1.

0 INTRODUCTION
The name of this company is GOLDEN BROWN FRUITIES is the official sales
and marketing for the high quality and the most reliable fruit among Malaysia
market. Our business is focused in Kuala Lumpur. Our shop located in NU Sentral
shopping complex at Lot 35,Level 5, Jalan Stesen Sentral 5, Brickfields,50470 Kuala
Lumpur. We have registered 1 May 2015. Our business starting on 8 August 2015
and the symbol of number 8 are represent our 8 flavor of donut that we produced
by our company.
Golden Brown Fruities is under food and the reason why we choose this sector
as our main business is because in Malaysia rich with various types of food from
many country. However, our product is new and different flavor of doughnut.

1.1 FACTOR OF SELECTING DOUGHNUT BASED BUSINESS

i.
ii.

iii.

Doughnut is one of the most popular food in Malaysia market and suitable for
every level of community and age.
Change perception of Malaysia peoples that doughnut can be appetizing
than they expected by putting fruit taste in doughnut such as apple,
strawberry, blackcurrant, banana, pineapple, durian, orange.
Become entrepreneur and just depend on choosing job in public or private
sector

1.2 FUTURE PROSPECT OF THE BUSINESS

2.0 PURPOSE
1) The Entrepreneurs(GOLDEN FRUITIES DOUGHNUT).
- To better under understand the purpose of the business and act as
guideline to manage the business effectively and efficiently.
2) Financial Institutions.
- Assist and help the financial institutions to evaluate the capability of the
proposed project and provide loan for the business. Financial institutions
involved in the business project is Maybank.
3) Suppliers.
- Help convince suppliers of the viability of our business venture thus
benefiting both the suppliers and our company in the long term business
arrangement.
4) Company Staffs/Workers.
- Help workers to understand the businesss goals and objectives and give
a guideline to them regarding their job duties and responsibilities.
5) Customers.
- Persuade and influence our customer regarding the products being
offered and gives assurance and confidence to them to have business
with us. In addition, main objective for development of GOLDEN BROWN
FRUITIES company are first of all focus on Donut that are most various
type of food among Malaysian people and make the productions and
demands not stunted. We are very delightful to make donut popular not
just bakery but also in frozen way. So people will be more interested to
buy and taste our donut. With invasion of donut have fillings and flavor
according to color with addition of chocolate chips, we confidently would
like to sell them and feel that is very suit with Malaysian taste. We are
also interested to compete with other donuts company in Malaysian and
make donut become the most popular Malaysian and try to make donut
as famous food to other country besides Malaysia.

LOGO

Name Of Company :

Golden Fruities Doughnut Industries.

Address :

NU Sentral, No. 201 Jalan Tun Sambanthan,

50470 Kuala Lumpur.

Contact Number :
Fax:
Website :

03-3637048
03-3637037

www.goldenbrownfruities.com

Form Of Business:

Partnership:
-

Nurshahida Hanis Binti Ariffin

Nurhanis Shazreen Binti Mohd Redza
Zubaidah
Atikah
Syuhada
Zakiah

MAIN ACTIVITY OR ACTIVITIES : Selling donughnut

DATE OF COMMENCEMENT :
DATE OF REGISTRATION :
REGISTRATION NUMBER :
NAME OF BANK :
BANK ACCOUNT NUMBER :

577577-Z
Maybank
163342026908

3.0 COMPANY BACKGROUND

-Golden Bown fruities a caf retailer in Malaysia specialing in various doughnuts. The
company is owned and managed by Golden Brown Fruities. Golden Brown Fruities
doughnuts opened its first outlet and began trading in 2015. The first outlet located at NU
Sentral in Kuala Lumpur, Malaysia. Weusing Maybanks business loan to facilitate business
become more easily. The official websire of Golden Brown Fruities is very well hidden, or it
doesnt exist, which make it more difficult to tell where Golden Brown Fruities are from, or
any Golden Brown Fruities history for that matter. We are an establishment that is run and
managed by Malaysians. We took upon ourselves to create a selection of food that would
make Malaysia proud on the international scene.
Type

Private

Industry

Food and Beverages

Founded

May 2, 2015 in Kuala Lumpur, Malaysia

Headquartes

Kuala Lumpur, Malaysia

Area Served

Kuala Lumpur. Malaysia

Products

Doughnuts and Coffee

Parent Company

Golden Brown Fruities Sdn. Bhd.

Slogan
Website

:
:

Bites of Health, Bites of Life

GoldenBrownFruities.com

4.0 OWNERS OF PARTNERS BACKGROUND

General Manager (CEO)

Name : Nor Zakiah Binti Tumirin
Identity Number : 750614-04-5410
Correspondent Address : No17/9 Jalan Azzahra
Puncak Alam
Telephone Number : +6013-301 6941
Academic : Master In Financial Analysis Statement
Skills : Communication
Previous Business : Self-Service Laundry

Financial Manager
Name : Zubaidah Binti Zakaria
Identity Number : 721012-11-2050
Correspondent Address : No1, Jalan Petaling
Petaling Jaya 57090
Petaling.
Telephone Number : +60123645231
Academic : Bachelor In Statistical
Skills : Writing
Previous Business : None

Marketing Manager
Name : Nurhanis Shazreen Binti Mohd Redza
Identity Number : 700408-14-5971
Correspondent Address : No11 Jalan Pelita
Taman Pelita Indah
08000 Kedah Aman
Telephone Number : +6016-978 989
Academic : Diploma In Masscomm
Skills : Communication
Previous Business : None
SHARE : RM 15 000

Operational Manager
Name : Nurshahida Hanis Binti Ariffin
Identity Number : 870609-12-6564
Correspondent Address : KG. Seberang Benoni,
Peti Surat 162,
89608 Papar Sabah.
Telephone Number : +6016-342 989
Academic : Sijil Pelajaran Malaysia (SPM)
Skills : Cook
Previous Business : Restaurant

Human Resource Manager

Name : Nurul Atiqah Syuhadah Binti Muhd Isa Sham
Identity Number : 900809-01-6984
Correspondent Address : No.2 Jalan Permata,
Taman Indah Batu Pahat,
80777 Johor.
Telephone Number : +6018-647 3926
Academic : Diploma In Office Management
Skills : Writing
Previous Business : None

General Manager (CEO)

Name : Nor Zakiah Binti Tumirin
Identity Number : 750614-04-5410
Correspondent Address : No17/9 Jalan Azzahra
Puncak Alam
Telephone Number : +6013-301 6941
Academic : Master In Financial Analysis Statement
Skills : Communication
Previous Business : Self-Service Laundry

Financial Manager
Name : Zubaidah Binti Zakaria
Identity Number : 721012-11-2050
Correspondent Address : No1, Jalan Petaling
Petaling Jaya 57090
Petaling.
Telephone Number : +60123645231
Academic : Bachelor In Statistical
Skills : Writing
Previous Business : None

Marketing Manager
Name : Nurhanis Shazreen Binti Mohd Redza
Identity Number : 700408-14-5971
Correspondent Address : No11 Jalan Pelita
Taman Pelita Indah
08000 Kedah Aman
Telephone Number : +6016-978 989
Academic : Diploma In Masscomm
Skills : Communication
Previous Business : None
SHARE : RM 15 000

Operational Manager
Name : Nurshahida Hanis Binti Ariffin
Identity Number : 870609-12-6564
Correspondent Address : KG. Seberang Benoni,
Peti Surat 162,
89608 Papar Sabah.
Telephone Number : +6016-342 989
Academic : Sijil Pelajaran Malaysia (SPM)
Skills : Cook
Previous Business : Restaurant

Human Resource Manager

Name : Nurul Atiqah Syuhadah Binti Muhd Isa Sham
Identity Number : 900809-01-6984
Correspondent Address : No.2 Jalan Permata,
Taman Indah Batu Pahat,
80777 Johor.
Telephone Number : +6018-647 3926
Academic : Diploma In Office Management
Skills : Writing
Previous Business : None

5.0 LOCATION OF BUSINESS

Nu Sentral is a mixed development of a 7-storey shopping mall and a 27-storey

office tower. This development is part of the multibillion 'Lot G' integrated
development, which will also consist another 2 office towers and a boutique tower
on the same parcel.
Nu Sentral is expected to be completed by mid-2009, and it is part of a KL Sentral
master plan that shall be completed by 2014. It is a 51:49 per cent joint venture
development between MRCB and PelaburanHartanahBhd (PHB).
Nu Sentrail Shopping Mall, which is claimed to be 3 times bigger than Mid Valley
Megamall, will become Kuala Lumpur's first green shopping mall as it implements
environmental-friendly and energy saving features and follows green building
standards by Singapore's Building and Construction Authority (BCA) Green Mark and
Malaysia's GBI. Not only in the building, it also features a rooftop entertainment
concept which consists of a 2-acre sky park, a megaplex (cinemas) and leisure
space for cafes, open air events and concerts all above the mall.
The developer of Nu Sentral has just announced recently (August 2010) that
Parkson department store and Golden Screen Cinemas (GSC) will become its anchor
tenants, both taking up 140,000 sqft and 50,000 sqft of spare respectively. This
partnership is accordance to its aim to become Kuala Lumpur's first lifestyle and
transit hub. GSC will have 11-screen multiplex with a seating capacity of 1,780.
Besides that, the developer claims that this shopping centre will attract 150,000
commuters and 20,000 office and residential population of KL Sentral.
Meanwhile, the 27-storey office tower at Nu Sentral consists of net lettable area of
450m000 sq ft. It is owned by PHB. According to PHB, it will be leased to a single
tenant for en bloc.
Nu Sentral will be linked to StesenSentral, a monorail station and a LRT station as
well as to nearby office towers to enable easy access for the patrons.
Property Details
Name: Nu Sentral
Address: KL Sentral, JalanTunSambathan, Kuala Lumpur
Developer: A joint venture between MRCB and PelaburanHartanahBhd (PHB)
Completion Date: March 2012 (estimate)
Type: Shopping mall & Office tower
Tenure: Freehold
No. of Blocks: 2
No. of Storey

 Shopping Mall: 7
Office Tower: 27
No. of Units
Shopping Mall: Approx. 270
Built-up
Shopping Mall: 1.2 million sf (net let table area of 650,000 sf)
Office Tower: 450,000 sf
Analysis
Kuala Lumpur is blessed with abundance of shopping centers, but still, we are
lacking of the world-class ones compared to our neighbors, Bangkok and Singapore.
Besides the likes of Suria KLCC, Pavilion KL, Mid Valley Megamall, Sunway Pyramid
and 1 Utama, the others are just a stop centre for teenagers and youths to chill and
hang out.
This upcoming Nu Sentral will surely be well-received and be at a class of its own.
With state-of-art features and designs as well as great accessibility, it will be surely
welcomed by everybody.
One of Nu Sentral KL advantage is its will become tourist and office worker focus
because of the attractive building design and also the strategic location which is
easy to find or go .
Our company target market is absolutely being the tourist, office workers,
teenagers and also the residents surround us .
The amenities is Nu Sentral will be linked to Stesen Sentral, a monorail station and a
LRT station.

6.0 MARKETING PLAN

6.1 PRODUCT DESCRIPTION

The Golden Brown Fruities Industries, is a company that focusing on the food and
baverage in the area of Bangsar and in peninsular Malaysia. In addition, we can see
that food business can make a lot of profit due to the demand of this product in the
market. Doughnut can give satisfaction such as helping them feel the great and
delicious taste of it. Understanding this needs and wants of the population in the
Malaysia, especially in our target population which is the potential customer in that
reside in the Bangsar area, we decide to make a business to fulfil the demands and
needs of doughnut.
We also expands the business by selling the other side dish to fulfil our customer
need and wants, for example many variety of doughnut, smoothies drinks and
special dish. It also aims to meet the requirements from the lower level of income
customers for example children to buy the products at the reasonable price.
Our stall had variety of choices of tastes in determine the customer want. It also
focused on the type of doughnut, to provide and produce the suitable food product
to the customer. Not only that, we are providing various type of drink. The Golden
brown Fruities Industries has the product demanded by the customer.

Overall, we have a full confident that Golden Brown Fruities industries has a
concrete foundation to be established and it can monopolize the food industry in the
future if the business plan is done in effective and practical manner.

6.2 TARGET MARKET

Target market is group of customers that have needs and wants that can be
satisfied by the business through the supply of good and services. A target market
is a group of customers that the business has decided to aim its marketing efforts
and ultimately its merchandise towards. It also can be defined as group of persons
for whom a firm creates and maintains a product mix that specially fits the needs
and preferences of that group. It is important for company in order to make proper
marketing strategy and it will become easier to manage and run our business since
we know the market and the demand customer. The marketing strategies can be
done based on the demographic, geographic and psychographic.
Geographic segmentation.
Our company makes ain to target the customer from area of bangsar, kl
sentral and all customers from peninsular Malaysia. Area or our premises consists of
resident and offices area. This area is a congested area which consists of resident,
worker and student. Therefore, we choose to start our business in this area since we
believe that this area is suitable for the business. We also do believe that people
from this area are afford to buy our product.
Demographic segmentation
Demographic factors are mostly concern about the characteristic of human
population or specific part of population. Based on our product list plus with relevant
information through study that we conduct, we found that our product will be
market to customer based on certain element. Firstly, we target out customer to
come from family, worker and students. Customers may buy Doughnut a gift to
others or to their neighbours. Doughnut also can be done in weeding ceremony and
for condolences. Next, out target market under demographic is to be supplier
doughnut for any kind of birthday event. This is one of the ways to increasing and to
provide variety service to our customer.

Pschographic segmentation.
People nowadays prefer something that are really unique and up to their
preference. Customer loves buy product which can be made according to their

personal taste. For instance, can buy doughnut for their families to fulfil craving.
Meanwhile, for children they usually prefer healthy drink since maybe they are late
for their emergency case when they are thirty. Our company will work hard to
ensure that all of this request by the customer will be fulfilled and the customers
are happy and satisfied over our food product.

6.3 MARKET SIZE

Fruities Doughnut is a food product. This is a new product that has been invented by
Golden Brown fruities Industries which is the combination of dough and fruit. The
business has identified its target market as the NU Sentral, shopping mall, kl central
transaction and the residents of the housing area within 15 kilometres of the
business location. There are two major market segments within the target area
shopping mall. The first group consists of about 1000 office from up flow. The
second group is made up of 3000 families living in the 15 kilometres radius area
who like shopping there.
A survey of the two group showed that the students made purchases of about
RM750 a week or RM 3000 a month while the families spent an average of RM 5000
a month on drink products. Based on this survey, Golden Brown Fruities Industries
estimated the market size to be RM5000 from families.
The business then proceeded to estimate the potential sale for the year as RM
96000 (RM 8000 x 12 month). Before estimating the final market size, the business
took into consideration factors that may affect sales such as the semester breaks
and the month of Ramadhan. Using this information, Golden Brown Fruities
Industries estimated the market size to be only RM50000.

6.4 COMPETITION
We have identified the competitors that exist on the market like DUNKIN DONUT,
JCO, and BIG APPLE. Like others, GOLDEN FRUITIES DONUT (GFD) is made from
Malaysian to Malaysian. Same taste like the existence popular doughnut, GFD now
available in the market.
We have to compete with other established Golden fruties Donut which already had
fixed customers.
These are the competitors:
A Dunkin Donut
B Big Apple Donuts & Coffee
C J.Co Donuts& Coffee

Here were the lists of indirect competitors which located near to lot shop.
A Restaurant
Kenny Rogers roaster
Sushi king
B Auntie Anns pretzel
C Cool blog

6.5 MARKET SHARE

Before Entry of Golden Fruities Donut :
110,500
Big Apple
J.Co
Dunkin Donuts
Donuts company

37%
25%
23%
15%
100%

RM99900
RM67500
RM62100
RM40500
RM270,000

After the Entry of Golden Fruities Donut

Big Apple
J.Co
Dunkin Donuts
Donuts company
Golden
Fruities

35%
23%
17%
15%
10%

RM94500
RM62100
RM45900
RM40500
RM27000

100%

RM270,000

Donut

6.6 SALES FORECAST

This is important in order to measure the profit, loss or achieve breakeven by company.
Besides that, it also can be used to decide employment requirement levels.The expected
sales of our product for our customer are shown below:

MONTH
January

TYPE OF PRODUCT

UNIT

PRICE PER

VALUE (RM)

Original

30,567

UNIT (RM)
RM0.20

RM 6,113

Fillings

35,974

RM0.30

RM 10,792

Mix up

37,780

RM0.40

RM 15,112

=104,321
February

=RM 32,017

Original

32,386

RM0.20

RM 6,477

Fillings

38,074

RM0.30

RM 11,422

Mix up

35,780

RM0.40

RM 14,312

=106,240
March

April

May

June

=RM 32,211

Original

33,553

RM0.20

RM 6,710

Fillings

39,025

RM0.30

RM 11,707

Mix up

36,790

RM0.40

RM 14,716

Original

=109,368
34,566

RM0.20

=RM 33,133
RM 6,913

Fillings

40,999

RM0.30

RM 12,299

Mix up

37,120

RM0.40

RM 14,848

Original

=112,685
35,786

RM0.20

=RM 34,060
RM 7,157

Fillings

41,763

RM0.30

RM 12,528

Mix up

38,657

RM0.40

RM 15,462

Original

=116,206
36,000

RM0.20

=RM 35,147
RM 7,200

Fillings

42,000

RM0.30

RM 12,600

Mix up

39,000

RM0.40

RM 15,600

=117,000
July

August

=RM 35,400

Original

36,500

RM0.20

RM 7,300

Fillings

42,500

RM0.30

RM 12,750

Mix up

39,500

RM0.40

RM 15,800

Original

=118,500
38,000

RM0.20

=RM 35,850
RM 7,600

Fillings

43,000

RM0.30

RM 12,900

Mix up

40,000

RM0.40

RM 16,000

=121,000

=RM 36,500

Septemb

Original

38,567

RM0.20

RM 7,713

er

Fillings

43,978

RM0.30

RM 13,193

Mix up

40,456

RM0.40

RM 16,182

=123,001
October

=RM 37,088

Original

39,000

RM0.20

RM 7,800

Fillings

43,999

RM0.30

RM 13,199

Mix up

41,765

RM0.40

RM 16,706

Novembe

Original

=124,764
40,005

RM0.20

=RM 37,705
RM 8,001

Fillings

44,123

RM0.30

RM 13,236

SALES FORECAST FOR CURRENT YEAR, SECOND AND THIRD YEAR

MARKETING BUDGET
ITEMS

Fixed Asset
Signboard
Business card
Working capital
SALARY/EPF/SOCSO
-Marketing Manager
-Business
registration and
license
-Promotion
Others
Grand Opening
TOTAL(RM)

FIXED
ASSETS(
RM)

WORKING
CAPITAL(R
M)

OTHERS
EXPENSE
S

4,000
500

2000
130

500
4500

2630

5000
5000

6.7 MARKETING STRATEGY

A business marketing strategy is the single biggest factor which determines the success or
failure of once business. Marketing strategy is a business's marketing policy, usually
outlined in a formal marketing plan. The marketing strategy usually meshes with the
company's corporate image and product brands. Marketing tactics are some of the
activities that carry out the marketing strategy. Each promotion tool has unique
characteristics and costs.
Marketing strategies are generally concerned with marketing mix principles, also known as
the 4 Ps. It is used by business to assist in pursuing the businesss objectives.
The 4 Ps in marketing strategy are:
i.

Product strategy

ii.

Price strategy

iii.

Place or distribution strategy

iv.

Promotion strategy

6.7.1 Product/Services Strategy

Brand
Our product named Golden Fruities Doughnut which may refer to an informal manufacture
which offering many type of doughnut . Just by recognize our brand, obviously people may
know what we are going to serve for them when they come to our manufacture. In addition,
our brand motto(
) is an attraction because it will make people wondering what the
difference between our doughnut and other doughnut in market.
Quality
Quality of a product can be a major positioning tool for a business. We can convince our
customer due to our quality of product by maintaining the taste. For example, the taste of
the (
) and the regular one will keep maintain and sustain whenever customer
want.We also provide our product in frozen type. Nowadays we know that some supplier
could be bias by cheating the customer on the quality of the ingredients being used. By
using low quality ingredients which is cheaper than high quality ingredients and sell the
product with unreasonable price in order just to gain more profit but forgot the quality of
product. So our company has held a loyalty to customer by not cheating them and takes
any advantages by using high quality ingredients at reasonable price. Other than that, for
supplying we used effectiveness alternative by using machine to produce our product
instead of hiring some employee. From that, our customers demand cannot be delay and
punctually be on time.

Design
Product design or service package plays an important role in satisfying and delighting the
target market. Our product can be classify as a food businesses and more related to service
to the customer. In fact, we also supply our products to demander especially for occasion
event. Our company have been trained to respect customer and set in mind that customer
is always right. So we handle all the order with care to keep it from damage because we are
supplying cakes which is in soft texture. Other than that, we also provide packaging
doughnut which is usually make as a gift to the guest when there has any request. This can
be called as a one package instead of us supplies the doughnut.

Packaging

Protection

The primary function of packaging is to protect the product during the process of
transportation, storage, display and sales until the product is ready for use. Since our
products is going to be supply to certain of occasional events.Protection is one of the
important thing to handle our product. So we choose particular box as our packager. In
addition, it is easiest way for the customer to carry and satisfy when they wanted to buy
our products.

Product differentiation

As we know in market, each product has their own identities and specialties to attract
customers. Include of their packaging and tasting. Same goes with our product. Since our
product is doughnut, we know that all customers from other races in Malaysia can eat and
accept our products because it is a typical doughnut but what we concerned is the quality
of our products. Good packaging has the power to create instant recognition of the product.
For the packaging, we have our own sticker that contain our company details such as
address, contact number, e-mail, logo and halal certificate.

Attractive to customer

The packaging of the product may be the sellers final chance to influence customers. The
main packaging we used a high quality box. It is to make sure the quality of the products
are in good condition and can be stored for a long period of time and can prevent
doughtnut from get eaten by insects. Besides, for the request from customer for gifts or
special occasions, we used colorful and variety design of box for the packaging. This is our
strategy to attract customers attention.

Labelling
Labelling performs several functions such as identifying, grading, describing or even
promoting the product. Label is one of the important thing that consumer have to take
attention. Eventually, our product is classified as a food, so we must put the expiring date
as guidance to consumer from eating a damage food that would be a food poisoning to
consumer. In addition, we also put all the ingredients and content label at the package to
ensure customers about the healthiest of our product which not be made from artificial
ingredients. It is safe for the children to eat our products. The more important thing is the
halal logo that certificate from JAKIM which is can convince the consumer especially
Muslim to purchase our products. This is to ensure all the ingredients that we are used is
from food standardization and not made from non-halal ingredients that could be make
sensitivity of Muslim consumer.
After sale services
Since our products is doughnut, the market sale is consistent because its food and usually
ate by all customer from any races and ages. Our doughnut can serve as alternative food
for tea time, supper and especially for people that do not have enough time for breakfast.
This shows that our product is useful during urgent time and they need on-the-spot
breakfast. So, they only buy instant food such as doughnut. Therefore, we provide many
flavors to make varieties for customers.

6.7.2 Price strategy

The definite meaning of the price of a product or service is the amount of money charged to
the customer for a particular purchase. Our financial objectives when talking about price
will be coined on how much money we intend to make from a product, how much we can
sell, and what market share will get in relation to competitors. Objectives such as these and
how a business generates profit in comparison to the cost of production need to be taken
into account when selecting the right pricing strategy. There are several pricing strategies,
namely, cost based pricing, value based pricing, and competition based pricing. Each one of
these has their own pros and cons based on the product or service offered itself. For our
company, we have decided to imply the cost based pricing strategy.
Cost-based Pricing
Cost based pricing is the simplest and most commonly used pricing strategy. Cost-based
pricing is based on the total cost of the product or service plus a standard mark-up. This
involves setting a price by adding a fixed amount or percentage to the cost of making or
buying the product. In some ways this is quite an old-fashioned and somewhat discredited
pricing strategy, but like being stated above, it is still widely used. This is also one the

factor why we chose this pricing strategy for our product, the most simplest but reliable and
popular used even by big companies worldwide.
The mark-up is the profit margin that is desired from the sale of the product. The
decision on the percentage mark-up is made based on certain factors. Firstly, we have to
know the average profit margin in the industry for our product. For example, for our product
which is a food product, the margin for food business is not less than 35% of the selling
price. Secondly, we have to take into account the number and strength of competitors in
the same area or same industry. For example, for our company, since we are competing
with only two other competitors, even our company is a new company or the newcomer in
the area, we may not have to reduce our price. Thus, how high should the mark-up of our
product percentage be? That largely depends on the normal competitive practice in a
market and also whether the resulting price is acceptable to customers.
An example of cost-based pricing, where a business wishes to ensure that it makes an
additional profit on top of the unit cost of production is illustrated below:
Unit cost

RM100

Mark-up

50%

Selling price RM150

Cost-based pricing is often used as a guide in pricing. The offering price is vice versa, may
be lower or higher. This is also the result of other factors such as customers willingness to
pay for the product or service, pressures other competitors, and the supply and demand
factor. However the lowest price of our product is determined by the unit cost of the
product. We have taken into consideration if the price lowers than the cost per unit will
result in a loss for our company. We also chose this pricing strategy to utilize this strategy
intelligently to penetrate the market. Besides that, we also confident that sales of our
products can cover loss on the sales of the particular product. Other factors that can
contribute to the pricing include economic conditions, government regulations, social
concerns, and consumer groups.

The main advantage of cost-based pricing is that selling prices are relatively easy to
calculate. If the mark-up percentage is applied consistently across product ranges, then
the business can also predict more reliably what the overall profit margin will be. Some
other advantages of the cost based pricing are in term of flexibility whereby we can add a
different percentage to different product lines. Besides, if the costs of our product go up, it
is easy to adjust the prices thus reducing the loss in a long run plus it is easy for our
marketer to defend the pricing and last but not least it can suit a manufacturer with
scalable production based on demand.
However, there are also disadvantages to this pricing strategy. Among the disadvantages
are it ignores product demand or the influence price may have on demand and also what
other competitors are doing with their pricing. Furthermore, the most obvious disadvantage
of this strategy is if the costs of our product increase, so must the price. The name of this
pricing strategy is self-explanatory where it is based on the cost of the product itself. That is
why the cost of our product is directly proportional to the price of the product.

Another approach that we have taken into consideration is the pricing tactic as different
tactics can help us attract more customers and maximize our profits. First, discounting
offering specially-reduced prices can be a powerful tool. This could be a clearance discount
to sell old stock, a discount for making multiple purchases of the same or similar products,
or we could offer bulk discounts to encourage larger orders. We thought that this tactic will
enable us to make more profit through lower costs.
Secondly, the odd value pricing or the psychological pricing. Using the tactic of selling
products for RM 9.99 instead of RM10 can be useful if price is an essential part of
customers buying decisions. Some customers perceive odd value prices like this as being
more attractive.
Another tactic is the loss leader. This involves selling a product at a low or even loss-making
price. Although we may not make a profit selling this product, we could attract customers
who will also buy other, more profitable products.
.
Next, the penetration. This tactic starts at a low price and gaining market
share before competitors catch up. Once we have a loyal customer base, we should be able
to find ways to raise prices later. This tactic seems very convenient to our company as we
are trying to penetrate the market as a new company.

Lastly, the tactic of raising or lowering prices. We are well aware that there will be times
when we need to change our prices. There are two key questions we will try to answer. First,
what effect will the price change have on the volume of sales, and second, what will the
effect be on the profit per sale? When we Increase the prices, we can improve our
profitability even though our sales volume may drop. If we are increasing our prices, we will
always explain to our customers why we are doing it. We can use the price change as an
opportunity to re-emphasize the benefits we offer.
There are also ways that we can hide price increases. For example, we might introduce
new, higher-priced products or services and make older, cheaper ones obsolete lower the
specification and our costs while maintaining the same price but we will be aware that
hiding price increases can risk adverse reactions from our customers if they realize what we
are doing.
In contrast, the reducing prices, we know that we should never take the decision to lower
prices lightly. Low prices often go hand-in-hand with poor-quality service. This is not the
image we want to create for our business.

6.7,3 Distribution Strategy

For product-focused companies, establishing the most appropriate distribution strategies is
a major key to success, defined as maximizing sales and profits. Place represents the
location where a product can be purchased. It is often referred as the distribution channel.
It includes any physical store as well as virtual stores on the Internet. Distribution strategy
is aimed at establishing a structured and controllable distribution system to ensure the
smoothness of transferring the products to its target customers. As we are manufacturing
and selling our products on our own without any intermediaries. Our strategies are involved

in many areas which are in one housing area and finally being distributed directly to the
customers.

Manufacturer

a.

customer

Direct to consumer

First, we sell and manufactured our products which are dougnut directly to the
consumer which are the one who pays to consume the goods and services produced for
satisfy their needs and wants. When we directly sell to the consumer, there has no
intermediary level and there are not involved the retailers and the wholesalers. Even the
consumers will having their own choice and may choose all varieties in flavor besides,
buying in large numbers of item that we had provided. By dealing directly with consumers,
manufacturers are able to remain in business. We choose this type of distribution because
we are providing fresh and clean food every day to satisfy everyones needs and wants.

6.7.4 Promotion Strategy

Promotion represents all of the communications that a marketer may use in the
marketplace. Promotion has four distinct elements: advertising, public relations, personal
selling and sales promotion. A certain amount of crossover occurs when promotion uses the
four principal elements together, which is common in film promotion.

1)

Advertising

i.

Newspapers/magazines

This is one of our promotion strategies in introducing our company. Newspaper is a part of
medium in transferring information to the residents in our marketplace. So, we will
advertise our product including our companys contact details. However, in order to
minimize the cost, we will choose the hot selling newspaper and magazines in the
residential area. It also will reduce the waste of advertising useless promotions.
ii.

Lower Price and Discount

Besides that, our company will give the best price to our customer and give free extra
doughnut to our customers that buy more than certain quantities.

iii.

Signboards and banners

Signboard is the way we introduce our company especially for our premises. It is because,
we will locate the signboard directly in front of our building so that when people pass by,
they will know where we are and what services and products we are producing.
We will design and locate our banners at the main locations where people always come or
pass by for example is, at junctions of the roads, terminal bus, universities or colleges, and

so on. The total of the banners is around five depends on how much place we will locate
them.
These two medium of advertising will not be a problem to our company especially for cost.
It is because, we are producing these products and we just need to pay for the raw
materials of producing them.

iv.

Sticker

One of the ways to introduce our company and make our customers keep informed about
our products and services is by using sticker on every packaging. The information provided
includes:
a.

Name of the company

b.

Address of the company

c.

Phone numbers - office and staffs

d.

Companys logo

e.

Companys e-mail

v.

Website

Other alternative that we will use is the website that has information about our company
and products. In spite of that, we also will use social networking sites such as blog,
facebook, twitter, and so on. Online selling is important as it is the easiest way to buy
something so people can make orders by only access to the internet. In addition, people
also easy to make any choices of flavor or colour of doughnut because they can see the
picture.

2)

Sales promotion

This is a promotional activity or incentives carried out or offered within a set time frame to
influence purchases. Our company sales promotions are:

Give discounts to regular customers

Give discounts for big purchases

Big discount once a year

Give free extra doubhnut to customer that purchased at certain quantity

Doughnuts are placed in the doughnuts storage contain

Applying icing or topping

Prepare icing or topping

Doughnut of poor quality are spared or rejected

Doughnut are taken out from oven to cool

The doughnut are baked at 3250 for 12-15 minutes

the dough is formed into doughnut pan

Lets the dough rest for awhile

Ensure that the dough is of right quality

Mix and blend ingredient

Measures ingredient

FLOWCHART FOR THE MAKING OF DOUGHNUT.

7.1 PROCESS PLANNING
7.0 OPERATIONS PLAN

ACTIVITY CHART FOR GIVING SERVICE

Greet the customer

Ask the customer what they want

Get the relevant information from the customer

Brief the customer about our product

Let them make decision to choose their dish for

doughnut

Do transaction with customer

Get feedback from customer

Make doughnut accordingly

7.2 OPERATIONS LAYOUT

KIOSK

7.3 PRODUCTION PLANNING

Average sales forecast month

= RM 16500

Price per unit of doughnut

= RM 5.50

Number of output per month

= Average
Price per unit
=

3000 units

If number of working days per month is 30 days. The amount of output to be

produced per day is
=3000 units
30 days
100 units per day

Average sales forecast month

= RM 13350

Price per unit of drink

= RM 4.45

Number of output per month

= Average
Price per unit
=

3000 units

If number of working days per month is 30 days. The amount of output to be

produced per day is
= 3000 units
30 days
100 units per day

Total forecast per month = RM 29850

Total forecast per day = RM 995

7.4 MATERIAL PLANNING

INGREDIENTS

AMOUNT
REQUIRED

FRUIT
FLOUR
EGGS
PEANUT
SUGAR
CHOCOLATE POWDER
SALT
BAKING POWDER
MARGERINE/BUTTER
SODA BICARBONATE
OREO
CAPPUCINO
LATTE
COOKING CHOCOLATE
ICE
COCONUT OIL
HONEY
CHOCOLATE CHIP
YOGURT
SODA DRINK
PINK GUAVA CORDIAL
FLAVOUR

50 KG
300 KG
2500PCS
25KG
300 KG
8 BOTTLES
30 KG
10 PACKET
40 PACKET
10 PACKET
60 PACKET
5KG
5KG
30BAR
150 BAGS
10 BOTTLE
80BOTTLES
50 PACKET
40BOTTLES
35BOTTLES
30BOTTLES
60BOTTLES

TOTAL

SAFETY
STOCK
(5%)
3
15
125
2
15
1BOTTLES
2KG
1 PACKET
2 PACKET
1 PACKET
3
1KG
1KG
2 BAR
8BAGS
1 BOTTLE
4 BOTTLE
3 PACKET
2BOTTLES
2BOTTLES
2BOTTLES
3BOTTTLES

199

PRICE
PER
UNIT(RM)
50
2.70
0.7
5
2.80
9.99
3
2
5
2
12
20
20
10
5
26
7
11
6
2.8
6
3.50

TOTAL
PURCHASE(RM)

SUPPLIER

2500
810
175
125
840
80
148
20
200
20
720
100
100
300
750
260
560
550
240
98
180
210

MYDIN
TESCO
MYDIN
TESCO
MYDIN
MYDIN
MYDIN
MYDIN
TESCO
MYDIN
TESCO
TESCO
TESCO
TESCO
TESCO
TESCO
MYDIN
MYDIN
MYDIN
MYDIN
MYDIN
TESCO/

8986

7.5 MACHINES AND EQUIPMENT PLANNING

1

First Aid

100.00

100.00

2
1

Cleaning set
Cleaning
set

10.00
10.00

10.00
10.00

3
1

Set
Set

Cooking
Cooking 10
10

89.00
89.00

890.00
890.00

4
1

Utensils
Utensils
Donut Molding
Donut
Molding
Tray
10
10

20.00
20.00

200.00
200.00

5
1

Tray
Water Heater
Water
Heater

20.00
20.00

20.00
20.00

6
1

Air Conditioner

2,000.00

2,000.00

7
1

Fire Extinguisher
Fire
Extinguisher

70.00
70.00

70.00
70.00

8
1

Toilet equipment

85.00

170.00

9
2

Storage refrigerator
Storage

1,500.00
1,500.0

1,500.00
1,500.0

0
2

refrigerator
Automatic Baking
Automatic
Baking 1

0
2,000.00
2,000.0

0
2,000.00
2,000.0

1
2

Machine
Machine
Apron ++Chef
Apron
Chefcap
cap

0
8.00
8.00

0
16.00
16.00

of
of

2
Tot
al

11,918.0
11,918.
0
00

7.6 MANPOWER PLANNING

NO.
OF MONTHLY
STAFF
SALARY
REQUIRE (RM)
D

EPF : 12%
(RM)

SOCSO :
2.5%
(RM)

TOTAL
(RM)

240

50

2000

25.76/work
er

2061

TOTAL

4061

NO
.

POSITIO
N

1.

Operation
al
Manager
Workers

1710

123.66/work
(2workers er

881.08

=1762.16)
(3.55
per
hour)

7.7 OVERHEAD REQUIREMENT

TOTAL

INDIRECT MATERIAL

Straw

60

Dustbin

50

Garbage beg

75

Paper beg

1500

Plastic cup

2100

TOTAL
3785

RM

INSURANCE
100

RM

Health and medical workers

(2 Workers x RM 50)

UTILITIES
1600

RM

Electricity and water

Rent

TOTAL OF OVERHEAD
5485

RM

7.8 LOCATION
1. Availability of manpower :
Since the location of our product is NU Sentral, Kuala Lumpur, it is easy to us
to find manpower as our business need. This is because there have many
people find job at the city compared to rural are. If our business has not
enough manpower, therefore , I will affect our business operation. Thus, we
will find qualified workers to work in our business.
2. Transportation facilities :
The transportation facilities of our business location are available because it is
located near to the city. So, there is no problem for the carriage inward and
outward of raw materials and it can be handled effectively and efficiently.
3. Distance from customer :
There are many types of customer and they are also comes from different
places and areas which is not just from Bangsar. We actually have customer
that comes from Seremban, perak, kedah, and KLIA from foreign country. But
apparently, we choose NU Sentral as our location as it is the centre place of
most of our regular customer that interested in our doughnut. Besides, the
geography of Bangsar also give advantages to the all other customer as the
distance has no become so far.
4. Price of the site :
Price of the site is different based on the areas and places. The site that
situated in town or city area will cost more than the side that situation in local
area. Since the location of our business is at Bangsar which is that have
higher rate of population because is near with the industrial place and
transaction place.
5. Other factors :
There are also other factors such as utilities, climate, bank, petrol station,
transaction station and safety of the surrounding area. The utilities of our
business location such as water and electricity are also available and in a
good condition. The climate of our business location is quite high because
Bangsar is situated in Kuala Lumpur which is one of the develop state in
Malaysia. There are many bank such ATM , who want to withdraw the money
who make the purchase in shopping mall at NU Sentral. Besides, there is also
having several petrol stations that situated near to our stall location that ease
our customer to come to our premises with their own transport. Therefore,
there near with transaction which is KL Sentral. Lastly, the safety of
surrounding area of our business location is very good. As it is situated in a
centre of living area.

7.8.1 BUSINESS OPERATION TIME

Our business hour starts from 10.00 am until 9.00 pm. We picked this time as it is
appropriate time for business to start and close the business daily. This business
operation is also suitable as it can give chances for the person who works to come
to our shop after office hours which is after 10.00 am. This can give advantage for
us to get and attract many customers to come to our shop and buy our doughnut
that consist of many side dish. Then, one workers can make one day holiday in
business hour. We just only picked these day and time as to give the chance for our
workers to have some time to spend with their families. The operation hours given
is suitable so that the workers can have enough rest and can perform well when
they do their works.

BUSINESS HOURS :
DAY

TIME

MONDAY TO SUNDAY

10.00 AM - 9.00 PM

OPERATION HOUR :
DAY

TIME

MONDAY TO SUNDAY

9.00 AM 10.00 PM

7.9 LICENSE, PERMIT AND

REGULATION REQUIREMENT

7.10 OPERATION BUDGET FOR DOUGHNUT

ITEMS

FIXED
ASSETS
and
RM 11,918

Machine
equipment
Raw materials
Salary,
EPF
and SOCSO
Overhead
Total

MONTHLY
EXPENSES

RM 8986
RM 4061

RM 11,918

RM 5485
RM 18532

OTHER
EXPENSES

7.11 IMPLEMENTATION SCHEDULE

No

Activities

Incorporation of business
Application of permit

2
3
4
5
6
7
8
9
10
11
12
13
14

license
Searching premise
Renovation premise
General briefing to
personnel
Advertising & Promotion
launched
Procurement of machine
and items needed
Installation of machine
Recruitment of workers
Department coordination
Briefing of all
distribution channel
Monitoring and
corrective action
Sales visits
Consolidation

Month
1 2 3

10

12

8.0

VISION

MISSION

OBJECTIVE

To
To
To
To
To

market and sales budget.

To overcome other competitors in this area by using a well organize business

strategies.
To gain respect and trust from our customer by fulfilling their needs, wants

and requests.
To be able on paying back the bank loan and overcome initial cost within 2

introduce our doughnut and services to our customers.

increase our profits by 10% yearly.
ensure customers are satisfied with our product and services.
ensure customers buy our doughnut repeatedly.
ensure Golden Brown Fruitiess will reach and meet the goals of the target

years.
To expand business or even franchising