Chapter 4

4.1 Industry Analysis

4.1.1 Industry Background and Overview
Kim Bau Zai was a family business initiated by Mr since 2009 at Pusing,
Perak. Before the shop is initiated. He set up food stall at one of the food
arena, located in Ipoh. He sold vegetarian fried pau in that area, competed
with other food stall as well in the food arena. Being a vegetarian food seller,
he faced a downfall in his business. Most of the residents in Ipoh area are not
vegetarian, in addition he had to face a competitive rivalry with other stall
who selling non vegetarian food. He started to gain business after he set up
few proposition of promotional plan. He started to set up banner in most
catchy place to increase the visibility in his food stall. He designed few
creative banner and poster to showcase the specialty of his food, as well as
expand the variety of his food selling in the stall. After 1 year, he gained
opportunity by establishing his first vegetarian restaurant in his uncle shop.
He renovated the shop himself and most of the workers in the restaurant
consist of his family members. He faced loss of profit in the beginning 2
years. He started to gain profit as he executed his marketing plan and
established his business awareness to the people in Perak. However, these
do not stop him. As a young entrepreneur, he keep seeking business
opportunity to achieve his end goal to become a successful entrepreneur. He
sell his franchise of his created pau to bunch of people in Kuala Lumpur. As a
graduate as interior designer, he occasionally execute few interior design
projects of some building or some residential house. One year ago, seeing
the potential development of tourism in Pusing area, he decided to renovate
his old house himself into homestay.

4.1.2 Significant Trends Of Kim Bau Zai restaurant In

Relation With UTP students and resident in Pusing.
Kim Bau Zai reataurant provide variety of vegetarian food to all people no
matter vegetarian or non-vegetarian. As located in the middle of the LumutIpoh expressway, the restaurant definitely become an attraction for the
workers from industrial area around the restaurant, university student and
residents from Seri Iskandar, Tronoh, Batu Gajah, Pusing, Ipoh etc etc. The
restaurant serve variety of vegetarian dishes to his customers at reasonable
price. In fact, 70% of his customers are non-vegetarian due to his respect to
the customers and prioritize customers need as his business operating
fundamental.

4.1.3 SWOT Analysis of the Industry

Aspect
Strength

Description
Price Structure. The restaurant serve his food at

reasonable price.
Food Selection. The restaurant serve more than 20
dishes for selection every day during lunch hour and up

Weakness

to 50 types of dishes for dinner.

Cozy environment. It is equipped with air-conditional

facilities.
Secret Recipe. One of the product is fried pau which

prepared with the owners secret recipe.

Workers. Most of the workers are consists of family

members.
Limited area. The shop could not fit too many tables and

chairs. It could not meet the expanding number of

Opportunit

customers.
Limited worker. Since the business is small scale, the

served food for lunch is not adequate for the customers.

Burden taxes. The owner need to pay lot of taxes to

keep his business running.

Inconsistent supply. Some food in the menu are not

available.
High electricity usage. Mainly from the usage of air-

conditional.
Strategic Location. It place in the middle point of Lumut-

Ipoh expressway.

Less rivalry in the area. The restaurant is the only

vegetarian restaurant within 10 km from the north and
20 km from the south.

Source of customers. The target customers are student

in university, residents, workers from the industrial area
and others.

Less starting-up fund. He saved up some cost as most of

the workers are family workers, renovated shop by
himself and he owned his shop.

Threats

Rivalry with the non-vegetarian food restaurant. The

area has many shops selling variety of non-vegetarian

food.
Potential rising price of food. The rising of the price due
to the cost of materials increase and the impose of GST

of the products.
Rapid Development of the area. As many restaurant are
operating in that area, rivalry is more intense.

4.2 Outlook For The Future

Mr is not satisfy with his own business. He aimed to expand his business by
opening more restaurant in Perak. He aimed to become entrepreneurship
and explore more business possibilities in different sector. As interior
designing graduate, he pick up some external interior designing projects to
reduce the gap to his end goal. He is now exploring the business possibility
in other sector to become well rounded entrepreneur.

4.3 Stage Of Growth

Timeline of his business journey
2000 -

Graduated in interior design. Worked in an interior

design company.

*2006

Started up business in the stall in Ipoh. He sold pau

product. For his part time job, he picked up some
interior designing project

2008 -

Sell his franchise of pau to Klang Valley area

2009

New restaurant named Kim Bau Zai open. He expand

the variety of food from only pau to other type of
vegetarian dishes.

*2013

Started in tourism industry by renovating his old house

into Homestay in Pusing.

Present - Profit is increased annually. In the year 2014, he has

reach profit up to 15%.

4.5 Transformation Building Of 7-Step Approach Of Kim

Pau Zai Restaurant
Steps
Setting objectives

Rahmat Grocery Store

Vision: To become a dealer for his vegetarian steam stuffed bun and
expand his business to all the states in Malaysia as well as
countries nearby such as Singapore, Brunei, Thailand and
Indonesia.
Mission: To become one of the daily meals providers for the
residents around Pusing at a reasonable price.
Financial: To gain maximum profit after considering net sales, cost
expenditure and other cash out sources.
Marketing: To achieve the required minimum sales per year and go
even more, gain market share, and to cover all area in BOTA area

Attract and please

itself.
Mr Felix has made few marketing strategy to attract people

customers

attention.
1) Advertising. He had made advertising in few prestige printed
media such as Food in Perak, Stars newspaper, Sin Chew
Paper etc. Moreover, he created Facebook group to post his
product in the official website. He also post his food photo to
the group to trigger peoples appetite.
2) Signboard. He enlarge his business signboard to gain
attraction to people. As his shop is located beside the busy
main road. This will definitely can attract peoples attention
while driving along the main road.
3) Reward system. He believe that giving back to customer
could attain interest of customer. Therefore, he created
rewards system to the regular customers by giving out

Keep the customers and

discounts.
Mr. Felixs concept in gaining customers loyalty is very simple

make them stay loyal

indeed.
1) Keep the price structure at its minimum rate. The attraction

of the restaurant is the food is served in its lowest price to

make sure every family can afford to dine in their food in
long terms.
2) One of the main focus of Mr Felix is customers review as
top priority. He will take customers feedback from time to
time to determine their selection and the taste of the food.
They make allowable adjustment to make the food texture
and taste better.
3) Treated every customer as VIP. Mr likes to mingle around
with his customers. His charming smile and positive attitude
has made remembrance in every peoples heart.
Grow with the customers

Mr Felix will keep track of the customers most favourite and least

and business

favourite dishes. They make customers need as their top priority in

managing the quantity of the food. They will prepare most favoured
dishes and selling fast food more frequently to increase the
customer flow. They will examine the specialty and property of the
popular food and try to adapt into other dishes as well to increase
more favoured food for the customers. They execute quality control
time to time to maintain high quality and high availability of the food.
As their popularity of their own Pau product, he tried to sell his
franchise to other state as well to increase the market size of his
business. He will examine and inspect his franchise business from
time to time to make sure high quality of the food to maintain his
business reputation.

Outcompete rivals and

Mr. Felixs strategy was to maintain a steady growth of his

compete successfully

restaurant at a steady growth before planning for another outlet. To

outcompete the rivals, he produced Pau with his own recipe as a
unique food which any shop do not sell. He and his family produce
their own recipe to make the pau taste differently than the one
existed in the market. In addition, they experience food from their
rivals during their free day to explore their possibilities to increase

the variety of the taste structure of their food and provide more
choices to the customers.
Conduct proper system

Kim Bao Zai restaurant has a proper systematic operation of the

and operations

stock. Before the shop is opened, Mr and his mother will buy
material in the market themselves to select the best and the most
fresh materials in the market. Mr will check the store for certain
necessities every week and propose a stock list to the suppliers. Mr
will explore and partnership with suppliers who offered the lowest
price to avoid the rising of the price structure of the food.

Evaluation and corrective

Mr will lead the evaluation process every day. He will keep track of

actions

the profit amount and customer flow every day. He make sure that
food served are in high quality and the amount of the dishes
according to the customer flow for that day. For example, he and his
team will prepare more food in week days rather than in weekend
as one of the major customer group, industry workers do not work
during the weekend.

Chapter 6
6.1 Target Market

The initial intention of Kim Bao Zai restaurant is to target industrial worker in
Pusing and residents in Pusing. However, days after days, it attract students
from University of Technology Petronas due to the reasonable price. As the
location of restaurant is placed beside the main road, it attract road user who
travel along Ipoh-Lumut expressway. His reputation increase when tourism
magazine create cover for his restaurant. Ever since, one of his source of
customers are from tourists.

6.2 Market Size and Trend

The market size is considered as moderate but it grow along the year.
According to Mr. Felix, there are vegetarian restaurant in the same area.
Nevertheless, there are some rivalry from the non-vegetarian restaurant. The
reason being is the food attract most of the customers who are nonvegetarian.
After years to years, Pusing area has well developed into industrial area and
tourism area. The adjacent tourism spot is Keilie Castle and located very
near to Ipoh and Kampar, thus Perak authority aim to create Pusing area into
potential tourism destination. Many shops and factory establish in that area
due to its potential, it could bring more business to Kim Bao Zai.
Nevertheless, the developing area also will bring in more rivalry as more
restaurant will set up in the area due to high demand. This could increase the
difficulty to maximize the profits. As long as the price structure and way of
operation is maintained, I believe Kim Bao Zai will outreach more customers
despite of the tense competition.

6.3 Marketing Plan

There are few marketing plan launch by Mr. Felix.
1) Advertising Advertising is the most essential steps taken to expand
the popularity of the business. He believe that advertising is the most

fundamental marketing plan for a new business. This could create

peoples first impression and first exposure to the food.

2) Expand side business Mr. Felix operate as cater provider for any
events or party. He believe that this is another way to increase
exposure and create good impression on people. People would travel to
his restaurant regardless of the distance after the first good exposure.
In addition, he also cater for his Homestay customers and include food
for the customers.
3) Increase Visibility - To increase the visibility of his business, Mr. Felix
set up a big signboard on top of the shop. The reason being is to grab
attention of people and to trigged peoples curiosity. He also adopted
attractive banner to certain eye-catchy places crowded with people to
seek attention from people.
4) Reward system To sustain customers loyalty, Mr. Felix execute a
reward system for the regular customers. Customers will gain pointer
after they consume a certain amount of money. When it reached
certain amount of pointer, the customer would entitled for 15%
discount. The action could make sure customers would come back with
a lower rate of price.