MARKETING PRINCIPAL(MKTG 3010)TOPIC: BUSINESS PLANBUSINESS NAME: CHILLAX SHOP

NAMEMATRIC NO.

AISYAH NURHUDA BT MOHD NAZRI1325960

AFIFAH NABILAH BT MOHAMAD SAFEI1321976

NUR AIYSHAH BT ABD MUNIM1324678

NURULAIN HUSNA BT AZMI1320654

NURFARAHANIM BT MOHD YAHAYA1324160

MOJEEB RAHMAN WAHAJ1212465

CHAUDHARY MUHAMMAD QASIM1317363

Lecturers Name : MADAM KALTHOM BT ABDULLAH Section : 5Session : Semester 2, 2014/2015TABLE OF CONTENTSDETAILSPAGES

TABLE OF CONTENTS

1.0 COMPANY OVERVIEW1.1 NAME OF THE BUSINESS1.2 EXECUTIVE SUMMARY1.2.1 LOGO1.2.2 MOTTO1.2.3 MISSION1.2.4 VISION1.2.5 OBJECTIVES1.2.6 PRODUCTS1.2.7 ORGANIZATIONAL STRUCTURE1.3 COMPANY OWNERSHIP

2.0 MARKETING ANALYSIS2.1 SWOT ANALYSIS2.1.1 STRENGTHS2.1.2 WEAKNESSES2.1.3 OPPORTUNITIES2.1.4 TREATS2.1 MARKETING OBJECTIVES2.2.1 SPECIFIC2.2.2 TIMELY2.3 TARGET MARKET2.3.1 POTENTIAL BUYERS2.3.2 TARGET CUSTOMERS

3.0 MARKETING STRATEGY3.1 MARKETING MIX3.1.1 PRODUCT3.1.2 PRICE3.1.3 PLACE3.1.4 PROMOTION

4.0 FINANCIAL PLAN4.1 CAPITAL CONTRIBUTION4.2 SALES BUDGET4.3 PRICING ANALYSIS4.4 STATEMENT OF CASH FLOW4.5 FINANCIAL STATEMENT4.5.1 COST OF GOODS MANUFACTURED4.5.2 COST OF GOODS SOLD4.5.3 BUDGETED INCOME STATEMENT4.5.4 BUDGETED BALANCE SHEET

5.0 IMPLEMENTATION AND CONTROL

CONCLUSION

APPENDIX23 - 24

1.0 BUSINESS OVERVIEW1.1 NAME OF THE COMPANYThe business name is CHILLAX SHOP. The word CHILLAX symbolize the combination of words chill and relax. It describes the customers feelings of chill and relax when enjoying our products. CHILLAX SHOP is established on 21st February 2015 by the agreement of 7 members of board of directors.

1.2 EXECUTIVE SUMMARYCHILLAX SHOP is anewindependent business that will be operated in International Islamic University Malaysia (IIUM) that serves mouth-watering desserts to the students. Unlike the other businesses, CHILLAX SHOP focuses on selling a delicious and affordable mouth-watering desserts that satisfy the customers need. CHILLAX SHOP sell delicious melty cheese cake and spaghetti that are suitable to be eaten throughout all generations regardless of their races and ages. Furthermore, the prices of the products are equivalent to the quality of the products served since the business aims to get a high profit as well as providing high quality yet affordable mouth-watering desserts to the students.Since CHILLAX SHOP will be operated in IIUM, the potential target customers are students, lecturers, staffs and also the visitors of IIUM. The products that will be sold are very popular among the students especially to those who are craving for some sweets, cheesy and western desserts. The quality is high and the taste is also more delicious than the one that are sold by the other sellers. CHILLAX SHOP implement the concept where the customer is always right. Therefore, fullfilling the customers needs and satisfactions is the top priority of the business. In addition, nowadays, small markets are continuously evolving and thus, causing the competition among the sellers and businesses grows day by day. However, in this situation, CHILLAX SHOP is at advantage where it is a few steps ahead of other businesses since its target market is an exploitable niche and the service is differentiated since the target market will still have similar tastes, less disposable income and less sensitivity to price.

1.2.1 LOGO

This chef hat represents the chefs activity to cook the product.CHILLAX is the name of the business which represents the combination of words Chill and Relax

The figure of a person holds a knife and a fork formed by the combination of plate, fork, knife, moustache and hands shows that our products are ready-to-eat food.

The word Shop represents the selling activities of the business.

This sentence represents the business slogan/motto which is Chillax with Spaghetti & Cheese.

1.2.2 MOTTOOur business motto is Chillax with Spaghetti & Cheese.

1.2.3 MISSIONS To ensure that each of our customers receives professional, friendly and courteous services from us. To make sure that our company provide food at a fair price, nutritional, well prepared meals by using only quality ingredients. We insist to sell all of our products during the Marketing Project Week. To ensure the customers satisfaction by fulfilling the customers demand and their needs. To earn the maximum profits and reduce the costs without ignoring the customers maximum satisfactions.

1.2.4 VISIONS To widen our business and serve the students with the best service. To be a profitable and competitive business in the future. To be the best and recognized food business in IIUM.

1.2.5 OBJECTIVES To apply the knowledge that we learn in MKTG 3010 in the real world. To make profit from the sales and donate a portion of it to the charity organisation.

1.2.6 PRODUCTSCHILLAX SHOP will offer the customers with mouth-watering desserts consist of Spaghetti Bolognese and Melty Cheese Cake. Spaghetti Bolognese will be made by our own chef while the Melty Cheese Cake will be ordered from a supplier. We use halal and tasty ingredients to cook the spaghetti and its sauce. The cakes are also bought from a recognized and halal certified supplier.

Spaghetti BologneseMelty Cheese Cake1.2.7 ORGANIZATIONAL STRUCTURE

Aisyah Nurhuda bt Mohd Nazri(MANAGING DIRECTOR)

Afifah Nabilah bt Mohamad Safei(ADMINISTRATIVE MANAGER)

Mojeeb Rahman Wahaj(PRODUCTION MANAGER)Nur Aiyshah bt Munim(FINANCIAL MANAGER)

Nurfarahanim bt Mohd Yahaya(OPERATIONAL MANAGER)Chaudhary Muhammad Qasim(CUSTOMER SERVICE MANAGER)

Nurulain Husna bt Azmi(MARKETING MANAGER)

1.3 COMPANY OWNERSHIPCHILLAX SHOP is a partnership business which is formed through an agreement between seven shareholders; Aisyah Nurhuda, Afifah Nabilah, Nur Aiyshah, Nurfarahanim, Nurul Ain Husna, Mojeeb Rahman and Mohd Qasim. The business will be based in International Islamic University Malaysia (IIUM) and will start operating during the Marketing Project Week.

2.0 MARKETING ANALYSIS SUMMARYCHILLAX SHOP aims to be the most leading business that serve foods to the students in International Islamic University Malaysia (IIUM). We use SWOT analysis to get to know the survival ability of the business. Then, we make sure that we have marketing objectives that need to be achieved as soon as the business starts. We find the potential customers to our business and decide who will be our main target market by doing the market segmentation analysis using some factors.

2.1 SWOT ANALYSISWe analyse the market using SWOT analysis by identifying and evaluating the business strengths, weaknesses, opportunity and threats. This analysis is very important to ensure the survival of CHILLAX SHOP in todays competitive business world and thus be a successful business in IIUM.

STRENGTHSWEAKNESSES

Members have knowledge in business. Have a good relationship with the customer. High quality of food. Too much spending on expenses. Products may be expensive to certain students. Financial matters.

OPPORTUNITIESTHREATS

Generate side income to cover daily expenses. Increase in demand for new products. High competitions among competitors. Changes in consumers income. Difficulties in dealing with suppliers.

2.1.1 STRENGTH Members have knowledge in business.Some of our members have experience in doing business. So, we can get some advices and tips from them to ensure that our business will be running smoothly.

Have a good relationship with the customers.Our main policy is customer is always right. Having a good relationship with the customers is one of the most important part to fulfill our business policy . In addition, CHILLAX SHOP also applies the marketing concept of customers orientation where we take serious concerns on the needs of the society.

High quality of food.We make some researches and surveys to get to know the suppliers who can provide us with high quality and mouth-watering melty cheese cakes at a lower cost so that we can sell them to the customers at a cheaper and affordable price. The ingredients of the spaghetti bolognese are also from high quality and halal ingredients.

2.1.2 WEAKNESSES Too much spending on expensesSince all of us are still students and do not have any kind of transports, we will incur some recurrent transportation expenses (for fuel and rental fees) to go to the supermarket to buy the ingredients.

Products might be very expensive to certain students.As our target market is mainly for the students, the products might be very expensive to them especially for those who do not have enough money.

Financial matters.We cannot simply sell our products without being concern on ones welfare. For instance, we purchase for high quality of food and ingredients at a high cost but after we add markup to the cost and adjusted the selling price to be an affordable price for all customers, the profits sometimes is lower and nearly zero. Hence, this situation sometimes would give financial conflicts to the business.

2.1.3 OPPORTUNITIES Increasing demand for the productsAfter all of the promotion strategies were done, more people will know about our products and this will increase the demand of our products.

2.1.4 THREATS High competitions among competitorsCHILLAX SHOP has a quite number of competitors. As we know, CHILLAX SHOP offers mouth-watering desserts which are very demanded by the customers and also favourable by the sellers to sell this products.

Changes in consumers incomeConsumer income is one of the factors that will influence the consumers behaviour and consumers preferences. If the personal income of the consumers decreases, their purchasing power towards our products will also decreases. This is because, the consumer will be wiser in spending their money. They will consider between two aspects which are their income and the benefits or impact of buying the products.

Difficulties in dealing with suppliers Miscommunication is always being the most important thing that should be avoid when dealing with either suppliers or customers. Since we are communication with the suppliers through phone, there might be some chances for this miscommunication problem to happen between us. This is the main difficulties that we have to face when making a deal with them.

2.2 MARKETING OBJECTIVESCHILLAX SHOPs aim is to retain its position as the leading distributor of delicious spaghetti bolognese and melty cheese cakes in IIUM and to gain more market shares. The marketing objectives of the company are best described as :1. To achieve the integrity and image of our products.2. To provide the highest possible standard of services to our customers.3. To ensure the business achieves, maintains and grows an adequate level of profitability.

2.2.1 SPECIFICWithin a month, we are going to set up a stall in IIUM to sell our products during the Marketing Project Week, in which, it will allow us to get benefits financially from our favorite food. At the beginning of the period, we will have an inventory of 20 plates of spaghetti bolognese and 20 pieces of melty cheese cakes. As what we have discussed in our meeting, we aims to sell around 20 plates of spaghetti bolognese and 4 pieces of melty cheese cake per day by building customer relationships through the words of mouth, referrals and also local networking.Our income per day will be approximately around RM 114. Our capital investment is RM 350. We will also offer some discounts and promotion price as well to boost our sales. If the business runs smoothly, we are willing to add more stocks into our inventory.

2.2.2 TIMELYOur booth will commence on week 13 during the Marketing Project Week and will last for a week. Each employee is expected to attend the whole week until the end of the Marketing Project Week. We want to increase our revenue throughout the week. We will try to increase the rate of the customers who give positive feedback to our customers.In our marketing plan, we plan to establishe a happy hour time, in which we will give discounts on our products during the hour which is from 3 pm to 4 pm everyday.

2.3 TARGET MARKETSince we are doing a small business in IIUM, our target market involves two categories of customers:1. Potential customers (buyer).2. Target costumer.

2.3.1 POTENTIAL BUYERPotential customers are the individual who is capable of becoming a purchaser of our products.By knowing who are the potential customers of our products, we can determine the target market of our products. Our potential customers are all the students, lecturers, staffs and the visitors of IIUM and not to forget, also those who are willing to buy our product.

2.3.2 TARGET COSTUMER (TARGET MARKET)The key group of potential customers is known as our target customers, the group of people who are most likely to buy our products. For the segmentation of this category we use the following factors: Geographic Demographic Psychographics Behavioral

GEOGRAPHICWe are doing a small business and our service is just limited to IIUM which is located in Kuala Lumpur. We cannot offer our products to those people who are living outside the university. However, if they are able to come to our stall inside IIUM we can also sell to them.

DEMOGRAPHICSegmentation according to demography is based on the variables such as age, gender, occupation, religion, education level and nationality. Age: Basically our product is not just for people with a specific range of age, it means that everyone (teens, child, old men andwomen) can consume it. But our main target is the students with the age of 18-40 years old. Gender: We are selling our products to both male and female students in IIUM. Income: Our products are affordable in price, therefore, students in each category (high, medium, and even low) level of income can buy them. Education: We are selling cheese cake to the students of any level of education (undergraduate, post graduate, PHD, and even to lecturers) who are living in IIUM. Religion: Our main target is Muslim consumer, because our product is produced using halal ingredients and we are selling it in IIUM where the majority of the students are Muslim. Nationality: There is no limitation of races and nationality of our costumers. The reason is that we are doing business in an international and multi-cultural university (IIUM) which have student from all over the world, Asia, Africa, Europe and America.

PSYCHOGRAPHICSIn this segment, we are trying to collect analysis of consumer lifestyles in order to create a detailed customer profile. It may be impossible for us to conduct a complete psychographic research just by asking consumers to agree or disagree with activities, interests, opinions statements. But we just simply put it as follows: Lifestyles: We are mostly focusing on individual costumer and students of IIUM. Interest: We are attracting most of those customers who are interested in our products.

BEHAVIORALThis grouping patterns may include such behaviors as spending, occasion, usage, and desired benefits. Usage: we are willing to have all types (light, medium and heavy user groups) of our products consumer. Occasions: We encourage our customers to eat our products whenever and wherever they want at any occasions because our products is just mouth-watering desserts which are not related or bound to any specific eating time.

3.0 MARKETING STRATEGY3.1 MARKETING MIX3.1.1 PRODUCT STRATEGYWe have done a survey to know which food that students are craving or demanding for. The result shows that students want food that is affordable yet high quality and quantity that can give them higher satisfactions. Then, we decided to sell melty cheese cake and spaghetti bolognese. Our product is a consumer product and categorized under convenience product since the products are bought to satisfy an individual needs, craving and not expensive. The supplier for melty cheese cake is ZAD Resources Sdn. Bhd. we found this supplier by the recommendation of our friends. The company only produces melty cheese cakes with 7 different flavors which give 7 different tastes. And of course all of those flavors are tasty. Meanwhile, spaghetti bolognese is a manufacturing product where we cook the spaghetti using high quality and halal ingredients on our own.Furthermore, our products packaging uses persuasive labelling. The label on the packaging has a very unique design that is very persuasive. The label also promotes our business since we also put the details of our business in that label.

3.1.2 PRICE STRATEGYBefore we priced our products, we did a research on the current price of the products in the market. We realized that some sellers sell the products at a very high price but the quality and quantity of the food cannot satisfy the consumer needs. So, we decided to put a suitable and affordable price on our products so that all customers can satisfy their needs with a high quality yet affordable products. The prices are as follows: Melty Cheese Cake: RM 6 each Spaghetti Bolognese: RM 4.50 each.

3.1.3 PLACE STRATEGYCHILLAX SHOP will set up a stall in IIUM during the Marketing Project Week in order to sell the products which are spaghetti bolognese and melty cheese cake. Both potential and target customers can get the products by visiting our stall or by placing their orders on facebook using hashtag Chillax (#Chillax). Delivery services will also be provided if the demand increases.

3.1.4 PROMOTION STRATEGYCHILLAX SHOP will advertise the products through posters, flyers, social medias and by the circle of influence, where each of the members will promote the products to their fellow friends and families. Besides, we will launch the Hashtag Chillax (#Chillax) campaign on facebook, instagram and twitter to promote our stall and products. Then, we will also provide a happy hour time for the customers to buy our products at a cheaper price.

4.0 FINANCIAL PLAN4.1 CAPITAL CONTRIBUTIONTo start the business, each of the members will contribute RM 50 as the capital investment. In total, it will bring in RM 350 amount of cash into the business.

4.2 SALES BUDGETCHILLAX SHOPSales budget for 5 days(Spagheti)

DAY 1DAY 2DAY 3DAY 4DAY 5TOTAL(WEEK)

Budgeted sales (packets)

2020202020100

Selling price per packet

4.504.504.50

4.504.504.50

Sales revenue (RM)

9090909090450

CHILLAX SHOPSales budget for 5 days(Cheese cake)

DAY 1DAY 2DAY 3DAY 4DAY 5TOTAL(WEEK)

Budgeted sales (packets)

4444420

Selling price per packet

6.006.006.006.006.006.00

Sales revenue (RM)

24.0024.0024.0024.0024.00120

4.3 PRICING ANALYSISThe business uses cost-plus pricing method in order to set up the product price. The price is affordable to cover all the cost incurred in making of the product.COST-PLUS PRICINGPrice = Cost + (Markup percentage x Cost) Spaghetti = 3.50 + (30% x 3.50) = RM4.50Cheese cake = 4.00 + (50% x 4.00) = RM 6.00

4.4 CASH FLOW STATEMENTCHILLAX SHOPStatement of Cash FlowDAY 1DAY 2DAY 3DAY 4DAY 5

Starting Cash350.00373.00396.00419.00442.00

Cash Receipts:Sales - spaghetti -cheese cake 90.0024.0090.0024.0090.0024.0090.0024.0090.0024.00

TOTAL (RM)114.00114.00114.00114.00114.00

Cash Payments:Cost of production for -spaghetti-cheese cake Advertising Transportation

70.0016.002.003.00

70.0016.002.003.00

70.0016.002.003.00

70.0016.002.003.00

70.0016.002.003.00

TOTAL (RM)(91.00)(91.00)(91.00)(91.00)(91.00)

CASH BALANCE (RM)373.00396.00419.00442.00465.00

4.5 FINANCIAL STATEMENT4.5.1 COST OF GOODS MANUFACTUREDCHILLAX SHOPSchedule of Cost of Goods Manufactured per dayRMRM

Direct Material: Raw material Inventory,Beginning-

Add: Purchases of raw materials70.00

Raw materials available for use70.00

Less: Raw material inventory, Ending-

Raw material used70.00

Manufacturing Overhead:

Container and spoon30.00

Total Manufacturing Overhead30.00

Total Manufacturing Costs100.00

Add: Work-in-process inventory, Beginning-

Subtotal100.00

Less: Work-in-process inventory, Ending-

Cost of goods manufacturedRM 100.00

4.5.2 COST OF GOODS SOLDCHILLAX SHOPSchedule of Cost of Goods Manufactured per dayRM

Cost of goods manufactured100.00

Add: Beginning finished-goods inventory-

Cost of goods available for sale100.00

Less: Ending finished-goods inventory-

Cost of goods soldRM 100.00

4.5.3 BUDGETED INCOME STATEMENTCHILLAX SHOPBudgeted Income Statement for a weekRMRM

Sales Revenue

Spaghetti450.00

Cheese Cake120.00

570.00

Less: Cost of Goods Sold

Spaghetti350.00

Cheese cake80.00

430.00

Gross Profit140.00

Less: Operating Expenses

Advertising 10.00

Transportation15.00

Total Operating Expenses25.00

Net IncomeRM115.00

4.5.4 BUDGETED BALANCE SHEETCHILLAX SHOPBudgeted Balance Sheet for a weekRMRM

Current Assets

Cash465.00

Total Assets465.00

Liabilities-

Owner Equity

Capital 350.00

Net Income115.00

Total Liabilities and Owner Equity465.00

- 2 -

5.0 IMPLEMENTATION AND CONTROLWEEK/ACTIVITYPERSON IN CHARGE(PIC)23456789101112131415

ACTION, IMPLEMENTATION AND CONTROLLING PHASES

1. Collect money from each members for the capital investment (RM 50 each / RM 350 in total).Aiyshah Munim

2. Find and make a deal with Melty Cheese Cake supplier. (Analyze and choose the best supplier that we can get).Aisyah Nurhuda, Farahanim

3. Find the place to buy Spaghetti Bolognese ingredients (Choose the least cost but high quality and halal ingredients).Afifah Nabilah, Ain Husna

4. Starting to promote the upcoming business for Marketing Project Week (Invite as many students as we can to come to our booth later on).Ain Husna, Mojeeb, Qasim

5. Order 20 boxes of Melty Cheese Cake from the suppliers (Products should be received the day before the Marketing Project Week started).Aisyah Nurhuda,Farahanim

6. Buy ingredients to make Spaghetti Bolognese.

Afifah Nabilah, Ain Husna, Aiyshah

MARKETING PROJECT WEEK

1. Cook Spaghetti bolognese at 4.30 am everyday throughout the project week.Afifah, Aisyah, Aiyshah

2. Prepare for the business presentation.Mojeeb, Qasim, Farahanim

3. Collecting datas and records for business reports.(Taking pictures and calculating the cash inflow and outflow).Mojeeb, Qasim, Aiyshah, Ain Husna

4. Develop and finish the business report.Farahanim,Ain Husna,Mojeeb, Qasim, Aiyshah, Afifah, Aisyah Nurhuda

1. Submit business report (Due date: Monday, 11th May 2015 before 5 pm)Afifah

2. EvaluationLecturers

CONCLUSIONThis marketing project proved to be helpful to all of us. We were able to plan and execute a business in detail even though our business is small and did not get a lot of profit. From the report, we have learnt a lot about the process of starting up a business. We gained a lot of experience how to handle the business as well as the operation and what a business has to undergo to become successful by conducting this report. In addition, we have also learnt about the risk we have to face and how to overcome the risks. Through perseverance and hard work, we were successful to achieve our budget. This project also helps to enhance our entrepreneurship skills. In the near future, we are looking forward to continue our business venture, Insha Allah.

APPENDIX