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
15
( 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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