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FACULTY OF COMMUNICATION & MEDIA STUDIES

BACHELOR OF MASS COMMUNICATION (HONS)


(PUBLIC RELATIONS)
PROGRAM MC242 (e-PJJ)

ENT530 - PRINCIPLES OF ENTREPRENEURSHIP

Group Assignments
“KEREPEK UMI HOUSE”

LECTURER NAME:
MADAM NOOR FAIZAH BINTI MOHD LAJIN

PREPARED BY:
ZURINA BT MD NOOR 2013325011
MUHAMAD FAHMI BIN AB. RAHMAN 2013979701
TUTY HARYANTI BT AHMAD RODZI 2013102533
ROSLAWATI BT ABD MALIK 2013951797

GROUP : NMCPF8AY
CASE STUDY ANALYSIS FOR

‘’KEREPEK UMI HOUSE’’

Founder : Puan Hajjah Yaumi Haji


Ikhsan
Kampung Labohan Dagang, Jalan
Kebun, Banting Selangor

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ANKNOWLEDGEMENT

First of all we would like to thanks to God for giving us strength and guidance during finishing
this case study assignment. Alhamdulillah, despite facing time constraints, we are able to
perform tasks by site visits, comparing a few business entity and completing tasks. Next, we
would like to say thank you so much to Madam Noor Faizah Binti Mohd Lajin, our dedicated
lecturer for teaching and guidance, giving us chances to explore and correct us for anything
during fulfilling phases for this research study. Besides that, we also would like to give thanks
to our dearest parent for giving us advise, strength and moral support as they are really our
loyal peer. Last to our team members who committed together for sharing ideas and
knowledge then together finishing this research study accordingly. Thank you so much.

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Table of Contents
1. INTRODUCTION ....................................................................................................... 5

1.1 Backgroud of Study ............................................................................................. 5 & 6

1.2 Problem Statement .................................................................................................... 6

1.3 Purpose of The Study ................................................................................................ 7

2. COMPANY INFORMATION ...................................................................................... 8

2.1 Backgroud ................................................................................................................. 8

2.2 Organizational Structure ............................................................................................ 9

2.3 Products .................................................................................................................. 10

2.4 Business, Marketing, Operational Strategy .............................................................. 11

2.5 Financial Achievements ........................................................................................... 11

3. COMPANY ANALYSIS ............................................................................................ 12

3.1 SWOT ............................................................................................................. 13 & 14

3.2 Business Model Canvas (BMC) ........................................................................ 15 - 18

6. RECOMMENDATION AND SUGGESTION ..................................................... 19 & 20

7. REFERENCES…………………………………………………………………………… 21
8. APPENDICES………………………………………………………………………………22

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1. INTRODUCTION

1.1 Background of The Study

Chips or commonly known as “kerepek” is a part of culture and lifestyle in the Asean
especially Malaysia. In a wider sense, it can serve as a representation of different
spheres of life and characters in people depending on its origins.

Many chips are intimately connected with take-out, snacks, and junk food.
Distinguished by its local flavor, it creates and mirrors culture and the environment.
According to Knowles (1998), its history can be found from the people’s nomadic
means of existence until the means of trade developed permanently that the food
genre eventually became its own unique category. This quality explains the cultural
and geographical characteristics of the above mentioned.

Kerepek can be then defined as a large variety of easy to eat and easy to
prepare meals and drinks particularly prepared especially during leisure, also as stated
and approved by F.G. Winarno, A. Allain of the Food Technology Development Centre
(1986). It is enjoyed and known by all. Everybody benefits from its healthy consumption
as well as it grants one important aspect in Malay culture finding pleasure in eating.
Several factors contributing to its popularity and demand in the country are its unique
taste and affordability. Its success led to a wider array of its kinds. Some of which are
Banana, Sweet Potatoes, Potatoes, Onions and Ginger.

1.2 Problem Statement

Competition is common in all business environment which demand the attention from
firms to develop effective strategies to allow them to be different from competitors. In
the case of Kerepek Umi House, the existence of many similar competitors that offer
almost similar products. From year 1983 to 2015, there were many crisps
manufacturers arose in the state of Kuala Langat, Selangor. There are four competitors
registered with Majlis Daerah Kuala Langat (MDKL) that produce crisps such as Nas
Food Sdn Bhd, Perniagaan Warisan Usaha, Ros Kerepek and Syarikat JAEZ. The
main competitor of Kerepek Umi House is Kerepek House which is located in the
village of Kanchong Darat, near the company's location.

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The revenue of Kerepek Umi House had increased from times to times.
However, the increasing in the revenue was not because of the quantity of the
products. It came from the increasing of price of raw material of crisps. The company
found out that their customers went to another crisps' producers to make a comparison
in term of price, taste and type of crisps. This was not an easy task to carry out
especially when there are similar manufacturers especially, small micro enterprises
that offer almost identical products.

Besides one of the major challenged that faced by Kerepek Umi House is they
do not engaged with the implement of new communication technology such as social
media. The trends and convergence in communication nowadays has forced many
Small Medium Enterprise (SME) to approach new method in order to satisfy their
market approach. According to Heene and Sanchez, (2010), when a firm does not
work to improve its competitive advantage, it risks to lose its competitive life,
competences, ability to expand services and to enhance value of its capabilities, and
therefore loses business to its competitors. Consumers’ opinion and preferences to
choose goods and services can be the determining aspect relating to the point of
difference. Through the point of difference, a company is able to influence their
customers’ purchase intention. The organization needs to identify, which point of
difference influence their customers’ purchase and therefore create their intention to
buy. Kerepek Umi House must understand their point of difference and establish these
to the point of attracting customers to purchase their brands. There are common
characteristics that customers of crisps usually look for when purchasing crisps like
those manufactured by Kerepek Umi House. In order to justify the extent of influence
that these points of difference have on customers’ purchase intention, this study is
therefore carried out to determine which dimensions in the points of difference will have
the strongest influence towards the purchase intention of customers towards crisps
produced by Kerepek Umi House.

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1.3 Purpose of The Study

The purposes of the study are as follows:-

1.3.1 To determine the influence of varieties of crisps as a point of difference of


Kerepek Umi House Enterprise on customers’ purchase intention.

1.3.2 To determine the influence of packaging type as a point of difference of


Kerepek House Enterprise on customers’ purchase intention.

1.3.3 To develop new communication medium in order to approach marketing


strategy for Kerepek Umi House to boost their market share.

1.3.4 To develop recommendations that enhance purchase intention through point


of difference for crisps produced by Kerepek House Enterprise.

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2. COMPANY INFORMATION

2.1 Background

There are many small industries in Kuala Langat undertaken by the villagers. The resulting
product is marketed in the district of Kuala Langat and the Klang Valley. The resulting
product-based foods such as crisps and biscuits. These food products received
encouraging response by consumers especially during the festive season. The sign board
on the roadside all the way in Kampung Labohan Dagang shows Kerepek Umi House,
Ros Kerepek, and Perniagaan Warisan Usaha are the popular wholesale factories chips
in Banting. There are also other entrepreneurs who operate businesses of crisps on a
small scale. Kerepek Umi House was established on 1998 by Puan Hajjah Yaumi Haji
Ikhsan, 57, in Selangor and the company is located in a village named Kampung Labohan
Dagang, Jalan Kebun, Kuala Langat, Selangor. This company is a family owned and has
being managed by entire of their family assisted by other mainpower. As from our interview
session with the founder, this company is microenterprise, which is a small business that
employs less than ten people. The operation hours of the company are from Monday to
Sunday which is from 9.00 am to 9.00pm.

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2.2 Organizational Structure

The organizational structure for ‘Kerepek Umi House’ are as on below chart:-

Founder : Puan
Hajjah Yaumi
Haji Ikhsan, 57

Asisstant : Haji
Sadali Haji
Rudin, 63

Marketing :
Mohd
Hasbullah, 32

Frontliner :
Suhaili Binti
Matpol, 35

Workforce Workforce Workforce Workforce Workforce Workforce

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2.3 Products

The main product that offered by Kerepek Umi House is chips which being extracted
by natural source such as potatoes, sweet potatoes and other natural source. As the
product being processed, the chips are being packed subsequently with estimated
net weight and packaging method.

Photo 2.3.1 : The chips that are ready packed being marketed.

Photo 2.3.2 : The chips that are packed up into wholesale size.

Overall the products that being marketed by Kerepek Umi House is based on natural
source which directly extracted from plantations and free from any chemical based
ingridients. Besides that, Kerepek Umi House also provided empty based packaging
(without labelling) to be marketed to subsequent small retailer.

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2.4 Business, Marketing, Operational Strategy

The company currently has only one small factory and shop. The company main
business is snacks’ processing and selling crisps in varieties packaging sizes. Kerepek
Umi House has many types of crisps selling at the shop including banana crisps, potato
crisps, tapioca crisps and yam crisps. The crisps produced by Kerepek Umi House
have many flavours such as spicy, black pepper, salty and curry. The company mission
is to maximize the profits on the sale of chips as well as providing services and
assistance to small and medium entrepreneurs (SMEs) and local operators. The
company also selling villager's crisps product in their shop instead of producing and
selling their own crisps. Kerepek Umi House also has been a tourists attraction since
the location of the company is near with Banting, Telok Panglima Garang and Jenjarom
region.

Marketing process in Kerepek Umi House is based on normal marketing strategies.


Besides that, they also engaged with other retailer in order to boost their market
approach via distributing to others retailer, fullfiling demand for special occasion as gift
and souvenirs and also for wholease marketing. As for Kerepek Umi House our main
customer is chips lover who passionly enjoy having light junk food that are healthy and
free from chemical based ingridients, So, in order to maintain the reputations and
marketing demand, Kerepek Umi House always ensure their chips are made in proper
natural process besides maintaining the authentic taste through village style making
process.

2.5 Financial Achievements

The revenue of Kerepek Umi House in year successfully maintained to RM300,000.00


annually. However, the increasing in the revenue was not because of the quantity of
the products. It came from the increasing of price of raw material of crisps. The
company found out that their customers went to another crisps' producers to make a
comparison in term of price, taste and type of crisps. This was not an easy task to carry
out especially when there are similar manufacturers especially, small micro enterprises
that offer almost identical products. While they managed to mark up up to
RM40,000.00 nett profit monthly.

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3. COMPANY ANALYSIS

3.1 SWOT

No. Comparison Kerepek Umi House Kerepek FAZZ Ros Kerepek

Location from town


1 17 kilometer 3.3 kilometer 5.2 kilometer
Banting

2 Location from KLIA 15 kilometer 35 kilometer 34.5 kilometer

Location from Kuala


3 52 kilometer 71 kilometer 70 kilometer
Lumpur

4 Registered with SSM Yes Yes Yes

Almost the
5 Price Almost the same Almost the same
same

 Signboard all over the


place on the way to the  Signboard
factory

 Collaborate with mini  Collaborate


 Collaborate with small market, petrol station with shopper all
6 Marketing shopper in Banting area and shop at R&& all over the country
to help sell their product over the country to sell to sell their
their product product

 Their product can be


 Ask relatives to help found at certain place
sell the product at their in Dubai, Singapura,
office (Putrajaya & Bangi) Australia, Hong Kong
and Brunei

Facebook,
7 Social Media None Facebook and blog Instagram, blog,
Youtube

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SWOT Analysis is a very actual and effective way of detecting business Strengths and
Weaknesses, and of examining the Opportunities and Threats faced by business
organizations as well. Holding out an analysis using the SWOT framework helps the
organizations to concentrate their activities into areas where you are strong and where
the greatest opportunities lie.

In order to run a business smoothly, we need to do analysis between our businesses


with others. Doing such thing will help to form a marketing strategy. With this strategy,
we will look to run our business. Competitor analysis is done with relation to our
competitor. This analysis will assess us to the strengths and weakness our rivals. We
try to figure out what situations may provide an opportunity for them. Find situations
which are likely to become threat for them as well. This analysis also can formulate
how to run our business. First step to do this analysis is to identify our current
competitors.

Our major competitor is Kerepek FAZZ and Ros Kerepek. Both business are in same
district, Banting, Selangor. Kerepek FAZZ was established on 1983 at Kanchong
Darat, while Ros Kerepek is a family business which established on 1989 at same
location Kanchong Darat. Both company provided same business with Kerepek Ummi
House which are processing food, supply and sell product. Below are comparing table
between those companies.

SWOT Analysis

Strength

1. Location
Kerepek Umi House located very near to Kuala Lumpur International Airport (KLIA)
which is 15 kilometer while from Kuala Lumpur is about 52 kilometer compared to other
companies.

2. Interesting place
About 1 kilometer from the company, is located a very popular place which is
Tadom Hill Resorts. A lot of people go there every weekend, public holiday and school
holiday.

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Weakness

1. Marketing and Promotion


Kerepek Umi House failed in doing marketing and also promotion. They just market
their product within Banting, Putrajaya and Bangi. They also do not have any account
on social media to promote their product, compared to the other two companies.

Opportunity

1. Business opportunity
The location give more business opportunity because it is near Kuala Lumpur and
KLIA. People who live in Kuala Lumpur might choose the place because it is nearer
than the other two companies. While people or businessman who live outside the state,
can just come with flight and go to the company which located nearby the airport.

2. Create social media account


People nowadays use social media to promote their product in easily way. At the same
time, this platform helps to sell product to target audience.

Threats

1. Lack of promotion. Lack of promotion makes businesses less familiar than two other
companies. Promotion is crucial in conducting a business to be more advanced and
can last longer.
2. Lack of skill and main power such as the use of more advanced machine technology
and speed up the product manufacturing process.

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1. Location
Kerepek Umi House located Marketing and Promotion
very near to Kuala Lumpur Kerepek Umi House failed
International Airport (KLIA)
in doing marketing and
which is 15 kilometer while
from Kuala Lumpur is about 52
also promotion. They just
kilometer compared to other market their product
companies. within Banting, Putrajaya
and Bangi. They also do
2. Interesting place not have any account on
About 1 kilometer from the social media to promote
company, is located a very their product, compared to
popular place which is the other two companies.
Tadom Hill Resorts. A lot of
people go there every weekend,
public holiday and school
holiday.

1. Business opportunity
Lack of promotion The location give more business
Lack of promotion makes opportunity because it is near Kuala
Lumpur and KLIA. People who live in
businesses less familiar than
Kuala Lumpur might choose the place
two other companies. because it is nearer than the other two
Promotion is crucial in companies. While people or businessman
conducting a business to be who live outside the state, can just come
more advanced and can last with flight and go to the company which
located nearby the airport.
longer.
Lack of skill and main power
2. Create social media account
such as the use of more
People nowadays use social media to
advanced machine technology promote their product in easily way. At
and speed up the product the same time, this platform helps to sell
manufacturing process product to target audience.
The Business Canvas KEREPEK Date:
15.10.2017

2. VALUE 1. CUSTOMER
7. KEY 4. CUSTOMER
PROPOSITION RELATIONSHIP SEGMENTS
ACTIVITIES
8. KEY  After sales service
 Special  Contest through the
PARTNERS  Production of  All
packaging Social Media
kerepek using vacuum (Facebook/Instagram)
Gender
 FAMA  Hari Raya special  All range
sealer
 Packaging price offer
 Local  Free sample
of age’s
 Multisizing
Authorities  Special occasion  Local and
 Machines sizes and easy
services
3.2 Business Model Canvas (BMC)

to bring foreigner
 Supplier everywhere  All publics
6. KEY
 Stakeholder RESOURCES  Reasonable 3. CHANNELS
price
 Raw  Shoplot
Material  The ingredients  Cash On Delivery
are 100% halal  FAMA
 Postage
 Lorry
 Machines
 Label

9. COST STRUCTURE
5. REVENUE STREAMS
 Salary
 Sales
 Advertising
 From customer feedbacks can always attracts new
 Utilities bill
customer
 Internet fees
 Advertising

6. RECOMMENDATION AND SUGGESTION

Given that this chips business is only known from oral information sharing, from buyers
who have tasted chips, as well as word-of-mouth, some ideas and proposals are
suggested for the improvement of the business. Among the recommendations
suggested are:-

i) Entrepreneur Exhibition. Attended entrepreneurship exhibition organized by


government agencies such as FAMA, MATRADE, Agro Bank and Bank
Pembangunan Malaysia Berhad. By participating in this exhibition, it will
expand its network of new links and partners. For example, Bank Islam
Malaysia Berhad is also involved in providing financial facilities to the business
and industrial sectors to further strengthen banking and business operations
as a whole. Financial institutions provide eight main facilities for business use
such as bank overdraft, leverage loan, special loan scheme and so on to
support business entity such as Umi Chips to sustain their profits and remain
good business atmosphere. It's also a great platform for business development.

ii) Planting and farming courses. Entrepreneur such as Umi’s chips can attend
courses organized by government agencies and acquire new knowledge in
introducing existing products. For example, the government is actively
promoting agricultural activities among the public by offering land, planting
courses and more incentives. Entrepreneurs such as Umi chips can send labor
to participate in courses such as techniques and opportunities to grow cassava,
chili farming and others that become raw materials for their products.

iii) Packaging. Umi chips entrepreneurs also need to make packaging more
attractive, easy to open, easy to carry anywhere and user-friendly. For example
packaging that uses vacuum sealer technology can provide added value to
their products. Buyers like something simple. So attractive, easy and user-
friendly packaging can attract buyers to make consistent purchases and
contribute to the company's profitability and sustainable performances.

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Vacuum Sealer Technique

iv) Advertising and Promotion. Entrepreneurs and social media are very closely
related. Social media has made the world of communication timeless, unlimited
geographically and happening at all times. Therefore, whether like it or not
entrepreneurs need to make social media one of their advertising mediums to
promote their products. Furthermore, viral power is very strong and they need
to utilize it. Promotion abroad can also attract investors from outside to get
these Umi Chips products will add more revenue sources. It is not possible that
Umi Chips will be able to supply their products abroad.

v) Adding of workers and Main Power. Adding employees is also able to make
Umi's business run smoothly, orderly and maintain a good management
system. With a good management system, successful business opportunities
are better and able to produce excellent governance systems and can reduce
costs. Indirectly it can generate more revenue and benefited to employees.

Based on the above recommendations and suggestions, and assisted by the technique
of using the Business Model Canvas and also SWOT analysis, entrepreneurs like Umi
chips businesses can make their businesses more systematic, competent, organized
and ultimately contribute to the company's profits.

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7. REFERENCES

1. N, J. (2008, September 19). Kerepek 7F ke Luar Negara. Kosmo. Retrieved November 7,


2017, from
http://www.kosmo.com.my/kosmo/content.asp?y=2008&dt=0919&pub=Kosmo&sec=Renca
na_Utama&pg=ru_01.htm

2. Mustafa, F. (2017, May 28). Kerepek Ubi Kayu RK Warisan Keluarga. Utusan Malaysia.
Retrieved November 7, 2017, from http://www.utusan.com.my/bisnes/usahawan/video-
kerepek-ubi-kayu-rk-warisan-keluarga-1.486983

3.Jin, B., & Sternquist, B. (2002). The influence of retail environment on price perceptions:
An explotary study of US and Korean students. International Market Equity, 19.

4. Joppe, M. (2000). The Research Process. Retrieved from http://www.ryerson.ca/


mjoppe/rp.htm

5. Khraim, H.S. (2011). The Influence of Brand Loyalty on Cosmetics Buying Behaviour of
UAE Female Consumers, International Journal of Marketing Studies, 3, (2), 123-133.

6.Keller, K. L., Apéria, T., & Georgson, M. (2008). Strategic Brand Management. Harlow,
England: Pearson Education Limited.

7. Cleverism. (1 March, 2017). Business model canvas - Value proposition. Retrieved from
cleverism: https://www.cleverism.com/business-model-canvas-creating-value-
proposition/
8.Cleverism. (1 march, 2017). Business Model complete guide. Retrieved from cleverism:
https://www.cleverism.com/business-model-canvas-complete-guide/

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8. APPENDICES

Facebook Page

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