MARKETING PRINCIPAL

(MKTG 3010)

TOPIC: BUSINESS PLAN

BUSINESS NAME: CHILLAX SHOP

NAME
AISYAH NURHUDA BT MOHD NAZRI
AFIFAH NABILAH BT MOHAMAD SAFEI
NUR AIYSHAH BT ABD MUNIM
NURULAIN HUSNA BT AZMI
NURFARAHANIM BT MOHD YAHAYA
MOJEEB RAHMAN WAHAJ
CHAUDHARY MUHAMMAD QASIM

Lecturers Name : MADAM KALTHOM BT ABDULLAH

Section
Session

:5
: Semester 2, 2014/2015
TABLE OF CONTENTS

MATRIC NO.
1325960
1321976
1324678
1320654
1324160
1212465
1317363

DETAILS

PAGES

TABLE OF CONTENTS
1.0 COMPANY OVERVIEW
1.1 NAME OF THE BUSINESS
1.2 EXECUTIVE SUMMARY
1.2.1 LOGO
1.2.2 MOTTO
1.2.3 MISSION
1.2.4 VISION
1.2.5 OBJECTIVES
1.2.6 PRODUCTS
1.2.7 ORGANIZATIONAL STRUCTURE
1.3 COMPANY OWNERSHIP
2.0 MARKETING ANALYSIS
2.1 SWOT ANALYSIS
2.1.1 STRENGTHS
2.1.2 WEAKNESSES
2.1.3 OPPORTUNITIES
2.1.4 TREATS
2.1 MARKETING OBJECTIVES
2.2.1 SPECIFIC
2.2.2 TIMELY
2.3 TARGET MARKET
2.3.1 POTENTIAL BUYERS
2.3.2 TARGET CUSTOMERS
3.0 MARKETING STRATEGY
3.1 MARKETING MIX
3.1.1 PRODUCT
3.1.2 PRICE
3.1.3 PLACE
3.1.4 PROMOTION
4.0 FINANCIAL PLAN
4.1 CAPITAL CONTRIBUTION
4.2 SALES BUDGET
4.3 PRICING ANALYSIS
4.4 STATEMENT OF CASH FLOW
4.5 FINANCIAL STATEMENT
4.5.1 COST OF GOODS MANUFACTURED
4.5.2 COST OF GOODS SOLD
4.5.3 BUDGETED INCOME STATEMENT
4.5.4 BUDGETED BALANCE SHEET
5.0 IMPLEMENTATION AND CONTROL
CONCLUSION

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APPENDIX

23 - 24

1.0 BUSINESS OVERVIEW

1.1 NAME OF THE COMPANY
The business name is CHILLAX SHOP. The word CHILLAX symbolize the combination of
words chill and relax. It describes the customers feelings of chill and relax when enjoying our
products. CHILLAX SHOP is established on 21st February 2015 by the agreement of 7 members of
board of directors.

1.2 EXECUTIVE SUMMARY

CHILLAX SHOP is a new independent business that will be operated in International Islamic
University Malaysia (IIUM) that serves mouth-watering desserts to the students. Unlike the other
businesses, CHILLAX SHOP focuses on selling a delicious and affordable mouth-watering desserts
that satisfy the customers need. CHILLAX SHOP sell delicious melty cheese cake and spaghetti that
are suitable to be eaten throughout all generations regardless of their races and ages. Furthermore, the
prices of the products are equivalent to the quality of the products served since the business aims to
get a high profit as well as providing high quality yet affordable mouth-watering desserts to the
students.
Since CHILLAX SHOP will be operated in IIUM, the potential target customers are students,
lecturers, staffs and also the visitors of IIUM. The products that will be sold are very popular among
the students especially to those who are craving for some sweets, cheesy and western desserts. The
quality is high and the taste is also more delicious than the one that are sold by the other sellers.

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CHILLAX SHOP implement the concept where the customer is always right. Therefore, fullfilling the
customers needs and satisfactions is the top priority of the business.
In addition, nowadays, small markets are continuously evolving and thus, causing the
competition among the sellers and businesses grows day by day. However, in this situation, CHILLAX
SHOP is at advantage where it is a few steps ahead of other businesses since its target market is an
exploitable niche and the service is differentiated since the target market will still have similar
tastes, less disposable income and less sensitivity to price.

1.2.1 LOGO

CHILLAX is the name of the

This chef hat

business which represents the

represents the

combination of words Chill

chefs activity to

and Relax

cook the product.

The figure of a
person holds a
The word
Shop
represents the
selling
activities of

knife and a fork

formed by the
combination of
plate, fork,
knife,
moustache and
hands shows
that our

This sentence represents the business

slogan/motto which is Chillax with

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1.2.2 MOTTO
Our business motto is Chillax with Spaghetti & Cheese.

1.2.3 MISSIONS
To ensure that each of our customers receives professional, friendly and courteous services
from us.
To make sure that our company provide food at a fair price, nutritional, well prepared meals by
using only quality ingredients.
We insist to sell all of our products during the Marketing Project Week.
To ensure the customers satisfaction by fulfilling the customers demand and their needs.
To earn the maximum profits and reduce the costs without ignoring the customers maximum
satisfactions.

1.2.4 VISIONS
To widen our business and serve the students with the best service.
To be a profitable and competitive business in the future.
To be the best and recognized food business in IIUM.

1.2.5 OBJECTIVES
To apply the knowledge that we learn in MKTG 3010 in the real world.
To make profit from the sales and donate a portion of it to the charity organisation.

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1.2.6 PRODUCTS
CHILLAX SHOP will offer the customers with mouth-watering desserts consist of Spaghetti
Bolognese and Melty Cheese Cake. Spaghetti Bolognese will be made by our own chef while the
Melty Cheese Cake will be ordered from a supplier. We use halal and tasty ingredients to cook the
spaghetti and its sauce. The cakes are also bought from a recognized and halal certified supplier.

Melty Cheese Cake

Spaghetti Bolognese

1.2.7 ORGANIZATIONAL STRUCTURE

Aisyah Nurhuda bt Mohd

Nazri

Afifah Nabilah bt Mohamad

Safei

Nur Aiyshah bt
Munim

Nurfarahanim bt Mohd
Yahaya

Nurulain Husna bt
-6Azmi

Mojeeb Rahman
Wahaj

Chaudhary Muhammad
Qasim

1.3 COMPANY OWNERSHIP

CHILLAX SHOP is a partnership business which is formed through an agreement between
seven shareholders; Aisyah Nurhuda, Afifah Nabilah, Nur Aiyshah, Nurfarahanim, Nurul Ain Husna,
Mojeeb Rahman and Mohd Qasim. The business will be based in International Islamic University
Malaysia (IIUM) and will start operating during the Marketing Project Week.

2.0 MARKETING ANALYSIS SUMMARY

CHILLAX SHOP aims to be the most leading business that serve foods to the students in
International Islamic University Malaysia (IIUM). We use SWOT analysis to get to know the survival
ability of the business. Then, we make sure that we have marketing objectives that need to be achieved
as soon as the business starts. We find the potential customers to our business and decide who will be
our main target market by doing the market segmentation analysis using some factors.

2.1 SWOT ANALYSIS

We analyse the market using SWOT analysis by identifying and evaluating
the business strengths, weaknesses, opportunity and threats. This analysis is
very important to ensure the survival of CHILLAX SHOP in todays competitive
business world and thus be a successful business in IIUM.

STRENGTHS

WEAKNESSES

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Members have knowledge in

business.
Have a good relationship with

the customer.
High quality of food.

Too

expenses.
Products may be expensive to

certain students.
Financial matters.

OPPORTUNITIES
THREATS
Generate side income to cover
High

daily expenses.
Increase in demand for new

much

spending

competitions

on

among

competitors.
Changes in consumers income.
Difficulties in dealing with

products.
suppliers.

2.1.1 STRENGTH

Members have knowledge in business.

Some of our members have experience in doing business. So, we can
get some advices and tips from them to ensure that our business will be
running smoothly.

Have a good relationship with the customers.

Our main policy is customer is always right. Having a good
relationship with the customers is one of the most important part to fulfill
our business policy . In addition, CHILLAX SHOP also applies the marketing
concept of customers orientation where we take serious concerns on the
needs of the society.

High quality of food.

We make some researches and surveys to get to know the suppliers who

can provide us with high quality and mouth-watering melty cheese cakes at a
lower cost so that we can sell them to the customers at a cheaper and

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affordable price.

The ingredients of the spaghetti bolognese are also from

high quality and halal ingredients.

2.1.2 WEAKNESSES

Too much spending on expenses

Since all of us are still students and do not have any kind of
transports, we will incur some recurrent transportation expenses (for fuel
and rental fees) to go to the supermarket to buy the ingredients.

Products might be very expensive to certain students.

As our target market is mainly for the students, the products might
be very expensive to them especially for those who do not have enough
money.

Financial matters.
We cannot simply sell our products without being concern on ones
welfare. For instance, we purchase for high quality of food and ingredients
at a high cost but after we add markup to the cost and adjusted the selling
price to be an affordable price for all customers, the profits sometimes is
lower and nearly zero. Hence, this situation sometimes would give financial
conflicts to the business.

2.1.3 OPPORTUNITIES

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Increasing demand for the products

After all of the promotion strategies were done, more people will
know about our products and this will increase the demand of our products.

2.1.4 THREATS

High competitions among competitors

CHILLAX SHOP has a quite number of competitors. As we know,
CHILLAX SHOP offers mouth-watering desserts which are very demanded
by the customers and also favourable by the sellers to sell this products.

Changes in consumers income

Consumer income is one of the factors that will influence the
consumers behaviour and consumers preferences. If the personal income
of the consumers decreases, their purchasing power towards our products
will also decreases. This is because, the consumer will be wiser in spending
their money. They will consider between two aspects which are their
income and the benefits or impact of buying the products.

Difficulties in dealing with suppliers

Miscommunication is always being the most important thing that
should be avoid when dealing with either suppliers or customers. Since we
are communication with the suppliers through phone, there might be some
chances for this miscommunication problem to happen between us. This is
the main difficulties that we have to face when making a deal with them.

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2.2 MARKETING OBJECTIVES

CHILLAX SHOPs aim is to retain its position as the leading distributor of
delicious spaghetti bolognese and melty cheese cakes in IIUM and to gain more
market shares. The marketing objectives of the company are best described as :
1. To achieve the integrity and image of our products.
2. To provide the highest possible standard of services to our customers.
3. To ensure the business achieves, maintains and grows an adequate level of
profitability.
2.2.1 SPECIFIC
Within a month, we are going to set up a stall in IIUM to sell our products
during the Marketing Project Week, in which, it will allow us to get benefits
financially from our favorite food. At the beginning of the period, we will have an
inventory of 20 plates of spaghetti bolognese and 20 pieces of melty cheese
cakes. As what we have discussed in our meeting, we aims to sell around 20
plates of spaghetti bolognese and 4 pieces of melty cheese cake per day by
building customer relationships through the words of mouth, referrals and also
local networking.
Our income per day will be approximately around RM 114. Our capital
investment is RM 350. We will also offer some discounts and promotion price as
well to boost our sales. If the business runs smoothly, we are willing to add more
stocks into our inventory.

2.2.2 TIMELY
Our booth will commence on week 13 during the Marketing Project Week
and will last for a week. Each employee is expected to attend the whole week

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until the end of the Marketing Project Week. We want to increase our revenue
throughout the week. We will try to increase the rate of the customers who give
positive feedback to our customers.
In our marketing plan, we plan to establishe a happy hour time, in which we
will give discounts on our products during the hour which is from 3 pm to 4 pm
everyday.

2.3 TARGET MARKET

Since we are doing a small business in IIUM, our target market involves two
categories of customers:
1. Potential customers (buyer).
2. Target costumer.

2.3.1 POTENTIAL BUYER

Potential customers are the individual who is capable of becoming a purchaser
of our products.By knowing who are the potential customers of our products, we
can determine the target market of our products. Our potential customers are all
the students, lecturers, staffs and the visitors of IIUM and not to forget, also those
who are willing to buy our product.

2.3.2 TARGET COSTUMER (TARGET MARKET)

The key group of potential customers is known as our target customers, the
group of people who are most likely to buy our products. For the segmentation of
this category we use the following factors:

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Geographic

Demographic

Psychographics

Behavioral

GEOGRAPHIC
We are doing a small business and our service is just limited to IIUM which
is located in Kuala Lumpur. We cannot offer our products to those people who are
living outside the university. However, if they are able to come to our stall inside
IIUM we can also sell to them.

DEMOGRAPHIC
Segmentation according to demography is based on the variables such as
age, gender, occupation, religion, education level and nationality.

Age: Basically our product is not just for people with a specific range of
age, it means that everyone (teens, child, old men andwomen) can
consume it. But our main target is the students with the age of 18-40 years
old.

Gender: We are selling our products to both male and female students in
IIUM.

Income: Our products are affordable in price, therefore, students in each

category (high, medium, and even low) level of income can buy them.

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Education: We are selling cheese cake to the students of any level of

education (undergraduate, post graduate, PHD, and even to lecturers) who
are living in IIUM.

Religion: Our main target is Muslim consumer, because our product is

produced using halal ingredients and we are selling it in IIUM where the
majority of the students are Muslim.

Nationality: There is no limitation of races and nationality of our

costumers. The reason is that we are doing business in an international and
multi-cultural university (IIUM) which have student from all over the world,
Asia, Africa, Europe and America.

PSYCHOGRAPHICS
In this segment, we are trying to collect analysis of consumer lifestyles in
order to create a detailed customer profile. It may be impossible for us to conduct
a complete psychographic research just by asking consumers to agree or
disagree with activities, interests, opinions statements. But we just simply put it
as follows:

Lifestyles: We are mostly focusing on individual costumer and students of

IIUM.

Interest: We are attracting most of those customers who are interested in

our products.

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BEHAVIORAL
This grouping patterns may include such behaviors as spending, occasion,
usage, and desired benefits.

Usage: we are willing to have all types (light, medium and heavy user
groups) of our products consumer.

Occasions: We encourage our customers to eat our products whenever

and wherever they want at any occasions because our products is just
mouth-watering desserts which are not related or bound to any specific
eating time.

3.0 MARKETING STRATEGY

3.1 MARKETING MIX
3.1.1 PRODUCT STRATEGY
We have done a survey to know which food that students are craving or demanding for. The
result shows that students want food that is affordable yet high quality and quantity that can give them
higher satisfactions. Then, we decided to sell melty cheese cake and spaghetti bolognese. Our product
is a consumer product and categorized under convenience product since the products are bought to
satisfy an individual needs, craving and not expensive.
The supplier for melty cheese cake is ZAD Resources Sdn. Bhd. we found this supplier by the
recommendation of our friends. The company only produces melty cheese cakes with 7 different
flavors which give 7 different tastes. And of course all of those flavors are tasty. Meanwhile, spaghetti
bolognese is a manufacturing product where we cook the spaghetti using high quality and halal
ingredients on our own.

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Furthermore, our products packaging uses persuasive labelling. The label on the packaging
has a very unique design that is very persuasive. The label also promotes our business since we also
put the details of our business in that label.

3.1.2 PRICE STRATEGY

Before we priced our products, we did a research on the current price of the products in the
market. We realized that some sellers sell the products at a very high price but the quality and quantity
of the food cannot satisfy the consumer needs. So, we decided to put a suitable and affordable price on
our products so that all customers can satisfy their needs with a high quality yet affordable products.
The prices are as follows:
Melty Cheese Cake: RM 6 each
Spaghetti Bolognese: RM 4.50 each.
3.1.3 PLACE STRATEGY
CHILLAX SHOP will set up a stall in IIUM during the Marketing Project Week in order to sell
the products which are spaghetti bolognese and melty cheese cake. Both potential and target customers
can get the products by visiting our stall or by placing their orders on facebook using hashtag Chillax
(#Chillax). Delivery services will also be provided if the demand increases.

3.1.4 PROMOTION STRATEGY

CHILLAX SHOP will advertise the products through posters, flyers, social medias and by the
circle of influence, where each of the members will promote the products to their fellow friends and
families. Besides, we will launch the Hashtag Chillax (#Chillax) campaign on facebook, instagram
and twitter to promote our stall and products. Then, we will also provide a happy hour time for the
customers to buy our products at a cheaper price.

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4.0 FINANCIAL PLAN

4.1 CAPITAL CONTRIBUTION
To start the business, each of the members will contribute RM 50 as the capital investment. In
total, it will bring in RM 350 amount of cash into the business.

4.2 SALES BUDGET

CHILLAX SHOP
Sales budget for 5 days
(Spagheti)
DAY 1

DAY 2

DAY 3

DAY 4

DAY 5

TOTAL
(WEEK)

Budgeted sales
(packets)

20

20

20

20

20

100

Selling price per

packet

4.50

4.50

4.50

4.50

4.50

4.50

90

90

90

90

90

450

Sales revenue (RM)

CHILLAX SHOP
Sales budget for 5 days
(Cheese cake)
DAY 1

DAY 2

DAY 3

DAY 4

DAY 5

TOTAL
(WEEK)

Budgeted sales
(packets)

20

Selling price per

packet

6.00

6.00

6.00

6.00

6.00

6.00

24.00

24.00

24.00

24.00

24.00

120

Sales revenue (RM)

4.3 PRICING ANALYSIS

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The business uses cost-plus pricing method in order to set up the product price. The price is
affordable to cover all the cost incurred in making of the product.
COST-PLUS PRICING
Price = Cost + (Markup percentage x Cost)
Spaghetti

= 3.50 + (30% x 3.50)

= RM4.50

Cheese cake = 4.00 + (50% x 4.00)

= RM 6.00
4.4 CASH FLOW STATEMENT
CHILLAX SHOP
Statement of Cash Flow

Starting Cash
Cash Receipts:
Sales - spaghetti
-cheese cake
TOTAL (RM)
Cash Payments:
Cost of production for
-spaghetti
-cheese cake
Advertising
Transportation
TOTAL (RM)
CASH BALANCE (RM)

DAY 1
350.00

DAY 2
373.00

DAY 3
396.00

DAY 4
419.00

DAY 5
442.00

90.00
24.00
114.00

90.00
24.00
114.00

90.00
24.00
114.00

90.00
24.00
114.00

90.00
24.00
114.00

70.00
16.00
2.00
3.00

70.00
16.00
2.00
3.00

70.00
16.00
2.00
3.00

70.00
16.00
2.00
3.00

70.00
16.00
2.00
3.00

(91.00)
373.00

(91.00)
396.00

(91.00)
419.00

(91.00)
442.00

(91.00)
465.00

4.5 FINANCIAL STATEMENT

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4.5.1 COST OF GOODS MANUFACTURED

CHILLAX SHOP
Schedule of Cost of Goods Manufactured per day
Direct Material: Raw material Inventory,Beginning
Add: Purchases of raw materials
Raw materials available for use
Less: Raw material inventory, Ending
Raw material used
Manufacturing Overhead:
Container and spoon
Total Manufacturing Overhead
Total Manufacturing Costs
Add: Work-in-process inventory, Beginning
Subtotal
Less: Work-in-process inventory, Ending
Cost of goods manufactured

RM
70.00
70.00
-

RM

70.00
30.00
30.00
100.00
100.00
RM 100.00

4.5.2 COST OF GOODS SOLD

CHILLAX SHOP
Schedule of Cost of Goods Manufactured per day
RM
100.00
100.00
RM 100.00

Cost of goods manufactured

Add: Beginning finished-goods inventory
Cost of goods available for sale
Less: Ending finished-goods inventory
Cost of goods sold

4.5.3 BUDGETED INCOME STATEMENT

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CHILLAX SHOP
Budgeted Income Statement for a week
RM

RM

Sales Revenue
Spaghetti

450.00

Cheese Cake

120.00
570.00

Less: Cost of Goods Sold

Spaghetti

350.00

Cheese cake

80.00
430.00

Gross Profit

140.00

Less: Operating Expenses

Advertising

10.00

Transportation

15.00

Total Operating Expenses

25.00

Net Income

RM115.00

4.5.4 BUDGETED BALANCE SHEET

CHILLAX SHOP
Budgeted Balance Sheet for a week
RM
Current Assets
Cash
Total Assets

RM

465.00
465.00

Liabilities
Owner Equity
Capital
Net Income
Total Liabilities and Owner Equity

350.00
115.00
465.00

5.0 IMPLEMENTATION AND CONTROL

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1.

2.

3.

4.

5.

6.

PERSON
WEEK/ACTIVITY
IN
2
3
4
5
6
7
8
CHARGE
(PIC)
ACTION, IMPLEMENTATION AND CONTROLLING PHASE
Collect money from each members for Aiyshah
the capital investment (RM 50 each / RM Munim
350 in total).
Find and make a deal with Melty Cheese
Aisyah
Cake supplier. (Analyze and choose the Nurhuda
best supplier that we can get).
,
Farahani
m
Find the place to buy Spaghetti
Afifah
Bolognese ingredients (Choose the least Nabilah,
cost but high quality and halal
Ain
ingredients).
Husna
Starting to promote the upcoming
Ain
business for Marketing Project Week
Husna,
(Invite as many students as we can to Mojeeb,
come to our booth later on).
Qasim
Order 20 boxes of Melty Cheese Cake
Aisyah
from the suppliers (Products should be Nurhuda
received the day before the Marketing
,
Project Week started).
Farahani
m
Buy ingredients to make Spaghetti
Afifah
Bolognese.
Nabilah,
Ain
Husna,
Aiyshah
MARKETING PROJECT WEEK

1. Cook Spaghetti bolognese at 4.30 am Afifah,

everyday throughout the project week.
Aisyah,
Aiyshah
2. Prepare for the business presentation.
Mojeeb,
Qasim,
Farahani
m
3. Collecting datas and records for Mojeeb,
business reports.
Qasim,
(Taking pictures and calculating the cash Aiyshah,
inflow and outflow).
Ain
Husna

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4. Develop and finish the business report.

1. Submit business report

(Due date: Monday, 11th May 2015
before 5 pm)
2. Evaluation

Farahani
m,
Ain
Husna,
Mojeeb,
Qasim,
Aiyshah,
Afifah,
Aisyah
Nurhuda
Afifah

Lecturer
s

CONCLUSION
This marketing project proved to be helpful to all of us. We were able to plan and execute a
business in detail even though our business is small and did not get a lot of profit. From the report, we
have learnt a lot about the process of starting up a business. We gained a lot of experience how to
handle the business as well as the operation and what a business has to undergo to become successful
by conducting this report. In addition, we have also learnt about the risk we have to face and how to
overcome the risks. Through perseverance and hard work, we were successful to achieve our budget.
This project also helps to enhance our entrepreneurship skills. In the near future, we are looking
forward to continue our business venture, Insha Allah.

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APPENDIX

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