Introduction to business project 1 (business proposal)
Name of group members: Yip Chin Seng (0311956)Lee Yuan June (0311128)Kelvin Chiew Kah Kheng (0311848)Module: Assignment 1Session: January 2013
1. Introduction1.1 Name of companyAfter discuss with my business partner Kelvin and June, we decided toname our company as the ECO-mobile SDN BHD. ECO-mobile is a localand newly established company in Malaysia.1.2 Nature of businessBasically, ECO-mobile is running a phone accessories business. ECO-mobile is act as the manufacturer and also the distributor. ECO-mobileproduces eco phone accessories and selling other phone accessoriessuch as phone charger, phone replacement battery and so on.1.3 Industry profileMalaysia’s phone accessories industry has a long-standing reputation asa high quality, low cost producer and increasingly the delivery of highquality value-added and speciality products. The Malaysian phoneaccessories industry has grown rapidly in recent years. Growth is seennot only in terms of numbers but more visible in terms of size, investmenton structure and modernization in operation. It is because mobile phone isa trend and modern people cannot live without mobile phone.1.4 Location of the businessECO-mobile SDN BHD is located in the Bukit Bintang which is the wellknown area in Kuala Lumpur. Bukit Bintang is the main shopping andentertainment area in Kuala Lumpur. Furthermore, people nowadays areattracted for the shopping mall, fine dining and so on. From the mapattached, ECO-mobile Sdn Bhd is surrounded by shopping malls such asPavilion, Times Square and Sungai Wang. The business is growingrapidly because these places are always visited by peoples.
1.5 Factor in selecting the proposed businessThere are few reasons that ECO-mobile is chosen as the proposedbusiness. The first reason is peoples nowadays own a mobile phone andthey cannot live with a mobile phone, so ECO-mobile selling the phoneaccessories for every types of mobile phone or smart phone such asApple, Samsung, Sony and so on. Besides that, most of the teenager whoown a phone would like to decorate their phone with a beautiful and nicephone case so that ECO-mobile will also selling phone case with variousdesign. Furthermore, ECO-mobile also selling eco product such as ecophone case. Lastly, ECO-mobile is one of the companies generate a highprofit in a short period of time. Therefore, there are some values to doresearch on it.Location of ECO-mobile SDN BHD
2. Market Analysis2.1 Market sizeOur branch is located in Sunway Pyramid, along the Asian Avenue which isthe peak area of the shopping centre. The target market is teenagers with ourestimated yearly income of RM240,000. On the other hand, our maincompany in the Bukit Bintang area would target more on family users andteenagers with the revenue of RM1000,000 per year. With the advertisementand promotion on older accessories it may boost the amount of RM250,000per year.2.2 Potential CompetitorsThe main group of potential competitors is the other phone accessoriesretailer which is located in the same area in both Asian Avenue and BukitBintang. In this case, the other retailer for the phone accessories may rangefrom small individual business to bigger branch such as Belkin and Melkco.Unlike other business, smartphone accessories competitors are moreadvanced that they may offer higher quality and uniqueness items.2.3 Competitors Strength and WeaknessAs the strength of the competitors, they are very strong in getting nicelydesigned phone case and in an affordable price. While in the weaknessaspect, they tend to more focus on the design but forget about the quality oftheir product, this gives us more advantages to attract the customers as ourphone cases are more environmental friendly and in good quality.2.4 Customers and Their BackgroundWe mainly target on teenagers that study in secondary school or in universitywith either working or not working. Besides, these teenagers would probablyfrom Bukit Bintang and Subang area and have more demand on quality anduniqueness of the products as our products are manufactured eco friendlyand thus it add some uniqueness.
MarketingStrategy ofEco MobileSDN BHDpricepromotionproductplace3. Marketing StrategiesIn the area Bukit Bintang of Kuala Lumpur, there are lots of competitorsaround in the area as phone accessory seller. Most of the competitors operatethe same products and service that has a same target market, which is maingroup of teenagers. The strengths of the competitors may get the stock bylower price from the wholesaler. Most of the competitors are selling theirproducts by setting the booth in the gigantic mall with various kinds ofpromotion. Beside in strengths, all of the competitors have their weakness intheir business. The weaknesses of the competitors are the quality of theproducts and the type of the material used to produce their products. Ourproducts are produced based on 3R concept, we have an advantage of this.Most of the customers are confidence with the quality of the product from EcoMobile SDN BHD.To be successful in markets in which economic growth has leveled and inwhich there exist many competitors who follow the marketing concept, a well-developed strategy is required. The marketing strategies consist of four keysof variables well known as 4Ps marketing strategy.
4. Management Strategies4.1 Legal StructureOur business uses partnership structure as we both require a small amount ofcapital to start our business and we are able to divide the losses together.Moreover, we know each other very well and believe that we can cooperatetogether so that we may divide our work. Besides, the decision making iseasier.4.2 Job ScopeGeneralManagerAssistantGeneralManagerGeneralSupervisorHumanResourcesSupervisorAccountingSupervisorResearch &DevelopmentSupervisorMarketingSupervisor
4.3 ManpowerAccounting Clerk 3 personSales Officer 2 personDesigner 2 personMachine Operator 1 personGeneral Manager Determine the goals and plan outsuitable strategy in order toachieve the goals.Assistant General Manager To prevent the strategy fromstraying off the path and assistgeneral manager in planning.General Supervisor Projecting the goals to all thesupervisors and make sure thesupervisors complete their role.Human Resources Supervisor Recruit staff member, makeimprovement on how the staffworks and settle compliant aboutthe staff.Accounting Supervisor Calculate the monthly expenses,analyses the monthly income andreport sales taxes to generalsupervisor.Research & DevelopmentSupervisorDevelop new ideas for theproducts without straying off fromthe objectives and make researchon current trend of accessories.Marketing Supervisor Plan new strategies or campaignfor the market and analysescurrent competitor weakness.
5. Financial Plan5.1 Sales ForecastAccording to the forecast, the profit earn are increasing year by year. This isbecause we have the confidence that our company will be more stable andpopular.Year MonthSalesForecast (RM)1 1 20,0002 22,0003 23,0004 17,0005 21,0006 18,0007 19,0008 19,0009 20,10010 23,00011 24,00012 25.000Total 251,100Year MonthSalesForecast (RM)2 1 23,0002 25,0003 25,0004 23,0005 22,0006 21,0007 20,5008 20,5009 21,10010 24,00011 25,00012 26,000Total 276,100
SummaryIn conclusion, ECO-mobile will have well performance after thebusiness started. The crucial factors that lead to well performance of ECO-mobile are the marketing plan, financial plan, and operation plan. In terms ofcompetitors, there are a lot of competitors in phone accessories industry asdiscussed in the earlier part. Therefore, the company should always observeits competitors and do market survey in order to improve the products andservices. The recommendation given to ECO-mobile is to have morepromotions and ask for feedback from customers.The main objective of the company is to give the best quality ofproducts and services to its customers. It is compatible to its mission andvision in order to achieve the goals of the company.