1.0 INTRODUCTION

Putting ourselves as the consumers, we have come up with an

idea to make ‘Homemade Fried Chilles’ condiments business in our

company The Future Entrepreneurs (TFE) Enterprise. Knowing that

the market of this product has already exists; we have taken

these opportunities to introduce our homemade Fried Chillies

condiments according to many types of choices for consumers.

Although there are some of the sauces, condiments, or fried

chillies are already existed in the market, but w have come

across with the problem that consumers usually have less choice

to make according to their taste and appetite. The market gaps

help us to generate our idea to be used as a business product.

2.0 IDENTIFYING AND RECOGNIZING OPPORTUNITES

2.1 Opportunities

(i) Attractive

The attractiveness of our product, ‘Homemade Fried Chilles’ is

that, it is a basically homemade product. Although we still factory

where we would produce our product, we will remain the traditional

method to cook or fry them manually by hand. Only grinding and

blending process will be done through machines. ‘Homemade Fried

Chilles’ can be taken as the side food for certain main foods like

rice, noodles, bread, paratha and etc. Other than that, it can also

be re-cooked as the additional taste to the food as well as the

topping of certain food or meal.

The ‘Homemade Fried Chilles’ will be bottled up which it

makes the user easy to bring along the product. With the extra

quality of this product and the long durability of its expiry date

will be the best companion to the travellers, such as travelling

from an origin to another country would be quite difficult for

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certain people who are not familiar with the food of the country

travelled.

(ii) Anchored in a Product that Creates or Adds value for its

Buyer or End User

The ‘Homemade Fried Chilles’ is extremely a good taste

product which meets the eastern taste. The long durability of

the product makes it highly demanded by the consumers because

the existing products which are usually do not last long

because they were made mostly excessively oily. Comparatively

to ‘Homemade Fried Chilles’ product is not oily. ‘Homemade

Fried Chilles’ is the best thing to eat with when there are no

other side dishes. Furthermore, it is the best companion

during travel, e.g.: the pilgrims from Malaysia would be able

to bring this product while they go to Mecca.

(iii) Timely

The ‘Homemade Fried Chilles’ does not take a lengthy period of

time to get done. The product needs some procedures to be made. Like

other food product which need to be cooked, ‘Homemade Fried Chilles’

also need to be fried.

(iv) Durability

The durability of ‘Homemade Fried Chilles’ is long.

Unlike other sauces or similar product to ‘Homemade Fried

Chilles’ in the market do not have long expiry date, ,mostly

because they are made too oily or other ingredients which make

the product to not have a long validity of expiry date.

‘Homemade Fried Chilles’ can be kept up to 1 year is there’s

no other external factors like weather that affect the

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contain; and most to most can be kept up to 6 months once

opened or used.

2.2 Observing Trends

Observing to the today’s trends, we have observed that the

idea of making the ‘Homemade Fried Chilles’ have met the

Malaysian eating habits. Malaysian is well known of their eating

habits of taking spicy food for their routine foods. There are

plenty of Malaysian dishes are made spicy, for example; nasi

lemak has its chilli handmade sauce or more famous as “sambal” as

the condiment of the coconut milk rice. Therefore, it also shows

that through social trends of Malaysia, the product of ‘Homemade

Fried Chilles’ would have a good penetration in the local market

especially in Sabah, this is because so far there are less

competitor of this ‘Homemade Fried Chilles’ in the West Malaysia

region.

2.3 Solving a Problem

Looking at the current situation, a we have put ourselves as

the consumer’s, we have come across that during the worse situation

at times like students or working people who do not have much time

to prepare food would choose the easiest way by making an instant

noodle rather than making proper dish. As at worse case, consumers

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may eat their plain rice with ‘fried chilies’ alone, or maybe with

some raw or steamed vegetables. Rather than taking unhealthy food,

it would be the best choice to take these fried chilies. This

situation is also best described for the one who are travelling in

other countries. Malaysian local might have difficulties in having

their meal because other countries’ meals might not meet their

taste. So as the solution to it, ‘fried chilies’ is the best

companion during travel, as it is portable and in proper packaging.

Plus, other problem that have solved is, the fried chilies can be

used as the additional taste to food as it is mixed with spices,

good for taste indeed. Furthermore, the product out there has a

short durability of the expiry date, therefore by having fried

chilies; consumers may keep it for a long time instead of throwing

in a short period. Additionally, tasting condiment or sauces in the

current market, fried chilies is comparably more tasty and good

quality. Moreover, more choices are given to consumers to choose

their taste by choosing on four types of taste prepared by our

company.

2.4 Finding Gaps in the Market Place

According to the existence products, gaps in the market to

penetrate our product are available. We can assume on this by

looking at the current market that there are less choice can be made

by consumers. TFE Enterprises would manufacture four types of fried

chilies condiments, they are made of anchovies, dry shrimp, salted

fish and beef meat. These items are will be fried with dried

chillies. Therefore, leaving more choices to consumers, our company

have penetrates in the market in a different product than other

competitors.

Preparation

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Under preparation, we will be preparing for manufacturing place.

Since we have limited funds, we will try to get premises from MARA

where we can manufacture our product for initial period. Being the

‘Bumiputera citizen’ of Malaysia, we have chances to get the loan

from government agencies like MARA, FAMA and MARDI. Plus, we will

need to get good suppliers to get our raw materials and non-raw

materials to manufacture our product. Furthermore, we will need to

find good channels to distribute our products like supermarket, mini

markets and restaurant will be our permanent channels, where we can

initiate good deals from both parties. As our product has fall under

food industry and our target market is the Malaysian Citizen, we

will need to register our product to get HALAL certificate. This

will assure that our product is safe to eat and hygiene in many

aspects. As well as getting the certificate and will also work

simultaneously to get certificate from the Ministry of Health

Malaysia.

Incubation

Experiments needed over the nutritional basis of fried chillies,

this will give the information needed by the consumers. We will need

to have a proper method of handling our manufacturing place,

utilities, workers, raw materials and the process of making the

fried chillies to assume that hygiene is managed. If we fail to keep

this method precisely handled, we will face consequences where the

fried chillies may got contaminated and it will cause health

problems to consumers. Recipe of making fried chillies need to be

patent so that there’s no any other company would copy our recipe.

Also, having a consistent recipes will assure the same amount

ingredients been used so that the taste of fried chillies will be

consistent each time we produce in a bulk amount.

Insight5

As to promote our product, we will register our product under

‘Buatan Malaysia’. Where these agencies would help the local

products to get place to penetrate into the international level. If

we will able to penetrate into the next step after Malaysia like

ASEANS countries and European United companies, we will help our

national economies growth. Furthermore, that have being held all

over the world annually would also give an impact tour company

growth. Interested companies from other countries would be our

business partners’ or the export destinations to send our product.

Evaluation

At this stage, we will need to evaluate on our decision making to

produce our ‘fried chillies’. Evaluating on the upcoming feasibility

analysis, we have more chances to build our product to be the

business product and we will make profit out of it.

Elaboration

After evaluating on each ideas and consequences, our team will be

reads to transform our idea to become a business product to be deal

in market. We will need to introduce our product in the market at

Sabah (west Malaysia) through our marketing methods including the

four main aspects to be fulfilled which are price and product.

3.0 FEASIBILITY ANALYSIS

3.1 Product Feasibility Analysis

The main purpose of the product feasibility analysis is an analysis

of the business opportunity, including a look at all the possible

roadblocks that may stand in the way of the product’s success. The

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outcome of the feasibility study will indicate whether or not to

proceed with the proposed venture. If the results of the

feasibility study are positive, then the proposed product can

proceed to develop a business plan. It’s a prospective in what our

company rushes into development, to make sure that our Sambal Ikan Bilis

is what ‘prospective’ customers want.

Components of product feasibility analysis

1. Product Desirability

Our company has a classic formula: Product desirability =

Profitability. This is what we want to achieve as a new entrepreneur

in an existing market. This creates "a whole new level of this need

for desirability." That's because in food industry, we can taste and

try the product itself. Much more than that, it removes barriers and

allows for more experimentation to future the food future

development, as our company points out.

But desirability doesn't have to mean how the aesthetic makes a user

feel about a product, which is at least how it's been viewed before.

After all, our company can't control users' feelings about our

product, but can certainly understand and influence them.

Desirability should be how our company can drive a customer to take

action through food tasting, sampling, etc. Using quality food

materials, packaging, and form elements, our company can make this

‘Hommemade Fried Chillies’ more desirable to customer. To simplify

it, our company can make a visual design provides information about

the product, and well-written content guides to form another recipe

using our product.

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Nowadays, consumers increasingly seek out healthy, convenient, and

ethnic foods. This has led to strong innovation in the domestic food

manufacturing industry. Our product can take advantage from this

situation because today’s customer can consume this product as a

side dish as well as it is a quick meal solutions, new ingredients

and single snack portions.

More recently, a strong trend in Malaysia is the importance

consumers allocate to the preservation of the environment. As a

result, localization has gained importance, with consumers trying to

cut down on their personal food miles. Still, it is a good time to

introduce our product to the market even though there’s a wide range

of factors have affected Malaysia's food industry in household

budgets, unemployment, and the banking crisis because our country

recorded positive volume sales in the food industry and our company

offered the best value product for money that can compete in the

existing market.

There are some fatal flaws in our ‘Hommemade Fried Chillies’product

such as:

It’s hard to maintain a original taste of the sambal if the

production do by inexperienced or new staffs

Storage might be contaminated if the hygiene and safety

percussions don’t take seriously by the staffs

Quality of our product will be decrease if the supplier sends

raw materials that was not fresh

Our ‘Hommemade Fried Chillies’ product is basically on the right

track, we delving deep into how our company can use existing food

materials to meet customers’ needs and influence their behavior.

It's also great to see customers considering our food product as

part of their side daily food. However, the main lesson in all of

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this is without usability and utility of our product, our company

can't really create desirability. Those two are the initial steps.

If our company just throws up a bunch of delicious sambal and pretty

packaging, our company isn't really creating a product that

customers will have the desire to consume.

2. Product demand

Product/service demand was the second component of

product/service feasibility analysis. It is determine if there is a

demand for the product or service. Our company’s product was ‘Sambal

Ikan Bilis’ that was originated from home made product. We are using

two types of this determination, which are:

a) Buying Intention Survey

b) Library, Internet, and Gumshoe Research

a) Buying Intention Survey

Buying intention survey is an instrument that is used to gauge

customer interest in product or service. Our company’s will held a

survey to different group of people according to our customer

segment in business modal canvas which is to all the Malaysian

citizens except to those people who had infants and allergies. This

buying intention survey held to know how our customer will buy our9

‘Hommemade Fried Chillies’. For example, how the customer definitely

would buy, probably would buy, might or might not buy, probably

would not buy, and definitely would not buy, and also other related

questions. We also add different variety of ‘sambal’ which are

content meat, ‘ikan masin’, and shrimp to plug a large selection and

to pleasing our customers.

This survey tends to explore relationship between our

company’s brand equity as a whole construct comprising (brand

association & brand awareness, perceived service quality and service

loyalty) with purchase intention of our‘Hommemade Fried Chillies’ .

We will carry this survey through website such as SurveyMonkey and

SurveyGizmo for free or a modest fee with small scale survey.

b) Library, Internet, and Gumshoe Research

This is the second way to assess the demand of our ‘Hommemade

Fried Chillies’ by conducting library, internet, and gumshoe

research. This kind of research used to collect data about our

product and can be reference in future purposes.

Library references are type of resources to help investigate a

business idea, such as industry-specific magazines, trace journals,

and industrial report. While, the internet are used to search

multiple information about the potential ability ideas of our

‘Hommemade Fried Chillies’. Just type into Google search box and

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quickly found an article about The Future Entrepreneur Company and

our products. Gumshoe research are the detective or an investigator

which getter information for every place. Our company’s will find

people and ask them about our ‘Hommemade Fried Chillies’product.

This library, internet, and gumshoe research is conduct

product/service feasibility analysis to our potential customers and

it is important to continue assess the strength of our product ideas

and learn from users.

3.1 Industry Analysis

Target Market Attractiveness

Out target market is quite general and wide target as we target all

Malaysians citizens except for infants segments and also individual

allergies. According to our level of characteristics of target

market which is our consumer lifestyles, behavior, values, and

interests to our product, we assumes that our product can fulfill

and can get a good demand from consumers. Ways of channels would be

used to deliver our product to consumers. Our company also would

hire an intermediate person who acts as our middle man and deliver

the product to the agent before contribute it to our consumers.

Other alternative, we will market our product by supplying our

product to the supermarkets and convenience store.

a) Supermarket - self-service retailers that provide a full range

of food products to consumers, as well as some household

products. Supermarkets can be high, medium, or low range in

terms of the prices they charge and the service and variety of

products they offer.

b) Convenience Store - miniature supermarkets. Many of them sell

gasoline and are open twenty-four hours a day. Often they are

located on corners, making it easy and fast for consumers.

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But, before we market our product into these two markets, we have to

make sure that we have a strong and trustworthy brand. Without a

strong brand, our product will be neglected by the consumers.

3.3 Organizational Feasibility Analysis

Organizational feasibility analysis is important to conducted to

determine whether a proposed business has sufficient management

expertise, organizational competence, and resources to successfully

launch a business. Our company has make an organizational

feasibility analysis.

The organizational feasibility analysis result is showing our

company can successfully launch our business. Our business product

is fried chilies. To run the organization feasibility analysis, our

company has analyzed management prowess and resource sufficiency.

Management Prowess

Prowess has carefully grown a highly functional in our company

management team of experienced professionals. With an emphasis on

maintaining our culture, we have people who possess the domain

expertise in addition to fit and other intangibles that are

accretive to the vision and mission of the company.

Our proposed business has candidly evaluated the prowess, or

ability, of our management team to satisfy itself that our

management team has the requisite passion and expertise to launch

our venture.

Our company entrepreneur has the passion for our business idea. They

have the desire to launch our company product because they believe

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that this product can be successfully launched to the market. It is

because our business product has its own speciality within value

proposition.

Moreover, our company entrepreneurs understand about the market

where the product can be launch. There are several competitors in

the market, but we positively confident that our product can be

successfully accepted by customers and in the same time our company

can gain profit thru this product.

Resource Sufficiency

Our company entrepreneur has sufficient resources to launch the

proposed venture. This product can be selling everywhere in the

world. Our company are very confident that our product can be launch

into the market based on our organizational feasibility analysis.

Our product is manufactured by our company itself. We have a

manufacturing space or a space to launch a service business located

in Sabah, Malaysia. That is why our company does not have any

problem to manufacture our product.

Moreover, we have a quality and passion management employees for now

and even for the future of our company. Management employees that

our company have right now are very enthusiastic and have the

passion to launch our product.

Furthermore, our company already get the ability to obtain

intellectual property protection. So that, others company cannot

duplicate our product. Otherwise, if there other company still try

to duplicate our product, our company can sue them.

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Our company need a lot of raw material to make this product. Our

products need raw material such as anchovies, meat, prawn, and

salted fish. This is one of our product speciality, we have a lot of

flavour. So that customers can select their favourite flavour.

Our product has the raw suppliers that can supply the anchovies,

meat, prawn, and salted fish every week. The supplier is from Ashraf

Jaya Enterprise, located in Sabah, Malaysia. Our company does not

have any problem to get the raw material to produce our product.

3.4 Financial Analysis

Total start-up cash needed

item Amount/kg quantity Total costRaw materialOnion RM2.00 1620kg RM 3 240

Anchovies RM30.00 2160kg RM 64 800

Dried Shrimp RM40.00 2160kg RM 86 400

Salted Fish RM14.00 2160kg RM 30 240

Meat (beaf) RM5.70 2160kg RM 12 312

Dried Fish RM5.00 2160kg RM 10 800

Spices RM26.75 1620kg RM 43 335

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Salt RM1.00 40kg RM 40

Tumeric RM8.60 100kg RM 860

Oil RM2.60 15000kg RM39 000

Other MaterialsPolythylene RM3.20 1000 RM 3 200

Stickers RM1.50 30000 RM 45 000

box RM3.00 300 RM 900

Company registration RM 60

rent RM 5000

utility RM 800

transportation RM 2000

TOTAL RM 347 987

OVERALL FINANCIAL ATTRACTIVENESS

Table 1.1: Show the overall financial attractiveness. (Per units)

ITEM COST

PER UNITS.

SALES PER

UNITS

PRO

FIT.

Sambal udang . RM 5.00 RM 8.00 RM 3.00

Sambal ikan bilis. RM 4.00 RM 7.00 RM 3.00

Sambal daging. RM 7.00 RM 10.00 RM 3.00

Sambal ikan

masin.

RM 6.00 RM 9.00 RM 3.00

TOTAL RM 22.00 RM 34.00 RM 12.00

Table 1.2: show the overall financial attractiveness. (Overall).

ITEM QUANTITY (COST X ( SALES X TOTAL

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( UNIT) QUANTITY) QUANTITY) REVENUE

Sambal

udang.

300

00

RM

150000.00

RM

240000.00

RM

90000.00

Sambal ikan

bilis.

300

00

RM

120000.00

RM

210000.00

RM

90000.00

Sambal

daging.

300

00

RM

210000.00

RM300000.00 RM

90000.00

Sambal ika

masin.

300

00

RM180000.0

0

RM

270000.00

RM

90000.00

TOTAL 120000

UNITS

RM

660000.00

RM

1020000.00

RM360000.0

0

Based on the above table shows that our company has started

business with an amount of RM 347 987. Overall view of our finances,

we found that we gain more than the sum of our initial cost of RM

360 000. This shows that, our company can and are able to continue

our business thus able to achieve a maximum profit on demand

products in the market.

4.0 INDUSTRY ANALYSIS AND COMPETITOR ANALYSIS

1. Threat of new entrants

For food condiments, our company has to compete with number

competitors for a share of industry profits. Our market analysis

team has identified some new competitors that are on the same base

product. The list of competitors stated as below:

A. Sambal Burma Muslim Product – established since April

2013 and located at Kota Bharu, Kelantan.

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B. Mama G Food Industries – established since October

2012 located at Selangor.

C. Sambal Ikan Bilis Comby – located at Pulau Pinang.

From our analysis, our company will be able to compete with the new

entrants as our early market located only at West Malaysia and the

new entrants all located at the Peninsula Malaysia. So, we will

establish our market and from time to time, we will conquer West

Malaysia markets.

2. Rivalry Among Existing Firms

Our strategy to compete with the strong existing firms is by our

product price, packaging and promotional strategies. For price, TFE

Company will use competitive strategy which is price reduction. Our

product will be cheaper for consumers but the quality of the product

did not decreased. For our product packaging, we will establish a

team of packaging designer and the design would be follow the trend

of market. The last strategy would be promotional strategies. For

early market, we take an incentive to market our product by

supplying our product to the supermarkets and convenience store but

with affordable and lower than other brands product. But, before we

market our product into these two markets, we have to make sure that

we have a strong and trustworthy brand. Without a strong brand, our

product will be neglected by the consumers.

3. Threats From Substitute Products

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The third elements of industry analysis would be threats from

substitute products. These threats may come from newcomers and

existing competitors. Big competitors such as Maggi, Life, Ayam

Brand, Yeos and other big company while newcomers as stated at

above. For our target market, we have identified that our consumers

which is consists of Malaysian people whose preferred dried and

spicy product. Thus, our product has its own specialty to fulfil

consumer needs.

4. Bargaining Power Of Buyers

Powers of buyers shows consumer’s ability to get product in term of

trade with the sellers. Powerful buyers can get price discounts,

better credit terms and more product services. For TFE COMPANY,

which is in early stage of establishment, we can’t offer those

benefits to our customers. But, we will offer our consumers a good

and quality product of us. In time, we will improve our marketing

strategies to attract our consumers and get their loyalty for our

products.

5. Bargaining Power of Suppliers

Supplier power of raw materials will affect and influence our

company profitability and our competition by affecting our

productions cost. Our company will establish a team to survey and

negotiate with multiple suppliers company to compare the prices and

the credit terms. If we only stick with only one supplier, our

company bound with the suppliers. In case the suppliers can’t fulfil

our need of raw material, our production will be affected and

decreased. With multiple suppliers, we can compare the advantages

the suppliers offer respectively.

QUESTION 1

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Is the industry accessible in other words; is it realistic place for

a new venture to enter?

Looking at the attractiveness of an industry, and the four

feasibility analysis made by our team that includes the product

analysis, industry/target market analysis, organizational analysis

and financial analysis, we have a better future to compete healthily

in this food market. The attractiveness of our product would gain

profit out of this idea.

QUESTION 2

Does the industry contain markets that are ripe for innovation or

are underserved?

The industry contain markets are underserved as the food industry

has more opportunities to come up with creative food mixtures.

QUESTION 3

Are there positions in the industry that avoid some of the negative

attributes of the industry as a whole?

Our industry’s positions would be able to avoid some of the negative

attributes of the industry as a whole like the hygiene of the

product and the manufacturing place will be taken care seriously as

we will register our product under ‘HALAL’.

Competitor Analysis

Our block has identified several indirect competitors as

below:-

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A. Sambal Burma Muslim Product – established since April

2013 and located at Kota Bharu, Kelantan.

B. Mama G Food Industries – established since October

2012 located at Selangor.

C. Sambal Ikan Bilis Comby – located at Pulau Pinang.

So far, we have not found any competitors in Sabah yet and these

competitors are located in the Peninsular Malaysia. Plus, these

competitors neither have ‘Halal’ certificate nor Ministry of Health

of Malaysia’s approve. Moreover, these competitor have no any other

type of condiments made, unlikely, our company have more types of

fried chillies in the market. Observing at the existing competitors,

our company have brighter future in this field to make more money.

BUSINESS MODEL CANVAS

Key partners

Supplier of fish

Our company choose the supplier Fung Seng Seafood Sdn Bhd Kota

Kinabalu to be our fish supplier. Address for this company is Lot

No. 7 & 8, Mangrove Road, Inanam Industrial Estate, Km 8, Jalan

Tuaran, Kota Kinabalu, Sabah, 88300. We chose this company because

the company is able to have a business partner well with our

company.

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This provider will deliver supplies to us in every week to

maintain the freshness of the fish itself and ensure our supply is

always in a consistent situation. These suppliers also cater to us

in choosing the right fish to be used as raw materials for our

products.

Supplier of dried shrimp

Our company choose the LDE NETWORK as our supplier for dried

shrimp. They are a supplier comes from Tawau, Sabah. We chose the

company because they can provide a quality dry law and can reduce

costs. To facilitate our production process, they will send the

supply dried shrimp every week for us. This is to ensure that our

process went smoothly and maintain.

Supplier for box

The Ever-Rich Packaging Sdn Bhd is a company that supplies

boxes to our company. This company is a company from Kuching,

Sarawak. They will supply the boxes to us for the purpose of keeping

our products once commercialized to the local market. They will

supply box once a month in the range 4000 to 5000 boxes.

Supplier of sticker and label

Sticker and Label Indahmanis the Packaging (s) S / B selected

to act as a supplier for our company stickers. Produced stickers are

intended to further promote our products. This company is located in

the City Supermarket, Mile 4, Jalan Utara, Sandakan, Sabah. They

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will produce and send the stickers in the estimated 60,000 to 70,000

stickers a month.

Supplier of plastic bottle

Syarikat Perniagaan Wakim Sdn Bhd, Address at 55B-4,Lorong Raja

Bot, Off Jalan Raja Alang, Kampung Baru,50300, Kuala Lumpur.

Telephone No.03-26921721, 03-26914297 is selected by our company for

supplying bottle screw type container ranging from 100 milligrams to

even as 20 kgs container for future huge dealer request. They able

to ship to Sabah in ship container containing verities sizes to meet

the suppliers demand. 40,000 pieces of ½ litre ship container could

be sent in one consignment and dependable for us to select the

plastic container sizes. On top of that we were given price

reduction if we order in ship container purchased which will reduce

our cost.

Key Activities

There are few important activities that we do to make sure that our

business operates in excellence performance. The activities involve

is planning and management, production, marketing, advertising,

distribution and selling.

The first steps that we have done in our company are a

planning and management activity that involves the creation and

maintenance of a plan and also forming our organisation. Planning

process is essential to the creation and refinement of a plan. We

all started our business by doing some brainstorming of the product

we want to make to start our business. All of us have agreed to

choose Sambal as our business product. After that, we have made our

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business plan so that we are on the right track to make sure that

our business will operate efficiently.

In production activity, it involves the activity of turning our idea

of business which is sambal into a real product. To produce our

product we need raw material such as anchovies, dried shrimp, dried

fish and meat as our main ingredient. The sambal will be produce in

four types according to the four main raw materials. We will use

machine and also worker to produce the product.

Next activity is marketing which is one of our platforms to impart

the value of our product to customers, for the purpose of selling

that product. Marketing can be looked at as our organizational

function and a set of processes for creating, delivering and

communicating value to customers, and managing customer

relationships in ways that will benefit our organization. We choose

advertising as our form of communication for marketing. Advertising

is an effective way to encourage and persuade an audience to buy our

product.

Product distribution is also the activities that we will do in our

business. Distribution is the process of making our product

available for consumer. We will distribute our product to

supermarket, convenience store and restaurant.

After distributing the product, our next activity is selling the

product. We are going to sell it at the supermarket, convenience

store and restaurant.

Key Resources

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Key resources of the ‘ Homemade Fried Chillies’ is that the raw

materials to fry the product like the dry chillies, onions, dry

shrimps, salted fish, fresh meat, anchovies and spices. That we

could get from the specific suppliers that we have mentioned in the

key partners. This product may not succsseful if we fail to get

several permanent suppliers of fried chillies because the main

ingredient of this product is the dried chillies. If we fail to get

for example the dry shrimps, we may still continue with the other

three choices.

Value proposition

Our product has several value propositions to achieve our

company’s goal. Fulfilled customer need is one of the value

propositions. Our product can fulfil customers need because our

product is variety in condiment. There are four flavour of our

product which is meat, anchovies, prawn, and salted fish. Customers

can choose their favourite flavour that meets their taste.

Furthermore, our product has a long durability to get still in

a fresh condition. Our product durability is six month to one year.

Once the bottle get open, customers can take the amount as many as

they want. After that, they can place it at everywhere as long as

the heat is not too high. For example, they can put it in room

temperature. So, customers don’t have any problem to place the

product in their home.

Besides that, our product price is affordable for all

customers. The price is suitable and affordable by every class of

customers. Our product price is around RM6 for each bottle. The

quantity and quality of our product is suitable and matching with

the price. Customer will satisfy with our product because we

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manufacture our product by our company factory. The product quality

is under control by our company and government policies.

Next, the bottle that our company use to place the product can

be reuse. The bottle size is not too small. After the food was

finish, customers can use the bottle to be a place to put something

else. Moreover, they can use the same bottle to get refill at our

company factory and our registered distributed.

Last but not least, our company product can be a good

companion for traveller. The size and weight of our product is very

suitable to bring it when customers are travelling. So that, our

product is one of the best product that can be pick to take when

travelling. Besides that, if there is someone that wants our product

but they are in somewhere faraway from our factory or our registered

distributed, they can ask their relative or someone that they know

to buy for them in a large amount.

Customer Relationships

Customer relationships are an effort to provide the information

technology strategy and marketing strategy that aims to establish

long-term relationships with customer. Even development process

within customer relationship that benefits the company by customer.

Communities

- Recycle 3R (reduce, reuse, recycle)

- Give support FAMA department Malaysia. Use their product to

our product

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Provide finished products

- Service delivery of finished products to the supermarket and

restaurant

- Give the discount example deposit and after sold the product

restaurant and supermarket can give us the full payment

Loyalty customer

- Service delivery of finished products to supermarket and

restaurant. Example: use the truck company and service pos

Addressing complaints or customer complaints

- Fixing the problem of customer complaints

- Use good language to entertain customer complaint

Channels

For our products distribution channels, we have decided to use

partnership (middleman + partner) as our distribution channel. Below

is the reason why we chose partnership channel.

1. How to reach customer?

A. A simple marketing channel consists of two parties which

is producer and the consumers. By using partnership as

our marketing channel, we will have intermediaries who

act as a middleman for our business. For us,

intermediaries can help us sell the product more

efficient and better than direct selling. By using

intermediaries, we can distribute our product to a wide

scope of consumers. Below is the flow how our products

will reach customers using middleman.

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B. Besides using a partnership channel, we will take another

incentive to market our product by supplying our product

to the supermarkets and convenience store.

Hypermarket/Supermarket - self-service retailers that provide

a full range of food products to consumers, as well as some

household products. Supermarkets can be high, medium, or low

range in terms of the prices they charge and the service and

variety of products they offer.

Convenience Store - miniature supermarkets. Many of them sell

gasoline and are open twenty-four hours a day. Often they are

located on corners, making it easy and fast for consumers.

Restaurants – For our early exposure, we will negotiate and

discussed with several restaurants. We will market our product

at their premises and both parties will get the benefits. For

our parties, we will be able to market our product and

customers will know about our new products. Since our product

is an additional condiment, the customers will attract to

taste our product with their prepared meals.

But, before we market our product into these two markets, we have to

make sure that we have a strong and trustworthy brand. Without a

strong brand, our product will be neglected by the consumers.

2. Marketing Channels

Since using internet as our marketing medium, we will concentrate

using social network for our early marketing channels and early27

exposure to our consumers. Below are the marketing channels that we

used:

A. Company Blog/Website

In planning, we will hire a designer to design our company website

which consumers can know the existence of TFE Company and our

product. The website also will consist of our company details, our

marketing range and our product manufacturing.

B. Facebook

Facebook is the biggest marketing medium for our company. Advantage

for is, Facebook is a free medium and the range of people who used

it is beyond of numbers. Thus, we created a page of TFE Company

account and will promote the page from time to time.

C. Instagram

Just like Facebook, Instagram also is a social network with an

infinity users now days. TFE Company will have its own Instagram and

our team will update the page with our company progress. Our

Instagram’s followers can tag our Instagram account in their

pictures and directly will be known by other users.

D. Online Delivery

From all social network channel mentioned above, we will delivered

our product to our customers using online delivery system. Customers

can choose which social network our company has to order our

product. And our team will process their order and will deliver

using postage system.

E. 10 spoons 1 bottle

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To expose our product and customers food tester, we will open booth

at any places with a high consumers. There, we will use 10 spoons 1

bottle technique. Which is a bottle of our product can be tested

with different 10 spoons by our customers. From there, our future

customers would be able to test the actual taste of our products. At

the booth also we will provide the selling of our product with a

promotion of special prices.

Customer Segment

Our consumer focus is the Malaysian citizen, As a Malaysian people

like to eat a spicy food like sambal our product will easily enter

the market place, and furthermore the materials for our products are

widely available in this country.

Our consumer focus is a supermarket, mini-market and restaurant.

Hypermarkets and supermarkets are becoming increasingly popular as

they provide convenience, offering a wider variety of products

ranging from packaged and processed foods, to fresh foods that

consumers would find at a wet market. These stores also offer

affordable dine-in restaurants, thereby changing the experience

from just shopping to a complete family outing. This is our

business opportunity to sell our products, people will find and get

our product easily, often there are located on corners, making it

easy and fast for customer to find our product. For restaurant, we

will be able to market our product and customer will know about our

new product, since our product is an additional condiment, the

customer will attract to taste our product with their prepared

meals.

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Halal Certification

With its large Muslim population, Islamic values remain important

drivers of products in Malaysia. It is expected that the halal

market will maintain its expansion beyond the food sector and

further into the non-food sector. As the government continues to

focus on Islamic funding through foreign direct investment, the

Malaysian halal market could open more doors to the Islamic world.

With the halal certification our Muslim customer will able to eat

and buy our product.

Except for users who have an allergy and children

People who have a seafood and meat allergy can’t eat our sambal;

allergy is a type of people who can’t eat a food like seafood or

meat. A food allergy is an adverse immune system to a food

protein. They are distinct from other adverse responses to food,

such as, food intolerance pharmacological reactions, and toxin-

mediated reaction. As our products are based on spicy children

cannot eat our sambal.

Cost Structure

1. Fixed costs

Salary /labor costs

The salary and fringe benefits for employees in the

manufacturing sector vary according to industry, location

and employment size. For our company, we just follow labor

costs to an employer who carries out professional activity

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classified under the Malaysia Standard Classification of

Occupations (MASCO) irrespective of the number of employees

employed. The common types of leave provided by our company

include annual leave, public holiday, sick leave, maternity

leave and compassionate leave. Our companies also provide

free medical treatment and hospitalization to our employees.

In our company, we give the additional benefits such as

provision of uniforms, transport, incentives payments, shift

allowance and insurance coverage. Bonus payments are given

by the company based on the companies’ performance and

individual performance.

The minimum wages rates from MASCO are as follows:-

Regional Areas Minimum Wages Rates

Monthly Hourly

Sabah RM800 RM3.85

Electricity

The electricity bill depends with the number and kinds of

appliances used, the way our company use it, and how long it

been used.

The appliances that cost the most to operate are the ones

that require the greatest amount of electricity to generate

heat, such as our furnace, water heater or range, or to

cool, such as the company air conditioning system.

Water

Water is a critical factor in food processing. It can

dramatically affect the quality of a product as well as

playing a role in sanitation. Boiling, steaming, and

simmering are used in cooking method. Water is also used for

dishwashing in our company daily routine.

Utility

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Other utility that can cost our company is communication

system like telephone, fax, internet, etc. It is important

for us to communicate with each other and to our client to

make profit in the business.

Maintenance

Maintenance, repair, and overhaul involve fixing any sort of

mechanical, plumbing or electrical device should it become

out of order or broken. This activity also includes

performing routine actions which keep the device in our

factory in working or to prevent trouble from arising, or to

restoring the company’s item in a state in which it can

perform its required function. This action includes the

combination of all technical and corresponding

administrative, managerial, and supervision actions by out

maintenance team.

2. Variable costs

Raw materials

There are some unprocessed natural products used in our

manufacture process to make the sambal. The items are

anchovies, dried shrimp, salted fish, dried fish, meat

(beef), onions, spices, salt, turmeric and oil.

Delivery costs

This cost is the amount of money it takes for our company to

manufacture and deliver our product.

Advertisement

Advertising is important to promote our product because it

can deliver the proper message to customers and prospective

customers. Our company use the advertising to convince our

customers that our product are the best, to enhance the

image of the company, to point out and create a need for our

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products, to reinforce the salespeople's individual

messages, to draw customers to the business, and to hold our

existing customers. Our company can use online advertising,

in-store advertising and consumer-generated advertising to

promote our product.

Marketing

Marketing is actually a process of communicating the value

of our product to the customers, for the purpose of selling

the company’s product.

Our target in marketing is to satisfy the needs and wants to

our customers through exchange processes and building long

term relationships with them.

It is important to us to set processes for creating,

delivering and communicating value to customers, and

managing customer relationships in ways that also benefit

the organization and our shareholders. Through market

analysis and market segmentation, our company can understand

consumer buying behavior and we can try our best to provide

superior customer value.

Revenue Streams

Service agreement

TFE Company will create a revenue stream by entering into a service

agreement with the customer. For example, the company will make

service agreement delivery to supermarkets, hypermarkets, restaurant

and minimarket which will be provided to the customer. For a monthly

fee, you come by; inspect the goods supplied and handling customer

problems there may be. This gives peace of mind to customers and

fixed income for our business.

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Referral

Our business TFE Company also will generate additional income by

referring. We will establish relationships with related but non-

competing businesses in our area and provide references. For

example, if we produce the condiment product, we may be set up a

referral program with local eateries such as restaurant. For example

when we TFE company sell our products to customers we will give

business cards to restaurant owners to store their suppliers for

supply of raw materials. If customers purchase goods and services

from local company’s supplier, we will get paid referral.

Product Add-Ones

Although we may especially business-driven, it does not mean that

TFE Company cannot sell additional products such as selling dried

anchovies, dried fish, container empty containers and so on in

supermarket, hypermarket and mini market also in restaurant. When a

customer pays for a service and goods, they may be more willing to

pay a little extra to keep their paid services. Every business has a

number of industry additional products that can be sold to customers

in the right context.

Credit payment.

TFE Company also get revenue stream from credit payment from

customer which make a payment using a credit card, debit card and

also using cheque payment in supermarket, mini market and

hypermarket. Our company or TFE Company will apply 2 percent

allowance for credits payment. This is another income to TFE

Company.

6.0 Conclusion

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The conclusion we have come up that we will proceed our idea to generate it to become our business product as the source of income of our company because we could see the future of our company is bright.

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