1. MME3022 INTEGRATED ENTREPRUENERSHIP
ASSIGNMEN 2:
BUSINESS PLANNING(BUTTER GRATER)
NAME : MUHAMMAD AIMAN BIN MOHD ISHAK
MATRICES : D20142069318
LECTURER : DR. NOOR ANIDA ZARIA BINTI MOHD NOOR
DUE DATE : 31/10/18
2. 1.0 Executive Summary
The purpose of this writing is to elaborate our company
innovative product that we will produce, which is we named
it Butter Grater. In here also we will provide the business
decription, overview of the product, product cost, financial
plan, and other more content. We are targeting various
segment in the consumer and business market, taking
advantages of modern appearance of modern kitchen design
in terms of the best quality in affordable price to suit various
segment of clients. We can also compete with many company
or retail that execute modern kitchen products because our products offer a unique combination of
modern features and functionality at a very competitive value-added price.
The writing is also to assist in setting up the marketing and management plan that will assure
successful and profitable product processing, implementation, and also to provide realiable manual
for market segment scope and paying method for customer.
2.0 Business Operation
The Kitchen Star Trading(KST) is a start-up modern kitchen product retail establisment located
in Hulu Selangor. KST expects to catch the interest of a regular loyal customer base with its broad
variety of modern kitchen tool products. The company plan to build a strong market position in the
town, due to many same competiton that also provide modern kitchen tool stuff.
KST aims to offer its products at a competitive price to meet the demand of the middle-to
higher-income local market area residents and tourists. KST is incorporated in the state of Batang
Kali. It is equally owned and managed by me and my partner. I has extensive experience in sales,
marketing, and management, while my partner brings experiance in the area of finance
administration, and have background in Diploma Computer Design Technology which we need for
innovative idea for producing functioning modern kitchen tools.
3. KST aims to offer high quality modern kitchen product at a competitive price to meet the
demand of the middle- to higher-income local market area residents and tourists.
3.0 Information About Product
• Made of high quality material,good toughness,durable and safe.
The product that we plan to produce will be equiped with a good material that is not
harmless even for children to use, and can be use for a long time.
• Convenient to use and easy cleaning.
It will help to grater cold butter easier for cooks work, and can be easily dissamble to clean
it.
• Ideal helper for baby food supplement making.
This product does not solely use for grating butter, but also other substance that is soft and
can be shredded.
• Can be used for grinding cheese,butter,fruits,vegetable,etc.
• Keep your kitchen tidy and clean.
This product can avoid causing grated stuff mess up our kitchen.
• Make your food making easier and time saving.
People will not have difficulty to grated cook stuff and can save more time to be in the
kitchen.
4. 4.0 Marketing Plan
Today we can see there is a lot kitchen retail industry around Selangor recently has a rapid
growth. The AD Alat Dapur stimulates consumption of hot beverages throughout the year.
Our starting plan is wants to establish a large regular customer base, and will therefore
concentrate its business and marketing on local residents, which will be the dominant target market
around Hulu Selangor first. This will establish a healthy, consistent revenue base to ensure stability
of the business. In addition, tourist traffic is expected to comprise approximately 25% of the
revenues. High visibility and competitive products and service are critical to capture this segment
of the market. Malaysia’s population in year 2018 is estimated at 32.4 million, and Selangor
registered the highest population percentage in the country this year at 19.9%. As a result KST will
leverage this trend to grow our business. KST forecast their market to grow at 30% to 40% for the
next three years.
4.1 Marketplace Analysis
The Kitchen Star Trading(KST) posses a good information about the market and know
a great deal about common attribute of the most prized and loyal customer. KST will leverage
this information to better understand who is served, their specific needs, and how KST can
better communicate with them.
4.2 Target Market Segment
KST focuses on the middle- and upper-income markets. These market segments consume the
majority of modern kitchen products.
• Local Residents
5. KST wants to establish a large regular customer base. This will establish a healthy, consistent
revenue base to ensure stability of the business.
• Tourists
Tourist traffic comprises approximately 35% of the revenues. High visibility and competitive
products and service are critical to capture this segment of the market.
4.3 Product Price
For the product price, our company decide to put it on range of MYR20 to MYR25 for
marketing price. This is due to competitive price so our product will not be seen as too
expensive and at affordable price.
4.4 Promotion
KST will distinguish itself by marketing practical product with specific niche within the
modern kitchen product, recognize with a specious design, a very good quality and competitive
price in addition, we will provide a one year warranty for our product that have faulty, or clients
excidently broke so that customer will feel no loss in buying our product.
5.0 Operational Plan
The day to day operation of our Kitchen Star Trading business include a focus on providng the
best customer service as well as a fun family atmosphere.
5.1 Payment Method
• Credit Cards
6. Credit cards are by far the most common form of online payments. Credit card issuers are
typically banks and credit unions, and they have done a great job popularizing this method of
payment by marketing various credit cards to different segments of the consumer population.
When submitting credit card payments to your gateway, it should typically take seconds to
submit a payment and receive an answer. It might take longer depending on traffic, but it usually
takes no longer than 10 seconds for the transaction to complete.
• Debit Cards
Debit cards are issued by the bank where the cardholder has a checking account, and non-banks
cannot issue debit cards. The card's funds are withdrawn directly from the bank account, either
immediately (PIN debit) or after a couple of days delay (Signature Debit). Due to the funds
being secured against actual bank account funds, the risk of non-payment by the cardholder is
lower than that for credit cards, and therefore the cost of servicing debit cards is usually much
lower for banks, though that doesn't necessarily translate to lower card acceptance costs for the
merchant.
• Paypal
PayPal is a service that enables you to pay, send money, and accept payments. PayPal lets
people send money to each other's email addresses while simultaneously concealing each
party's credit card and banking information. PayPal implements guarantees so that both buyers
and sellers have assurances that their money or goods can be recovered should the transaction
turn sour.
• Bank Transfer
Bank transfer is the general term used to cover a wide range of credit transfers, including cash
payments, giro-payments, and wire transfer to local banks. They are the most common form of
cashless consumer payments in most countries within the European Union and Asia–Pacific.
7. 5.2 Use of Electronic Commerce Strategy
In this modern era, people and companies are on the internet for information. Our
company will make our own website for letting wider people knows that our company sales
activity. In there we can briefly elaborate our product scope, what do we sell, details of our
product, warranty of our product, and where are we located. The benifits of us using electronic
commerce strategy is because it less expensive, since KST are just establish, avertised using
TV or radio would cost too much, using website will be cheaper but still can be advertised. Plus
if customer want to buy online, we can do the function of transaction in our website.
6.0 Management Plan
As the personnel plan shows, KST expects to make significant investments in sales, sales
support, and product development personnel.
Management Plan
Year 1 Year 2 Year 3
Manager MYR70,000 MYR85,000 MYR90,000
Co. Manager MYR50,000 MYR60,000 MYR70,000
Supervisor MYR25,000 MYR27,000 MYR29,000
Worker MYR15,600 MYR16,000 MYR17,100
Total Payroll MYR160,600 MYR188,000 MYR206,100
7.0 Financial Plan
KTS expects to raise MYR110,000 of its own capital, and to borrow MYR100,000 guaranteed
by the BSN as a ten-year loan. This provides the bulk of the current financing required.
7.1 Funding Requirement
• Shop renovate – MYR35,000
• Product & materials – MYR20,000
8. • Bills & current – MYR15,000
• Backup save – MYR30,000
7.2 Income Projection
8.0 Exit Strategy
If this business have possibility of running down or seems to get less attention, KST will
make a lower competitive price so that client will switching to our retail. This price will be
keep run for a period of time until we start to get attention from client back. We will provide
event for promo discount sales 4 times a year, and free gift for certain item.
9.0 Risks
As a start-up business, Kitchen Star Trading is still in the early stages. Our product might
have low demand in the area. Other factories might know our fabrication techniques hence
become new competitors.
10.0 Milestones Implementation