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JULY 2010 - MAREY’S DOUGHNUT AND COFFEE HOUSE
EXECUTIVE
SUMMARY
WBD 10102- Introduction to Entrepreneurship 1

EXECUTIVE SUMMARY
MAREY’S DOUGHNUTS AND COFFEE HOUSE
Marey’s Doughnuts and Coffee House (MDC) is a start-up coffee and bakery retail
establishment located in southwest Kuala Lumpur. MDC expects to catch the
interest of a regular loyal customer base with its broad variety of coffee and pastry
products. The company plans to build a strong market position in the town, due to
the partners' industry experience and mild competitive climate in the area. MDC
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.

1.0
Product and service
description

PRODUCT AND SERVICE DESCRIPTION
MDC offers a broad range of coffee and espresso products, all from high quality
Columbian grown imported coffee beans. MDC caters to all of its customers by providing
each customer coffee and espresso products made to suit the customer, down to the
smallest detail. The bakery provides freshly prepared bakery and pastry products at all
times during business operations. Six to eight moderate batches of bakery and pastry
products are prepared during the day to assure fresh baked goods are always available.

2.0
Technology description

Technology Description
Management Team
MDC is leading by Mr Muhammad b Mahzan who has extensive experience in
sales, marketing, and management, and was vice president of marketing with both
Marianna & Mariani and Burper Foods. Mr Remy bin Zupli brings experience in
the area of finance and administration, including a stint as chief financial officer
with both MUM’s Roasters and the national coffee store chain, KopitiamCups.
MDC uses equipment supplied by APV Bakers to handle the initial mixing,
dividing and proving of dough. The equipment are bakery dough dividing and
proving and baking machine.

3.0
Market & competition

The Market
The retail coffee industry in the Malaysia has recently experienced rapid growth.
The climate in Malaysia stimulates consumption of hot beverages throughout the
year. MDC 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. This will establish a healthy, consistent revenue base to
ensure stability of the business. In addition, tourist traffic is expected to comprise
approximately 35% of the revenues. High visibility and competitive products and
service are critical to capture this segment of the market.
MARKET AND COMPETITION
Market Analysis :
MDC's focus is on meeting the demand of a regular local resident customer base, as
well as a significant level of tourist traffic from nearby highways. The marketing
will considering these 4p’s as below:
The Four P’s of Marketing
As we implement the above steps and develop a marketing plan, we need to think
about the basic components of any marketing strategy. There are four elements of
our business that we should always keep in mind. The following four P’s of
marketing, which make up the “marketing mix,” were identified by Harvard
professors in the 1960s, and since then they have become a standard model for
developing marketing techniques:

Product
The product is more than just the food and drink. The product is everything that we
are selling, and in MDC that includes the menu items, merchandise, service,
atmosphere and the whole experience of dining out.
Price
Simply put, the price refers to how much the product and merchandise cost. Pricing
is extremely important in marketing because, along with quality of product, it
influences the perceived value of what we offer to our customers.
Place
Place refers to not only the location of our restaurant, but to the characteristics and
demographics of the trading area and all of the people and competition that exist
inside of it. Place should be constantly evaluated with an environmental analysis.
Promotion
The promotion includes all of the marketing techniques weuse to sell our product.
This can include coupons, specials, contests, public relations, merchandising,
advertising, personal selling and word of mouth.
Service marketing, which is always an essential aspect of food service, traditionally
looks at three more P’s: people, process and physical evidence. However, it may be
simpler to consider the “service” as part of the overall product.

We should constantly be tweaking our price and product in order to better promote
our restaurant in the place where you do business. This may involve taking risks,
but in the competitive world of food service, risks should be considered necessities
for success. If we can constantly reevaluate the four P’s of marketing, we will
establish the right mindset to develop a truly remarkable marketing plan that will
pay off.
Market Needs
Because Malaysia has a cool and wet climate for two months out of the year, hot
coffee products are very much in demand. During the remaining warmer ten
months of the year, iced coffee products are in significantly high demand, along
with a slower but consistent demand for hot coffee products. Much of the day's
activity occurs in the morning hours before ten a.m., with a relatively steady flow
for the remainder of the day.
Competition and Buying Patterns
Competition in the local area is somewhat sparse and does not provide nearly the
level of product quality and customer service as MDC . Local customers are
looking for a high quality product in a relaxing atmosphere. They desire a unique,
classy experience.
Leading competitors purchase and roast high quality, whole-bean coffees and,
along with Italian-style espresso beverages, cold-blended beverages, a variety of

pastries and confections, coffee-related accessories and equipment, and a line of
premium teas, sell these items primarily through company-operated retail stores. In
addition to sales through company-operated retail stores, leading competitors sell
coffee and tea products through other channels of distribution (specialty
operations).
Larger chains vary their product mix depending upon the size of each store and its
location. Larger stores carry a broad selection of whole bean coffees in various
sizes and types of packaging, as well as an assortment of coffee- and espresso-
making equipment and accessories such as coffee grinders, coffee makers, espresso
machines, coffee filters, storage containers, travel tumblers and mugs. Smaller
stores and kiosks typically sell a full line of coffee beverages, a more limited
selection of whole-bean coffees, and a few accessories such as travel tumblers and
logo mugs. During fiscal year 2000, industry retail sales mix by product type was
approximately 73% beverages, 14% food items, eight percent whole-bean coffees,
and five percent coffee-making equipment and accessories.
Technologically savvy competitors make fresh coffee and coffee-related products
conveniently available via mail order and online. Additionally, mail order catalogs
offering coffees, certain food items, and select coffee-making equipment and
accessories, have been made available by a few larger competitors. Websites
offering online stores that allow customers to browse for and purchase coffee, gifts,
and other items via the Internet have become more commonplace as well.

Strategy and Implementation
NDC will succeed by offering consumers high quality coffee, espresso, and bakery
products with personal service at a competitive price.
Sales Strategy
The sales strategy is based on the SWOT Analysis as below :
SWOT Analysis
Strengths
• Strong relationships with vendors that offer high-quality ingredients and
fast/frequent delivery schedules.
• Excellent staff who are highly trained and very customer attentive.
• Great retail space that is bright, hip, clean, and located in an upscale mall,
suburban neighborhood, or urban retail district.
• High customer loyalty among repeat customers.
• High-quality food offerings that exceed competitors offerings in quality,
presentation, and price.
Weaknesses
• Nina Doughnut's name lacks brand equity.
• A limited marketing budget to develop brand awareness.
• The struggle to continually appear to be cutting edge.
Opportunities
• Growing market with a significant percentage of the target market still not
aware that Marey’s Doughnut and Coffee exists.
• Increasing sales opportunities in take out business.

• The ability to spread overhead over multiple revenue centers. MDC's will be
able to spread the management overhead costs among the multiple stores,
decreasing the fixed costs per store.
Threats
• Competition from local restaurants that respond to MDC's
superior offerings.
• Gourmet pasta restaurant chains found in other markets coming to Eugene.
• A slump in the economy reducing customer's disposable income spent on
eating out.
Competition
National Competition
• Doughnutybilities: offers consumers their choice of doughnuts, and coffee,
allowing the customer to assemble their dish as they wish. Food quality is average.
• DoughnutFresh: has a limited selection but the doughnuts are assembled with
high-quality ingredients. The price point is high, but the food is quite good.
• Doughnut Works: offers doughnut that is reasonably fresh, reasonably
innovative and at a lower price point. The company was sold a few years ago, and
consequently the direction of management has been stagnant lately and has resulted
in excessive employee turnover.
• Perfect Doughnut: has medium-priced doughnut that use average ingredients,
no creativity, and less than average store atmosphere. NDC's is not sure how this
company has been able to grow in size as their whole product is mediocre at best.
Local Competition
• Restaurant A: This is an upscale Malaysian restaurant that has a limited

selection of doughnuts and coffee. Although the selection is limited and pricey, the
dishes are quite good.

• Restaurant B: A Malaysian restaurant with a decent doughnut and coffee

selection, however quality is inconsistent.
• Restaurant C: An upscale restaurant with a large doughnut and coffee

selection. Everything else is mediocre at best and over-priced. Service can often be
poor.

4.0
Business model

MDC is using the Locust Model. The Locust is the business model that sells to
the consumer market. Nearly all retailers are Locusts. Restaurants are Locusts.
Businesses that transport people are Locusts. The Locust business needs expensive
infrastructure to service, process, and manage an enormous number of customers
and transactions. These fixed assets make Locusts highly vulnerable to small
swings in capacity utilization. A 1 percent drop in customer traffic can be the
difference between profit and loss.
The Company
MDC is incorporated in Kuala Lumpur, Malaysia. It is equally owned and
managed by its two partners. Mr Muhammad bin Mahzan has extensive experience
in sales, marketing, and management, and was vice president of marketing with
both Mariana & Mariani and Burper Foods. Mr Raimi bin Zupli brings
experience in the area of finance and administration, including a stint as chief
financial officer with both Mum’s Roasters and the national coffee store chain,
KopitiamCups. The company intends to hire two full-time pastry bakers and six
part-time baristas to handle customer service and day to day operations.
This business plan offers financial institutions an opportunity to review our vision
and strategic focus. It also provides a step-by-step plan for the business start-up,
establishing favorable sales numbers, gross margin, and profitability. This plan
includes chapters on the company, products and services, market focus, action
plans and forecasts, management team, and financial plan.

Objectives
1. Sales approaching and surpassing RM1.9 million by the end of the first year.
2. Targeting and maintaining a net profit of at least 14% by the second year.
3. To cultivate monthly sales to reach RM167,000 by the end of the fourth
month of operation, and RM220,000 monthly by the end of the first year of
operation.
1.2 Mission
The MDC concept is built upon the success stories of Dungkin's Dounghnut and
Bistro many casual dining and coffeehouse venues. Located in the heart of Kuala
Lumpur that is residential loft development, The MDC will provide accessible and
affordable high quality food especiall the doughnuts, coffee-based products, and
entertainment to the thousands of residents and hotel visitors located within a five-
mile radius. In time, The MDC will establish itself as a "destination" of choice to

the many residents of the greater Kuala Lumpur metropolitan area, as well as
numerous out-of-town visitors.
The establishment will provide a "complete, high-quality" evening experience for
those searching for something that is rapidly becoming popular among Malaysians
diners. Not only will patrons be able to dine on "comfort" food based upon time
honored recipes from the world over, they will do so in a facility containing ample
patio space for a favorite pastime of Kuala Lumpur's residents. Patrons will also
have the option of enjoying coffee, desserts, and live entertainment in The MDC's
coffeehouse or, a relaxed game of bocci in the gardens located adjacent to the patio
space.
The cafe's aim is simple. It will provide a completely sophisticated, sensual, yet
casual dining and/or coffeehouse experience for the many Malaysians and visitors
who frequent the city's casual dining spots and entertainment venues. It will be an
affordable venture for patrons, one that will encourage them to return on many
occasions. The menu will feature hearty fare of the type that is frequently out of the
reach of the typical young professional...out of reach because time frequently
prevents her/him from cooking hearty meals like those featured on our menu.
Keys to Success
The keys to success in this business are:

1. Product quality: Food especially based on doughnuts, coffee-based beverages,
and entertainment are our products. They must be of the high quality and value.
2. Service: Our patrons are paying to have a good time. Their experience will
suffer if service is not of the highest caliber. Each member of the staff will be
courteous, efficient, and attentive.
3. Marketing: We will need to target our audience early and often. While the
business is located in a central and accessible location, many people will have to be
re-introduced to the neighborhood surrounding Kuala Lumpur.
4. Management: We will need to have a firm grasp on food, beverage, and labor
costs. The dining/entertainment/coffeehouse experience must be delivered in a
fashion that will not only inspire repeat business, but encourage word-of-mouth
recommendations to others. Proper inventory, employee management, and quality
control is key.

Appendices

APPENDIX 1: FLYERS
MAREY’S
DOUGHNUTS
AND
COFFEE HOUSE
Welcome to the Marey’s Doughnuts & Coffee House!
Nestled in the Jalan Tun Razak, Kuala Lumpur Marey’s
Doughnuts & Coffee House offers a wide selection of fresh,
delicious doughnuts, and coffee & espresso drinks, at modest
prices. For more than 3 years, our charming location and
exceptional food have been attracting locals and tourists alike!
As a family-owned-and-operated café and bakery, we care about

the quality of our food and our reputation among our patrons, so
we take pride in offering baked-on-the-premises breads and
03-2234677 pastry and freshly ground and brewed coffee.
Location Map
03-2234678 (fax)
For mouth-watering food and drink, come to our Malaysian style
café and bakery!
NINA’S DOUGHNUTS
& COFFEE HOUSE WELC
O ME
HOURS OF PERATION:
10 AM – 12.00 AM EVERYDAY

APPENDIX 2 : LOCATION MAP

Borang A
Rujuk Fail

Kelulusan nama perniagaan
Rujuk Fail

BIBLIOGRAPHY
www.hsbc.com.my/1/PA_1_1_S5/content/website/pdf/commercial/sme_biz_plan
www.business.gov.au/.../How-
to+guides/Thinking+of+starting+a+business/How+do+I+write+a+business+plan.
htm
www.businesslink.gov.uk/bdotg/action/layer?topicId
Ab.Aziz Yusof. (1998). Asas-asas Keusahawanan, Petaling Jaya : Prentice Hall
Badaracco, J. (1991). The Knowledge Link: How firm compete Through Strategic
Alliances. Cambridge: Havard Business School
Cole, A. (1969). “Definition of Enterpreneurship,”In J.Komives eds., Karl.A.
Bostrum Seminar in the Study of Enterprise, pp.10-22


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JULY 2010 - MAREY’S DOUGHNUT AND COFFEE HOUSE

WBD 10102- Introduction to Entrepreneurship 1

MAREY’S DOUGHNUTS AND COFFEE HOUSE

establishment located in southwest Kuala Lumpur. MDC expects to catch the

to higher-income local market area residents and tourists.

WBD 10102- Introduction to Entrepreneurship 2

WBD 10102- Introduction to Entrepreneurship 3

PRODUCT AND SERVICE DESCRIPTION

WBD 10102- Introduction to Entrepreneurship 4

WBD 10102- Introduction to Entrepreneurship 5

MDC is leading by Mr Muhammad b Mahzan who has extensive experience in

WBD 10102- Introduction to Entrepreneurship 6

WBD 10102- Introduction to Entrepreneurship 7

The climate in Malaysia stimulates consumption of hot beverages throughout the

ensure stability of the business. In addition, tourist traffic is expected to comprise

service are critical to capture this segment of the market.

MARKET AND COMPETITION

will considering these 4p’s as below:

The Four P’s of Marketing

marketing, which make up the “marketing mix,” were identified by Harvard

developing marketing techniques:

atmosphere and the whole experience of dining out.

is extremely important in marketing because, along with quality of product, it

influences the perceived value of what we offer to our customers.

inside of it. Place should be constantly evaluated with an environmental analysis.

This can include coupons, specials, contests, public relations, merchandising,

advertising, personal selling and word of mouth.

Service marketing, which is always an essential aspect of food service, traditionally

simpler to consider the “service” as part of the overall product.

WBD 10102- Introduction to Entrepreneurship 9

for the remainder of the day.

Competition and Buying Patterns

along with Italian-style espresso beverages, cold-blended beverages, a variety of

WBD 10102- Introduction to Entrepreneurship 10

pastries and confections, coffee-related accessories and equipment, and a line of

addition to sales through company-operated retail stores, leading competitors sell

coffee and tea products through other channels of distribution (specialty

sizes and types of packaging, as well as an assortment of coffee- and espresso-

and five percent coffee-making equipment and accessories.

Technologically savvy competitors make fresh coffee and coffee-related products

accessories, have been made available by a few larger competitors. Websites

WBD 10102- Introduction to Entrepreneurship 11

Strategy and Implementation

products with personal service at a competitive price.

The sales strategy is based on the SWOT Analysis as below :

WBD 10102- Introduction to Entrepreneurship 12

• Restaurant A: This is an upscale Malaysian restaurant that has a limited

WBD 10102- Introduction to Entrepreneurship 13

• Restaurant B: A Malaysian restaurant with a decent doughnut and coffee

• Restaurant C: An upscale restaurant with a large doughnut and coffee

WBD 10102- Introduction to Entrepreneurship 14

WBD 10102- Introduction to Entrepreneurship 15

infrastructure to service, process, and manage an enormous number of customers

swings in capacity utilization. A 1 percent drop in customer traffic can be the

difference between profit and loss.

MDC is incorporated in Kuala Lumpur, Malaysia. It is equally owned and

experience in the area of finance and administration, including a stint as chief

part-time baristas to handle customer service and day to day operations.

plans and forecasts, management team, and financial plan.

WBD 10102- Introduction to Entrepreneurship 16

3. To cultivate monthly sales to reach RM167,000 by the end of the fourth

WBD 10102- Introduction to Entrepreneurship 17

numerous out-of-town visitors.