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CEREAL JAR COMPANY FINAL REPORT MGM 3180 BASIC ENTREPRENEURSHIP MADAM SITI RAHAYU BINTI HUSSIN
NOR ASMA BINTI MAD KASIM MUHAMMAD FADZLY BIN SALLEH NORMADIAH BINTI MOHD NORDIN MAISARAH BINTI ROSLAN NAJIHAH BINTI AMAT ANAN
(166609) (166768) (167006) (167550) (178205)
MGM 3180 BASIC ENTREPRENEURSHIP
EXECUTIVE SUMMARY The Cereal Jar company was founded on the 20th of September, 2015, with founding members and fellow shareholders Nor Asma binti Mad Kasim (166609), Muhammad Fadzly bin Salleh (166768), Normadiah binti Mohd Nordin (167006), Maisarah binti Roslan (167550), and Najihah Binti Amat Anan (178205). Through meets inside and outside of our lecture sessions under Madam Siti Rahayu Binti Hussin, we have devised the vision, mission and logo for our Cereal Jar company on the grounds of functionality of our product and appeal to our target audience. A collection of RM50 per person was collected from each shareholder accumulating to a RM250 total reserve for covering various costs for equipment and material. As presented in the company name, Cereal Jar offers a familiar yet unique experience in experiencing breakfast or snacking by using cereals and chocolate mixed creatively in a jar for a feast for both the eyes and the palate. Costs to be covered include including various shapes and flavors of cereal; chocolate and jars to be used in assorting the various cereal types with chocolate. We aim to accumulate around RM80 worth of profit. Obstacles faced by Cereal Jar would include competition from other food service companies in the class as well as in other classes. This competition will also be felt from other, more familiar competitors with similar ideas such as those whom sell bubble rice with chocolate in jars. We hope to overcome these shortcomings in competition by offering value for money products which are significantly cheaper than the products presently available in the market. Time restraints need also be considered as the shareholders for this company are of multi-disciplinary backgrounds. Differences in time schedules for classes and any involvement in programs need to be understood and tolerated between shareholders and a sense of responsibility will need to be instilled between shareholders if we intend to make Cereal Jar a success.
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Financial issues may also arise; lacking of funds to buy more material, especially if there is more demand than supply. In this case, we may need to increases prices to cover more costs or look for cheaper alternatives to be used in our product, yet, are still consistent in quality. Recognition of the product would also need to be addressed as Cereal Jar is still a new company, which is why we propose using popular social media sites to promote our product; we will set up a our own Facebook and Whatsapp account to reach out to a wider spectrum of customers. Despite the shortcomings and obstacles we may face, the Cereal Jar Company will trudge on and seek help from various sources such as from our lecturer and from other companies to further understand on how to apply the knowledge of entrepreneurship into our group. We hope to gain valuable experience from this endeavor and hopefully, further expand Cereal Jar even after finishing the course.
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TABLE OF CONTENT PAGE EXECUTIVE SUMMARY
i
TABLE OF CONTENT
iii
LIST OF TABLES
vi
LIST OF FIGURES
vii
LIST OF APPENDICES
viii
PART 1
BUSINESS REPORT
1.0
Company Introduction
1
2.0
Business Report
2
3.0
Vision, Mission And Logo Of Company
3
3.1
Vision
3
3.2
Mission
3
3.3
Logo
3
4.0
Business Organization Structure
4
4.1
Structural Formation
4
4.2
Share of Each Members
4
4.3
Organizational Chart
5
4.4
Task Distribution
6
4.4.1
6
Chief Executive Officer
4.4.2 Executive Secretary
7
4.4.3
Financial Manager
8
4.4.4
Marketing Manager
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4.4.5 Operating Manager
10
5.0
Operating Plan
11
5.1
Production Process
11
5.1.1 Process of Producing Product
11
5.2
Process and Venue of Production
12
5.3
Process and Venue for Selling
13
5.3.1 Production Schedule
13
5.3.2 Business Premises
13
5.2.3 Business Operation
13
5.3.4 Delivery
14
5.4
Implementation of Business Activity Table
15
6.0
Marketing Plan
16
6.1
Product and service
16
6.2
Marketing Studies
18
6.2.1 Physical Qualities
18
6.2.2 Sales Location
18
6.2.3 Sanitation
18
6.2.4 Pricing strategic
19
6.2.5 Promotion and Advertising
19
6.2.6 Sales and Distribution Strategy
20
6.2.7 Poster and Flyers
20
Target market
21
6.3
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6.4
6.5
PART 2
Marketing analysis
24
6.4.1 SWOT Analysis
24
Competitors
26
6.5.1 Homescience Student
26
6.5.3 Other MGM Group
26
FINANCIAL REPORT
7.0
Financial Plan
27
7.1
Source of Funding (Capital)
27
7.2
Expense Records
28
7.3
Sales Records
29
7.4
Financial Statement/ Cash Flow
30
7.5
Income Statement/Profit and Loss Statement
31
7.6
Balance Sheet
32
7.7
Financial Analysis
33
PART 3
PROBLEM AND LESSON LEARNED
8.0
Problems Encountered
35
8.1
Lesson Learned
37
PART 4
CONCLUSION
9.0
Conclusion
39
APPENDICES
40
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LIST OF TABLE
Table No
Title
Page
Table 1
List of the shareholders with the amount of the shares
4
Table 2
The Gantt Charts for Implementation of Business Activity
15
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LIST OF FIGURE
Figure No
Title
Page
Figure 1
Chart of Target Customer
22
Figure 2
Chart of Target Customer Based on Gender
23
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LIST OF APPENDICES
Appendices
Title
Page
A
Planning Agenda
40
B
Logo Design
41
C
Process preparation cereal in a jar
42
D
Promotion
43
E
Poster
45
F
Entrepreneurship Day Carnival at Faculty Economy
46
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1.0
Company Introduction
Based on the popular foods eaten during breakfast, Cereal Jar incorporates the use of a myriad of cereal flavours and shapes to not only attract the eyes of potential customers, but also to fulfill the palates of demanding customers. As more and more food based companies mushroom across the nation, we intend to trudge on a different path, uniquely different from food products offered by other companies but sticking to well-known and familiar methods used by more established food sellers. At Cereal Jar, we combine different sorts of cereals with different but delicious tastes and shapes, together with chocolate to give consumers memorable pleasure. All of this, we pack in elegant, yet, simple glass jars to present a refined eating experience. Profit will not be our main aim from Cereal Jar, from now or ever. Instead, we aim to introduce our product at competitive prices not only to gain the upper hand against the competition, but also to give our potential customers a lighter heart when spending their hard-earned cash in our product. We hope to instill a spirit of love and passion in our customers towards Cereal Jar, as much as we have our love and passion for the company itself. By instilling such a spirit in our customers, we are confident that they would trust us with the ingredients and materials we use to produce high-quality products at a reasonable price. Especially in our infant stages, our profit margin will not be high to first develop that love and passion in our potential customers into our company. We first need to establish a loyal and hopeful customer base, not only to have a steady stream of customers in buying our products but also to have an external pressure on our company to produce great products that they can look forward to. From this, not only will Cereal Jar face an internal pressure of producing profit from product, but also to uphold an external pressure where we need to come up with something our fans would love to have in place of their well-earned money. Empowerment of customers should be the priority of any company.
.
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2.0
Business Report
The Cereal Jar was a new company that had been established for the MGM 3180 course, founded on the 20th of September, 2014.Cereal Jar Company sold a healthy snack for all ages (children, teenagers, and adult), combining different sorts of cereals with an assortment of delicious tastes and shapes, together with delectable chocolate to give consumers memorable pleasure. All of this, we packed in elegant, yet, simple glass jars to present a refined eating experience. The purpose of selling our product was to allow our customers to enjoy the taste of the cereal jars and eat it not only for breakfast but as a snack in an easy way, to be consumed anytime and anywhere. Other than that, Cereal Jar is a healthy food item because it can supply carbohydrates, protein, and vitamins to our bodies. Customer also can taste a different cereal in a jar because we put four different cereals in jar. This final report will explain how Cereal Jar Company had built, managed, and established from administration, operation, marketing and finance sectors. For administration, it shows the position and function of each member. By having this, each of our members will be carrying out their work based on their positions and making it easier to manage the Cereal Jar Company. This final report will also explain on how the company identified and managed to solve problems throughout the business activity. Other than that, this final report will explain on how Cereal Jar Company was established until delivery of the product. While in the financial planning, the financial executive would explain the total of project implementation cost, sources of fund to the financial business, cash flow, profit and loss and balance sheets projection. So, that it can give an overview to further expand Cereal Jar Company even after finishing the course. Last but not least, credits and appreciations was dedicated to Cereal Jar‟s lecturer, Madam Siti Rahayu Binti Hussin in order to lead us to establish this great company and give a very useful references and information to create an effective business plan, managing the company efficiently, processing of our product to be sold to customers and also as our guidance to complete this final report.
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3.0
Vision, Mission and Logo of Company
3.1
Vision
3.2
3.3
To come up with value-for-money food products that consumers will be confident in purchasing. To instill a culture of hope from consumers in demanding for new and refined products under Cereal Jar. To make reasonable profit from sales.
Logo
Mission
To be the brand that customers love.
The initials “CJ” are used to create brand awareness regarding our company name, “Cereal Jar”. Short and simple, customers can comfortably spread the word about Cereal Jar with its initials. To create a comfortable feeling inside our customers, we use a mild orange colour. At the same time, the brightness of the orange colour will attract their attention as well as have a better appetite to having a jar of cereal.
A stylish jar inside the attractive, yet, simple circles, to present to our customers that we are, indeed, Cereal Jar. The words “Cereal in a Jar” as our catchy catch-phrase.
“Eat different”, to present to our customers that they will be having a unique experience when with Cereal Jar, unlike any other foods they have ever taken | CEREAL JAR COMPANY: FINAL REPORT|
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4.0
Business Organization Structure
4.1
Structural Formation
Cereal Jar was a new company that had been established for the subject purpose MGM 3180. This company was established on 20th of September, 2014. This company sold basically a healthy snack for all stage of ages (children, teenagers, and adult). As presented in the company name, Cereal Jar offers a familiar yet unique experience in experiencing breakfast or snacking by using cereals and chocolate mixed creatively in a jar for a feast for both the eyes and the palate. The Cereal Jar Company was founded by five members and fellow shareholders which are Nor Asma binti Mad Kasim, Muhammad Fadzly bin Salleh, Normadiah binti Mohd Nordin, Maisarah binti Roslan and Najihah binti Amat Anan. Each of members plays an important rule and takes responsibilities to ensure the sustainability of Cereal Jar Company toward success.
4.2
Share of Each Members
NAME
AMOUNT SHARE
Nor Asma binti Mad Kasim
RM50
Muhammad Fadzly bin Salleh
RM50
Normadiah binti Mohd Nordin
RM50
Maisarah binti Roslan
RM50
Najihah Binti Amat Anan
RM50 Total
RM 250
Table 1: List of the shareholders with the amount of the shares
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4.3
Organizational Chart
CHIEF EXECUTIVE OFFICER Muhammad Fadzly Bin Salleh
EXECUTIVE SECRETARY
FINANCIAL MANAGER
Normadiah Bt Mohd Nordin
Maisarah Bt Roslan
CHIEF MARKETING MANAGER
OPERATING MANAGER
Nor Asma Bt Mad Kasim
Najihah Bt Amat Anan
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4.4
Task Distribution
4.4.1 Chief Executive Officer
Name
Muhammad Fadzly bin Salleh
Age
21 years old
Education
Bachelor of Science (Hons) in Cell and Molecular Biology
Duties
Skill
Leading other members during conducting the business. Create goals and missions for the project. Set efficient strategies for the business project. Coordinate overall business operations. Advise and monitor the board members. Ensuring business presented in strong and positive image. Good planning skills.
Leadership skill. Strategic thinking.
Good management and administrative skills.
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4.4.2 Executive Secretary
Name
Normadiah Binti Mohd Nordin
Age
23 years old
Education
Bachelor of Science in Human Development and Information Technology
Duties
Assist in the planning of meetings and taking minutes. Prepare business proposal. Apply for place to set up and operate the business.
Ensure all information is effectively recorded down and shared.
Skill
Assist in completion of various forms involved in the business. Finalise order list.
Multi-tasking person. Management skill. Able to work in fast pace environment. Strong interpersonal skills.
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4.4.3 Financial Manager
Name
Maisarah Bt Roslan
Age
21 years old
Education
Bachelor of Science (Hons) Major in Biology
Duties
Anticipate and handle the issues of financial management.
Control and monitor cash flow throughout business. Prepare budget, account and financial report. Carry out business modelling and risk assessment. Collect modal from board members. Money keeper during business time. Managing and forecasting cash.
Skill
Good management skill. Good in problem-solving, analytical, IT and calculation. Critical thinking. Trustworthy person.
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4.4.4 Marketing Manager
Name
Najihah Bt Amat Anan
Age
20 years old
Education
Bachelor of Education ( Hons ) in Homesciene
Duties
Research on current and potential customers.
Develop marketing strategies and plans. Taking feedback from customer by various methods. Use Facebook for marketing purpose. Responsible to hit the sales target for an organization. Create various ideas for publicity purposes.
Skill
Good communication skill.
Good planning in marketing. Advanced computer skill. Creative.
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4.4.5 Operating Manager
Name
Nor Asma bt Mad Kasim
Age
21 years old
Education
Bachelor of Science ( Hons ) in Microbiology
Duties
Skill
Lead and mange production team for optimisation of resources and maximum productivity Plan and organise production activities in order to achieve organisation‟s mission Monitor the production process and adjust schedules for the business. Sets the quality standard of the product Ensuring efficiency in operating the business by lower the cost for product and minimise the time for production. Responsible for supplies needed for the business operation. Good planning skill.
Multi-tasking person.
Good decision maker.
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5.0
Operating Plan
5.1
Production Process
To maintain our product quality and taste, the cereal are sold and made by the company members themselves. This is to ensure every batch of cereal jars are of the highest quality with cleanliness ensured. Customers will then be satisfied when purchasing our product. We all know that customers are important in business and it is our priority to fulfill our customer‟s demands. Other than that, we will also keep on improving the quality of our product that we made and sell based on customer feedback.
5.1.1 Process of Producing Product Input (Ingredients) • Variety Cereal • Chocolate
Input (Tools) • Jar • Ribbon • Spoon
Process: • All jars was cleaned properly before raw materials were added • After that, Nestle Milo cereal was put inside the jar for about three table spoonful. • Then followed by bubble rice • Next, melted chocolate was added on top of bubble rice • Another cereal which is Nestle honeystar.
Output • After finish, jars were closed tightly, then ribbon was nicely tied around jar • Lastly, spoon was placed at neck of jar.
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5.2
Process and Venue of Production
The main ingredient for our product cereal in a jar is cereal and chocolate. We found another famous products same with us product is Choco Rice. However, to ensure our products different with the products available in the market, we do not use only bubbles rice and chocolate as a main ingredient but we use variety cereal with high quality and delicious chocolate. This is to ensure our customers get the healthy food and can maintain a good eating habit. As we know, cereal is a healthy food because it can supply carbohydrates, protein, and vitamins to our bodies. Customer also can taste a different cereal in a jar because with put four different cereal in a jar. We do some research to find a wholesaler that can offer cereal, chocolate, ribbon, spoon and jar at affordable prices. We found the price of the ingredients and tools for our product almost same for every outlet. To ensure our customer get the highest satisfaction, we finally only use famous cereal in the market to make sure our customer confident to buy our product such as Nestle Honeystar, Nestle Milo, Cookie Crisp, and Kellog Choco Chex. Next our chocolate, the price of chocolate varies according to different outlet. We had surveyed our price at Yummies Bakery, Giant, Speedmart and HERO Mart. For conclusion, our ingredient bought from Yummies bakery for chocolate, cereal from Giant and spoons from HERO Mart. Since the price is cheapest and the distance is the nearest. We could save a lot in aspect of cost and transport fees.
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5.3
Process and Venue for Selling
5.3.1 Production schedule
The process of our product was making in one day which is weekend. So, all of group members can contribute on the making process. Usually, were produced our product at 8 pm until 11p.m. We were produced our product based on how much orders on that week.
5.3.2 Business Premises
We will have no official premise for stationary sales as this would only incur additional costs from rent and equipment needed to set up desks and other equipment needed. However, we will use the Serumpun Cafe to have our meetings and gatherings to conduct our work, and also college rooms in Serumpun.
5.3.3 Business Operation
Cereal Jar operation focuses primarily on a cash-on-delivery system, communicating directly with our customers. This is to gain customer traffic from these approaches as our target demographic area the students and staff of University Putra Malaysia. Customers can contact Cereal Jar for any inquiries and to make orders through our phone numbers. Once their order has been made, we will deliver the items to them.
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5.3.4 Delivery
The procedure of delivering our product was involved all of group members which from different colleges (KTP, KMR, K6 and Serumpun). This is because, majority of our customers are families and friends. We were delivered our product straight away to the customer‟s hostel after finished it especially customers from UPM. This is because we want to make sure our customers satisfied with quality of our product. Other than that, we used that kind of strategy because to make sure that cereals in jar not soggy when it reach to our customers. Our product was made week by week and only produced on weekend. We take orders from our customers on weekdays, and start to buy raw materials and produce our product based on their orders. If we cannot give to them on weekend, we were giving to them during classes. Our customers not only UPM students but from other place, so we manage to post our product to them through Post Office to make sure our product safely arrived to them.
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5.4
Implementation of Business Activity Table
WEEK DATE
WEEK 1
WEEK 2
WEEK 3
WEEK 4
1
2
8
9
15
16
22
23
26
NOV
NOV
NOV
NOV
NOV
NOV
NOV
NOV
NOV
2014
2014
2014
2014
2014
2014
2014
2014
2014
EVENT
PROMOTION PURCHASE OF GOODS PRODUCTION PROCESS STARTING BUSINESS RUNNING BUSINESS PRODUCT IMPROVEMENT POST MORTEM COMPLETING BUSINESS Table 2: The Gantt Charts for Implementation of Business Activity
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6.0
Marketing Plan
6.1
Product and Service
Cereal Jar is our product that will fulfill customers needs. Besides give multinutrients to our body, it will also be mixed with other flavours and textures from the different cereal types with the delicious chocolate layers. Other than that, cereal jar can also be gifted as presents to loved ones and friends. This cereal jar is decorated by us with colourful ribbons and a spoon to complement the beauty of the glass jar. It is a safe and healthy food because these cereals are put inside an air tight jar, so these cereals do not become soggy. We are selling our cereal jar directly to our customers by pre-order through Facebook and flyers. Once the order has been put in, we will work together to prepare the cereal jars. As we know, people, especially students and workers, always skip their meals because they are busy with their daily work. So, we find an alternative to solve their problems by introducing our product which is cereal jar. This product is good because it can be taken anytime and anywhere. They can eat our cereal jar before start the class.. Normally, people have cereal only in the morning, but with cereal jar they can have cereal any time they want. These scrumptious cereals with delicious chocolate layers will be packaged in small, air tight jars and can be carried everywhere especially at workplaces. Our product is the best and quality product for customer especially UPM student and include quality ingredients:
Nestle Honey star
Nestle Milo
Bubble rice
Cornflakes
Cookie Crisp
Kellogs Choco Chex
Delicious Chocolate
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During the selling period, there are many competitors from many aspects which is selling the same product with our company. Thus, we make a good service for our customer and make a good relationship with them to convince customers buy from us. Firstly, we plan to delivery service our product for customers. This includes delivering the product to the customers „door step‟ and we tried to satisfy customer requirements, such as giving a lot of choice of cereal to our customer.
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6.2
Marketing Strategies
6.2.1 Physical Qualities
Our product based on cereal and chocolate. The Cereal Jar only uses quality of cereal. We combine different sorts of cereals with different but delicious tastes and shapes, together with chocolate to give consumers memorable pleasure. All of this, we pack in elegant, yet, simple glass jars to present a refined eating experience. Our selling products all are handmade. We guaranty the product are good quality, safe and healthy.
6.2.2 Sales Location
Our group member comes from different college. So we decide make a direct selling at each college like KTP, K6, KMR and K14. We start our direct selling on 30 October 2014. We sold door to door. We also involve ourselves in Entrepreneurship Day Carnival held by the Faculty of Economy on 25 November 2014. In the carnival day, we realized that they were people sell the same product with our product. This is more convenient as many people in faculty economic will pass by there and take a try on our booth. Besides by direct selling, we also make pre-order for customers who want a different type of cereal. In this way, we were able to get more potential customers that might buy our products.
6.2.3 Sanitation
To ensure our products sanitation, each of us who are responsible to prepare the food has to wear plastic gloves. This act can let customer eliminate their doubt with the hygiene of food. When we sell our product at carnival an entrepreneur at faculty economy, we provide a tester for customer. For that, we provide one spoon only for first taste then we throw away the plastic spoon.
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6.2.4 Pricing Strategic
Pricing is another an important element in a marketing strategy. Customer usually will look at the price when they decide whether to buy the product. If the price of products is too expensive, we might lost many customer because our targets customers is student. We decide to put the reasonable price because our target especially student, lecturer and staff in UPM.
6.2.5 Promotion and Advertising
The main way of promoting and exposing our business is via promotion among friends of our group members. First of all, we would spread the words among our friends that we are selling cereal jar as breakfast or snack. We have advertised our product through Facebook. We only use group member personal account Facebook to promote our product to our friends. We post every update about our product there. We also provide preorder delivery service. Facebook is powerful media in promoting and it will help in our business a lot. We always keep update about our product to let people knew about our company also our products. We also update if we open for preorder and direct selling. We uploaded photos and let customer to order by via Whatsapp or message. We tagged the photo of the cereal jar for all the colleges‟ students and share it on the profile to let more people know about our company. It is an important tool as Facebook has become a new trend to interact with others. It‟s free, direct, fast, and convenient way to attract more customers. We also often get feedback from customers through Facebook.
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6.2.6 Sales and Distribution Strategy
We will arrange the schedule that arrange the time of duty for each group members. Besides that, our group members also decide take some early order from the customer. We make lists everyday to make our job easier. Our company has systematic system when take an order from customer. We will open order one week then closed order for fulfill the order. We increased the sale through communication with the customers, know what they want and offer what they want.
6.2.7 Poster and Flyers
In addition, we design and distribute flyers to our group members college such as KTP, KMR K14 and K6. We highlight “EAT DIFFERENT” to attract more customers. We also pasted the flyers on the notice board in each floor of the blocks. We mentioned our ingredients, telephone number and insert some pictures to let them have a picture of what we‟re selling. Besides, we also design the poster of our product in colorful way to catch the eyes of customers. Once people are attracted to approach our product, then our group members will be able to introduce our products and persuade the potential customers to buy.
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6.3
Target market
Our main customers are UPM students and staff. Other than that, we are using social media to sell our product to people who are staying outside UPM and who are busy with their work. They can order our product and we will send directly by hand by having a meeting with them at nearby places in UPM. Our product is cheap and affordable, suitable for students who want to taste cereals with chocolate. We also decorate this product as a present to attract our customers. Then, we use marketing strategy like test market which we give free samples to our customers and use their opinion to improve our product. Lastly, we are also create our bonding with customers such as they can give any feedback whether positive or negative feedback about our product, so we can always improve the quality of our
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Estimated target customer:
Target customer
Student
Lecturer
Staff
Chart 1: Chart of Target Customer
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Gender
Female
Male
Chart 2: Chart of Target Customer Based on Gender
6.4
Marketing analysis | CEREAL JAR COMPANY: FINAL REPORT|
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6.4.1 SWOT Analysis We conducted a SWOT analysis, by which evaluates the company‟s overall strengths (S), weaknesses (W), opportunities (O), and threats (T). Strengths include internal capabilities, resources, and positive situational factors that may help our company to serve the customers. Weaknesses include our internal limitations and negative situational factors that may interfere with our company‟s performance. Opportunities are favorable factors or trends in the external environment that our company may be able to exploit advantages. Threats are unfavorable external factors or trends that may present challenges to performance. The following are the SWOT analysis of our company:
Strengths
Weaknesses
Variety type of cereal
Customers had many choices of cereals. Good promotion Everyone in the group promote to customer very well
Lack of personal transport
Only 1 member had transport, not sufficient.
Original and unique idea
No one in the market has ever made cereals in a jar with chocolate.
Opportunities
Threats
Convenience
Staying in the university colleges allows for easier reach to potential customers.
Many competitors
Sell the same product like us.
Long term market opportunity
Our product is health-related food and can get with affordable price.
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After evaluation of SWOT analysis, we should clear with the strength, weaknesses, opportunities, and threats of company. Enhance the strength, improve the weaknesses, take the opportunities, and be careful of threats of the company. Strategies to overcome with the weaknesses and threats of company: Weaknesses/ Threats
Lack of personal transport
Strategy Find suitable time for person able to drive to obtain all materials and settle as many errands as possible in one trip. This will save not only on manpower needed to bring vehicles but also saves on time and petrol.
Many competitors
Differentiate our product from competitors in the aspect of quality of food and services to create superior customer value. We need to be more pro-active in marketing and gaining a following in customers. We need to ensure that when customers buy from Cereal Jar, it would not be the last time and would want to purchase goods from us again.
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6.5
Competitors
6.5.1 Homescience Student
We encountered our competitors is mostly form Homesciene student. This is because they also learn about this recipe. There are from second or third year who sell bubble rice similar with our product. They start selling the similar product with our company at Kompleks Akademik A which is already monopolized since the past year. .
6.5.2 Other MGM Group Other MGM group was selling the same product with us. We were competing same size of jar and prices. But, their cereal was only consisting of bubble rice and melted chocolate not as Cereal Jar that consists of variety types of high quality cereals. It make our product is better than them.
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7.0
Financial Plan
7.1
Source of Funding (Capital)
Being a partnership, each partner had contributed an equal amount of RM50. Thus a total owners‟ capital is calculated as below:
7.2
Owners‟ capital
= RM50 x 5 = RM 250
Price per unit of large Cereal Jar
= RM 5.00
Price per unit of small Cereal Jar
= RM3.00
Expense Records | CEREAL JAR COMPANY: FINAL REPORT|
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Expenditure record for overall cost of production including fix cost and variable cost. Subjects
7.3
Quantity Cost/Unit Total Variable Fix Cash (RM) Cost Cost Cost expenses (RM) 21 boxes 16.80 352.80 2 boxes 26.00 52 8 packs 1.60 12.80 5 coils 6.00 30.00 8kg 17.5 140.00 3 packs 7.90 23.7
Large jar Small jar Spoon Ribbon Chocolate Bubble rice Mini bubble rice Nestle Honeystar Nestle Milo Kellogg’s Cheerios Kellogg’s Cookie Crisp Kellogg’s Choco Chex Kellogg’s Honey Flakes Plastic container Car petrol Total Sales Records
3 packs
7.90
23.7
5 packs
10.89
54.45
5 packs
10.89
54.45
1 pack
9.99
9.99
1 pack
9.99
9.99
1 pack
9.99
9.99
1 pack
9.99
9.99
6 units
5.00
30.00
20.00
20.00 833.86
803.86
Non-cash expenses
30
833.86
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Large Cereal Jar Small Cereal Jar Total Sales
Large Cereal Jar Small Cereal Jar Total Sales
Total sales per week
7.4
Week 1 (RM) 31 units x 155.00 RM5 -
Week 2 (RM) 38 units x RM5
-
-
-
155.00
Week 3 (RM) 75 units x 375.00 RM5 -
-
190.00
Week 4 (RM) 108 units x RM5
540.00
48 units x RM3
144.00
375.00
Week 1 (RM) 155.00
Week 2 (RM) 190.00
190.00
684.00
Week 3 (RM) 375.00
Week 4 (RM) 684.00
Total (RM) 1404.00
Financial Statement/Cash flow
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Cash Flow Statement For The Month Ended 30 November 2014 RM 250.00
Cash on Hand (capital) (+) Cash Flow In Cash Sales
1404.00
Net Cash Flow In
1654.00
(-) Cash Flow Out Cash Expenses
833.86
Balance
820.14
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7.5
Income Statement/Profit and loss statement
Profit and Loss Statement For The Month Ended 30 November 2014 RM RM Sales Large Cereal Jar Small Cereal Jar
1260.00 144.00
1404.00
(-) Production Costs
813.86 590.14
Gross Profit (-) Operation Expenses Car petrol Net Profit
20.00
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20.00 570.14
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7.6
Balance Sheet
Balance Sheet Statement For The Month Started 1 November 2014.
Fix Assets Variable Assets Cash
RM - Equities Capital
RM 250.00
250.00 Liabilities
250.00
-
250.00
Balance Sheet Statement For The Month Ended 30 November 2014
Fix Assets Variable Assets Cash
RM - Equities Capital Net Profit 527.48 Liabilities
250.00 570.14
820.14
820.14
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RM
-
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7.7
Financial analysis
Net Profit Margin
=
Net Profit
x 100
Sales
=
RM570.14 x 100 RM1404.00
40.61%
=
Break Even Point of Large Cereal Jar
=
Total Fix Cost
(Price of Sales – Variable Cost) per unit
=
RM30 RM 5.00 – RM 3.00
=
15 units
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Break Even Point of Small Cereal Jar
=
Total Fix Cost
(Price of Sales – Variable Cost) per unit
=
RM30 RM 3.00 – RM 1.70
=
23 units
Return of Investment
=
Net Profit x 100% Capital
=
RM570.14 x100% RM 250
=
228.06 %
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8.0
Problems Encountered
As fresh entrepreneurs, we did not have any business experience as we start a business from zero. We did not have the right marketing strategy and the right planning or guideline to position our product in UPM market. So, we promote our product using media social such as Facebook and direct selling to get attention from customer to buy our product and to inform them that our product now available at UPM.
We faced the problem of communication among group members. We are from different college which is Serumpun, KPZ, KTP and K6. It is difficult for us to meet up and discuss how the business‟s progress. As, we know technology is convenient and useful nowadays, so we discussed our business through Whatsapp and Facebook in our group "Cereal Jar”. Actually, this is a good application for our group members to ask and share anything what they want to share to each other about our business. We updated business‟s progress there and every member able to receive the message.
We also faced problem in time management. During do a meeting for the products preparation, some of our members cannot come because of other commitment such as join a competition, have replacement class, college activity and some of us came late due to transportation problems. Therefore, the time requirement to complete the whole process of making cereal jar was take longer time due to the lack of workers. What we do is we only make the cereal jar when everybody had free time. So, it is affair to each member.
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We faced is the inadequate supply of large jar from the store. As a result, this lead to the lower profit gained because we had to substitute about 48 small jars and small jars give less profit which is approximately RM1.30 per jar. If we are able to sell all large jars than we will get higher profit or income since each large jar gives us about RM2 of profit. We learned that we need to find more than one reliable supplier to run our business. This is to ensure the smooth business activity and to ensure that the profit can be maximized as possible.
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8.1
Lesson Learned
Planning a business
During taking this subject, we have learned how to plan a business. We have defined our business, for example, we will clarify what product we want to sell, who our customer, how to be different product, what is our price that should we put to our product and what is our primary competitive advantage. A good start of business always comes with a nice plan. If we have a better plan, we can prevent ourselves from doing mistake that cause any undesired deficit or unwanted wastage in materials. A good plan includes a well organized functioning group and a group of productive workers.
Financial report for a business
We learned that it is very important to have a financial report for a business because from that report we will be able to estimate the future state of our business and to find chance for business expansion or growth. Financial report also vital in order to ensure that the cash inflow and outflow is happening in a way that it should be, and not bringing any lost to the company. We can monitor the company financial state very efficient when we have all these financial statements.
Social skills
A good social skill helps in promoting our company and also helps in finding solution for problem that encountered. Friends around us always appear for a reason, we might not know why and how in that moment but friends will give suggestion and help if they are capable to. For example, during Entrepreneurship Day at Faculty Economy we do a good communication skill to ask customer buy our Cereal Jar. As a result, on that day we sold 150 jars
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Problem solving
During our business, we learned make a solution when facing problems. When we know that there are some business selling the same product with us and selling at the same place, we have decided to change our plan that we have planned well at the beginning. A company necessary has 'plan back-up' respectively as preparation in case face problem.
Spirit of teamwork
Teamwork is the key to success, a quality and productive team makes big different to the others. When we have a strength spirit of teamwork, all planning for business will run smoothly without any problem. As a team, we believed that everyone will do their job with their best effort, therefore our job are always done, that satisfy us.
Be different
We have learned how to be different. We have stand out. We have to differentiate ourselves. When we are just getting started, the biggest thing we will be vying for is attention. Nobody is going to pay attention to a company that‟s doing exactly the same thing as everyone else, since we know that are some groups are selling the same product with us, we have thought to add another product to sell to make it different from the other groups.
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9.0
Conclusion
Cereal Jar was founded through our involvement in this Basics in Entrepreneurship (MGM3180) course, under the supervision of Madam Siti Rahayu Binti Hussin. Through a period of a fourteen-week lecture period as well as hands-on time with the basics of planning and carrying out the workings of a successful business company, our five persons group has come to understand the true basics in entrepreneurship. We have come to understand that many aspects need to be considered before immersing ourselves in the competitive world of business. Besides considering what products or services should be provided, we have come to an understanding that we also need to cater to the needs and desires of the current customer profile. The customers are the biggest assets to a company‟s success and we need to understand who they are and what they want first before we start introducing what we want to produce. When we understand who our customers are and what are their demands, proper planning of how the business should be developed and executed need to be done. Matters such as having the proper company identity example name and logo of the company, vision, mission and money flow need to be carefully planned out so as to have the highest efficiency in achieving our targets. Potential threats and faults can also be predicted and overcome with meticulous planning, as well as having a clearer picture of how the company business will be run. Through this course, we have also learnt the importance of determination and will to carry on with our business. We have learnt the proper attitude to be implemented to become successful entrepreneurs and the sacrifices it takes to be one. In the end, we believe that MGM3180 has instilled the right ideologies and practices for us, as students of University Putra Malaysia, to take one step further in becoming a successful entrepreneur. Or at least, to consider it.
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APPENDICES A
Planning Agenda EVENT/TIME (WEEKS)
1
2
3
4
5
6
7
8
9
10
11
12
FOUNDING OF COMPANY BUSINESS PLANNING
MATERIAL GATHERING PROMOTION (MARKET TESTING) SELLING SUBMISSION OF REPORT PRESENTATION
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40
13
14
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APPENDICES B
Logo Design
First Sketch
Second Sketch
Third Sketch
Fourth Design (CJ LOGO)
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APPENDICES C
Process Preparation Cereal in a Jar
Firstly, Nestle
Secondly, bubble
milo cereal
rice was added on
was
top of
put
Nestle
into jar
milo cereal
Next,
Then,
Jar was closed
Lastly,
melted chocolate
Nestle honeystr
tightly,
spoon was
was
cereal
then
placed at
added
was
ribbon
neck of
into jar
added into jar
was tied nicely around jar
jar
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43
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APPENDICES D
Promotion
Facebook
Flyer
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APPENDICES E
Poster
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45
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APPENDICES F
Entrepreneurship Day Carnival at Faculty Economy
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Our Booth
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NOR ASMA BINTI MAD KASIM MUHAMMAD FADZLY BIN SALLEH NORMADIAH BINTI MOHD NORDIN MAISARAH BINTI ROSLAN NAJIHAH BINTI AMAT ANAN
(166609) (166768) (167006) (167550) (178205)
MGM 3180 BASIC ENTREPRENEURSHIP
EXECUTIVE SUMMARY The Cereal Jar company was founded on the 20th of September, 2015, with founding members and fellow shareholders Nor Asma binti Mad Kasim (166609), Muhammad Fadzly bin Salleh (166768), Normadiah binti Mohd Nordin (167006), Maisarah binti Roslan (167550), and Najihah Binti Amat Anan (178205). Through meets inside and outside of our lecture sessions under Madam Siti Rahayu Binti Hussin, we have devised the vision, mission and logo for our Cereal Jar company on the grounds of functionality of our product and appeal to our target audience. A collection of RM50 per person was collected from each shareholder accumulating to a RM250 total reserve for covering various costs for equipment and material. As presented in the company name, Cereal Jar offers a familiar yet unique experience in experiencing breakfast or snacking by using cereals and chocolate mixed creatively in a jar for a feast for both the eyes and the palate. Costs to be covered include including various shapes and flavors of cereal; chocolate and jars to be used in assorting the various cereal types with chocolate. We aim to accumulate around RM80 worth of profit. Obstacles faced by Cereal Jar would include competition from other food service companies in the class as well as in other classes. This competition will also be felt from other, more familiar competitors with similar ideas such as those whom sell bubble rice with chocolate in jars. We hope to overcome these shortcomings in competition by offering value for money products which are significantly cheaper than the products presently available in the market. Time restraints need also be considered as the shareholders for this company are of multi-disciplinary backgrounds. Differences in time schedules for classes and any involvement in programs need to be understood and tolerated between shareholders and a sense of responsibility will need to be instilled between shareholders if we intend to make Cereal Jar a success.
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Financial issues may also arise; lacking of funds to buy more material, especially if there is more demand than supply. In this case, we may need to increases prices to cover more costs or look for cheaper alternatives to be used in our product, yet, are still consistent in quality. Recognition of the product would also need to be addressed as Cereal Jar is still a new company, which is why we propose using popular social media sites to promote our product; we will set up a our own Facebook and Whatsapp account to reach out to a wider spectrum of customers. Despite the shortcomings and obstacles we may face, the Cereal Jar Company will trudge on and seek help from various sources such as from our lecturer and from other companies to further understand on how to apply the knowledge of entrepreneurship into our group. We hope to gain valuable experience from this endeavor and hopefully, further expand Cereal Jar even after finishing the course.
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TABLE OF CONTENT PAGE EXECUTIVE SUMMARY
i
TABLE OF CONTENT
iii
LIST OF TABLES
vi
LIST OF FIGURES
vii
LIST OF APPENDICES
viii
PART 1
BUSINESS REPORT
1.0
Company Introduction
1
2.0
Business Report
2
3.0
Vision, Mission And Logo Of Company
3
3.1
Vision
3
3.2
Mission
3
3.3
Logo
3
4.0
Business Organization Structure
4
4.1
Structural Formation
4
4.2
Share of Each Members
4
4.3
Organizational Chart
5
4.4
Task Distribution
6
4.4.1
6
Chief Executive Officer
4.4.2 Executive Secretary
7
4.4.3
Financial Manager
8
4.4.4
Marketing Manager
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4.4.5 Operating Manager
10
5.0
Operating Plan
11
5.1
Production Process
11
5.1.1 Process of Producing Product
11
5.2
Process and Venue of Production
12
5.3
Process and Venue for Selling
13
5.3.1 Production Schedule
13
5.3.2 Business Premises
13
5.2.3 Business Operation
13
5.3.4 Delivery
14
5.4
Implementation of Business Activity Table
15
6.0
Marketing Plan
16
6.1
Product and service
16
6.2
Marketing Studies
18
6.2.1 Physical Qualities
18
6.2.2 Sales Location
18
6.2.3 Sanitation
18
6.2.4 Pricing strategic
19
6.2.5 Promotion and Advertising
19
6.2.6 Sales and Distribution Strategy
20
6.2.7 Poster and Flyers
20
Target market
21
6.3
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6.4
6.5
PART 2
Marketing analysis
24
6.4.1 SWOT Analysis
24
Competitors
26
6.5.1 Homescience Student
26
6.5.3 Other MGM Group
26
FINANCIAL REPORT
7.0
Financial Plan
27
7.1
Source of Funding (Capital)
27
7.2
Expense Records
28
7.3
Sales Records
29
7.4
Financial Statement/ Cash Flow
30
7.5
Income Statement/Profit and Loss Statement
31
7.6
Balance Sheet
32
7.7
Financial Analysis
33
PART 3
PROBLEM AND LESSON LEARNED
8.0
Problems Encountered
35
8.1
Lesson Learned
37
PART 4
CONCLUSION
9.0
Conclusion
39
APPENDICES
40
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LIST OF TABLE
Table No
Title
Page
Table 1
List of the shareholders with the amount of the shares
4
Table 2
The Gantt Charts for Implementation of Business Activity
15
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LIST OF FIGURE
Figure No
Title
Page
Figure 1
Chart of Target Customer
22
Figure 2
Chart of Target Customer Based on Gender
23
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LIST OF APPENDICES
Appendices
Title
Page
A
Planning Agenda
40
B
Logo Design
41
C
Process preparation cereal in a jar
42
D
Promotion
43
E
Poster
45
F
Entrepreneurship Day Carnival at Faculty Economy
46
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1.0
Company Introduction
Based on the popular foods eaten during breakfast, Cereal Jar incorporates the use of a myriad of cereal flavours and shapes to not only attract the eyes of potential customers, but also to fulfill the palates of demanding customers. As more and more food based companies mushroom across the nation, we intend to trudge on a different path, uniquely different from food products offered by other companies but sticking to well-known and familiar methods used by more established food sellers. At Cereal Jar, we combine different sorts of cereals with different but delicious tastes and shapes, together with chocolate to give consumers memorable pleasure. All of this, we pack in elegant, yet, simple glass jars to present a refined eating experience. Profit will not be our main aim from Cereal Jar, from now or ever. Instead, we aim to introduce our product at competitive prices not only to gain the upper hand against the competition, but also to give our potential customers a lighter heart when spending their hard-earned cash in our product. We hope to instill a spirit of love and passion in our customers towards Cereal Jar, as much as we have our love and passion for the company itself. By instilling such a spirit in our customers, we are confident that they would trust us with the ingredients and materials we use to produce high-quality products at a reasonable price. Especially in our infant stages, our profit margin will not be high to first develop that love and passion in our potential customers into our company. We first need to establish a loyal and hopeful customer base, not only to have a steady stream of customers in buying our products but also to have an external pressure on our company to produce great products that they can look forward to. From this, not only will Cereal Jar face an internal pressure of producing profit from product, but also to uphold an external pressure where we need to come up with something our fans would love to have in place of their well-earned money. Empowerment of customers should be the priority of any company.
.
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2.0
Business Report
The Cereal Jar was a new company that had been established for the MGM 3180 course, founded on the 20th of September, 2014.Cereal Jar Company sold a healthy snack for all ages (children, teenagers, and adult), combining different sorts of cereals with an assortment of delicious tastes and shapes, together with delectable chocolate to give consumers memorable pleasure. All of this, we packed in elegant, yet, simple glass jars to present a refined eating experience. The purpose of selling our product was to allow our customers to enjoy the taste of the cereal jars and eat it not only for breakfast but as a snack in an easy way, to be consumed anytime and anywhere. Other than that, Cereal Jar is a healthy food item because it can supply carbohydrates, protein, and vitamins to our bodies. Customer also can taste a different cereal in a jar because we put four different cereals in jar. This final report will explain how Cereal Jar Company had built, managed, and established from administration, operation, marketing and finance sectors. For administration, it shows the position and function of each member. By having this, each of our members will be carrying out their work based on their positions and making it easier to manage the Cereal Jar Company. This final report will also explain on how the company identified and managed to solve problems throughout the business activity. Other than that, this final report will explain on how Cereal Jar Company was established until delivery of the product. While in the financial planning, the financial executive would explain the total of project implementation cost, sources of fund to the financial business, cash flow, profit and loss and balance sheets projection. So, that it can give an overview to further expand Cereal Jar Company even after finishing the course. Last but not least, credits and appreciations was dedicated to Cereal Jar‟s lecturer, Madam Siti Rahayu Binti Hussin in order to lead us to establish this great company and give a very useful references and information to create an effective business plan, managing the company efficiently, processing of our product to be sold to customers and also as our guidance to complete this final report.
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3.0
Vision, Mission and Logo of Company
3.1
Vision
3.2
3.3
To come up with value-for-money food products that consumers will be confident in purchasing. To instill a culture of hope from consumers in demanding for new and refined products under Cereal Jar. To make reasonable profit from sales.
Logo
Mission
To be the brand that customers love.
The initials “CJ” are used to create brand awareness regarding our company name, “Cereal Jar”. Short and simple, customers can comfortably spread the word about Cereal Jar with its initials. To create a comfortable feeling inside our customers, we use a mild orange colour. At the same time, the brightness of the orange colour will attract their attention as well as have a better appetite to having a jar of cereal.
A stylish jar inside the attractive, yet, simple circles, to present to our customers that we are, indeed, Cereal Jar. The words “Cereal in a Jar” as our catchy catch-phrase.
“Eat different”, to present to our customers that they will be having a unique experience when with Cereal Jar, unlike any other foods they have ever taken | CEREAL JAR COMPANY: FINAL REPORT|
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4.0
Business Organization Structure
4.1
Structural Formation
Cereal Jar was a new company that had been established for the subject purpose MGM 3180. This company was established on 20th of September, 2014. This company sold basically a healthy snack for all stage of ages (children, teenagers, and adult). As presented in the company name, Cereal Jar offers a familiar yet unique experience in experiencing breakfast or snacking by using cereals and chocolate mixed creatively in a jar for a feast for both the eyes and the palate. The Cereal Jar Company was founded by five members and fellow shareholders which are Nor Asma binti Mad Kasim, Muhammad Fadzly bin Salleh, Normadiah binti Mohd Nordin, Maisarah binti Roslan and Najihah binti Amat Anan. Each of members plays an important rule and takes responsibilities to ensure the sustainability of Cereal Jar Company toward success.
4.2
Share of Each Members
NAME
AMOUNT SHARE
Nor Asma binti Mad Kasim
RM50
Muhammad Fadzly bin Salleh
RM50
Normadiah binti Mohd Nordin
RM50
Maisarah binti Roslan
RM50
Najihah Binti Amat Anan
RM50 Total
RM 250
Table 1: List of the shareholders with the amount of the shares
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4.3
Organizational Chart
CHIEF EXECUTIVE OFFICER Muhammad Fadzly Bin Salleh
EXECUTIVE SECRETARY
FINANCIAL MANAGER
Normadiah Bt Mohd Nordin
Maisarah Bt Roslan
CHIEF MARKETING MANAGER
OPERATING MANAGER
Nor Asma Bt Mad Kasim
Najihah Bt Amat Anan
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4.4
Task Distribution
4.4.1 Chief Executive Officer
Name
Muhammad Fadzly bin Salleh
Age
21 years old
Education
Bachelor of Science (Hons) in Cell and Molecular Biology
Duties
Skill
Leading other members during conducting the business. Create goals and missions for the project. Set efficient strategies for the business project. Coordinate overall business operations. Advise and monitor the board members. Ensuring business presented in strong and positive image. Good planning skills.
Leadership skill. Strategic thinking.
Good management and administrative skills.
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4.4.2 Executive Secretary
Name
Normadiah Binti Mohd Nordin
Age
23 years old
Education
Bachelor of Science in Human Development and Information Technology
Duties
Assist in the planning of meetings and taking minutes. Prepare business proposal. Apply for place to set up and operate the business.
Ensure all information is effectively recorded down and shared.
Skill
Assist in completion of various forms involved in the business. Finalise order list.
Multi-tasking person. Management skill. Able to work in fast pace environment. Strong interpersonal skills.
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4.4.3 Financial Manager
Name
Maisarah Bt Roslan
Age
21 years old
Education
Bachelor of Science (Hons) Major in Biology
Duties
Anticipate and handle the issues of financial management.
Control and monitor cash flow throughout business. Prepare budget, account and financial report. Carry out business modelling and risk assessment. Collect modal from board members. Money keeper during business time. Managing and forecasting cash.
Skill
Good management skill. Good in problem-solving, analytical, IT and calculation. Critical thinking. Trustworthy person.
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4.4.4 Marketing Manager
Name
Najihah Bt Amat Anan
Age
20 years old
Education
Bachelor of Education ( Hons ) in Homesciene
Duties
Research on current and potential customers.
Develop marketing strategies and plans. Taking feedback from customer by various methods. Use Facebook for marketing purpose. Responsible to hit the sales target for an organization. Create various ideas for publicity purposes.
Skill
Good communication skill.
Good planning in marketing. Advanced computer skill. Creative.
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4.4.5 Operating Manager
Name
Nor Asma bt Mad Kasim
Age
21 years old
Education
Bachelor of Science ( Hons ) in Microbiology
Duties
Skill
Lead and mange production team for optimisation of resources and maximum productivity Plan and organise production activities in order to achieve organisation‟s mission Monitor the production process and adjust schedules for the business. Sets the quality standard of the product Ensuring efficiency in operating the business by lower the cost for product and minimise the time for production. Responsible for supplies needed for the business operation. Good planning skill.
Multi-tasking person.
Good decision maker.
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5.0
Operating Plan
5.1
Production Process
To maintain our product quality and taste, the cereal are sold and made by the company members themselves. This is to ensure every batch of cereal jars are of the highest quality with cleanliness ensured. Customers will then be satisfied when purchasing our product. We all know that customers are important in business and it is our priority to fulfill our customer‟s demands. Other than that, we will also keep on improving the quality of our product that we made and sell based on customer feedback.
5.1.1 Process of Producing Product Input (Ingredients) • Variety Cereal • Chocolate
Input (Tools) • Jar • Ribbon • Spoon
Process: • All jars was cleaned properly before raw materials were added • After that, Nestle Milo cereal was put inside the jar for about three table spoonful. • Then followed by bubble rice • Next, melted chocolate was added on top of bubble rice • Another cereal which is Nestle honeystar.
Output • After finish, jars were closed tightly, then ribbon was nicely tied around jar • Lastly, spoon was placed at neck of jar.
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5.2
Process and Venue of Production
The main ingredient for our product cereal in a jar is cereal and chocolate. We found another famous products same with us product is Choco Rice. However, to ensure our products different with the products available in the market, we do not use only bubbles rice and chocolate as a main ingredient but we use variety cereal with high quality and delicious chocolate. This is to ensure our customers get the healthy food and can maintain a good eating habit. As we know, cereal is a healthy food because it can supply carbohydrates, protein, and vitamins to our bodies. Customer also can taste a different cereal in a jar because with put four different cereal in a jar. We do some research to find a wholesaler that can offer cereal, chocolate, ribbon, spoon and jar at affordable prices. We found the price of the ingredients and tools for our product almost same for every outlet. To ensure our customer get the highest satisfaction, we finally only use famous cereal in the market to make sure our customer confident to buy our product such as Nestle Honeystar, Nestle Milo, Cookie Crisp, and Kellog Choco Chex. Next our chocolate, the price of chocolate varies according to different outlet. We had surveyed our price at Yummies Bakery, Giant, Speedmart and HERO Mart. For conclusion, our ingredient bought from Yummies bakery for chocolate, cereal from Giant and spoons from HERO Mart. Since the price is cheapest and the distance is the nearest. We could save a lot in aspect of cost and transport fees.
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5.3
Process and Venue for Selling
5.3.1 Production schedule
The process of our product was making in one day which is weekend. So, all of group members can contribute on the making process. Usually, were produced our product at 8 pm until 11p.m. We were produced our product based on how much orders on that week.
5.3.2 Business Premises
We will have no official premise for stationary sales as this would only incur additional costs from rent and equipment needed to set up desks and other equipment needed. However, we will use the Serumpun Cafe to have our meetings and gatherings to conduct our work, and also college rooms in Serumpun.
5.3.3 Business Operation
Cereal Jar operation focuses primarily on a cash-on-delivery system, communicating directly with our customers. This is to gain customer traffic from these approaches as our target demographic area the students and staff of University Putra Malaysia. Customers can contact Cereal Jar for any inquiries and to make orders through our phone numbers. Once their order has been made, we will deliver the items to them.
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5.3.4 Delivery
The procedure of delivering our product was involved all of group members which from different colleges (KTP, KMR, K6 and Serumpun). This is because, majority of our customers are families and friends. We were delivered our product straight away to the customer‟s hostel after finished it especially customers from UPM. This is because we want to make sure our customers satisfied with quality of our product. Other than that, we used that kind of strategy because to make sure that cereals in jar not soggy when it reach to our customers. Our product was made week by week and only produced on weekend. We take orders from our customers on weekdays, and start to buy raw materials and produce our product based on their orders. If we cannot give to them on weekend, we were giving to them during classes. Our customers not only UPM students but from other place, so we manage to post our product to them through Post Office to make sure our product safely arrived to them.
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5.4
Implementation of Business Activity Table
WEEK DATE
WEEK 1
WEEK 2
WEEK 3
WEEK 4
1
2
8
9
15
16
22
23
26
NOV
NOV
NOV
NOV
NOV
NOV
NOV
NOV
NOV
2014
2014
2014
2014
2014
2014
2014
2014
2014
EVENT
PROMOTION PURCHASE OF GOODS PRODUCTION PROCESS STARTING BUSINESS RUNNING BUSINESS PRODUCT IMPROVEMENT POST MORTEM COMPLETING BUSINESS Table 2: The Gantt Charts for Implementation of Business Activity
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6.0
Marketing Plan
6.1
Product and Service
Cereal Jar is our product that will fulfill customers needs. Besides give multinutrients to our body, it will also be mixed with other flavours and textures from the different cereal types with the delicious chocolate layers. Other than that, cereal jar can also be gifted as presents to loved ones and friends. This cereal jar is decorated by us with colourful ribbons and a spoon to complement the beauty of the glass jar. It is a safe and healthy food because these cereals are put inside an air tight jar, so these cereals do not become soggy. We are selling our cereal jar directly to our customers by pre-order through Facebook and flyers. Once the order has been put in, we will work together to prepare the cereal jars. As we know, people, especially students and workers, always skip their meals because they are busy with their daily work. So, we find an alternative to solve their problems by introducing our product which is cereal jar. This product is good because it can be taken anytime and anywhere. They can eat our cereal jar before start the class.. Normally, people have cereal only in the morning, but with cereal jar they can have cereal any time they want. These scrumptious cereals with delicious chocolate layers will be packaged in small, air tight jars and can be carried everywhere especially at workplaces. Our product is the best and quality product for customer especially UPM student and include quality ingredients:
Nestle Honey star
Nestle Milo
Bubble rice
Cornflakes
Cookie Crisp
Kellogs Choco Chex
Delicious Chocolate
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During the selling period, there are many competitors from many aspects which is selling the same product with our company. Thus, we make a good service for our customer and make a good relationship with them to convince customers buy from us. Firstly, we plan to delivery service our product for customers. This includes delivering the product to the customers „door step‟ and we tried to satisfy customer requirements, such as giving a lot of choice of cereal to our customer.
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6.2
Marketing Strategies
6.2.1 Physical Qualities
Our product based on cereal and chocolate. The Cereal Jar only uses quality of cereal. We combine different sorts of cereals with different but delicious tastes and shapes, together with chocolate to give consumers memorable pleasure. All of this, we pack in elegant, yet, simple glass jars to present a refined eating experience. Our selling products all are handmade. We guaranty the product are good quality, safe and healthy.
6.2.2 Sales Location
Our group member comes from different college. So we decide make a direct selling at each college like KTP, K6, KMR and K14. We start our direct selling on 30 October 2014. We sold door to door. We also involve ourselves in Entrepreneurship Day Carnival held by the Faculty of Economy on 25 November 2014. In the carnival day, we realized that they were people sell the same product with our product. This is more convenient as many people in faculty economic will pass by there and take a try on our booth. Besides by direct selling, we also make pre-order for customers who want a different type of cereal. In this way, we were able to get more potential customers that might buy our products.
6.2.3 Sanitation
To ensure our products sanitation, each of us who are responsible to prepare the food has to wear plastic gloves. This act can let customer eliminate their doubt with the hygiene of food. When we sell our product at carnival an entrepreneur at faculty economy, we provide a tester for customer. For that, we provide one spoon only for first taste then we throw away the plastic spoon.
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6.2.4 Pricing Strategic
Pricing is another an important element in a marketing strategy. Customer usually will look at the price when they decide whether to buy the product. If the price of products is too expensive, we might lost many customer because our targets customers is student. We decide to put the reasonable price because our target especially student, lecturer and staff in UPM.
6.2.5 Promotion and Advertising
The main way of promoting and exposing our business is via promotion among friends of our group members. First of all, we would spread the words among our friends that we are selling cereal jar as breakfast or snack. We have advertised our product through Facebook. We only use group member personal account Facebook to promote our product to our friends. We post every update about our product there. We also provide preorder delivery service. Facebook is powerful media in promoting and it will help in our business a lot. We always keep update about our product to let people knew about our company also our products. We also update if we open for preorder and direct selling. We uploaded photos and let customer to order by via Whatsapp or message. We tagged the photo of the cereal jar for all the colleges‟ students and share it on the profile to let more people know about our company. It is an important tool as Facebook has become a new trend to interact with others. It‟s free, direct, fast, and convenient way to attract more customers. We also often get feedback from customers through Facebook.
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6.2.6 Sales and Distribution Strategy
We will arrange the schedule that arrange the time of duty for each group members. Besides that, our group members also decide take some early order from the customer. We make lists everyday to make our job easier. Our company has systematic system when take an order from customer. We will open order one week then closed order for fulfill the order. We increased the sale through communication with the customers, know what they want and offer what they want.
6.2.7 Poster and Flyers
In addition, we design and distribute flyers to our group members college such as KTP, KMR K14 and K6. We highlight “EAT DIFFERENT” to attract more customers. We also pasted the flyers on the notice board in each floor of the blocks. We mentioned our ingredients, telephone number and insert some pictures to let them have a picture of what we‟re selling. Besides, we also design the poster of our product in colorful way to catch the eyes of customers. Once people are attracted to approach our product, then our group members will be able to introduce our products and persuade the potential customers to buy.
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6.3
Target market
Our main customers are UPM students and staff. Other than that, we are using social media to sell our product to people who are staying outside UPM and who are busy with their work. They can order our product and we will send directly by hand by having a meeting with them at nearby places in UPM. Our product is cheap and affordable, suitable for students who want to taste cereals with chocolate. We also decorate this product as a present to attract our customers. Then, we use marketing strategy like test market which we give free samples to our customers and use their opinion to improve our product. Lastly, we are also create our bonding with customers such as they can give any feedback whether positive or negative feedback about our product, so we can always improve the quality of our
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MGM 3180 BASIC ENTREPRENEURSHIP
Estimated target customer:
Target customer
Student
Lecturer
Staff
Chart 1: Chart of Target Customer
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MGM 3180 BASIC ENTREPRENEURSHIP
Gender
Female
Male
Chart 2: Chart of Target Customer Based on Gender
6.4
Marketing analysis | CEREAL JAR COMPANY: FINAL REPORT|
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6.4.1 SWOT Analysis We conducted a SWOT analysis, by which evaluates the company‟s overall strengths (S), weaknesses (W), opportunities (O), and threats (T). Strengths include internal capabilities, resources, and positive situational factors that may help our company to serve the customers. Weaknesses include our internal limitations and negative situational factors that may interfere with our company‟s performance. Opportunities are favorable factors or trends in the external environment that our company may be able to exploit advantages. Threats are unfavorable external factors or trends that may present challenges to performance. The following are the SWOT analysis of our company:
Strengths
Weaknesses
Variety type of cereal
Customers had many choices of cereals. Good promotion Everyone in the group promote to customer very well
Lack of personal transport
Only 1 member had transport, not sufficient.
Original and unique idea
No one in the market has ever made cereals in a jar with chocolate.
Opportunities
Threats
Convenience
Staying in the university colleges allows for easier reach to potential customers.
Many competitors
Sell the same product like us.
Long term market opportunity
Our product is health-related food and can get with affordable price.
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After evaluation of SWOT analysis, we should clear with the strength, weaknesses, opportunities, and threats of company. Enhance the strength, improve the weaknesses, take the opportunities, and be careful of threats of the company. Strategies to overcome with the weaknesses and threats of company: Weaknesses/ Threats
Lack of personal transport
Strategy Find suitable time for person able to drive to obtain all materials and settle as many errands as possible in one trip. This will save not only on manpower needed to bring vehicles but also saves on time and petrol.
Many competitors
Differentiate our product from competitors in the aspect of quality of food and services to create superior customer value. We need to be more pro-active in marketing and gaining a following in customers. We need to ensure that when customers buy from Cereal Jar, it would not be the last time and would want to purchase goods from us again.
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MGM 3180 BASIC ENTREPRENEURSHIP
6.5
Competitors
6.5.1 Homescience Student
We encountered our competitors is mostly form Homesciene student. This is because they also learn about this recipe. There are from second or third year who sell bubble rice similar with our product. They start selling the similar product with our company at Kompleks Akademik A which is already monopolized since the past year. .
6.5.2 Other MGM Group Other MGM group was selling the same product with us. We were competing same size of jar and prices. But, their cereal was only consisting of bubble rice and melted chocolate not as Cereal Jar that consists of variety types of high quality cereals. It make our product is better than them.
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MGM 3180 BASIC ENTREPRENEURSHIP
7.0
Financial Plan
7.1
Source of Funding (Capital)
Being a partnership, each partner had contributed an equal amount of RM50. Thus a total owners‟ capital is calculated as below:
7.2
Owners‟ capital
= RM50 x 5 = RM 250
Price per unit of large Cereal Jar
= RM 5.00
Price per unit of small Cereal Jar
= RM3.00
Expense Records | CEREAL JAR COMPANY: FINAL REPORT|
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MGM 3180 BASIC ENTREPRENEURSHIP
Expenditure record for overall cost of production including fix cost and variable cost. Subjects
7.3
Quantity Cost/Unit Total Variable Fix Cash (RM) Cost Cost Cost expenses (RM) 21 boxes 16.80 352.80 2 boxes 26.00 52 8 packs 1.60 12.80 5 coils 6.00 30.00 8kg 17.5 140.00 3 packs 7.90 23.7
Large jar Small jar Spoon Ribbon Chocolate Bubble rice Mini bubble rice Nestle Honeystar Nestle Milo Kellogg’s Cheerios Kellogg’s Cookie Crisp Kellogg’s Choco Chex Kellogg’s Honey Flakes Plastic container Car petrol Total Sales Records
3 packs
7.90
23.7
5 packs
10.89
54.45
5 packs
10.89
54.45
1 pack
9.99
9.99
1 pack
9.99
9.99
1 pack
9.99
9.99
1 pack
9.99
9.99
6 units
5.00
30.00
20.00
20.00 833.86
803.86
Non-cash expenses
30
833.86
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Large Cereal Jar Small Cereal Jar Total Sales
Large Cereal Jar Small Cereal Jar Total Sales
Total sales per week
7.4
Week 1 (RM) 31 units x 155.00 RM5 -
Week 2 (RM) 38 units x RM5
-
-
-
155.00
Week 3 (RM) 75 units x 375.00 RM5 -
-
190.00
Week 4 (RM) 108 units x RM5
540.00
48 units x RM3
144.00
375.00
Week 1 (RM) 155.00
Week 2 (RM) 190.00
190.00
684.00
Week 3 (RM) 375.00
Week 4 (RM) 684.00
Total (RM) 1404.00
Financial Statement/Cash flow
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MGM 3180 BASIC ENTREPRENEURSHIP
Cash Flow Statement For The Month Ended 30 November 2014 RM 250.00
Cash on Hand (capital) (+) Cash Flow In Cash Sales
1404.00
Net Cash Flow In
1654.00
(-) Cash Flow Out Cash Expenses
833.86
Balance
820.14
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7.5
Income Statement/Profit and loss statement
Profit and Loss Statement For The Month Ended 30 November 2014 RM RM Sales Large Cereal Jar Small Cereal Jar
1260.00 144.00
1404.00
(-) Production Costs
813.86 590.14
Gross Profit (-) Operation Expenses Car petrol Net Profit
20.00
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20.00 570.14
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MGM 3180 BASIC ENTREPRENEURSHIP
7.6
Balance Sheet
Balance Sheet Statement For The Month Started 1 November 2014.
Fix Assets Variable Assets Cash
RM - Equities Capital
RM 250.00
250.00 Liabilities
250.00
-
250.00
Balance Sheet Statement For The Month Ended 30 November 2014
Fix Assets Variable Assets Cash
RM - Equities Capital Net Profit 527.48 Liabilities
250.00 570.14
820.14
820.14
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RM
-
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7.7
Financial analysis
Net Profit Margin
=
Net Profit
x 100
Sales
=
RM570.14 x 100 RM1404.00
40.61%
=
Break Even Point of Large Cereal Jar
=
Total Fix Cost
(Price of Sales – Variable Cost) per unit
=
RM30 RM 5.00 – RM 3.00
=
15 units
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Break Even Point of Small Cereal Jar
=
Total Fix Cost
(Price of Sales – Variable Cost) per unit
=
RM30 RM 3.00 – RM 1.70
=
23 units
Return of Investment
=
Net Profit x 100% Capital
=
RM570.14 x100% RM 250
=
228.06 %
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8.0
Problems Encountered
As fresh entrepreneurs, we did not have any business experience as we start a business from zero. We did not have the right marketing strategy and the right planning or guideline to position our product in UPM market. So, we promote our product using media social such as Facebook and direct selling to get attention from customer to buy our product and to inform them that our product now available at UPM.
We faced the problem of communication among group members. We are from different college which is Serumpun, KPZ, KTP and K6. It is difficult for us to meet up and discuss how the business‟s progress. As, we know technology is convenient and useful nowadays, so we discussed our business through Whatsapp and Facebook in our group "Cereal Jar”. Actually, this is a good application for our group members to ask and share anything what they want to share to each other about our business. We updated business‟s progress there and every member able to receive the message.
We also faced problem in time management. During do a meeting for the products preparation, some of our members cannot come because of other commitment such as join a competition, have replacement class, college activity and some of us came late due to transportation problems. Therefore, the time requirement to complete the whole process of making cereal jar was take longer time due to the lack of workers. What we do is we only make the cereal jar when everybody had free time. So, it is affair to each member.
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We faced is the inadequate supply of large jar from the store. As a result, this lead to the lower profit gained because we had to substitute about 48 small jars and small jars give less profit which is approximately RM1.30 per jar. If we are able to sell all large jars than we will get higher profit or income since each large jar gives us about RM2 of profit. We learned that we need to find more than one reliable supplier to run our business. This is to ensure the smooth business activity and to ensure that the profit can be maximized as possible.
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8.1
Lesson Learned
Planning a business
During taking this subject, we have learned how to plan a business. We have defined our business, for example, we will clarify what product we want to sell, who our customer, how to be different product, what is our price that should we put to our product and what is our primary competitive advantage. A good start of business always comes with a nice plan. If we have a better plan, we can prevent ourselves from doing mistake that cause any undesired deficit or unwanted wastage in materials. A good plan includes a well organized functioning group and a group of productive workers.
Financial report for a business
We learned that it is very important to have a financial report for a business because from that report we will be able to estimate the future state of our business and to find chance for business expansion or growth. Financial report also vital in order to ensure that the cash inflow and outflow is happening in a way that it should be, and not bringing any lost to the company. We can monitor the company financial state very efficient when we have all these financial statements.
Social skills
A good social skill helps in promoting our company and also helps in finding solution for problem that encountered. Friends around us always appear for a reason, we might not know why and how in that moment but friends will give suggestion and help if they are capable to. For example, during Entrepreneurship Day at Faculty Economy we do a good communication skill to ask customer buy our Cereal Jar. As a result, on that day we sold 150 jars
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Problem solving
During our business, we learned make a solution when facing problems. When we know that there are some business selling the same product with us and selling at the same place, we have decided to change our plan that we have planned well at the beginning. A company necessary has 'plan back-up' respectively as preparation in case face problem.
Spirit of teamwork
Teamwork is the key to success, a quality and productive team makes big different to the others. When we have a strength spirit of teamwork, all planning for business will run smoothly without any problem. As a team, we believed that everyone will do their job with their best effort, therefore our job are always done, that satisfy us.
Be different
We have learned how to be different. We have stand out. We have to differentiate ourselves. When we are just getting started, the biggest thing we will be vying for is attention. Nobody is going to pay attention to a company that‟s doing exactly the same thing as everyone else, since we know that are some groups are selling the same product with us, we have thought to add another product to sell to make it different from the other groups.
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9.0
Conclusion
Cereal Jar was founded through our involvement in this Basics in Entrepreneurship (MGM3180) course, under the supervision of Madam Siti Rahayu Binti Hussin. Through a period of a fourteen-week lecture period as well as hands-on time with the basics of planning and carrying out the workings of a successful business company, our five persons group has come to understand the true basics in entrepreneurship. We have come to understand that many aspects need to be considered before immersing ourselves in the competitive world of business. Besides considering what products or services should be provided, we have come to an understanding that we also need to cater to the needs and desires of the current customer profile. The customers are the biggest assets to a company‟s success and we need to understand who they are and what they want first before we start introducing what we want to produce. When we understand who our customers are and what are their demands, proper planning of how the business should be developed and executed need to be done. Matters such as having the proper company identity example name and logo of the company, vision, mission and money flow need to be carefully planned out so as to have the highest efficiency in achieving our targets. Potential threats and faults can also be predicted and overcome with meticulous planning, as well as having a clearer picture of how the company business will be run. Through this course, we have also learnt the importance of determination and will to carry on with our business. We have learnt the proper attitude to be implemented to become successful entrepreneurs and the sacrifices it takes to be one. In the end, we believe that MGM3180 has instilled the right ideologies and practices for us, as students of University Putra Malaysia, to take one step further in becoming a successful entrepreneur. Or at least, to consider it.
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APPENDICES A
Planning Agenda EVENT/TIME (WEEKS)
1
2
3
4
5
6
7
8
9
10
11
12
FOUNDING OF COMPANY BUSINESS PLANNING
MATERIAL GATHERING PROMOTION (MARKET TESTING) SELLING SUBMISSION OF REPORT PRESENTATION
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13
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APPENDICES B
Logo Design
First Sketch
Second Sketch
Third Sketch
Fourth Design (CJ LOGO)
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APPENDICES C
Process Preparation Cereal in a Jar
Firstly, Nestle
Secondly, bubble
milo cereal
rice was added on
was
top of
put
Nestle
into jar
milo cereal
Next,
Then,
Jar was closed
Lastly,
melted chocolate
Nestle honeystr
tightly,
spoon was
was
cereal
then
placed at
added
was
ribbon
neck of
into jar
added into jar
was tied nicely around jar
jar
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APPENDICES D
Promotion
Flyer
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APPENDICES E
Poster
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APPENDICES F
Entrepreneurship Day Carnival at Faculty Economy
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Our Booth
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