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Contents

ACKNOWLEDGEMENT
...............................................................................................................................
5
EXECUTIVE SUMMARY............................................................................................ 6
1 INTRODUCTION
...............................................................................................................................
7
1.1 Introduction
............................................................................................................................
7
1.1.1 Name of the company
........................................................................................................................
7
1.1.2 Nature of Business
........................................................................................................................
7
1.1.3 Industry Profile
........................................................................................................................
7
1.1.4 Location of the business.........................................................................8
1.1.5 Date of business commencement..........................................................8
1.1.6 Factor in selecting the proposed business..............................................8
1.1.7 Future prospects of the business............................................................8
1.2 Purpose of preparing the business plan
..........................................................................................................................
10
1.2.1 To apply for loans or financing facilities from the relevant financial
institutions
.......................................................................................................................
10
1.2.2 To evaluate the project viability and growth potential
.......................................................................................................................
10
1.2.3 To allocate business resources effectively
.......................................................................................................................
10
1.2.4 To overcome the problem that discovered
.......................................................................................................................
10
1.2.5 To act as a guideline for the management of the proposed business
.......................................................................................................................
11
1.3 Company Background
..........................................................................................................................
12
1.4 Background of Partners
..........................................................................................................................
13
1.4.1 General Manager
.......................................................................................................................
13
1.4.2 Marketing Manager
.......................................................................................................................
13
1.4.3 Operation Manager
.......................................................................................................................
14
1.4.4 Financial Manager
.......................................................................................................................
15
1.5 Contract Agreement
..........................................................................................................................
16
1.5.1 Types of business :
16
1.5.2 Capital :
17
1.5.3 Period of Partner Agreement :
18
1.5.4 Distribution of Profits and Loss :
18
1.5.5 Perquisite :
18
1.5.6 Partnership Property :
19

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1.5.7 Death :
19
1.5.8 Bankruptcy or Dissolution of Partnership :
19
1.5.9 Retirement :
20
1.5.10 Others :
.......................................................................................................................
20
1.6 Location
..........................................................................................................................
22
1.6.1 Physical location of the project
.......................................................................................................................
22
1.6.2 Building
.......................................................................................................................
23
1.7 Conclusion
..........................................................................................................................
25
2 ADMINISTRATIVE PLAN
.............................................................................................................................
26
2.1 Introduction to business
..........................................................................................................................
26
2.1.1 Vision
26
2.1.2 Mission
.......................................................................................................................
26
2.1.3 Tagline
26
2.2 Logo
..........................................................................................................................
27
2.3 Organizational Structure
..........................................................................................................................
28
2.4 List Administrative Personnel
..........................................................................................................................
29
2.4.1 Manpower
.......................................................................................................................
29
2.5 Job Description of Personnel
..........................................................................................................................
30
2.6 List of Equipment
..........................................................................................................................
31
2.6.1 Office Furniture and Fittings
.......................................................................................................................
31
2.6.2 List of Office Supplies
.......................................................................................................................
31
2.7 Basic Incentives
..........................................................................................................................
32
2.7.1 Employment Provident Fund (EPF)
.......................................................................................................................
32
2.7.2 Social Security Organization (SOCSO)
.......................................................................................................................
32
2.7.3 Working Hours
.......................................................................................................................
32
2.7.4 Annual leave
.......................................................................................................................
32
2.8 Additional incentives
..........................................................................................................................
33
2.8.1 Medical Leave
.......................................................................................................................
33
2.8.2 Over Time
.......................................................................................................................
33
2.8.3 Maternity leave
.......................................................................................................................
33
2.9 Schedule of Remuneration
..........................................................................................................................
34
2.10 Administrative Budget
..........................................................................................................................
35

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3 MARKETING PLAN
.............................................................................................................................
36
3.1 Introduction
..........................................................................................................................
36
3.2 Product Description
..........................................................................................................................
37
3.3 Segmentation
..........................................................................................................................
40
3.4 Market Size
..........................................................................................................................
42
3.4.1 Population
.......................................................................................................................
42
3.4.2 Average Spending Per Year
.......................................................................................................................
42
3.5 Market Share
..........................................................................................................................
43
3.5.1 Market Share before entering the market
.......................................................................................................................
43
3.5.2 Market Share after entering the market
.......................................................................................................................
43
3.6 Competitors
..........................................................................................................................
45
3.6.1 Xtrasim Marketing Sdn Bhd
.......................................................................................................................
45
3.6.2 Seng Tat Marketing Sdn Bhd
.......................................................................................................................
45
3.6.3 CHM Plastic Industry
.......................................................................................................................
46
3.6.4 Rainbow Enterprise
.......................................................................................................................
46
3.7 Sales Forecast
..........................................................................................................................
47
3.8 Marketing Strategy
..........................................................................................................................
48
3.8.1 Product
.......................................................................................................................
48
3.8.2 Price
.......................................................................................................................
49
3.8.3 Form of Distribution Channel
.......................................................................................................................
49
3.8.4 Promotion
.......................................................................................................................
50
3.9 Marketing Budget
..........................................................................................................................
55
4 OPERATIONAL PLAN
.............................................................................................................................
56
4.1 Introduction
..........................................................................................................................
56
4.2 Process of Planning
..........................................................................................................................
57
4.2.1 Activity chart for purchase raw material and equipment
.......................................................................................................................
57
4.2.2 Process flow chart for company
.......................................................................................................................
58
4.2.3 Symbols used in the process flow chart
.......................................................................................................................
59
4.3 Layout of Operation Area
..........................................................................................................................
60
4.4 Material Requirement
..........................................................................................................................
61
4.4.1 List of Materials and Materials Suppliers
.......................................................................................................................
61
4.4.2 Material Planning
.......................................................................................................................
62

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4.5 Equipment and Machine
..........................................................................................................................
64
4.5.1 List of machine and equipment
.......................................................................................................................
64
4.5.2 List of machine and equipment supplier
.......................................................................................................................
64
4.6 Production Planning
..........................................................................................................................
65
4.6.1 Operational Planning for Output Based on Sales Forecast
.......................................................................................................................
65
4.7 Man Power Planning
..........................................................................................................................
66
4.7.1 To Determine The Number Of Workers Required
......................................................................................................................
66
4.7.2 Schedule Of Remuneration
.......................................................................................................................
67
4.8 Operation Hours
..........................................................................................................................
68
4.8.1 Business Hours
.......................................................................................................................
68
4.8.2 Operating Hours
.......................................................................................................................
68
4.8.3 Working Schedule
.......................................................................................................................
68
4.8.4 Working Days
.......................................................................................................................
70
4.9 Operation Budget
..........................................................................................................................
71
4.10 Project Implementation Schedule
..........................................................................................................................
72
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ACKNOWLEDGEMENT

Assalamualaikum w.b.t.

Alhamdulillah, first of all we would like to thank Allah s.w.t as finally we were able to

finish our assignment given by our lecturer to us. This task had been done with all affords by

group members even though a little bit problem were happened among us while doing this

assignment. Luckily, the problems can besetted down and we were able to adapt properly

and wisely.

Besides that, big thank we addressed to our supervisor Mr Norazali Nordin because

without his guide our business plan cannot be done successfully like this. He always give us

supports and guide us on how to do business plan in purpose to produce a good outcome

from research that been studied. We also learnt how to start up a new business and

produced an innovative product which gives benefits to the customers. The named of our

business is Rainbow Enterprise. Our business decides to manufacturer plastic-based

product and we are focusing on producing BPA-free water bottled by adding some interesting

features such as adjustable, heat-resistant, cold-resistant, eco-friendly, durable and easy-

handle.

Finally, thanks to our beloved friends that always stick together and also work hard to

produce a good business plan with all afford and responsibility. Hope that all affords will give

a lot of benefits to us. Million thanks to our classmates because help us to complete the

business plan. They always give us ideas and comments on so that we can improve our

business plan in many ways.

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EXECUTIVE SUMMARY

Rainbow Enterprise is based on partnerships that consist of four members. The

members consist of the General Manager, Operation Manager, Financial Manager, and

Marketing Manager.

Rainbow Enterprise is related to the production of BPA free water bottles which

provides a lot of advantages. Our market is focusing to students, kids, athletes and others.

Our business will be expected to commence on 2015 and our vision is to become famous

brand name in Malaysia in the next 5 years.

Thus, Rainbow Enterprise has the potential of being a profitable business if its done

in modern way with large scale and systematically managed. We will expect that our

business will become more develop in the next future. It is hope that this gives more

advantages for us to make our product more profitable and stable in the long term period.

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1 INTRODUCTION

1.1 Introduction
1.1.1 Name of the company
The named of our company is Rainbow Enterprise. The factor in selecting this

name is due to the element of water that is found in the rainbow. We run a

business that produces water bottles because we are aware with the needs of the

water in our body.

1.1.2 Nature of Business


Our company decides to be a manufacturer of plastic based product and we are

focusing on producing BPA-free water bottled. There are several businesses that

produce a similar product but not identical with our product. They just simply

produce a BPA-free water bottle. However, we have improved the existing water

bottle by adding some interesting features such as adjustable, heat-resistant,

cold-resistant, eco-friendly, durable and easy-handle.

1.1.3 Industry Profile


As a pioneer in innovative and creative plastic products, Rainbow Enterprise was

created to become a global entity that will be trusted by the community. Our

presence will make a significant difference in the lives of people. We are

specializing in manufacturing BPA-free plastic water bottled. Today, our business

will make a difference in the lives of the communities by offering them the

opportunity to improve their lives and create positive impact on the health of their

families.

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1.1.4 Location of the business
Our office and factory is located in a same building which are located at

the address shown below:

No. 12, Puchong I-Hub Factory,


Taman Mas Puchong,
47100, Puchong,
Selangor DarulEhsan.
Malaysia.

1.1.5 Date of business commencement


We start our business on 11th February 2015.

1.1.6 Factor in selecting the proposed business


We decided to proceed with this business because we want people to use a

plastic-water bottled which is BPA free. Risk of disease caused by these

chemicals can be reduce and make them feel safe when use our product.

Additionally, these bottles are also eco-friendly and reusable which is safe for our

earth. The volume of the bottle can be adjusted as well it can be filled with hot

water. Simultaneously it will save your time, space and money, thus improve the

quality of existing products on the market.

1.1.7 Future prospects of the business


For the beginning of our business, we intend to supply our products to all over

Penang and Kedah. In the future, we will establish a joint venture together with

well-known brands like Tupperware, Century, Apple Lady, Elianware, as an

alternative to expand the influence and strengthen our business. We will always

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improving our products from time to time to meet the demands of consumers all

over the world.

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1.2 Purpose of preparing the business plan
1.2.1 To apply for loans or financing facilities from the relevant
financial institutions
Our company applied for loans or financial facilities from Maybank Malaysia Bhd

Puchong Branch for RM 850,000. Starts up costs are all the resources such as

capital, raw materials, equipment and workers for the business to become

operational.

1.2.2 To evaluate the project viability and growth potential


The business viability is based on the demand from the consumers. Consumers

often look for a good quality product and standard prices. A business that

promptly delivers a service and reasonable price compared to its competitors has

competitive advantage. The sales of the product show that the product is

accepted in the market or not.

1.2.3 To allocate business resources effectively


Resources include capital, raw materials, workers, and equipment. To allocate

business resources effectively we spend capital wisely, purchase good quality

and reasonable price of raw materials and hiring worker which are more efficient

and effective.

1.2.4 To overcome the problem that discovered


We created a new innovative BPA-free water bottle that adjustable and eco-

friendly Most water bottles are created endanger consumers' health because they

contain BPA. The chemical could be harming childrens kidneys and hearts,

independent of the heart issues related to obesity. The bottles also are foldable. It

can be compress to the smaller size.

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1.2.5 To act as a guideline for the management of the proposed
business
All departments have their own role in making this business successful and act

as a guideline in processing of product. Each department had their own task and

responsibilities such as administrative department is responsible in hiring,

working hours and training sessions for development of skills.

The marketing and operating department are responsible in promoting the

product that are going to be sell, the process of the product and calculate the cost

in producing one unit of the product. The financial department is responsible in

controlling the cash inflow and outflow of the company.

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1.3 Company Background

Name of the Company Rainbow Enterprise

Business Address No. 12, Puchong I-Hub Factory,


Taman Mas Puchong,

47100, Puchong,
Selangor Darul Ehsan.
Malaysia.

Correspondence Address No. 12, Puchong I-Hub Factory,


Taman Mas Puchong,
47100, Puchong,
Selangor Darul Ehsan.
Malaysia.

Website www.rainbowofficial.com

E-mail rainbow_ent@yahoo.com

Telephone Number 03-567 8556

Fax Number 012-567 555


Form of Business Partnership
Main Activity Manufacturing in BPA-free plastic water bottled

Date of Commencement 11thFebruary 2015


st
Date of Registration 1 Disember 2014

Registration Number 79201-T

Name of Bank Maybank Bhd. Bandar Puchong Jaya, Puchong,


Selangor.
Bank Account Number 164899001431

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1.4 Background of Partners
1.4.1 General Manager

Name of Partners Muhamad Hafiz B. Muhamad


Identity Card Numbers 830521-14-5776
Permanent Address Lot 7201, Jalan Intan, Taman Setia Gombak,
53100, Kuala Lumpur.
Correspondence Address No. 12, Puchong I-Hub Factory,
Taman Mas Puchong,
47100, Puchong,
Selangor Darul Ehsan.
Malaysia.
E-mail hafizmuhdRBE@yahoo.com
Telephone Number/Fax Number 013-5822476
Age 30 years old
Marital Status Single
Academic Qualification Master In Entrepreneurship And Innovation
(UUM)(2008)
BBA (Hons) Entrepreneurship (UiTM) (2005)
Diploma in Business Studies(UiTM)(2003)
Course Attended Management Strategies & Skill Development
(2012) (MARA)
Skills Able to motivate and directing people as they
work, identifying the best people for the job.
Able to consider the relative costs and benefits
of potential actions to choose the most
appropriate one.
Have strong interpersonal and communication
skills
Experiences Experience as marketing manager.
Experience as executive.
Present Occupation General Manager at Rainbow Enterprise
Previous Business Experience Manager at Milano Furnishing Centre (Klang)
Sdn. Bhd. (2012)
Marketing manager at Sony Corporation
(2010)
1.4.2 Marketing Manager

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Name of Partners Nurazween Bt. A.Malik
Identity Card Numbers 870322-14-5562
Permanent Address No20, Jalan Seroja 15, Taman Seroja,
BBST, Sepang, Selangor.
Correspondence Address No. 12, Puchong I-Hub Factory,
Taman Mas Puchong,
47100, Puchong,
Selangor Darul Ehsan.
Malaysia.
E-mail azweenRBE@yahoo.com
Telephone Number/Fax Number 012-3199644
Age 26 years old
Marital Status Single
Academic Qualification Master in Office systems (UUM)(2011)
Bachelor of Business Administration (Hons)
Marketing (UiTM)(2009)
Diploma in Banking (UiTM)(2007)
Course Attended Creativity and Innovative workshop (2012)
(MARA)
Skills Good verbal and written communication
skills
Team-working skills and have ability to
delegate and motivate others
Majored in Communications & Public
Relations and Advertising & Marketing
Experiences Produced and created marketing products
for national marketing campaigns
Professional with more than 3 years
marketing and project management
experiences
Present Occupation Marketing Manager at Rainbow Enterprise
Previous Business Experience Product & Marketing Manager at Epoclub
Sdn Bhd (2012)
Manager-Head-Marketing at ABB Limited

1.4.3 Operation Manager

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Name of Partners Sindhu a/p Anthony Dass
Identity Card Numbers 860418-14-6228
Permanent Address 2-11-2 Menara Rajawali, Jalan 6/65 Ampang Ulu
Klang, 54200, Kuala Lumpur.
Correspondence Address No. 12, Puchong I-Hub Factory,
Taman Mas Puchong,
47100, Puchong,
Selangor Darul Ehsan.
Malaysia.
E-mail sindhuRBE@yahoo.com
Telephone Number/Fax Number 019-2078068
Age 27 years old
Marital Status Single
Academic Qualification Master of Business Administration
(UKM)(2010)
BBA (Hons) Marketing (UiTM)(2009)
Diploma in Business Studies (UiTM)(2007)
Course Attended Managing Safety: Systems that Work For
Operation Manager Fact Sheet (2012) (MARA)
Skills Able to lead a team of operations staff to
achieve business target with excellent service
standards
Able to work independently and have strong
interpersonal and communication skills
Strong managerial, interpersonal and
communication skills
Experiences Experience for Executive position
Train and lead a team of operations staff to
ensure daily operation complies business
target
Experienced in the operation and use of
various manufacturing and technologies
Present Occupation Operation Manager at Rainbow Enterprise

1.4.4 Financial Manager

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Name of Partners Muhammad Aatik B. Norudin
Identity Card Numbers 850408-14-6216
Permanent Address Lot 23, Jalan 3/1, Kampung Melayu Kepong,
Kepong, 68100, Kuala Lumpur
Correspondence Address No. 12, Puchong I-Hub Factory,
Taman Mas Puchong,
47100, Puchong,
Selangor Darul Ehsan.
Malaysia.
E- mail atiknoruRBE@yahoo.com
Telephone Number/Fax Number 013-3074505
Age 28 years old
Marital Status Single
Academic Qualification Master of Accounting (MAcc) (UniTAR)(2008)
Bachelor (Hons) Finance (UiTM)(2007)
Diploma Accounting (UiTM)(2005)
Course Attended Enhanced Defence Financial Management
Training Courses (2012)(MARA)
Skills Good interpersonal and communication skills
and problem solving skills
Computer literacy with knowledge in
accounting software and MS Office
Understanding financial statements, evaluating
financial performance, managing financial
systems and making wise investment decisions
Experiences Experiences in the field of accounting &
financial manager
Liaison with bankers, external auditors,
company secretary and tax agent in respect of
treasury, audit, secretarial and tax matters
Present Occupation Financial manager at Rainbow Enterprise
Previous Business Experience Financial analyst at Wiseman Capital
Management (2011)
IT & Financial Services-Malaysia at Hays
Accountancy & Finance (2009)

1.5 Contract Agreement


This agreement will bind the partners with the following aspects:

1.5.1 Types of business :


The business has been registered under the Business Registration Act 1956

on 1st February 2015 using the name of Rainbow Enterprise. The form of the

business is partnership. This business generally as a manufacturer of plastic

based product and focusing on producing BPA-free water bottled.

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1.5.2 Capital :
Each partner has contributed the capital as below:

Partners Name Contribution (RM) Profit Sharing Ratio


Muhamad Hafiz B. 56,250 25%
Muhamad
(830521-14-5776)

Nurazween Bt. 56,250 25%


A.Malik
(870322-14-5562)

Sindu a/p Anthony 56,250 25%


Dass
(860418-14-6228)

56,250 25%
Muhammad Aatik B.

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Norudin
(850408-14-6216)
TOTAL 225,000 100%

1.5.3 Period of Partner Agreement :


From the consent of all partners, we agreed that:

They have to run the business at least for five (5) years and partners are

prohibited from dissolving the business without the consent of other partners

resolutions.

1.5.4 Distribution of Profits and Loss :


Every partner has belonging this business and the amount of the profit from

this business as well. The profits generated will be distributed accordingly to

the amount of capital invested in the business. All partners will be liable to the

losses of the business according to the profit sharing ratio.

1.5.5 Perquisite :
Any additional pay is to follow current profit and will be present in the end of

annual financial report.

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1.5.6 Partnership Property :
The partnership properties are belongs to the partnership and partners

because it is not separate legal entity. [Partnership Act 1961; S.22]

1.5.7 Death :
A representative of the death partner can be appointed for replacement into

the business under the Malaysian Law. The close members of the family

upon the entire death partner share can make the transmission of the state.

1.5.8 Bankruptcy or Dissolution of Partnership :


1.5.8.1 When the partner is found lunatic, permanently unsound mind

[Partnership Act 1961; S.37(a)]

1.5.8.2 When a partner permanently incapable of performing his part of the

partnership contract [Partnership Act 1961; S.37(b)]

1.5.8.3 When a partner calculated to affect prejudicially the carrying on the

business [Partnership Act 1961; S.37(c)]

1.5.8.4 When the partner willfully or persistently commits a breach of the

partnership agreement or otherwise [Partnership Act 1961; S.37(d)]

1.5.8.5 When the business of the partnership can only be carried on at a loss

19 | P a g e
[Partnership Act 1961; S.37(d)]

1.5.8.6 Whenever in any case circumstances has arisen which in the opinion

of the court, render is equitable that the partnership be dissolved

[Partnership Act 1961; S.37(f)]

1.5.9 Retirement :
If any partner who want to retire from the business must have consent from

other partners. They will get back their investment and the notice of retirement

must be given three (3) months from the retirement dates.

1.5.10 Others :
Each of the partners must act in good faith and respect to the other partners.

Partners must have willingness and interested to make the business more

successful and giving full commitment for the business. They also must be

honest and straight forward in order to execute responsible as a partner.

BY PARTNERS:

( ) ( )
Muhamad Hafiz B. Muhamad Nurazween Bt. A.Malik

( ) ( )

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Muhammad Aatik B. Norudin Sindu a/p Anthony Dass

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1.6 Location

1.6.1 Physical location of the project

Figure 1.6.1.1 Map of Factory Location

WE ARE HERE

Figure 1.6.1.2 Map of Factory Location from satellite

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1.6.2 Building

Figure 1.6.2.1 Front view

Figure 1.6.2.2 Floor plan

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Figure 1.6.2.3 Inside space

Figure 1.6.2.4 Office space Figure 1.6.2.5 Restroom

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1.7 Conclusion

As a conclusion, we have gain a lot of new knowledge about business plan from

our project in creating new company based on our product. We have opportunities to

know how to manage the entire organization from beginning to the end.

Moreover, we also have an experience to manage the financial for the

company in order to make the profits from balancing the sales revenue and cost of

production. We also must follow the procedures in order to establish the company

such as during budgeting for each department involved.

According to our preference, we have fulfilled our objective and mission to

know how to develop a successful company. We are really happy have a chance for

doing this project.

Thank you.

25 | P a g e
2 ADMINISTRATIVE PLAN

2.1 Introduction to business


2.1.1 Vision
Committed to create and provide most durable and highest quality product for

consumers.

2.1.2 Mission
2.1.2.1 To help save mother earth by producing a non-toxic products.

2.1.2.2 We aim to develop lasting business relationships built on

complementary strengths and shared values.

2.1.2.3 Train the workers to be more efficient and visionary in implementing

their task.

2.1.3 Tagline

Making Life Easier & Healthier

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2.2 Logo

Subject Meaning

Symbolizes calmness and desire to succeed. It shows that we

will make a strategy to achieve the short and long-term goals.

Symbolizes creativity. Our company has created innovative and

creative plastic water bottle products.

Symbolizes five shareholders that lead the business with

diligence and trustworthiness in discharging their


responsibilities, and the courage to make decisions in the
interest of the company

Symbolizes the nature colour for purity water. It is strongly

associated with tranquillity and calmness that strong relate to


water.

Symbolizes confidence and optimism. We are confident of

running a business that sells a product that has been improved


to be a place in the Malaysian market of plastic products.

Handwritin Symbolizes our main target market which is teenagers and kids.

g They are more attracted on something unique.

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2.3 Organizational Structure

Muhamad Hafiz B. Muhamad


GENERAL MANAGER

Nurazween Bt.
A.Malik
MARKETING MANAGER

Sindu a/p Anthony Dass Muhammad 'Aatik B.


Norudin
OPERATING MANAGER FINANCIAL MANAGER
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2.4 List Administrative Personnel

2.4.1 Manpower
Position No Of Personnel
GENERAL MANAGER 1

MARKETING MANAGER 1

OPERATION MANAGER 1

FINANCIAL MANAGER 1

TOTAL 4

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2.5 Job Description of Personnel
Position Task and Responsibilities

Head of all departments in the company.

Responsible to plan, direct and coordinate the


operations of company.
GENERAL MANAGER Responsible in formulating policies, managing daily
operations, and planning the use of materials and
human resources.
Accountable for the overall performance of the
company.

Set the price for the product in market

MARKETING MANAGER Define the advertising process of the product


Define market trends and size

Supervises workers to ensure efficiency

Managing daily operations and planning the use of


OPERATION MANAGER materials and human resources
Determine the quantity of certain items to be
produced, inspects the quality of workmanship.

In charge to oversee the preparation of financial


reports, direct investment activities, and implement
cash management strategies.
FINANCIAL MANAGER Take cares of all the important financial functions of
an organization. She has to ensure that the funds are
utilized in the most efficient manner.

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2.6 List of Equipment
2.6.1 Office Furniture and Fittings
Type Quantity Price/Unit Total
(RM) (RM)

Notice Board 1 120.00 240.00


Air-Conditioner 3 2,100.00 6,300.00
Computer 5 1,599.00 7,995.00
Photostat Machine 1 1,200.00 1,200.00
Dustbin 2 6.00 12.00
Cabinet 3 800.00 2,400.00
Office Chair 10 120.00 1,200.00
Office Table 5 399.00 1,995.00
Sofa Sets 1 1,600.00 1,600.00
TOTAL 22,942.00
2.6.2 List of Office Supplies

Type Quantity Price/Unit Total


(RM) (RM)

Telephone 2 60.00 120.00


A4 Paper 1 80.00 80.00
Toner Cartridge 1 130.00 130.00
Other Stationeries 200.00
TOTAL 530.00

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2.7 Basic Incentives
2.7.1 Employment Provident Fund (EPF)

Our EPF will cut 13% from the monthly salary of the employee. This will give them

benefits after they didnt work anymore such as for the usage when they are retired.

This also can help them manage their money for their future too.

2.7.2 Social Security Organization (SOCSO)

The employee can also apply SOCSO for their own good too because with SOCSO,

if anything bad happen to them such as an accident, they can use the money to pay

up the bill of hospital or clinic.

2.7.3 Working Hours

The employees are required working 6 days a week, from 9 a.m. to 5 p.m. But for

management of the premise, the employees need to make a shift because our

premise will open from 10 a.m. to 10 p.m.

2.7.4 Annual leave

The total numbers of annual leave for the employees are 14 days per year excluding

the public holiday. The employees who want to claim for annual leave, they must

inform to the management at least 3 days before the date of the leave. For the

workers who work in shift, they need to tell before Friday because the management

wants to set the shift schedule for the next week.

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2.8 Additional incentives
2.8.1 Medical Leave

The employee can get the medical leave if have any emergency case that involve the

health. It must be accompanied with the letter that has been authorized by the doctor.

2.8.2 Over Time

The bonus will be given if the employees work more than the working hours or as we

called over time. The employees will get double if they work over time and they will

get triple than their salary if work on federal public holidays or special holidays.

2.8.3 Maternity leave

For the female employees that have to maternity, they will get 60 days leave and for

the male employees that have maternity wife, they will get 7 days leave. The

employees should make application at least 1 month before their expected maternity

date.

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2.9 Schedule of Remuneration

Monthly EPF SOCSO Total


Position Quantity Salary (RM) (RM)
(RM) (13 %) (1.75 %)

GENERAL 1 4,500.00 585.00 - 5,085.00


MANAGER
FINANCIAL 1 4,300.00 559.00 - 4,859.00

MANAGER
OPERATIONAL 1 1,200.00 156.00 21.00 1,377.00
MANAGER
MARKETING 1 1,500.00 195.00 26.25 1,721.25
MANAGER
TOTAL 4 13,042.25

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2.10 Administrative
Budget
35 | P a g e
3 MARKETING PLAN

3.1 Introduction

A marketing plan is a written document that details the necessary actions to achieve

one or more marketing objectives. It can be defined as the activities that are carried out

systematically to encourage and increase sales of products or services as long as the

activities are in line with religious and ethical practice. The focus, which is customers

satisfaction first and then profit is considered a long term view to doing business. The

systematic effort objective in marketing needs to be planned and implemented in a

systematic manner in order to achieve the business objective. A systematic marketing

effort is essential to ensure that customers are attracted and motivated to purchase the

products or services offered. This is particularly important in encouraging purchase by

first time customers or in promoting new products or services. Systematic marketing

effort help to sustain and increase sales by encouraging repeat purchases.

36 | P a g e
3.2 Product Description

This section describes about the features, materials and benefits that we can get

from our BPA-free water bottled IRIS BOTTLE in detail. All these detailed is

necessary for the proposed of our products to be related to the needs and wants of

our target customers.

Product Description
Brand Name IRIS BOTTLE
Place of Origin Malaysia
Application Hot water, Cold water, Juice, Shake and etc.
Materials Polypropylene
Silicon
Silica
Capacity 1000ml
Dimensions Diameter: 7.5 cm
Height: 26cm
Weight 120 grams
Features BPA-free
Temperature from -20 to 120 degree celcius
Unique shape (foldable surface)
Durable (unbreakable body, elastic)
Non-toxic
Wide mouth (ice cubes and hand washing extra easy)
Odour and stain-resistant
Suitable for hot, warm and cold beverages
Leak-proof (drink-lock sealing lid)
Spill-resistant (tightly-sealed lid)
Non-slip gripping surface
Benefits Easy to handle (stay cool to the touch with hot liquids
and is condensation-free with cold)
Dishwasher safe
Microwave safe
Eco-friendly; reusable
Save cost, space and time
Good for health (BPA-free)
Competitive price (compared to competitors price)
Perfect size for backpack (adjustable size)
Colour variety (blue, green, orange, pink, purple,
white)

37 | P a g e
Figure 3.2.1 Product illustration

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Figure 3.2.2 Packaging for an individual bottle

Figure 3.2.3 Packaging for transportation

39 | P a g e
3.3 Segmentation

District and State


We sell our product to fit the needs of individual

Geographic geographic areas, localizing the products, advertising,


and sales effort to geographic differences in needs and

wants. Our main location is at Puchong, Selangor

Age
Consumer needs and wants change with age although
they may still wish to use the same types of product. So
our business creates a water bottle different from others
company to meet the wants of different age groups.

Demographic Income
Many companies target affluent consumers with luxury
goods and convenience services. By contrast, our
business focus on marketing products that appeals
directly to consumers with relatively low and moderate
income level.
Occupation

Additional features available in our products are suitable


for student from all levels of education, housewives,
travelers and people with different career.

Personal taste
The designs of the bottle and the features that we

Psychographic produce are very attractive and will surely attract the
attention of consumers who want something different

than usual.

40 | P a g e
Sensitivity to price
Our product prices are not too expensive and it is
suitable for users who have sensitivity to price.

Motives of purchase
For users who want to have a water bottle product that
are not harmful to health will definitely be impressed with
our product as we produce it is a BPA-Free.

41 | P a g e
3.4 Market Size
3.4.1 Population
Total population: 350,000 people

Percentage (%) No. of people


Total market size 10 35,000
Students 50 17,500
Kids 35 12,250
Athlete 10 3,500
Others 5 1,750

3.4.2 Average Spending Per Year


Category No. of people RM Total
Students 17,500 440 7,700,000
Kids 12,500 220 2,750,000
Athlete 3,500 165 577,500
Others 1,750 99 173,250
Total 11,200,750

42 | P a g e
3.5 Market Share

Percentage (%) Total


Total potential customer 35,000 x 10% 3,500
Students 3,500 x 50% 1750
Kids 3,500 x 35% 1225
Athlete 3,500 x 10% 350
Others 3,500 x 05% 175
Total 7,000

3.5.1 Market Share before entering the market

Percentage of share (%) Estimated sales


Xtrasim Marketing Sdn.Bhd. 45 67,500
Seng Tat Marketing Sdn.Bhd. 30 45,000

CHM Plastic Industry 25 37,500

Total 150,000

3.5.2 Market Share after entering the market

Name of company Percentage of share Estimated sales Percentage


(%) of loss (%)
Xtrasim Marketing 44 66,000 1
Sdn.Bhd.
Seng Tat Marketing 26 39,000 4
Sdn.Bhd.
CHM Plastic Industry 20 30,000 5
Rainbow Enterprise 10 15,000 -
Total 150,000

43 | P a g e
After Rainbow Enterprise entering
the market

10%
20% 44% Xtrasim Marketing Sdn. Bhd

Seng Tat Marketing Sdn.Bhd


Chm Plastic Industry
26% Rainbow Enterprise

44 | P a g e
3.6 Competitors

3.6.1 Xtrasim Marketing Sdn Bhd

Tingkat Selamat 10, Kampung Selamat, 13300 Seberang Perai, Penang,


Malaysia

Strengths Weaknesses
Have innovative features and Not durable to hot temperature
benefits Old-fashioned design
Trustworthy quality Easy to leak
Available at convenience store

3.6.2 Seng Tat Marketing Sdn Bhd

22 & 24, Jalan Rebana, Off Jalan Seruling 59, Kawasan 3, Taman Klang
Jaya, 41200, Klang, Selangor, Malaysia.

Strengths Weaknesses
Less consumer exposure about the
Colourful and fun-filled designed product
water bottle Not suitable for hot temperature
Affordable price water
Solid-shaped bottle, unadjustable
Consumers preferences

45 | P a g e
3.6.3 CHM Plastic Industry

1-46, Jalan Ttc 4, 75250 Cheng, Melaka, Malaysia.

Strengths Weaknesses
Readiness of various product Not safe for hot liquid
Reasonable price Less in improvement and
Durable and light weight modification
Easy to breakable

3.6.4 Rainbow Enterprise

Strengths
Easy to handle (stay cool to the touch with hot liquids and is condensation-free
with cold)
Dishwasher safe
Microwave safe
Eco-friendly; reusable
Save cost, space and time
Good for health (BPA-free)
Competitive price (compared to competitors price)
Perfect size for backpack
Colour variety (blue, green, orange, pink, purple, white)

46 | P a g e
3.7 Sales Forecast

Month Students Kids Athlete Others Estimate


(50%) (35%)(RM) (10%)(RM) (5%)(RM) Sales(RM)
(RM)

January 75,000 52,500 15,000 7,500 150,000

February 75,000 52,500 15,000 7,500 150,000

March 75,000 52,500 15,000 7,500 150,000

April 75,000 52,500 15,000 7,500 150,000

May 75,000 52,500 15,000 7,500 150,000

June 75,000 52,200 15,000 7,500 150,000

July 75,000 52,500 15,000 7,500 150,000

August 75,000 52,500 15,000 7,500 150,000

September 75,000 52,500 15,000 7,500 150,000

October 75,000 52,500 15,000 7,500 150,000

November 75,000 52,500 15,000 7,500 150,000

December 75,000 52,500 15,000 7,500 150,000

Total 900,000 630,000 180,000 90,000 1,800,000

47 | P a g e
3.8 Marketing Strategy
3.8.1 Product
Brand Brand is a name, term, sign, symbol or design that identifies a

product and differentiates it from any other product. It adds


value to the product and encourages customer loyalty.

Quality Quality is the ability to fulfill the expectations and needs set by

the end user. The performance of quality for this product is


measured in terms of the durability, ease of operation that
contributes to the products ability to perform its function.

Design Product design plays an important role in satisfying and

delighting the target market. There are few attractive features


in our bottle that will surely influence the customers as this
bottle is easy to handle shape (squeezable) and colorful
design (pink, blue, purple, green, white, orange).

Packaging Packaging plays important role in attracting customers

attention and encouraging sales.

Protection The packaging is to protect the product. The packaging must

be able to protect the product during the process of


transportation, storage, display and sales until product is ready
for use.

Ease of use Good packaging is easy for the customer to use.

Attractive to Customers The packaging must attract customers attention. The size,

shape, material used and color of the packaging must be


attractive to the target market.

Product Differentiation Our company have introduce new design water bottle which is

different from others existing company. With increased


competition in the market, we need to make sure the product
we produce does not duplicate from other products and
unique.

48 | P a g e
3.8.2 Price
Cost-based pricing

Price = Total Cost per Unit + Mark-up

= RM 9,16+ (20% X RM 9.16)

= RM 9.16 + RM 1.84

= RM 11.00

3.8.3 Form of Distribution Channel

Producer Wholesaler Retailer Consumer

We prefer to sell our product to wholesaler and retailer because of their

scale of operation, contacts, experiences, specialization and they also

have better financing to cover the cost of the channel work. Channels are

broken into direct and indirect forms, with a direct channel allowing the

consumer to buy the good from the manufacturer and an indirect channel

allowing the consumer to buy the good from a wholesaler and retailer.

49 | P a g e
3.8.4 Promotion
To attract consumers to buy our products, several methods of promotion

strategies are used to make the disclosures more quickly and more

efficiently to the users. The promotion tools that we use are as follows:

Business Card

Marketing manager of Rainbow Enterprise will be given her own

business card to enable us to grab any opportunity from the client.

Business card portrays our business product and trade name. by

having this card, it would be easier for them to contact us anywhere

and at any time since we provide our office telephone number and

website.

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Flyers

The objective of advertising is to increase profit by increasing sales.

Our company chose to give out flyer in schools, colleges, sport

center and local supermarket.

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Website

We use the internet as a medium to promote our product by creating

an official website:

www.rainbowofficial.com

Via this website we will update the latest product releases,

promotions conducted, and information on product, business and

related matters.

52 | P a g e
Sales Promotion

To accelerate the sale of the products, we also use sales promotion

methods. We have decided to give coupons to first 50 customers

during the grand opening of our company. Each coupon worth RM 10

and they can use the coupons to purchase our product. At the

beginning of sales, the company also provides discounts promotion

with the purchase which lasted for a month.

53 | P a g e
Loyalty marketing programs

We have membership card to reward loyal customers for making multiple

purchases. It will also accelerate the sale of the products and will satisfy

our loyal customers. The objective of membership card is to build long

term and mutually beneficial relationship between a company and its loyal

customers while giving a special member benefits.

54 | P a g e
3.9 Marketing
Budget

55 | P a g e
4 OPERATIONAL PLAN

4.1 Introduction

Operational plan is an annual work plan; it describes short-term business strategies and

explains how a strategic plan will be put into operation during a given operational year. An

operational plan is the basis for justification of an annual budget request. The operation

process consists of business input, transformation and output. Our purpose on this operation

plan is to ensure that the company is performing a high quality of product to fulfill our

customer needs and wants. With the quality, exact time, place and labors, we will provide a

professional operation for our products at reasonable price.

56 | P a g e
4.2 Process of Planning
4.2.1 Activity chart for purchase raw material and equipment
Identify the raw materials and equipment we need in order to provide our
service

Identify the suppliers which can provide the raw materials we required
with the standard quality and lowest price

Receive the raw materials to the factory from the suppliers

Materials such as polypropylene, silicon and silica are melted

The melted materials are extruded into a hollow tube (aparison)

This parison is then captured by closing it into a cooled metal mold

Air is then blown into the parison inflating it into the shape of bottle

After the plastic has cooled sufficiently, the mold is opened and the part is
ejected.

The parison is extruded continuously and the partsare cut off by a suitable
knife

Polypropylene melted in the Melt Flow Indexer

Melt polypropylene are extruded into capping machine

Choose the correct sizes and shapes of caps to suit the bottle size

The caps then moulded using the machine

Process of produce the caps continued

Then the caps are attached with the bottle

Do the quality inspection for the bottle to ensure that the bottles are in
high quality.

Labelling machine take place to lable the bottle with company label

Packages the bottles into boxes

The boxes are then transport to store

57 | P a g e
4.2.2 Process flow chart for
company
Receive the raw materials to the
factory from the suppliers

Mixed the raw materials together in the


melt flow indexer machine

Polypropylene melted and


Materials such as polypropylene, extruded into capping machine
silicon and silica are melted and
extruded into a hollow tube
(aparison)
Choose the correct sizes and
This parison is then captured shapes of caps to suit the bottle
by closing it into a cooled size
metal mold
The caps then molded using the
Air is then blown into the parison machine
inflating it into the shape of bottle

After the plastic has cooled


sufficiently, the mold is opened
and the part is ejected.
Process of produce the caps
In Continuous Extrusion Blow continued
Molding the parison is extruded
continuously and the individual
parts are cut off by a suitable knife

Then the caps are attached with the bottle

Do the quality inspection for the bottle to


ensure that the bottles are in high quality

Labelling machine take place to label


the bottle with company label.

Packages the bottles into boxes

The boxes are then transport to store

Keeps boxes in store

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ge
4.2.3 Symbols used in the process flow chart

Symbol Type of Activity Description

Operation Activities that modify, transform or


give values to the input.

Transportation Transportation activity occurs


when materials are transported

from one point to another.

Inspection Activity that measures standard of


the in-process material, finished

products or services.

Delay The symbol is used when in-


process material is restrained in a

location waiting for next activity.

Storage The symbol is used when in-


process materials or finished

products are stored in the storage

area.

59 | P a g e
4.3 Layout of Operation
Area

60 | P a g e
4.4 Material Requirement
4.4.1 List of Materials and Materials Suppliers
No Items Suppliers
1. Polypropylene Industri Lyong Hwee Sdn Bhd
No.19 Jln Usj 11/2C Subang Jaya,
47600 Subang,
Selangor Darul Ehsan.
Malaysia.

2. Silicone Akashi Sdn Bhd


Lot Pt 55,64 & 65, Jalan Hule Tinggi
26/26,
Section 26 ,
40400 Shah Alam,
Selangor Darul Ehsan,
Malaysia.

3. Silica Northern Dolomite Sdn Bhd


3-04, Wisma Pantai,
12200 Butterworth,
Pulau Pinang,
Malaysia.

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4.4.2 Material Planning
SILICONE (kg) POLYPROPELENE(kg) SILICA (kg)

JANUARY
Opening Stock None None None

Purchase 630 1050 520


Used 600 1000 500
Closing Stock 30 50 20

FEBRUARY
Opening Stock 30 50 20
Purchase 600 1000 500
Used 600 1000 500
Closing Stock 30 50 20
MARCH
Opening Stock 30 50 20
Purchase 600 1000 500
Used 600 1000 500
Closing Stock 30 50 20
APRIL
Opening Stock 30 50 20
Purchase 600 1000 500
Used 600 1000 500
Closing Stock 30 50 20
MAY
Opening Stock 30 50 20
Purchase 600 1000 500
Used 600 1000 500
Closing Stock 30 50 20
JUNE
Opening Stock 30 50 20
Purchase 600 1000 500
Used 600 1000 500
Closing Stock 30 50 20
JULY
Opening Stock 30 50 20
Purchase 600 1000 500
Used 600 1000 500
Closing Stock 30 50 20

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AUGUST
Opening Stock 30 50 20
Purchase 600 1000 500
Used 600 1000 500
Closing Stock 30 50 20
SEPTEMBER
Opening Stock 30 50 20
Purchase 600 1000 500
Used 600 1000 500
Closing Stock 30 50 20
OCTOBER
Opening Stock 30 50 20
Purchase 600 1000 500
Used 600 1000 500
Closing Stock 30 50 20
NOVEMBER
Opening Stock 30 50 20
Purchase 600 1000 500
Used 600 1000 500
Closing Stock 30 50 20
DECEMBER
Opening Stock 30 50 20
Purchase 600 1000 500
Used 600 1000 500
Closing Stock 30 50 20

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4.5 Equipment and Machine
4.5.1 List of machine and equipment
No Item Quantity Price/unit Total Cost
(RM) (RM)
1. Rotary Machine 5 38,000.00 190,000.00
2. Capping Machine 5 17,000.00 85,000.00
3. Labeling Machine 4 15,000.00 60,000.00
4. Melting Machine 5 8,000.00 40,000.00
TOTAL 375,000.00

4.5.2 List of machine and equipment supplier

No Items Suppliers
1. Rotary Machine ELITE PLASTECH SDN BHD
No. 1, Jalan KPK 1/2,
Taman Perindustrian Kundang, Kundang Jaya,
48020 Rawang,
Selangor Darul Ehsan,
Malaysia

2. Capping Machine FLUIDMECH EQUIPMENT SDN BHD


16 Jalan Taming 3,
Taming Jaya Industry Park,
43300 Seri Kembangan,
Selangor Darul Ehsan
Malaysia
3. Labeling Machine ASTERPAC SDN BHD
NO. 28, Jalan Tembaga SD 5/2D,
Sri Damansara Industrial Park,
Bandar Baru Damansara,
55200 Damansara,
Selangor Darul Ehsan,
Malaysia

4. Melt Flow Indexer ECO INSTRUMENT


663, Ground Floor, Jalan Haruan, 4/10,
Oakland Commercial Centre,
Seremban,
Negeri Sembilan,
Malaysia.

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4.6 Production Planning
4.6.1 Operational Planning for Output Based on Sales Forecast
Month(2013) Blue Green Orange Purple White Pink Total
20% 20% 10% 20% 10% 20% 100%
January 160 160 80 160 80 160 800
February 160 160 80 160 80 160 800
March 160 160 80 160 80 160 800
April 160 160 80 160 80 160 800
May 178 178 89 178 89 178 890
June 188 188 94 188 94 188 940
July 178 178 89 178 89 178 890
August 196 196 98 196 98 196 980
September 196 196 98 196 98 196 980
October 178 178 89 178 89 178 890
Novermber 188 188 94 188 94 188 940
December 188 188 94 188 94 188 940
Total 2130 2130 1065 2130 1065 2130 10650

65 | P a g e
4.7 Man Power Planning
4.7.1 To Determine The Number Of Workers Required
Rotary Machine Production Worker:

485 X 2 min

480 (8 hours x 60 minutes)

= 2.0 @ 2 workers

Packaging Worker:

485 X 4 min

480 (8 hours x 60 minutes)

= 4.0 @ 4 workers

Labelling Machine Worker:

485 X 2 min

480 (8 hours x 60 minutes)

= 2.0 @ 2 operators

Melt Flow Indexer Worker:

485 X 2 min

480 (8 hours x 60 minutes)

= 2.0 @ 2 operators

Capping machine Worker:

485 X 5 min

480 (8 hours x 60 minutes) = 5.0 @ 5 operators

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4.7.2 Schedule Of Remuneration
Position No. Of Monthly EPF SOCSO Amount
workers Salary Contribution ( 1.75% ) ( RM )
(RM) (13%) (RM)
(RM)

Operation manager 1 1,800 234 31.50 2065.50


Rotary Machine 2 1,200 156 21 2,754.00
Operator
Capping Machine 5 1,200 156 21 6,885.00
Operator
Packaging Operator 4 1,200 156 21 5,508.00

Labeling Operator 2 1,200 156 21 2,754.00


Melt Flow Indexer 2 1,200 156 21 2,754.00
Operator
TOTAL 16 22,720.50

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4.8 Operation Hours
4.8.1 Business Hours
Days Business Hours
Monday Saturday 9.00 am until 6.00 pm
Sunday 9.00 am until 2.00 pm
4.8.2 Operating Hours

Days Operating Hours


Monday Saturday 8.30 am until 6.30 pm
Sunday 9.00 am until 6.00 pm
4.8.3 Working
Schedule

Week Week 1 & Week 2


Time 10 11 12 1 2 3 4 5 6 7 8 9 10

General Manager

Financial
Manager

Marketing
Manager

Operation
Manager

Workers

68 | P a g e
Week Week 3 & Week 4
Time 10 11 12 1 2 3 4 5 6 7 8 9 10

General
Manager

Financial
Manager

Marketing
Managers

Operation
Manager

Workers

Coloured time is the working hours for the employees

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4.8.4 Working Days
Day/Workers Monday Tuesday Wednesday Thursday Friday Saturday Sunday

General
Manager

Financial
Manager

Marketing
Manager

Operation
Manager

Workers

The workers will be off during the holiday


The time for break will depend on the lunch hour

70 | P a g e
4.9 Operation Budget
Items Fixed Monthly Other
Assets Expenses Expenses
(RM) (RM) (RM)

Fixed Asset
Machinery 300,000.00
Vehicle 140,000.00
Working Capital
Salary, EPF , SOCSO 22,720.50
Fuel 250.00
Other Expenses
Machines Maintenance 800.00

Pre-Operations
Operation Overhead 8,300.00 500.00
Deposit (utilities)
Road Tax 140.00 300.00
Insurance for workers
TOTAL 440,000.00 31,410.50 1,600.00

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4.10 Project Implementation Schedule
ACTIVTIES DEADLINE DURATION
INCORPORTATION January 2013-March 3 months
BUSINESS 2013

APPLICATION FOR 3rd April 2013 1 day


PERMITS AND LICENSE

SEARCHING FOR April 2013-May 2013 2 months


BUSINESS PREMISE

RENOVATION OF PREMISE June 2013-July 2013 2 months


PROCUREMENT OF October 2013-December 3 months
MACHINE AND RAW 2013
MATERIAL

RECRUITMENT OF April 2013 1 month


LABOUR

INSTALLATION OF May 2013 1 month


MACHINE

TOTAL TIME TAKEN 12 months

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