1.

Executive Summary

2. Company Background

Frosty Delta is a business enterprise deals in the business of supplying food

additives products mainly for ice cream companies in industrial bulks and for large
supermarket chain in consumer size. Frosty Delta is located at Klang, Selangor where
most factories dealing in the food industry are located at. The commencement date of
our business was on 8th February 2018. The factors that influenced the choice of this
business was to increase and improve the quality and longevity of ice cream products
and delicacies. This business has a large potential in Malaysia as this is a newly
introduced innovation product and currently there are no known competitor that deals
with this food enhancer.

The five main business partners are Zulfadli Shahrom, Naim Zailani, Amirul
Aqil M. Rozali, Arif Hilmi Hussin and Mirza Farhan M. Nadzeri. Each of the following
business partners hold major roles in the company and are responsible as the CEO, the
Executive Officer, the Human Resource Officer, the Finance Officer and the Operations
Officer.

CEO
MUHAMMAD ZULFADLI BIN
SHAHROM

Executive
Officer MUHAMMAD NAIM BIN
ZAILANI

Finance Operations
HR Officer
MUHAMMAD AMIRUL AQIL
Offier Officer
MUHAMMAD MIRZA FARHAN
BIN MAT ROZALI ARIF HILMI BIN HUSSIN BIN MOHD NADZERI
 3. Marketing Mix

3.1. Product

This product is introduced as an enhancer or an additive to the recipe of an ice cream or

cream. This product will allow the ice cream to melt more slower and stay cool for a
longer period. This product is in the form of liquid and is safe to consume since it is an
all-natural extract of fruits, primarily strawberries. The fruity extract from the
strawberry is called polyphenol which allows the ice cream to retain its shape and
coolness for much longer. The product will be made available the forms of bulk-size
and consumer-size to satisfy the demands for larger ice cream producers and local end
users respectively.

3.2. Price

The price of strawberry is approximately RM 20 per kg, depending on the supplier. The
yield of polyphenol for every kg of strawberry extracted is approximately 0.5kg per kg.
Thus, it can fairly be said that 1 liter of our product would cost around RM 40. The
bulk-size form would cost around RM 40 for 1 liter while the consumer-size would cost
around RM 4 for 100 ml.

3.3. Place/Distribution

Manufacturer Retailer Consumer

Manufacturer Franchisor Franchisor Consumer

Our production plant is in Klang, Selangor which is one of the main hubs for the food
processing industry in Malaysia. This allow for more ease of access for our customers to
reach us and for us to deliver to our customers.

The distribution for large companies and producers is via local container transportation
services. This would be in the form of bulk-sizes and requires more unconventional
methods of delivery. These bulk-size products will directly arrive at the producer’s plant
under scheduled ordering. Online ordering service is also available in bulk-size and will
be delivered using a local courier services, locally or internationally.

The distribution for local end users would also be via local container transportation
services but would only apply to locations that are more further away than the
production plant. These would be in the form of consumer-sizes and would be sold in
local supermarkets for the end-users or for small producers. For locations closer to the
production plant, distribution via direct delivery can be made available. Online ordering
service is also available in consumer-size and will be delivered using a local courier
services, locally or internationally.

3.4. Promotion

Due to the nature of this newly founded product, the public is not made aware of this
product. To do this, it is necessary for the product to be advertised, to be demonstrated
and to be tasted. It needs to be advertised so the public are aware of Frosty Delta’s
product and its specialties. It requires a demonstration to assure the public of the
authenticity of our product. It requires to be tasted as will all food product, the best way
to judge is by smelling and tasting the product by oneself.

The promotion for this product will be done using the mass media as the primary source
of our marketing and promoting strategy. The public will be made aware of this product
by using one of the mass media outlet such as the social media to show people ‘what is
this product’ and everything about it. Using the social media as a marketing tool is
commonly done these days and known to be very successful.
One part of the demonstration can be done using the social media. Displaying a
demonstration of our product in the form of video will allow the public to visually
affirm of the authenticity of our product. The other part of this demonstration would be
by actual live demonstration. This will take place all over the country, mostly in major
cities. This way, people would be able to see firsthand the authenticity of our product.

Using this method, not only Frosty Delta can assure our customers of our authenticity
and selling points, but we can also let them have a taste of it by giving out free samples.

3.5. People

Our major target market is the two-primary group which are for the large producers and
companies and for the end-users. The bulk-size packaging will be aimed at the large
producers which will require this additive to be mixed into to their recipes. The
consumer-size packaging will be aimed at end-users such small ice cream producers or
people interested in making ice cream or other cream delicacies.

The idea was first presented when Zulfadli Shahrom when his lifelong concern was why
ice cream melts before you eat it. Then Naim Zailani and Amirul Aqil presented on a
way to further enchance an ice cream by mixing it with a substance called polyphenol.
This idea was inspired from a few Japanese scientist when they discovered that
polyphonel helps an ice cream to melt slower.
3.6. Process

Enters packaging line

Juice tested for

polyphenol

Enters filter to get

juice

Crushed strawberry
enters blender

Good strawberry
crushed

Strawberry selected
manually

Strawberry enters
washer
The process of producing this additive is primarily by using the extraction method. This
process can use any kind of fruit for extraction but in our process, strawberry is the
preferred fruit as it has the highest yield of polyphenol, a major substance in the
additive.

The strawberry is first delivered in the factory. It then enters a washer where the dirt and
other contaminates are cleaned off. It is then placed in drying trays where it is dried
while workers manually select strawberries with defective properties and stores them
away to be used for other processes. Only the good strawberries further enter the
process. The strawberries then enter a presser where the juices are squeezed out of the
fruit. The juice is collected while the pressed strawberries enters a blender where it turns
into mush.

The mush is then filtered, and the juice is collected. The filtrate is taken out of the
process line to be used for other processes. The collected juice is then purified and
boiled. The juice then is analyzed to measure the polyphenol content. If the polyphenol
content is within the specifications, it enters the packaging process line. If it does not, it
is treated and analyzed again until it reaches specifications.

3.7. Physical/Packaging

The packaging will in two forms which are the bulk-size form and the consumer-size
form. The bulk-size form is where the liquid will be stored in large solution bottle
which can hold 1 liter of the additive. It is packed into a carton box which will contain
12 bottles. The box is then sealed tightly with plastic wrapper. The consumer-size form
is where the liquid will be stored in small bottles which can hold 100 ml of the solution.
It will be packed into a carton box which will contain 20 bottles. All the bottles and
seals will be properly sterilized and cleaned based on the FDA regulations. The
products should be kept below room temperature and in cool storage. The products
should not be in direct contact with sunlight.

4. Market Analysis
 4.1. Target Market
Our target market will be all around Ice Cream companies in Malaysia because
this product is new for our country because we have change some the ingredient
in making this ice cream which is strawberry extraction. Our headquarters
located at Melaka. Despite, our southern bound location we are also focusing at
the northern area in Malaysia.
Almost everybody – from young teens to adults – love Ice Cream and have
purchased it at one time or the other. However, a large percentage of that
purchase these ice cream are Children. We would be engaging wholesale
distribution and direct supply to only ice cream or ice based companies.

4.2. Competitors

There are currently no known competitor that would compete with us in the
supply and distribution of this type of the food additives.

5. Financial Analysis

Sales forecast year 2011

Month Bulk Units Price Consumer Price per Sales

per units Consumer collection
Bulk units (RM)
units
(RM)
January 50 40 100 4 2400
February 50 40 100 4 2400
March 50 40 100 4 2400
April 50 40 100 4 2400
May 50 40 100 4 2400
June 50 40 100 4 2400
July 80 40 150 4 3800
August 80 40 150 4 3800
September 80 40 150 4 3800
 October 80 40 150 4 3800
November 80 40 150 4 3800
December 80 40 150 4 3800
TOTAL 780 - 1500 - 37200

5.2. Project Implementation Cost Scheme

Description RM RM

Capital Expenditure
Building 40,000
Machinery & Equipment 20,000
Furniture & Fixtures 10,000
Van 20,000
90,000
Working Capital (1 month)
Administrative 12,000
Marketing 5,000
Operation 7,000
24,000
Pre-operational Costs 3,000
Deposits 1,000
Grand Total 118,000
Allowance for contingencies (10%) 11,800

TOTAL COST 129,800

5.3 Depreciation

5.3.1 Building

Type of asset : Building

Cost of asset : RM 40,000

Economic life : 10 years

Method : Straight line

YEAR ANNUAL ACCUMULATED BOOK VALUE

DEPRECIATION DEPRECIATION
0 40,000
1 3,500 3,500 31,500
2 3,500 7,000 28,000
 3 3,500 10,500 24,500
4 3,500 14,000 21,000
5 3,500 17,500 17,500
6 3,500 21,000 14,000
7 3,500 24,500 10,500
8 3,500 28,000 7,000
9 3,500 31,500 3,500
10 3,500 35,000 0

5.3.2 Van

Type of asset : Van

Cost of asset : RM 20,000

Economic life : 10 years

Method : Straight line

YEAR ANNUAL ACCUMULATED BOOK VALUE

DEPRECIATION DEPRECIATION
0 20,000
1 2,000 2,000 18,000
2 2,000 4,000 16,000
3 2,000 6,000 14,000
4 2,000 8,000 12,000
5 2,000 10,000 10,000
6 2,000 12,000 8,000
7 2,000 14,000 6,000
8 2,000 16,000 4,000
9 2,000 18,000 2,000
10 2,000 20,000 0

5.3.3 Machinery and equipment

Type of asset : machinery and equipment

Cost of asset : RM 20,000

Economic life : 10 years

Method : Straight line

YEAR ANNUAL ACCUMULATED BOOK VALUE

DEPRECIATION DEPRECIATION
0 20,000
1 2,000 2,000 18,000
 2 2,000 4,000 16,000
3 2,000 6,000 14,000
4 2,000 8,000 12,000
5 2,000 10,000 10,000
6 2,000 12,000 8,000
7 2,000 14,000 6,000
8 2,000 16,000 4,000
9 2,000 18,000 2,000
10 2,000 20,000 0

5.4 Sources of fund

SOURCE RM
EQUITY CONTRIBUTION
CASH 40,000
ASSET 40,000
80,000
TERM LOAN 45,000

HIRE-PURCHASE FINANCE 20,000

TOTAL 145,000

5.5 loan Expenses

5.5.1 Loan Amortization Schedule
Loan amount : RM 45,000
Loan Period : 10 years
Interest Rate : 8%
Method : Reducing balance/Annual rest
 Year Amount Interest Principal Payment Remaining
balance
0 0 0 0 45,000
1 45,000 3,600 4,500 8,100 40,500
2 40,500 3,240 4,500 7,740 36,000
3 36,000 2,880 4,500 7,380 31,500
4 31,500 2,520 4,500 7,020 27,000
5 27,000 2,160 4,500 6,660 22,500
6 22,500 1,800 4,500 6,300 18,000
7 18,000 1,440 4,500 5,940 13,500
8 13,500 1,080 4,500 5,580 9,000
9 9,000 720 4,500 5,220 4,500
10 4,500 360 4,500 4,860 0
TOTAL 19,800 45,000 64,800

5.5.2 Hire Purchase Repayment Schedule

Cost of asset : RM 25,000
Down payment : RM 5,000
Loan amount : RM 20,000
Loan period : 5 years
Interest : 8%
Method : Flat (annually)
Year Amount Interest Principal Payment Remaining
balance
0 0 0 0 0 20,000
1 20,000 1,600 4,000 5,600 16,000
2 16,000 1,600 4,000 5,600 12,000
3 12,000 1,600 4,000 5,600 8,000
4 8,000 1,600 4,000 5,600 4,000
5 4,000 1,600 4,000 5,600 0
TOTAL 8,000 20,000 28,000

5.6 Financial forecast 2011 to 2013

Year 2011 2012 2013

A CASH INFLOWS
Beginning cash balance 0 121504 201598
Equity-Cash 40000 0 0
 Term-Loan 45000 0 0
Cash sales 324,000 324,000 324,000
B Total Cash Inflows 409,000 445504 525598
C CASH OUTFLOWS
Operational Expenditure
Raw materials 20,000 20,000 20000
Direct labor 48000 48000 48000
Operational overhead 4000 4000 4000
Marketing Expenditure
Sales commision 5000 5000 5000
Entertainment allowance 3600 3600 3600
Adminstrative expenditure
Salaries and wages 116400 128040 140844
EPF&SOCSO 16296 17925.6 19718.16
Adminstrative overheads 4000 4000 4000
Loan Repayment
Principal 4500 4500 4500
Interest 3600 3240 2880
Hire-Purchase repayment
Down payment 5000
Principal 4000 4000 4000
Interest 1600 1600 1600
Capital Expenditure
Machinery&Equipment 35000
Furniture&Fixtures 12500
Pre-operational Expenditure 3000
Deposits 1000
D Total Cash Outflows 287,496 243,906 258142.2
E Cash Surplus/(Deficit) 121504 201598 267455.8
F Ending Cash balance 121504 201598 267455.8

6. SWOT Analysis

6.1. Strengths
 6.2. Weaknesses

6.3. Opportunities

6.4. Threats

7. Innovation

8. Conclusion

9. References

10. Appendixes