catch up. Once we have a loyal customer base, we should be able to find ways to raise prices later. This tactic seems very convenient to our company as we are trying to penetrate the market as a new company.
Lastly, the tactic of raising or lowering prices. We are well aware that there will be times when we need to change our prices. There are two key questions we will try to answer. First, what effect will the price change have on the volume of sales, and second, what will the effect be on the profit per sale? When we Increase the prices, we can improve our profitability even though our sales volume may drop. If we are increasing our prices, we will always explain to our customers why we are doing it. We can use the price change as an opportunity to re-emphasize the benefits we offer.
There are also ways that we can hide price increases. For example, we might introduce new, higher-priced products or services and make older, cheaper ones obsolete lower the specification and our costs while maintaining the same price but we will be aware that hiding price increases can risk adverse reactions from our customers if they realize what we are doing.
In contrast, the reducing prices, we know that we should never take the decision to lower prices lightly. Low prices often go hand-in-hand with poor-quality service. This is not the image we want to create for our business.
6.7,3 Distribution Strategy
For product-focused companies, establishing the most appropriate distribution strategies is a major key to success, defined as maximizing sales and profits. Place represents the location where a product can be purchased. It is often referred as the distribution channel. It includes any physical store as well as virtual stores on the Internet. Distribution strategy is aimed at establishing a structured and controllable distribution system to ensure the smoothness of transferring the products to its target customers. As we are manufacturing and selling our products on our own without any intermediaries. Our strategies are involved in many areas which are in one housing area and finally being distributed directly to the customers.
Manufacturer customer
a. Direct to consumer
First, we sell and manufactured our products which are dougnut directly to the consumer which are the one who pays to consume the goods and services produced for satisfy their needs and wants. When we directly sell to the consumer, there has no intermediary level and there are not involved the retailers and the wholesalers. Even the consumers will having their own choice and may choose all varieties in flavor besides, buying in large numbers of item that we had provided. By dealing directly with consumers, manufacturers are able to remain in business. We choose this type of distribution because we are providing fresh and clean food every day to satisfy everyone’s needs and wants.
6.7.4 Promotion Strategy
Promotion represents all of the communications that a marketer may use in the marketplace. Promotion has four distinct elements: advertising, public relations, personal selling and sales promotion. A certain amount of crossover occurs when promotion uses the four principal elements together, which is common in film promotion.
1) Advertising
i. Newspapers/magazines
This is one of our promotion strategies in introducing our company. Newspaper is a part of medium in transferring information to the residents in our marketplace. So, we will advertise our product including our company’s contact details. However, in order to minimize the cost, we will choose the hot selling newspaper and magazines in the residential area. It also will reduce the waste of advertising useless promotions.
ii. Lower Price and Discount
Besides that, our company will give the best price to our customer and give free extra doughnut to our customers that buy more than certain quantities.
iii. Signboards and banners
Signboard is the way we introduce our company especially for our premises. It is because, we will locate the signboard directly in front of our building so that when people pass by, they will know where we are and what services and products we are producing.
We will design and locate our banners at the main locations where people always come or pass by for example is, at junctions of the roads, terminal bus, universities or colleges, and so on. The total of the banners is around five depends on how much place we will locate them.
These two medium of advertising will not be a problem to our company especially for cost. It is because, we are producing these products and we just need to pay for the raw materials of producing them.
iv. Sticker
One of the ways to introduce our company and make our customers keep informed about our products and services is by using sticker on every packaging. The information provided includes:
a. Name of the company
b. Address of the company
c. Phone numbers - office and staffs
d. Company’s logo
e. Company’s e-mail
v. Website
Other alternative that we will use is the website that has information about our company and products. In spite of that, we also will use social networking sites such as blog, facebook, twitter, and so on. Online selling is important as it is the easiest way to buy something so people can make orders by only access to the internet. In addition, people also easy to make any choices of flavor or colour of doughnut because they can see the picture.
2) Sales promotion
This is a promotional activity or incentives carried out or offered within a set time frame to influence purchases. Our company sales promotions are:
o Give discounts to regular customers
o Give discounts for big purchases
o Big discount once a year
o Give free extra doubhnut to customer that purchased at certain quantity
7.0 OPERATIONS PLAN
7.1 PROCESS PLANNING
FLOWCHART FOR THE MAKING OF DOUGHNUT.
Measures ingredient
The doughnut are baked at 3250 for 12-15 minutes
Mix and blend ingredient
Ensure that the dough is of right quality
Lets the dough rest for awhile
the dough is formed into doughnut pan
Doughnut are taken out from oven to cool
Doughnut of poor quality are spared or rejected
Prepare icing or topping
Doughnuts are placed in the doughnuts storage contain
Applying icing or topping
ACTIVITY CHART FOR GIVING SERVICE
Greet the customer
Ask the customer what they want
Get the relevant information from the customer
Brief the customer about our product
Let them make decision to choose their dish for doughnut
Do transaction with customer
Get feedback from customer
Make doughnut accordingly
7.2 OPERATIONS LAYOUT
KIOSK
7.3 PRODUCTION PLANNING
Average sales forecast month = RM 16500
Price per unit of doughnut = RM 5.50
Number of output per month = Average
Price per unit
= 3000 units
If number of working days per month is 30 days. The amount of output to be produced per day is
=3000 units
30 days
100 units per day
Average sales forecast month = RM 13350
Price per unit of drink = RM 4.45
Number of output per month = Average
Price per unit
= 3000 units
If number of working days per month is 30 days. The amount of output to be produced per day is
Since the location of our product is NU Sentral, Kuala Lumpur, it is easy to us to find manpower as our business need. This is because there have many people find job at the city compared to rural are. If our business has not enough manpower, therefore , I will affect our business operation. Thus, we will find qualified workers to work in our business.
2. Transportation facilities :
The transportation facilities of our business location are available because it is located near to the city. So, there is no problem for the carriage inward and outward of raw materials and it can be handled effectively and efficiently.
3. Distance from customer :
There are many types of customer and they are also comes from different places and areas which is not just from Bangsar. We actually have customer that comes from Seremban, perak, kedah, and KLIA from foreign country. But apparently, we choose NU Sentral as our location as it is the centre place of most of our regular customer that interested in our doughnut. Besides, the geography of Bangsar also give advantages to the all other customer as the distance has no become so far.
4. Price of the site :
Price of the site is different based on the areas and places. The site that situated in town or city area will cost more than the side that situation in local area. Since the location of our business is at Bangsar which is that have higher rate of population because is near with the industrial place and transaction place.
5. Other factors :
There are also other factors such as utilities, climate, bank, petrol station, transaction station and safety of the surrounding area. The utilities of our business location such as water and electricity are also available and in a good condition. The climate of our business location is quite high because Bangsar is situated in Kuala Lumpur which is one of the develop state in Malaysia. There are many bank such ATM , who want to withdraw the money who make the purchase in shopping mall at NU Sentral. Besides, there is also having several petrol stations that situated near to our stall location that ease our customer to come to our premises with their own transport. Therefore, there near with transaction which is KL Sentral. Lastly, the safety of surrounding area of our business location is very good. As it is situated in a centre of living area.
7.8.1 BUSINESS OPERATION TIME
Our business hour starts from 10.00 am until 9.00 pm. We picked this time as it is appropriate time for business to start and close the business daily. This business operation is also suitable as it can give chances for the person who works to come to our shop after office hours which is after 10.00 am. This can give advantage for us to get and attract many customers to come to our shop and buy our doughnut that consist of many side dish. Then, one workers can make one day holiday in business hour. We just only picked these day and time as to give the chance for our workers to have some time to spend with their families. The operation hours given is suitable so that the workers can have enough rest and can perform well when they do their works.
BUSINESS HOURS :
DAY TIME
MONDAY TO SUNDAY 10.00 AM - 9.00 PM
OPERATION HOUR :
DAY TIME
MONDAY TO SUNDAY 9.00 AM – 10.00 PM
7.9 LICENSE, PERMIT AND REGULATION REQUIREMENT
7.10 OPERATION BUDGET FOR DOUGHNUT
ITEMS FIXED ASSETS MONTHLY EXPENSES
OTHER EXPENSES
Machine and equipment
RM 11,918
Raw materials RM 8986Salary, EPF and SOCSO
RM 4061
Overhead RM 5485Total RM 11,918 RM 18532
7.11 IMPLEMENTATION SCHEDULE
No ActivitiesMonth
1 2 3 4 5 6 7 8 9 10 12
1 Incorporation of business
2 Application of permit license
3 Searching premise
4 Renovation premise
5General briefing to
personnel
6Advertising & Promotion
launched
7Procurement of machine
and items needed
8 Installation of machine
9 Recruitment of workers
10 Department coordination
11Briefing of all distribution
channel
12Monitoring and corrective
action
13 Sales visits
14 Consolidation
8.0
VISION
MISSION
OBJECTIVE
To introduce our doughnut and services to our customers.
To increase our profits by 10% yearly.
To ensure customers are satisfied with our product and services.
To ensure customers buy our doughnut repeatedly.
To ensure Golden Brown Fruities’s will reach and meet the goals of the target market
and sales budget.
To overcome other competitors in this area by using a well organize business strategies.
To gain respect and trust from our customer by fulfilling their needs, wants and requests.
To be able on paying back the bank loan and overcome initial cost within 2 years.
![[0] PROPOSAL TESIS (FULL).pdf](https://static.documents.pub/doc/80x56/577cc0e81a28aba71191901e/0-proposal-tesis-fullpdf.jpg)
