MARKETING PRINCIPAL

(MKTG 3010)

TOPIC: BUSINESS PLAN

BUSINESS NAME: CHILLAX SHOP

NAME MATRIC NO.

AISYAH NURHUDA BT MOHD NAZRI 1325960

AFIFAH NABILAH BT MOHAMAD SAFEI 1321976

NUR AIYSHAH BT ABD MUNI’M 1324678

NURULAIN HUSNA BT AZMI 1320654

NURFARAHANIM BT MOHD YAHAYA 1324160

MOJEEB RAHMAN WAHAJ 1212465

CHAUDHARY MUHAMMAD QASIM 1317363

Lecturer’s Name : MADAM KALTHOM BT ABDULLAH

Section : 5

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Session : Semester 2, 2014/2015

TABLE OF CONTENTS

DETAILS PAGES

TABLE OF CONTENTS

1.0 COMPANY OVERVIEW

1.1 NAME OF THE BUSINESS

1.2 EXECUTIVE SUMMARY

1.2.1 LOGO

1.2.2 MOTTO

1.2.3 MISSION

1.2.4 VISION

1.2.5 OBJECTIVES

1.2.6 PRODUCTS

1.2.7 ORGANIZATIONAL STRUCTURE

1.3 COMPANY OWNERSHIP

2.0 MARKETING ANALYSIS

2.1 SWOT ANALYSIS

2.1.1 STRENGTHS

2.1.2 WEAKNESSES

2.1.3 OPPORTUNITIES

2.1.4 TREATS

2.1 MARKETING OBJECTIVES

2.2.1 SPECIFIC

2.2.2 TIMELY

2.3 TARGET MARKET

2.3.1 POTENTIAL BUYERS

2.3.2 TARGET CUSTOMERS

3.0 MARKETING STRATEGY

3.1 MARKETING MIX

3.1.1 PRODUCT

3.1.2 PRICE

3.1.3 PLACE

3.1.4 PROMOTION

4.0 FINANCIAL PLAN

4.1 CAPITAL CONTRIBUTION

4.2 SALES BUDGET

4.3 PRICING ANALYSIS

4.4 STATEMENT OF CASH FLOW

4.5 FINANCIAL STATEMENT

4.5.1 COST OF GOODS MANUFACTURED

4.5.2 COST OF GOODS SOLD

4.5.3 BUDGETED INCOME STATEMENT

4.5.4 BUDGETED BALANCE SHEET

5.0 IMPLEMENTATION AND CONTROL

CONCLUSION

APPENDIX 23 - 24

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1.0 BUSINESS OVERVIEW

1.1 NAME OF THE COMPANY

The 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 SUMMARY

CHILLAX SHOP is a new independent 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.

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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

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.

CHILLAX is the name of the business

which represents the combination of

words ‘Chill’ and ‘Relax’

This chef hat represents

the chef’s activity to cook

the product.

This sentence represents the business’ slogan/motto

which is ‘Chillax with Spaghetti & Cheese’.

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1.2.2 MOTTO

Our 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.

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1.2.6 PRODUCTS

CHILLAX 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.

1.2.7 ORGANIZATIONAL STRUCTURE

Melty Cheese Cake Spaghetti Bolognese

Aisyah Nurhuda bt Mohd Nazri

(MANAGING DIRECTOR)

Afifah Nabilah bt Mohamad Safei

(ADMINISTRATIVE MANAGER)

Nur Aiyshah bt Muni’m

(FINANCIAL MANAGER)

Nurfarahanim bt Mohd Yahaya

(OPERATIONAL MANAGER)

Mojeeb Rahman Wahaj

(PRODUCTION MANAGER)

Chaudhary Muhammad Qasim

(CUSTOMER SERVICE MANAGER)

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1.3 COMPANY OWNERSHIP

CHILLAX 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 SUMMARY

CHILLAX 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 ANALYSIS

We 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.

STRENGTHS WEAKNESSES

Nurulain Husna bt Azmi

(MARKETING MANAGER)

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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.

OPPORTUNITIES THREATS

Generate side income to cover daily

expenses.

Increase in demand for new products.

High competitions among competitors.

Changes in consumer’s 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.

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2.1.2 WEAKNESSES

Too much spending on expenses

Since 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 products

After all of the promotion strategies were done, more people will know about our

products and this will increase the demand of our products.

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2.1.4 THREATS

High competitions among competitors

CHILLAX 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 consumer’s income

Consumer income is one of the factors that will influence the consumer’s behaviour

and consumer’s 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 OBJECTIVES

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CHILLAX SHOP’s 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 SPECIFIC

Within 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 TIMELY

Our 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.

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2.3 TARGET MARKET

Since 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 BUYER

Potential 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

GEOGRAPHIC

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We 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.

DEMOGRAPHIC

Segmentation 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.

PSYCHOGRAPHICS

In 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

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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.

BEHAVIORAL

This 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 STRATEGY

3.1 MARKETING MIX

3.1.1 PRODUCT STRATEGY

We 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

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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 STRATEGY

Before 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 STRATEGY

CHILLAX 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

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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 STRATEGY

CHILLAX 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 PLAN

4.1 CAPITAL CONTRIBUTION

To 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 BUDGET

CHILLAX SHOP

Sales budget for 5 days

(Spagheti)

DAY 1 DAY 2 DAY 3 DAY 4 DAY 5 TOTAL

(WEEK)

Budgeted sales

(packets)

20

20

20

20

20

100

Selling price per

packet

4.50

4.50

4.50

4.50

4.50

4.50

Sales revenue (RM)

90

90

90

90

90

450

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CHILLAX SHOP

Sales budget for 5 days

(Cheese cake)

DAY 1 DAY 2 DAY 3 DAY 4 DAY 5 TOTAL

(WEEK)

Budgeted sales (packets)

4

4

4

4

4

20

Selling price per packet

6.00

6.00

6.00

6.00

6.00

6.00

Sales revenue (RM)

24.00

24.00

24.00

24.00

24.00

120

4.3 PRICING ANALYSIS

The 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 PRICING

Price = Cost + (Markup percentage x Cost)

Spaghetti = 3.50 + (30% x 3.50)

= RM4.50

Cheese cake = 4.00 + (50% x 4.00)

= RM 6.00

4.4 CASH FLOW STATEMENT

CHILLAX SHOP

Statement of Cash Flow

DAY 1 DAY 2 DAY 3 DAY 4 DAY 5

Starting Cash 350.00 373.00 396.00 419.00 442.00

Cash Receipts:

Sales - spaghetti

-cheese cake

90.00

24.00

90.00

24.00

90.00

24.00

90.00

24.00

90.00

24.00

TOTAL (RM) 114.00 114.00 114.00 114.00 114.00

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Cash Payments:

Cost of production for -spaghetti

-cheese cake Advertising

Transportation

70.00

16.00 2.00

3.00

70.00

16.00 2.00

3.00

70.00

16.00 2.00

3.00

70.00

16.00 2.00

3.00

70.00

16.00 2.00

3.00

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

CASH BALANCE (RM) 373.00 396.00 419.00 442.00 465.00

4.5 FINANCIAL STATEMENT

4.5.1 COST OF GOODS MANUFACTURED

CHILLAX SHOP

Schedule of Cost of Goods Manufactured per day

RM RM

Direct Material: Raw material Inventory,Beginning -

Add: Purchases of raw materials 70.00

Raw materials available for use 70.00

Less: Raw material inventory, Ending -

Raw material used 70.00

Manufacturing Overhead:

Container and spoon 30.00

Total Manufacturing Overhead 30.00

Total Manufacturing Costs 100.00

Add: Work-in-process inventory, Beginning -

Subtotal 100.00

Less: Work-in-process inventory, Ending -

Cost of goods manufactured RM 100.00

4.5.2 COST OF GOODS SOLD

CHILLAX SHOP

Schedule of Cost of Goods Manufactured per day

RM

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Cost of goods manufactured 100.00

Add: Beginning finished-goods inventory -

Cost of goods available for sale 100.00

Less: Ending finished-goods inventory -

Cost of goods sold RM 100.00

4.5.3 BUDGETED INCOME STATEMENT

CHILLAX SHOP

Budgeted Income Statement for a week

RM RM

Sales Revenue

Spaghetti 450.00

Cheese Cake 120.00

570.00

Less: Cost of Goods Sold

Spaghetti 350.00

Cheese cake 80.00

430.00

Gross Profit 140.00

Less: Operating Expenses

Advertising 10.00

Transportation 15.00

Total Operating Expenses 25.00

Net Income RM115.00

4.5.4 BUDGETED BALANCE SHEET

CHILLAX SHOP

Budgeted Balance Sheet for a week

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RM RM

Current Assets

Cash 465.00

Total Assets 465.00

Liabilities -

Owner Equity

Capital 350.00

Net Income 115.00

Total Liabilities and Owner Equity 465.00

5.0 IMPLEMENTATION AND CONTROL

WEEK/ACTIVITY

PERSON

IN

CHARGE

(PIC)

2

3

4

5

6

7

8

9

10

11

12

13

14

15

ACTION, IMPLEMENTATION AND CONTROLLING PHASES

1. Collect money from each members for the capital

investment (RM 50 each / RM 350 in total).

Aiyshah

Muni’m

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

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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. Evaluation Lecturers

CONCLUSION

This 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.

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APPENDIX

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