Business Proposal

BUSINESS PROPOSAL

BY

Names I/D Number

AHMAD FAIDHUL IRFAN ITM 120118830

NUR AZIZUL HAKIM ITM 120118843

NUR AIMUNI

SYAZREEN

Table of Contents

Page

1. CORPORATE PROFILE

1.1 Background

1.1.1 Business Name

1.1.2 Vision

1.1.3 Mission

1.1.4 Company Objectives

1.2 Company History

1.3 The Description of the Company

1.3.1 Products Offer

1.3.2 Business Activities

1.4 Company Profile

2. ADMINISTRATIVE PLAN

2.1 Business Logo

2.2 Business Slogan

2.3 Organization Chart

2.4 Members Background

2.5 Business Layout

3. HUMAN RESOURCE

3.1 Management Team

3.2 Recruitment

3.3 Training and Development

3.4 Compensation and Benefits

4. OPERATIONS AND QUALITY

4.1 Production Process

4.2 Contact Services

4.3 Areas In Material Management

4.4 Business Operation

4.4.1 Operation Hours

4.4.2 Number of Employees

4.4.3 List of Products

4.4.4 Machines

4.5 Operation Process

4.5.1 Suppliers

4.5.2 How our product being provided to

customers?

4.5.3 Transaction Flow Chart

4.6 Expenses

4.7 Safety and Hygiene

4.8 Certification

5. MARKETING

5.1 Our Product

5.1.1 Products Features and Benefits

5.1.2 Competitive Analysis

5.1.3 Classification of Product

5.1.4 Product Life Cycle

5.2 Pricing

5.2.1 Target Market

5.2.2 Market Segments

5.2.3 Product Pricing

5.2.4 Pricing Tactics

5.3 Place

5.3.1 Business Location

5.3.2 Distribution Strategies

5.3.3 Distribution Channels

5.4 Promotion

5.4.1 Advertising Strategies

5.4.2 Promotional Tools

5.4.3 Promotion Budget

6. REFERENCES

7. APPENDICES

CORPORATE

PROFILE

BACKGROUND

Business Name

The name of our business is AIMS. The alphabet AIMS stands for each of the first letters of our name. We choose each of the first letters of our name as our business name because of the share that we own is same. For each share is 25%.

Our Vision

Our vision is to provide fast, easy and convenience service all over the time to customers.

Our Mission

1. AIMS are devoted to become the market leading in the vending machine service provider in retail industry by providing quality product at reasonably price.

2. AIMS will provide the vending machine service any time to meet our customers’ needs and preferences.

3. AIMS will ensure all customers gain satisfaction with our consistent machines service quality and products and always the best choice for

customer with our professionalism and comprehensiveness on vending machines.

Our Objectives

1. We expect to reach the break-even point within a year.

2. We will create a reliable, well-perceived brand image in the retail industry by providing excellent vending machine service to customers.

3. We are dedicated to open branches of AIMS Vendor in all around Malaysia. We plan to open our first branch in five years’ time which the location will be targeting on potential business or schooling area within Kuala Lumpur.

4. We will recover the capital invested by our partners within five years of business.

COMPANY HISTORY

The Description of the Business

What our Business do?

AIMS Vendor is similar with convenience store but we are operating with full-line vending machines. Vending machine services offers customers a convenience and simple ways to purchase variety of products. Differ with other vending machines and convenience store, AIMS Vendor offers customers to place their products in our vending machine for selling purpose. We will conduct our business through click and mortal model which providing customers to visit our website, www.aimsvendor.com that provides detail information about our products categories and customers service link. Our physical store will located at the location of our store will be at ------------.

Our business will provides customer two types of products, whereas our products and customer’s products. Our product was ranged from food, beverage, snack and candy, health and beauty care, and general merchandise which enabled customers to purchase the variety of products with just required inserting the coins and pressing the button easily. Customers also have the opportunity to start their small business at our shop which just placing their own product without required own physical store.

We intend to create a non-distraction business environment which enable customer to visiting our shop without any interruption of sales person. Customers can enjoy their purchasing process as AIMS offer a D.I.Y buying process without any sales person. Besides that, time-saving is an important benefit that we deliver to customers as all our products will sells through vending machine which systematic and accurate.

Business Activities

AIMS business concept is similar with convenience store but we are operating with full-line vending machines. Our product is consisting of five categories which are food, beverage, snack and candy, health and beauty care, and general merchandise. The selling price of our products will be set with a reasonable price. On the other hand, we offered customers to start their own vending machine business; whereas allowed them to sell their D.I.Y or other products in our store on rental basics with terms and conditions applied.

Company Profile

Business Name : AIMS VENDOR SDN. BHD.

Form of Business :

Business Location :

Business Address :

Contact No :

Telephone No :

Fax No :

Company Website :

E-mail Address :

Date of Registration :

Registration No :

Date of Commencement :

Name of Bank :

Start-up Capital :

Name of Members : A

I

M

S

ADMINISTRATIVE

PLAN

Business Logo

The logo of our company is symbolizing our company’s name (AIMS). The --------------------. Besides, our logo is created in such a simple but unique way to let it easily remember by everyone. Our company logo will also printed in our company’s name card (Refer to APPENDIX A)

Business Slogan

Our business slogan is --------------------------------

Make people easily to get something what they want

Organization Chart

AHMAD FAIDHUL IRFAN

NUR AZIZUL HAKIM NUR AIMUNI SYAZREEN

Members

Profile

Name :AHMAD FAIDHUL IRFAN

Position :

Department :

Age :29

Status :MARRIED

Job Duties and Responsibilities :

1.

2.

3.

4.

Salary :RM7000

Contact No. :

Academic Qualifications :

1.

2.

3.

4.

Working Experience :

1.

2.

3.

Name :NUR AZIZUL HAKIM

Position :

Department :

Age :23

Status :SINGLE


1.

2.

3.

4.

Salary :RM5000

Contact No. :0122596246


1.

2.

3.

4.


1.

2.

3.

Name :NUR AIMUNI

Position :

Department :

Age :25

Status :SINGLE


1.

2.

3.

4.

Salary :RM4500

Contact No. :


1.

2.

3.

4.


1.

2.

3.

Name :SYAZREEN

Position :

Department :

Age :24

Status :MARRIED


1.

2.

3.

4.

Salary :RM4500

Contact No. :


1.

2.

3.

4.


1.

2.

3.

Business Layout

HUMAN

RESOURCE

Management Team

In AIMS, there are four major members of our business management team; --------------------- . Every member is in charge of different position in company; this is according member’s abilities and responsibilities due to the company target, which is producing the right performances with the right quality and at the right cost and time to meet the customer requirement and satisfaction.

1. I

(--------------------------------------------------------------------------------------------------------------------------------

--------------------------------------)

Position Job Description

2. A

(------------------------------------------------------------)


3. M

(--------------------------------------------------------)


4. S

(------------------------------------------------------------------)


Recruitment

Training and Development

Compensation and Benefits

OPERATIONS

AND QUALITY

Production Process

Customer Contact

Areas of Material Management

Business Operations

Operation Hours

Our operation hours -------------------------------------------

Number of Employees

(---------------------------------------------------------)

List of Products

Canned Products

CodeSelling Price

C1RM1.20

C2RM1.20

C3RM1.20

C4RM1.20

CodeSelling Price

C5RM1.20

C6RM1.20

C7RM1.20

C8RM1.20

CodeSelling Price

C9RM1.20

C10RM1.20

C11RM1.20

C12RM1.20

CodeSelling Price

C13RM1.20

C14RM1.20

C15RM1.20

C16RM1.20

CodeSelling Price

C17RM1.20

C18RM1.20

C19RM1.20

C20RM1.20

CodeSelling Price

C21RM1.20

C22RM1.20

C23RM1.20

C24RM1.20

CodeSelling Price

C25RM1.20

C26RM1.20

C27RM1.20

C28RM1.20

CodeSelling Price

C29RM1.20

C30RM1.20

Bottles Products

CodeSelling Price

BO1RM1.60

BO2RM1.60

BO3RM1.60

BO4RM1.60

CodeSelling Price

BO5RM1.60

BO6

RM1.60

BO7

RM1.60BO8

RM1.60

CodeSelling Price

BO9RM1.60

BO10RM1.60

BO11RM1.00

BO12RM1.60

CodeSelling Price

BO13RM1.60

BO14RM1.60

BO15RM1.60

BO16RM1.60

CodeSelling Price

BO17RM1.60

Snacks Products

CodeSelling Price

S1RM1.00

S2RM1.00

S3RM1.00

S4RM1.00

CodeSelling Price

S5RM1.00

S6RM1.00

S7RM1.00

S8RM1.00

CodeSelling Price

S9RM1.00

S10RM1.00

S11RM1.00

S12RM1.00

CodeSelling Price

S13RM1.00

S14RM1.00

S15RM1.00

S16RM1.00

Coffees Products

CodeSelling Price

C1RM1.60

C2RM1.60

C3RM1.60

C4RM1.60

CodeSelling Price

C5RM1.60

C6RM1.60

C7RM1.60

C8RM1.60

CodeSelling Price

C9RM1.60

Tobacco Products

CodeSelling Price

T1RM10.00

T2RM10.00

T3RM10.00

T4RM10.00

CodeSelling Price

T5RM10.00

T6RM8.50

T7RM8.50

T8RM10.00

CodeSelling Price

T9RM10.00

T10RM10.00

T11RM10.00

T12RM8.50

Magazines and Newspaper Products

CodeSelling Price

M1RM4.00

M2RM4.00

M3RM4.00

M4RM4.00

CodeSelling Price

N1RM1.00

N2RM1.00

N3RM1.00

N4RM1.00

CodeSelling Price

N5RM1.00

N6RM1.00

N7RM1.00

Breads Products

CodeSelling Price

BR1RM0.50

BR2RM0.50

BR3RM1.00

CodeSelling Price

BR4RM1.00

BR5RM0.50

BR6RM1.00

CodeSelling Price

BR7RM3.00

BR8RM3.50

BR9RM2.00

Machines

Items Descriptions Units Price/Unit

Machine Type:Beverage

Selections and Capacity:7 Selections315 drink items

Machines Size/Weight:1850mm X 730mm X890mm/300Kgs

Power Consumptions:220V

Temperature: R134a / adjustable from 3ºC~14ºC

Charge System: Coin and Note

3 RM17000

Items Descriptions Units Price/unit

Machine Type:Snacks and Beverages

Selections and Capacity:Up to 300 confectionery,snacks & chilled drinks items

Machines Size/Weight:1700mm X 700mm X 850mm/190kgs

Power Consumptions:240v



3 RM15000


Machine Type:Juices

Selections and Capacity:9 selections350 drink items

Machines Size/Weight:1830mm X 760mm X 950mm/310 kg




2 RM14000


Machine Type:Magazines and newspaper

Selections and Capacity:8 selections200 read items




2 RM10000


Machine Type:Tobaccos

Selections and Capacity:88 selections270 items




2 RM8500


Machine Type:Hot and Cold Coffees

Selections and Capacity:46 selections –27 cold and 19 hot1561 cups




3 RM15000


Machine Type:Beverages

Selections and Capacity:25 selections484 cans and 88 bottles





2 RM15000


Machine Type:Breads

Selections and Capacity:20 selections300 to 600 breads





3 RM13000

Business Suppliers

1.

F&N Beverages Marketing Sdn Bhd

Address : 1, Jalan Bukit Belimbing 26/38 Persiaran Kuala Selangor

Section 26, 40400 Shah Alam, Selangor

Tel : +603 - 5101 4288

Website : www.fnbm.com.my

2.

Cadbury Confectionery Malaysia Sdn Bhd

Address : 47, Jln. Hon 34/10, Bkt. Kemuning Light Industrial Park,

Section 34, 40000 Shah Alam, Selangor

Tel : 03-5519-1192

http://www.fnbm.com.my/

3.

Gardenia Bakeries (KL) Sdn Bhd

Address : Lot 3, Jalan Pelabur 23/1, 40300 Shah Alam, Selangor

Tel : 03-55423228

E-mail : [email protected]

4.

Permanis Sdn Bhd

Address : Level 10, Menara Yayasan Tun Razak, No 200,

Jalan Bukit Bintang, 55100 Kuala Lumpur

Tel : 03-21687333


mailto:[email protected]


5.

Nestlé (Malaysia) Berhad

Address : 22-1, 22nd Floor, Menara SurianNo. 1, Jalan PJU 7/3

Mutiara Damansara, 47810 Petaling Jaya Selangor.

Tel : 03-7965 6000

6.

Yeo Hiap Seng (Malaysia) Berhad

Address : 7, Jalan Tandang, 46050 Petaling Jaya Selangor Darul

Ehsan, Malaysia

Tel : 03 7787 3888

Email : [email protected]


7.

Lam Soon Edible Oils Sdn. Bhd

Address : Wisma DLS, No. 6 Jalan Jurunilai U1/20 Hicom-

Glenmarie Industrial Park, 40716 Shah Alam, Selangor

Tel : 03 7882 2399

8.

Sweetkiss Food Industry Sdn. Bhd

Address : 36 - 44, Jalan Mega B, Taman Industry Mega, 43500

Semenyih, Selangor.

Tel : 03-8724 4188



9.

The Wrigley Company (M) Sdn Bhd

Address : No 2 Jalan Peguam Satu U1/25a Hicom-glenmarie

Industrial Park 40150 Shah Alam, Selangor.

Tel : 03-5569 2807

10.

Philip Morris (Malaysia) Sdn. Bhd

Address : Lot 3967/3968 Oakland Industrial Park, 70200

Seremban.

Tel : 03 2080 5600

11.

British American Tobacco Malaysia

Address : Virginia Park, Jalan Universiti, 46200 Petaling Jaya,

Selangor Darul Ehsan

Tel : 03-7956 6899

12.

The New Straits Times Press (M) Berhad

Address : Balai Berita, 31 Jalan Riong, 59100 Kuala Lumpur

Tel : 1300-22-6787



13.

BluInc Media Sdn Bhd

Address : Lot 7, Jalan Bersatu 13/4, section 13 46200 Petaling Jaya, Selangor

Tel : 03 7952 7000


14.

ART SQUARE CREATION SDN BHD

Address : 17, Jalan 8/146, Bandar Tasik Selatan, 57000

Kuala Lumpur

Tel : 03 - 9056 1637


How Our Product Being Provided to the Customers?

AIMS is an automated retailed store that focus on the easy and convenience service provided to the customers. When customers walk through our store, they can quickly gain what they want due to the easy view of products. Moreover all the transaction is fast as it done automatically through vending machines. Meanwhile, customers are exposed to the detailed information of the particular product pasted on the vending machines. The information includes the product features, price, materials or ingredients used country of origin and the benefits of the products. As so, it helps to promote the products while increasing the product’s reliability.

Besides that, we will always keep our customers up to date. For example, this week special offer products, upcoming products and date of sales. Through this, customers will become more alert about the ongoing of the store while increasing the loyalty of customers.

Closed

Sales

Buy

Products

Select

Products

Transactions Flow Chart

The chart above shows the transaction flow of vending machine in AIMS. Basically customers will choose the product they need from our vending machine. Next they will insert coin to make order. Once the machine received customer’s coin, the transaction will be proceeding and customers have to choose the product they prefer. Meanwhile, if customers want to cancel the order, coin will be refunded. In the end, after customers gained their product, they can either choose to end the transaction or proceeding to another products they looking for.

Start

Insert your coin

Register the

Input Your Order

Proceed to next product

Conformation of Product

Thank You

Acquiring Product

End

Transaction

Expenses

List of expenses for the year 2012

General Expenses

ItemPrice per unit

(RM)Calculation Total (RM)

Shop Rental(2 shop lot)

Shop Deposit(2 month)

Water

Electricity

Telephone

Unifi

Petrol

Company insurance(annually)

Van Insurance(annually)

Van Road tax(annually)

3000.00

3000.00

500.00

2000.00

3500.00

300.00

50.00

2000

800

300

(3000 x 2) x 12

(3000 x 2) x 12

500 x 12

2000 x 12

3500 x 12

300 x 12

50 x 12

72000

72000

6000

24000

42000

3600

600

2000

800

300

Total : RM223300

Administrative Expenses

Item Unit Price per unit Total (RM)Business License

Registration fees

Trademark

Legal and Audit Fees

Processing fees

Website(server and rental)

1

1

1

1

1

1

100.00

60.00

2150.00

1200.00

350.00

500.00

100.00

60.00

2150.00

1200.00

350.00

500.00

Total : RM4360

Salaries and Wages Expenses

Item Unit Monthly Paid Total (RM)

Office Equipment Expenses

Item Unit Price/unit Total (RM)

Desktop Computer (ASUS)

Computer software

- MS office Software700

- MS windows OS

Printer

- Hp officejet 6000

- Hp officejet 6500

(All in one)

Air Condition

(Panasonic 1.5 H.P- envio)

CCTV

Stationery

- Calculator45

- Ball pen per box20

- A4 paper per pack25

- File20

4

11

11

1

2

4

1

2

10

1500.00

700.00350.00

150.00280.00

1000

1600

45

20

25

20

6000.00

700.00350.00

150.00280.00

1000.00

1600.00

180

20

50

200

Total : RM10530

Motor Vehicles Expenses

Items Units Price/Unit Total (RM)Van (second hand)

1 10000.00 10000.00

Total : RM10000

Fixtures and fittings Expenses

Items Unit Price/Unit Total (RM)Office Chairs

Office Tables

Sofa set

Front Desk

Building Renovation

10

6

1

1

1

80

150

350

300

25000

800

900

350

300

25000

Total : RM27350

Plant and Machinery Expenses

Item Unit Price/Unit Total (RM)Deposit on VendingMachine

Water Machine

Others Vending Machine

20

1

5

-

500.00

100000.00

500.00

25000.00

Total : RM125500

Advertising and Promotion Expenses

Items Unit Price/unit Total (RM)Banner

Flyers(every 3 month)

10

5000

30

0.01

300.00

150.00

Total : RM450

Stocks Purchases

Items Descriptions Total (RM)

Initial Stock Purchase(Jan 2012)

Initial Stock Purchase = First yearsales forecast / 12 months

50000.00

Total : RM50000

Safety and Hygiene

Certifications

MARKETING

Our Products

Products Features and Benefits

Competitive Analysis

Name AIMS 7 Eleven KK Supermart

Product Quality High Moderate Moderate

Product Innovation

Moderate Moderate Moderate

Price Low High High

Quality of Customer Support

High Moderate Moderate

Sales Promotion Moderate Low Low

Brand Name Recognition

Low High Moderate

Locations Highly StrategicModerately

StrategicModerately

Strategic

Classification of Product

Product Life Cycle

Pricing

Target Market

Our target markets are students, tourist and passengers that surrounded in Kuala Lumpur and Selangor area. As the former capital of Malaysia, Kuala Lumpur had a lot of commercial centres, shop lots and schools. Besides that, the traffic system is also comprehensive which includes LRT and Taxi services. As a result, the population of Kuala Lumpur is high density than other areas in Malaysia. The residents and tourist in Kuala Lumpur are facing dilemma such as traffic jam and also time consuming for waiting public transport. Most of them are familiar with vending machine as it provides conveniences and simplicity for purchasing. The selection of products offering by vending machines may limit by the number of machines that being installed in the area and also the variety of the product itself. Therefore, it is applicable to offer customers more variety of products by just on one spot.

Besides that, customers can enjoy the flexibility in terms of time. The vending machines will be operated day and night to serve the customers. People surrounding the area can come through our vending machines any time as long as they feel free. Without any monitoring from staff personnel, the customers can choose their preferable products freely. People that surrounded in Kuala Lumpur streets are crowded no matter day and night. Hence, by offering variety choice of products via vending machine, they can purchase the goods through machine when the traditional convenience shops were closed.

Market Segments

Products Pricing

Our pricing strategy is developed based on 4'c, which are customer, competitor, cost and convenience. Firstly, we will consider about the perception of customers. Secondly, we will pay attention to the price of competitors. Thirdly, all of our fix and variable cost will be considered when formulate pricing strategy. Lastly, we will consider the

convenience of customer and avoid odd pricing strategy. For an example, insert RM 2.00 will be more convenience than insert RM 1.90 for a transaction. These are the four main factors to consider when we determine the price of our product.

After consider all the four factors, our company has chosen everyday low price strategy. Everyday low price strategy is a pricing strategy promising consumers a low price without the need to wait for promotion or comparison shop. Everyday low price strategy can help us to save the expenses and effort needed to mark down prices in the store during promotion. Everyday low price strategy is suitable due to our low operating cost.

We transfer the value which we save from operating cost to our customers, and we still able to earn a same margin with other competitors. Everyday low price strategy helps our company to generate customer loyalty and promote the culture of vending machine (www.alsomia.com, 2008). Compare to Japan, the culture of using vending machine is still between the introduction stage and growth stage.

Pricing Tactics

Place

Location of Business

Distribution Strategies

Distribution Channels

In the whole distribution chain, AIMS act as a value-added intermediate between manufacture and end user. AIMS will use direct channel to distribute product to customers and also directly deal with suppliers. For the vending machine rental service, customer can reach us directly by telephone, e-mail or visit our official website (www.aims.com).

AIMS purchase a variety of product directly from difference suppliers and place them in vending machine for customer to purchase. Direct distribute channel is a simple channel which easily to monitor and operate. It also help to eliminate a lot of cost since there are no intermediate involve. By replenish stock at the lowest cost, our everyday low pricing strategy able to implement.

We decide to use direct channel through vending machine after consider the characteristic of our products and target customers. These two element play an important role in the selection of distribute channel. First, the characteristic of our product is considered as general and daily consume product. So the availability of our product is important. Customers will have the need of this general merchandise most the time in many places. Besides that, the transaction between customers and us can do without provide any additional information, such as usage and function.

Second, our customers are target as those who pass by the location. So the transaction must be as simple as possible and let customers able to get the merchandise on the spot. Our direct channel through vending machine is suitable for our business due to it can match with the characteristic as we mention before.

http://www.aims.com/

Promotion

Advertising Strategies

I. Banners

We will have attractive weather resistant banners around our location to catch people attention, especially the residential and commercial areas which nearby our location. It helps to create awareness of our product, services and location. Our banner will consists of company logo, product categories, contact and location map. Consistently display our banners in

front of target customers can reinforce our brand name.

II. Online Advertising

In this 20th century, internet is a very powerful advertising too. More and more people rely on internet to done their job and there are billions of users that are surfing the web every day. So it is necessary for our company to have an official website. Customers can check for product update, make reservation for the vending machine rental service by visit our official website. It is also beneficial for AIMS as we able to get feedback and interaction with customers.

Not only official website, we will also create a fans page in Facebook. Nowadays, Facebook is the largest social networking website in the world. By using Facebook, we can easily target the segment of customer we need and guide people to our official website. Facebook also a platform for people to discuss our company, it let us heard the “sound”

of customers. Not only that, Facebook is also one of the methods to conduct our customer relationship management.

III. Flyers

We will also printed flyers and distributed to people within certain location, such as housing areas and LRT station that nearby our shop. By doing so, we are able to create awareness of V world services and products to people. Five thousand pieces of flyers will be printed and distributed each three months. The flyers will contain product categories and also company’s location map in order to reach our target market effectively.

Promotion Tools

Promotion Budget

REFERENCES

(REFERENCES)

APPENDICES

(APPENDICES)

Business Proposal

Documents

Transcript of Business Proposal