Académique Documents
Professionnel Documents
Culture Documents
1.0
2.0
3.0
4.0
5.0
6.0
7.0
5.3.1.5
Palletizing Cartons .................................................... 34
5.3.1.6
Products Monitoring ................................................. 34
Conclusion....35
Reference.................................................................................................................... 36
Appendix A ................................................................................................................ 37
1.0
Executive Summary
1.1
lifestyle for human. The purpose of forming this team is to build something that we don't
have in currently and is cheap and functioning. We start up with a combination of laptop bag
and chair, this is our first product. We try to innovate and produce quality product to make
human life easier with the main focus of creating low cost product.
We innovate our product through research and development can give a company its
competitive advantage in the industry.
1.2
Function of Members
3
Name
Na Chin Yeak
Jimmy Wong See Weoi
Huang Yuit Hwai
Chung Ren Fatt
Teoh Wei Sen
1.3
Function
Technical Drawing
Finance Planner
Packaging Planner
Product Designer
Marketing Planner , Product Presenter
We believe that most of the people will face a problem which is finding a place to sit while
working on a laptop. Our objective is to design a product are able user have a seat anytime
and anywhere.
Our main target customers are students. Most of the students will face problems when finding
place to seat and using laptop, campus place for study and seat is limited, as picture below:
2.0
Market Study
2.1
Demographic Profile
All of the founders are from Melaka, therefore it is only natural to study on the state of
Melaka. Melaka, with a total population of 788,706 by 2010, consist of an area of 1,664km2.
As in 2013, Malaysia has 414 Private Colleges, 37 private universities, 20 private universitycolleges, 7 foreign branch campus and 20 public universities.
Two of the most famous universities are University Teknikal Malaysia (UTeM) located in
Durian Tunggal Malacca, and Multimedia University (MMU). Multimedia University
(MMU) Melaka would be a great place to start this business. According to our survey, many
respondents consist of MMU students and lecturers.
2.2
Total Student
Melaka
Cyberjaya
Other Branch
Total
10164
7598
256
18018
Initially, we would like to target MMU students. At the later stage, we would like to expand
the business to more than MMU, for example University Teknikal Malaysia Melaka (UTeM)
or even universities and colleges all over Malaysia. Currently there are 1,134,134 students
enrolled in Malaysian higher education institutions with almost 100,000 of them are
international students. Since our sales will be made online, the total potential buyers can be
expanded, and expand to other countries.
2.3
Survey Analysis
Before we start to produce the product, we have done the survey about the product need in
the market. Total we have 40 respondents. From the survey we gathered the result and
summary as below and the survey data is attach on the appendix A.
The result of survey show that 65% of the respondents is on age range between 18 and
22; 33% is on age range between 23 and 26; and only 1 of the respondents is above 26 years
old. 40 respondents, 50% is male and 50% is female. 80% of the respondents is having their
own laptop bag.
6
From the result, we found that 23 of the respondents are agreeing that finding a place
to sit while working on a laptop is a huge problem whereas 7 respondents strongly agree.
Thats a total of 30 respondents out of 40, which is 75%. We introduced our product that is
combination of the laptop bag and chair to respondents, 25 of respondents agreed that the
product will save thier trouble and 4 respondents strongly agrees while 11 respondents are not
sure about that. In sum, we obtained 29 positive answers out of 40 respondents.
About the problem related to convinience, we asked them how well would the word
convinient describes the product. We got 12 respondents who answered moderately well;
18 respondents answer very well and 6 respondents answer that it was extremely well.
When it comes to the term innovative, 12 of 40 respondents feel the word described the
product moderately well, 20 respondents felt it was very innovative and 8 of respondents is
felt it was extremely innovative. In the last question, 75% of the 40 respondents fell that the
product will be widely used within next 5 years. We are successful on this stage, we saw our
product market as the results was promising.
2.4
2.5
i) Convenience:
The highest selling point of our product. Customers need a place to sit down and use their
own laptop whenever they need and wherever they want. Often we find that public meeting
areas are occupied or unavailable. With this product, we dont have to look for a place to seat.
We could sit anywhere, for example a confortable indoor area or even outdoors with a
conducive environment for work.
2.6
Pricing Strategy
Pricing is the process of determining what a company will receive in exchange for its
products. Pricing factors are manufacturing cost, market place, competition, market
condition, quality of product. Due to this definition, we have undergone a detailed price
analysis from our competitors. A normal laptop bag on market is around RM 120 to RM 400,
but in order to build our reputation in this early stage, we set the product selling price at RM
110.00, the strong partnership with suppliers is important, so we are able to sell good quality
product at reasonable price because our main target is students, they are no much of money to
spend on laptop bag.
2.7
Promotion
Introductory price Initially, price of the product must be set lower to pique the interest of
customers. After a month, this offer will be revoked.
Sales Promotions Promotions should be offered from time to time, for example, Christmas,
New Year or even PC fair sales. By making these promotions
Social networking sites Social networking sites are one of the easiest way to spread
information worldwide. Information can be viral in just an instant. Therefore, using this
medium would assist in exposing our product through the internet. Facebook is a very
popular social networking website with over 1.3 billion active users as of June 2014 therefore
promoting our product in Facebook will be great. Youtube is also a good place to invest on
promoting our product. Advertisements at the beginning of each video are often hard to skip,
so Youtube viewers can look through our product and might be interested in it.
Magazine Magazine would be a good medium to promote our product as it is a picture rich
medium. Viewers can have a good insight on the product and all information is provided in
the magazine. Magazines such as PCMAG, PC Mania and CHIP Magazine are good
platforms to promote our product. We might even attach coupons that viewers can cut out to
be used when buying our product.
Newspaper It is a good move to advertise our product on the newspaper. The literacy rate of
Malaysia is 83.5% with a number of 31 daily newspapers. The total circulation is 17,000. The
Star is a good selling newspaper in Malaysia with an average circulation of 290,000 to
10
300,000 according to Audit Bureau of Circulations, Malaysia (July 2013 Dec13). We can
advertise our product under the Tech or Lifestyle section. Another good newspaper is the
New Straits Times with a circulation of 200,000.
Distribution Strategy
Online website - We will first create an online website and then advertise our website. All
information such as product detail, contact info, customer service, and promotions can be
found in the website.
Our distribution channel will be the direct distribution that involves distributing direct from a
manufacturer to the consumers, for example Dell Computers providing directly to its target
customers. The advantage of direct distribution is that it gives the manufacturer a complete
control over our product
11
Manufactu
rer
Consumer
Express couriers Skynet, DHL, Poslaju, GDExpress can be considered as our courier
service. Either one is great to deliver in-country deliveries.
12
Product
specification
Design
reviews
Design
verification
Design
planning
Design
execution
Product
validation
Documentat
ion
Product
developmen
t
Design Planning: A highly refined plan including schedule, with tasks and durations,
necessary resources & estimated costs for the product design work will be developed to
guide our products design.
Design Documentation: The necessary documentation is developed including
comprehensive information defining the process to build product.
Product Development: Models will be created to define product specifications. We will
perform the necessary analysis to determine performance expectations for our product.
Design Execution: Our product is then built using the design documentation that will be
used for design verification.
Design Reviews: Reviews to evaluate current design information against product
specification to determine if progress on work will meet desired requirements. The R&D
team will constantly seeking for improvement.
Design Verification: Testing to verify product design is conducted to determine alignment
with product specifications. Design changes will be incorporated to continually improve
the product.
Product Validation: Utilizing independent testing to determine if the product will meet the
market needs. Results of validation can be input for both changes to the product
specification and the product design.
13
3.1
14
15
3.2
No
Material
Quantity need
per Product
1
Cost per
Item
RM32.00
Total Cost
RM32.00
Aluminium
RM5.00
RM5.00
Aluminium
RM5.00
RM5.00
Plastic
RM2.50
RM5.00
Plastic
RM2.00
RM2.00
Alumium
RM1.00
RM2.00
Stainless
Steel
RM0.50
RM2.00
Total
RM53.00
16
3.3
3.3.1
17
3.3.2
Step 1:
Step 2:
Step 3:
Step 4:
Step 5:
18
3.4
Prototype
19
20
21
22
23
24
25
According to our expected financial forecast, we assume that our product and sales will reach
RM374,000. Our sales might not be so good because our products still in introductory, we
had to penetrate the market first. We assume that we make loss in the first year and expect our
sales will increase in next year. In the second year, we assume our sales up to RM660,000
and third year is RM924,000.
26
Fixed cost of every month is RM15,490. Fixed cost included administration cost, marketing
cost and operation cost. However there is a variable cost which we put it under operation cost
because this cost is the courier expenses for our entire product.
According to the break-even analysis, we able to earn profit after 282 units sales.
27
4.1
Breakeven Point
28
29
4.2
NPV
NPV =
CF 1
CF 2
CF 3
$ 152,846.57 $ 441,567.15 $ 885,087.72
+
+
ICO =
+
+
$ 140,000=$ 954,484.49
1
2
3
(1+ k ) (1+k ) (1+ k )
(1+ 0.13)1
(1+0.13)2
(1+0.13)3
30
Requirements of Packaging
5.1.1
Protection
The products should be protected from different external impacts such as mechanical shock,
compression, dirt, etc. where these can be done by the use of various methods like
polystyrene chips, plastic-wrap, bubble-wrap, etc. The protection method is varied from
different types of product; therefore, an adequate protection of product should be concerned
in term of types of material, design and robustness.
5.1.2
Handle-ability
Regattieri et al. had conducted a study state that the perception of packaging by end
consumers stated that the main requirement a package should guarantee is that of
handleability. Hence, the packaging design should follow the ergonomic principle. In other
words, it must comply with human behavior and physique when using the product.
5.1.3
Security
The packages must be secure while shipping to minimize theft and time spent on the product
traceability. Therefore, it is necessary to include identification technologies such as barcode
or RFID tags.
31
5.1.4
Environment Consideration
The packaging design should take environmental issue into consideration to minimize waste
materials which will cause impact to the environment. Hence, it is necessary to produce
package that comply with three Rs concept: reuse, reduce and recycle. This is not only
reduces the environmental pollution level but increase customer satisfaction due to its three
Rs characteristics.
5.2
Problem Identification
5.2.1
Compression
When external forces resulted from vibration between packages or transport, stacking of
packages, shock from emergency brake, etc. which will cause compression, it will damage
the packages or products.
5.2.2
Abrasion
It is caused by the contact between packages during transportation. For instance, the improper
packaging that does not fix the product into a rigid package and induce movement of product
inside the package, therefore, causes the damage to the product.
5.2.3
Shipment Handling
Improper handling will increase the risk of product damage due to road conditions and
mechanical handling. In addition, during the handling shock and vibration will form. Hence,
products will absorb these external impacts and causes damage.
32
5.2.4
Environmental Exposures
Temperature
Temperature may be varied from one place to another or one country to another. Extreme
temperature changes will affect the performance of packaging materials since its
5.3
Protection Measures
Requirements of Protection
5.3.1.1
Outer Packaging
5.3.1.1.1
It is paper based material that comprised of a fluted corrugated sheet and linerboards which
act as cushion for the products to reduce shocks, vibrations, etc. therefore, it is used to pack
the products (in this case bag with chair) for storing, distribution and retailing. It is selected
as outer packaging due to its characteristics:
light weight
low price
come in various size
recyclable
The materials used for corrugated fiberboard boxes must not susceptible to any impacts and
hence, it is necessary to perform four-foot drop test so the metal bar of the bag will not
33
damage. This is to ensures that the products will be able to withstand any impacts during
shipping.
5.3.1.2
Inner Packaging
5.3.1.2.1
Bubble Wrap
It is made of low density polyethylene with a number of spaced protruding air-filled bubbles
to provide cushioning function. Our products contain metal bars which might damage during
transit, hence, with the use of bubble wrap, it can reduce and prevent shocks and scratch
during shipment.
5.3.1.3
All the products must be labelled and marked including barcode, tags, ID of each product,
name and address of shipper and consignee with proper ZIP code. With these labeling and
marking, the items can be traced if there is any incident happen such as theft, item lost, item
damage, etc.
In addition, the packages should include handling and precautionary markings. This
can be done by pasting text and pictorial markings on the packages to ensure the shippers are
able to notice them while loading, unloading or delivering with special care.
5.3.1.4
Sealing
Sealing ensures the packages remain intact and the products are secure inside it. The sealing
tape must be pressure sensitive to seal the package and cannot be replaced by common tapes
such as cellophane, duct tape, etc.
5.3.1.5
Palletizing Cartons
34
When the products are packaged completely it is then enter into palletizing stage from storage
stage to distribution stage. Palletizing stage must consider the total weight of packages and
size of distribution from one place to another place. Column stack is a common method to
palletize packages because it can reduce the cartons top-to-bottom compression.
During storage stage, it is important to estimate the optimum storage period as long
term storage will degrade the corrugated or other paper-based boxes or products. Therefore,
the palletizing cartons will lose its strength in holding it and damage the packages. In
addition, the storage location must avoid from high humidity environment. When a humidity
level is increased until a certain percentage, it will reduce the packages resistance.
5.3.1.6
Products Monitoring
In summary, packaging plan should consider all expected and unexpected variables. It is not
only about the appearance of the packages but problem identifications are crucial to prevent
any losses during packaging since the issues are listed. Hence, protection measures are able to
apply to all packages to handle the problems.
35
6.0
Conclusion
To create a business plan, we first identified the problems and frustration faced by the people
around us. Using our engineering course knowledge and some knowledge about
contemporary business and management, we came out with a new product that solves the
problems. Thus, the business plan was created.
In market study, we discovered the needs and wants of potential buyers and customers and
provided goods and services. We defined the target market, which are students. We studied
about the external environment and focused on the marketing mixes which are product, price,
promotion and distribution strategy.
For the design plan, we incorporated some engineering knowledge that we learnt. Using 3D
modelling, we could present the product in a more sophisticated way. Designing the
prototype also requires some understanding about forces and properties of materials. A good
design plan will ensure the functionality and stability of the product.
As for the financial planning, we analysed the value, cost and stock in the short term and also
the long term. We prepared financial forecast, breakeven point, and net present value (NPV)
in the financial planning. According to the break-even analysis, we able to earn profit after
282 units sales.
There are two main purposes of packaging; the first purpose involves logistics as the
packaging should protect products in transit. Therefore, it will reduce the occurrence of
damage or loss due to misplaced goods. The second purpose is marketing strategic which is
related to customer service and sales promotion.
To sum it all, in creating a business, we should identify the reasons for starting the business,
analyse the market, plan properly in advance, evaluate our results. Therefore each team
members should play their role to constantly maintaining and improving the business.
36
7.0
Reference
37
Appendix A
38
39
40
41