MARKETING PRINCIPAL(MKTG 3010)TOPIC: BUSINESS PLANBUSINESS NAME:
CHILLAX SHOP
NAMEMATRIC NO.
AISYAH NURHUDA BT MOHD NAZRI1325960
AFIFAH NABILAH BT MOHAMAD SAFEI1321976
NUR AIYSHAH BT ABD MUNIM1324678
NURULAIN HUSNA BT AZMI1320654
NURFARAHANIM BT MOHD YAHAYA1324160
MOJEEB RAHMAN WAHAJ1212465
CHAUDHARY MUHAMMAD QASIM1317363
Lecturers Name : MADAM KALTHOM BT ABDULLAH Section : 5Session :
Semester 2, 2014/2015TABLE OF CONTENTSDETAILSPAGES
TABLE OF CONTENTS
1.0 COMPANY OVERVIEW1.1 NAME OF THE BUSINESS1.2 EXECUTIVE
SUMMARY1.2.1 LOGO1.2.2 MOTTO1.2.3 MISSION1.2.4 VISION1.2.5
OBJECTIVES1.2.6 PRODUCTS1.2.7 ORGANIZATIONAL STRUCTURE1.3 COMPANY
OWNERSHIP
2.0 MARKETING ANALYSIS2.1 SWOT ANALYSIS2.1.1 STRENGTHS2.1.2
WEAKNESSES2.1.3 OPPORTUNITIES2.1.4 TREATS2.1 MARKETING
OBJECTIVES2.2.1 SPECIFIC2.2.2 TIMELY2.3 TARGET MARKET2.3.1
POTENTIAL BUYERS2.3.2 TARGET CUSTOMERS
3.0 MARKETING STRATEGY3.1 MARKETING MIX3.1.1 PRODUCT3.1.2
PRICE3.1.3 PLACE3.1.4 PROMOTION
4.0 FINANCIAL PLAN4.1 CAPITAL CONTRIBUTION4.2 SALES BUDGET4.3
PRICING ANALYSIS4.4 STATEMENT OF CASH FLOW4.5 FINANCIAL
STATEMENT4.5.1 COST OF GOODS MANUFACTURED4.5.2 COST OF GOODS
SOLD4.5.3 BUDGETED INCOME STATEMENT4.5.4 BUDGETED BALANCE SHEET
5.0 IMPLEMENTATION AND CONTROL
CONCLUSION
APPENDIX23 - 24
1.0 BUSINESS OVERVIEW1.1 NAME OF THE COMPANYThe business name is
CHILLAX SHOP. The word CHILLAX symbolize the combination of words
chill and relax. It describes the customers feelings of chill and
relax when enjoying our products. CHILLAX SHOP is established on
21st February 2015 by the agreement of 7 members of board of
directors.
1.2 EXECUTIVE SUMMARYCHILLAX SHOP is anewindependent business
that will be operated in International Islamic University Malaysia
(IIUM) that serves mouth-watering desserts to the students. Unlike
the other businesses, CHILLAX SHOP focuses on selling a delicious
and affordable mouth-watering desserts that satisfy the customers
need. CHILLAX SHOP sell delicious melty cheese cake and spaghetti
that are suitable to be eaten throughout all generations regardless
of their races and ages. Furthermore, the prices of the products
are equivalent to the quality of the products served since the
business aims to get a high profit as well as providing high
quality yet affordable mouth-watering desserts to the
students.Since CHILLAX SHOP will be operated in IIUM, the potential
target customers are students, lecturers, staffs and also the
visitors of IIUM. The products that will be sold are very popular
among the students especially to those who are craving for some
sweets, cheesy and western desserts. The quality is high and the
taste is also more delicious than the one that are sold by the
other sellers. CHILLAX SHOP implement the concept where the
customer is always right. Therefore, fullfilling the customers
needs and satisfactions is the top priority of the business. In
addition, nowadays, small markets are continuously evolving and
thus, causing the competition among the sellers and businesses
grows day by day. However, in this situation, CHILLAX SHOP is at
advantage where it is a few steps ahead of other businesses since
its target market is an exploitable niche and the service is
differentiated since the target market will still have similar
tastes, less disposable income and less sensitivity to price.
1.2.1 LOGO
This chef hat represents the chefs activity to cook the
product.CHILLAX is the name of the business which represents the
combination of words Chill and Relax
The figure of a person holds a knife and a fork formed by the
combination of plate, fork, knife, moustache and hands shows that
our products are ready-to-eat food.
The word Shop represents the selling activities of the
business.
This sentence represents the business slogan/motto which is
Chillax with Spaghetti & Cheese.
1.2.2 MOTTOOur business motto is Chillax with Spaghetti &
Cheese.
1.2.3 MISSIONS To ensure that each of our customers receives
professional, friendly and courteous services from us. To make sure
that our company provide food at a fair price, nutritional, well
prepared meals by using only quality ingredients. We insist to sell
all of our products during the Marketing Project Week. To ensure
the customers satisfaction by fulfilling the customers demand and
their needs. To earn the maximum profits and reduce the costs
without ignoring the customers maximum satisfactions.
1.2.4 VISIONS To widen our business and serve the students with
the best service. To be a profitable and competitive business in
the future. To be the best and recognized food business in
IIUM.
1.2.5 OBJECTIVES To apply the knowledge that we learn in MKTG
3010 in the real world. To make profit from the sales and donate a
portion of it to the charity organisation.
1.2.6 PRODUCTSCHILLAX SHOP will offer the customers with
mouth-watering desserts consist of Spaghetti Bolognese and Melty
Cheese Cake. Spaghetti Bolognese will be made by our own chef while
the Melty Cheese Cake will be ordered from a supplier. We use halal
and tasty ingredients to cook the spaghetti and its sauce. The
cakes are also bought from a recognized and halal certified
supplier.
Spaghetti BologneseMelty Cheese Cake1.2.7 ORGANIZATIONAL
STRUCTURE
Aisyah Nurhuda bt Mohd Nazri(MANAGING DIRECTOR)
Afifah Nabilah bt Mohamad Safei(ADMINISTRATIVE MANAGER)
Mojeeb Rahman Wahaj(PRODUCTION MANAGER)Nur Aiyshah bt
Munim(FINANCIAL MANAGER)
Nurfarahanim bt Mohd Yahaya(OPERATIONAL MANAGER)Chaudhary
Muhammad Qasim(CUSTOMER SERVICE MANAGER)
Nurulain Husna bt Azmi(MARKETING MANAGER)
1.3 COMPANY OWNERSHIPCHILLAX SHOP is a partnership business
which is formed through an agreement between seven shareholders;
Aisyah Nurhuda, Afifah Nabilah, Nur Aiyshah, Nurfarahanim, Nurul
Ain Husna, Mojeeb Rahman and Mohd Qasim. The business will be based
in International Islamic University Malaysia (IIUM) and will start
operating during the Marketing Project Week.
2.0 MARKETING ANALYSIS SUMMARYCHILLAX SHOP aims to be the most
leading business that serve foods to the students in International
Islamic University Malaysia (IIUM). We use SWOT analysis to get to
know the survival ability of the business. Then, we make sure that
we have marketing objectives that need to be achieved as soon as
the business starts. We find the potential customers to our
business and decide who will be our main target market by doing the
market segmentation analysis using some factors.
2.1 SWOT ANALYSISWe analyse the market using SWOT analysis by
identifying and evaluating the business strengths, weaknesses,
opportunity and threats. This analysis is very important to ensure
the survival of CHILLAX SHOP in todays competitive business world
and thus be a successful business in IIUM.
STRENGTHSWEAKNESSES
Members have knowledge in business. Have a good relationship
with the customer. High quality of food. Too much spending on
expenses. Products may be expensive to certain students. Financial
matters.
OPPORTUNITIESTHREATS
Generate side income to cover daily expenses. Increase in demand
for new products. High competitions among competitors. Changes in
consumers income. Difficulties in dealing with suppliers.
2.1.1 STRENGTH Members have knowledge in business.Some of our
members have experience in doing business. So, we can get some
advices and tips from them to ensure that our business will be
running smoothly.
Have a good relationship with the customers.Our main policy is
customer is always right. Having a good relationship with the
customers is one of the most important part to fulfill our business
policy . In addition, CHILLAX SHOP also applies the marketing
concept of customers orientation where we take serious concerns on
the needs of the society.
High quality of food.We make some researches and surveys to get
to know the suppliers who can provide us with high quality and
mouth-watering melty cheese cakes at a lower cost so that we can
sell them to the customers at a cheaper and affordable price. The
ingredients of the spaghetti bolognese are also from high quality
and halal ingredients.
2.1.2 WEAKNESSES Too much spending on expensesSince all of us
are still students and do not have any kind of transports, we will
incur some recurrent transportation expenses (for fuel and rental
fees) to go to the supermarket to buy the ingredients.
Products might be very expensive to certain students.As our
target market is mainly for the students, the products might be
very expensive to them especially for those who do not have enough
money.
Financial matters.We cannot simply sell our products without
being concern on ones welfare. For instance, we purchase for high
quality of food and ingredients at a high cost but after we add
markup to the cost and adjusted the selling price to be an
affordable price for all customers, the profits sometimes is lower
and nearly zero. Hence, this situation sometimes would give
financial conflicts to the business.
2.1.3 OPPORTUNITIES Increasing demand for the productsAfter all
of the promotion strategies were done, more people will know about
our products and this will increase the demand of our products.
2.1.4 THREATS High competitions among competitorsCHILLAX SHOP
has a quite number of competitors. As we know, CHILLAX SHOP offers
mouth-watering desserts which are very demanded by the customers
and also favourable by the sellers to sell this products.
Changes in consumers incomeConsumer income is one of the factors
that will influence the consumers behaviour and consumers
preferences. If the personal income of the consumers decreases,
their purchasing power towards our products will also decreases.
This is because, the consumer will be wiser in spending their
money. They will consider between two aspects which are their
income and the benefits or impact of buying the products.
Difficulties in dealing with suppliers Miscommunication is
always being the most important thing that should be avoid when
dealing with either suppliers or customers. Since we are
communication with the suppliers through phone, there might be some
chances for this miscommunication problem to happen between us.
This is the main difficulties that we have to face when making a
deal with them.
2.2 MARKETING OBJECTIVESCHILLAX SHOPs aim is to retain its
position as the leading distributor of delicious spaghetti
bolognese and melty cheese cakes in IIUM and to gain more market
shares. The marketing objectives of the company are best described
as :1. To achieve the integrity and image of our products.2. To
provide the highest possible standard of services to our
customers.3. To ensure the business achieves, maintains and grows
an adequate level of profitability.
2.2.1 SPECIFICWithin a month, we are going to set up a stall in
IIUM to sell our products during the Marketing Project Week, in
which, it will allow us to get benefits financially from our
favorite food. At the beginning of the period, we will have an
inventory of 20 plates of spaghetti bolognese and 20 pieces of
melty cheese cakes. As what we have discussed in our meeting, we
aims to sell around 20 plates of spaghetti bolognese and 4 pieces
of melty cheese cake per day by building customer relationships
through the words of mouth, referrals and also local networking.Our
income per day will be approximately around RM 114. Our capital
investment is RM 350. We will also offer some discounts and
promotion price as well to boost our sales. If the business runs
smoothly, we are willing to add more stocks into our inventory.
2.2.2 TIMELYOur booth will commence on week 13 during the
Marketing Project Week and will last for a week. Each employee is
expected to attend the whole week until the end of the Marketing
Project Week. We want to increase our revenue throughout the week.
We will try to increase the rate of the customers who give positive
feedback to our customers.In our marketing plan, we plan to
establishe a happy hour time, in which we will give discounts on
our products during the hour which is from 3 pm to 4 pm
everyday.
2.3 TARGET MARKETSince we are doing a small business in IIUM,
our target market involves two categories of customers:1. Potential
customers (buyer).2. Target costumer.
2.3.1 POTENTIAL BUYERPotential customers are the individual who
is capable of becoming a purchaser of our products.By knowing who
are the potential customers of our products, we can determine the
target market of our products. Our potential customers are all the
students, lecturers, staffs and the visitors of IIUM and not to
forget, also those who are willing to buy our product.
2.3.2 TARGET COSTUMER (TARGET MARKET)The key group of potential
customers is known as our target customers, the group of people who
are most likely to buy our products. For the segmentation of this
category we use the following factors: Geographic Demographic
Psychographics Behavioral
GEOGRAPHICWe are doing a small business and our service is just
limited to IIUM which is located in Kuala Lumpur. We cannot offer
our products to those people who are living outside the university.
However, if they are able to come to our stall inside IIUM we can
also sell to them.
DEMOGRAPHICSegmentation according to demography is based on the
variables such as age, gender, occupation, religion, education
level and nationality. Age: Basically our product is not just for
people with a specific range of age, it means that everyone (teens,
child, old men andwomen) can consume it. But our main target is the
students with the age of 18-40 years old. Gender: We are selling
our products to both male and female students in IIUM. Income: Our
products are affordable in price, therefore, students in each
category (high, medium, and even low) level of income can buy them.
Education: We are selling cheese cake to the students of any level
of education (undergraduate, post graduate, PHD, and even to
lecturers) who are living in IIUM. Religion: Our main target is
Muslim consumer, because our product is produced using halal
ingredients and we are selling it in IIUM where the majority of the
students are Muslim. Nationality: There is no limitation of races
and nationality of our costumers. The reason is that we are doing
business in an international and multi-cultural university (IIUM)
which have student from all over the world, Asia, Africa, Europe
and America.
PSYCHOGRAPHICSIn this segment, we are trying to collect analysis
of consumer lifestyles in order to create a detailed customer
profile. It may be impossible for us to conduct a complete
psychographic research just by asking consumers to agree or
disagree with activities, interests, opinions statements. But we
just simply put it as follows: Lifestyles: We are mostly focusing
on individual costumer and students of IIUM. Interest: We are
attracting most of those customers who are interested in our
products.
BEHAVIORALThis grouping patterns may include such behaviors as
spending, occasion, usage, and desired benefits. Usage: we are
willing to have all types (light, medium and heavy user groups) of
our products consumer. Occasions: We encourage our customers to eat
our products whenever and wherever they want at any occasions
because our products is just mouth-watering desserts which are not
related or bound to any specific eating time.
3.0 MARKETING STRATEGY3.1 MARKETING MIX3.1.1 PRODUCT STRATEGYWe
have done a survey to know which food that students are craving or
demanding for. The result shows that students want food that is
affordable yet high quality and quantity that can give them higher
satisfactions. Then, we decided to sell melty cheese cake and
spaghetti bolognese. Our product is a consumer product and
categorized under convenience product since the products are bought
to satisfy an individual needs, craving and not expensive. The
supplier for melty cheese cake is ZAD Resources Sdn. Bhd. we found
this supplier by the recommendation of our friends. The company
only produces melty cheese cakes with 7 different flavors which
give 7 different tastes. And of course all of those flavors are
tasty. Meanwhile, spaghetti bolognese is a manufacturing product
where we cook the spaghetti using high quality and halal
ingredients on our own.Furthermore, our products packaging uses
persuasive labelling. The label on the packaging has a very unique
design that is very persuasive. The label also promotes our
business since we also put the details of our business in that
label.
3.1.2 PRICE STRATEGYBefore we priced our products, we did a
research on the current price of the products in the market. We
realized that some sellers sell the products at a very high price
but the quality and quantity of the food cannot satisfy the
consumer needs. So, we decided to put a suitable and affordable
price on our products so that all customers can satisfy their needs
with a high quality yet affordable products. The prices are as
follows: Melty Cheese Cake: RM 6 each Spaghetti Bolognese: RM 4.50
each.
3.1.3 PLACE STRATEGYCHILLAX SHOP will set up a stall in IIUM
during the Marketing Project Week in order to sell the products
which are spaghetti bolognese and melty cheese cake. Both potential
and target customers can get the products by visiting our stall or
by placing their orders on facebook using hashtag Chillax
(#Chillax). Delivery services will also be provided if the demand
increases.
3.1.4 PROMOTION STRATEGYCHILLAX SHOP will advertise the products
through posters, flyers, social medias and by the circle of
influence, where each of the members will promote the products to
their fellow friends and families. Besides, we will launch the
Hashtag Chillax (#Chillax) campaign on facebook, instagram and
twitter to promote our stall and products. Then, we will also
provide a happy hour time for the customers to buy our products at
a cheaper price.
4.0 FINANCIAL PLAN4.1 CAPITAL CONTRIBUTIONTo start the business,
each of the members will contribute RM 50 as the capital
investment. In total, it will bring in RM 350 amount of cash into
the business.
4.2 SALES BUDGETCHILLAX SHOPSales budget for 5
days(Spagheti)
DAY 1DAY 2DAY 3DAY 4DAY 5TOTAL(WEEK)
Budgeted sales (packets)
2020202020100
Selling price per packet
4.504.504.50
4.504.504.50
Sales revenue (RM)
9090909090450
CHILLAX SHOPSales budget for 5 days(Cheese cake)
DAY 1DAY 2DAY 3DAY 4DAY 5TOTAL(WEEK)
Budgeted sales (packets)
4444420
Selling price per packet
6.006.006.006.006.006.00
Sales revenue (RM)
24.0024.0024.0024.0024.00120
4.3 PRICING ANALYSISThe business uses cost-plus pricing method
in order to set up the product price. The price is affordable to
cover all the cost incurred in making of the product.COST-PLUS
PRICINGPrice = Cost + (Markup percentage x Cost) Spaghetti = 3.50 +
(30% x 3.50) = RM4.50Cheese cake = 4.00 + (50% x 4.00) = RM
6.00
4.4 CASH FLOW STATEMENTCHILLAX SHOPStatement of Cash FlowDAY
1DAY 2DAY 3DAY 4DAY 5
Starting Cash350.00373.00396.00419.00442.00
Cash Receipts:Sales - spaghetti -cheese cake
90.0024.0090.0024.0090.0024.0090.0024.0090.0024.00
TOTAL (RM)114.00114.00114.00114.00114.00
Cash Payments:Cost of production for -spaghetti-cheese cake
Advertising Transportation
70.0016.002.003.00
70.0016.002.003.00
70.0016.002.003.00
70.0016.002.003.00
70.0016.002.003.00
TOTAL (RM)(91.00)(91.00)(91.00)(91.00)(91.00)
CASH BALANCE (RM)373.00396.00419.00442.00465.00
4.5 FINANCIAL STATEMENT4.5.1 COST OF GOODS MANUFACTUREDCHILLAX
SHOPSchedule of Cost of Goods Manufactured per dayRMRM
Direct Material: Raw material Inventory,Beginning-
Add: Purchases of raw materials70.00
Raw materials available for use70.00
Less: Raw material inventory, Ending-
Raw material used70.00
Manufacturing Overhead:
Container and spoon30.00
Total Manufacturing Overhead30.00
Total Manufacturing Costs100.00
Add: Work-in-process inventory, Beginning-
Subtotal100.00
Less: Work-in-process inventory, Ending-
Cost of goods manufacturedRM 100.00
4.5.2 COST OF GOODS SOLDCHILLAX SHOPSchedule of Cost of Goods
Manufactured per dayRM
Cost of goods manufactured100.00
Add: Beginning finished-goods inventory-
Cost of goods available for sale100.00
Less: Ending finished-goods inventory-
Cost of goods soldRM 100.00
4.5.3 BUDGETED INCOME STATEMENTCHILLAX SHOPBudgeted Income
Statement for a weekRMRM
Sales Revenue
Spaghetti450.00
Cheese Cake120.00
570.00
Less: Cost of Goods Sold
Spaghetti350.00
Cheese cake80.00
430.00
Gross Profit140.00
Less: Operating Expenses
Advertising 10.00
Transportation15.00
Total Operating Expenses25.00
Net IncomeRM115.00
4.5.4 BUDGETED BALANCE SHEETCHILLAX SHOPBudgeted Balance Sheet
for a weekRMRM
Current Assets
Cash465.00
Total Assets465.00
Liabilities-
Owner Equity
Capital 350.00
Net Income115.00
Total Liabilities and Owner Equity465.00
- 2 -
5.0 IMPLEMENTATION AND CONTROLWEEK/ACTIVITYPERSON IN
CHARGE(PIC)23456789101112131415
ACTION, IMPLEMENTATION AND CONTROLLING PHASES
1. Collect money from each members for the capital investment
(RM 50 each / RM 350 in total).Aiyshah Munim
2. Find and make a deal with Melty Cheese Cake supplier.
(Analyze and choose the best supplier that we can get).Aisyah
Nurhuda, Farahanim
3. Find the place to buy Spaghetti Bolognese ingredients (Choose
the least cost but high quality and halal ingredients).Afifah
Nabilah, Ain Husna
4. Starting to promote the upcoming business for Marketing
Project Week (Invite as many students as we can to come to our
booth later on).Ain Husna, Mojeeb, Qasim
5. Order 20 boxes of Melty Cheese Cake from the suppliers
(Products should be received the day before the Marketing Project
Week started).Aisyah Nurhuda,Farahanim
6. Buy ingredients to make Spaghetti Bolognese.
Afifah Nabilah, Ain Husna, Aiyshah
MARKETING PROJECT WEEK
1. Cook Spaghetti bolognese at 4.30 am everyday throughout the
project week.Afifah, Aisyah, Aiyshah
2. Prepare for the business presentation.Mojeeb, Qasim,
Farahanim
3. Collecting datas and records for business reports.(Taking
pictures and calculating the cash inflow and outflow).Mojeeb,
Qasim, Aiyshah, Ain Husna
4. Develop and finish the business report.Farahanim,Ain
Husna,Mojeeb, Qasim, Aiyshah, Afifah, Aisyah Nurhuda
1. Submit business report (Due date: Monday, 11th May 2015
before 5 pm)Afifah
2. EvaluationLecturers
CONCLUSIONThis marketing project proved to be helpful to all of
us. We were able to plan and execute a business in detail even
though our business is small and did not get a lot of profit. From
the report, we have learnt a lot about the process of starting up a
business. We gained a lot of experience how to handle the business
as well as the operation and what a business has to undergo to
become successful by conducting this report. In addition, we have
also learnt about the risk we have to face and how to overcome the
risks. Through perseverance and hard work, we were successful to
achieve our budget. This project also helps to enhance our
entrepreneurship skills. In the near future, we are looking forward
to continue our business venture, Insha Allah.
APPENDIX