ENT300 Fundamental Of Entrepreneurship

Individual Report
Business Model Canvas (BMC)

Submitted by

Name Zubli Quzaini Bin Zubli

Student ID 2018442458

Prepared for

Madam Nur Ain Binti Rahmat

 Table of Contents
Table of Contents ............................................................................................................... 2
Introduction ....................................................................................................................... 3
Key Partners ...................................................................................................................... 4
Key Activities ..................................................................................................................... 5
Key Resources .................................................................................................................... 6
Value Propositions ............................................................................................................. 7
Customer Segments ........................................................................................................... 8
Customer Relationships ..................................................................................................... 9
Channels .......................................................................................................................... 10
Cost Structure .................................................................................................................. 11
Revenue Streams ............................................................................................................. 12

2
Introduction

3
 Key Partners

In order to increase to sustainability of the business, the company have partnered with
external organization that will contribute resources for the business operation. The key
partners are divided into two parts Input Supplier and Partners.

The input supplier provides the main resources to make the chocolate cake. A strong
foundation of relation with suppliers allow the company to buy the ingredient at lower price
cost thus enable both parties to gain the maximum amount of profit possible.

Input Supplier

• Nutriplus, Lay Hong Bhd

Lay Hong Bhd is a Malaysian-based engaged in livestock farming. Integrated livestock

include products under the Nutriplus brand. The company provides products, such as table
eggs, liquid egg, air-chilled chicken, fried chicken, chicken frankfurters, chicken nuggets, and
chicken and parts. Chocolate Meleleh venturing with Lay Hong Bhd to get the excellent quality
Grade AA eggs, for the making of the cake.

• Cap Sauh, FFM Bhd

FFM Berhad produces, processes and distributes flour and grain products. The company
offers flour milling, animal feed, livestock farming, edible oils, cooking oils, soya beans meal
and palm oil throughout Malaysia. The collaboration between FFM Berhad able Chocolate
Meleleh to be products by receiving supply directly from the company. FFM Berhad supply
Blue Key Baking Flour for the company.

Partnership

• Poslaju Malaysia

Poslaju Malaysia is the oldest companies in Malaysia, leading domestic courier industry in
the country. Poslaju Malaysia collaborate with Chocolate Meleleh to allow the company
delivery the products directly to the customers doorstep. Poslaju provides transportation for
mass products outside Selangor. In return, the company will promote the company services
among the customers via social media. The company also helps Poslaju in advertising their
brands by placing the logo on banner and social media post

• Secret Recipe

Secret Recipe partnership helps Chocolate Meleleh in the production of the chocolate
cake. The partnership agreement between both company was develop to provide machinery
and manpower for handling mass orders from the customers. Chocolate Meleleh and Secret
Recipe partnership strengthened the production of chocolate cake to meet the demand of
customers.

4
 Key Activities
Chocolate Moist Meleleh are provide customers with the most delicious mouth-watering
chocolate cake. Baking and selling of the homemade chocolate cake is the main activities of
the company whereas baking classes are conducted every months the bakery.

• Baking the Chocolate Cake

The production of the chocolate cake begins from the medium size bakery located here
in Shah Alam. Experience workers with high technicality in baking chocolate are responsible
to prepare the cake. The ovens are preheat 160 Celsius, buttering the pan and mixing the
cocoa powder, flour, sugar, eggs, milks and baking soda according to the recipe. The
ingredients are weight precisely to ensure the cake surpassed quality control provided by the
company and making sure the cake are identical to each other. On top of that, the cake will
be poured in our exclusive designed plastic container and baked for about 30 minutes.

• Selling the Chocolate Cake

The whole production process is done throughout the day from 9:00AM to 5:00PM, the
chocolate cake is store in chiller to extends the longevity of the cake. On estimation, there
are about 300 units of chocolate cake produced daily throughout the week. The cake will be
ready for customers to order. Once the cakes are customers’ ready, the company will blast
open orders for the public. Chocolate Meleleh social platform such as Instagram and
Facebook are populated with the latest post for the customers to request orders. Customers
service will handle orders from the customer and preparing for shipping or cash on delivery.

The orders will be tracked in the sales management system as a systematic approach to
make sure the customers receive the most satisfaction for every orders. Besides that, the
customers also can contact the customer service via whatsapp. The will ease the customers
to directly message or call the customer service to place an order. The company provide a
wide range of alternative to allow customers to orders. The personal touch between the
human to human interaction will provide close up engagement between the customers.

• Baking Classes

In addition, the company also conducted baking classes at the bakery as a part of the
key activities. The baking class is conducted on Saturday evening for the locals. One of the
workers is in charge to handle the class as the facilitator. The baking class is open to all people
across gender and age. They will be provided with the ingredients and equipment needed
during the class. The baking classes are usually conducted if there is a smaller number of
chocolate cake orders. Hence, the company are able to utilize the machines and ingredients
at the bakery.

5
 Key Resources
Key Resources covers the most part necessary for the production and delivery of the
products. The company’s key resources can be divided into several dimensions including
physical, intellectual, human and finance.

Physical

• Bakery

The company has a bakery located in Shah Alam. The bakery comes with top of the line
ovens, mixer and utensil. In addition, the bakery is one of the biggest asset owned by the
company. On top of that, the machines are designed especially for baking purposes. Thus, the
machines are less prone to depreciate in short period of time and to withstand continuous
usage without resulting any damage.

• Ingredients

The ingredients are stored in the inventory at the bakery. The ingredients include flour, eggs,
cocoa powder and sugar. All of the ingredients used in making the cake are Halal and clean.
The company will ensure all products use are fresh and in high quality. Therefore, farm fresh
eggs is one of the top priority to bring the fullness of flavour in cake.

Intellectual

• Chocolate Cake Recipe

The homemade chocolate cake recipe is one of the intellectual resource. The recipe is can
only be used internally for the chocolate cake production.

Human

• Experience Workers

The company consist of several employees and bakers. The employees are packed with
skills, knowledge and expertise. Most of the employees have qualification to be certified as
pastry chef which contribute as the company key resources. Besides that, the company are
able to hire the optimum number of workers to utilize full efficiency in the making of the
chocolate cake.

Finance

• Financial Assistant

At the beginning, the company financial are fully driven by the owner. However, as the
company expanded, a business loan under BSN Microplus is done to stimulate the day-to-day
business operation. The business loan helps to increase the company’s capital allowing the
company to increase the production of chocolate cake.

6
 Value Propositions

Chocolate Moist Meleleh are focusing on moist chocolate cake. The chocolate cake is
sweet delightful dessert that can be served at any time of the day. Chocolate cake are most
favourable dessert which consist of vast majority of customers from all age group. On top of
that, the company are also offering baking classes for the locals who are interested in making
the chocolate cake. The main value propositions of the cake includes

• Homemade Chocolate Cake

The chocolate cake are baked exclusively in the bakery in order to preserve the quality
and taste of cake. In addition, a quality control is conducted throughout the process to ensure
the ingredient used are Halal, clean and also to meet the required standard. By producing the
cake in the bakery, the company are able to hire the optimum number of workers to utilize
full efficiency in the making of the chocolate cake.

• Variety Selection of Toppings

The customers can choose a variety selection of toppings including whipped cream,
chocolate rice and chocolate chip as an add-ons for the chocolate cake, which are selected
based on the customer’s needs. The topping will boost the commercialise value of the cake.
Thus, the chocolate cake attractiveness level will increase to cater a wide range of customers
from all age group.

• As A Door Gift for Ceremonial Events

The chocolate cake can be serve as a door gift during ceremonial events such as wedding,
birthday party and open houses. The cake is store in a small plastic container to ease the
logistic factor in transporting and storing the cake. Besides that, the production of the cake is
done at in-house bakery. Thus, the company can handle mass orders and able to produce the
cake in short period of time.

• Specialize tools

The in-house bakery comes with top of the line ovens, mixer and utensil. These high-end
machinery will provide the best learning experience for students which will provide less
learning-curve on operating the tools provided. In addition, the machines are designed
especially for baking purposes. Thus, the machines are less prone to depreciate in short
period of time and to withstand continuous usage without resulting any damage.

• Fresh Products

The company is focusing on quality checking to ensure all products use are fresh and
quality. The farm fresh eggs will bring the fullness of flavoured cake and also preserve the
moister of the cake.

7
 Customer Segments
Customer segment for Chocolate Meleleh are more focused on demographic and the
geographical factors to determine the ability or willingness of customers to pay for the
chocolate cake.

Demographic

• Age Group

Chocolate cake is a sweet savoury dessert which gain many attractions among children,
teenagers and adults. The teenagers and young adults are majority of the customers because
both age group have the most buying power and money for sales contribution. The company
believes young adult in the country are working and able to generate they own income. Thus,
the subset of this age group will do whatever it takes to get the most delicious cake to satisfy
their wants.

In addition, teenagers are the key players in directing the customer segments. With the
power of social media, teenagers have to ability to burst the bubble of Chocolate Meleleh’s
chocolate cake through the power viral. By engaging with teenagers, the company are not
only earn sales from the purchase of the chocolate cake, but also provide a free marketing
strategy to expand their customers range.

Both group also more appreciated on tasty chocolate cake compared to the seniors
citizen. The seniors are less favourable with the intensity of sweetness in the cake. The
company understands the differential factors among the customers. Thus, Chocolate Meleleh
are more concentrate toward teenagers and young adults.

Geographic

• Klang Valley

The company are focusing on the Klang Valley are here in Selangor. Klang Vallley is
selected as the target market due to location of bakery which is based in Shah Alam.
Therefore, Chocolate Meleleh can be easily distributed toward the customers in the region
via shipping, self-collect or cash on delivery. A smooth operation for ordering the products
can be conducted to maximize the customer’s satisfaction and quality control.

However, the company is also taking orders from customers all across Malaysia due to the
capability of shipping the chocolate cake via courier. Although there is charges for shipping
fees, the customers are willing to spend some money for the cake. Adding up to the numbers,
the orders outside the Klang Valley is only about 30% of the total sales. Therefore, the fraction
of the customers are considered to be too low in order to push it as the target market.

8
 Customer Relationships
Customers relationship helps to build strong foundation between Chocolate Meleleh
and the customers. The company’s approach to build the customers relationship is via
personal assistant.

• Personal

The Personal type of Customer Relationship is based on human interaction. The

customers can communicate with the representative to place an orders or inquire about the
chocolate cake. The staff will handle orders of customers via social media, WhatsApp or calls.
The personal relationship allow customers to feel more comfortable to deal with the real
human compared to automated chat bot system. The personal customer relationship also
provide slight advantage in handling calls and 24/7 availability for the customers.

• Customer Satisfaction

The personal is relationship between the company and customers is a long-term

relationship, where the company will maintain the bond from the very first order until the
chocolate cakes are received by the customers. The long-term relationship is vital in order to
allow customers repeating orders from Chocolate Meleleh. The company will gather
feedback from the customers for any improvement and modification to improvise the taste
of chocolate cake. Thus, serving the best customers satisfaction for the customers.

• Stay in Regular Contact

Active customers with high frequency of orders will be sorteded as regular customers. The
sales representative will attain the regular customers with the latest promotion and
discounts. Regular customers will receive personal message via WhatsApp or Instagram Direct
Message. In addition, the company will give out full dedication and support to engage with
the customers from placing orders to feedback review.

• Loyalty reward

By maintaining long-term relationship, the company can ensure a continuous stream of

revenue from the customers. Customers relationship helps to build the reputation and trust
in the heart of the company. Chocolate Meleleh will provide freebies such as merchandise,
discount and free chocolate cakes for the regular customers.

9
 Channels
Distribution Channels are the method for the company to deliver the chocolate cake
in order for the customers to be aware of the products at the same time to satisfy the need,
selling and delivery the products and services. The channels also act as customer support for
the company to gather the right approach to deal with variety type of the customers segment.

• Social Media

The company has social media account under the name of @chocolatemeleleh on
Facebook and Instagram. Social media is main channel for the company to reach out to the
customers ranging from the teenagers and young adult. Most of the customers segment are
introduced to the Chocolate Meleleh via social media. The company will follow the customers’
Instagram account to gain their interest. The company will update the latest feed on social
media, by including collection of the chocolate cake and sales promotion.

• Whatsapp

The company has registered a WhatsApp business account to handle the customers.
Customers can contact with the company directly through the medium. WhatsApp business
provide functionalities that allow smooth conversations between both parties. The shortcut
message for quick replies, chats label and business profile catalogue helps to enhance the
ordering process for the customers. In addition, Chocolate Meleleh can label the customers
as new customer, potential customer and paid customer within the WhatsApp business which
enable the customers representative to apply different strategy for different type of
customers.

• Face-to-Face

On top of that, Chocolate Meleleh also channel the customers through face-to-face. The
company believes the word of mouth is the best approach and most cost-effective to channel
the customers toward chocolate cake. Therefore, the company will encourage to customers
to promote their products, follow their on Instagram and share the cake with the peers and
relatives of the customers.

10
 Cost Structure

The cost structure of the company are divided into two, which is variable cost and
fixed cost. The majority of variable cost are consists of the operating expense such as the
chocolate cake ingredients, transportation cost and utility bills. In addition, telephone bills,
rent and worker’s salary are calculated as the fixed cost.

• Chocolate cake ingredients

The cost of producing the cake depends on number of orders they received per month.
Chocolate cakes ingredients are the largest contribution for the cost. The ingredients include
flour, eggs, cocoa powder and sugar. In addition, the packaging of the chocolate cake, the
plastic container also add ups to the cost of chocolate cake production.

• Transportation cost

Transportation cost covers buying the ingredient to make the cake and sending the
cake to the customers. Transportation cost may vary, based on distant calculated in
kilometres (km) to the location of the customers. In addition, the company also offers
shipping for the chocolate cake via courier such as Poslaju. The shipping cost also accumulates
under the transportation cost.

• Utility Bills

In addition, the utility bills such as electrical bill and water bill are considered as the
variable cost because it is parallel amount of usage in the bakery. Mass production of
chocolate cake will results an slight increase in the bills because of the usage of machinery
such as oven, mixer, lamp and computers. The machine and the bakery are clean every day
at the end operation, rises the water bills.

• Telephone bills

The telephone bills are in fixed value due to selection of high end postpaid plans which
comes unlimited calls and internet. Thus, the company are able to communicate with the
customers though social media platform for example Instagram, Facebook and Twitter allow
the company to engage easily with the customers .

• Rent

The rental of the bakery are paid monthly to the respective owners every month. The
cost of shop lot rental is RM500 a month which are in reasonable amount. Thus, allowing the
company to channel the revenue toward variable cost.

• Worker’s Salary

The company consist of several employees and bakers. The salary are paid based on
employee’s speciality and expertise.

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 Revenue Streams

Based on the company’s observation, most customers demanding for delicious

chocolate cake at the most reasonable price. The chocolate moist cake contribute the largest
amount of earning for the company. In addition, the company also conducted baking classes
at the bakery where the company are able generate revenue from the registration fees of
baking classes.

The company generates their overall income through sales of the chocolate cake and
also the baking classes. Both revenue stream are strategized by the company as fixed pricing
because the company understand the willingness of customers to pay for a piece of chocolate
cake and baking classes. The revenue streams of the company are calculated as follows

• The chocolate cake with topping add-ons is retailed at RM5.

The market structure of moist chocolate cakes are ranging from RM4 to RM8. The
customers are willing to pay close to RM8 for a chocolate cake. However, the competitors are
only selling plain chocolate with chocolate syrup on top. The company decided to sell the cake
with additional toppings for only RM5. This will provide a slight advantage for the company
to compete with other local sellers and also attracts more customer to buy the cake.

• Focus on producing the cake in large quantities.

Due to affordable cake pricing, the company are targeting to produce the cake in large
quantities. A continuous development is done in order to produce the cake with minimum
amount of cost and also in the shortest time possible. This action will help the company to
produce the chocolate cakes based on the demand of customers which resulting a significant
increase in number of sales.

• The students are required to pay RM30 for the registration fees.

They will be provided with the ingredients and equipment needed during the class. The
baking classes are usually conducted if there is a smaller number of chocolate cake orders.
Hence, the company are able to utilize the machines and ingredients at the bakery.

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