Introduction to business project 1 (business proposal)
- 1. Name of group members: Yip Chin Seng (0311956) Lee Yuan June (0311128) Kelvin Chiew Kah Kheng (0311848) Module: Assignment 1 Session: January 2013
- 2. 1. Introduction 1.1 Name of company After discuss with my business partner Kelvin and June, we decided to name our company as the ECO-mobile SDN BHD. ECO-mobile is a local and newly established company in Malaysia. 1.2 Nature of business Basically, ECO-mobile is running a phone accessories business. ECO- mobile is act as the manufacturer and also the distributor. ECO-mobile produces eco phone accessories and selling other phone accessories such as phone charger, phone replacement battery and so on. 1.3 Industry profile Malaysia’s phone accessories industry has a long-standing reputation as a high quality, low cost producer and increasingly the delivery of high quality value-added and speciality products. The Malaysian phone accessories industry has grown rapidly in recent years. Growth is seen not only in terms of numbers but more visible in terms of size, investment on structure and modernization in operation. It is because mobile phone is a trend and modern people cannot live without mobile phone. 1.4 Location of the business ECO-mobile SDN BHD is located in the Bukit Bintang which is the well known area in Kuala Lumpur. Bukit Bintang is the main shopping and entertainment area in Kuala Lumpur. Furthermore, people nowadays are attracted for the shopping mall, fine dining and so on. From the map attached, ECO-mobile Sdn Bhd is surrounded by shopping malls such as Pavilion, Times Square and Sungai Wang. The business is growing rapidly because these places are always visited by peoples.
- 3. 1.5 Factor in selecting the proposed business There are few reasons that ECO-mobile is chosen as the proposed business. The first reason is peoples nowadays own a mobile phone and they cannot live with a mobile phone, so ECO-mobile selling the phone accessories for every types of mobile phone or smart phone such as Apple, Samsung, Sony and so on. Besides that, most of the teenager who own a phone would like to decorate their phone with a beautiful and nice phone case so that ECO-mobile will also selling phone case with various design. Furthermore, ECO-mobile also selling eco product such as eco phone case. Lastly, ECO-mobile is one of the companies generate a high profit in a short period of time. Therefore, there are some values to do research on it. Location of ECO-mobile SDN BHD
- 4. 2. Market Analysis 2.1 Market size Our branch is located in Sunway Pyramid, along the Asian Avenue which is the peak area of the shopping centre. The target market is teenagers with our estimated yearly income of RM240,000. On the other hand, our main company in the Bukit Bintang area would target more on family users and teenagers with the revenue of RM1000,000 per year. With the advertisement and promotion on older accessories it may boost the amount of RM250,000 per year. 2.2 Potential Competitors The main group of potential competitors is the other phone accessories retailer which is located in the same area in both Asian Avenue and Bukit Bintang. In this case, the other retailer for the phone accessories may range from small individual business to bigger branch such as Belkin and Melkco. Unlike other business, smartphone accessories competitors are more advanced that they may offer higher quality and uniqueness items. 2.3 Competitors Strength and Weakness As the strength of the competitors, they are very strong in getting nicely designed phone case and in an affordable price. While in the weakness aspect, they tend to more focus on the design but forget about the quality of their product, this gives us more advantages to attract the customers as our phone cases are more environmental friendly and in good quality. 2.4 Customers and Their Background We mainly target on teenagers that study in secondary school or in university with either working or not working. Besides, these teenagers would probably from Bukit Bintang and Subang area and have more demand on quality and uniqueness of the products as our products are manufactured eco friendly and thus it add some uniqueness.
- 5. Marketing Strategy of Eco Mobile SDN BHD price promotion product place 3. Marketing Strategies In the area Bukit Bintang of Kuala Lumpur, there are lots of competitors around in the area as phone accessory seller. Most of the competitors operate the same products and service that has a same target market, which is main group of teenagers. The strengths of the competitors may get the stock by lower price from the wholesaler. Most of the competitors are selling their products by setting the booth in the gigantic mall with various kinds of promotion. Beside in strengths, all of the competitors have their weakness in their business. The weaknesses of the competitors are the quality of the products and the type of the material used to produce their products. Our products are produced based on 3R concept, we have an advantage of this. Most of the customers are confidence with the quality of the product from Eco Mobile SDN BHD. To be successful in markets in which economic growth has leveled and in which there exist many competitors who follow the marketing concept, a well- developed strategy is required. The marketing strategies consist of four keys of variables well known as 4Ps marketing strategy.
- 6. 4. Management Strategies 4.1 Legal Structure Our business uses partnership structure as we both require a small amount of capital to start our business and we are able to divide the losses together. Moreover, we know each other very well and believe that we can cooperate together so that we may divide our work. Besides, the decision making is easier. 4.2 Job Scope General Manager Assistant General Manager General Supervisor Human Resources Supervisor Accounting Supervisor Research & Development Supervisor Marketing Supervisor
- 7. 4.3 Manpower Accounting Clerk 3 person Sales Officer 2 person Designer 2 person Machine Operator 1 person General Manager Determine the goals and plan out suitable strategy in order to achieve the goals. Assistant General Manager To prevent the strategy from straying off the path and assist general manager in planning. General Supervisor Projecting the goals to all the supervisors and make sure the supervisors complete their role. Human Resources Supervisor Recruit staff member, make improvement on how the staff works and settle compliant about the staff. Accounting Supervisor Calculate the monthly expenses, analyses the monthly income and report sales taxes to general supervisor. Research & Development Supervisor Develop new ideas for the products without straying off from the objectives and make research on current trend of accessories. Marketing Supervisor Plan new strategies or campaign for the market and analyses current competitor weakness.
- 8. 5. Financial Plan 5.1 Sales Forecast According to the forecast, the profit earn are increasing year by year. This is because we have the confidence that our company will be more stable and popular. Year Month Sales Forecast (RM) 1 1 20,000 2 22,000 3 23,000 4 17,000 5 21,000 6 18,000 7 19,000 8 19,000 9 20,100 10 23,000 11 24,000 12 25.000 Total 251,100 Year Month Sales Forecast (RM) 2 1 23,000 2 25,000 3 25,000 4 23,000 5 22,000 6 21,000 7 20,500 8 20,500 9 21,100 10 24,000 11 25,000 12 26,000 Total 276,100
- 9. Year Month Sales Forecast (RM) 3 1 25,000 2 25,100 3 26,000 4 27,000 5 24,000 6 23,900 7 25,000 8 25,000 9 24,500 10 23,500 11 24,000 12 25.000 Total 298,000
- 10. Summary In conclusion, ECO-mobile will have well performance after the business started. The crucial factors that lead to well performance of ECO- mobile are the marketing plan, financial plan, and operation plan. In terms of competitors, there are a lot of competitors in phone accessories industry as discussed in the earlier part. Therefore, the company should always observe its competitors and do market survey in order to improve the products and services. The recommendation given to ECO-mobile is to have more promotions and ask for feedback from customers. The main objective of the company is to give the best quality of products and services to its customers. It is compatible to its mission and vision in order to achieve the goals of the company.